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: G-III Apparel, Ralph Lauren, DHI and KEMET
Read MoreHide Full Article
For Immediate Release
Chicago, IL – December 28, 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: G-III Apparel Group, Ltd. (GIII - Free Report) , Ralph Lauren Corp. (RL - Free Report) , DHI Group, Inc. (DHX - Free Report) and KEMET Corp. (KEM - Free Report) .
Here are highlights from Thursday’s Analyst Blog:
4 Top Stocks that Are Attractive Bargains for 2019
The U.S. stock market has been going through a rough patch this year, with things worsening in the past month. The Trump administration has quite aggressively attributed the discouraging performance of the U.S. stock market to the latest increase in federal funds rates. After all, a rising interest rate environment reduces borrowing and eventually spending. And if spending drops too much, then there are chances that the U.S. economy may face a recession.
International trade disputes are doing no good either. The United States has for quite some time complained that China has not opened its economy as much as it has and also charged China of intellectual-property theft. To say the least, China’s heavy debt burden and Italy’s already mediocre growth rate are adding to the woes.
But, let’s admit that a near-term recession not in the cards. And why so? During the Great Recession of 2007-09, debt payments were way more than household budgets. Now, household debt payments account for a modest share of household income. By the way, the same can be said about business houses.
And how can we forget that an uptick in oil and gas prices initiated two recessions in the 1970s. A lot of revenues for oil and gas have flowed outside the country since the United States was a big importer of oil at that time. Today, it is one of the major producers and exporters of oil. So, if oil and gas prices move north, the money will flow into the U.S. economy and not out of it.
With current trends in household debt, business debt and oil prices not suggesting a recession in the near future, let us focus on a few favorite sectors that are ready to bounce back next year following the beating they received this year. Stocks from such sectors are thus perceived to be “bargains” or are undervalued and will help investors make money by buying before the impending rally.
What Retail Apocalypse? New Year Rally Could be Ahead
Retail stocks have tumbled in recent months, with the XRT retail ETF down 17% so far in December. Thus, the sector is on track for its worst December since 2006. Major retailers, including Target and Kohl’s, have already tanked more than 10% so far this month.
However, earnings growth for retailers is twice that of the S&P 500 per Erin Gibbs, portfolio manager at S&P Global Market Intelligence. In fact, XRT ETF’s earnings are expected to rise 17% next year, while the S&P 500’s profit is projected to jump 8% per FactSet estimates. And this forecasted rise in earnings growth certainly presents a buying opportunity.
Moreover, retailers have already received the much-needed push after holiday sales grew at the fastest pace in six years to top $850 billion, according to Mastercard SpendingPulse data (read more: Holiday Retail Sales Hit Six-Year High: 5 Stocks to Buy).
Tech Stocks Unfairly Hammered
During the market pullback this year, tech stocks took a beating. From user data privacy to NAND price crash to tariffs on semiconductors, tech stocks faced a slew of challenges. Geopolitical issues including escalating trade tensions between the United States and China have time and again made tech stocks bleed.
In fact, several tech stocks have been unfairly hammered especially chip stocks. These stocks have not only weathered the Bitcoin bubble well but are also likely to take advantage from the upcoming requirement of chips needed to boost artificial intelligence (AI) and the like.
The broader tech sector, in itself, is likely to gain from escalating demand for sensors and software for autonomous vehicles, advanced driver assisted systems (ADAS), Augmented/Virtual reality devices (AR/VR) and Internet of Things (IoT) (read more: 5 Battered Technology Stocks That Could Bounce Back in 2019).
Lest we forget, several tech IPOs are on the horizon. From Uber Technologies Inc and Lyft battling for the transit space to the thrilling dating app Bumble Trading Inc eyeing an IPO, there are a lot of chances for investors to make big moolah in the upcoming year.
4 Great Bargains for 2019
Investors thus should see a “buy the dip” opportunity in the retail and tech space. We have, thus, selected four stocks from these sectors that are great bargains. These stocks carry a Zacks Rank #1 (Strong Buy) or 2 (Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.
G-III Apparel Group, Ltd. designs, manufactures, and markets women's and men's apparel in the United States and internationally. The stock, currently, has a Zacks Rank #2. G-III Apparel has a price-to-earnings ratio (P/E) of 9.42, compared with 18.80 for the industry. The company’s shares have tanked 30.6% in the past month but are forecast to gain a steady 9.1% and 11.3% in the next quarter and year, respectively.
Ralph Lauren Corp. designs, markets, and distributes lifestyle products. It offers apparel, including a range of men's, women's, and children's clothing accessories. The stock, currently, has a Zacks Rank #2. Ralph Lauren has a price-to-earnings ratio (P/E) of 14.17, compared with 18.80 for the industry. The company’s shares have declined 9.3% in the past month. However, it is forecast to gain a steady 7.4% in the next year.
DHI Group, Inc. provides data, insights, and connections services to professional communities in the United States and internationally. The stock, currently, has a Zacks Rank #2. DHI Group has a price-to-earnings ratio (P/E) of 6.18, compared with 14.90 for the industry. The company’s shares have slipped 19.9% in the past month but are forecast to gain a whopping 700% in the next quarter and a steady 9.1% next year.
KEMET Corp. manufactures and sells passive electronic components under the KEMET brand worldwide. The stock, currently, has a Zacks Rank #1. KEMET has a price-to-earnings ratio (P/E) of 4.77, compared with 14.50 for the industry. The company’s shares have dropped 17.3% in the past month but are projected to gain a solid 120% in the next quarter and a steady 14.1% in the next year.
In addition to the stocks discussed above, would you like to know about our 10 top tickers to buy and hold for the entirety of 2019?
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 http://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: G-III Apparel, Ralph Lauren, DHI and KEMET
For Immediate Release
Chicago, IL – December 28, 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: G-III Apparel Group, Ltd. (GIII - Free Report) , Ralph Lauren Corp. (RL - Free Report) , DHI Group, Inc. (DHX - Free Report) and KEMET Corp. (KEM - Free Report) .
Here are highlights from Thursday’s Analyst Blog:
4 Top Stocks that Are Attractive Bargains for 2019
The U.S. stock market has been going through a rough patch this year, with things worsening in the past month. The Trump administration has quite aggressively attributed the discouraging performance of the U.S. stock market to the latest increase in federal funds rates. After all, a rising interest rate environment reduces borrowing and eventually spending. And if spending drops too much, then there are chances that the U.S. economy may face a recession.
International trade disputes are doing no good either. The United States has for quite some time complained that China has not opened its economy as much as it has and also charged China of intellectual-property theft. To say the least, China’s heavy debt burden and Italy’s already mediocre growth rate are adding to the woes.
But, let’s admit that a near-term recession not in the cards. And why so? During the Great Recession of 2007-09, debt payments were way more than household budgets. Now, household debt payments account for a modest share of household income. By the way, the same can be said about business houses.
And how can we forget that an uptick in oil and gas prices initiated two recessions in the 1970s. A lot of revenues for oil and gas have flowed outside the country since the United States was a big importer of oil at that time. Today, it is one of the major producers and exporters of oil. So, if oil and gas prices move north, the money will flow into the U.S. economy and not out of it.
With current trends in household debt, business debt and oil prices not suggesting a recession in the near future, let us focus on a few favorite sectors that are ready to bounce back next year following the beating they received this year. Stocks from such sectors are thus perceived to be “bargains” or are undervalued and will help investors make money by buying before the impending rally.
What Retail Apocalypse? New Year Rally Could be Ahead
Retail stocks have tumbled in recent months, with the XRT retail ETF down 17% so far in December. Thus, the sector is on track for its worst December since 2006. Major retailers, including Target and Kohl’s, have already tanked more than 10% so far this month.
However, earnings growth for retailers is twice that of the S&P 500 per Erin Gibbs, portfolio manager at S&P Global Market Intelligence. In fact, XRT ETF’s earnings are expected to rise 17% next year, while the S&P 500’s profit is projected to jump 8% per FactSet estimates. And this forecasted rise in earnings growth certainly presents a buying opportunity.
Moreover, retailers have already received the much-needed push after holiday sales grew at the fastest pace in six years to top $850 billion, according to Mastercard SpendingPulse data (read more: Holiday Retail Sales Hit Six-Year High: 5 Stocks to Buy).
Tech Stocks Unfairly Hammered
During the market pullback this year, tech stocks took a beating. From user data privacy to NAND price crash to tariffs on semiconductors, tech stocks faced a slew of challenges. Geopolitical issues including escalating trade tensions between the United States and China have time and again made tech stocks bleed.
In fact, several tech stocks have been unfairly hammered especially chip stocks. These stocks have not only weathered the Bitcoin bubble well but are also likely to take advantage from the upcoming requirement of chips needed to boost artificial intelligence (AI) and the like.
The broader tech sector, in itself, is likely to gain from escalating demand for sensors and software for autonomous vehicles, advanced driver assisted systems (ADAS), Augmented/Virtual reality devices (AR/VR) and Internet of Things (IoT) (read more: 5 Battered Technology Stocks That Could Bounce Back in 2019).
Lest we forget, several tech IPOs are on the horizon. From Uber Technologies Inc and Lyft battling for the transit space to the thrilling dating app Bumble Trading Inc eyeing an IPO, there are a lot of chances for investors to make big moolah in the upcoming year.
4 Great Bargains for 2019
Investors thus should see a “buy the dip” opportunity in the retail and tech space. We have, thus, selected four stocks from these sectors that are great bargains. These stocks carry a Zacks Rank #1 (Strong Buy) or 2 (Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.
G-III Apparel Group, Ltd. designs, manufactures, and markets women's and men's apparel in the United States and internationally. The stock, currently, has a Zacks Rank #2. G-III Apparel has a price-to-earnings ratio (P/E) of 9.42, compared with 18.80 for the industry. The company’s shares have tanked 30.6% in the past month but are forecast to gain a steady 9.1% and 11.3% in the next quarter and year, respectively.
Ralph Lauren Corp. designs, markets, and distributes lifestyle products. It offers apparel, including a range of men's, women's, and children's clothing accessories. The stock, currently, has a Zacks Rank #2. Ralph Lauren has a price-to-earnings ratio (P/E) of 14.17, compared with 18.80 for the industry. The company’s shares have declined 9.3% in the past month. However, it is forecast to gain a steady 7.4% in the next year.
DHI Group, Inc. provides data, insights, and connections services to professional communities in the United States and internationally. The stock, currently, has a Zacks Rank #2. DHI Group has a price-to-earnings ratio (P/E) of 6.18, compared with 14.90 for the industry. The company’s shares have slipped 19.9% in the past month but are forecast to gain a whopping 700% in the next quarter and a steady 9.1% next year.
KEMET Corp. manufactures and sells passive electronic components under the KEMET brand worldwide. The stock, currently, has a Zacks Rank #1. KEMET has a price-to-earnings ratio (P/E) of 4.77, compared with 14.50 for the industry. The company’s shares have dropped 17.3% in the past month but are projected to gain a solid 120% in the next quarter and a steady 14.1% in the next year.
In addition to the stocks discussed above, would you like to know about our 10 top tickers to buy and hold for the entirety of 2019?
These 10 are painstakingly handpicked from over 4,000 companies covered by the Zacks Rank. They are our primary picks poised to outperform in the year ahead. Be among the first to see the new Zacks Top 10 Stocks >>
Media Contact
Zacks Investment Research
800-767-3771 ext. 9339
support@zacks.com
http://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 http://www.zacks.com/performance for information about the performance numbers displayed in this press release.