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 market may be bogged down by inflation concerns at the moment, but we’re still in the neighborhood of all-time highs with the likelihood of a big surge as the economy continues to reopen. New records cannot be far off. Outpacing a market with so much potential energy would be fantastic, which is what the Quality Fundamental Outperformers screen is all about.
It requires a Zacks Rank #1 (Strong Buy), which is difficult enough to obtain in its own right. But on top of that, it also demands a Momentum Style Score of “A” and a Zacks Industry Rank in the Top 50%. Not easy! But the companies able to make it through all this have an outstanding chance to eclipse the market today and keep that momentum going in the future.
Below are three names that recently passed the test.
A Bloomin’ Onion® or an order of Kookaburra Wings® are best when they go right from the kitchen directly to a table. It loses a little something in the back of an Uber Eats car. So it’s a good thing that we’re finally getting out to restaurants now that the pandemic is on its last legs. Because nothing’s worse than cold Kookaburra.
Bloomin’ Brands (BLMN - Free Report) is ready to welcome guests back into their Outback Steakhouse dining rooms, which is the company’s main and most recognizable concept. However, this casual dining restaurant chain has other concepts as well, including Carrabba’s Italian Grill, Bonefish Grill and Fleming’s Prime Steakhouse and Wine Bar. It operates more than 1450 restaurants in 47 states and 20 countries.
As part of the retail-restaurants space, BLMN is poised to take off as things get back to normal. It’s in the top 36% of the Zacks Industry Rank with shares that have jumped 160% over the past year, including a rise of nearly 43% year to date.
As with any company that survived this pandemic, BLMN focused on growing its off-premises sales digitally. As a result, U.S. digital revenue soared 147% compared to 2020. And the company has beaten the Zacks Consensus Estimate in each of the past four quarters with an average surprise of more than 85%!
In its first quarter report from last month, earnings per share of 72 cents topped the Zacks Consensus Estimate by more than 111%. Revenue of $987.47 million beat our expectation by 3.4%.
Perhaps best of all, sales momentum has continued in the first four weeks of the second quarter. The company expects this momentum to remain throughout the quarter… and the analysts seem to agree. In fact, they’re expecting good things for the whole year.
The Zacks Consensus Estimate for this year has surged more than 93% over the past 60 days to $2.01, while next year is up 15% in that time to $2.38. Therefore, analysts expect a 18.4% advance year over year.
Remember, if you let yourself go and stop caring about your appearance while social distancing at home… then the pandemic wins!
However, the strong fiscal second-quarter results from Sally Beauty Holdings (SBH - Free Report) shows that the coronavirus never stood a chance. The company recently reported its third straight quarter with a positive surprise, which sparked significantly higher earnings revisions from analysts.
SBH is an international specialty retailer and distributor of professional beauty supplies, such as hair color and care products; styling tools; skin and nail care products; and other beauty items. It has more than 5,000 stores. The company operates under two segments: Sally Beauty Supply (59.2% of fiscal 2020 revenues) and Beauty Systems Group (49.8%).
Shares of SBH are up 101% over the past 12 months, including a rise of about 65.2% so far this year. It currently has a Transformation Plan that includes improving customer experiences; strengthening e-commerce; curtailing costs; and enhancing retail fundamentals.
The company’s fiscal second-quarter report included earnings per share of 57 cents, which beat the Zacks Consensus Estimate by a robust 307%! It also improved nearly 150% from last year. Net sales of $926.3 million improved by 6.3% from last year and topped our expectation by about 12%.
Global e-commerce sales jumped 56%, which explains how SBH has been able to report such strong results when many of its stores are closed. Meanwhile, consolidated same-store sales were up 6.5% due to improving consumer confidence, stimulus payments and easing restrictions.
Looking forward, SBH believes that improvements across digital, customer engagement and the supply chain position the company for long-term growth. Analysts are feeling pretty good about the company’s future as well, prompting upward earnings estimate revisions.
The Zacks Consensus Estimate for this year (ending September 2021) is up 30% over the past month to $2.21, while expectations for next year (ending September 2022) are up 19.7% to $2.31 in that time. A lot of this improvement has come since the quarterly report and now suggests year-over-year profit growth of about 4.5%.
For some people, the end of this pandemic means finally giving old friends and loved ones big, heartfelt hugs without fear of getting sick… or getting someone else sick. And for others, the end of this pandemic means fleeing the family with a huge bankroll and finding some action in the casinos.
Hey… to each their own!
If you’re in the second group, then Boyd Gaming (BYD - Free Report) has you covered. The company is a multi-jurisdictional gaming company with 29 properties and 1.77 million square feet of casino space. It’s segments include Midwest & South (71.7% of total revenues in first quarter 2021); Las Vegas Locals (25.4%); and Downtown Las Vegas (2.9%). It has nearly 37K slot machines, more than 800 table games and over 11K hotel rooms.
Shares are up 192% from a year ago and about 35% so far in 2021. It has now put together four straight quarters of positive surprises with an average beat of more than 76% over that time.
The company is already enjoying increased visitation and growing spend-per-visit across every customer segment… and we’re still vaccinating people! In its first quarter, earnings per share of 93 cents eclipsed the Zacks Consensus Estimate by more than 111%. Total revenues of $753.3 million were up 10.7% from last year and beat our expectation by 13%.
The company continues making moves to expand its portfolio by strengthening current operations and growing capital investment. In addition to the grand reopening, BYD is also benefiting from expansion of online betting offerings and interactive gaming (through its partnership with FanDuel).
Analysts are feeling good about BYD’s prospects as we get back to normal. The Zacks Consensus Estimate for this year is up a remarkable 61.2% over the past two months to $3.24. Next year has climbed 35.3% in that time to $3.45. That leaves profit growth of about 6.5%, but it’s a good bet that will improve as gamblers return to the casinos.
The biotech sector is projected to surge beyond $775 billion by 2024 as scientists develop treatments for thousands of diseases. They’re also finding ways to edit the human genome to literally erase our vulnerability to these diseases. Zacks has just released Century of Biology: 7 Biotech Stocks to Buy Right Now to help investors profit from 7 stocks poised for outperformance. Our recent biotech recommendations have produced gains of +50%, +83% and +164% in as little as 2 months. The stocks in this report could perform even better.
Image: Bigstock
3 Quality Fundamental Outperformers
The market may be bogged down by inflation concerns at the moment, but we’re still in the neighborhood of all-time highs with the likelihood of a big surge as the economy continues to reopen. New records cannot be far off. Outpacing a market with so much potential energy would be fantastic, which is what the Quality Fundamental Outperformers screen is all about.
It requires a Zacks Rank #1 (Strong Buy), which is difficult enough to obtain in its own right. But on top of that, it also demands a Momentum Style Score of “A” and a Zacks Industry Rank in the Top 50%. Not easy! But the companies able to make it through all this have an outstanding chance to eclipse the market today and keep that momentum going in the future.
Below are three names that recently passed the test.
Bloomin’ Brands (BLMN - Free Report)
A Bloomin’ Onion® or an order of Kookaburra Wings® are best when they go right from the kitchen directly to a table. It loses a little something in the back of an Uber Eats car. So it’s a good thing that we’re finally getting out to restaurants now that the pandemic is on its last legs. Because nothing’s worse than cold Kookaburra.
Bloomin’ Brands (BLMN - Free Report) is ready to welcome guests back into their Outback Steakhouse dining rooms, which is the company’s main and most recognizable concept. However, this casual dining restaurant chain has other concepts as well, including Carrabba’s Italian Grill, Bonefish Grill and Fleming’s Prime Steakhouse and Wine Bar. It operates more than 1450 restaurants in 47 states and 20 countries.
As part of the retail-restaurants space, BLMN is poised to take off as things get back to normal. It’s in the top 36% of the Zacks Industry Rank with shares that have jumped 160% over the past year, including a rise of nearly 43% year to date.
As with any company that survived this pandemic, BLMN focused on growing its off-premises sales digitally. As a result, U.S. digital revenue soared 147% compared to 2020. And the company has beaten the Zacks Consensus Estimate in each of the past four quarters with an average surprise of more than 85%!
In its first quarter report from last month, earnings per share of 72 cents topped the Zacks Consensus Estimate by more than 111%. Revenue of $987.47 million beat our expectation by 3.4%.
Perhaps best of all, sales momentum has continued in the first four weeks of the second quarter. The company expects this momentum to remain throughout the quarter… and the analysts seem to agree. In fact, they’re expecting good things for the whole year.
The Zacks Consensus Estimate for this year has surged more than 93% over the past 60 days to $2.01, while next year is up 15% in that time to $2.38. Therefore, analysts expect a 18.4% advance year over year.
Sally Beauty Holdings (SBH - Free Report)
Remember, if you let yourself go and stop caring about your appearance while social distancing at home… then the pandemic wins!
However, the strong fiscal second-quarter results from Sally Beauty Holdings (SBH - Free Report) shows that the coronavirus never stood a chance. The company recently reported its third straight quarter with a positive surprise, which sparked significantly higher earnings revisions from analysts.
SBH is an international specialty retailer and distributor of professional beauty supplies, such as hair color and care products; styling tools; skin and nail care products; and other beauty items. It has more than 5,000 stores. The company operates under two segments: Sally Beauty Supply (59.2% of fiscal 2020 revenues) and Beauty Systems Group (49.8%).
Shares of SBH are up 101% over the past 12 months, including a rise of about 65.2% so far this year. It currently has a Transformation Plan that includes improving customer experiences; strengthening e-commerce; curtailing costs; and enhancing retail fundamentals.
The company’s fiscal second-quarter report included earnings per share of 57 cents, which beat the Zacks Consensus Estimate by a robust 307%! It also improved nearly 150% from last year. Net sales of $926.3 million improved by 6.3% from last year and topped our expectation by about 12%.
Global e-commerce sales jumped 56%, which explains how SBH has been able to report such strong results when many of its stores are closed. Meanwhile, consolidated same-store sales were up 6.5% due to improving consumer confidence, stimulus payments and easing restrictions.
Looking forward, SBH believes that improvements across digital, customer engagement and the supply chain position the company for long-term growth. Analysts are feeling pretty good about the company’s future as well, prompting upward earnings estimate revisions.
The Zacks Consensus Estimate for this year (ending September 2021) is up 30% over the past month to $2.21, while expectations for next year (ending September 2022) are up 19.7% to $2.31 in that time. A lot of this improvement has come since the quarterly report and now suggests year-over-year profit growth of about 4.5%.
Boyd Gaming (BYD - Free Report)
For some people, the end of this pandemic means finally giving old friends and loved ones big, heartfelt hugs without fear of getting sick… or getting someone else sick. And for others, the end of this pandemic means fleeing the family with a huge bankroll and finding some action in the casinos.
Hey… to each their own!
If you’re in the second group, then Boyd Gaming (BYD - Free Report) has you covered. The company is a multi-jurisdictional gaming company with 29 properties and 1.77 million square feet of casino space. It’s segments include Midwest & South (71.7% of total revenues in first quarter 2021); Las Vegas Locals (25.4%); and Downtown Las Vegas (2.9%). It has nearly 37K slot machines, more than 800 table games and over 11K hotel rooms.
Shares are up 192% from a year ago and about 35% so far in 2021. It has now put together four straight quarters of positive surprises with an average beat of more than 76% over that time.
The company is already enjoying increased visitation and growing spend-per-visit across every customer segment… and we’re still vaccinating people! In its first quarter, earnings per share of 93 cents eclipsed the Zacks Consensus Estimate by more than 111%. Total revenues of $753.3 million were up 10.7% from last year and beat our expectation by 13%.
The company continues making moves to expand its portfolio by strengthening current operations and growing capital investment. In addition to the grand reopening, BYD is also benefiting from expansion of online betting offerings and interactive gaming (through its partnership with FanDuel).
Analysts are feeling good about BYD’s prospects as we get back to normal. The Zacks Consensus Estimate for this year is up a remarkable 61.2% over the past two months to $3.24. Next year has climbed 35.3% in that time to $3.45. That leaves profit growth of about 6.5%, but it’s a good bet that will improve as gamblers return to the casinos.
Breakout Biotech Stocks with Triple-Digit Profit Potential
The biotech sector is projected to surge beyond $775 billion by 2024 as scientists develop treatments for thousands of diseases. They’re also finding ways to edit the human genome to literally erase our vulnerability to these diseases. Zacks has just released Century of Biology: 7 Biotech Stocks to Buy Right Now to help investors profit from 7 stocks poised for outperformance. Our recent biotech recommendations have produced gains of +50%, +83% and +164% in as little as 2 months. The stocks in this report could perform even better.
See these 7 breakthrough stocks now >>