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Earnings Scheduled For May 26, 2021

  Companies Reporting Before The Bell • Boqii Holding (NYSE:BQ) is expected to report quarterly loss at $0.14 per share on revenue of $35.05 million. read more.....»»

Category: blogSource: benzingaMay 26th, 2021

What"s in the Offing for Micron Technology"s (MU) Q4 Earnings?

Micron's (MU) Q4 results likely to reflect benefits from significant memory chip demand from data-center operators and PC manufacturers amid the pandemic-induced work-and-learn-from-home wave. Micron Technology MU is scheduled to report fourth-quarter fiscal 2021 results on Sep 28.The company projects fiscal fourth-quarter adjusted earnings to be $2.30 (+/- 10 cents) per share. The Zacks Consensus Estimate for the quarterly earnings is pinned at $2.31 per share, having been revised upward by 16 cents over the past 90 days. The consensus mark indicates a 113.9% surge from the year-ago quarter.Meanwhile, Micron estimates revenues to be $8.2 billion (+/- $200 million). The consensus mark for revenues is currently pegged at $8.19 billion, suggesting a 35.3% increase from the year-earlier period.The company’s earnings surpassed the Zacks Consensus Estimate in all of the trailing four quarters, the average surprise being 7.7%.Let’s see how things have shaped up prior to this announcement.Micron Technology, Inc. Price and EPS Surprise Micron Technology, Inc. price-eps-surprise | Micron Technology, Inc. QuoteFactors to ConsiderThe stay-at-home situation has spurred significant chip demand from PC manufacturers and data-center operators, which is anticipated to have driven Micron’s fiscal fourth-quarter earnings. The global quarantine situation has fueled significant demand for PCs and notebooks, with the surge in workers and students working and learning from homes.The remote-working and online-learning trend amid the coronavirus crisis has also stoked demand for cloud storage. Furthermore, lockdowns have fueled the usage of online and e-commerce services globally, compelling data-center operators to enhance their capacities in order to accommodate the demand spike for cloud services. All these factors are likely to have aided Micron’s top line during the quarter under review.A solid uptick in the DRAM bit shipments for the cloud, graphics, PC and notebook, 5G and automotive markets is anticipated to have been a positive during the quarter to be reported.Nonetheless, Micron’s heavy dependence on China is a headwind due to the ongoing tit-for-tat trade spat between the United States and China. Restrictions on exports to Huawei might have hurt top-line growth of the memory chip maker.Additionally, a higher mix of lower-margin NAND, coupled with low memory prices and minimal decline in manufacturing costs, is expected to have strained margins.Furthermore, higher prequalification and labor expenses are likely to have negatively impacted Micron’s fourth-quarter bottom-line performance. During the fiscal second-quarter conference call, the company noted that it expects a rise in operating expenses during the second half of fiscal 2021 due to the higher prequalification and labor expenses.Moreover, operating expenses are expected to have flared up during the fiscal fourth quarter due to the resumption of the previously-delayed fiscal 2021 salary hikes in the fiscal third quarter. This might have hurt the company’s margins and profitability during the quarter under review.What Our Model SaysOur proven model does not conclusively predict an earnings beat for Micron this season. The combination of a positive Earnings ESP, and Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold), increases the chances of an earnings beat. But that’s not the case here. You can uncover the best stocks to buy or sell, before they’re reported, with our Earnings ESP Filter.Micron currently carries a Zacks Rank of 4 (Sell) and has an Earnings ESP of 0.00%.Stocks With Favorable CombinationsHere are some companies, which, per our model, have the right combination of elements to post earnings beats in their upcoming releases:Alcoa AA has an Earnings ESP of +33.55% and sports a Zacks Rank #1, at present. You can see the complete list of today’s Zacks #1 Rank stocks here.McCormick & Company MKC has an Earnings ESP of +0.28% and currently carries a Zacks Rank of 3.CarMax KMX has an Earnings ESP of +0.18% and holds a Zacks Rank of 3, currently. 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 77 billion devices by 2025, creating a $1.3 trillion market. Zacks has just released a Special Report that spotlights this fast-emerging phenomenon and 4 tickers for taking advantage of it. If you don't buy now, you may kick yourself in 2022.Click here for the 4 trades >>Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report Alcoa Corp. (AA): Free Stock Analysis Report Micron Technology, Inc. (MU): Free Stock Analysis Report CarMax, Inc. (KMX): Free Stock Analysis Report McCormick & Company, Incorporated (MKC): Free Stock Analysis Report To read this article on Zacks.com click here. Zacks Investment Research.....»»

Category: topSource: zacks1 hr. 50 min. ago

Steelmakers Capitalize Record Prices to Spend Big on New Mills

The recently announced multi-billion projects from major U.S. steel producers reflect the underlying strength in the domestic steel industry underpinned by strong demand and record-high prices. Record-high steel prices and an upswing in demand in the manufacturing sector have ushered in boom time for the steel industry. Some of the biggest names in this space are making big investment to establish new mega mills to leverage the industry’s bull run.Steel Boom Driving Spending SplurgeMajor American steel producers, Nucor Corp. NUE and United States Steel Corp. X recently announced plans to set up new mills in the United States.Nucor, on Monday, announced its plans to construct a state-of-the-art sheet mill having an annual capacity of 3 million tons. It is looking at locations in Ohio, Pennsylvania and West Virginia to build the mill.The company is spending roughly $2.7 billion on the new mill that will be able to produce hot-rolled sheet products with downstream processing. The construction is expected to take two years after the required regulatory approvals are obtained. The geographic position of the mill will allow it to serve Midwestern and Northeastern customers and ensure a significantly lower carbon footprint than nearby competitors.Nucor noted that the new mill will allow it to meet the growing need of many of its customers, especially in the automotive market. The sheet mill is the latest in a series of investments made by the Charlotte-based steel giant that are expected to contribute to profitable growth and strengthen its position as a low-cost producer. The company is on track with its other significant growth projects — the Brandenburg plate mill, the Generation 3 flexible galvanizing line at the Hickman sheet mill and the modernization and expansion of the Gallatin sheet mill in Kentucky.U.S Steel, last week, also said that it plans to spend $3 billion to build a new, three-million-ton mini mill flat-rolled facility in the United States. The planned mini mill will integrate two state-of-the-art electric arc furnaces (“EAF”) with differentiated steelmaking and finishing technology, including purchased equipment owned by the company. The continued adoption of mini mill technology will enhance the company’s ability to produce the next generation of highly-profitable proprietary sustainable steel solutions, including Advanced High Strength Steels.U.S. Steel expects to start construction of the mini mill in the first half of 2022 and commence production in 2024. The planned investment is a key step toward achieving the company's 2030 goal of reducing global greenhouse gas emissions intensity by 20% from the 2018 baseline.The newly announced multi-billion projects from these major steel producers reflect the underlying strength in the steel industry underpinned by solid demand and pricing fundamentals. Steel Dynamics, Inc. STLD is also progressing with the construction of its 3 million-ton state-of-the-art EAF flat roll steel mill in Sinton, TX with production expected to commence in fourth-quarter 2021.The U.S. steel industry came roaring back in 2021 after bearing the brunt of the pandemic last year, thanks to a strong revival in domestic demand and zooming steel prices.Coronavirus hurt demand for steel across major end-use markets such as construction and automotive during the first half of 2020. However, demand for steel started to pick up from the third quarter last year with the resumption of operations across major steel-consuming sectors, following the loosening of restrictions.American steel makers are seeing healthy order booking in automotive, notwithstanding the semiconductor crunch. Demand in the non-residential construction market and equipment also remains resilient.The demand rebound has contributed to the significant uptick in U.S. steel industry capacity utilization on the restart of idled capacity. U.S. steel prices are also on an upswing, driven by an upturn in demand and supply shortages partly due to the pandemic.The benchmark hot-rolled coil (“HRC”) prices are shooting higher on U.S. steel mills’ price hike actions, tight supply conditions, low steel imports and solid pent-up demand. Prices are hitting fresh highs, having shot up more than four-fold from the lows witnessed in August 2020 and also nearly doubled since the start of 2021. HRC prices have cruised above the $1,900 per short ton level as the upward momentum continues.The price rally is expected to continue in the coming months on solid demand and supply constraints, which is likely to be exacerbated by a series of planned mill outages and scheduled maintenance.U.S. Steel Industry Looks Set for A Solid Q3 Earnings SeasonRobust domestic demand and the price surge helped U.S. steel companies deliver strong results in the second quarter. These companies are benefiting from spread expansion as a significant spurt in HRC prices has more than offset higher ferrous scrap costs. Higher demand and a favorable pricing environment are likely to help U.S. steel producers to continue the momentum in the third quarter.Some of the prominent U.S. steel producers recently came up with an upbeat guidance for the September quarter. Nucor said that it expects to log record quarterly earnings in the third quarter, driven by strong demand across most of its end-markets and higher average selling prices. Steel Dynamics also sees record quarterly performance, supported by strong underlying steel demand and significant metal spread expansion, especially within the flat roll steel operations.U.S. Steel expects record third-quarter results driven by its Best for All business model, strong reliability and quality performance, persistent customer demand as well as sustained rise in steel selling prices. Olympic Steel, Inc. ZEUS, last month, said that it expects a strong third quarter on strong market dynamics and record-high prices.Nucor, Steel Dynamics and U.S. Steel each sports a Zacks Rank #1 (Strong Buy), while Olympic Steel has a Zacks Rank #3 (Hold).You can see the complete list of today’s Zacks #1 Rank stocks here. 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 77 billion devices by 2025, creating a $1.3 trillion market. Zacks has just released a Special Report that spotlights this fast-emerging phenomenon and 4 tickers for taking advantage of it. If you don't buy now, you may kick yourself in 2022.Click here for the 4 trades >>Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report Steel Dynamics, Inc. (STLD): Free Stock Analysis Report United States Steel Corporation (X): Free Stock Analysis Report Nucor Corporation (NUE): Free Stock Analysis Report Olympic Steel, Inc. (ZEUS): Free Stock Analysis Report To read this article on Zacks.com click here......»»

Category: topSource: zacks1 hr. 50 min. ago

5 Stocks to Watch as EV Adoption Revs Up

EV adoption has witnessed significant growth this year. Thus, investors should keep an eye on Nikola (NKLA), Hyliion (HYLN), Tesla (TSLA), Ford (F) & General Motors (GM). Electric vehicles (EV) are rapidly gaining in terms of reliability and a way to reduce the global carbon footprint. Longest-lasting, farthest-driving and affordable batteries are the key parameters of the race in the EV market.The automobile industry is moving toward electrification and the U.S. government is providing aid through the promotion of EV infrastructure and consumer rebates. Regardless of the government’s boost and the infrastructure bill scheduled to be passed on Sep 27, the industry is poised to witness tremendous growth.Consumer enthusiasm has been a key to EV growth, as can be seen from the boom in sales. In the first quarter of 2021, global EV sales surged 160% from the same quarter last year to 2.6 million units, according to a report by Canalys. Sales have been spectacular despite several supply-side constraints, especially the pandemic and chip shortage.China is the largest EV market while Europe has the highest EV adoption, with Norway leading with more than 80% of new car sales. Meanwhile, the United States is trying to catch up and the Biden administration hopes 40% to 50% of all new cars sales to be EVs by 2030.Recent technological developments are also boosting the EV space, starting from carmakers to battery producers and charging networks. In fact, batteries are the linchpin of any EV and this segment has especially witnessed exponential growth. Companies like Hyliion Holdings Corp. HYLN are developing electric powertrains that are compatible with renewable natural gas and hydrogen fuel cells. Meanwhile, QuantumScape announced a major breakthrough in solid-state lithium metal batteries that can totally change the way consumers view EVs.The EV market has also created several niches like battery recycling and disposal of old batteries. Companies like Li-Cycle Holdings, founded only in 2016, estimates that the EV industry will produce more than 15 million tons of discarded lithium-ion batteries by 2030. Li-Cycle, a battery recycling firm, plans to capture this segment by offering an outlet for used batteries and a sustainable source for materials to be used in recycled batteries. It aims to recover usable materials from thrown-away batteries and touts that up to 95% of the battery materials can be processed for recovery, which in turn will reduce waste.Automobile bigwigs are also investing millions into EVs. On Sep 22, Ford Motor Company F reported that it is investing $50 million in Redwood Materials to recycle EV batteries. Redwood, which is well known for recycling batteries for e-bike, will expand its manufacturing facilities and cater to make EVs more sustainable and affordable. This deal is part of the $22-billion plan that Ford earlier announced to up its game in the EV market. The company also has the Mach-E, the e-Transit commercial van, and an electric F-150 line-up, set to be launched this year and the next.5 Stocks to WatchGlobal administration bodies are increasing regulations to phase out fossil fuel-powered vehicles and promoting EV infrastructure. Additionally, the decline in the cost of batteries and the luxury that EVs provide are also attracting buyers. Per a Meticulous Market Research forecast, the global EV market is expected to reach $2.5 trillion by 2027, at a CAGR of 33.6% from 2020. The company estimates the sale of 233.9 million units by 2027, at a CAGR of 21.7%.Given the positives, we have shortlisted five stocks covering EV manufacturers (pure-play & traditional), battery makers and charging networks that are poised to grow and investors should look out for.Nikola Corporation NKLA develops and commercializes battery-electric (BEV) and fuel cell electric (FCEV) Class 8 trucks for the short, medium, and long-haul trucking sector and also offers hydrogen EVs, EV drivetrains, vehicle components, and energy storage systems. Earlier in September, Nikola inaugurated a joint-venture manufacturing facility with CNH Industrial dedicated to the development of the Nikola Tre electric heavy-duty trucks.The company’s expected earnings growth rate for the current quarter is 16.1% against the Zacks Automotive - Domestic industry’s projected decline of 48.7%. The Zacks Consensus Estimate for this company’s current-year earnings has been revised 18.5% upward over the past 60 days. Nikola currently holds a Zack Rank #2 (Buy). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.Hyliion Holdings designs, develops, and sells electrified powertrain solutions and also provides battery management systems for hybrid and fully EV applications. This Zack Rank #2 company that belongs to the Zacks Automotive - Original Equipment industry has an expected earnings growth rate of 50% for the current quarter. The Zacks Consensus Estimate for this company’s current-year earnings has been revised 9.4% upward over the past 60 days.Tesla, Inc. TSLA designs, develops, manufactures, leases, and sells electric vehicles, and energy generation and storage systems.The company’s expected earnings growth rate for the current year is more than 100% compared with the Zacks Automotive - Domestic industry’s projected growth of 15.2%. The Zacks Consensus Estimate for this company’s current-year earnings has been revised 19.1% upward over the past 60 days. Tesla carries a Zack Rank #3 (Hold).Ford, a Zack Rank #3 company, designs, manufactures, markets, and services a range of Ford trucks, cars, sport utility vehicles, electrified vehicles, and Lincoln luxury vehicles. The company plans to add F-150 Lightning with four series and two battery options to the range of Mustang Mach-E catalog by spring 2022.The auto giant has an expected earnings growth rate for the current year of more than 100% compared with the Zacks Automotive - Domestic industry’s projected growth of 15.2%. The Zacks Consensus Estimate for this company’s current-year earnings has been revised 28.2% upward over the past 60 days.General Motors Company GM designs, builds, and sells cars, trucks, crossovers, and automobile parts. The company recently unveiled the Cadillac LYRIQ show car and the GMC HUMMER EV, which joined the Chevrolet Bolt EV, and is currently on the market. The auto giant will invest $27 billion in EVs and associated products between 2020 and 2025.This Zack Rank #3 company’s expected earnings growth rate for the current year is 25.7% compared with the Zacks Automotive - Domestic industry’s projected growth of 15.2%. The Zacks Consensus Estimate for this company’s current-year earnings has been revised 0.7% upward over the past 90 days. 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 77 billion devices by 2025, creating a $1.3 trillion market. Zacks has just released a Special Report that spotlights this fast-emerging phenomenon and 4 tickers for taking advantage of it. If you don't buy now, you may kick yourself in 2022.Click here for the 4 trades >>Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report Ford Motor Company (F): Free Stock Analysis Report General Motors Company (GM): Free Stock Analysis Report Tesla, Inc. (TSLA): Free Stock Analysis Report Nikola Corporation (NKLA): Free Stock Analysis Report Hyliion Holdings Corp. (HYLN): Free Stock Analysis Report To read this article on Zacks.com click here. Zacks Investment Research.....»»

Category: topSource: zacks1 hr. 50 min. ago

IHS Markit (INFO) to Post Q3 Earnings: What"s in the Cards?

IHS Markit Ltd.'s (INFO) third-quarter fiscal 2021 earnings and revenues are likely to reflect strong segmental performance. IHS Markit Ltd. INFO is scheduled to release third-quarter fiscal 2021 results on Sep 28, before the bell.The company has an impressive earnings surprise history, having surpassed the Zacks Consensus Estimate in all of the last four quarters. It has a trailing four-quarter earnings surprise of 5.4%, on average.IHS Markit Ltd. Price and EPS Surprise  IHS Markit Ltd. price-eps-surprise | IHS Markit Ltd. Quote Expectations This Time AroundThe Zacks Consensus Estimate for revenues in the to-be-reported quarter is pegged at $1.17 billion, indicating year-over-year growth of 9.2%. The top line is likely to have gained from strong performance in the Financial Services and Transportation segments.In the transportation segment, the dealer-facing part of IHS Markit’s automotive offerings is likely to have experienced robust growth across CARFAX and automotive Mastermind in the quarter. Demand for products supporting OEMs, banking and insurance clients as well as parts manufacturers is expected to have increased significantly.The Financial Services segment’s revenues are expected to have benefited from organic growth, driven by growth in demand for the company’s pricing, reference data and valuation offerings, strong growth in the equities regulatory reporting as well as trade and analytics platforms. The segment is likely to have benefitted from strong activity in equities and loan markets, combined with strength in customers in software solutions, corporate actions, regulatory and compliance offerings.The consensus mark for earnings per share in the to-be-reported quarter is pegged at 83 cents per share, indicating year-over-year growth of 7.8%.  The bottom line is projected to have benefited from improvement in operating performance.What Our Model SaysOur proven model does not conclusively predict an earnings beat for IHS Markit this time around. The combination of a positive Earnings ESP and a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold) increases the odds of an earnings beat. But that’s not the case here. You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.IHS Markit has an Earnings ESP of 0.00% and a Zacks Rank #3.You can see the complete list of today’s Zacks #1 Rank stocks here.Stocks to ConsiderHere are a few stocks from the broader Zacks Business Services sector that investors may consider, as our model shows that these have the right combination of elements to beat on earnings in their upcoming releases:Booz Allen Hamilton BAH has an Earnings ESP of +1.98% and a Zacks Rank #3.Fidelity National Information Services FIS has an Earnings ESP of +0.81% and a Zacks Rank #3.Trane Technologies TT has an Earnings ESP of +0.73% and a Zacks Rank #3.  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 77 billion devices by 2025, creating a $1.3 trillion market. Zacks has just released a Special Report that spotlights this fast-emerging phenomenon and 4 tickers for taking advantage of it. If you don't buy now, you may kick yourself in 2022.Click here for the 4 trades >>Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report Fidelity National Information Services, Inc. (FIS): Free Stock Analysis Report Booz Allen Hamilton Holding Corporation (BAH): Free Stock Analysis Report Trane Technologies plc (TT): Free Stock Analysis Report IHS Markit Ltd. (INFO): Free Stock Analysis Report To read this article on Zacks.com click here......»»

Category: topSource: zacks1 hr. 50 min. ago

RBC Bearings (ROLL) Prices Stock Offerings, To Offer Notes

RBC Bearings (ROLL) offers common and convertible preferred stocks to the public and intends on offering senior notes privately. Proceeds are to be primarily used for funding the DODGE buyout. RBC Bearings Incorporated ROLL announced the pricing of public offerings of its common shares and 5.00% Series A mandatory convertible preferred stock. Concurrently, the company communicated that its wholly-owned subsidiary, Roller Bearing Company of America, Inc., intends on issuing $500 million of senior notes.Yesterday, RBC Bearings’ shares gained 5.43%, ending the trading session at $199.57.Inside the HeadlinesFor 3 million common share offerings, RBC Bearings priced each share at $185.00. Underwriters have been given the option to purchase additional 0.45 million common stocks. Discount offered to the underwriters totals $27.8 million (at the rate of $9.25 per common stock for 3 million shares) or $31.9 million (at the rate of $9.25 per common stock for 3.45 million shares). The net proceeds from the common stock offering are expected to be $526.4 million (for 3 million share offering) or $605.5 million if the underwriters exercise their options entirely.For a $400-million preferred stock offering, the company priced each stock at $100.00. At this price, its offerings are for 4 million preferred stocks or 4.6 million stocks, including underwriters’ option to buy additional 0.6 million stocks. Notably, each preferred stock has a liquidation preference of $100.The annual dividend rate for the preferred stock is 5%. Payouts will be made quarterly on Jan 15, Apr 15, Jul 15 and Oct 15. The first disbursement is scheduled for Jan 15, 2022, and the last payment is on Oct 15, 2024.Notably, the preferred stocks will be converted into the company’s common shares on Oct 15, 2024. The initial minimum and maximum conversion rates are 0.4413 and 0.5405, respectively, while the initial minimum and maximum conversion prices are $185.00 per share and $226.63 per share, respectively.The underwriters’ discount totals $12 million (at the rate of $3.00 per preferred stock for 4 million shares) or $13.8 million (at the rate of $3.00 per preferred stock for 4.6 million shares). Net proceeds are expected to be 387.2 million (for 4 million shares) or $445.4 million if the underwriters exercise their options entirely.The option for underwriters in both offerings is valid for 30 days. Also, net proceeds are after adjusting discounts for underwriters, commissions, and expenses related to the offerings. The settlement date for both offerings is set at Sep 24, 2021.RBC Bearings anticipates using the net proceeds from the common stock and preferred stock offerings to fund the acquisition of Asea Brown Boveri Ltd’s DODGE mechanical power transmission division. The deal, valued at $2.9 billion, was announced by RBC Bearings in July and is anticipated to be complete in third-quarter fiscal 2022 (ending December 2021). In addition, the company plans on using the proceeds for paying fees and expenses related to the DODGE acquisition and satisfy general corporate purposes.Regarding the senior notes offering, RBC Bearings’ subsidiary proposes to offer senior notes due to mature in 2029. The private offering of notes is subject to the satisfaction of the market and other necessary conditions. The proceeds raised from the offerings will be used for financing the acquisition of Asea Brown Boveri Ltd’s DODGE mechanical power transmission division. Also, buyout-related expenses and other costs will be financed.It is worth mentioning here that RBC Bearings’ shares outstanding at the end of first-quarter fiscal 2022 (ended Jul 3, 2021) were 25.3 million, while its long-term debts are $10.8 million.We believe that the above-mentioned common stock offering along with preferred stocks, when converted into common stock, will increase the company’s common stock outstanding balance. A rise in shares outstanding will likely have adverse impacts on the company’s earnings per share. Also, the issuance of senior notes will inflate the debts.Zacks Rank, Price Performance and Estimate TrendWith a market capitalization of $4.8 billion, RBC Bearings currently carries a Zacks Rank #3 (Hold). Strength in industrial markets, healthy backlog and favorable shareholder-friendly policies are beneficial. However, the persistence of weakness in the aerospace markets is concerning.In the past three months, the company’s shares have decreased 2.3% compared with the industry’s decline of 3.9%. Image Source: Zacks Investment Research In the past 60 days, the Zacks Consensus Estimate for its earnings has decreased 3.7% to $1.05 per share for the second quarter of fiscal 2022 (ending September 2021). The consensus estimate for fiscal 2022 (ending March 2022) at $4.49 and for fiscal 2023 (ending March 2023) at $5.14 reflects 0.2% and 0.8% increases from the 60-day-ago figures, respectively.RBC Bearings Incorporated Price and Consensus  RBC Bearings Incorporated price-consensus-chart | RBC Bearings Incorporated QuoteStocks to ConsiderThree better-ranked stocks in the industry are Kadant Inc. KAI, Nordson Corporation NDSN and EnPro Industries, Inc. NPO. While Kadant and Nordson presently sport a Zacks Rank #1 (Strong Buy), EnPro Industries carries a Zacks Rank #2 (Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.In the past 60 days, earnings estimates for these companies have improved for the current year. Further, positive earnings surprise for the last reported quarter was 33.11% for Kadant, 14.15% for Nordson and 25.81% for EnPro Industries. 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 77 billion devices by 2025, creating a $1.3 trillion market. Zacks has just released a Special Report that spotlights this fast-emerging phenomenon and 4 tickers for taking advantage of it. If you don't buy now, you may kick yourself in 2022.Click here for the 4 trades >>Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report Nordson Corporation (NDSN): Free Stock Analysis Report Kadant Inc (KAI): Free Stock Analysis Report EnPro Industries (NPO): Free Stock Analysis Report RBC Bearings Incorporated (ROLL): Free Stock Analysis Report To read this article on Zacks.com click here. Zacks Investment Research.....»»

Category: topSource: zacks1 hr. 50 min. ago

General Dynamics (GD) Wins Deal to Support Abrams Tank System

General Dynamics (GD) is going to provide technical support services for the Abrams tank system. General Dynamics Corporation’s GD Land Systems business unit recently secured a $13.7-million modification contract to provide technical support services for the Abrams tank system. The contract has been awarded by the U.S. Army Contracting Command, Warren, MI.Work related to the deal will be performed in Sterling Heights, MI, and is scheduled to be completed by Sep 30, 2022.Solid Demand for MBTsNations are developing advanced new generation main battle tanks (MBTs) to equip their militaries amid rising geopolitical tensions. General Dynamics’ Abrams battle tank is one such tank and thus its demand continues to soar.Apart from the solid demand on the domestic front, it has a robust customer base overseas. Major international militaries of nations like Egypt, Kuwait, Saudi Arabia, Australia, and Iraq are the primary customers of Abrams battle tanks. Therefore, General Dynamics witnesses solid contract flow for Abrams from Pentagon and other U.S. allies.The company won a $4.62 billion worth contract for manufacturing Abrams M1A2 SEPv3 tanks, last year. The latest contract win is yet another bright example of the solid demand that this tank enjoys.The fiscal 2022 U.S. defense budget included an allotment of $70 million for Abrams battle tank modifications. Such budgetary provisions should usher in more contract wins for the Abrams system and its associated technical upgrades from Pentagon. Such contract wins are likely to boost the company’s profit margin, going ahead.ProspectsPer a report by Mordor Intelligence, the MBT market is expected to register a CAGR of more than 3% during 2020-2025, which bodes well for manufacturers of such battle tanks like General Dynamics, BAE Systems Plc BAESY, and Hyundai Rotem - part of Hyundai Motor Group HYMLF.Price PerformanceShares of General Dynamics have gained 41.5% in a year against the industry’s decline of 5.6%.Image Source: Zacks Investment ResearchZacks Rank & A Key PickGeneral Dynamics currently carries a Zacks Rank #3 (Hold). A better-ranked stock in the same industry is Textron Inc. TXT, which holds a Zacks Rank #2 (Buy) You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.Textron delivered an earnings surprise of 37.41%, on average, in the last four quarters. The Zacks Consensus Estimate for 2021 earnings indicates growth of 58.5%. 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 77 billion devices by 2025, creating a $1.3 trillion market. Zacks has just released a Special Report that spotlights this fast-emerging phenomenon and 4 tickers for taking advantage of it. If you don't buy now, you may kick yourself in 2022.Click here for the 4 trades >>Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report General Dynamics Corporation (GD): Free Stock Analysis Report Textron Inc. (TXT): Free Stock Analysis Report Bae Systems PLC (BAESY): Free Stock Analysis Report Hyundai Motor Co. (HYMLF): Free Stock Analysis Report To read this article on Zacks.com click here. Zacks Investment Research.....»»

Category: topSource: zacks1 hr. 50 min. ago

Steelcase Reports Second Quarter Fiscal 2022 Results

Orders grew 24% compared to prior year and 12% compared to first quarter Second quarter revenue impacted by supply chain disruptions, which are expected to persist into third quarter Third price increase of fiscal 2022 announced in response to continued significant inflationary pressures Outlook for third quarter reflects revenue growth of 22% to 27% over prior year GRAND RAPIDS, Mich., Sept. 22, 2021 (GLOBE NEWSWIRE) -- Steelcase Inc. (NYSE:SCS) today reported second quarter revenue of $724.8 million and net income of $24.7 million, or $0.21 per share. In the prior year, Steelcase reported revenue of $818.8 million and net income of $55.5 million, or $0.47 per share and adjusted earnings of $0.55 per share. In the prior year, revenue benefited from a stronger beginning backlog due to pandemic-related restrictions on manufacturing and delivery activities during the previous quarter, and net income benefited from significant temporary cost reduction actions. Revenue decreased 11 percent in the second quarter compared to the prior year, or 14 percent on an organic basis. Revenue declined 17 percent in the Americas, while revenue grew 10 percent in EMEA and 1 percent in the Other category. Revenue in the prior year benefited from the stronger beginning backlog, and the company estimates revenue in the Americas in the current quarter was negatively impacted by at least $40 million due to shipment delays caused by supply chain disruptions. On an organic basis, revenue declined 19 percent in the Americas and 1 percent in the Other category, while revenue grew 5 percent in EMEA. Orders (adjusted for the impact of an acquisition and currency translation effects) grew 24 percent in the second quarter compared to the prior year, and 12 percent compared to the first quarter. Orders grew 26 percent in the Americas driven by strong growth across all geographic regions and quote types. Orders grew 23 percent in EMEA against the prior year or 43 percent excluding a $19 million project in the prior year. Orders grew 15 percent in the Other category compared to the prior year driven by very strong growth across all regions in Asia Pacific except India, which was negatively impacted by the COVID-19 pandemic.   Q2 2022 vs. Q2 2021   Q2 2022 vs. Q1 2022     Revenue Growth (Decline)   Organic Revenue Growth (Decline)   Organic OrderGrowth   Organic Order Growth                     Americas (17 )%   (19 )%   26 %   10 %   EMEA 10 %   5 %   23 %   17 %   Other category 1 %   (1 )%   15 %   20 %   Steelcase Inc. (11 )%   (14 )%   24 %   12 %                             "Our second quarter order growth of 24 percent was better than we expected, and in some parts of our business, orders approached or exceeded fiscal 2020 levels," said Jim Keane, president and CEO. "A significant number of industry-wide supply chain disruptions have caused us to extend lead times and delay some shipments, which negatively impacted our second quarter revenue. We have not experienced any significant order cancellations as a result of these delays." Second quarter operating income of $33.9 million represented a decrease compared to operating income of $88.6 million and adjusted operating income of $104.2 million in the prior year, excluding the impact of restructuring costs in the Americas. The Americas reported operating income of $44.7 million, which compares to operating income of $94.6 million and adjusted operating income of $110.2 million in the prior year, with the decrease primarily attributable to lower revenue and gross margin. EMEA reported an operating loss of $1.6 million compared to an operating loss of $3.5 million in the prior year due to higher revenue in the current year. The Other category reported an operating loss of $4.2 million compared to $1.1 million of operating income in the prior year due to lower gross margin and higher operating expenses in the current year. Gross margin of 28.5 percent in the second quarter represented a decrease of 440 basis points compared to the prior year, which included $6.9 million restructuring costs in the Americas. Gross margin declined by 550 basis points in the Americas, improved by 120 basis points in EMEA and declined by 420 basis points in the Other category. The decline in the Americas was due to the impact of lower revenue, approximately $17 million of higher inflation, net of pricing, and approximately $5 million of higher freight cost inefficiencies associated with the supply chain disruptions. The decline in the Other category was due to inefficiencies associated with pandemic-related disruptions and approximately $1 million of higher inflation, net of pricing. "The extraordinary inflation in steel, logistics and many other commodities impacted our gross margins more significantly than we expected in the second quarter, and we now project inflation will have a more significant impact on our results over the remainder of this fiscal year than we had previously expected," said Dave Sylvester, senior vice president and CFO.  "The industry forecasts for steel costs have been revised upward and projected to last longer as they have been updated each month over the last year. Last week, in response to these unprecedented levels of inflation, we announced our third price increase of this year. We expect it will take until the second quarter of fiscal 2023 for the benefits from these three price increases to offset the current level of inflation." Operating expenses of $172.9 million in the second quarter represented an increase of $0.6 million compared to the prior year. The prior year included approximately $22 million of lower employee costs as a result of temporary hour and pay reductions and gains of $4.1 million from the sale of land. The current year included a $15.4 million gain from the sale of land, approximately $10 million of benefits related to workforce reductions in the prior year and $12.4 million of lower variable compensation, partially offset by approximately $6 million of higher discretionary spending and $3.2 million from an acquisition. Income tax expense of $4.7 million in the second quarter reflected an effective tax rate of approximately 16 percent, which included $3.8 million of discrete tax benefits. In the prior year, income tax expense was $27.3 million and reflected an effective tax rate of approximately 33 percent. Total liquidity, comprised of cash and cash equivalents and the cash surrender value of company-owned life insurance, aggregated to $530.5 million at the end of the second quarter. Total debt was $484.5 million. During the second quarter, the company repurchased a total of 1.9 million shares of its Class A Common Stock for a total cost of $26.6 million. A total of $29.9 million remained under the company's share repurchase authorization at the end of the second quarter. The Board of Directors has declared a quarterly cash dividend of $0.145 per share, to be paid on or before October 15, 2021, to shareholders of record as of October 4, 2021. Outlook At the end of the second quarter, the company's backlog of customer orders was approximately $715 million, which was approximately 22 percent higher than the prior year, and approximately 15 percent higher than at the end of the first quarter, on an organic basis. The backlog includes a higher than historical percentage of orders scheduled to ship beyond the third quarter. As a result, the company expects third quarter fiscal 2022 revenue to be in the range of $755 to $785 million. The company reported revenue of $617.5 million in the third quarter of fiscal 2021 which was impacted by shipment delays of approximately $60 million due to a temporary global operations shutdown. The projected revenue translates to growth of 22 to 27 percent compared to the third quarter of fiscal 2021, or organic growth of 20 to 25 percent, adjusted for an acquisition and currency translation effects. The company expects to report earnings per share of between $0.07 to $0.11 for the third quarter of fiscal 2022. The estimate includes: (1) projected inflation, net of pricing benefits, of approximately $28 million as compared to the prior year, (2) continued supply chain disruptions and related costs similar to the second quarter, (3) projected operating expenses of between $195 to $200 million, (4) projected interest expense, investment income and other income, net, of approximately $5 million, and (5) a projected effective tax rate of approximately 28 percent. Steelcase reported earnings per share of $0.02, and adjusted earnings per share of $0.08, in the third quarter of fiscal 2021. For the fourth quarter of fiscal 2022, the company continues to target double-digit revenue growth compared to fiscal 2021, based on the expected economic strength in most markets and the return of workers to offices around the world. "The rise of the Delta variant has caused some U.S. customers to delay their return-to-office plans and has led to temporary uncertainty that may explain recent softening we have seen in our pipeline of project opportunities and requests for proposals in the Americas," said Jim Keane. "Nevertheless, our orders were quite strong throughout the second quarter and remained strong in recent weeks, which is reflected in our third quarter revenue outlook. As the U.S. implements vaccine and testing mandates, businesses may see a more certain path to bringing people back to the office." Business Segment Results                       (in millions)                                                 (Unaudited)       (Unaudited)       Three Months Ended       Six Months Ended       August 27,2021   August 28,2020   % Change   August 27,2021   August 28,2020   % Change                         Revenue                       Americas (1) $ 523.3     $ 631.2     (17 )%   $ 899.6     $ 965.1     (7 )% EMEA (2) 138.9     125.9     10 %   262.5     225.4     16 % Other (3) 62.6     61.7     1 %   119.3     111.1     7 % Consolidated revenue $ 724.8     $ 818.8     (11 )%   $ 1,281.4     $ 1,301.6     (2 )% Operating income (loss)                           Americas $ 44.7      $ 94.6            $ 29.7      $ 71.1          EMEA (1.6 )   (3.5 )         (7.3 )   (28.1 )       Other (4.2 )   1.1            (9.5 )   (0.5 )       Corporate (4) (5.0 )   (3.6 )         (10.8 )   (6.2 )       Consolidated operating income $ 33.9      $ 88.6            $ 2.1      $ 36.3                                      Operating income as a percentage of revenue 4.7  %   10.8  %         0.2  %   2.8  %       Revenue mix                           Americas 72.2 %   77.1 %         70.2 %   74.1 %       EMEA 19.2 %   15.4 %         20.5 %   17.3 %       Other 8.6 %   7.5 %         9.3 %   8.6 %       Business Segment Footnotes The Americas segment serves customers in the U.S., Canada, the Caribbean Islands and Latin America, with a comprehensive portfolio of furniture, architectural and technology products marketed to corporate, government, healthcare, education and retail customers through the Steelcase, Coalesse, Smith System, AMQ and Orangebox brands. The EMEA segment serves customers in Europe, the Middle East and Africa primarily under the Steelcase, Orangebox and Coalesse brands, with a comprehensive portfolio of furniture, architectural and technology products. The Other category includes Asia Pacific and Designtex. Asia Pacific serves customers in Australia, China, India, Japan, Korea and other countries in Southeast Asia primarily under the Steelcase brand with a comprehensive portfolio of furniture, architectural and technology products. Designtex primarily sells textiles, wall coverings and surface imaging solutions specified by architects and designers directly to end-use customers through a direct sales force primarily in North America. Corporate costs include unallocated portions of shared service functions such as information technology, corporate facilities, finance, human resources, research, legal and customer aviation, plus deferred compensation expense and income or losses associated with company-owned life insurance.   QUARTER OVER QUARTER ORGANIC REVENUE GROWTH (DECLINE) BY SEGMENT Q2 2022 vs. Q2 2021                 Steelcase Inc.   Americas   EMEA   Other category                 Q2 2021 revenue $ 818.8     $ 631.2     $ 125.9   $ 61.7   Dealer acquisition 13.1     13.1     —   —   Currency translation effects* 9.8     2.1     6.3   1.4   Q2 2021 revenue, adjusted 841.7     646.4     132.2   63.1                   Q2 2022 revenue 724.8     523.3     138.9   62.6   Organic growth (decline) $ $ (116.9 )   $ (123.1 )   $ 6.7   $ (0.5 ) Organic growth (decline) %   (14 )%     (19 )%     5%     (1 )%                 * Currency translation effects represent the estimated net effect of translating Q2 2021 foreign currency revenues using the average exchange rates during Q2 2022. PROJECTED ORGANIC REVENUE GROWTH Q3 2022 vs. Q3 2021       Steelcase Inc.       Q3 2021 revenue $ 617.5 Dealer acquisition   11.8 Currency translation effects*   0.6 Q3 2021 revenue, adjusted $ 629.9       Q3 2022 revenue, projected $ 755 - 785 Organic growth $ $ 125 - 155 Organic growth %   20% - 25%       * Currency translation effects represent the estimated net effect of translating Q3 2021 foreign currency revenues using the exchange rates at the end of Q2 2022. ADJUSTED EARNINGS (LOSS) PER SHARE                   (Unaudited)   (Unaudited)   Three Months Ended   Six Months Ended   August 27,2021   August 28,2020   August 27,2021   August 28,2020 Diluted earnings (loss) per share $ 0.21     $ 0.47     $ (0.03 )   $ 0.15   Goodwill impairment charge, per share —     —     —     0.15   Restructuring costs, per share —     0.13     —     0.13   Income tax effect of restructuring costs, per share —     (0.05 )   —     (0.05 ) Adjusted earnings (loss) per share $ 0.21     $ 0.55     $ (0.03 )   $ 0.38   PROJECTED ADJUSTED EARNINGS PER SHARE               (Unaudited)     Three Months Ended   November 26, 2021(Projected)   November 27, 2020 Diluted earnings per share $ 0.07 - 0.11   $ 0.02   Restructuring costs, per share   —   0.10   Income tax effect of restructuring costs, per share   —   (0.04 ) Adjusted earnings per share $ 0.07 - 0.11   $ 0.08   Steelcase Inc.                                 (Unaudited)   (Unaudited)   Three Months Ended   Six Months Ended   August 27,2021   August 28,2020   August 27,2021   August 28,2020 Revenue $ 724.8     100.0 %   $ 818.8     100.0 %   $ 1,281.4     100.0 %   $ 1,301.6     100.0 % Cost of sales 518.0     71.5     542.3     66.3     919.9     71.8     902.4     69.4   Restructuring costs —     —     6.9     0.8     —     —     6.9    .....»»

Category: earningsSource: benzinga17 hr. 18 min. ago

Seagen (SGEN) Gets Early FDA Nod for Tivdak in Cervical Cancer (Revised)

The FDA grants accelerated nod to Seagen (SGEN) and Genmab's Tivdak for treating adult patients with recurrent/metastatic cervical cancer with disease progression on or after chemotherapy. Seagen Inc. SGEN, along with its Danish partner Genmab A/S GMAB, announced that the FDA has granted accelerated approval to their investigational antibody drug conjugate (“ADC”), Tivdak (tisotumab vedotin-tftv), for the treatment of recurrent/metastatic cervical cancer in adult patients whose disease progressed on or after chemotherapy.Following the FDA nod, Tivdak became the first and only approved ADC to address the given indication.We note that the approval of Tivdak comes before the scheduled Prescription Drug User Fee Act action date of Oct 10, 2021.In April 2021, the FDA accepted and granted priority review to the biologics license application (“BLA”) for Tivdak. In February 2021, the BLA was submitted to the FDA for the accelerated approval of Tivdak.The BLA was based on data from the pivotal phase II innovaTV 204 study, which evaluated Tivdak as a monotherapy for the treatment of recurrent/metastatic cervical cancer. The FDA has approved Tivdak under its Accelerated Approval Program based on tumor response and the durability of the response.However, the approval for Tivdak came with a boxed warning for ocular toxicity.Shares of Seagen have declined 9.2% so far this year against the industry’s rise of 0.9%.Image Source: Zacks Investment ResearchPer the company, over 14,480 new cases of invasive cervical cancer are expected to be diagnosed in the United States in 2021 with 4,290 women dying from the disease. Hence, the approval for Tivdak should offer a new treatment option for the given patient population.Seagen’s portfolio currently comprises of three marketed drugs, namely, Adcetris, Padcev and Tukysa, which are approved for different cancer indications. The company generated net product revenues of $649.9 million in the first six months of 2021, reflecting 48% growth year over year. The latest approval for Tivdak has now added a fourth drug to Seagen’s portfolio, which should drive growth for the company in 2021 and beyond.Zacks Rank & Stocks to ConsiderSeagen currently carries a Zacks Rank #3 (Hold). Better-ranked stocks in the biotech sector include Vertex Pharmaceuticals Incorporated VRTX and Spero Therapeutics, Inc. SPRO, both carrying a Zacks Rank #2 (Buy) at present. You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.Vertex’s earnings estimates have been revised 10.2% upward for 2021 and 7.3% upward for 2022 over the past 60 days.Spero Therapeutics’ loss per share estimates have narrowed 8.2% for 2021 and 10.6% for 2022 over the past 60 days.(We are reissuing this article to correct a mistake. The original article, issued on September 21, 2021, should no longer be relied upon.) Infrastructure Stock Boom to Sweep America A massive push to rebuild the crumbling U.S. infrastructure will soon be underway. It’s bipartisan, urgent, and inevitable. Trillions will be spent. Fortunes will be made. The only question is “Will you get into the right stocks early when their growth potential is greatest?” Zacks has released a Special Report to help you do just that, and today it’s free. Discover 7 special companies that look to gain the most from construction and repair to roads, bridges, and buildings, plus cargo hauling and energy transformation on an almost unimaginable scale.Download FREE: How to Profit from Trillions on Spending for Infrastructure >>Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report Vertex Pharmaceuticals Incorporated (VRTX): Free Stock Analysis Report Seagen Inc. (SGEN): Free Stock Analysis Report Spero Therapeutics, Inc. (SPRO): Free Stock Analysis Report Genmab AS Sponsored ADR (GMAB): Free Stock Analysis Report To read this article on Zacks.com click here. Zacks Investment Research.....»»

Category: topSource: zacksSep 22nd, 2021

What"s in the Cards for Accenture (ACN) in Q4 Earnings?

Accenture's (ACN) fourth-quarter fiscal 2021 earnings and revenues are expected to have improved year over year. Accenture plc ACN is scheduled to report fourth-quarter fiscal 2021 results on Sep 23, before market open.Let’s check out the expectations in detail.Q4 Expectations in DetailThe Zacks Consensus Estimate for the to-be-reported quarter’s revenues is pegged at $13.48 billion, implying 24.4% growth from the year-ago reported figure. The consensus estimate lies within the guided range of $13.1-$13.5 billion.Going by segments, the consensus estimate for Communications, Media & Technology revenues stands at $2.73 billion, indicating growth of 23.9% from the year-ago reported number. The consensus mark for Financial Services revenues is pegged at $2.52 billion, indicating year-over-year increase of 19.7%. The consensus estimate for Health & Public Service revenues stands at $2.58 billion, indicating year-over-year growth of 23.3%. The consensus estimate for Products revenues is pegged at $3.69 billion, indicating year-over-year increase of 27.3%. The consensus mark for Resources revenues stands at $1.84 billion, indicating year-over-year growth of 19.7%.The consensus mark for earnings stands at $2.19 per share, implying 28.8% growth from the year-ago reported figure. The bottom line is expected to have benefited from higher revenues and operating numbers, lower non-operating expenses and lower effective tax rate.What Our Model SaysOur proven model does not conclusively predict an earnings beat for Accenture this time around. The combination of a positive Earnings ESP and a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold) increases the odds of an earnings beat. But that’s not the case here. You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.Accenture has an Earnings ESP of 0.00% and a Zacks Rank #3.Accenture PLC Price and EPS Surprise Accenture PLC price-eps-surprise | Accenture PLC QuoteStocks to ConsiderHere are a few stocks from the broader Zacks Business Services sector that investors may consider, as our model shows that these have the right combination of elements to beat on earnings in their upcoming releases:Booz Allen Hamilton BAH has an Earnings ESP of +1.98% and a Zacks Rank #3. You can see the complete list of today’s Zacks #1 Rank stocks here.Fidelity National Information Services FIS has an Earnings ESP of +0.81% and a Zacks Rank #3.Trane Technologies TT has an Earnings ESP of +0.73% and a Zacks Rank #3. 5 Stocks Set to Double Each was handpicked by a Zacks expert as the #1 favorite stock to gain +100% or more in 2021. Previous recommendations have soared +143.0%, +175.9%, +498.3% and +673.0%. 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.Today, See These 5 Potential Home Runs >>Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report Accenture PLC (ACN): Free Stock Analysis Report Fidelity National Information Services, Inc. (FIS): Free Stock Analysis Report Booz Allen Hamilton Holding Corporation (BAH): Free Stock Analysis Report Trane Technologies plc (TT): Free Stock Analysis Report To read this article on Zacks.com click here. Zacks Investment Research.....»»

Category: topSource: zacksSep 21st, 2021

Seagen (SGEN) Gets Early FDA Nod for Tivdak in Cervical Cancer

The FDA grants accelerated nod to Seagen (SGEN) and Genmab's Tivdak for treating adult patients with recurrent/metastatic cervical cancer with disease progression on or after chemotherapy. Seagen Inc. SGEN, along with its Danish partner Genmab A/S GMAB, announced that the FDA has granted accelerated approval to their investigational antibody drug conjugate (“ADC”), Tivdak (tisotumab vedotin-tftv), for the treatment of recurrent/metastatic cervical cancer in adult patients whose disease progressed on or after chemotherapy.Following the FDA nod, Tivdak became the first and only approved ADC to address the given indication.We note that the approval of Tivdak comes before the scheduled Prescription Drug User Fee Act saction date of Oct 10, 2021.In April 2021, the FDA accepted and granted priority review to the biologics license application (“BLA”) for Tivdak. In February 2021, the BLA was submitted to the FDA for the accelerated approval of Tivdak.The BLA was based on data from the pivotal phase II innovaTV 204 study, which evaluated Tivdak as a monotherapy for the treatment of recurrent/metastatic cervical cancer. The FDA has approved Tivdak under its Accelerated Approval Program, based on tumor response and the durability of said response.However, the approval for Tivdak came with a boxed warning for adverse reactions such as, ocular toxicity, peripheral neuropathy, hemorrhage, pneumonitis and embryo-fetal toxicity.Shares of Seagen have declined 9.2% so far this year against the industry’s rise of 0.9%.Image Source: Zacks Investment ResearchPer the company, over 14,480 new cases of invasive cervical cancer are likely to be diagnosed in the United States in 2021 with an expected 4,290 women dying from the disease. Hence, the approval for Tivdak should offer a new treatment option for the given patient population.Seagen’s portfolio currently comprises of three marketed drugs, namely, Adcetris, Padcev and Tukysa, which are approved for different cancer indications. The company generated net product revenues of $649.9 million in the first six months of 2021, reflecting 48% growth year over year. The latest approval for Tivdak has now added a fourth drug to Seagen’s portfolio, which should drive growth for the company in 2021 and beyond.Zacks Rank & Stocks to ConsiderSeagen currently carries a Zacks Rank #3 (Hold). Better-ranked stocks in the biotech sector include Vertex Pharmaceuticals Incorporated VRTX and Spero Therapeutics, Inc. SPRO, both carrying a Zacks Rank #2 (Buy) at present. You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.Vertex’s earnings estimates have been revised 10.2% upward for 2021 and 7.3% upward for 2022 over the past 60 days.Spero Therapeutics’ loss per share estimates have narrowed 8.2% for 2021 and 10.6% for 2022 over the past 60 days. 5 Stocks Set to Double Each was handpicked by a Zacks expert as the #1 favorite stock to gain +100% or more in 2021. Previous recommendations have soared +143.0%, +175.9%, +498.3% and +673.0%. 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.Today, See These 5 Potential Home Runs >>Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report Vertex Pharmaceuticals Incorporated (VRTX): Free Stock Analysis Report Seagen Inc. (SGEN): Free Stock Analysis Report Spero Therapeutics, Inc. (SPRO): Free Stock Analysis Report Genmab AS Sponsored ADR (GMAB): Free Stock Analysis Report To read this article on Zacks.com click here. Zacks Investment Research.....»»

Category: topSource: zacksSep 21st, 2021

Factors Setting the Tone for Carnival"s (CCL) Q3 Earnings

Carnival's (CCL) fiscal third-quarter performance is likely to have been positively influenced by the phased resumption of operations and portfolio-optimization initiatives. Carnival Corporation CCL is scheduled to report third-quarter fiscal 2021 business update on Sep 24. In the last reported quarter, the company reported a negative earnings surprise of 7.1%.How are Estimates Placed?The Zacks Consensus Estimate for fiscal third-quarter earnings is pegged at a loss of $1.44 per share, indicating an improvement of 34.3% from a loss of $2.19 reported in the year-ago quarter.For revenues, the consensus mark is pegged at nearly $713.9 million. The metric suggests an increase of 2,202.8% from the year-ago quarter’s figure.Carnival Corporation Price and EPS Surprise  Carnival Corporation price-eps-surprise | Carnival Corporation Quote Let's take a look at how things have shaped up in the quarter.Factors to NoteCarnival’s fiscal third-quarter performance is likely to have benefited from the phased resumption of operations. Given the advancement in vaccine treatments along with efforts to mitigate the spread of the virus, the company anticipates positive cash flow from the 27 ships (with guest cruise operations) in the to-be-reported quarter. Focus on cost reductions and streamlining of shoreside operations are likely to have boosted the company’s fiscal third-quarter bottom line.Despite capacity constraints, the company continues to focus on rebalancing its portfolio through ship exits, transfer and modifications to newbuilds. Initiatives toward capitalizing on pent-up demand coupled with structurally lower costs (resulting from the replacement of less-efficient vessels with more-efficient vessels) are likely to have benefited the company in the to-be-reported quarter.However, decline in occupancy levels due to social-distancing protocols coupled with restricted deployment options is likely to have negatively impacted the company’s performance in the fiscal third quarter. This along with a rise in capital expenditures in terms of restarting operations as well as progress payments on future newbuilds is likely to have dented the company’s fiscal third-quarter bottom line.What the Zacks Model UnveilsOur proven model predicts an earnings beat for Carnival this time around. The combination of a positive Earnings ESP and a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold) increases the odds of an earnings beat.Earnings ESP: Carnival has an Earnings ESP +9.27%. You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.Zacks Rank: The company has a Zacks Rank #3. You can see the complete list of today’s Zacks #1 Rank stocks here.Other Stocks Poised to Beat Earnings EstimatesHere are some other stocks from the Zacks Consumer Discretionary space that investors may consider as our model shows that these have the right combination of elements to post an earnings beat this quarter:Roku, Inc. ROKU has a Zacks Rank #1 and an Earnings ESP of +152%.Crocs, Inc. CROX sports a Zacks Rank #2 and has an Earnings ESP of +1.20%.Camping World Holdings Inc. CWH has a Zacks Rank #3 and an Earnings ESP of +10.55%. 5 Stocks Set to Double Each was handpicked by a Zacks expert as the #1 favorite stock to gain +100% or more in 2021. Previous recommendations have soared +143.0%, +175.9%, +498.3% and +673.0%. 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.Today, See These 5 Potential Home Runs >>Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report Carnival Corporation (CCL): Free Stock Analysis Report Crocs, Inc. (CROX): Free Stock Analysis Report Camping World Holdings Inc. (CWH): Free Stock Analysis Report Roku, Inc. (ROKU): Free Stock Analysis Report To read this article on Zacks.com click here. Zacks Investment Research.....»»

Category: topSource: zacksSep 21st, 2021

Vail Resorts (MTN) to Post Q4 Earnings: What"s in the Offing?

Vail Resorts' (MTN) fiscal fourth-quarter performance is likely to reflect strong contributions from the 2021-2022 North American ski season. Vail Resorts, Inc. MTN is scheduled to report fourth-quarter fiscal 2021 results on Sep 23, after the closing bell. In the last reported quarter, the company delivered an earnings surprise of 0.8%.How are Estimates Placed?The Zacks Consensus Estimate for fiscal fourth-quarter earnings is pegged at a loss of $3.57 per share, indicating an improvement of 6.5% from a loss of $3.82 reported in the year-ago quarter.Vail Resorts, Inc. Price and EPS Surprise  Vail Resorts, Inc. price-eps-surprise | Vail Resorts, Inc. Quote For revenues, the consensus mark is pegged at nearly $188.8 million. The metric suggests an increase of 144.5% from the year-ago quarter’s figure.Let's take a look at how things have shaped up in the quarter.Factors at PlayVail Resorts’ fourth-quarter fiscal 2021 performance is likely to reflect solid contributions from the 2021-2022 North American ski season. During the previous quarter’s earnings call, the company reported solid pass product sales (through Jun 1, 2021), up 50% in units and 33% in sales dollars from 2019 levels. The company expects the momentum to continue in the fiscal fourth quarter, primarily on the back of 20% price reduction in all pass products. This will likely lead to a stronger unit growth in new pass holders, higher pass renewals and increased trade up to higher-value passes. The Zacks Consensus Estimate for fiscal fourth-quarter resort revenues is pegged at $194 million, indicating growth of 152% year over year.Investments related to resources and technology (including staffing increases in call centers and self-service technology) along with infrastructure maintenance are likely to have benefitted the company in the to-be-reported quarter.However, pandemic-related capacity constraints and limitations — particularly in food and beverage and ski school — are likely to have negatively impacted the company’s ancillary lines of business in the fiscal fourth quarter. This along with a rise in wages is expected to have hurt the company’s fiscal fourth-quarter bottom line.What Our Model SaysOur proven model does not conclusively predict an earnings beat for Vail Resorts this time around. A stock needs to have a positive Earnings ESP and a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold) to beat earnings. But that's not the case here.Earnings ESP: Vail Resorts has an Earnings ESP of -9.03%. You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.Zacks Rank: The company has a Zacks Rank #4 (Sell).Stocks Poised to Beat Earnings EstimatesHere are some stocks from the Zacks Consumer Discretionary space that investors may consider as our model shows that these have the right combination of elements to post an earnings beat this quarter:Crocs, Inc. CROX, sports a Zacks Rank #1, and has an Earnings ESP of +1.20%. You can see the complete list of today’s Zacks #1 Rank stocks here.Roku, Inc. ROKU, has a Zacks Rank #1, and an Earnings ESP of +152%.Camping World Holdings Inc. CWH, has a Zacks Rank #3, and an Earnings ESP of +10.55%. Breakout Biotech Stocks with Triple-Digit Profit Potential The biotech sector is projected to surge beyond $2.4 trillion by 2028 as scientists develop treatments for thousands of diseases. They’re also finding ways to edit the human genome to literally erase our vulnerability to these diseases. Zacks has just released Century of Biology: 7 Biotech Stocks to Buy Right Now to help investors profit from 7 stocks poised for outperformance. Recommendations from previous editions of this report have produced gains of +205%, +258% and +477%. The stocks in this report could perform even better.See these 7 breakthrough stocks now>>Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report Crocs, Inc. (CROX): Free Stock Analysis Report Camping World Holdings Inc. (CWH): Free Stock Analysis Report Vail Resorts, Inc. (MTN): Free Stock Analysis Report Roku, Inc. (ROKU): Free Stock Analysis Report To read this article on Zacks.com click here. Zacks Investment Research.....»»

Category: topSource: zacksSep 21st, 2021

Factors Setting the Tone for Darden"s (DRI) Q1 Earnings

Darden's (DRI) fiscal first-quarter fiscal 2022 results are likely to reflect sequential improvement in same-restaurant sales across its brands. Darden Restaurants, Inc. DRI is scheduled to report first-quarter fiscal 2022 results on Sep 23, before the opening bell. In the last reported quarter, the company delivered an earnings surprise of 11.5%.Q1 EstimatesThe Zacks Consensus Estimate for fiscal first-quarter earnings is pegged at $1.63 per share, indicating growth of a whopping 191.1%, from the prior-year quarter. The consensus mark for revenues stands at $2.24 billion, suggesting an improvement of 46.5% from the year-ago reported figure.Factors to NoteDarden’s fiscal first-quarter performance is likely to have benefited from sequential improvement in same-restaurant sales across its brands on ramped-up vaccinations and increased dining room capacity. The company continues to gain from technological enhancements with regards to online ordering, introduction of To Go capacity management and Curbside I'm Here notification.Focus on sales-building initiatives, menu modifications, and streamlining of order pick-up process and payment methods might have favored the to-be-reported quarter's top line. However, rise in hourly wage rates and marketing expenses may have weighed on margins in the fiscal first quarter.The Zacks Consensus Estimate for sales at Olive Garden, Fine Dining, and LongHorn Steakhouse is pegged at $1,120 million, $136 million and $508 million, suggesting year-over-year growth of 42.1%, 63.9% and 34.7%, respectively. The same for Other business stands at $433 million, suggesting an improvement of 55.2% from the prior-year quarter.Darden Restaurants, Inc. Price and EPS Surprise Darden Restaurants, Inc. price-eps-surprise | Darden Restaurants, Inc. QuoteWhat the Zacks Model UnveilsOur proven model predicts an earnings beat for Darden this time around. The combination of a positive Earnings ESP and a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold) increases the odds of an earnings beat.The company has an Earnings ESP of +1.69% and a Zacks Rank #3. You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.You can see the complete list of today’s Zacks #1 Rank stocks here.Peer ReleasesBJ's Restaurants, Inc. BJRI reported second-quarter fiscal 2021 results, wherein both earnings and revenues surpassed the Zacks Consensus Estimate. Both the metrics increased year over year. The company’s adjusted earnings per share (EPS) of 26 cents beat the Zacks Consensus Estimate of 16 cents. In the prior-year quarter, the company had reported an adjusted loss of 99 cents per share. Quarterly revenues of $290.3 million outpaced the consensus mark of $285 million. The top line improved 126.7% year over year. The upside can primarily be attributed to the lifting of capacity and social-distancing restrictions, which boosted dining room capacity.McDonald's Corporation MCD reported second-quarter 2021 results, wherein both earnings and revenues surpassed the Zacks Consensus Estimate and increased year over year. The company reported adjusted EPS of $2.37, which outpaced the Zacks Consensus Estimate of $2.12. The bottom line soared 259.1% year over year. Quarterly revenues of $5,887.9 million beat the Zacks Consensus Estimate of $5,629 million. The figure surged 56.5% year over year. The top line benefited from an increase in global comparable sales.Starbucks Corporation SBUX reported solid third-quarter fiscal 2021 results, wherein both earnings and revenues surpassed the Zacks Consensus Estimate and increased year over year. The company reported adjusted EPS of $1.01, which beat the Zacks Consensus Estimate of 77 cents. In the prior-year quarter, the company had reported adjusted loss per share of 46 cents. Meanwhile, quarterly revenues of $7,496.5 million outpaced the Zacks Consensus Estimate of $7,243 million. The top line increased 77.6% from the year-ago quarter’s levels. The uptick was driven by growth in comparable store sales. Breakout Biotech Stocks with Triple-Digit Profit Potential The biotech sector is projected to surge beyond $2.4 trillion by 2028 as scientists develop treatments for thousands of diseases. They’re also finding ways to edit the human genome to literally erase our vulnerability to these diseases. Zacks has just released Century of Biology: 7 Biotech Stocks to Buy Right Now to help investors profit from 7 stocks poised for outperformance. Recommendations from previous editions of this report have produced gains of +205%, +258% and +477%. The stocks in this report could perform even better.See these 7 breakthrough stocks now>>Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report BJs Restaurants, Inc. (BJRI): Free Stock Analysis Report Starbucks Corporation (SBUX): Free Stock Analysis Report McDonalds Corporation (MCD): Free Stock Analysis Report Darden Restaurants, Inc. (DRI): Free Stock Analysis Report To read this article on Zacks.com click here. Zacks Investment Research.....»»

Category: topSource: zacksSep 21st, 2021

Taking It Easy Before Earnings

Taking It Easy Before Earnings With a fresh earnings season about to begin, stocks took a small step back from record highs on Monday as trading volume remains muted. The S&P ended three straight sessions of all time highs today, but it was only off by 0.02% to 4127.99. The Dow declined 0.16% (or about 55 points) to 33,745.40. Both of these indices established record highs last Friday. The NASDAQ slipped 0.36% (or about 50 points) to 13,850. One of the stocks going against the malaise today was graphics chip pioneer NVIDIA (NVDA), which jumped more than 5.6% after announcing its first CPU and an encouraging revenue outlook. Other big news on Monday was Microsoft (MSFT) making its second-biggest acquisition ever by picking up AI & speech technology company Nuance Communications (NUAN) for nearly $20 billion in an all-cash transaction. MSFT was only up 0.02%, but NUAN soared nearly 16%. But overall it was another quiet session. The slow trade we’ve been seeing for the past several sessions continued, though it didn’t keep the indices from securing solid performances last week. The NASDAQ jumped 3.1% in the previous five sessions, while the S&P was up 2.7% and the Dow increased 2%. Now it’s finally time to start earnings season. Investors are feeling pretty good after the recent jobs report and really appreciate Fed Chair Powell’s continued promises of super accommodation. And this feeling of optimism includes expectations for the first quarter. As Sheraz Mian said in his recent article titled “Looking Ahead to Big Banks’ Q1 Earnings”; he sees earnings growth of 20.4% for the quarter and revenue growth of 5.6%. The season, unofficially, gets started on Wednesday, when JPMorgan (JPM) goes to the plate, along with Wells Fargo (WFC) and Goldman Sachs (GS). Other major financial names will be reporting in the following two days before earnings season really picks up the pace next week. Today's Portfolio Highlights: Technology Innovators: It’s always fun when one of your portfolio positions becomes profitable, because Wall Street will suddenly pay it a lot more attention. That’s why Brian added Upwork (UPWK) on Monday. This provider of online recruitment services topped the Zacks Consensus Estimate in the past two quarters. Most importantly though, the recent beat was a penny profit that topped expectations by nearly 115%. Rising earnings estimates for this year and next made UPWK a Zacks Rank #2 (Buy). Estimates for 2021 are still at a loss, but it has narrowed significantly in the past several weeks. The editor was most encouraged by expectations for topline growth of 25% this year and more than 22% for next. Read the full write-up for a lot more on this new addition, including an overview of all positions in the portfolio. By the way, this service had a couple of the biggest performances on Monday with Criteo S.A. (CRTO, +4.5%) and Tesla (TSLA, +3.7%). Surprise Trader: Usually Dave doesn’t like buying huge household names for this portfolio, since smaller-cap stocks have more room to run. But he’s making an exception for Goldman Sachs (GS)... and it’s easy to see why. The financial powerhouse is a Zacks Rank #1 (Strong Buy) that’s part of a space (Financial – Investment Bank) in the top 2% of the Zacks Industry Rank. It has a VGM Composite Score of “A”, as well. In addition to this trifecta, GS also has a positive Earnings ESP of 3.83% for the quarterly report scheduled before the bell on Wednesday, April 14. The editor added GS on Monday with a 12.5% allocation, while also selling the rest of Rent-A-Center (RCII) for a 12.5% return in under six weeks. See the complete commentary for more. Income Investor: You might think that a pharma giant like AbbVie (ABBV) doesn’t have many opportunities for significant growth... but Maddy begs to differ. The company’s Humira arthritis drug continues finding new revenue flows, while there are promising drugs in the pipeline like Rinvoq and Skyrizi. However, the editor was most impressed with its “enticing” yield of 4.8% and a valuation that’s “too cheap to ignore”. Maddy added ABBV on Monday and sold Johnson & Johnson (JNJ) for 14.5%. JNJ is still a great name, but it doesn’t have as “juicy” of a dividend. See the full write-up for more. Options Trader: April options expire this Friday, so Kevin made several moves on Monday to give a few positions more time. First of all, the portfolio sold to close the April 100.00 Call in Yum! (YUM) for a 135.6% return. Having doubled the premium as planned, the editor bought to open an October 115.00 Call. He also sold to close April options in SS&C (SSNC) and Arthur J. Gallagher (AJG) for losses, but is giving them more opportunities by buying to open October Calls for each. Finally Lennox (LII) doesn’t have to worry about an impending expiration since it has a June Call, but the premium has doubled. Therefore, Kevin sold to close that June 310.00 Call for a 153.7% return and reinvested by buying to open a September 360.00 Call. Read the full write-up for specifics on all of today’s moves. Black Box Trader: The portfolio cashed in a huge winner as part of this week's adjustment, which included three changes in total and two double-digit profits. The stocks that were sold today included: • Abercrombie & Fitch (ANF, +54.3%) • Timken Steel (TMST, +12%) • Santander Consumer USA (SC, +8.6%) The new buys that replaced these names were: • ConocoPhillips (COP) • Dow (DOW) • ExxonMobil (XOM) Read the Black Box Trader’s Guide to learn more about this computer-driven service. Headline Trader: "There is an extreme amount of optimism baked into this market right now, and this week we will begin to find out if the market's euphoric valuations are justified. I have no doubt that we will get mixed results between sectors with disappointments and elation being balanced through the next month of quarterly results, either confirming optimistic price action or catalyzing a correction in the seemingly stretched markets. "There is so much positivity in the equity markets today that it makes me nervous. The primary thing to focus on during this upcoming earnings season is going to be forward guidance. Many companies will likely continue to abstain from providing this because of the still-elevated levels of uncertainty in the economy. When it is provided, I suspect it will be market moving for those stocks. "Earnings beats are expected as a bare minimum, with market euphoria peaking going into Q1 earnings. Any misses could be devastating for share prices. A beat may not even be enough, with investors & traders ready to pull the sell trigger at the first sign of weakness at these stretched levels. Don't be surprised if you see some profit-pulling on earnings beats, especially from this week's financial reports, with the big banks having had a glorious rally over the past 6 months." -- Dan Laboe Until Tomorrow, Jim Giaquinto Recommendations from Zacks' Private Portfolios: Believe it or not, this article is not available on the Zacks.com website. The commentary is a partial overview of the daily activity from Zacks' private recommendation services. If you would like to follow our Buy and Sell signals in real time, we've made a special arrangement for readers of this website. Starting today you can see all the recommendations from all of Zacks' portfolios absolutely free for 7 days. Our services cover everything from value stocks and momentum trades to insider buying and positive earnings surprises (which we've predicted with an astonishing 80%+ accuracy). Click here to "test drive" Zacks Ultimate for FREE >>  Zacks Investment Research.....»»

Category: topSource: zacksSep 21st, 2021

Sluggish Start to Retail Earnings Week

Sluggish Start to Retail Earnings Week Stocks finished last week on a roll with strong back-to-back performances after a stiff inflation-induced plunge, but the weekend really cooled things off and left the major indices with slight losses in a groggy Monday session. Meanwhile, earnings season moves toward its conclusion with some of the biggest retailers in the country scheduled to report in the next few days. It's been a truly fantastic season where more than 80% of companies beat earnings estimates… even if the market rarely rewarded them for the effort. On Monday, stocks were sluggish with tech again under pressure. The NASDAQ slipped 0.38% (or about 50 points) to 13,379.05. The index lost 2.4% last week, but that was after soaring approximately 3% on Thursday and Friday combined. The S&P slipped 0.25% to 4163.29, while the Dow was down 0.16% (or about 54 points) to 34,327.79. These indices were off 1.4% and 1.1%, respectively, last week. We’re coming back from a really volatile week, which saw inflation concerns pull everything down in the first three days (especially tech). The final two sessions saved some face for the market, though it was still solidly in the red over the five days.   Despite the bounce off oversold levels late last week, the market is still not comfortable with the recent CPI report. Consumer prices jumped 4.2% in April year over year, which surged past expectations of around 3.5%. That’s something this skittish market isn’t going to get over quickly, especially since this issue has been its main concern with the pandemic now on its last legs. But this week won’t be all about inflation. Earnings season still has some work to do, especially when it comes to the retailers. Tomorrow will be one of those busy days with giants like Walmart (WMT) and Home Depot (HD) going to the plate before the bell. Department store staple Macy’s (M) is also scheduled for tomorrow ahead of the open. For more on this Retail Week, check out Headline Trader editor Dan Laboe’s new article titled: “What to Expect from Retail Earnings Week”.  Today's Portfolio Highlights: Surprise Trader: For the second session in a row, department store giant Dillard’s (DDS) was easily the top performer among all ZU names. It jumped 12.8% on Monday after reporting strong quarterly results last week that included a more than 400% positive surprise. So you can see why Dave stuck with the same industry today by adding Kohl’s (KSS). This Zacks Rank #1 (Strong Buy) has a positive Earnings ESP of more than 155% for the quarter coming before the bell this coming Thursday, May 20. The editor added KSS today with a 12.5% allocation, while also selling Tractor Supply (TSCO) for 3.1% in a month to free up some space for the remainder of the season. Read the complete commentary for more on today’s action. By the way, DDS is now the best performer over the past 30 days as well with a gain of 34.9%. Technology Innovators: For the past several months, Alpha and Omega Semi (AOSL) has been trending lower. However, Brian thinks this stock is poised for a rebound, especially if the chip shortage is about to end (as he expects). AOSL is a Zacks Rank #1 (Strong Buy) that has beaten the Zacks Consensus Estimate in each of the past four quarters with an average surprise of 33% in that time. Looking forward, earnings estimates have been advancing across the board with analysts calling for growth of 200%+ for this year. Despite this growth, the valuation still looks attractive and margins have been on the rise for the past three quarters. Brian added AOSL on Monday before the next move higher, while also selling Upwork (UPWK) after it slipped to a Zacks Rank #5 (Strong Sell). See the complete commentary for more on today’s action. Blockchain Innovators: There’s no need to explain what Coinbase (COIN) has to do with blockchain technology. This pure-play is the country’s largest cryptocurrency exchange, trading about 50 different digital assets. Dave wanted to add COIN ever since its IPO, and now has a fantastic opportunity after the recent selloff. The stock is currently trading below its IPO price, which means it has plenty of room to run higher. “As bitcoin and other currencies tumble, this feels like a bit of a contrarian move... which I am all for,” said the editor. Read more in the full write-up. TAZR Trader: Throughout this “software slide and Bitcoin bludgeoning”, Square (SQ) is holding at around $200. Kevin has been a fan of this innovative payment processor for a while now, and considers the stock to be a deal at this price. Therefore, he added more to SQ once again on Monday. The portfolio originally bought this position back in November and added to it twice since then. Now it's three times! Read the complete commentary to learn about the five reasons why the editor made this move. Black Box Trader: This week's adjustment swapped out four stocks. The names that were sold today included: • CNH Industrial (CNHI, +2.7%) • CommScope (COMM, +0.7%) • Bloomin Brands (BLMN) • Fluor (FLR) The new buys that filled these spots were: • Sally Beauty (SBH) • Timken Steel (TMST) • U.S. Steel (X) • U.S. Foods (USFD) Read the Black Box Trader’s Guide to learn more about this computer-driven service. Headline Trader: "The markets are readjusting for the new normal, and stock picking has never been more important in this highly uncertain environment. Still, you need to give the market some time to work through macro-economic issues such as tax uncertainties and where the Federal Reserve stands with interest rates as core inflation spreads. It looks like 2021 may be the year that big tech underperforms the S&P 500. "It feels like we are experiencing a goldilocks stock market where equities are not too hot and not too cold, but just right. This is causing the post-earnings market consolidation that we are seeing." -- Dan Laboe Have a Good Evening, Jim Giaquinto Recommendations from Zacks' Private Portfolios: Believe it or not, this article is not available on the Zacks.com website. The commentary is a partial overview of the daily activity from Zacks' private recommendation services. If you would like to follow our Buy and Sell signals in real time, we've made a special arrangement for readers of this website. Starting today you can see all the recommendations from all of Zacks' portfolios absolutely free for 7 days. Our services cover everything from value stocks and momentum trades to insider buying and positive earnings surprises (which we've predicted with an astonishing 80%+ accuracy). Click here to "test drive" Zacks Ultimate for FREE >>  Zacks Investment Research.....»»

Category: topSource: zacksSep 21st, 2021

Stocks Come Off Lows While Waiting for Jobs Report

Stocks Come Off Lows While Waiting for Jobs Report SPECIAL ALERT: Remember, we need your input to make next week’s new Zacks Ultimate Strategy Session episode the best it can be. There are two ways you can participate: 1) Zacks Mailbag: In this regular segment, Kevin Matras answers your questions ranging from current market conditions, general investing wisdom, usage of the Zacks Rank or any resources of Zacks.com and more. Pretty much anything goes. 2) Portfolio Makeover: Sheraz Mian and Kevin Cook review a customer portfolio to give feedback for improvement. No need to send us personal information such as dollar value of holdings. Simply email us with all of the tickers you own. Just make sure to email your submissions for either one, or both, by tomorrow morning, June 4. Email now to mailbag@zacks.com. The major indices were all in the red on Thursday, but they came well off the morning lows amid solid economic data released today and before the big monthly jobs report scheduled for tomorrow. A potential compromise on the corporate tax rate also helped the rebound. The Dow’s five-day winning streak has come to an end, but it was still the best-performing index with a loss of only 0.07% (or about 23 points) to 34,577.04. It had been off by more than 250 points earlier in the session. The S&P also had a nice comeback and finished lower by 0.36% to 4192.85. Unfortunately, the NASDAQ didn’t have quite as dramatic a bounce as tech lagged once again. The index slipped by 1.03% (or nearly 142 points) to 13,614.51. Tomorrow’s Government Employment Situation report may be the biggest jobs report of the month… but it’s far from the only one. We had two other such releases on Thursday and they were both noteworthy. The ADP employment report showed that private payrolls added an impressive 978,000 jobs in May, squashing expectations of less than 700K and the previous month’s downwardly-revised total of 654K. As you’d expect in an economy that’s finally reopening, the leisure & hospitality space is making up some lost ground by adding more than 400K jobs. But there’s more. Jobless claims reached another pandemic milestone by moving under 400K at 385,000, which was slightly better than expectations and marked a fifth straight decline. Meanwhile, ISM Services jumped to 64 in May, which is far into expansion territory above 50. The print was better than April’s 62.7 and expectations at just over 63. Ironically (but not surprisingly) these strong reports were probably a big factor in the market’s morning malaise. After tomorrow’s jobs report, the market’s obsession will switch to the next Fed meeting scheduled for June 15-16. These strong results provide even more fuel to nervous investors’ concerns that the Committee may have to change policy sooner than expected. The market fortunately simmered down as the day progressed. And it got a big boost from a news report that the Biden Administration may offer a 15% tax floor instead of hiking the corporate tax rate to 28%. It’ll be interested to see where this goes in the coming weeks as Washington attempts to pass an infrastructure bill. Well… here we go! The jobs report comes out tomorrow. We probably won’t have anything nearly as dramatic as last month’s miss of approximately 700K, but it does have the potential to be a market mover.  As of this moment, the Dow is up slightly in this abbreviated week heading into Friday, while the other two major indices are in the red. Today's Portfolio Highlights: Home Run Investor: It’s time to get more exposure to the oil patch as crude prices continue to climb, so Brian added PDC Energy (PDCE) on Thursday. This independent upstream operator explores for, develops and produces natural gas, crude oil and natural gas liquids. The company has beaten the Zacks Consensus Estimate in each of the last four quarters and amassed an average surprise of 79% in that time. Rising earnings estimates have made PDCE a Zacks Rank #1 (Strong Buy). Looking forward, analysts are calling for topline growth of 24% this year and 11% next year. In order to make room for PDCE, the editor decided to sell MarineMax (HZO) after a sharp pullback, which protects a 42% profit in less than seven months. Read the full write-up for more on all of today’s moves. Counterstrike: Business is picking up for Ulta Beauty (ULTA), which recently reported a 113% positive surprise and raised its fiscal 2021 guidance. The stock just filled its post-earnings gap today but Jeremy thinks it will hold support and continue its move upwards. This Zacks Rank #1 (Strong Buy) is an obvious reopening play, so the editor added it on Thursday with a small 4% allocation. If the selling continues but the support levels hold, he’ll add more of ULTA. Read the full write-up for the specifics on this move. Headline Trader: The first quarter report from Goldman Sachs (GS) was so “unbelievable” that Dan wasted no time and added this financial giant on the same day of its release. And why shouldn’t he? The company beat the Zacks Consensus Estimate by 90% and grew sales by nearly 160% year over year. That was back in mid April. Now, GS is nearing the editor’s Fibonacci-derived price target around $391 and the relative strength index has reached overbought territory. He thinks this is a great time to “scale out” of the stock, so half of the position was sold on Thursday for a more than 16% return in less than two months. Dan is leaving the other half in the portfolio as he still thinks GS has upside potential. Read more in the full write-up. All the Best, Jim Giaquinto Recommendations from Zacks' Private Portfolios: Believe it or not, this article is not available on the Zacks.com website. The commentary is a partial overview of the daily activity from Zacks' private recommendation services. If you would like to follow our Buy and Sell signals in real time, we've made a special arrangement for readers of this website. Starting today you can see all the recommendations from all of Zacks' portfolios absolutely free for 7 days. Our services cover everything from value stocks and momentum trades to insider buying and positive earnings surprises (which we've predicted with an astonishing 80%+ accuracy). Click here to "test drive" Zacks Ultimate for FREE >>  Zacks Investment Research.....»»

Category: topSource: zacksSep 21st, 2021

Stocks Now Up for the Week After Second Day of Gains

Stocks Now Up for the Week After Second Day of Gains The market has now recovered all of Monday’s selloff (and then some), as stocks rose for a second consecutive session on Wednesday and are now in positive territory for the week. Meanwhile, earnings reports continue to roll in. Remember how dire everything felt two days ago? The Dow plunged over 700 points on rising covid rates due to the Delta variant. The market acted like we were on the precipice of another shutdown, but savvy investors like our editors knew to keep their cool. "As terrible as Monday morning was, that has all but been erased. All-time highs are teasing us all," said Dave Bartosiak in Surprise Trader. "We will see if individual stocks get resistance. I would hate to be a bear that went all-in short on Monday morning. Their covering will be what propels the market higher in the days to come." The Dow jumped 0.83% (or about 286 points) to 34,798. That marks a two-day surge of more than 835 points, so the index has reclaimed all of Monday’s 725-point selloff and then added more than 100 points. That’s a fantastic response to the worst single-session of 2021 so far. The NASDAQ, though, had the best performance by adding 0.92% (or around 133 points) to 14,631.95, while the S&P advanced 0.82% to 4358.69. Shares of Netflix (NFLX) were down more than 3.2% in its first trading day following its second-quarter results last night. The streaming pioneer beat revenue and paid subscriber growth expectations, but earnings missed and the outlook for Q3 was on the soft side. NFLX was the first FAANG to report. The rest of them come next week. The vast major of reports so far have beaten expectations. One of the big outperformances today came from Johnson & Johnson (JNJ), the diversified healthcare giant that released a single-doze covid vaccine. The company’s second-quarter earnings beat the Zacks Consensus Estimate by more than 8% while sales of $23.3 billion also topped our expectation. Shares of JNJ were up 0.62% today.   On Thursday, we’ll be getting reports from Intel (INTC), Abbott Labs (ABT), Danaher (DHR), Snap (SNAP) and dozens of others. Jobless claims will also be released tomorrow after reaching a new pandemic low of 360K last week. Today's Portfolio Highlights: Surprise Trader: Of all the regions to have some banking exposure, Dave is most interested in the Southeast. People are moving in droves to places like Florida, just like the editor did himself a few years back. So he has first-hand knowledge of the potential down there, which is why he added Trustmark (TRMK) on Wednesday. This Zacks Rank #2 (Buy) is part of the Banks – Southeast space, which is in the top 23% of the Zacks Industry Rank. The company topped expectations for four straight quarters now and has a positive Earnings ESP of 9.2% for its next report after the bell on Tuesday, January 27. Dave added TRMK today with a 12.5% allocation, while also selling Controladora Vuela (VLRS) for a slight loss. The complete commentary has more on today’s moves. By the way, Dillard's (DDS) was one of the top performers among all ZU names today with a rise of 7.3%. TAZR Trader: You can’t say that Ford (F) is ‘set in its ways’. The automaker refuses to let Tesla (TSLA) have all the fun in the electric vehicle space, which is why its pushing the F-150 Lightning EV truck. If the company can get truck owners to invest in an EV instead of the traditional gas guzzler, then it will open up a whole new market that could really challenge TSLA in the commercial truck market. F also formed a partnership to introduce self-driving vehicles on Lyft (LYFT)! Kevin decided to buy F on Wednesday, as sales are expected to grow 20% to $152 billion next year. Plus, it’s a better valuation than the “bloated” TSLA. The editor added to his Baidu (BIDU) position, as well, because this Chinese autonomous driving and AI company is less threatening to the CCP. He also thinks “the risk of US delisting is overblown”. Read the full write-up for more.   Commodity Innovators: Shares of APA Corp. (APA) pulled back 30% from its 2021 highs, but the rally in crude generated an aggressive bounce. Jeremy decided this was a good time to buy this Zacks Rank #1 (Strong Buy) independent energy company, which is engaged in the exploration, development and production of natural gas, crude oil and natural gas liquids. He sees APA as a mid-term holding. The editor also sold IPath Series B Bloomberg Livestock Subindex Total Return ETN (COW) and IPath Series B Bloomberg Cotton Subindex Total Return ETN (BAL) for a slight profit and slight loss, respectively, over the past four months. Read the full write-up for more on today’s action. Stocks Under $10: Later this month, Cassava Sciences (SAVA) is scheduled to provide an update on its lead candidate at the Alzheimer's Association International Conference. Brian thinks this progress report could "drive the stock well into the triple digits". But its not just waiting around. Shares of SAVA soared just under 30% on Wednesday to easily become the best performer among all ZU names. It's now among the biggest gainers over the past month with a rise of 31.1%. Most impressively though, SAVA has soared 1500% in the portfolio since being added less than seven months ago. All the Best, Jim Giaquinto   Recommendations from Zacks' Private Portfolios: Believe it or not, this article is not available on the Zacks.com website. The commentary is a partial overview of the daily activity from Zacks' private recommendation services. If you would like to follow our Buy and Sell signals in real time, we've made a special arrangement for readers of this website. Starting today you can see all the recommendations from all of Zacks' portfolios absolutely free for 7 days. Our services cover everything from value stocks and momentum trades to insider buying and positive earnings surprises (which we've predicted with an astonishing 80%+ accuracy). Click here to "test drive" Zacks Ultimate for FREE >>  Zacks Investment Research.....»»

Category: topSource: zacksSep 21st, 2021

Mixed Monday with Stocks Slipping from Record Highs

Mixed Monday with Stocks Slipping from Record Highs SPECIAL ALERT: Remember, the latest episode of the Zacks Ultimate Strategy Session will be available for viewing no later than this Wednesday, August 11. Kevin Matras, David Bartosiak, Neena Mishra, CFA, FRM, and Sheraz Mian will cover the investment landscape from several angles in this informative event. Don’t miss your chance to hear: ▪ Sheraz and Neena Agree to Disagree on whether inflation worries are overblown ▪ Kevin answers your questions in Zacks Mailbag ▪ Sheraz and David choose one portfolio to give feedback for improvement ▪ And much more So be sure to mark your calendar then log on to Zacks.com and bookmark this page.                        SPECIAL ALERT #2: Last year’s IPOs surged as much as +299% within the first two months. And so far in 2021, the IPO market has been on fire and momentum doesn’t look to be slowing down. Now with record-setting amounts of cash flooding IPOs, investors who get in on the ground floor could be poised for significant gains. That’s why in our newest Special Report, 5 Hottest IPOs to Watch in 2021, Stock Strategist Madeleine Johnson breaks down 5 top companies that could soar when they go public. Log on to Zacks.com to read the report now. Excitement over the impressive jobs report waned a bit over the weekend, making the mixed Monday session a mirror image of Friday’s. Meanwhile, investors are preparing for some noteworthy inflation indicators later this week as earnings season and concerns over the delta variant continue. When last we left you, the market was celebrating a much better than expected Government Employment Situation report. To recap: the economy added 943K jobs in July, which easily beat expectations and drove the unemployment rate down to 5.4%. The end result was new records for two of the major indices, while the NASDAQ suffered a loss. But the reverse happened on Monday. The tech heavy index was the only one to finish in the green this time, as the NASDAQ rose 0.16% (or about 24 points) to 14860.18 (which is now just 35 points from a record). Meanwhile, the Dow was off 0.30% (or around 106 points) to 35,101.85 and the S&P slipped 0.09% to 4432.35. These latter two indices both reached new highs on Friday in the aftermath of the jobs report. Investors were so happy with the 943K print that they focused more on the economic recovery than the Fed reaction. Recovery stocks were on the rise, while tech took a backseat. But now we’re worrying again about the delta variant, a sooner-than-expected taper announcement and rising inflation. Fortunately, we also have a very solid earnings season that will continue this week and next. The big news over the next few days will be inflation, as the CPI is scheduled for Wednesday and the PPI is set for Thursday. These reports were both higher than expected when last reported in mid-July. The CPI rose 5.4% (vs. expectations of 5%) and the PPI was up 1% (vs expectations of 0.6%). The Fed says this rising inflation is only transitory, so these upcoming reports will be interesting. It looks like another busy week ahead... Today's Portfolio Highlights: Insider Trader: Prices for chemicals and energy have come down from recent highs, but these areas should be big winners as the economy continues to reopen. Perhaps that’s why a director at DuPont (DD) bought 5,000 shares last week on August 5. Shares of this large-cap specialty chemicals company are down 8% in the last three months. Tracey thinks this insider buy is a “strong statement” since this director didn’t buy at all in 2020 and already is given thousands of shares in awards. The editor added DD on Monday with a 10% allocation, while also selling 8x8 (EGHT) after running in place since its quarterly report. Read the full write-up for more. By the way, this portfolio had a top performer today as Aspen Group (ASPU) rose 4.5%. Counterstrike: Here’s a couple classic counterstrike plays to begin the new week. Jeremy added Groupon (GRPN), a website that specializes in daily discount deals, and The Container Store (TCS), a retailer that specializes in storage and organization products. Both of these names came off their post-earnings highs and are now right in the editor’s wheelhouse. GRPN beat by 197% in its most recent quarter and has potential to bounce after plunging almost 20 points lower. TCS is a Zacks Rank #1 (Strong Buy) that demolished earnings expectations by 300%... and then sold off before stabilizing around $11. Jeremy added GRPN with a 5% allocation and TCS with a 10% allocation. Read the full write-up for more specifics on these moves. Surprise Trader: Morgan Stanley just initiated coverage on Maxeon Solar (MAXN), a designer, manufacturer and seller of solar panels. That’s part of the reason why Dave added this name on Monday, but he’s been watching this stock for a while now and wants to get in before its next quarterly report. The company has an Earnings ESP of 8.3% for the release coming after the bell on Thursday, August 12. MAXN beat by nearly 27% last time and is expected to generate earnings and sales growth of 49.3% and 60%, respectively, next year. The editor added MAXN today with a 12.5% allocation, while also getting out of Ruth’s Hospitality (RUTH) to make room for more ideas. Read the full write-up for more. Black Box Trader: The portfolio cashed in a double-digit winner among four overall changes for this week's adjustment. The stocks that were sold today included: • Nucor Corp. (NUE, +20.5%) • Antero Resources (AR) • OneMain Holdings (OMF) • Ford (F) The new buys that filled these spots were: • CBRE Group (CBRE) • Mattel (MAT) • Option Care Health (OPCH) • Textron (TXT) Read the Black Box Trader’s Guide to learn more about this computer-driven service. Until Tomorrow, Jim Giaquinto Recommendations from Zacks' Private Portfolios: Believe it or not, this article is not available on the Zacks.com website. The commentary is a partial overview of the daily activity from Zacks' private recommendation services. If you would like to follow our Buy and Sell signals in real time, we've made a special arrangement for readers of this website. Starting today you can see all the recommendations from all of Zacks' portfolios absolutely free for 7 days. Our services cover everything from value stocks and momentum trades to insider buying and positive earnings surprises (which we've predicted with an astonishing 80%+ accuracy). Click here to "test drive" Zacks Ultimate for FREE >>  Zacks Investment Research.....»»

Category: topSource: zacksSep 21st, 2021

Stocks Remained Hot in August

Stocks Remained Hot in August SPECIAL ALERT: The September episode of the Zacks Ultimate Strategy Session will be available for viewing no later than Thursday, September 9. Kevin Matras, Kevin Cook, Daniel Laboe, Dr. John Blank and Sheraz Mian will cover the investment landscape from several angles in this popular event. Don’t miss your chance to hear: ▪ Kevin Cook and John Agree to Disagree on where the S&P 500 will end in 2021 ▪ Kevin Matras answers your questions in Zacks Mailbag ▪ Sheraz and Daniel choose one portfolio to give feedback for improvement ▪ And much more Remember, we need your input. Please submit your questions for Zacks Mailbag and Portfolio Makeover by Thursday morning, September 2. Email now to mailbag@zacks.com. Then log on to Zacks.com and bookmark this page. The last day of August was certainly not representative of the full month. Stocks pulled back from record highs and finished in the red on Tuesday but were solidly higher over the past 31 days. The S&P climbed 2.9% for its seventh straight monthly gain, while the Dow managed to rise 1.2%. The biggest winner in August, though, was easily the NASDAQ, which soared 4% as investors were much kinder to the safe haven of tech as the delta variant complicated the recovery.   “For even greater perspective, since the pandemic lows in late March of last year (that’s 17 months), the S&P has been up in all but 3 of those months. That means the S&P has been up in 14 of the last 17 months. Pretty incredible,” said Kevin Matras in Options Trader. “And with the economy still growing, the jobs market still expanding, and with intertest rates still near zero (and likely to stay that way for the foreseeable future), it looks like there’s a lot more upside to go.” But for Tuesday, the S&P slipped 0.13% to 4522.68, while the Dow was off 0.11% (or about 39 points) to 35,360.73. The NASDAQ outperformed its counterparts like it did all month, but still finished in the red by 0.04% (or around 6 points) to 15,259.24. The S&P and NASDAQ had back-to-back record highs coming into the session and have been in the green for seven of the past nine days. Given such success during challenging times, it was no surprise to see stocks take a step back. Of course, it didn’t help that the Conference Board’s consumer confidence index slipped to 133.8 in August, which was well short of expectations at 123 and July’s print of 125.1. The data suggests that the delta variant and rising inflation are impacting consumer decisions. But this is a week full of economic data. The ISM manufacturing and construction spending reports are scheduled for tomorrow. And Wednesday also brings the ADP employment report, which is the precursor for the Government Employment Situation on Friday. Today's Portfolio Highlights: Stocks Under $10: A number of small-cap biotech names are starting to recover after slipping this summer. One of these rebounds is Flexion Therapeutics (FLXN), a specialty pharmaceutical company that develops and sells pain therapies. It has one approved drug called Zilretta to treat osteoarthritis pain in the knee. And they’re expanding the use of the drug to other areas of the body, such as the shoulders. FLXN also has other indications in the pipeline. Earnings estimates are on the rise, but the biotech is still not making money yet. However, revenue growth was 82% year over year in the most recent quarter, while price to sales of 2.8x is pretty low for an early stage biotech. Read the full write-up for more. In other news, this portfolio had two of the best performers among all ZU names today as GT Biopharma (GTBP) rose 6.1% and Cross Country Healthcare (CCRN) advanced 5.1%. Surprise Trader: Buying a property is one thing, but maintaining it is something completely different. That’s where a company like ABM Industries (ABM) comes in. This Zacks Rank #2 (Buy) provides integrated facility solutions, such as janitorial, energy, electrical & lighting, landscape & turf, HVAC and even parking, among many other services. It has beaten the Zacks Consensus Estimate in three of the past four quarters, and now has a positive Earnings ESP of 2.7% for its next report after the bell on Wednesday, September 9. Dave added ABM on Tuesday with a 12.5% allocation, while also selling Abercrombie & Fitch (ANF). See the complete commentary for more on today’s action. Insider Trader: It’s been less than a week since Digital Turbine (APPS) was added to the portfolio, but this provider of products and solutions to mobile operators is already a top mover. The stock was easily the best performer among all ZU names on Tuesday by climbing more than 14% after news that it would join the S&P MidCap 400 index. Tracey picked up APPS last Friday after three directors added during August.   Zacks Short Sell List: The portfolio cashed in a double-digit winner on Tuesday while swapping out three positions for this week's adjustment. The stocks that were short-covered today included: • Peloton (PTON, +16.6%) • Autodesk (ADSK, +4.8%) • The AZEK Co. (AZEK) The new buys that replaced these names were: • Intuit (INTU) • JD.com (JD) • StoneCo (STNE) Learn more about this emotion-free portfolio that takes advantage of falling and volatile markets by reading the Short Sell List Trader Guide. Headline Trader: "We are entering the historically weakest month of the year for investments. The S&P 500 has, on average, surrendered about 0.7% of its value in September over the past 4 decades of trading (2019 was no exception with a 4.2% drop). "This doesn't mean that we are guaranteed to lose ground in this upcoming month, but it does raise the odds of a broader market decline. Market participants have been trading on self-fulfilling prophecies since the pandemic began, but will September mark a deviation from this trend?" -- Dan Laboe See You in September, Jim Giaquinto Recommendations from Zacks' Private Portfolios: Believe it or not, this article is not available on the Zacks.com website. The commentary is a partial overview of the daily activity from Zacks' private recommendation services. If you would like to follow our Buy and Sell signals in real time, we've made a special arrangement for readers of this website. Starting today you can see all the recommendations from all of Zacks' portfolios absolutely free for 7 days. Our services cover everything from value stocks and momentum trades to insider buying and positive earnings surprises (which we've predicted with an astonishing 80%+ accuracy). Click here to "test drive" Zacks Ultimate for FREE >>  Zacks Investment Research.....»»

Category: topSource: zacksSep 21st, 2021

S&P, NASDAQ Close at Record Highs Ahead of Jobs Report

S&P, NASDAQ Close at Record Highs Ahead of Jobs Report The market may be a bit nervous about the jobs report tomorrow, but that didn’t keep stocks from continuing to grind higher on Thursday and set a couple new closing highs. A better-than-expected jobless claims report helped keep things in the green before the big event. The S&P rose 0.28% to 4535.95 and the NASDAQ advanced 0.14% (or nearly 22 points) to 15,331.18, which marks record closing highs for both indices. They had both made history this past Monday as well in the wake of Fed Chair Jerome’s Powell’s comments at the virtual Jackson Hole meeting. But the biggest gainer on Thursday was the Dow, which hasn’t come along on the record-breaking ride but advanced by 0.37% (or more than 130 points) in the session to 35,443.82. The result snapped three days of losses. Just like last week, the big news comes on Friday with the Government Employment Situation scheduled for release tomorrow morning. Expectations are for approximately 720K jobs being added, which would be a step down from the previous month’s blockbuster result of 943K. However, a report in that neighborhood or better might be the final straw that starts the Fed to scale back on its super easy monetary policy. But, as highlighted in the Jackson Hole remarks last Friday, a tightening of the monthly bond purchases does not mean that interest rate hikes are close behind. "We will get the jobs number tomorrow, which will give the Fed an idea on where we are on unemployment. This number will be an indicator of how quickly the Fed will both taper and raise rates," said Jeremy Mullin in Counterstrike. "The expectations is that tapering will be moderate and the market is ok with that. Rising rates are well into the future, but a hot number could change that idea." But let’s not get ahead of ourselves. Instead, let's focus on the weekly jobless claims, which provided a nice appetizer for tomorrow’s number. The print came in at 340K, slightly better than expectations at 345K and marking a new pandemic-era low. It was a welcomed bounce back from yesterday’s disappointing ADP employment report, which stated that private payrolls added only 374K jobs last month. The result was well off of expectations for more than 600K. But neither of these reports should be considered a harbinger for what’s coming tomorrow. So get ready for a potentially hectic session before the long Labor Day weekend.   Today's Portfolio Highlights: Blockchain Innovators: Sometimes it’s a surprise to find out how a company employs blockchain technology, and then other times its self-evident. You can put ScanSource (SCSC) in the latter camp. It’s a value-added distributor of specialty technologies, including automatic identification and point-of-sale products, as well as business telephone products. For a company that develops new technologies, blockchain is essential. And it’s certainly been working for SCSC. The Zacks Rank #2 (Buy) topped the Zacks Consensus Estimate for five straight quarters now. EPS growth for this year is forecasted at 14.6%, while next year should rise to 17.7%. If the earnings trend continues, Dave wouldn’t be surprised to see SCSC get back to 2017 highs near $45. The editor also sold Air Transport Services (ATSG) today for 37.9% to make room for new opportunities. Read the full write-up for more on today’s moves.   Commodity Innovators: The portfolio added Cabot Oil & Gas Corp. (COG) and Rayonier (RYN) on Thursday. COG is a Zacks Rank #1 (Strong Buy) natural gas play, which should benefit from higher prices in the winter months. It has a great-looking chart and a 2.7% dividend. RYN is a timberland REIT that held up well during the lumber selloff and beat the Zacks Consensus Estimate by 120% last quarter. This Zacks Rank #2 (Buy) has a dividend of almost 3% and should benefit on any rebound in lumber prices. Jeremy considers COG to be a mid-term stock, while RYN is a long-term. Read the full write-up for more specifics on these moves. Options Trader: Coming out of the pandemic, sales at American Express (AXP) have been slower than other payment processors. “I think its top heavy right now,” said Kevin. “And their chart suggests it might be getting tired.” Therefore, the editor bought to open a December 160.00 Put in AXP. He notes that this is a riskier trade, so use caution and get all the specifics on this move in the complete commentary. Surprise Trader: Taking some profits from a soaring stock is never a bad idea, so Dave sold half of DICK’S Sporting Goods (DKS) on Thursday for a nice return of more than 35% in just two weeks. On August 25, the company reported its fifth straight positive surprise (and 15th beat out of past 16 quarters) and raised its fiscal 2021 view. Now the portfolio gets a nice profit and lets the rest run to harness any further upswings. The editor also sold all of sidewinder Ulta Beauty (ULTA) for 1.6% in a little over a week and all of Designer Brands (DBI) since “the sellers have taken control”.   Headline Trader: After breaking Dan’s price target this morning, the editor decided to sell Equinix (EQIX) for a more than 35% return in less than six months. Furthermore, tomorrow’s jobs report presents “a slippery slope” for the world’s largest data center REIT, since it is inversely correlated to interest rates. The editor also got out of Virtu Financial (VIRT) after it broke through a critical support level. Zacks Top 10 Stocks: This portfolio had the best performer among all ZU names on Thursday as Quanta Services (PWR) climbed approximately 12%. The company announced today that it entered into a definitive agreement to acquire Blattner Holding Company, a leading utility-scale renewable energy infrastructure solutions provider. The deal would increase PWR’s exposure to renewable energy markets, such as wind, solar and energy storage. PWR is a Zacks Rank #2 (Buy) provider of specialty contracting services, and one of the largest contractors serving the transmission and distribution sector of the North American electric utility industry. It is the second-best performer in the portfolio with a gain of nearly 67% since being added on January 4. All the Best, Jim Giaquinto Recommendations from Zacks' Private Portfolios: Believe it or not, this article is not available on the Zacks.com website. The commentary is a partial overview of the daily activity from Zacks' private recommendation services. If you would like to follow our Buy and Sell signals in real time, we've made a special arrangement for readers of this website. Starting today you can see all the recommendations from all of Zacks' portfolios absolutely free for 7 days. Our services cover everything from value stocks and momentum trades to insider buying and positive earnings surprises (which we've predicted with an astonishing 80%+ accuracy). Click here to "test drive" Zacks Ultimate for FREE >>  Zacks Investment Research.....»»

Category: topSource: zacksSep 21st, 2021