Back to top

Image: Bigstock

The Zacks Analyst Blog Highlights: UFP Technologies, Rent-A-Center, Bridgepoint Education, Unisys and Summer Infant

Read MoreHide Full Article

For Immediate Release

Chicago, IL – September 19, 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 UFP Technologies, Inc. (UFPT - Free Report) , Rent-A-Center, Inc. , Bridgepoint Education, Inc. , Unisys Corporation (UIS - Free Report) and Summer Infant, Inc. .

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

Here are highlights from Tuesday’s Analyst Blog:

5 Small-Caps to Buy as Trump Slaps on New Chinese Tariffs

On Sep 17, the Trump administration announced fresh tariffs on $200 billion of imports from China, escalating trade tensions. These tariffs will come into effect on Sep 24 and the rates levied will be stepped up from the beginning of 2019.

Further, any retaliation from China will attract more tariffs, which will end up covering nearly the total value of goods imported from that country. China has threatened to retaliate and the talks proposed by the U.S. Treasury Secretary later this month now look highly unlikely.

Equity markets are unlikely to take kindly to these developments. Betting on small caps makes sense at this point as these are likely to lose the least in this scenario. Their domestic focus and the fact that they will be the largest beneficiaries of tax cuts also make them strong investment options.

Trump Imposes Fresh Tariffs, Promises Further Measures

The Trump administration has decided to impose a 10% tariff on Chinese imports worth $200 billion, effective Sep 24. From Jan 1, 2019, the rate at which tariffs are levied will increase to 25%. In the event that China takes “retaliatory action against our farmers or other industries,” the administration will impose “tariffs on approximately $267 billion of additional imports.”

The idea behind raising duties in a phased manner was to allow companies to find other sources of inputs and provide relief to consumers ahead of the holiday season. A significant move was to exclude nearly 300 items from an earlier list of goods, which would attract such duties. This includes Apple Inc.’s (AAPL) smartwatches, bicycle helmets and car seats.

China Vows to Retaliate, Further Talks Unlikely

Anticipating the announcement of additional tariffs, China’s foreign ministry threatened retaliatory action earlier on Monday. Foreign ministry spokesman Geng Shuang said that if further tariffs were imposed on China by the United States, China would have “to take necessary countermeasures” and protect its “legitimate and legal rights and interests.”

The announcement also raises doubts over trade talks between the United States and China proposed by Treasury Secretary Steven Mnuchin. When asked if China’s vice premier Liu He would visit the United States to participate in talks, Mr Geng said China would only participate in such discussions “on the basis of equality.”  This round of talks now appears highly unlikely.

Our Choices

The imposition of fresh tariffs has significantly escalated trade tensions between the United States and China. Talks to resolve the situation also seem highly unlikely in the near future. Markets are unlikely to take these events in good light. In such a scenario, small caps could be the best bets.

This is because small caps could lose the least in the prevailing scenario, marked by geopolitical tensions and a surging dollar. Their domestic focus and tax cuts are other factors working in favor. 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.

UFP Technologies, Inc.is a designer and convertor of foams, composites, plastics and natural fiber materials for the industrial and consumer markets in the United States.

UFP Technologies’ expected earnings growth for the current year is 69.6%. The Zacks Consensus Estimate for the current year has improved by 4.4% over the last 30 days.

Rent-A-Center, Inc. is the largest rent-to-own operator in the United States offering durable goods such as consumer electronics, appliances, computers, furniture and accessories.

Rent-A-Center’s expected earnings growth for the current year is more than 100%.The Zacks Consensus Estimate for the current year has improved by 8.1% over the last 30 days.

Bridgepoint Education, Inc. provides postsecondary education services in the United States.

Bridgepoint Education’s expected earnings growth for the current year is 8.5%. The Zacks Consensus Estimate for the current year has improved by more than 100% over the last 60 days.

Unisys Corporation is an IT firm, specializing in securing client operations, increasing efficiency of data centers, enhancing support to their end users and constituents, and modernizing their enterprise applications.

Unisys’ expected earnings growth for the current year is more than 100%. The Zacks Consensus Estimate for the current year has improved by 2.1% over the last 30 days.

Summer Infant, Inc. is a designer, marketer and distributor of branded durable juvenile health, safety and wellness products (for ages up to three years), which are sold principally to large U.S. retailers.

Summer Infant’s projected growth rate for the current year is more than 100%. The Zacks Consensus Estimate for the current year has improved by 50% over the last 60 days.

5 Companies Verge on Apple-Like Run

Did you miss Apple's 9X stock explosion after they launched their iPhone in 2007? Now 2018 looks to be a pivotal year to get in on another emerging technology expected to rock the market. Demand could soar from almost nothing to $42 billion by 2025. Reports suggest it could save 10 million lives per decade which could in turn save $200 billion in U.S. healthcare costs. A bonus Zacks Special Report names this breakthrough and the 5 best stocks to exploit it. Like Apple in 2007, these companies are already strong and coiling for potential mega-gains.

Click to see them right now >>

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.


See More Zacks Research for These Tickers


Normally $25 each - click below to receive one report FREE:


Unisys Corporation (UIS) - free report >>

UFP Technologies, Inc. (UFPT) - free report >>