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The Zacks Analyst Blog Highlights: Agilysys, Masonite, SPX and Simply Good Foods
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For Immediate Release
Chicago, IL – February 5, 2020 – 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 Agilysys Inc. (AGYS - Free Report) , Masonite International Corp. (DOOR - Free Report) , SPX FLOW Inc. (FLOW - Free Report) and The Simply Good Foods Co. (SMPL - Free Report) .
Here are highlights from Tuesday’s Analyst Blog:
U.S. Manufacturing Showing Signs of Bottoming Out: Top Picks
U.S. manufacturing industry, which faced severe challenges in 2019 owing to the lingering trade conflict and tariff war with China, is showing signs of recovery. Moreover, 2020 should bring good tidings as the two countries signed a phase-one trade deal on Jan 15 to resolve the tariff war.
U.S. Manufacturing Showing Signs of Improvement
On Feb 3, the Institute of Supply Management (ISM) reported that the U.S. manufacturing activities index for the month of January came in at 50.9, its highest since July 2019. Notably, the metric showed that manufacturing activities expanded in January after five consecutive months of contraction. Any reading above 50 means expansion of U.S. manufacturing activities.
January’s data also surpassed the consensus estimate of 48.6. Moreover, December’s reading was revised upward to 47.8 from 47.2 reported earlier. The manufacturing industry accounts for around 12% of the U.S. GDP.
Most importantly, the new orders sub index of the ISM manufacturing index surged to 52 in January from a revised 47.6 in the previous month. This sub index is very important since it provides some clue to future expectations of manufacturing output.
U.S., China Sign Phase-One Trade Deal
On Jan 15, the United States and China signed a temporary trade deal popularly known as the phase-one trade deal. China has committed to buy $40 billion to $50 billion U.S. agricultural products annually and a total of $200 billion of U.S. goods over two years. The Trump administration may rollback some tariffs already imposed on China.
The deal has the provision to address intellectual-property disputes and force technology transfer along with strong enforcement provisions in financial services and currency issues in addition to tariff rollback and higher agricultural purchase. The U.S. government has decided to delete China from its list of currency manipulators.
U.S. Manufacturing to Benefit
The recently signed phase-one trade deal between the United States and China has significantly cooled down the nearly two-year-old tariff war. The interim deal will at least help in restoring U.S. business confidence and global economic growth.
China is the largest trading partner of the United States. A strong economy in China, the largest market for high-tech products, will give U.S. manufacturers a solid boost. Moreover, China plays the role of a low-cost supplier of intermediary products and other inputs to high-tech U.S. industries.
An end to the U.S.-China trade spat is likely to restore Chinese and global economic growth, which in turn will create demand for high-tech U.S. manufacturing products. Likewise, the repeal of tariffs on Chinese intermediary goods should raise the profit margin of U.S. tech giants. Moreover, clinching an agreement with China, which will strictly protect U.S. intellectual properties, will be immensely beneficial for home-grown manufacturers.
Our Top Picks
At this stage, we have narrowed down our search to four manufacturing stocks that popped in the past year and still have momentum for the current year. Each of our picks carries a Zacks Rank #1 (Strong Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.
Agilysys Inc. operates as a developer and marketer of hardware and software products and services to the hospitality industry in North America, Europe, the Asia-Pacific and India. The company has an expected earnings growth rate of 36.8% for the current year (ending March 2020). The Zacks Consensus Estimate for the current year has improved 14.3% over the past 30 days. The stock has rallied 75.1% in the past year.
Masonite International Corp.designs, manufactures, and distributes interior and exterior doors for the new construction and repair, renovation and remodeling sectors of the residential and non-residential building construction markets worldwide. The company has an expected earnings growth rate of 27.9% for the current year. The Zacks Consensus Estimate for the current year improved 0.9% over the past 30 days. The stock has jumped 38.5% in the past year.
SPX FLOW Inc.provides various engineered solutions worldwide. It operates in three segments: Food and Beverage, Power and Energy and Industrial. The company has an expected earnings growth rate of 9.2% for the current year. The Zacks Consensus Estimate for the current year improved 0.5% over the past 30 days. The stock has climbed 37.9% in the past year.
The Simply Good Foods Co.develops, markets and sells branded nutritional foods and snack products in North America and internationally. It markets nutrition bars, ready-to-drink shakes, snacks, and confectionery products under the Atkins, SimplyProtein, and Atkins Endulge brand names. The company has an expected earnings growth rate of 64.3% for the current year (ending August 2020). The Zacks Consensus Estimate for the current year improved 17.9% over the past 30 days. The stock has surged 18.5% in the past year.
7 Best Stocks for the Next 30 Days
Just released: Experts distill 7 elite stocks from the current list of 220 Zacks Rank #1 Strong Buys. They deem these tickers “Most Likely for Early Price Pops.”
Since 1988, the full list has beaten the market more than 2X over with an average gain of +24.7% per year. So be sure to give these hand-picked 7 your immediate attention.
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 http://www.zacks.com/performance for information about the performance numbers displayed in this press release.
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The Zacks Analyst Blog Highlights: Agilysys, Masonite, SPX and Simply Good Foods
For Immediate Release
Chicago, IL – February 5, 2020 – 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 Agilysys Inc. (AGYS - Free Report) , Masonite International Corp. (DOOR - Free Report) , SPX FLOW Inc. (FLOW - Free Report) and The Simply Good Foods Co. (SMPL - Free Report) .
Here are highlights from Tuesday’s Analyst Blog:
U.S. Manufacturing Showing Signs of Bottoming Out: Top Picks
U.S. manufacturing industry, which faced severe challenges in 2019 owing to the lingering trade conflict and tariff war with China, is showing signs of recovery. Moreover, 2020 should bring good tidings as the two countries signed a phase-one trade deal on Jan 15 to resolve the tariff war.
U.S. Manufacturing Showing Signs of Improvement
On Feb 3, the Institute of Supply Management (ISM) reported that the U.S. manufacturing activities index for the month of January came in at 50.9, its highest since July 2019. Notably, the metric showed that manufacturing activities expanded in January after five consecutive months of contraction. Any reading above 50 means expansion of U.S. manufacturing activities.
January’s data also surpassed the consensus estimate of 48.6. Moreover, December’s reading was revised upward to 47.8 from 47.2 reported earlier. The manufacturing industry accounts for around 12% of the U.S. GDP.
Most importantly, the new orders sub index of the ISM manufacturing index surged to 52 in January from a revised 47.6 in the previous month. This sub index is very important since it provides some clue to future expectations of manufacturing output.
U.S., China Sign Phase-One Trade Deal
On Jan 15, the United States and China signed a temporary trade deal popularly known as the phase-one trade deal. China has committed to buy $40 billion to $50 billion U.S. agricultural products annually and a total of $200 billion of U.S. goods over two years. The Trump administration may rollback some tariffs already imposed on China.
The deal has the provision to address intellectual-property disputes and force technology transfer along with strong enforcement provisions in financial services and currency issues in addition to tariff rollback and higher agricultural purchase. The U.S. government has decided to delete China from its list of currency manipulators.
U.S. Manufacturing to Benefit
The recently signed phase-one trade deal between the United States and China has significantly cooled down the nearly two-year-old tariff war. The interim deal will at least help in restoring U.S. business confidence and global economic growth.
China is the largest trading partner of the United States. A strong economy in China, the largest market for high-tech products, will give U.S. manufacturers a solid boost. Moreover, China plays the role of a low-cost supplier of intermediary products and other inputs to high-tech U.S. industries.
An end to the U.S.-China trade spat is likely to restore Chinese and global economic growth, which in turn will create demand for high-tech U.S. manufacturing products. Likewise, the repeal of tariffs on Chinese intermediary goods should raise the profit margin of U.S. tech giants. Moreover, clinching an agreement with China, which will strictly protect U.S. intellectual properties, will be immensely beneficial for home-grown manufacturers.
Our Top Picks
At this stage, we have narrowed down our search to four manufacturing stocks that popped in the past year and still have momentum for the current year. Each of our picks carries a Zacks Rank #1 (Strong Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.
Agilysys Inc. operates as a developer and marketer of hardware and software products and services to the hospitality industry in North America, Europe, the Asia-Pacific and India. The company has an expected earnings growth rate of 36.8% for the current year (ending March 2020). The Zacks Consensus Estimate for the current year has improved 14.3% over the past 30 days. The stock has rallied 75.1% in the past year.
Masonite International Corp.designs, manufactures, and distributes interior and exterior doors for the new construction and repair, renovation and remodeling sectors of the residential and non-residential building construction markets worldwide. The company has an expected earnings growth rate of 27.9% for the current year. The Zacks Consensus Estimate for the current year improved 0.9% over the past 30 days. The stock has jumped 38.5% in the past year.
SPX FLOW Inc.provides various engineered solutions worldwide. It operates in three segments: Food and Beverage, Power and Energy and Industrial. The company has an expected earnings growth rate of 9.2% for the current year. The Zacks Consensus Estimate for the current year improved 0.5% over the past 30 days. The stock has climbed 37.9% in the past year.
The Simply Good Foods Co.develops, markets and sells branded nutritional foods and snack products in North America and internationally. It markets nutrition bars, ready-to-drink shakes, snacks, and confectionery products under the Atkins, SimplyProtein, and Atkins Endulge brand names. The company has an expected earnings growth rate of 64.3% for the current year (ending August 2020). The Zacks Consensus Estimate for the current year improved 17.9% over the past 30 days. The stock has surged 18.5% in the past year.
7 Best Stocks for the Next 30 Days
Just released: Experts distill 7 elite stocks from the current list of 220 Zacks Rank #1 Strong Buys. They deem these tickers “Most Likely for Early Price Pops.”
Since 1988, the full list has beaten the market more than 2X over with an average gain of +24.7% per year. So be sure to give these hand-picked 7 your immediate attention.
See 7 handpicked stocks now >>
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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 http://www.zacks.com/performance for information about the performance numbers displayed in this press release.