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The Zacks Analyst Blog Highlights: Energy Transfer, Compass Diversified, New York Community Bancorp, Redwood Trust and Western Midstream Partners
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For Immediate Release
Chicago, IL – August 3, 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: Energy Transfer LP (ET - Free Report) , Compass Diversified (CODI - Free Report) , New York Community Bancorp, Inc. (NYCB - Free Report) , Redwood Trust, Inc. (RWT - Free Report) and Western Midstream Partners, LP (WES - Free Report) .
Here are highlights from Monday’s Analyst Blog:
5 Top-Rated Dividend Stocks to Buy for a Notorious August
US stocks have somehow managed to end July in the green. However, stocks did drift lower on the final trading day of the month. In fact, a month-long rally among stocks has actually slowed down a bit in recent times as investors remain apprehensive regarding the outcome of economic growth in the near future.
This can be attributed to the emergence of the more contagious Delta variant that has led to rising COVID-19 cases worldwide. The spread of the Delta variant has set off the alarm bells among investors as it may easily derail the economic recovery process. It may again lead to the implementation of lockdown measures on businesses and movements. And make no mistake; concerns about the Delta variant did result in some sort of volatility in the markets in the month of July.
By the way, China’s crackdown on technology companies did little to lift investors’ sentiments. Investors were taken aback when Beijing took a bold step to clamp down China’s most prominent tech companies involved in e-commerce, internet, and digital finance businesses, and are listed in US stock exchanges leading to investors losing hundreds of billions of dollars. China, however, claimed that the crackdown on such companies was intended to improve the competitive environment.
Meanwhile, Amazon’s discouraging sales growth in the second quarter of the year dampened investors’ sentiment as well. It’s worth pointing out that the e-commerce giant dulled the sentiment further by providing a disappointing sales guidance for the current quarter. Amazon expects sales for the third quarter in the range of $106 billion to $112 billion, lower than analysts’ expectations of $119.31 billion, per FactSet, citing a MarketWatch article. Amazon’s weak sales guidance, no doubt, indicated that the economy isn’t yet out of the woods, which doesn’t bode well for the broader stock market.
Investors should also keep in mind that they are entering the most dangerous period of the year for stocks. According to Bank of America analyst Stephen Suttmeier, since 1928, the S&P 500 on average had given a negative return of 0.03% in August, September, and October, touted to be the worst three-month period for the broader index, citing another MarketWatch article.
What’s more, since 1992, the Cboe Volatility Index (VIX) had time and again witnessed spikes in August, September, and October, while it had comparatively remained subdued in the April to July period, added Suttmeier, quoting the MarketWatch article.
Thus, if we consider the seasonality factor, this is the most unfavorable time of the year for stocks. And with the more transmissible strain of the coronavirus spreading worldwide coupled with China worries, things are not looking bright for the stock market in the near term. Despite such uncertainties, investors shouldn’t shun equities completely! Instead, they should focus on investing in sound dividend players. After all, these stocks have a long track of profitability, thanks to a sustainable business model. They are also unperturbed by market volatility.
We have, thus, highlighted five such stocks that have a Zacks Rank #1 (Strong Buy) or 2 (Buy) and provide high yields.
Energy Transfer owns and operates diversified portfolios of energy assets primarily in the United States. The company has a Zacks Rank #1. It has a dividend yield of 6.2%, while its five-year average dividend yield is 9.3%. The company’s expected earnings growth rate for the current year is 987.5%.
Compass Diversified was formed to acquire and manage a group of middle market businesses that are headquartered in North America. The company has a Zacks Rank #2. It has a dividend yield of 5.8%, while its five-year average dividend yield is 8.1%. The company’s expected earnings growth rate for the current year is 60.4%.
New York Community Bancorp provides traditional and non-traditional products and services, and access to multiple service channels, including online banking and mobile banking. The company has a Zacks Rank #1. It has a dividend yield of 5.8%, while its five-year average dividend yield is also the same. The company’s expected earnings growth rate for the current year is 43.7%. You can see the complete list of today’s Zacks #1 Rank stocks here.
Redwood Trust is a self-advised and self-managed real estate investment trust. The company sports a Zacks Rank #1. It has a dividend yield of 6.1%, while its five-year average dividend yield is 8.1%. The company’s expected earnings growth rate for the current year is 3,125%.
Western Midstream Partners is formed to own, operate, acquire and develop midstream energy assets. The company has a Zacks Rank #2. It has a dividend yield of 6.4%, while its five-year average dividend yield is 9.2%. The company’s expected earnings growth rate for the current year is 86.4%.
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: Energy Transfer, Compass Diversified, New York Community Bancorp, Redwood Trust and Western Midstream Partners
For Immediate Release
Chicago, IL – August 3, 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: Energy Transfer LP (ET - Free Report) , Compass Diversified (CODI - Free Report) , New York Community Bancorp, Inc. (NYCB - Free Report) , Redwood Trust, Inc. (RWT - Free Report) and Western Midstream Partners, LP (WES - Free Report) .
Here are highlights from Monday’s Analyst Blog:
5 Top-Rated Dividend Stocks to Buy for a Notorious August
US stocks have somehow managed to end July in the green. However, stocks did drift lower on the final trading day of the month. In fact, a month-long rally among stocks has actually slowed down a bit in recent times as investors remain apprehensive regarding the outcome of economic growth in the near future.
This can be attributed to the emergence of the more contagious Delta variant that has led to rising COVID-19 cases worldwide. The spread of the Delta variant has set off the alarm bells among investors as it may easily derail the economic recovery process. It may again lead to the implementation of lockdown measures on businesses and movements. And make no mistake; concerns about the Delta variant did result in some sort of volatility in the markets in the month of July.
By the way, China’s crackdown on technology companies did little to lift investors’ sentiments. Investors were taken aback when Beijing took a bold step to clamp down China’s most prominent tech companies involved in e-commerce, internet, and digital finance businesses, and are listed in US stock exchanges leading to investors losing hundreds of billions of dollars. China, however, claimed that the crackdown on such companies was intended to improve the competitive environment.
Meanwhile, Amazon’s discouraging sales growth in the second quarter of the year dampened investors’ sentiment as well. It’s worth pointing out that the e-commerce giant dulled the sentiment further by providing a disappointing sales guidance for the current quarter. Amazon expects sales for the third quarter in the range of $106 billion to $112 billion, lower than analysts’ expectations of $119.31 billion, per FactSet, citing a MarketWatch article. Amazon’s weak sales guidance, no doubt, indicated that the economy isn’t yet out of the woods, which doesn’t bode well for the broader stock market.
Investors should also keep in mind that they are entering the most dangerous period of the year for stocks. According to Bank of America analyst Stephen Suttmeier, since 1928, the S&P 500 on average had given a negative return of 0.03% in August, September, and October, touted to be the worst three-month period for the broader index, citing another MarketWatch article.
What’s more, since 1992, the Cboe Volatility Index (VIX) had time and again witnessed spikes in August, September, and October, while it had comparatively remained subdued in the April to July period, added Suttmeier, quoting the MarketWatch article.
Thus, if we consider the seasonality factor, this is the most unfavorable time of the year for stocks. And with the more transmissible strain of the coronavirus spreading worldwide coupled with China worries, things are not looking bright for the stock market in the near term. Despite such uncertainties, investors shouldn’t shun equities completely! Instead, they should focus on investing in sound dividend players. After all, these stocks have a long track of profitability, thanks to a sustainable business model. They are also unperturbed by market volatility.
We have, thus, highlighted five such stocks that have a Zacks Rank #1 (Strong Buy) or 2 (Buy) and provide high yields.
Energy Transfer owns and operates diversified portfolios of energy assets primarily in the United States. The company has a Zacks Rank #1. It has a dividend yield of 6.2%, while its five-year average dividend yield is 9.3%. The company’s expected earnings growth rate for the current year is 987.5%.
Compass Diversified was formed to acquire and manage a group of middle market businesses that are headquartered in North America. The company has a Zacks Rank #2. It has a dividend yield of 5.8%, while its five-year average dividend yield is 8.1%. The company’s expected earnings growth rate for the current year is 60.4%.
New York Community Bancorp provides traditional and non-traditional products and services, and access to multiple service channels, including online banking and mobile banking. The company has a Zacks Rank #1. It has a dividend yield of 5.8%, while its five-year average dividend yield is also the same. The company’s expected earnings growth rate for the current year is 43.7%. You can see the complete list of today’s Zacks #1 Rank stocks here.
Redwood Trust is a self-advised and self-managed real estate investment trust. The company sports a Zacks Rank #1. It has a dividend yield of 6.1%, while its five-year average dividend yield is 8.1%. The company’s expected earnings growth rate for the current year is 3,125%.
Western Midstream Partners is formed to own, operate, acquire and develop midstream energy assets. The company has a Zacks Rank #2. It has a dividend yield of 6.4%, while its five-year average dividend yield is 9.2%. The company’s expected earnings growth rate for the current year is 86.4%.
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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.