We use cookies to understand how you use our site and to improve your experience. This includes personalizing content and advertising. To learn more, click here. By continuing to use our site, you accept our use of cookies, revised Privacy Policy and Terms of Service.
You are being directed to ZacksTrade, a division of LBMZ Securities and licensed broker-dealer. ZacksTrade and Zacks.com are separate companies. The web link between the two companies is not a solicitation or offer to invest in a particular security or type of security. ZacksTrade does not endorse or adopt any particular investment strategy, any analyst opinion/rating/report or any approach to evaluating individual securities.
If you wish to go to ZacksTrade, click OK. If you do not, click Cancel.
The Zacks Analyst Blog Highlights: Deere, LyondellBasell, Interactive Brokers Group, Capital One Financial Corporation and Weyerhaeuser
Read MoreHide Full Article
For Immediate Release
Chicago, IL – March 1, 2021 – Zacks.com announces the list of stocks featured in the Analyst Blog. Every day the Zacks Equity Research analysts discuss the latest news and events impacting stocks and the financial markets. Stocks recently featured in the blog include: Deere & Company (DE - Free Report) , LyondellBasell Industries N.V. (LYB - Free Report) , Interactive Brokers Group, Inc. (IBKR - Free Report) , Capital One Financial Corporation (COF - Free Report) and Weyerhaeuser Company (WY - Free Report) .
Here are highlights from Friday’s Analyst Blog:
Top 5 Corporate Giants Flying High Through a Volatile February
February is turning out to be extremely volatile with just a day of trading left. In the first two weeks of this month, Wall Street's northbound journey continued smoothly. However, the problem started in the beginning of the second half of February due to a sudden spike in sovereign bond yields.
In the third week, out of the three major indexes, the S&P 500 and the Nasdaq Composite ended in the red while the Dow managed to gain marginally. Meanwhile, the Dow, the S&P 500 and the Nasdaq Composite have dropped 0.3%, 2% and 5.4%, respectively, so far this week. Moreover, the market's volatility index — CBOE VIX — skyrocketed 44.7% in the past eight trading days.
However, unperturbed by the market's instability, several stocks have skyrocketed in February. A handful of these are currently Zacks top-ranked with more upside left for 2021. Investment in these stocks should be fruitful going forward.
Yield Spike Unnerve Equity Investors
On Feb 25, the yield of the benchmark 10-year U.S. Treasury Note jumped to 1.614%, its highest since Feb 14, 2020 before closing at 1.52%. The yield of the 30-year U.S. Treasury Note jumped to 2.286%. Notably, the10-year U.S. Treasury Note's yield closed 2020 at below 1% and ended January at around 1.09%. This indicates that the yield has soared more than 50 basis points at an alarming speed in less than two months, triggering the panic button among equity investors.
Consequently, the three major stock indexes — the Dow, the S&P 500 and the Nasdaq Composite — tumbled 1.8%, 2.5% and 3.5%, respectively, and recorded their biggest daily percentage loss since Jan 29, Jan 27 and Oct 28, respectively.
Why Stock Markets Tumble
Theoretically, bond yield moves inversely to bond price. The impressive rally of Wall Street in the pandemic-ridden 2020 and its continuation in 2021, the ongoing nationwide deployment of COVID-19 vaccines, a sharp reduction of new cases of coronavirus this month and President Joe Biden's proposed $1.9 trillion of a fresh coronavirus-aid package prompted investors to reallocate funds from safe-haven government bonds to risky equities, resulting in a massive spike in bond yields.
However, higher risk-free return is detrimental to growth sectors, especially technology companies that depend on easy access to the credit market at a cheap interest rate. Moreover, higher risk-free return means a higher discount rate for stock prices, which will effectively reduce the net present value of returns from equities.
Meanwhile, a section of economists and financial experts have calculated that the average dividend yield of the S&P 500 Index in the past 12 months was around 1.4-1.5%, meaning that government bonds with higher risk-free returns are more lucrative now.
Finally, despite Fed Chairman Jerome Powell's repeated assurance of subdued inflation and his pursuit of accommodative monetary policies, several market participants remain skeptical that inflation may appear much earlier than the central bank's expectation. Recently released data for retail sales, housing sector, vehicles sale, industrial production especially for manufacturing industries and growing consumer confidence will inflate the general price level.
Our Top Picks
We have narrowed down our search to five large-cap (market capital >$25 billion) stocks that have popped double digits month to date. All these stocks have strong growth potential for 2021 and have witnessed robust earnings estimate revisions in the last seven to 30 days. Each of our picks sports a Zacks Rank #1 (Strong Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.
Deere manufactures and distributes farm equipment worldwide. It operates through three segments: Agriculture and Turf, Construction and Forestry, and Financial Services.
The company has an expected earnings growth rate of 79.8% for the current year (ending October 2021). The Zacks Consensus Estimate for current-year earnings has improved 18.6% over the last 7 days. The stock price has rallied 20.6% month to date.
LyondellBasell Industries operates as a chemical company in the United States, Germany, Mexico, Italy, France, Japan, China, the Netherlands, and internationally. It operates in six segments: Olefins and PolyolefinsÂ-Americas, Olefins and PolyolefinsÂ-Europe, Asia, International, Intermediates and Derivatives, Advanced Polymer Solutions, Refining, and Technology.
The company has an expected earnings growth rate of 76.8% for the current year. The Zacks Consensus Estimate for current-year earnings has improved 3.4% over the last seven days. The stock price has jumped 21.8% month to date.
Interactive Brokers Group operates as an automated electronic broker worldwide. It specializes in executing and clearing trades in securities, futures, foreign exchange instruments, bonds, and mutual funds.
The company has an expected earnings growth rate of 5.2% for the current year. The Zacks Consensus Estimate for current-year earnings has improved 14.9% over the last 30 days. The stock price has climbed 21.1% month to date.
Capital One Financial is primarily focused on consumer and commercial lending as well as deposit origination providing various financial products and services in the United States, the United Kingdom, and Canada. It operates through three segments: Credit Card, Consumer Banking and Commercial Banking.
The company has an expected earnings growth rate of more than 100% for the current year. The Zacks Consensus Estimate for the current year has improved 22.7% over the last 30 days. The stock price has appreciated 14.4% month to date.
Weyerhaeuser is one of the leading U.S. forest product companies with operations primarily concentrated in Southern California, Nevada, Washington, Texas, Maryland and Virginia. It caters to a diverse clientele spread over the United States, Canada, Japan, Europe and other regions.
The company has an expected earnings growth rate of 28.7% for the current year. The Zacks Consensus Estimate for current-year earnings has improved 23% over the last 30 days. The stock price has advanced 10.4% month to date.
Just Released: Zacks’ 7 Best Stocks for Today
Experts extracted 7 stocks from the list of 220 Zacks Rank #1 Strong Buys that have beaten the market more than 2X over with a stunning average gain of +24.9% per year.
These 7 were selected because of their superior potential for immediate breakout.
Past performance is no guarantee of future results. Inherent in any investment is the potential for loss. This material is being provided for informational purposes only and nothing herein constitutes investment, legal, accounting or tax advice, or a recommendation to buy, sell or hold a security. No recommendation or advice is being given as to whether any investment is suitable for a particular investor. It should not be assumed that any investments in securities, companies, sectors or markets identified and described were or will be profitable. All information is current as of the date of herein and is subject to change without notice. Any views or opinions expressed may not reflect those of the firm as a whole. Zacks Investment Research does not engage in investment banking, market making or asset management activities of any securities. These returns are from hypothetical portfolios consisting of stocks with Zacks Rank = 1 that were rebalanced monthly with zero transaction costs. These are not the returns of actual portfolios of stocks. The S&P 500 is an unmanaged index. Visit https://www.zacks.com/performance for information about the performance numbers displayed in this press release.
See More Zacks Research for These Tickers
Normally $25 each - click below to receive one report FREE:
Image: Bigstock
The Zacks Analyst Blog Highlights: Deere, LyondellBasell, Interactive Brokers Group, Capital One Financial Corporation and Weyerhaeuser
For Immediate Release
Chicago, IL – March 1, 2021 – Zacks.com announces the list of stocks featured in the Analyst Blog. Every day the Zacks Equity Research analysts discuss the latest news and events impacting stocks and the financial markets. Stocks recently featured in the blog include: Deere & Company (DE - Free Report) , LyondellBasell Industries N.V. (LYB - Free Report) , Interactive Brokers Group, Inc. (IBKR - Free Report) , Capital One Financial Corporation (COF - Free Report) and Weyerhaeuser Company (WY - Free Report) .
Here are highlights from Friday’s Analyst Blog:
Top 5 Corporate Giants Flying High Through a Volatile February
February is turning out to be extremely volatile with just a day of trading left. In the first two weeks of this month, Wall Street's northbound journey continued smoothly. However, the problem started in the beginning of the second half of February due to a sudden spike in sovereign bond yields.
In the third week, out of the three major indexes, the S&P 500 and the Nasdaq Composite ended in the red while the Dow managed to gain marginally. Meanwhile, the Dow, the S&P 500 and the Nasdaq Composite have dropped 0.3%, 2% and 5.4%, respectively, so far this week. Moreover, the market's volatility index — CBOE VIX — skyrocketed 44.7% in the past eight trading days.
However, unperturbed by the market's instability, several stocks have skyrocketed in February. A handful of these are currently Zacks top-ranked with more upside left for 2021. Investment in these stocks should be fruitful going forward.
Yield Spike Unnerve Equity Investors
On Feb 25, the yield of the benchmark 10-year U.S. Treasury Note jumped to 1.614%, its highest since Feb 14, 2020 before closing at 1.52%. The yield of the 30-year U.S. Treasury Note jumped to 2.286%. Notably, the10-year U.S. Treasury Note's yield closed 2020 at below 1% and ended January at around 1.09%. This indicates that the yield has soared more than 50 basis points at an alarming speed in less than two months, triggering the panic button among equity investors.
Consequently, the three major stock indexes — the Dow, the S&P 500 and the Nasdaq Composite — tumbled 1.8%, 2.5% and 3.5%, respectively, and recorded their biggest daily percentage loss since Jan 29, Jan 27 and Oct 28, respectively.
Why Stock Markets Tumble
Theoretically, bond yield moves inversely to bond price. The impressive rally of Wall Street in the pandemic-ridden 2020 and its continuation in 2021, the ongoing nationwide deployment of COVID-19 vaccines, a sharp reduction of new cases of coronavirus this month and President Joe Biden's proposed $1.9 trillion of a fresh coronavirus-aid package prompted investors to reallocate funds from safe-haven government bonds to risky equities, resulting in a massive spike in bond yields.
However, higher risk-free return is detrimental to growth sectors, especially technology companies that depend on easy access to the credit market at a cheap interest rate. Moreover, higher risk-free return means a higher discount rate for stock prices, which will effectively reduce the net present value of returns from equities.
Meanwhile, a section of economists and financial experts have calculated that the average dividend yield of the S&P 500 Index in the past 12 months was around 1.4-1.5%, meaning that government bonds with higher risk-free returns are more lucrative now.
Finally, despite Fed Chairman Jerome Powell's repeated assurance of subdued inflation and his pursuit of accommodative monetary policies, several market participants remain skeptical that inflation may appear much earlier than the central bank's expectation. Recently released data for retail sales, housing sector, vehicles sale, industrial production especially for manufacturing industries and growing consumer confidence will inflate the general price level.
Our Top Picks
We have narrowed down our search to five large-cap (market capital >$25 billion) stocks that have popped double digits month to date. All these stocks have strong growth potential for 2021 and have witnessed robust earnings estimate revisions in the last seven to 30 days. Each of our picks sports a Zacks Rank #1 (Strong Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.
Deere manufactures and distributes farm equipment worldwide. It operates through three segments: Agriculture and Turf, Construction and Forestry, and Financial Services.
The company has an expected earnings growth rate of 79.8% for the current year (ending October 2021). The Zacks Consensus Estimate for current-year earnings has improved 18.6% over the last 7 days. The stock price has rallied 20.6% month to date.
LyondellBasell Industries operates as a chemical company in the United States, Germany, Mexico, Italy, France, Japan, China, the Netherlands, and internationally. It operates in six segments: Olefins and PolyolefinsÂ-Americas, Olefins and PolyolefinsÂ-Europe, Asia, International, Intermediates and Derivatives, Advanced Polymer Solutions, Refining, and Technology.
The company has an expected earnings growth rate of 76.8% for the current year. The Zacks Consensus Estimate for current-year earnings has improved 3.4% over the last seven days. The stock price has jumped 21.8% month to date.
Interactive Brokers Group operates as an automated electronic broker worldwide. It specializes in executing and clearing trades in securities, futures, foreign exchange instruments, bonds, and mutual funds.
The company has an expected earnings growth rate of 5.2% for the current year. The Zacks Consensus Estimate for current-year earnings has improved 14.9% over the last 30 days. The stock price has climbed 21.1% month to date.
Capital One Financial is primarily focused on consumer and commercial lending as well as deposit origination providing various financial products and services in the United States, the United Kingdom, and Canada. It operates through three segments: Credit Card, Consumer Banking and Commercial Banking.
The company has an expected earnings growth rate of more than 100% for the current year. The Zacks Consensus Estimate for the current year has improved 22.7% over the last 30 days. The stock price has appreciated 14.4% month to date.
Weyerhaeuser is one of the leading U.S. forest product companies with operations primarily concentrated in Southern California, Nevada, Washington, Texas, Maryland and Virginia. It caters to a diverse clientele spread over the United States, Canada, Japan, Europe and other regions.
The company has an expected earnings growth rate of 28.7% for the current year. The Zacks Consensus Estimate for current-year earnings has improved 23% over the last 30 days. The stock price has advanced 10.4% month to date.
Just Released: Zacks’ 7 Best Stocks for Today
Experts extracted 7 stocks from the list of 220 Zacks Rank #1 Strong Buys that have beaten the market more than 2X over with a stunning average gain of +24.9% per year.
These 7 were selected because of their superior potential for immediate breakout.
See these time-sensitive tickers now >>
Media Contact
Zacks Investment Research
800-767-3771 ext. 9339
support@zacks.com
https://www.zacks.com
Past performance is no guarantee of future results. Inherent in any investment is the potential for loss. This material is being provided for informational purposes only and nothing herein constitutes investment, legal, accounting or tax advice, or a recommendation to buy, sell or hold a security. No recommendation or advice is being given as to whether any investment is suitable for a particular investor. It should not be assumed that any investments in securities, companies, sectors or markets identified and described were or will be profitable. All information is current as of the date of herein and is subject to change without notice. Any views or opinions expressed may not reflect those of the firm as a whole. Zacks Investment Research does not engage in investment banking, market making or asset management activities of any securities. These returns are from hypothetical portfolios consisting of stocks with Zacks Rank = 1 that were rebalanced monthly with zero transaction costs. These are not the returns of actual portfolios of stocks. The S&P 500 is an unmanaged index. Visit https://www.zacks.com/performance for information about the performance numbers displayed in this press release.