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The Zacks Analyst Blog Highlights: STMicroelectronics, BP and Asbury Automotive Group
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For Immediate Release
Chicago, IL – February 7, 2022 – 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: STMicroelectronics (STM - Free Report) , BP (BP - Free Report) and Asbury Automotive Group (ABG - Free Report) .
Here are highlights from Friday’s Analyst Blog:
What's the S&P 500's "Fair Value"? Zacks February Market Strategy
In brief, Zacks “fair value” earnings call is based on a 2022 forward look ($223); 2023 (another ~10% added to $246.52); and an 18 F12M P/E ratio, a five-year average.
Zacks has 4,900 at year-end (YE) 2022 as our initial, conservative ‘fair value’ target.
Add on a dollop of Fed and G10 central bank-driven valuation upside to that.
The latest 2022 “bottoms-up call is for the S&P 500 to reach 5,318.2 in 12 months.
Without money printing, Zacks has the S&P 500 index 4,900 at YE 2022. Add 320 points of money printing effects to get the S&P 500 index to 5,220 at YE 2022.
Zacks had 4,350 as a YE 2021 call for “fair value” without money printing. The year ended with the S&P500 at 4,770. A difference of ~320 points.
Very bullish top-down Wall Street strategists called for the S&P 500 to end 2020 trading at 3,450. It ended at 3,756. A difference of ~300 points.
In conclusion, to actively compute “fair value” valuations, factor in earnings growth ahead, like the stock market does, 6 to 12 to 18 months.
Always keep up-to-date. Time moves on faster than your last calculation may recognize.
Looking for S&P 500 or Small-Cap Sector and Industry Ideas?
Apply a 12M forward-looking (endemic) COVID earnings landscape.
Study 2022 and the first half of 2023!
Focus on cyclical Zacks S&P 500 sectors.
The top-most large-cap sectors come to life in 2022, as broader and deeper U.S. and global vaccination and booster rates raise mobility, even more.
Consumer Discretionary (+66.0)
Aerospace (+19.1%)
Autos (+16.6%)
Construction (+16.0%)
Industrial Products (+15.4%)
Conglomerates (+12.5%)
Retail/Wholesale (+11.9%)
Medical (+8.7%)
Technology (+7.8%)
Utilities (+6.7%)
Consumer Staples (+5.1%)
Basic Materials (+3.6%)
Finance (-7.3%)
Oil/Energy (na)
An idea? Play sold-off cyclicals on a 2022 EPS/revenue build. That’s a forward bull play.
Zacks S&P 600 (Small Cap) Annual Earnings consensus shows a nifty rise going out to 2023. The small-cap Russell 2000 has sold off, more than the large cap growth indices.
To Jan. 31st, there were 10.08B vaccine doses given, 375.1M world-wide cases and 5.67M deaths worldwide.
In that, there were 74.3M USA cases and 884K USA deaths.
The FEB Zacks Rank system showed only 2 Very Attractive sectors; Energy and Info Tech. Both are global, and both are driven by supply shortages at the moment.
It was sparse one notch beneath that too: Consumer Discretionary got an upgrade to Attractive. The setting is one where Omicron played out. All may bounce a quarter later.
Materials and Industrials came in at Market Weight. Steel and Metal Fabricating looked good. Communication Services and Utilities stayed at Market Weight. Telco Equipment looked great.
Health Care was a bare Market Weight. Why? Omicron raised the Drug Industry and lowered the Medical Products industry at the same time.
Consumer Staples fell all the way back to Very Unattractive this month. Agri-business was the exception. Omicron took down Misc. Staples, Tobacco, Food, & Beverages.
(1) Info Tech stayed at Very Attractive. Computer-Office Equipment, Semis (with a global supply shortage), and Misc. Tech were at the top, and in that order.
Zacks #1 Rank (STRONG BUY): STMicroelectronics
(2) Energyremained a Very Attractive sector. Coal, Oil & Gas Integrated, Oil-Misc. and the Energy-Alternates stood out.
Zacks #1 Rank (STRONG BUY): BP
(3) Consumer Discretionaryrose to Attractive. Publishing, Apparel and Autos/Tires/Trucks, were strong and show wealth effects and strong overall consumer spending.
Zacks # Rank (STRONG BUY): Asbury Automotive Group
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: STMicroelectronics, BP and Asbury Automotive Group
For Immediate Release
Chicago, IL – February 7, 2022 – 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: STMicroelectronics (STM - Free Report) , BP (BP - Free Report) and Asbury Automotive Group (ABG - Free Report) .
Here are highlights from Friday’s Analyst Blog:
What's the S&P 500's "Fair Value"? Zacks February Market Strategy
The following is an excerpt from Zacks Chief Strategist John Blank’s full Feb Market Strategy reportTo access the full PDF, click here.
In brief, Zacks “fair value” earnings call is based on a 2022 forward look ($223); 2023 (another ~10% added to $246.52); and an 18 F12M P/E ratio, a five-year average.
Zacks has 4,900 at year-end (YE) 2022 as our initial, conservative ‘fair value’ target.
Add on a dollop of Fed and G10 central bank-driven valuation upside to that.
The latest 2022 “bottoms-up call is for the S&P 500 to reach 5,318.2 in 12 months.
Without money printing, Zacks has the S&P 500 index 4,900 at YE 2022. Add 320 points of money printing effects to get the S&P 500 index to 5,220 at YE 2022.
Zacks had 4,350 as a YE 2021 call for “fair value” without money printing. The year ended with the S&P500 at 4,770. A difference of ~320 points.
Very bullish top-down Wall Street strategists called for the S&P 500 to end 2020 trading at 3,450. It ended at 3,756. A difference of ~300 points.
In conclusion, to actively compute “fair value” valuations, factor in earnings growth ahead, like the stock market does, 6 to 12 to 18 months.
Always keep up-to-date. Time moves on faster than your last calculation may recognize.
Looking for S&P 500 or Small-Cap Sector and Industry Ideas?
Apply a 12M forward-looking (endemic) COVID earnings landscape.
Study 2022 and the first half of 2023!
Focus on cyclical Zacks S&P 500 sectors.
The top-most large-cap sectors come to life in 2022, as broader and deeper U.S. and global vaccination and booster rates raise mobility, even more.
An idea? Play sold-off cyclicals on a 2022 EPS/revenue build. That’s a forward bull play.
Zacks S&P 600 (Small Cap) Annual Earnings consensus shows a nifty rise going out to 2023. The small-cap Russell 2000 has sold off, more than the large cap growth indices.
2011 $29.1 Billion
2012 $32.2
2013 $36.5
2014 $39.1
2015 $36.8
2016 $37.5
2017 $40.4
2018 $50.0
2019 $48.0
2020 $33.8
2021 $65.5
2022 $72.7
2023 $79.7
Still: realize this pandemic is not over.
Far from it.
To Jan. 31st, there were 10.08B vaccine doses given, 375.1M world-wide cases and 5.67M deaths worldwide.
In that, there were 74.3M USA cases and 884K USA deaths.
The FEB Zacks Rank system showed only 2 Very Attractive sectors; Energy and Info Tech. Both are global, and both are driven by supply shortages at the moment.
It was sparse one notch beneath that too: Consumer Discretionary got an upgrade to Attractive. The setting is one where Omicron played out. All may bounce a quarter later.
Materials and Industrials came in at Market Weight. Steel and Metal Fabricating looked good. Communication Services and Utilities stayed at Market Weight. Telco Equipment looked great.
Health Care was a bare Market Weight. Why? Omicron raised the Drug Industry and lowered the Medical Products industry at the same time.
Consumer Staples fell all the way back to Very Unattractive this month. Agri-business was the exception. Omicron took down Misc. Staples, Tobacco, Food, & Beverages.
(1) Info Tech stayed at Very Attractive. Computer-Office Equipment, Semis (with a global supply shortage), and Misc. Tech were at the top, and in that order.
Zacks #1 Rank (STRONG BUY): STMicroelectronics
(2) Energyremained a Very Attractive sector. Coal, Oil & Gas Integrated, Oil-Misc. and the Energy-Alternates stood out.
Zacks #1 Rank (STRONG BUY): BP
(3) Consumer Discretionaryrose to Attractive. Publishing, Apparel and Autos/Tires/Trucks, were strong and show wealth effects and strong overall consumer spending.
Zacks # Rank (STRONG BUY): Asbury Automotive Group
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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.