Back to top

Image: Bigstock

The Zacks Analyst Blog Highlights: Comtech Telecommunications, Curtiss-Wright, Stepan, Mellanox Technologies and Cabot

Read MoreHide Full Article

For Immediate Release

Chicago, IL – April 5, 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 Comtech Telecommunications Corp. (CMTL - Free Report) , Curtiss-Wright Corp. (CW - Free Report) , Stepan Co. (SCL - Free Report) , Mellanox Technologies Ltd. and Cabot Corp. (CBT - Free Report) .

Today, Zacks is promoting its ''Buy'' stock recommendations. Get #1Stock of the Day pick for free.

Here are highlights from Wednesday’s Analyst Blog:

5 Top-Ranked U.S. Stocks to Gain from Trump’s China Tariffs

On Apr 3, the United States unveiled the list of the Chinese imports which will come under fire from the proposed U.S. tariffs. Chinese products which are utilized in high-tech sectors like industrial robots, information technology, communication technology, aerospace and medicine will bear the brunt of the tariffs.

Notably, intellectual property theft by Chinese companies in the guise of producing goods for the American tech giants is the rationale behind Trump administration’s imposition of these tariffs. Safeguarding of the highly valuable patents of the American tech heavy companies from China is of foremost importance to the United States.

Further, this move highlights the Trump administration’s aggressive efforts to shield next-generation innovative products of these high-tech industries of the country. Consequently, investment in some of these stocks with a favorable Zacks Rank should prove to be lucrative at the moment.

National Security Concerns Leads to Imposition of Tariffs

The U.S. government imposed 25% tariffs targeting 1,300 Chinese imports for a total worth of $50 billion. However, these tariffs will not be effective immediately. Domestic companies and consumers can lobby to delete or add products in the list by May 11. A public hearing on the issue will take place on May 15.

Trump administration is deeply concerned about China’s drive to unseat United States as the primary developer and supplier of state-of-the-art products in the fields of high-tech artificial intelligence, semiconductors, quantum computing and various other digital technology driven sectors.

Notably, most of the big manufacturers of these products are fully patronized by the Chinese government. These companies have become serious threat to the U.S. economic and military supremacy. Incidentally, China runs a massive $375 billion trade surplus against United States.

Sectors to Gain

U.S. companies that rely on Chinese imports are unhappy about the move as it will raise prices of high-tech equipment and several electronics products for the IT sector. However, a hike in product prices will certainly help U.S. manufacturers engaged in producing goods on which tariffs will be levied.

Companies producing industrial robots, communication satellites, aviation and a slew of semiconductors will be the major beneficiaries. Additionally, producers of wireless equipment, medicine and intermediate goods like machinery and chemicals will also gain from the move.

Our Choice

Trump has given strong signals that his administration will take special interest in the functioning of the tech-savvy sectors. At this stage, investors will be better off investing in U.S. manufacturing companies, which are expected to benefit the most from upcoming U.S. tariffs on China. Hence it has imposed tariffs on high technology China companies in order to protect the national interest.

We have narrowed down our search to the following stocks with Zacks Rank #1 (Strong Buy) and a strong growth potential. You can see the complete list of today’s Zacks #1 Rank stocks here.

Comtech Telecommunications Corp. designs, develops, produces and markets innovative products, systems and services for advanced communications solutions.

Comtech has expected earnings growth of 232.4% for current year. The Zacks Consensus Estimate for the current year has improved by 156.8% over the last 60 days.

Curtiss-Wright Corp. provides high-tech, critical-function products, systems and services to the commercial, industrial, defense and power markets.

Curtiss-Wright has expected earnings growth of 15.1% for the current year. The Zacks Consensus Estimate for the current year has improved 8% over the last 30 days.

Stepan Co. is a major manufacturer of specialty and intermediate chemicals used in a broad range of industries.

Stepan has expected earnings growth of 11.2% for current year. The Zacks Consensus Estimate for the current year has improved by 8.2% over the last 60 days.

Mellanox Technologies Ltd.is a leading supplier of semiconductor-based interconnects products to world-class server, storage, and infrastructure OEMs.

Mellanox has expected earnings growth of 60.5% for current year. The Zacks Consensus Estimate for the current year has improved by 15.5% over the last 60 days.

Cabot Corp.is a leading global specialty chemicals and performance materials company. It delivers a broad range of products and solutions to customers globally.

Cabot has expected earnings growth of 18.4% for current year. The Zacks Consensus Estimate for the current year has improved by 6.6% over the last 60 days.

Wall Street’s Next Amazon

Zacks EVP Kevin Matras believes this familiar stock has only just begun its climb to become one of the greatest investments of all time. It’s a once-in-a-generation opportunity to invest in pure genius.

Click for details >>

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 >>.

Follow us on Twitter: https://twitter.com/zacksresearch

Join us on Facebook: https://www.facebook.com/home.php#/pages/Zacks-Investment-Research/57553657748?ref=ts

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.

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.