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: GeoPark, Rocky Brands, Seagate Technology, HollyFrontier and Micron Technology
Read MoreHide Full Article
For Immediate Release
Chicago, IL – May 16, 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 GeoPark Limited (GPRK - Free Report) , Rocky Brands, Inc. (RCKY - Free Report) , Seagate Technology Plc (STX - Free Report) , HollyFrontier Corp. and Micron Technology, Inc. (MU - Free Report) .
Ignore “Sell in May” with These 5 Top-Ranked Summer Picks
The old adage “Sell in May and Go Away” is unlikely to hold true this year. Following a two-month long chain of losses earlier in the year, stocks ended April marginally higher. Now, markets seem set to surge ahead in May and the rest of the summer. The resurgence of tech stocks, which had powered market gains for some time now, is a clear indicator that this rally is set to continue.
Also, the strong performance of small-cap stocks indicates that investors are willing to take on more risk. Meanwhile, trade-related fears are receding. Investors are also choosing to ignore the surge in oil prices. Investing in stocks which have surged over the year and which sport strong fundamentals looks like a smart option at this point.
Tech Stocks Rebound on Strong Earnings
Tech stocks, which constitute nearly 25% of the total market capitalization, have rebounded strongly in recent weeks. The category had been weighed down by a string of headwinds, including persistent concerns over poor demand for iPhones.
The data privacy scandal which hit Facebook also triggered a broad selloff in tech shares. But a flurry of strong earnings performances, particularly from the dominant FAANG group of stocks, has powered a rebound in recent weeks.
As of May 9, 2018, we have Q1 results from 84.3% of the Technology sector’s total market cap in the S&P 500 index. Total earnings for these companies are up +29.4% on +12% higher revenues, with 91.5% beating EPS estimates and the same proportion beating revenue estimates. (Read: A Critical Look at the Q1 Earnings Season)
Small-Caps Remain Popular
On May 14, the small-cap heavy Russell 2000 index closed 0.4% lower. The decline came despite the index nearly breaching an intraday record created on Jan 24. Further, this also went against a trend which has built up over the last three months, where small-caps have outperformed their larger peers.
A variety of factors have confabulated to create this phenomenon. Firstly, small-caps are viewed as U.S. focused companies. This perception allows them to be insulated from trade-related fears and other geopolitical tensions. Further, factors like a surging dollar are unlikely to impact companies with domestically focused operations.
Trade Fears Receding, Oil Spike Ignored
Meanwhile, trade-related tensions between the United States and China seem to be receding. Firstly, it is increasingly clear that a new NAFTA deal is likely to be concluded. Additionally, in a rare overture to China, Trump announced on Sunday that he would be working with President Xi in order to save phone maker ZTE Corporation.
Also, investors seem to be ignoring the fact that oil prices are close to a four-year high. Instead, markets are enjoying the current rally in energy stocks. Energy stocks gained 0.6% on Monday and the Energy Select Sector SPDR (XLE) is up 6.2% year-to-date.
Our Choices
The rebound in tech stocks and continuing gains in small-cap stocks have ignited a new rally for the markets. With trade war fears receding and investors choosing to ignore the recent spike in oil prices, this stretch of gains is likely to continue over most of this summer.
These factors are likely to negate the old adage of “Sell in May” this time around. Picking stocks with strong fundamentals which have surged over the year looks like a prudent choice at this point. 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.
GeoPark Limited is an explorer, operator and consolidator of oil and gas.
GeoPark’s projected growth rate for the current year is more than 100% The Zacks Consensus Estimate for the current year has improved by 65.3% over the last 30 days. The stock has gained 43.5% year to date.
Rocky Brands, Inc. is a leading designer, manufacturer and marketer of premium quality footwear and apparel.
Rocky Brands’ projected growth rate for the current year is 29.3%. The Zacks Consensus Estimate for the current year has improved by 7.1% over the last 30 days. The stock has gained 38.9% year to date.
Seagate Technology Plc is the second-largest manufacturer of hard disk drives (HDDs) in the United States.
Seagate’s projected growth rate for the current year is 28.5%. The Zacks Consensus Estimate for the current year has improved by 8.3% over the last 30 days. The stock has gained 36.4% year to date.
HollyFrontier Corp. is one of the largest independent refiners and marketers of petroleum products in the United States.
HollyFrontier’s projected growth rate for the current year is 92.9%. The Zacks Consensus Estimate for the current year has improved by 25.5% over the last 30 days. The stock has gained 34.8% year to date.
Micron Technology, Inc. has established itself as one of the leading worldwide providers of semiconductor memory solutions.
Micron’s projected growth rate for the current year is more than 100%. The Zacks Consensus Estimate for the current year has improved by 4% over the last 60 days. The stock has gained 28.9% year to date.
More Stock News: This Is Bigger than the iPhone!
It could become the mother of all technological revolutions. Apple sold a mere 1 billion iPhones in 10 years but a new breakthrough is expected to generate more than 27 billion devices in just 3 years, creating a $1.7 trillion market.
Zacks has just released a Special Report that spotlights this fast-emerging phenomenon and 6 tickers for taking advantage of it. If you don't buy now, you may kick yourself in 2020.
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.
See More Zacks Research for These Tickers
Normally $25 each - click below to receive one report FREE:
Image: Bigstock
The Zacks Analyst Blog Highlights: GeoPark, Rocky Brands, Seagate Technology, HollyFrontier and Micron Technology
For Immediate Release
Chicago, IL – May 16, 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 GeoPark Limited (GPRK - Free Report) , Rocky Brands, Inc. (RCKY - Free Report) , Seagate Technology Plc (STX - Free Report) , HollyFrontier Corp. and Micron Technology, Inc. (MU - Free Report) .
Today, Zacks is promoting its ''Buy'' stock recommendations. Get #1Stock of the Day pick for free.
Here are highlights from Tuesday’s Analyst Blog:
Ignore “Sell in May” with These 5 Top-Ranked Summer Picks
The old adage “Sell in May and Go Away” is unlikely to hold true this year. Following a two-month long chain of losses earlier in the year, stocks ended April marginally higher. Now, markets seem set to surge ahead in May and the rest of the summer. The resurgence of tech stocks, which had powered market gains for some time now, is a clear indicator that this rally is set to continue.
Also, the strong performance of small-cap stocks indicates that investors are willing to take on more risk. Meanwhile, trade-related fears are receding. Investors are also choosing to ignore the surge in oil prices. Investing in stocks which have surged over the year and which sport strong fundamentals looks like a smart option at this point.
Tech Stocks Rebound on Strong Earnings
Tech stocks, which constitute nearly 25% of the total market capitalization, have rebounded strongly in recent weeks. The category had been weighed down by a string of headwinds, including persistent concerns over poor demand for iPhones.
The data privacy scandal which hit Facebook also triggered a broad selloff in tech shares. But a flurry of strong earnings performances, particularly from the dominant FAANG group of stocks, has powered a rebound in recent weeks.
As of May 9, 2018, we have Q1 results from 84.3% of the Technology sector’s total market cap in the S&P 500 index. Total earnings for these companies are up +29.4% on +12% higher revenues, with 91.5% beating EPS estimates and the same proportion beating revenue estimates. (Read: A Critical Look at the Q1 Earnings Season)
Small-Caps Remain Popular
On May 14, the small-cap heavy Russell 2000 index closed 0.4% lower. The decline came despite the index nearly breaching an intraday record created on Jan 24. Further, this also went against a trend which has built up over the last three months, where small-caps have outperformed their larger peers.
A variety of factors have confabulated to create this phenomenon. Firstly, small-caps are viewed as U.S. focused companies. This perception allows them to be insulated from trade-related fears and other geopolitical tensions. Further, factors like a surging dollar are unlikely to impact companies with domestically focused operations.
Trade Fears Receding, Oil Spike Ignored
Meanwhile, trade-related tensions between the United States and China seem to be receding. Firstly, it is increasingly clear that a new NAFTA deal is likely to be concluded. Additionally, in a rare overture to China, Trump announced on Sunday that he would be working with President Xi in order to save phone maker ZTE Corporation.
Also, investors seem to be ignoring the fact that oil prices are close to a four-year high. Instead, markets are enjoying the current rally in energy stocks. Energy stocks gained 0.6% on Monday and the Energy Select Sector SPDR (XLE) is up 6.2% year-to-date.
Our Choices
The rebound in tech stocks and continuing gains in small-cap stocks have ignited a new rally for the markets. With trade war fears receding and investors choosing to ignore the recent spike in oil prices, this stretch of gains is likely to continue over most of this summer.
These factors are likely to negate the old adage of “Sell in May” this time around. Picking stocks with strong fundamentals which have surged over the year looks like a prudent choice at this point. 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 VGM Score of A. You can see the complete list of today’s Zacks #1 Rank stocks here.
GeoPark Limited is an explorer, operator and consolidator of oil and gas.
GeoPark’s projected growth rate for the current year is more than 100% The Zacks Consensus Estimate for the current year has improved by 65.3% over the last 30 days. The stock has gained 43.5% year to date.
Rocky Brands, Inc. is a leading designer, manufacturer and marketer of premium quality footwear and apparel.
Rocky Brands’ projected growth rate for the current year is 29.3%. The Zacks Consensus Estimate for the current year has improved by 7.1% over the last 30 days. The stock has gained 38.9% year to date.
Seagate Technology Plc is the second-largest manufacturer of hard disk drives (HDDs) in the United States.
Seagate’s projected growth rate for the current year is 28.5%. The Zacks Consensus Estimate for the current year has improved by 8.3% over the last 30 days. The stock has gained 36.4% year to date.
HollyFrontier Corp. is one of the largest independent refiners and marketers of petroleum products in the United States.
HollyFrontier’s projected growth rate for the current year is 92.9%. The Zacks Consensus Estimate for the current year has improved by 25.5% over the last 30 days. The stock has gained 34.8% year to date.
Micron Technology, Inc. has established itself as one of the leading worldwide providers of semiconductor memory solutions.
Micron’s projected growth rate for the current year is more than 100%. The Zacks Consensus Estimate for the current year has improved by 4% over the last 60 days. The stock has gained 28.9% year to date.
More Stock News: This Is Bigger than the iPhone!
It could become the mother of all technological revolutions. Apple sold a mere 1 billion iPhones in 10 years but a new breakthrough is expected to generate more than 27 billion devices in just 3 years, creating a $1.7 trillion market.
Zacks has just released a Special Report that spotlights this fast-emerging phenomenon and 6 tickers for taking advantage of it. If you don't buy now, you may kick yourself in 2020.
Click here for the 6 trades >>
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.