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Wall Street has been facing choppy trading sessions almost regularly this month following the resurgence of coronavirus in several major states of the United States threatening the much-hyped V-shaped recovery of the economy in the second half of this year.

Although the three major stock indexes — the Dow, the S&P 500 and the Nasdaq Composite — are in positive territory, so far this month, volatility remains a major concern for investors. Despite the market’s roller-coaster ride, a handful of momentum stocks with a favorable Zacks Rank have provided more than 20% returns so far in July. These stocks have more upside left in the near term.

Near-Term Concerns

A spike in new coronavirus cases in as many as 24 states, unavailability of vaccine, intensifying U.S.-China tensions and a delay in the second round of fiscal stimulus by the government led to regular market fluctuations.

Moreover, for 18 consecutive weeks, initial jobless claims stood at more than 1.3 million. The Conference Board reported that U.S. consumer confidence dropped to 92.6 from the upwardly revised data of 98.3 in June. Notably, the expectations sub-index — defining consumer’s expectation for the next six months — dropped to a four-month low of 91.5 in July from 106.1 in June.

Momentum Likely to Continue Despite Pandemic

Momentum investing calls for continued appraisal of stocks, which ensures that an investor does not pick a beaten-down name and overlook a thriving one. Momentum investors buy high on the anticipation that the stock will only ascend in the short to intermediate term.

Although coronavirus-induced woes are persisting in the United States and globally, causing severe market volatility, the overall movement of the stock market is likely to remain northbound.

Market’s worst is behind us as negative estimates are already factored in market valuation. Despite the second surge of COVID-19, the U.S. economy is not likely to face lockdowns once again. Moreover, a series of economic data from the last quarter has indicated that the pandemic-led devastations may not be as ruthless as previously expected.

Upward Revision of EPS Estimates – A Crucial Indicator

An upward earnings per share (EPS) estimate revision for 2020 of any stock simply means the market is expecting these companies to do good business this year.

A positive EPS estimate revision during the period of historic financial turmoil highlights a solid business model and robust growth potential of these companies. Market participants are likely to be interested in those stocks that have witnessed positive EPS estimate revisions recently — within the last 7 days.

Our Top Picks

We have narrowed down our search to five momentum stocks that have skyrocketed in the past month. All these stocks witnessed robust earnings revisions in the last 7 days and have strong growth potential. Each of our picks carries a Zacks Rank #1 (Strong Buy) and a Momentum Score of A. You can see the complete list of today’s Zacks #1 Rank stocks here.

The chart below shows the price performance of our five picks in the past month.

Meritage Homes Corp. (MTH – Free Report) designs and builds single-family homes in the United States. It operates through two segments, Homebuilding and Financial Services. The company has expected earnings growth of 40.2% for the current year. The Zacks Consensus Estimate for current-year earnings has improved by 36% over the last 7 days. The stock price has soared 35.3% in the past month.

MarineMax Inc. (HZO – Free Report) is the largest recreational boat and yacht retailer in the United States. It sells new and used recreational boats, including pleasure boats, motor and convertible yachts, pontoon boats, fishing boats, ski boats and jet boats. The company has an expected earnings growth rate of 55.8% for next year (ending September 2021). The Zacks Consensus Estimate for next year has improved 67.1% over the last 7 days. The stock price has jumped 32% in the past month.

PulteGroup Inc. (PHM – Free Report) is engaged in homebuilding and financial services businesses, primarily in the United States. The company has expected earnings growth of 22.1% for the current year. The Zacks Consensus Estimate for current-year earnings has improved by 39.3% over the last 7 days. The stock price has climbed 31.4% in the past month.

Clearfield Inc. (CLFD – Free Report) manufactures, markets and sells standard and custom passive connectivity products to the fiber-to-the-premises, enterprises and original equipment manufacturers markets in the United States and internationally. The company has expected earnings growth of 41.2% for the current year (ending September 2020). The Zacks Consensus Estimate for current-year earnings has improved by 84.6% over the last 7 days. The stock price has rallied 27.8% in the past month.

CyberOptics Corp. (CYBE – Free Report) is a leading provider of sensors and inspection systems that provide process yield and through-put improvement solutions for the global electronic assembly and semiconductor capital equipment markets. The company has expected earnings growth of more than 100% for the current year. The Zacks Consensus Estimate for current-year earnings has improved more than 100% over the last 7 days. The stock price has surged 21.2% in the past month.

5 Stocks Set to Double

Each was hand-picked by a Zacks expert as the #1 favorite stock to gain +100% or more in 2020. Each comes from a different sector and has unique qualities and catalysts that could fuel exceptional growth.

Most of the stocks in this report are flying under Wall Street radar, which provides a great opportunity to get in on the ground floor.

Author: Nalak Das

Source: Zacks: Top 5 High-Flying Momentum Stocks of July With More Upside

Thanks to an impressive turnaround for the last three months, barring some occasional fluctuations, Wall Street has managed to exit the coronavirus-led bear market. The three major stock indexes — the Dow, the S&P 500 and the Nasdaq Composite — have jumped 43.6%, 42.8% and 52.5%, respectively, from their recent lows recorded on Mar 23.

Besides these large-cap centric indexes, the small-cap specific Russell 2000 Index has been performing strongly in the past three months, rallying 49% from its recent low recorded on Mar 18. Several small-cap stocks have skyrocketed more than 50% in the past three months. Here we have selected five with a favorable Zacks Rank and strong growth potential for the near future.

Unprecedented Fiscal and Monetary Stimulus

Small businesses suffered the most owing to the global outbreak of the deadly coronavirus, which forced the U.S. government to impose lockdowns for nearly two months. The economy came to a standstill during that period.

The Trump administration’s decision to provide a massive restructuring package to small businesses greatly helped in reviving this space. On Mar 27, the government released a relief package of $349 billion in forgivable loans to small businesses, provided the firms maintain their payrolls.

Moreover, in April, the U.S. government approved a $480 billion coronavirus relief package with funding earmarked for devastated small businesses and overwhelmed hospitals, and to ramp up testing nationwide during the pandemic.

On Jun 15, the Fed initiated a lending program of up to $600 billion to small and mid-sized businesses. Under this program, businesses with up to 15,000 employees or revenues up to $5 billion will get loan in the range of $250,000 to $300 million for 5 years in floating rate.

The central bank will encourage retail banks to lend out to struggling companies and will purchase 95% of each loan extended under the facility.

Positive Development

On Jun 9, National Federation of Independent Business reported that the U.S. Small Business Optimism Index got a solid momentum in May, increasing to 94.4 from 90.9 in April. Eight of the 10 components of the index improved last month while two declined. Per the report, the majority of owners is optimistic about future business conditions and expects the ongoing recession to be short-lived.

Notably, small corporates create a significant amount of jobs in the U.S. economy. More than 50% of the newly created jobs in the private sector originate here. These people constitute a large part of customers for big businesses.

Our Top Picks

We have narrowed down our search to five small-cap (market capital , $1 billion) stocks that have skyrocketed more than 50% in the past three months with strong growth potential and robust earnings estimate revisions in past 30 days. Each of our picks sports a Zacks Rank #1 (Strong Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.

The chart below shows the price performance of our five picks in the past three months.

Calix Inc. (CALX – Free Report) provides cloud and software platforms, and systems and services required to deliver the unified access network in the United States, the Middle East, Canada, Europe, the Caribbean and internationally.

The company has an expected earnings growth rate of more than 100% for the current year. The Zacks Consensus Estimate for current-year earnings has improved by 9.1% over the past 30 days. The stock price has soared 119% in the past three months.

Donnelley Financial Solutions Inc. (DFIN – Free Report) operates as a risk and compliance solutions company in the United States, Europe, Asia, Canada, and Latin America. It offers content creation, management and distribution, as well as data analytics and multi-lingual localization services.

The company has an expected earnings growth rate of more than 39.3% for the current year. The Zacks Consensus Estimate for current-year earnings has improved by 20.7% over the past 30 days. The stock price has jumped 102.5% in the past three months.

ChannelAdvisor Corp. (ECOM – Free Report) offers cloud-based e-commerce solutions and services. It solutions include marketplaces, comparison shopping, paid search, social campaigns, flex feeds, web stores and rich media.

The company has an expected earnings growth rate of 72.5% for the current year. The Zacks Consensus Estimate for current-year earnings has improved by 6.2% over the past 30 days. The stock price has climbed 99.6% in the past three months.

United Natural Foods Inc. (UNFI – Free Report) distributes natural, organic, specialty, produce, and conventional grocery and non-food products in the United States and Canada. It operates through the Wholesale and Other segments.

The company has an expected earnings growth rate of 20.2% for the current year (ending July 2020). The Zacks Consensus Estimate for current-year earnings has improved by 14.7% over the past 30 days. The stock price has rallied 88% in the past three months.

Clearwater Paper Corp. (CLW – Free Report) produces and sells private label tissue and bleached paperboard products in the United States and internationally. It operates through two segments, Consumer Products, and Pulp and Paperboard.

The company has an expected earnings growth rate of more than 100% for the current year. The Zacks Consensus Estimate for current-year earnings has improved more than 100% over the past 30 days. The stock price has surged 58.8% in the past three months.

Today’s Best Stocks from Zacks

Would you like to see the updated picks from our best market-beating strategies? From 2017 through 2019, while the S&P 500 gained and impressive +53.6%, five of our strategies returned +65.8%, +97.1%, +118.0%, +175.7% and even +186.7%.

This outperformance has not just been a recent phenomenon. From 2000 – 2019, while the S&P averaged +6.0% per year, our top strategies averaged up to +54.7% per year.

Author: Nalak Das

Source: Zacks: Don’t Miss These 5 Small Hidden Gems in Market’s Turnaround

Wall Street is having a dream run since Mar 23, when all the three major indexes — the Dow , the S&P 500 and the Nasdaq Composite — fell to the lowest level after entering the coronavirus-induced bear market on Mar 11. An unprecedented stimulus package from the U.S. government and the Fed, reopening of the domestic economy after more than a month of lockdown and stabilization of economic data clearly indicate that the market’s worst is over.

Investment in risky assets like equities strengthened as market participants’ sentiment got a boost. Meanwhile, the consumer discretionary sector has become a major driver of Wall Street rally in the past month.

Three Positive Catalysts

Wall Street rally is likely to gather momentum in the near term due to three major factors.

First, an unprecedented $8 trillion stimulus injected by the U.S. government and the Fed will create significant pent-up demand. Moreover, the central bank’s decision to keep the benchmark interest rate at 0% and inject money into the economy by means of purchasing even the high-yielding junk bonds would create a strong credit market.

Second, all 50 states eased lockdown restrictions and opened up their economies in some form last month. As the economy reopens in a phased manner and businesses gain pace, more people will be reemployed and consequently, consumer spending, the major driver of the U.S. GDP, will increase.

Third, the U.S. economy is bottoming out. This is evident from the recently released economic data. Initial jobless claims, though high till the last-reported week, has been declining systematically over the past nine weeks.

Moreover, better-than-expected consumer confidence and ISM manufacturing data in May, surging home builders’ sentiment, growing mortgage applications to purchase homes last month, and narrower-than-expected fall in orders of durable goods in April are clearly showing that the U.S. economy is coming out of the clutches of the deadly coronavirus.

Importance of Surging Consumer Discretionary Stocks

The consumer discretionary sector comprises businesses that sell goods and services, which are considered non-essential by consumers. These are the products that consumers can avoid without any major consequences to their well-being. In fact, these goods are desirable only if the available income of an individual is sufficient to purchase them. This is in sharp contrast to consumer staples products that are absolutely necessary.

Notably, the U.S. economy was performing well buoyed by strong consumer spending before the advent of coronavirus. However, the lockdowns imposed by the United Sates and across the world along with the breakdown of the global supply chain system, significantly dented both consumer and business confidence.

However, the above-mentioned positive developments will generate higher aggregate demand for the economy, especially for consumer discretionary stocks. This is evident from the fact that the Consumer Discretionary Select Sector SPDR (XLY), one of the 11 broad sectors of the S&P 500 Index, gained 12.7% in the past month, second only to the Energy Select Sector SPDR (XLE), which gained 13.1%. The benchmark itself grew only 8.8%.

Our Top Picks

We have narrowed down our search to five consumer discretionary stocks that have skyrocketed more than 25% in the past month with strong growth potential and robust earnings estimate revisions. Each of our picks carries either a Zacks Rank #1 (Strong Buy) or 2 (Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.

The chart below shows the price performance of our five picks in the past month.

BJ’s Wholesale Club Holdings Inc. (BJ – Free Report) is an operator of membership warehouse clubs primarily in East United States. It operates clubs and BJ’s Gas locations in several states. The Zacks Rank #1 company has an expected earnings growth rate of 51.4% for the current year (ending January 2021). The Zacks Consensus Estimate for current-year earnings has improved 2.8% over the last 7 days. The stock price has climbed 36.3% in the past month.

Perdoceo Education Corp. (PRDO – Free Report) operates colleges, institutions, and universities through online, campus based and blended learning programs in the United States. It operates through three segments: Colorado Technical University, American InterContinental University and All Other Campuses. The Zacks Rank #1 company has an expected earnings growth rate of 10.2% for the current year. The Zacks Consensus Estimate for current-year earnings has improved 4.1% over the last 30 days. The stock price has rallied 30% in the past month.

DouYu International Holdings Ltd. (DOYU – Free Report) provides a game-centric live streaming platform primarily in China. It operates its platform on both PC and mobile apps. The Zacks Rank #1 company has an expected earnings growth rate of 200% for the current year. The Zacks Consensus Estimate for current-year earnings has improved 34.2% over the last 7 days. The stock price has surged 27.4% in the past month.

Camping World Holdings Inc. (CWH – Free Report) operates as an outdoor and camping retailer. It operates through three segments: Consumer Services and Plans, Dealership and Retail. The Zacks Rank #2 company has an expected earnings growth rate of 193.9% for the current year. The Zacks Consensus Estimate for current-year earnings has improved 131% over the last 30 days. The stock price has soared 169% in the past month.

Peloton Interactive Inc. (PTON – Free Report) provides interactive fitness products in North America. It offers connected fitness products, such as the Peloton Bike and the Peloton Tread, which include touchscreen that streams live and on-demand classes. The Zacks Rank #2 company has an expected earnings growth rate of 31.6% for next year (ending June 2021). The Zacks Consensus Estimate for next-year earnings has improved 2.6% over the last 7 days. The stock price has jumped 44.6% in the past month.

Author: Nalak Das

Source: Zacks: 5 Top Consumer Discretionary Stocks to Gain From Market Rally

Wall Street’s new bull market that started in mid-April, ending the coronavirus-induced short bear-market, has gathered pace since last week. On May 27, the Dow closed at 24,995.11, its highest closing since Mar 6. During the trading session, the 30-stock index touched 25,000 briefly for the first time in more than two and half months.

Dow’s Impressive Rally Continues

The Dow recorded its all-time high of 29,568.57 on Feb 12. However, the index entered into the bear market on Mar 11 with the outbreak of the deadly coronavirus globally. The downward movement continued till Mar 23 as almost all countries, including the United States imposed partial or total lockdowns.

However, the blue-chip index’s northbound journey began on Mar 24 and is continuing barring occasional fluctuations. The index jumped 37.2% during Mar 23 to May 27. Month to date, the index is up 2.67% and on pace for back-to-back monthly gains.

Reopening the Global Economy

Meanwhile, 43 states have decided to ease lockdown restrictions and open up their economies in some form by this month end including portions of the hard hit New York. Tech giants like Apple Inc. and Alphabet Inc. (GOOGL – Free Report) have decided to open stores systematically from this month. Data from booking platform OpenTable revealed that in some states, U.S. consumers are slowly returning to restaurants. The Wall Street Journal recently reported growing freight trucking activities.

Major European countries like Germany, Spain, Italy and the U.K. are gradually reopening businesses and educational institutions, organizing sports events and lifting travel restrictions. Emerging countries like India, Singapore, Australia and South Africa are in the process to reopening.

Development in COVID-19 Immunization

According to Fundstrat, at present, there are 10 vaccines in clinical evaluation and 114 in preclinical evaluation for the treatment of COVID-19. On May 18, Moderna Inc. (MRNA – Free Report) announced that all 45 patients administered with its coronavirus vaccine candidate in a Phase 1 clinical trial developed neutralizing antibodies.

On May 27, Novavax Inc. (NVAX – Free Report) said it started human trials of its vaccine candidate in Australia. Merck & Co. (MRK – Free Report) said that its portfolio will be enhanced by two potential vaccines and an experimental drug against the coronavirus very soon.

Partial Recovery of Crude Oil Prices

Crude oil prices have recovered to a large extent from Apr 20, when the WTI crude price finished in negative for the first time in history owing to coronavirus-induced global economic lockdowns. In the past month, this benchmark crude price has jumped nearly 170% while Brent crude, the global benchmark, has climbed nearly 54%.

In the past month, global crude oil production has plunged an estimated 13-15 million barrels per day (bpd). The OPEC and Russia led allies have cut production by around 9.7 million bpd while U.S. crude production has dropped by 1.5 million bpd. Global demand for crude oil is showing an uptick as more and more economies are reopening.

Our Top Picks

We have narrowed down our search to four Dow stocks that have popped in the past month. Each of our picks carries a Zacks Rank #2 (Buy). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.

The chart below shows the price performance of our four picks in the past month.

Apple Inc.’s (AAPL – Free Report) Services and Wearables businesses are expected to drive top-line growth in fiscal 2020 and beyond. Although Apple’s business primarily runs around its flagship iPhone, the Services portfolio has emerged as its new cash cow.

The company is encouraging developers to use artificial intelligence (AI) and machine learning in their apps. Apple’s focus on autonomous vehicles and augmented virtual reality technologies presents growth opportunity in the long haul.

The company has an expected earnings growth rate of 3.5% for the current year (ending September 2020). The Zacks Consensus Estimate for current-year earnings has improved by 1.2% over the last 30 days. The stock price has jumped 11.8% in the past month.

Exxon Mobil Corp.’s (XOM – Free Report) growth developments include the Stabroek Block, located off the coast of Guyana. In the block, the company estimates gross recoverable resource of more than 8 billion oil-equivalent barrels. It projects daily Guyana oil production volumes of more than 750,000 gross barrels by 2025. Management’s track of capex discipline across the commodity price cycle makes it a relatively low-risk play.

Although the company has a negative expected earnings growth rate for the current year, it boasts strong growth of 134.7% for next year. The Zacks Consensus Estimate for current-year earnings has improved by 18.2% over the last 30 days. The stock price has rallied 4.5% in the past month.

Cisco System Inc. (CSCO – Free Report) is the largest player in the networking space. The company has strong presence in the router and switch market. It has also retained a leadership position in WLAN and Ethernet switching. Moreover, expansion into relatively under-penetrated markets is expected to drive growth.

The company has an expected earnings growth rate of 1.6% for the current year (ending July 2020). The Zacks Consensus Estimate for current-year earnings has improved by 3.3% over the last 30 days. The stock price has climbed 4.1% in the past month.

Chevron Corp.’s (CVX – Free Report) well economics in the Permian Basin, where it has substantial holdings of 2.2 million net acres, continues to show improvement. The company has been able to achieve a 40% reduction in its development and production costs since 2015. Thanks to its successful cost control initiatives, Chevron has lowered its break-even price for oil to an industry-leading $51 per barrel.

Although the company has a negative expected earnings growth rate for the current year, it boasts strong growth of 397.1% for next year. The Zacks Consensus Estimate for current-year earnings has improved by 33.3% over the last 30 days. The stock price has surged 4% in the past month.

More Stock News: This Is Bigger than the iPhone!

It could become the mother of all technological revolutions. Apple sold a mere 1 billion iPhones in 10 years but a new breakthrough is expected to generate more than 27 billion devices in just 3 years, creating a $1.7 trillion market.

Zacks has just released a Special Report that spotlights this fast-emerging phenomenon and 6 tickers for taking advantage of it. If you don’t buy now, you may kick yourself in 2021.

Author: Nalak Das

Source: Zacks: Dow Touches 25,000 in More Than 2 Months: 4 Blue-Chip Picks

The coronavirus-stricken first-quarter 2020 earnings season has already completed its major part. The disappointing performance by U.S. corporates that started in the beginning of the reporting cycle is still continuing. Despite the negative earnings trend, a handful of stocks with a favorable Zacks Rank are poised to beat earnings estimates this week. We have selected the top six.

First-Quarter Earnings in Brief

As of May 8, 434 S&P 500 members reported first-quarter earnings results. Total earnings of these companies are down 10.6% from the same period last year on 1.1% higher revenues. Of the total, 67.7% surpassed EPS estimates and 58.3% outpaced revenue estimates. Overall, first-quarter earnings for the S&P 500 Index were projected to be down 12.8% year over year on 1.3% higher revenues. This is in sharp contrast to 4% earnings growth expected in early January.

Our Top Picks

We have narrowed down our search to six stocks that will release earnings results this week. Each of these stocks carries either a Zacks Rank #1 (Strong Buy) or 2 (Buy) and has a positive Earnings ESP. You can see the complete list of today’s Zacks #1 Rank stocks here.

Our research shows that for stocks with the combination of a Zacks Rank #3 or better and a positive Earnings ESP, the chance of an earnings beat is as high as 70%. These stocks are expected to soar after earnings release. You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.

The chart below shows the price performance of our six picks in the last quarter.

Logitech International S.A. (LOGI – Free Report) designs, manufactures and markets products that allow people to connect through music, gaming, video, computing and other digital platforms worldwide. The Zacks Rank # 1 company has an Earnings ESP of +8.33% for the fourth quarter of fiscal 2020.

Logitech International has an expected earnings growth rate of 7.6% for the current year (ending March 2021). The Zacks Consensus Estimate for current-year earnings has improved 3.7% over the last 30 days. It has a trailing four-quarter positive earnings surprise of 9.2%, on average. The company is set to release earnings results on May 11, after the closing bell.

Grocery Outlet Holding Corp. (GO – Free Report) owns and operates a chain of grocery stores primarily in the United States. It offers products such as grocery, dairy and deli, produce, refrigerated and frozen, floral, beer and wine, general merchandise as well as fresh meat and seafood and natural, organic, specialty and healthy products. The Zacks Rank #1 company has an Earnings ESP of +33.33% for first-quarter 2020.

Grocery Outlet has an expected earnings growth rate of 15.2% for the current year. The Zacks Consensus Estimate for current-year earnings has improved 2.2% over the last 30 days. It has a trailing four-quarter positive earnings surprise of 31.1%, on average. The company is set to release earnings results on May 11, after the closing bell.

GFL Environmental Inc. (GFL – Free Report) offers non-hazardous solid waste management, infrastructure & soil remediation and liquid waste management services in North America. The Zacks Rank # 2 company has an Earnings ESP of +16.19% for first-quarter 2020. The Zacks Consensus Estimate for current-year earnings has improved 1.3% over the last 30 days. The company is set to release earnings results on May 11, after the closing bell.

Health Catalyst Inc. (HCAT – Free Report) provides data and analytics technology and services to healthcare organizations primarily in the United States. It operates through two segments, Technology and Professional services. The Zacks Rank #1 company has an Earnings ESP of +7.26% for first-quarter 2020.

Health Catalyst has an expected earnings growth rate of 6.5% for the current year. The Zacks Consensus Estimate for current-year earnings has improved 1.2% over the last 30 days. It has a trailing four-quarter positive earnings surprise of 31%, on average. The company is set to release earnings results on May 12, after the closing bell.

Viela Bio Inc. (VIE – Free Report) is a clinical-stage biotechnology company engaged in the research and development of treatments for severe inflammation and autoimmune diseases in the United States. The Zacks Rank #2 company has an Earnings ESP of +13.04% for first-quarter 2020.

Viela Bio has an expected earnings growth rate of 58.1% for the current year. The Zacks Consensus Estimate for current-year earnings has improved 0.7% over the last 30 days. The company is set to release earnings results on May 13, after the closing bell.

SSR Mining Inc. (SSRM – Free Report) is engaged in the acquisition, exploration, development, and operation of precious metal resource properties in the Americas. It primarily explores gold and silver deposits. The Zacks Rank #2 company has an Earnings ESP of +13.57% for first-quarter 2020.

SSR Mining has an expected earnings growth rate of 63% for the current year. The Zacks Consensus Estimate for current-year earnings has improved 18.9% over the last 60 days. It has a trailing four-quarter positive earnings surprise of 77.8%, on average. The company is set to release earnings results on May 14, after the closing bell.

More Stock News: This Is Bigger than the iPhone!

It could become the mother of all technological revolutions. Apple sold a mere 1 billion iPhones in 10 years but a new breakthrough is expected to generate more than 27 billion devices in just 3 years, creating a $1.7 trillion market.

Zacks has just released a Special Report that spotlights this fast-emerging phenomenon and 6 tickers for taking advantage of it. If you don’t buy now, you may kick yourself in 2020.

Author: Nalak Das

Source: Zacks: 6 Top Stocks to Buy Ahead of Earnings Results This Week

Wall Street is witnessing an impressive rally since Mar 23, when the three major stock indexes touched the lowest level after entering the bear territory on Mar 11. An unprecedented amount of stimulus package injected by the United States and several other countries boosted investor sentiment to a large extent.

Moreover, several U.S. states are considering opening the economy restricting lockdown measures. Major Eurozone countries are also preparing to return to economic normalcy as the coronavirus pandemic stabilizes.

Possibility of Reopening Economy

Several states in the country are considering plans to reopen the economy systematically. States like Alaska, Georgia, South Carolina, Tennessee and Texas have already started allowing restaurants, salons, spas and barbershops to serve customers. Mike DeWine, governor of Ohio, has set May 12 as the date for retail stores and other service industries to reopen. Andrew Cuomo, governor of coronavirus hotspot New York, said that the economy will be opened in phases.

In Europe, Spain has allowed its citizens to leave their homes for short walks and exercise from May 2. Belgium and Italy will ease restrictions from May 4. In France, the government prepared to ease economic shutdown from May 11. In Asia, India permitted manufacturing and farming to resume in rural areas last week.

Wall Street Witnessing Impressive Rally

So far in April, the three major stock indexes — the Dow, the S&P 500 and the Nasdaq Composite — rallied 10%, 10.8% and 11.8%, respectively. An unprecedented $8 trillion fiscal and monetary stimulus has been injected by the U.S. government and the Fed to fight the coronavirus-led economic disaster. Several Eurozone countries, Japan and the leading emerging market economies have also provided $7-8 trillion of global stimulus.

However, despite the impressive month-to-date performance, the Dow, the S&P 500 and the Nasdaq Composite are still 18.5%, 15.6% and 12.5% away from their respective all-time highs registered in mid-February.

Meanwhile, a handful of growth stocks have skyrocketed in April rallying more than 25% defying the partial lockdown in the United States. Notably, growth stocks are associated with aggressive earnings or revenue improvements, which should propel their prices higher in the future.

Our Top Picks

At this stage, it will be prudent to invest in stocks with a favorable Zacks Rank and strong growth potential. We have narrowed down our search to five stocks with a Growth Score of A that have skyrocketed in April. Each of our picks carries a Zacks Rank #1 (Strong Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.

The chart below shows the price performance of our five picks month to date.

CURO Group Holdings Corp. (CURO – Free Report) offers unsecured and secured instalments and open-end and single-pay loan services as well as renders other customer services, robust operating systems, call center and track record services. The company has an expected earnings growth rate of 12% for the current year. The stock price has rallied 94.6% month to date.

Forterra Inc. (FRTA – Free Report) manufactures and sells pipe and precast products in the United States, Canada and Mexico. It operates through the Drainage Pipe & Products and Water Pipe & Products segments. The company has an anticipated outstanding earnings growth rate of 866.7% for the current year. The stock price has jumped 51.6% month to date.

Digital Turbine Inc. (APPS – Free Report) provides media and mobile communication products and solutions for mobile operators, application developers, device original equipment manufacturers and other third parties worldwide. The company has an expected earnings growth rate of 82.5% for the current year (ending March 2021). The stock price has climbed 47.9% month to date.

NeoPhotonics Corp. (NPTN – Free Report) develops, manufactures, and sells optoelectronic products that transmit, receive, and switch high speed digital optical signals for communications networks. The company has an expected earnings growth rate of 3,300% for the current year. The stock price has soared 30.4% month to date.

SpartanNash Co. (SPTN – Free Report) is a food distributor serving military commissaries and exchanges in the United States. It operates in three segments: Food Distribution, Military, and Retail. The company has an expected earnings growth rate of 26.4% for the current year. The stock price has surged 25.4% month to date.

Author: Nalak Das

Source: Zacks: 5 Top Growth Stocks Rallying More Than 25% in Lockdown April

The coronavirus outbreak has been rattling global stock markets for the last six weeks, Wall Street being no exception. The stock-market valuation has plunged significantly, with extreme volatility witnessed in Wall Street’s history. However, the previous week (ended Mar 27) was an exceptional one, as three major stock indices witnessed robust rallies.

Stock Markets See Solid Rallies Last Week

Wall Street witnessed one of its historically-strong weekly gains last week. The three major stock indices — the Dow, the S&P 500 and the Nasdaq Composite — jumped 12.8%, 10.3% and 9.1%, respectively. The Dow recorded its best weekly performance since 1938. The S&P 500 posted the strongest weekly gain since 2008. Meanwhile, the Nasdaq Composite registered the best weekly rally since March 2009.

Market participants’ sentiments were uplifted as President Trump injected a gigantic $2-trillion fiscal stimulus in the form of the coronavirus relief package. Moreover, the Fed has already decided to provide monetary stimulus worth $4 – $5 trillion. In addition, the central bank has reduced the short-term lending rate to 0-0.25%.

Besides the United States, internationally another $5 trillion of stimulus is anticipated to be generated in the next few weeks. Several important members of the Eurozone, the U.K., Japan and China have entered this league. Furthermore, prominent emerging economies like Singapore, India and Malaysia also injecting large sums of money to restore the shrinking global economy.

Has the Stock Market Hit Rock Bottom?

Economists and financial experts are divided on the question whether or not Wall Street has already hit rock bottom. Although it’s too early to say that the market has bottomed out, it is a fact that stocks have fallen significantly in a short period of time.

At present, the Dow, the S&P 500 and the Nasdaq Composite are still down 26.8%, 25.1% and 23.7%, respectively, from their all-time highs recorded last month. Further, year to date, these indices are down 24.2%, 21.3% and 16.8%, respectively.

Consequently, plenty of goods stocks are trading at ultra-cheap prices despite the fact that the market might be choppy over the next few weeks. Meanwhile, the unprecedented fiscal stimulus provided by the U.S. government and monetary stimulus by the Fed will undoubtedly boost the morale of market participants. This, in turn, will aid investors reap rewards over the long term.

Our Top Picks

At this stage, it will be prudent for long-term investors to invest in stocks with a favorable Zacks Rank and strong growth potential. We have narrowed down our search to five stocks with a Growth Score of A that have skyrocketed in the past week. Each of our picks carries a Zacks Rank #1 (Strong Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.

The chart below shows the price performance of our five picks in the past week.

Enova International Inc. ENVA is a provider of online financial services. It offers loans to customers in the United States and in the U.K., Australia and Canada. The company has an expected earnings growth rate of 13.7% for the current year. The stock price has rallied 45.6% in the past week and is still 54.5% below its 52-week high.

Mitek Systems Inc. MITK develops, markets and sells mobile image capture and digital identity verification solutions in the United States, Europe, Latin America, and internationally. The company has a projected earnings growth rate of 21.4% for the ongoing fiscal year (ending August 2020). The stock price has jumped 34.5% in the past week and is still 33.5% below its 52-week high.

Lyft Inc. LYFT operates a peer-to-peer marketplace for on-demand ridesharing in the United States and Canada. It offers a multimodal platform that provides riders, personalized and on-demand access to various transportation options. The company has an estimated earnings growth rate of 18.5% for 2020. The stock price has climbed 29.7% in the past week and is still 68.8% below its 52-week high.

Enphase Energy Inc. ENPH is a global energy technology company that delivers energy management technology for the solar industry. It designs, develops, manufactures and sells home-energy solutions for the solar photovoltaic industry in the United States and globally. The company has an expected earnings growth rate of 33.7% for this year. The stock price has appreciated 24.5% in the past week and is still 45.3% below its 52-week high.

Forterra Inc. FRTA manufactures and sells pipe and precast products the United States, Canada and Mexico. It operates through Drainage Pipe & Products and Water Pipe & Products segments. The company has an anticipated outstanding earnings growth rate of 866.7% for the current year. The stock price has advanced 17.6% in the past week and is still 67.5% below its 52-week high.

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Author: Nalak Das

Source: Finance. Yahoo: 5 Top Growth Stocks With More Upside Left That Surged Last Week

Wall Street’s nightmare continues with almost no end in sight as the coronavirus-induced crisis refuses to let up. The stock market’s free fall, which has been the case in the last four weeks, persists with the three major indexes recording new closing lows almost every day. While the market is already oversold, lack of any positive news on the treatment front is resulting in panic selling, which has put stock valuation to almost trough.

However, despite this massive market mayhem, some small-cap stocks with strong growth potential for 2020, have witnessed upward earnings per share (EPS) estimate revisions for 2020 in the last 30 days.

Major Indexes Might Bottom Out

On Mar 23, three major stock indexes — the Dow, the S&P 500 and the Nasdaq Composite — fell 3%, 2.9% and 0.3%, respectively. Year to date, these indexes are down, 34.9%, 30.8% and 23.5%. The 30 stock blue-chip index closed at 18,591.93 — its lowest reading since Nov 9, 2016, the day of Donald Trump was elected as the President.

Moreover, the Dow, the S&P 500 and the Nasdaq Composite — plunged 36.8%, 34.1% and 30.3%, respectively, from their all-times highs achieved in mid-February. Moreover, the Dow and the S&P 500 are presently well below their 2018-end levels while the tech-laden Nasdaq is ahead of that level by meager 8.3%. Notably, in 2018, these indexes recorded their worst ever yearly performance since 2008. This indicates that the market is no longer overvalued despite the likely volatility in the next few weeks.

Domestic-Focused Nature of Small Businesses

Owing to their predominantly domestic-focused business strategy, small business organizations are generally immune to any external shocks. In fact, the U.S. economy was stable with a robust labor market, strong corporate and personal income and solid consumer confidence at the beginning of the coronavirus-induced turmoil.

Further, with the recovery of global economic growth still uncertain, market participants are increasingly seeking safe-haven assets like U.S. dollar-denominated assets. Consequently, price of the U.S. Dollar index (DXY) skyrocketed to 102.49 — its highest since 2002. This renders U.S. exports uncompetitive internationally. However, as small business organizations primarily depend on domestic market, adverse movement of foreign-exchange rate does not hurt them.

Upward Revision of EPS Estimates

An upward EPS estimate revision for 2020 of any stock simply means the market is expecting these companies to do good business this year. However, in the past 30 days the coronavirus pandemic has become a serious threat to the global economy including the United States. This resulted in most stocks witnessing either negative EPS revisions or remains the same.

However, a positive EPS estimate revision during the period of historic financial turmoil indicates the solid business model and robust growth potential of these companies. Certainly, investors can take a look at this stocks at the moment.

Our Top Picks

We have narrowed down our search to five small-cap (market capital < 1 billion) stocks with Growth Score A. Each of our picks sports a Zacks Rank #1 (Strong Buy).

The chart below shows the price performance of our five picks in the past month.

Tennant Co. (TNC – Free Report) designs, manufactures and markets floor cleaning equipment in the Americas, Europe, the Middle East, Africa and the Asia Pacific. It also provides business solutions, such as financing, rental, and leasing programs and machine-to-machine asset management solutions. The company has an expected earnings growth rate of 40.7% for the current year. The Zacks Consensus Estimate for the current year has improved by 13.7% over the past 30 days.

eXp World Holdings Inc. (EXPI – Free Report) provides cloud-based real estate brokerage services for residential real estate market in the United States and Canada. It facilitates buyers to search real-time property listings and sellers to list their properties through its website, exprealty.com, and provides buyers and sellers access to a network of professional, agents and brokers. The company has an expected earnings growth rate of 106.7% for the current year. The Zacks Consensus Estimate for the current year has improved by 112.5% over the past 30 days.

James River Group Holdings Ltd. (JRVR – Free Report) is an insurance company which owns and operates specialty insurance and reinsurance provider in the United States. It operates through Excess and Surplus Lines, Specialty Admitted Insurance and Casualty Reinsurance segments. The company has an expected earnings growth rate of 46.4% for the current year. The Zacks Consensus Estimate for the current year has improved by 1% over the past 30 days.

Cornerstone Building Brands Inc. (CNR – Free Report) designs, engineers, manufactures and markets external building products for the commercial, residential and repair and remodel construction markets in North America. It operates through three segments: Commercial, Siding and Windows. The company has an expected earnings growth rate of 46.2% for the current year. The Zacks Consensus Estimate for the current year has improved by 3.6% over the past 30 days.

Forterra Inc. (FRTA – Free Report) manufactures and sells pipe and precast products the United States, Canada and Mexico. It operates through Drainage Pipe & Products and Water Pipe & Products segments. The company has an expected earnings growth rate of 866.7% for the current year. The Zacks Consensus Estimate for the current year has improved by 19% over the past 30 days.

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Author: Nalak Das

Source: Zacks: 5 Must-Buy Small-Cap Growth Stocks for Long-Term Investors

The fourth-quarter 2019 earnings releases have been showing steady improvement so far. Below we discuss five top-ranked mid-cap stocks that are poised to beat earnings estimates this week.

Better-Than-Expected Fourth-Quarter Earnings So Far

Fourth-quarter 2019 earnings results have been improving significantly. In fact, overall earnings expectations have rebounded and are in positive territory. As of Feb 14, 388 S&P 500 members reported fourth-quarter earnings results. Total earnings of these companies are up 1.3% from the same period last year on 4.8% higher revenues. Of the total, 72.9% surpassed EPS estimates while 66.2% outpaced revenue estimates.

Overall, fourth-quarter 2019 earnings for the S&P 500 Index were projected to be up 0.8% year over year on 4.3% higher revenues. This suggests a complete turnaround from earnings decline of 3.2% year over year on 3.5% higher revenues, projected at the beginning of the reporting cycle.

5 Stocks Set to Surpass Earnings Estimates

We have narrowed down our search to five companies that are gearing up to release their earnings results this week. Each of these stocks carry either a Zacks Rank #1 (Strong Buy) or 2 (Buy) and has a positive Earnings ESP.

Our research shows that for stocks with the combination of a Zacks Rank #3 (Hold) or better and a positive Earnings ESP, the chance of an earnings beat is as high as 70%. These stocks are expected to soar after earnings release. You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.

The chart below shows the price performance of our five picks in the past three years.

Jack in the Box Inc. (JACK – Free Report) is a restaurant company that operates and franchises through Jack in the Box quick-service restaurants, and is one of the nation’s largest hamburger chains. The company has an Earnings ESP of +1.56% for first-quarter fiscal 2020 (ended December).

Jack in the Box has an expected earnings growth rate of 4.1% for the current year (ending September 2020). The trailing four-quarter positive earnings surprise is 4.9%, on average. The Zacks Rank #2 company is set to release earnings results on Feb 19, after the closing bell.

TPG Specialty Lending Inc. (TSLX – Free Report) is a specialty finance company. It is focused on providing fully-underwritten capital solutions to middle market companies. The company has an Earnings ESP of +4.26% for fourth-quarter 2019.

TPG Specialty Lending has an expected earnings growth rate of 2.9% for the current year. The Zacks Consensus Estimate for the current year has improved 1% over the last 30 days. The trailing four-quarter positive earnings surprise is 9.2%, on average. The Zacks Rank #2 company is set to release earnings results on Feb 19, after the closing bell.

Nordson Corp. (NDSN – Free Report) engineers, manufactures, and markets products and systems to dispense, apply, and control adhesives, coatings, polymers, sealants, biomaterials, and other fluids worldwide. The company has an Earnings ESP of +2.10% for first-quarter fiscal 2020 (ended January).

Nordson has an expected earnings growth rate of 1.7% for the current year (ending October 2020). The Zacks Consensus Estimate for the current year has improved 1% over the last 30 days. The Zacks Rank #2 company is set to release quarterly numbers on Feb 19, after the closing bell.

Hormel Foods Corp. (HRL – Free Report) produces and markets various meat and food products to retail, foodservice, deli, and commercial customers in the United States and internationally. It operates through four segments: Grocery Products, Refrigerated Foods, Jennie-O Turkey Store and International & Other. The company has an Earnings ESP of +1.10% for first-quarter fiscal 2020 (ended January).

Hormel Foods has an expected earnings growth rate of 2.9% for the current year. The Zacks Consensus Estimate for the current year has improved 0.6% over the last 30 days. The trailing four-quarter positive earnings surprise is 2.6%, on average. The Zacks Rank #2 company is set to release earnings results on Feb 20, before the opening bell.

Builders FirstSource Inc. (BLDR – Free Report) manufactures and supplies building materials, manufactured components, and construction services to professional homebuilders, sub-contractors, remodelers, and consumers in the United States. It operates through four segments: Northeast, Southeast, South and West. The company has an Earnings ESP of +1.45% for fourth-quarter 2019.

Builders FirstSource has an expected earnings growth rate of 7.4% for the current year. The Zacks Consensus Estimate for the current year has improved 0.5% over the last 30 days. The trailing four-quarter positive earnings surprise is 28.20%, on average. The Zacks Rank #1 company is set to release financial numbers on Feb 20, after the closing bell.

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Author: Nalak Das

Source: Zacks: Buy 5 Top Stocks Poised to Beat Earnings Estimates This Week

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