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The Zacks Analyst Blog Highlights: Best Buy, DICK'S Sporting Goods, Big Lots and Kroger
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For Immediate Release
Chicago, IL – September 28, 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: Best Buy Co., Inc. (BBY - Free Report) , DICK'S Sporting Goods, Inc. (DKS - Free Report) , Big Lots, Inc. (BIG - Free Report) and The Kroger Co. (KR - Free Report) .
Here are highlights from Friday’s Analyst Blog:
4 Retail Stocks to Bet On Amid Wall Street Blues
It has been a mushy month for major indexes, with quite a few factors acting as deterrents. The COVID-19 pandemic, rising jobless claims, uncertainties surrounding the new stimulus bill as well as the upcoming elections are some of the contentious issues clouding the market and raising investors’ apprehension.
The Dow Jones Industrial, the tech-laden Nasdaq composite and the S&P 500 have declined 5.9%, 8.2% and 6.8%, respectively, in the past month. On a month-to-date basis, the indexes have slipped 5.7%, 10% and 7.4%, respectively.
Digging Deeper
Investors are rattled by the rising COVID-19 cases, more so with no immediate vaccine in the making. Moreover, matters related to the new stimulus bill seem to have become complicated due to the passing of Supreme Court Justice Ruth Bader Ginsburg.
This is even more concerning considering that jobless claims have been on the rise lately. For the week ended Sep 19, jobless claims rose to 870,000, higher than the market’s expectation of 840,000. Also, political tensions related to the upcoming presidential election and strained relations with China are concerns.
It’s difficult to predict how things will turn out in the near term. Nonetheless, Fed officials have been emphasizing on another stimulus package to safeguard the economy. In fact, stimulus support is important for providing greater impetus to consumer spending, as witnessed earlier. Markedly, the retail sector is among the many beneficiaries of the financial aid.
There is no doubt that the retail space has been in distress due to the adversities emerging from the pandemic. However, matters are gradually taking a turn. In fact, reopening of state economies is enabling consumers to resume shopping. Moreover, by streamlining supply-chain operations, shuttering underperforming stores and adapting to consumers’ growing digital inclination, retail players have managed to stay afloat.
Well, these aspects make the retail arena a viable option for parking funds. Let’s see what strategy investors should apply amid the current scenario, while scooping up stocks from this space to keep their portfolio unaffected.
Why Consider Value Investing?
Value investing is essentially about selecting stocks that have good things going for them at a time when they have been beaten down by some external factor, such as the pandemic. The Value Score condenses all valuation metrics into one actionable score that helps investors steer clear of “value traps” and identify stocks that are truly trading at a discount.
All said, with the help of the Zacks Stock Screener, we have zeroed in on four value stocks in the retail space that are worth buying. Stocks with a Zacks Rank #1 (Strong Buy) or 2 (Buy) when combined with a Value Score of A or B have better potential. Notably, each of these stocks outperformed the S&P 500 composite on a year-to-date basis.
Best Buy is a stock worth betting on. The stock sports a Zacks Rank #1 and has a Value Score of A. The provider of technology products, services and solutions has a trailing four-quarter earnings surprise of 33.5%, on average. It has a long-term earnings growth rate of 8.5%. Moreover, the Zacks Consensus Estimate for the company’s current financial year sales and earnings indicates growth of 3.8% and 17.3%, respectively, from the prior-year period’s levels.
DICKS Sporting Goods with a long-term earnings growth rate of 4.8% is also a solid bet. The stock flaunts Zacks Rank #1 and a Value Score of A. This sports goods retailer has a trailing four-quarter earnings surprise of 15.5%, on average. Moreover, the Zacks Consensus Estimate for its current financial year sales and earnings indicates an improvement of nearly 3% each, respectively, from the year-ago period’s numbers.
You may invest in Big Lots. The stock has a Zacks Rank #2 and a Value Score of A. The broad-line retailer has a trailing four-quarter earnings surprise of 54.3%, on average. It has a long-term earnings growth rate of 7.1%. The Zacks Consensus Estimate for its current financial year sales and earnings indicates an increase of 13.7% and 85.6%, respectively, from the year-ago period’s levels.
We also suggest investing in The Kroger Co., which has a long-term earnings growth rate of 6.2%. This supermarket and multi-department stores operator has a trailing four-quarter earnings surprise of 12.9%, on average. The stock has a Zacks Rank #2 and a Value Score of A. Moreover, the Zacks Consensus Estimate for its current financial year sales and earnings suggests an improvement of 8.2% and 46.8%, respectively, from the year-ago period’s levels.
Biggest Tech Breakthrough in a Generation
Be among the early investors in the new type of device that experts say could impact society as much as the discovery of electricity. Current technology will soon be outdated and replaced by these new devices. In the process, it’s expected to create 22 million jobs and generate $12.3 trillion in activity.
A select few stocks could skyrocket the most as rollout accelerates for this new tech. Early investors could see gains similar to buying Microsoft in the 1990s. Zacks’ just-released special report reveals 8 stocks to watch. The report is only available for a limited time.
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/performancefor information about the performance numbers displayed in this press release.
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The Zacks Analyst Blog Highlights: Best Buy, DICK'S Sporting Goods, Big Lots and Kroger
For Immediate Release
Chicago, IL – September 28, 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: Best Buy Co., Inc. (BBY - Free Report) , DICK'S Sporting Goods, Inc. (DKS - Free Report) , Big Lots, Inc. (BIG - Free Report) and The Kroger Co. (KR - Free Report) .
Here are highlights from Friday’s Analyst Blog:
4 Retail Stocks to Bet On Amid Wall Street Blues
It has been a mushy month for major indexes, with quite a few factors acting as deterrents. The COVID-19 pandemic, rising jobless claims, uncertainties surrounding the new stimulus bill as well as the upcoming elections are some of the contentious issues clouding the market and raising investors’ apprehension.
The Dow Jones Industrial, the tech-laden Nasdaq composite and the S&P 500 have declined 5.9%, 8.2% and 6.8%, respectively, in the past month. On a month-to-date basis, the indexes have slipped 5.7%, 10% and 7.4%, respectively.
Digging Deeper
Investors are rattled by the rising COVID-19 cases, more so with no immediate vaccine in the making. Moreover, matters related to the new stimulus bill seem to have become complicated due to the passing of Supreme Court Justice Ruth Bader Ginsburg.
This is even more concerning considering that jobless claims have been on the rise lately. For the week ended Sep 19, jobless claims rose to 870,000, higher than the market’s expectation of 840,000. Also, political tensions related to the upcoming presidential election and strained relations with China are concerns.
It’s difficult to predict how things will turn out in the near term. Nonetheless, Fed officials have been emphasizing on another stimulus package to safeguard the economy. In fact, stimulus support is important for providing greater impetus to consumer spending, as witnessed earlier. Markedly, the retail sector is among the many beneficiaries of the financial aid.
There is no doubt that the retail space has been in distress due to the adversities emerging from the pandemic. However, matters are gradually taking a turn. In fact, reopening of state economies is enabling consumers to resume shopping. Moreover, by streamlining supply-chain operations, shuttering underperforming stores and adapting to consumers’ growing digital inclination, retail players have managed to stay afloat.
Well, these aspects make the retail arena a viable option for parking funds. Let’s see what strategy investors should apply amid the current scenario, while scooping up stocks from this space to keep their portfolio unaffected.
Why Consider Value Investing?
Value investing is essentially about selecting stocks that have good things going for them at a time when they have been beaten down by some external factor, such as the pandemic. The Value Score condenses all valuation metrics into one actionable score that helps investors steer clear of “value traps” and identify stocks that are truly trading at a discount.
All said, with the help of the Zacks Stock Screener, we have zeroed in on four value stocks in the retail space that are worth buying. Stocks with a Zacks Rank #1 (Strong Buy) or 2 (Buy) when combined with a Value Score of A or B have better potential. Notably, each of these stocks outperformed the S&P 500 composite on a year-to-date basis.
You can see the complete list of today’s Zacks #1 Rank stocks here.
Top Picks
Best Buy is a stock worth betting on. The stock sports a Zacks Rank #1 and has a Value Score of A. The provider of technology products, services and solutions has a trailing four-quarter earnings surprise of 33.5%, on average. It has a long-term earnings growth rate of 8.5%. Moreover, the Zacks Consensus Estimate for the company’s current financial year sales and earnings indicates growth of 3.8% and 17.3%, respectively, from the prior-year period’s levels.
DICKS Sporting Goods with a long-term earnings growth rate of 4.8% is also a solid bet. The stock flaunts Zacks Rank #1 and a Value Score of A. This sports goods retailer has a trailing four-quarter earnings surprise of 15.5%, on average. Moreover, the Zacks Consensus Estimate for its current financial year sales and earnings indicates an improvement of nearly 3% each, respectively, from the year-ago period’s numbers.
You may invest in Big Lots. The stock has a Zacks Rank #2 and a Value Score of A. The broad-line retailer has a trailing four-quarter earnings surprise of 54.3%, on average. It has a long-term earnings growth rate of 7.1%. The Zacks Consensus Estimate for its current financial year sales and earnings indicates an increase of 13.7% and 85.6%, respectively, from the year-ago period’s levels.
We also suggest investing in The Kroger Co., which has a long-term earnings growth rate of 6.2%. This supermarket and multi-department stores operator has a trailing four-quarter earnings surprise of 12.9%, on average. The stock has a Zacks Rank #2 and a Value Score of A. Moreover, the Zacks Consensus Estimate for its current financial year sales and earnings suggests an improvement of 8.2% and 46.8%, respectively, from the year-ago period’s levels.
Biggest Tech Breakthrough in a Generation
Be among the early investors in the new type of device that experts say could impact society as much as the discovery of electricity. Current technology will soon be outdated and replaced by these new devices. In the process, it’s expected to create 22 million jobs and generate $12.3 trillion in activity.
A select few stocks could skyrocket the most as rollout accelerates for this new tech. Early investors could see gains similar to buying Microsoft in the 1990s. Zacks’ just-released special report reveals 8 stocks to watch. The report is only available for a limited time.
See 8 breakthrough stocks now>>
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Zacks Investment Research
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support@zacks.com
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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 https://www.zacks.com/performancefor information about the performance numbers displayed in this press release.