We use cookies to understand how you use our site and to improve your experience. This includes personalizing content and advertising. To learn more, click here. By continuing to use our site, you accept our use of cookies, revised Privacy Policy and Terms of Service.
You are being directed to ZacksTrade, a division of LBMZ Securities and licensed broker-dealer. ZacksTrade and Zacks.com are separate companies. The web link between the two companies is not a solicitation or offer to invest in a particular security or type of security. ZacksTrade does not endorse or adopt any particular investment strategy, any analyst opinion/rating/report or any approach to evaluating individual securities.
If you wish to go to ZacksTrade, click OK. If you do not, click Cancel.
The Zacks Analyst Blog Highlights Procter & Gamble, Amazon.com, Verizon Communications, McKesson Corporation and D.R. Horton
Read MoreHide Full Article
For Immediate Release
Chicago, IL – September 20, 2023 – 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: The Procter & Gamble Co. (PG - Free Report) , Amazon.com (AMZN - Free Report) , Verizon Communications (VZ - Free Report) , McKesson Corporation (MCK - Free Report) and D.R. Horton Inc. (DHI - Free Report) .
Here are highlights from Tuesday’s Analyst Blog:
5 Cash Cow Stocks to Buy Now
The appeal for cash cows has been on the rise in recent weeks, given the current stock market volatility and uncertainty. Investors believe that "cash is king" in the current environment of persistent inflation, high interest rates, and a potential economic slowdown.
A cash cow is a company or a business unit in a mature, slow-growth industry. Cash cows have a large share of the market and require little investment. These companies achieve a commanding position within their industry and generate consistent free cash flow. They are the profit engines of a diversified portfolio, providing the resources required for other business units to grow and invest in new opportunities.
While there are several cash cow stocks, we have highlighted five of them having a Zacks Rank #1 (Strong Buy) or #2 (Buy). These include The Procter & Gamble Co., Amazon.com, Verizon Communications, McKesson Corporation (MCK) and D.R. Horton Inc.. You can see the complete list of today's Zacks #1 Rank stocks here.
Key Characteristics of Cash Cow Companies
Steady Revenue Streams: Cash cows thrive in mature markets where demand has stabilized. Their products or services achieve widespread acceptance, resulting in a consistent revenue stream.
High Market Share: These companies typically have a dominant share of the market, often due to years of successful operations and brand establishment.
Operational Efficiency: Cash cows are known for their streamlined operations, efficient cost management and optimized production processes, which allow them to generate substantial profits with relatively lower expenses.
Strong Brand Identity: Building a strong brand identity over the years helps cash cow companies maintain customer loyalty and withstand market fluctuations.
Cash Generation: As the name suggests, these companies generate ample cash flow. This surplus cash can be reinvested into the business, used for dividends, or allocated to other ventures within the company's portfolio.
Current Market Trends
After a solid first half, Wall Street lost momentum in the second half. Worries over longer-than-expected higher interest rates and a weakening Chinese economy have been weighing on investors' sentiment.
Fed officials have signaled they are prepared to lift borrowing costs again if the economy and inflation don't cool further. Both retail sales and inflation in the United States came in hotter than expected for August, suggesting resilience in the economy and persistent price pressure, making a case for more Fed rate hikes.
The latest data also showed that U.S. industrial production continued to expand in August, beating expectations, even though the pace of increase decelerated due to sluggish manufacturing growth. Last week, the United Auto Workers union officially launched a historic strike at select Big Three automaker plants after the failure of a new contract. This acted as the latest headwind in the stock market.
Stocks to Bet On
Procter & Gamble is a branded consumer products company, which markets its products in more than 180 countries primarily through mass merchandisers, grocery stores, membership club stores, drug stores, department stores, distributors, baby stores, specialty beauty stores, e-commerce, high-frequency stores and pharmacies.
With a market cap of $361.8 billion, the stock has an expected earnings growth rate of 8.1% for the fiscal year (ending June 2024). Procter & Gamble has a Zacks Rank #2.
Amazon.com is one of the largest e-commerce providers, with sprawling operations in North America, now spreading across the globe. It has a market cap of $1.5 billion and has an estimated earnings growth of 214.1%.
Amazon has a Zacks Rank #1 and a Growth Score of A.
Verizon offers communication services in the form of local phone service, long-distance, wireless and data services. The company is expected to post an earnings decline of 8.7% for this year.
With a market cap of $142 billion, Verizon has a Zacks Rank #2 and a Value Score of A.
McKesson is a healthcare services and information technology company. It has a market cap of $56.7 billion and has an estimated earnings growth of 4.2%.
McKesson has a Zacks Rank #2 and a VGM Score of A.
D.R. Horton is one of the leading national homebuilders, primarily engaged in the construction and sale of single-family houses both in the entry-level and move-up markets. The company has an estimated earnings growth rate of 5.8% for the fiscal year ending September 2024.
With a market cap of $38 billion, D.R. Horton has a Zacks Rank #1 and a VGM Score of B.
Why Haven't You Looked at Zacks' Top Stocks?
Since 2000, our top stock-picking strategies have blown away the S&P's +6.2 average gain per year. Amazingly, they soared with average gains of +46.4%, +49.5% and +55.2% per year. Today you can access their live picks without cost or obligation.
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.
See More Zacks Research for These Tickers
Normally $25 each - click below to receive one report FREE:
Image: Bigstock
The Zacks Analyst Blog Highlights Procter & Gamble, Amazon.com, Verizon Communications, McKesson Corporation and D.R. Horton
For Immediate Release
Chicago, IL – September 20, 2023 – 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: The Procter & Gamble Co. (PG - Free Report) , Amazon.com (AMZN - Free Report) , Verizon Communications (VZ - Free Report) , McKesson Corporation (MCK - Free Report) and D.R. Horton Inc. (DHI - Free Report) .
Here are highlights from Tuesday’s Analyst Blog:
5 Cash Cow Stocks to Buy Now
The appeal for cash cows has been on the rise in recent weeks, given the current stock market volatility and uncertainty. Investors believe that "cash is king" in the current environment of persistent inflation, high interest rates, and a potential economic slowdown.
A cash cow is a company or a business unit in a mature, slow-growth industry. Cash cows have a large share of the market and require little investment. These companies achieve a commanding position within their industry and generate consistent free cash flow. They are the profit engines of a diversified portfolio, providing the resources required for other business units to grow and invest in new opportunities.
While there are several cash cow stocks, we have highlighted five of them having a Zacks Rank #1 (Strong Buy) or #2 (Buy). These include The Procter & Gamble Co., Amazon.com, Verizon Communications, McKesson Corporation (MCK) and D.R. Horton Inc.. You can see the complete list of today's Zacks #1 Rank stocks here.
Key Characteristics of Cash Cow Companies
Steady Revenue Streams: Cash cows thrive in mature markets where demand has stabilized. Their products or services achieve widespread acceptance, resulting in a consistent revenue stream.
High Market Share: These companies typically have a dominant share of the market, often due to years of successful operations and brand establishment.
Operational Efficiency: Cash cows are known for their streamlined operations, efficient cost management and optimized production processes, which allow them to generate substantial profits with relatively lower expenses.
Strong Brand Identity: Building a strong brand identity over the years helps cash cow companies maintain customer loyalty and withstand market fluctuations.
Cash Generation: As the name suggests, these companies generate ample cash flow. This surplus cash can be reinvested into the business, used for dividends, or allocated to other ventures within the company's portfolio.
Current Market Trends
After a solid first half, Wall Street lost momentum in the second half. Worries over longer-than-expected higher interest rates and a weakening Chinese economy have been weighing on investors' sentiment.
Fed officials have signaled they are prepared to lift borrowing costs again if the economy and inflation don't cool further. Both retail sales and inflation in the United States came in hotter than expected for August, suggesting resilience in the economy and persistent price pressure, making a case for more Fed rate hikes.
The latest data also showed that U.S. industrial production continued to expand in August, beating expectations, even though the pace of increase decelerated due to sluggish manufacturing growth. Last week, the United Auto Workers union officially launched a historic strike at select Big Three automaker plants after the failure of a new contract. This acted as the latest headwind in the stock market.
Stocks to Bet On
Procter & Gamble is a branded consumer products company, which markets its products in more than 180 countries primarily through mass merchandisers, grocery stores, membership club stores, drug stores, department stores, distributors, baby stores, specialty beauty stores, e-commerce, high-frequency stores and pharmacies.
With a market cap of $361.8 billion, the stock has an expected earnings growth rate of 8.1% for the fiscal year (ending June 2024). Procter & Gamble has a Zacks Rank #2.
Amazon.com is one of the largest e-commerce providers, with sprawling operations in North America, now spreading across the globe. It has a market cap of $1.5 billion and has an estimated earnings growth of 214.1%.
Amazon has a Zacks Rank #1 and a Growth Score of A.
Verizon offers communication services in the form of local phone service, long-distance, wireless and data services. The company is expected to post an earnings decline of 8.7% for this year.
With a market cap of $142 billion, Verizon has a Zacks Rank #2 and a Value Score of A.
McKesson is a healthcare services and information technology company. It has a market cap of $56.7 billion and has an estimated earnings growth of 4.2%.
McKesson has a Zacks Rank #2 and a VGM Score of A.
D.R. Horton is one of the leading national homebuilders, primarily engaged in the construction and sale of single-family houses both in the entry-level and move-up markets. The company has an estimated earnings growth rate of 5.8% for the fiscal year ending September 2024.
With a market cap of $38 billion, D.R. Horton has a Zacks Rank #1 and a VGM Score of B.
Why Haven't You Looked at Zacks' Top Stocks?
Since 2000, our top stock-picking strategies have blown away the S&P's +6.2 average gain per year. Amazingly, they soared with average gains of +46.4%, +49.5% and +55.2% per year. Today you can access their live picks without cost or obligation.
See Stocks Free >>
Media Contact
Zacks Investment Research
800-767-3771 ext. 9339
support@zacks.com
https://www.zacks.com
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.