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Potbelly's and Rio Tinto have been highlighted as Zacks Bull and Bear of the Day
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For Immediate Release
Chicago, IL – July 21, 2022 – Zacks Equity Research shares Potbelly's (PBPB - Free Report) as the Bull of the Day and Rio Tinto (RIO - Free Report) as the Bear of the Day. In addition, Zacks Equity Research provides analysis on McKesson (MCK - Free Report) , Patterson Companies (PDCO - Free Report) and AMN Healthcare Services (AMN - Free Report) .
Finally risk assets are back en vogue. It helped set off a rally across the board. With the huge numbers of the last couple days, it might feel like the dart board approach is back. Sure, that might work for a few weeks, but eventually, the cream will rise to the top. Stocks with the strongest earnings trends have the highest likelihood of continued profits.
One way to uncover these trends is by leaning on the Zacks Rank. Today's Bull of the Day is a stock in the good graces of our Zacks Rank. It's sandwich restaurant Potbelly's. Potbelly Corporation is a neighborhood sandwich concept. The Company manages establishments for consuming food on premises to offer sandwiches, salads, soups, chili, chips, cookies, ice cream, and smoothies. It serves customers throughout the United States. Potbelly Corporation is headquartered in Chicago, Illinois.
The reason for the favorable Zacks Rank is the recent positive earnings estimate revisions coming from analysts. Over the last sixty days, analysts have been upping the ante for the current year and next year. The bullish moves have pushed up our Zacks Consensus Estimates for the current year from a 33-cent loss to a small 3-cent loss. Next year's EPS number is up from a 9-cent loss to a 5-cent profit.
That hasn't helped the stock much. Shares have dropped significantly since their June 2021 highs above $9. Nearly half that now, the stock trades at $5.19 while the 52-week high is just above $7. Technical pressures remain above at the 50 and 200-day which are both negatively sloped. A four-day rally has the stock up over 7%.
Inflation has been a boon to several industries. Among them, anything having to do with basic materials or mining. Higher prices meant higher profits for these stocks. However, that trend is coming to an end. Earnings estimates have been moving the wrong direction for this industry. It's taken the Mining – Miscellaneous industry down to the Bottom 27% of our Zacks Industry Rank. One of these stocks is today's Bear of the Day.
I'm talking about Zacks Rank #5 (Strong Sell) Rio Tinto. Rio Tinto Group engages in exploring, mining, and processing mineral resources worldwide. The company offers aluminum, copper, diamonds, gold, borates, titanium dioxide, salt, iron ore, and lithium. It also owns and operates open pit and underground mines, mills, refineries, smelters, power stations, and research and service facilities.
The reason for the unfavorable Zacks Rank is the series of negative earnings estimate revisions coming from analysts. Over the last sixty days, three analysts have cut their estimates for the current year and next year. The negative moves have cut current year estimates down from $12.21 to $9.61 while next year's number is off from $9.09 to $7.91. That means that EPS is actually forecast to contract by 26.81% this year and 17.66% next year. That's coming on revenue growth of 16.2% this year and a contraction of 10.79% this year.
Additional content:
3 Medical Device Stocks with Potential to Fight Recession Risk
The U.S. economy as well as other global economies had a gloomy first-half 2022 due to several challenges rising from resurgence in COVID-19 infections. Although there has been a surge in hiring by companies and spending by consumers so far this year, two major macro factors are pointing to an impending recession in the U.S. economy.
Macro Factors Indicating Recession
The S&P 500 has entered into bear territory, having declined 26% so far in 2022. A 20% correction in a year in any financial asset price is typically defined as a bear market for the asset. Meanwhile, the U.S. Bureau of Economic Analysis ("BEA") announced that the U.S. gross domestic product ("GDP") contracted 1.6% quarter over quarter during the first quarter of 2022.
The Federal Reserve Bank of Atlanta is predicting another similar contraction in the U.S. economy during the second quarter as well. A contraction in the U.S. GDP for two consecutive quarters will indicate that the country has already entered a recession. The first or advance estimate for the second quarter U.S. GDP will be released by the BEA on Jul 28.
Recession-Proof Investments
The fear about an impending or actual recession may lead to heightened volatility in the stock market and more correction in stock prices. This can also be an opportune moment to buy stocks with strong growth potential at attractive prices. These stocks are likely to provide a cushion to the portfolio with their potential market-beating performance. One of the safest options to invest in during a recession is healthcare, which is majorly recession-proof, as there will always be demand for prescription drugs, medical devices for diagnosis and treatments, and healthcare services.
Moreover, stocks with strong fundamentals are likely to grow faster and create wealth at an accelerated pace during the recovery from the recession. Historically, the S&P 500 has gained approximately 600% from the lows touched during the recession in 2008-09 with many stocks giving much more returns.
Here we discuss three stocks, which have a VGM Score of A or B, reflecting robust growth potential for the upcoming period. Our research shows that stocks with a VGM Score of A or B when combined with a Zacks Rank #1 (Strong Buy) or 2 (Buy) offer the best upside potential. You can see the complete list of today's Zacks #1 Rank stocks here.
The stocks include McKesson, Patterson Companies and AMN Healthcare Services. The stock price of these companies has risen so far this year despite the decline in the S&P 500 Index as well as a decrease in the broader Medical sector of 15.5%.
McKesson
The company carries a Zacks Rank #2. McKesson has a VGM Score of A. The Zacks Consensus Estimate for earnings has moved 0.6% and 0.1% north for fiscal 2023 and 2024, respectively, in the past 60 days. Shares of MCK have rallied 32.6% so far this year.
A strong position in the Distribution market continues to favor the stock. The company played a crucial role in the COVID-19 response efforts in the United States and abroad via the distribution of COVID-19 vaccines, ancillary supply kits, and COVID-19 tests. Amid rising cases of COVID-19 infections and increasing priority for COVID vaccination McKesson's prospects are set to get a boost.
The company carries a Zacks Rank #2. Patterson Companies has a VGM Score of B. The Zacks Consensus Estimate for earnings has moved up 2.2% and 2.5% for fiscal 2023 and 2024, respectively, in the past 60 days. Shares of the company have rallied 4.7% year to date.
A prudent cost savings approach and solid sales execution continue to work in favor of Patterson Companies. The improvement in the Dental business and sustained momentum in the Animal Health business will likely aid PDCO going forward.
The company sports a Zacks Rank #1. AMN Healthcare has a VGM Score of B. The Zacks Consensus Estimate for earnings has moved 2.7% and 1.3% north for 2022 and 2023, respectively, in the past 60 days. Shares of the company have rallied 0.3% so far this year.
AMN Healthcare saw robust results across each of its core arms, and a surge in its top and bottom lines in first-quarter 2022.Strength in the healthcare Managed Services Program (MSP) and a broad array of services augur well for AMN.The recent Connetics USA buyout looks promising.
Our 5 best-performing strategies have blown away the S&P's impressive +28.8% gain in 2021. Amazingly, they soared +40.3%, +48.2%, +67.6%, +94.4%, and +95.3%. Today you can access their live picks without cost or obligation.
Zacks.com provides investment resources and informs you of these resources, which you may choose to use in making your own investment decisions. Zacks is providing information on this resource to you subject to the Zacks "Terms and Conditions of Service" disclaimer. www.zacks.com/disclaimer.
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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Potbelly's and Rio Tinto have been highlighted as Zacks Bull and Bear of the Day
For Immediate Release
Chicago, IL – July 21, 2022 – Zacks Equity Research shares Potbelly's (PBPB - Free Report) as the Bull of the Day and Rio Tinto (RIO - Free Report) as the Bear of the Day. In addition, Zacks Equity Research provides analysis on McKesson (MCK - Free Report) , Patterson Companies (PDCO - Free Report) and AMN Healthcare Services (AMN - Free Report) .
Here is a synopsis of all five stocks:
Bull of the Day:
Finally risk assets are back en vogue. It helped set off a rally across the board. With the huge numbers of the last couple days, it might feel like the dart board approach is back. Sure, that might work for a few weeks, but eventually, the cream will rise to the top. Stocks with the strongest earnings trends have the highest likelihood of continued profits.
One way to uncover these trends is by leaning on the Zacks Rank. Today's Bull of the Day is a stock in the good graces of our Zacks Rank. It's sandwich restaurant Potbelly's. Potbelly Corporation is a neighborhood sandwich concept. The Company manages establishments for consuming food on premises to offer sandwiches, salads, soups, chili, chips, cookies, ice cream, and smoothies. It serves customers throughout the United States. Potbelly Corporation is headquartered in Chicago, Illinois.
The reason for the favorable Zacks Rank is the recent positive earnings estimate revisions coming from analysts. Over the last sixty days, analysts have been upping the ante for the current year and next year. The bullish moves have pushed up our Zacks Consensus Estimates for the current year from a 33-cent loss to a small 3-cent loss. Next year's EPS number is up from a 9-cent loss to a 5-cent profit.
That hasn't helped the stock much. Shares have dropped significantly since their June 2021 highs above $9. Nearly half that now, the stock trades at $5.19 while the 52-week high is just above $7. Technical pressures remain above at the 50 and 200-day which are both negatively sloped. A four-day rally has the stock up over 7%.
Bear of the Day:
Inflation has been a boon to several industries. Among them, anything having to do with basic materials or mining. Higher prices meant higher profits for these stocks. However, that trend is coming to an end. Earnings estimates have been moving the wrong direction for this industry. It's taken the Mining – Miscellaneous industry down to the Bottom 27% of our Zacks Industry Rank. One of these stocks is today's Bear of the Day.
I'm talking about Zacks Rank #5 (Strong Sell) Rio Tinto. Rio Tinto Group engages in exploring, mining, and processing mineral resources worldwide. The company offers aluminum, copper, diamonds, gold, borates, titanium dioxide, salt, iron ore, and lithium. It also owns and operates open pit and underground mines, mills, refineries, smelters, power stations, and research and service facilities.
The reason for the unfavorable Zacks Rank is the series of negative earnings estimate revisions coming from analysts. Over the last sixty days, three analysts have cut their estimates for the current year and next year. The negative moves have cut current year estimates down from $12.21 to $9.61 while next year's number is off from $9.09 to $7.91. That means that EPS is actually forecast to contract by 26.81% this year and 17.66% next year. That's coming on revenue growth of 16.2% this year and a contraction of 10.79% this year.
Additional content:
3 Medical Device Stocks with Potential to Fight Recession Risk
The U.S. economy as well as other global economies had a gloomy first-half 2022 due to several challenges rising from resurgence in COVID-19 infections. Although there has been a surge in hiring by companies and spending by consumers so far this year, two major macro factors are pointing to an impending recession in the U.S. economy.
Macro Factors Indicating Recession
The S&P 500 has entered into bear territory, having declined 26% so far in 2022. A 20% correction in a year in any financial asset price is typically defined as a bear market for the asset. Meanwhile, the U.S. Bureau of Economic Analysis ("BEA") announced that the U.S. gross domestic product ("GDP") contracted 1.6% quarter over quarter during the first quarter of 2022.
The Federal Reserve Bank of Atlanta is predicting another similar contraction in the U.S. economy during the second quarter as well. A contraction in the U.S. GDP for two consecutive quarters will indicate that the country has already entered a recession. The first or advance estimate for the second quarter U.S. GDP will be released by the BEA on Jul 28.
Recession-Proof Investments
The fear about an impending or actual recession may lead to heightened volatility in the stock market and more correction in stock prices. This can also be an opportune moment to buy stocks with strong growth potential at attractive prices. These stocks are likely to provide a cushion to the portfolio with their potential market-beating performance. One of the safest options to invest in during a recession is healthcare, which is majorly recession-proof, as there will always be demand for prescription drugs, medical devices for diagnosis and treatments, and healthcare services.
Moreover, stocks with strong fundamentals are likely to grow faster and create wealth at an accelerated pace during the recovery from the recession. Historically, the S&P 500 has gained approximately 600% from the lows touched during the recession in 2008-09 with many stocks giving much more returns.
Here we discuss three stocks, which have a VGM Score of A or B, reflecting robust growth potential for the upcoming period. Our research shows that stocks with a VGM Score of A or B when combined with a Zacks Rank #1 (Strong Buy) or 2 (Buy) offer the best upside potential. You can see the complete list of today's Zacks #1 Rank stocks here.
The stocks include McKesson, Patterson Companies and AMN Healthcare Services. The stock price of these companies has risen so far this year despite the decline in the S&P 500 Index as well as a decrease in the broader Medical sector of 15.5%.
McKesson
The company carries a Zacks Rank #2. McKesson has a VGM Score of A. The Zacks Consensus Estimate for earnings has moved 0.6% and 0.1% north for fiscal 2023 and 2024, respectively, in the past 60 days. Shares of MCK have rallied 32.6% so far this year.
A strong position in the Distribution market continues to favor the stock. The company played a crucial role in the COVID-19 response efforts in the United States and abroad via the distribution of COVID-19 vaccines, ancillary supply kits, and COVID-19 tests. Amid rising cases of COVID-19 infections and increasing priority for COVID vaccination McKesson's prospects are set to get a boost.
McKesson Corporation price | McKesson Corporation Quote
Patterson Companies
The company carries a Zacks Rank #2. Patterson Companies has a VGM Score of B. The Zacks Consensus Estimate for earnings has moved up 2.2% and 2.5% for fiscal 2023 and 2024, respectively, in the past 60 days. Shares of the company have rallied 4.7% year to date.
A prudent cost savings approach and solid sales execution continue to work in favor of Patterson Companies. The improvement in the Dental business and sustained momentum in the Animal Health business will likely aid PDCO going forward.
Patterson Companies, Inc. price | Patterson Companies, Inc. Quote
AMN Healthcare Services
The company sports a Zacks Rank #1. AMN Healthcare has a VGM Score of B. The Zacks Consensus Estimate for earnings has moved 2.7% and 1.3% north for 2022 and 2023, respectively, in the past 60 days. Shares of the company have rallied 0.3% so far this year.
AMN Healthcare saw robust results across each of its core arms, and a surge in its top and bottom lines in first-quarter 2022.Strength in the healthcare Managed Services Program (MSP) and a broad array of services augur well for AMN.The recent Connetics USA buyout looks promising.
AMN Healthcare Services Inc price | AMN Healthcare Services Inc Quote
Why Haven't You Looked at Zacks' Top Stocks?
Our 5 best-performing strategies have blown away the S&P's impressive +28.8% gain in 2021. Amazingly, they soared +40.3%, +48.2%, +67.6%, +94.4%, and +95.3%. Today you can access their live picks without cost or obligation.
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Zacks.com provides investment resources and informs you of these resources, which you may choose to use in making your own investment decisions. Zacks is providing information on this resource to you subject to the Zacks "Terms and Conditions of Service" disclaimer. www.zacks.com/disclaimer.
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.