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The Zacks Analyst Blog Highlights: Centene, Western Digital, Concho Resources, Pioneer Natural Resources and Tyson Foods
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For Immediate Release
Chicago, IL – April 4, 2018 – 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 Centene Corporation (CNC - Free Report) , Western Digital Corporation (WDC - Free Report) , Concho Resources Inc. , Pioneer Natural Resources Company (PXD - Free Report) and Tyson Foods Inc. (TSN - Free Report) .
Could April Be a Better Month for Stocks? 5 Large-Cap Picks
After enduring the toughest start to the year in recent times, markets have started the second quarter on a sorry note. U.S. stocks have had their most disappointing start to April since 1929. And now trade war and tech stock related concerns are threatening to cause a deeper correction for the markets.
Historically, however, April has been a good month for stock gains. Also, first-quarter earnings are likely to be strong, coming on the back of strong fourth numbers. A flurry of recent reports also suggests that the economy continues to be resilient.
And it remains to be seen whether Trump follows up on all the warnings he has issued recently. Taking all these factors into consideration, picking large-cap stocks which promise considerable returns may be a good idea at this point.
April Historically Strong for Stocks
Going by historical data, April has traditionally been a productive month for U.S. stocks. Data from the Stock Trader’s Almanac for 2018 shows that the Dow has gained 1.9% on average during April since 1950. This means that April is the most profitable month for the Dow, going by average monthly returns.
Other major indexes also fair well during April, per the Almanac. For both the small-cap heavy Russell 2000 and the S&P 500, April is the third-best month of the year. Both these indexes have increased 1.5% on the average every April since 1950. April is also the fourth-best month for the Nasdaq. The tech-heavy index has notched up a 1.4% average gain during the month, per historical data.
Data from independent broker-dealer LPL Financial shows that gains in April have been particularly notable during the last few years. The S&P 500 has ended April with gains 90% of the time over the past 10 years. The index has notched up an average gain of 2.2% over this period. The success rate of 90% is the highest for any month during this period. Also, average monthly gains are the third highest, after March and July.
Strong Economy, Q1 Earnings to Boost Stocks
The U.S. economy had finished 2017 on a strong note, growing faster during the fourth quarter than earlier estimated. Business investment expanded during this period even as consumer spending hit a three-year high.
The first economic reports for April indicate that the economy continues to be resilient. Though the ISM Manufacturing Index dipped slightly, the economy as a whole expanded for the 107th consecutive month. Construction spending also inched up in February.
Meanwhile, the outlook for first-quarter earnings is particularly bright, coming on the back of strong results for the fourth quarter. As of Mar 23, total Q1 earnings for the S&P 500 index were expected to be up +15.9% from the same period last year on +7.3% higher revenues. This would follow +13.5% earnings growth on +8.5% revenue growth in the preceding period. (Read: Handicapping the Q1 Earnings Season)
Our Choices
Stocks have recently been buffeted by the twin concerns of an impending trade war with China and losses for tech stocks. While losses for tech stocks are likely temporary, it remains to be seen whether Trump follows up on his warnings or opts for a compromise. Meanwhile, April remains a historically good month for stocks. Also, while the economy remains strong, prospects for first-quarter earnings remain encouraging.
Given this backdrop, it seems prudent to bet on relatively stable alternatives which hold out the promise of considerable returns. Large-cap stocks are relatively safer bets. At the same time, it is important to consider only those which offer the promise of short-term benefits and the prospect of good long-term performance. However, picking winning stocks may be difficult.
This is where our VGM Score comes in. Here V stands for Value, G for Growth and M for Momentum and the score is a weighted combination of these three scores. Such a score allows you to eliminate the negative aspects of stocks and select winners. However, it is important to keep in mind that each Style Score will carry a different weight while arriving at a VGM score.
Centene Corporation is a well-diversified, multi-national healthcare company that primarily provides a set of services to the government-sponsored healthcare programs.
Centene has a VGM Score of A. The company’s projected growth rate for the current year is 40.9%. The Zacks Consensus Estimate for the current year has improved by 21% over the last 60 days.
Western Digital Corporation headquartered in Irvine, California, is one of the largest hard disk drive (HDD) producers in the United States.
Western Digital has a VGM Score of A. The company’s projected growth rate for the current year is 52%.The Zacks Consensus Estimate for the current year has improved by 1.3% over the last 30 days.
Concho Resources Inc. based in Midland, Texas, is an independent oil and gas exploration and production company with producing properties mainly in the Permian Basin of southeast New Mexico and west Texas.
Concho Resources a VGM Score of B. The company has expected earnings growth of 81.5% for the current year. The Zacks Consensus Estimate for the current year has improved by 3.7% over the last 30 days.
Pioneer Natural Resources Company is independent oil and gas exploration and production company, the asset base of which is anchored by the Spraberry oil field located in West Texas, the Hugoton gas field in Southwest Kansas and the West Panhandle gas field in Texas Panhandle.
Pioneer Natural Resources has a VGM Score of B. The company’s expected earnings growth for the current year is more than 100%. The Zacks Consensus Estimate for the current year has improved by 9.4% over the last 30 days.
Tyson Foods Inc. is the biggest U.S. chicken company and produces, distributes and markets chicken, beef, pork as well as prepared foods.
Tyson Foods has a VGM Score of B. The company has expected earnings growth of 25.3% for the current year. The Zacks Consensus Estimate for the current year has improved by 14.3% over the last 60 days.
The Hottest Tech Mega-Trend of All
Last year, it generated $8 billion in global revenues. By 2020, it's predicted to blast through the roof to $47 billion. Famed investor Mark Cuban says it will produce "the world's first trillionaires," but that should still leave plenty of money for regular investors who make the right trades early.
Zacks Equity Research provides the best of quantitative and qualitative analysis to help investors know what stocks to buy and which to sell for the long-term.
Continuous coverage is provided for a universe of 1,150 publicly traded stocks. Our analysts are organized by industry which gives them keen insights to developments that affect company profits and stock performance. Recommendations and target prices are six-month time horizons.
Strong Stocks that Should Be in the News
Many are little publicized and fly under the Wall Street radar. They're virtually unknown to the general public. Yet today's 220 Zacks Rank #1 "Strong Buys" were generated by the stock-picking system that has nearly tripled the market from 1988 through 2015. Its average gain has been a stellar +26% per year.See these high-potential stocks free >>.
Zacks Investment Research is under common control with affiliated entities (including a broker-dealer and an investment adviser), which may engage in transactions involving the foregoing securities for the clients of such affiliates.
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: Centene, Western Digital, Concho Resources, Pioneer Natural Resources and Tyson Foods
For Immediate Release
Chicago, IL – April 4, 2018 – 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 Centene Corporation (CNC - Free Report) , Western Digital Corporation (WDC - Free Report) , Concho Resources Inc. , Pioneer Natural Resources Company (PXD - Free Report) and Tyson Foods Inc. (TSN - Free Report) .
Today, Zacks is promoting its ''Buy'' stock recommendations. Get #1 Stock of the Day pick for free.
Here are highlights from Tuesday’s Analyst Blog:
Could April Be a Better Month for Stocks? 5 Large-Cap Picks
After enduring the toughest start to the year in recent times, markets have started the second quarter on a sorry note. U.S. stocks have had their most disappointing start to April since 1929. And now trade war and tech stock related concerns are threatening to cause a deeper correction for the markets.
Historically, however, April has been a good month for stock gains. Also, first-quarter earnings are likely to be strong, coming on the back of strong fourth numbers. A flurry of recent reports also suggests that the economy continues to be resilient.
And it remains to be seen whether Trump follows up on all the warnings he has issued recently. Taking all these factors into consideration, picking large-cap stocks which promise considerable returns may be a good idea at this point.
April Historically Strong for Stocks
Going by historical data, April has traditionally been a productive month for U.S. stocks. Data from the Stock Trader’s Almanac for 2018 shows that the Dow has gained 1.9% on average during April since 1950. This means that April is the most profitable month for the Dow, going by average monthly returns.
Other major indexes also fair well during April, per the Almanac. For both the small-cap heavy Russell 2000 and the S&P 500, April is the third-best month of the year. Both these indexes have increased 1.5% on the average every April since 1950. April is also the fourth-best month for the Nasdaq. The tech-heavy index has notched up a 1.4% average gain during the month, per historical data.
Data from independent broker-dealer LPL Financial shows that gains in April have been particularly notable during the last few years. The S&P 500 has ended April with gains 90% of the time over the past 10 years. The index has notched up an average gain of 2.2% over this period. The success rate of 90% is the highest for any month during this period. Also, average monthly gains are the third highest, after March and July.
Strong Economy, Q1 Earnings to Boost Stocks
The U.S. economy had finished 2017 on a strong note, growing faster during the fourth quarter than earlier estimated. Business investment expanded during this period even as consumer spending hit a three-year high.
The first economic reports for April indicate that the economy continues to be resilient. Though the ISM Manufacturing Index dipped slightly, the economy as a whole expanded for the 107th consecutive month. Construction spending also inched up in February.
Meanwhile, the outlook for first-quarter earnings is particularly bright, coming on the back of strong results for the fourth quarter. As of Mar 23, total Q1 earnings for the S&P 500 index were expected to be up +15.9% from the same period last year on +7.3% higher revenues. This would follow +13.5% earnings growth on +8.5% revenue growth in the preceding period. (Read: Handicapping the Q1 Earnings Season)
Our Choices
Stocks have recently been buffeted by the twin concerns of an impending trade war with China and losses for tech stocks. While losses for tech stocks are likely temporary, it remains to be seen whether Trump follows up on his warnings or opts for a compromise. Meanwhile, April remains a historically good month for stocks. Also, while the economy remains strong, prospects for first-quarter earnings remain encouraging.
Given this backdrop, it seems prudent to bet on relatively stable alternatives which hold out the promise of considerable returns. Large-cap stocks are relatively safer bets. At the same time, it is important to consider only those which offer the promise of short-term benefits and the prospect of good long-term performance. However, picking winning stocks may be difficult.
This is where our VGM Score comes in. Here V stands for Value, G for Growth and M for Momentum and the score is a weighted combination of these three scores. Such a score allows you to eliminate the negative aspects of stocks and select winners. However, it is important to keep in mind that each Style Score will carry a different weight while arriving at a VGM score.
We have narrowed down our search to the following stocks, each of which has a Zacks Rank #1 (Strong Buy) and a good VGM Score. You can see the complete list of today’s Zacks #1 Rank stocks here.
Centene Corporation is a well-diversified, multi-national healthcare company that primarily provides a set of services to the government-sponsored healthcare programs.
Centene has a VGM Score of A. The company’s projected growth rate for the current year is 40.9%. The Zacks Consensus Estimate for the current year has improved by 21% over the last 60 days.
Western Digital Corporation headquartered in Irvine, California, is one of the largest hard disk drive (HDD) producers in the United States.
Western Digital has a VGM Score of A. The company’s projected growth rate for the current year is 52%.The Zacks Consensus Estimate for the current year has improved by 1.3% over the last 30 days.
Concho Resources Inc. based in Midland, Texas, is an independent oil and gas exploration and production company with producing properties mainly in the Permian Basin of southeast New Mexico and west Texas.
Concho Resources a VGM Score of B. The company has expected earnings growth of 81.5% for the current year. The Zacks Consensus Estimate for the current year has improved by 3.7% over the last 30 days.
Pioneer Natural Resources Company is independent oil and gas exploration and production company, the asset base of which is anchored by the Spraberry oil field located in West Texas, the Hugoton gas field in Southwest Kansas and the West Panhandle gas field in Texas Panhandle.
Pioneer Natural Resources has a VGM Score of B. The company’s expected earnings growth for the current year is more than 100%. The Zacks Consensus Estimate for the current year has improved by 9.4% over the last 30 days.
Tyson Foods Inc. is the biggest U.S. chicken company and produces, distributes and markets chicken, beef, pork as well as prepared foods.
Tyson Foods has a VGM Score of B. The company has expected earnings growth of 25.3% for the current year. The Zacks Consensus Estimate for the current year has improved by 14.3% over the last 60 days.
The Hottest Tech Mega-Trend of All
Last year, it generated $8 billion in global revenues. By 2020, it's predicted to blast through the roof to $47 billion. Famed investor Mark Cuban says it will produce "the world's first trillionaires," but that should still leave plenty of money for regular investors who make the right trades early.
See Zacks' 3 Best Stocks to Play This Trend >>
Today, Zacks is promoting its ''Buy'' stock recommendations. Get #1 Stock of the Day pick for free.
About Zacks Equity Research
Zacks Equity Research provides the best of quantitative and qualitative analysis to help investors know what stocks to buy and which to sell for the long-term.
Continuous coverage is provided for a universe of 1,150 publicly traded stocks. Our analysts are organized by industry which gives them keen insights to developments that affect company profits and stock performance. Recommendations and target prices are six-month time horizons.
Strong Stocks that Should Be in the News
Many are little publicized and fly under the Wall Street radar. They're virtually unknown to the general public. Yet today's 220 Zacks Rank #1 "Strong Buys" were generated by the stock-picking system that has nearly tripled the market from 1988 through 2015. Its average gain has been a stellar +26% per year.See these high-potential stocks free >>.
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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.