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The Zacks Analyst Blog Highlights Archer Daniels Midland, Carter Bankshares, W.R. Berkley, Lamb Weston and AeroVironment
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For Immediate Release
Chicago, IL – November 16, 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: Archer Daniels Midland (ADM - Free Report) , Carter Bankshares (CARE - Free Report) , W.R. Berkley (WRB - Free Report) , Lamb Weston (LW - Free Report) and AeroVironment (AVAV - Free Report) .
Here are highlights from Tuesday’s Analyst Blog:
5 Stocks to Play a Topsy-Turvy Wall Street
Major stock indexes in the United States posted their biggest gains in months last week on signs of inflation moderating. Soft inflation data, undeniably, bolstered expectations among investors that there could be a shift in the Federal Reserve’s present hawkish stance, which is unfavorably impacting consumers’ spending habits and deterring economic growth.
For the week, the broader S&P 500 jumped almost 6%, while the tech-laden Nasdaq climbed around 8%. Similarly, the Dow notched a gain of more than 5% for the week and is apparently on track to register its best October on record. After all, the consumer price index, a primary inflation barometer, logged its smallest 12-month jump last month since January.
However, stocks at large snapped last week’s winning streak, with all the major bourses closing in the negative territory on Nov 14. This is because Fed governor Christopher J. Waller cautioned that the Fed’s fight to curb inflation has “ways to go.”
Waller believes that investors have overreacted to the inflation data. And rightly so, since prices of household staple items like food, shelter and energy continue to rise at a record pace, as mentioned by the U.S. Bureau of Labor Statistics last week.
A New York Fed’s monthly survey also added that inflation is projected to rise to 5.9% on worries that there can be an unforeseen jump in gasoline prices in the near term. Respondents expect gas prices to jump 4.8% next year. In fact, the survey’s three-year as well as five-year inflation outlook also accelerated.
Thus, the Fed could easily tighten its monetary policy further, leading to higher borrowing costs and further gyration in the stock market. Lest we forget, the stock market did rally in the months of July and August on hopes that the Fed may slow down its rate hikes.
However, Fed Chair Jerome Powell had clarified that the Fed isn’t going to back down on its commitment to fight inflation, which is anyhow way ahead of its target of 2%. This eventually led to higher bouts of market volatility.
Hence, with the broader stock market struggling for direction as investors continue to gauge the Fed’s policy path, it’s prudent to invest in stocks that offer risk-adjusted returns at this point in time. Stocks that are less volatile than the markets they trade in, or in other words, low beta stocks (ranges from 0 to 1) have been considered.
But low-beta stocks provide fewer returns. Therefore, stocks that offer positive earnings estimate revisions, predominantly in the past two-month period, have also been well thought-out. Rising earnings estimates indicate that the company is fundamentally sound, and is well-poised to outperform the market in the near future. To top it, these stocks flaunt a Zacks Rank #1 (Strong Buy). You can see the complete list of today’s Zacks Rank #1 stocks here.
Archer Daniels Midland is one of the leading producers of food and beverage ingredients as well as goods made from various agricultural products.
ADM currently has a beta of 0.85. The Zacks Consensus Estimate for its current-year earnings has risen 9.3% over the past 60 days. ADM’s expected earnings growth rate for the current year is 42.6%. Its projected earnings growth rate for the next five-year period is 7.2%.
Carter Bankshares is a bank holding company and the parent company of Carter Bank & Trust.
CARE, at present, has a beta of 0.96. The Zacks Consensus Estimate for its current-year earnings has risen 8.2% over the past 60 days. CARE’s expected earnings growth rate for the current year is 84.1%. Its projected earnings growth rate for the next year is 23.4%.
W.R. Berkley is one of the nation’s largest commercial lines property casualty insurance providers.
WRB currently has a beta of 0.64. The Zacks Consensus Estimate for its current-year earnings has risen 4.6% over the past 60 days. WRB’s expected earnings growth rate for the current year is 26.2%. Its projected earnings growth rate for the next five-year period is 9%.
Lamb Weston is a leading global manufacturer, marketer and distributor of value-added frozen potato products, particularly French fries, and provides a range of appetizers.
LW presently has a beta of 0.54. The Zacks Consensus Estimate for its current-year earnings has risen 8.6% over the past 60 days. LW’s expected earnings growth rate for the current year is 45.7%. Its projected earnings growth rate for the next five-year period is 26.9%.
AeroVironment designs, develops, produces and operates a portfolio of products and services for government agencies, businesses and consumers. AeroVironment supplies UAS, tactical missile systems and related services primarily to organizations within the United States Department of Defense.
AVAV, at present, has a beta of 0.54. The Zacks Consensus Estimate for its current-year earnings has risen 4.5% over the past 60 days. AVAV’s expected earnings growth rate for the current year is 30.4%. Its projected earnings growth rate for the next year is 60.7%.
Shares of Archer Daniels Midland, Carter Bankshares, W.R. Berkley, Lamb Weston and AeroVironment have gained 39.5%, 18.6%, 24.9%, 26.4% and 44.4%, respectively, so far this year.
Why Haven’t You Looked at Zacks' Top Stocks?
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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.
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The Zacks Analyst Blog Highlights Archer Daniels Midland, Carter Bankshares, W.R. Berkley, Lamb Weston and AeroVironment
For Immediate Release
Chicago, IL – November 16, 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: Archer Daniels Midland (ADM - Free Report) , Carter Bankshares (CARE - Free Report) , W.R. Berkley (WRB - Free Report) , Lamb Weston (LW - Free Report) and AeroVironment (AVAV - Free Report) .
Here are highlights from Tuesday’s Analyst Blog:
5 Stocks to Play a Topsy-Turvy Wall Street
Major stock indexes in the United States posted their biggest gains in months last week on signs of inflation moderating. Soft inflation data, undeniably, bolstered expectations among investors that there could be a shift in the Federal Reserve’s present hawkish stance, which is unfavorably impacting consumers’ spending habits and deterring economic growth.
For the week, the broader S&P 500 jumped almost 6%, while the tech-laden Nasdaq climbed around 8%. Similarly, the Dow notched a gain of more than 5% for the week and is apparently on track to register its best October on record. After all, the consumer price index, a primary inflation barometer, logged its smallest 12-month jump last month since January.
However, stocks at large snapped last week’s winning streak, with all the major bourses closing in the negative territory on Nov 14. This is because Fed governor Christopher J. Waller cautioned that the Fed’s fight to curb inflation has “ways to go.”
Waller believes that investors have overreacted to the inflation data. And rightly so, since prices of household staple items like food, shelter and energy continue to rise at a record pace, as mentioned by the U.S. Bureau of Labor Statistics last week.
A New York Fed’s monthly survey also added that inflation is projected to rise to 5.9% on worries that there can be an unforeseen jump in gasoline prices in the near term. Respondents expect gas prices to jump 4.8% next year. In fact, the survey’s three-year as well as five-year inflation outlook also accelerated.
Thus, the Fed could easily tighten its monetary policy further, leading to higher borrowing costs and further gyration in the stock market. Lest we forget, the stock market did rally in the months of July and August on hopes that the Fed may slow down its rate hikes.
However, Fed Chair Jerome Powell had clarified that the Fed isn’t going to back down on its commitment to fight inflation, which is anyhow way ahead of its target of 2%. This eventually led to higher bouts of market volatility.
Hence, with the broader stock market struggling for direction as investors continue to gauge the Fed’s policy path, it’s prudent to invest in stocks that offer risk-adjusted returns at this point in time. Stocks that are less volatile than the markets they trade in, or in other words, low beta stocks (ranges from 0 to 1) have been considered.
But low-beta stocks provide fewer returns. Therefore, stocks that offer positive earnings estimate revisions, predominantly in the past two-month period, have also been well thought-out. Rising earnings estimates indicate that the company is fundamentally sound, and is well-poised to outperform the market in the near future. To top it, these stocks flaunt a Zacks Rank #1 (Strong Buy). You can see the complete list of today’s Zacks Rank #1 stocks here.
Archer Daniels Midland is one of the leading producers of food and beverage ingredients as well as goods made from various agricultural products.
ADM currently has a beta of 0.85. The Zacks Consensus Estimate for its current-year earnings has risen 9.3% over the past 60 days. ADM’s expected earnings growth rate for the current year is 42.6%. Its projected earnings growth rate for the next five-year period is 7.2%.
Carter Bankshares is a bank holding company and the parent company of Carter Bank & Trust.
CARE, at present, has a beta of 0.96. The Zacks Consensus Estimate for its current-year earnings has risen 8.2% over the past 60 days. CARE’s expected earnings growth rate for the current year is 84.1%. Its projected earnings growth rate for the next year is 23.4%.
W.R. Berkley is one of the nation’s largest commercial lines property casualty insurance providers.
WRB currently has a beta of 0.64. The Zacks Consensus Estimate for its current-year earnings has risen 4.6% over the past 60 days. WRB’s expected earnings growth rate for the current year is 26.2%. Its projected earnings growth rate for the next five-year period is 9%.
Lamb Weston is a leading global manufacturer, marketer and distributor of value-added frozen potato products, particularly French fries, and provides a range of appetizers.
LW presently has a beta of 0.54. The Zacks Consensus Estimate for its current-year earnings has risen 8.6% over the past 60 days. LW’s expected earnings growth rate for the current year is 45.7%. Its projected earnings growth rate for the next five-year period is 26.9%.
AeroVironment designs, develops, produces and operates a portfolio of products and services for government agencies, businesses and consumers. AeroVironment supplies UAS, tactical missile systems and related services primarily to organizations within the United States Department of Defense.
AVAV, at present, has a beta of 0.54. The Zacks Consensus Estimate for its current-year earnings has risen 4.5% over the past 60 days. AVAV’s expected earnings growth rate for the current year is 30.4%. Its projected earnings growth rate for the next year is 60.7%.
Shares of Archer Daniels Midland, Carter Bankshares, W.R. Berkley, Lamb Weston and AeroVironment have gained 39.5%, 18.6%, 24.9%, 26.4% and 44.4%, respectively, so far this year.
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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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.