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The Zacks Analyst Blog Highlights: Jack in The Box, Mesa Air Group, L Brands, EOG Resources and Allegiance Bancshares
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For Immediate Release
Chicago, IL – March 16, 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: Jack in The Box Inc. (JACK - Free Report) , Mesa Air Group, Inc. (MESA - Free Report) , L Brands, Inc. , EOG Resources, Inc. (EOG - Free Report) and Allegiance Bancshares, Inc. .
Here are highlights from Monday’s Analyst Blog:
5 Economically-Sensitive Cyclical Stocks to Buy for Big Upside
Technology stocks have wobbled of late on the northward movement in bond yields. In fact, the tech-laden Nasdaq dropped 0.6% on Mar 12 to end at 13,319.86. Meanwhile, the 10-Year Treasury note rose 10 basis points to around 1.63% on Mar 12, as mentioned in a MarketWatch article.
Tech stocks being riskier in nature generally tend to lose their appeal when bond yields rise. Moreover, bond yields primarily rose due to optimism on coronavirus vaccine rollout and a renewed uptick in consumer outlays, indicating that the economy is now showing signs of improvement.
However, economic growth did raise inflation expectations and investors remained concerned that it would eventually compel the Fed to raise rates. No doubt, higher rates impact stocks with lofty valuations. Lest we forget, tech stocks now have relatively higher valuations as the coronavirus pandemic-led lockdown measures coerced investors to pour a lot of money into tech stocks, especially last year.
Nonetheless, the rise in bond yields failed to cap gains in the broader stock market, with the Dow and the S&P 500 finishing in the green in the last trading session. This is because even if investors dumped tech stocks, they placed their bet on cyclical stocks that were in particular affected by the coronavirus outbreak last year. After all, such economically-sensitive stocks are now well poised to gain traction, with the economy showing enough signs of progress.
The MarketWatch article further stated that analysts surveyed by them expect the U.S. economy to expand a staggering 6% this year. Additionally, as cited in a CNBC article, the Congressional Budget Office (CBO) firmly believes that U.S. GDP will bounce back to pre-pandemic levels by the middle of this year.CBO expects the real GDP to grow 3.7% in 2021.
And why not? With the vaccine rollout pace greater than ever and more government aids in the anvil, things are looking up for the economy. Needless to say, President Joe Biden signed a $1.9-trillion coronavirus relief package last week, which will stimulate the economy, provide Americans bigger checks and help struggling small businesses recoup from the losses borne due to the pandemic.
Notably, with concerns about an economic recession ebbing, cyclical stocks or consumer discretionary players' fate has brightened. Thus, restaurant, hotel, airline, apparel, and vehicle manufacturer company shares are now bound to scale higher as their sales are projected to improve along with economic growth. At the same time, energy and financial players' shares are cyclical in nature and are well-positioned to witness an uptick in the days ahead.
Thus, investing in some of the solid cyclical stocks whose fortunes are now expected to improve on improving economic conditions seems prudent as of now. These stocks currently flaunt a Zacks Rank #1 (Strong Buy) or 2 (Buy).
Jack In The Box is a restaurant company that operates and franchises through Jack in the Box quick-service restaurants, and is one of the nation's largest hamburger chains. The company currently has a Zacks Rank #2. The Zacks Consensus Estimate for its current-year earnings has risen 13.9% over the past 60 days. The company's expected earnings growth rate for the current year is 37.2%.
Mesa Air Group provides airline services. The company offers passenger transportation and regional air services. It currently has a Zacks Rank #2. The Zacks Consensus Estimate for its current-year earnings has risen 209.4% over the past 60 days. The company's expected earnings growth rate for the current year is 26.9%.
L Brands evolved from an apparel-based specialty retailer to a segment leader focused on women's intimate and other apparel, personal care, beauty and home fragrance products. The company currently has a Zacks Rank #1. The Zacks Consensus Estimate for its current-year earnings has moved up 25.6% over the past 60 days.
EOG Resources is primarily involved in exploring and producing oil and natural gas. The company currently has a Zacks Rank #1. The Zacks Consensus Estimate for its current-year earnings has risen 106.2% over the past 60 days. The company's expected earnings growth rate for the current year is 217.8%.
Allegiance Bancshares operates as a bank holding company. The company offers banking products and services, primarily to small and medium-sized businesses and individual customers, through its subsidiaries. The company currently has a Zacks Rank #2. The Zacks Consensus Estimate for its current-year earnings has risen nearly 14% over the past 60 days. The company's expected earnings growth rate for the current year is 24.8%.
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.
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.
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The Zacks Analyst Blog Highlights: Jack in The Box, Mesa Air Group, L Brands, EOG Resources and Allegiance Bancshares
For Immediate Release
Chicago, IL – March 16, 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: Jack in The Box Inc. (JACK - Free Report) , Mesa Air Group, Inc. (MESA - Free Report) , L Brands, Inc. , EOG Resources, Inc. (EOG - Free Report) and Allegiance Bancshares, Inc. .
Here are highlights from Monday’s Analyst Blog:
5 Economically-Sensitive Cyclical Stocks to Buy for Big Upside
Technology stocks have wobbled of late on the northward movement in bond yields. In fact, the tech-laden Nasdaq dropped 0.6% on Mar 12 to end at 13,319.86. Meanwhile, the 10-Year Treasury note rose 10 basis points to around 1.63% on Mar 12, as mentioned in a MarketWatch article.
Tech stocks being riskier in nature generally tend to lose their appeal when bond yields rise. Moreover, bond yields primarily rose due to optimism on coronavirus vaccine rollout and a renewed uptick in consumer outlays, indicating that the economy is now showing signs of improvement.
However, economic growth did raise inflation expectations and investors remained concerned that it would eventually compel the Fed to raise rates. No doubt, higher rates impact stocks with lofty valuations. Lest we forget, tech stocks now have relatively higher valuations as the coronavirus pandemic-led lockdown measures coerced investors to pour a lot of money into tech stocks, especially last year.
Nonetheless, the rise in bond yields failed to cap gains in the broader stock market, with the Dow and the S&P 500 finishing in the green in the last trading session. This is because even if investors dumped tech stocks, they placed their bet on cyclical stocks that were in particular affected by the coronavirus outbreak last year. After all, such economically-sensitive stocks are now well poised to gain traction, with the economy showing enough signs of progress.
The MarketWatch article further stated that analysts surveyed by them expect the U.S. economy to expand a staggering 6% this year. Additionally, as cited in a CNBC article, the Congressional Budget Office (CBO) firmly believes that U.S. GDP will bounce back to pre-pandemic levels by the middle of this year.CBO expects the real GDP to grow 3.7% in 2021.
And why not? With the vaccine rollout pace greater than ever and more government aids in the anvil, things are looking up for the economy. Needless to say, President Joe Biden signed a $1.9-trillion coronavirus relief package last week, which will stimulate the economy, provide Americans bigger checks and help struggling small businesses recoup from the losses borne due to the pandemic.
Notably, with concerns about an economic recession ebbing, cyclical stocks or consumer discretionary players' fate has brightened. Thus, restaurant, hotel, airline, apparel, and vehicle manufacturer company shares are now bound to scale higher as their sales are projected to improve along with economic growth. At the same time, energy and financial players' shares are cyclical in nature and are well-positioned to witness an uptick in the days ahead.
Thus, investing in some of the solid cyclical stocks whose fortunes are now expected to improve on improving economic conditions seems prudent as of now. These stocks currently flaunt a Zacks Rank #1 (Strong Buy) or 2 (Buy).
Jack In The Box is a restaurant company that operates and franchises through Jack in the Box quick-service restaurants, and is one of the nation's largest hamburger chains. The company currently has a Zacks Rank #2. The Zacks Consensus Estimate for its current-year earnings has risen 13.9% over the past 60 days. The company's expected earnings growth rate for the current year is 37.2%.
Mesa Air Group provides airline services. The company offers passenger transportation and regional air services. It currently has a Zacks Rank #2. The Zacks Consensus Estimate for its current-year earnings has risen 209.4% over the past 60 days. The company's expected earnings growth rate for the current year is 26.9%.
L Brands evolved from an apparel-based specialty retailer to a segment leader focused on women's intimate and other apparel, personal care, beauty and home fragrance products. The company currently has a Zacks Rank #1. The Zacks Consensus Estimate for its current-year earnings has moved up 25.6% over the past 60 days.
The company's expected earnings growth rate for the current year is 15%. You can see the complete list of today's Zacks #1 Rankstocks here.
EOG Resources is primarily involved in exploring and producing oil and natural gas. The company currently has a Zacks Rank #1. The Zacks Consensus Estimate for its current-year earnings has risen 106.2% over the past 60 days. The company's expected earnings growth rate for the current year is 217.8%.
Allegiance Bancshares operates as a bank holding company. The company offers banking products and services, primarily to small and medium-sized businesses and individual customers, through its subsidiaries. The company currently has a Zacks Rank #2. The Zacks Consensus Estimate for its current-year earnings has risen nearly 14% over the past 60 days. The company's expected earnings growth rate for the current year is 24.8%.
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 >>
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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.