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The Zacks Analyst Blog Highlights: ABM Industries, AutoNation, Deckers Outdoor, Goldman Sachs and KBR

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For Immediate Release

Chicago, IL – April 27, 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: ABM Industries Inc. (ABM - Free Report) , AutoNation, Inc. (AN - Free Report) , Deckers Outdoor Corp. (DECK - Free Report) , The Goldman Sachs Group, Inc. (GS - Free Report) and KBR, Inc. (KBR - Free Report) .

Here are highlights from Monday’s Analyst Blog:

Firming Economic Backdrop to Lift Wall Street: 5 Growth Picks

The stock market gyrated last week mostly because of President Biden’s proposal to increase capital-gains tax for well-to-do Americans. Of course, any discouraging news would impact investors’ sentiments but it’s also true that the President’s pledge was in line with his campaign promises. In fact, investors on the final day of last week’s trading focused more on data indicating acceleration in economic activity, especially after the beating it took last year due to the rapid spread of coronavirus.

Such encouraging economic developments not only helped major indexes end in the green on Apr 23 but these are also expected to lift the stock market in the near future. Per a MarketWatch article, IHS Markit’s “flash” US composite purchasing managers index came in at 62.2 in April versus 59.7 in March.

What’s more, the flash manufacturing purchasing managers index rose to a record 60.6 in April from 59.1 last month. Similarly, the flash services purchasing managers index advanced to a record 63.1 in April from 60.4 in the previous month, added IHS Markit, as cited in the MarketWatch article. Notably, any reading above 50 suggests improving conditions.

Manufacturing activity picked up as demand for new orders increased despite supply chain issues. At the same time, the service side of the economy showed signs of progress, thanks to the reopening of businesses amid cooling off of COVID-19 restrictions. In reality, services like travel and leisure picked up on an uptick in the pace of vaccination and relaxation of travel curbs.

To top it, as mentioned in the MarketWatch article, the Federal Research Bank of Atlanta’s GDPNow estimate for real GDP growth for first-quarter 2021 is 8.3%, with economists now expecting second-quarter growth to be even better, surpassing 10%, added the MarketWatch article.

This is because there has been a momentous uptick in consumer spending last month. U.S. retail sales jumped 9.8% in March on government aid and stimulus checks provided to households, as mentioned in a WallStreet Journal article. Additionally, consumer confidence level touched a one-year high last month, added a Bloomberg article. This means household outlays are poised to improve further in the near term.

Needless to say, more outlays bode well for economic growth. In the meantime, the labor market is up and running, with the jobless rate dropping to 6% in March, as quoted from another Bloomberg article.

Thus, with the economy recuperating from the coronavirus-led drubbing in recent times, the stock market is set to climb north. Hence, investing in solid growth stocks at the moment seems prudent. We have selected five such stocks that currently possess a Zacks Rank #1 (Strong Buy) or 2 (Buy) and a Growth Score of A or B.

ABM Industries is a provider of integrated facility solutions in the United States and internationally. The company currently has a Zacks Rank #1 and a Growth Score of B. The Zacks Consensus Estimate for its current-year earnings has risen 33.3% over the past 60 days. The company’s expected earnings growth rate for the current year is 33.3%.

AutoNation is the largest automotive retailer in the United States. The company currently has a Zacks Rank #1 and a Growth Score of B. The Zacks Consensus Estimate for its current-year earnings has climbed 30.8% over the past 60 days. The company’s expected earnings growth rate for the current year is 34.1%.

Deckers Outdoor is a leading designer, producer, and brand manager of innovative, niche footwear and accessories developed for outdoor sports, and other lifestyle-related activities. The company currently has a Zacks Rank #2 and a Growth Score of A. The Zacks Consensus Estimate for its current-year earnings has moved up 0.2% over the past 60 days. The company’s expected earnings growth rate for the current year is 35%. You can see the complete list of today’s Zacks #1 Rank stocks here.

Goldman Sachs is a leading global financial holding company providing investment banking, securities and investment management services to a diversified client base. The company currently has a Zacks Rank #1 and a Growth Score of B. The Zacks Consensus Estimate for its current-year earnings has climbed 53.2% over the past 60 days. The company’s expected earnings growth rate for the current year is 81.5%.

KBR is a global engineering, construction and services firm, supporting the market segments of global energy and international government services. The company currently has a Zacks Rank #2 and a Growth Score of B. The Zacks Consensus Estimate for its current-year earnings has risen nearly 1% over the past 60 days. The company’s expected earnings growth rate for the current year is 21.4%.

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