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The Zacks Analyst Blog Highlights: CAI International, Textainer Group, Cowen Group, Aviat Network and Mesa Air
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For Immediate Release
Chicago, IL – February 24, 2021 – 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: CAI International Inc , Textainer Group Holdings Ltd. , Cowen Group, Inc. , Aviat Networks, Inc. (AVNW - Free Report) and Mesa Air Group, Inc. (MESA - Free Report) .
Here are highlights from Tuesday’s Analyst Blog:
5 Buy-Ranked Stocks That Recently Touched Annual Highs
One of the scariest things to do is to chase a stock that recently hit its annual high, or six-month high, or monthly high, or weekly high. Whatever the period, that isn’t as important as the stock hitting a high. Because that immediately increases the concern that there may not be further upside.
So what should you be doing when this happens? Should you simply avoid all these names? Or should you take a closer look to see if there’s scope to make some solid gains.
You might be surprised to learn that historically, shares that have hit new highs usually move on to greater highs.
But it isn’t magic.
There are definite reasons for the sudden appreciation in a company’s shares. And it isn’t always because the smart money is making moves. It could be positive news flow with respect to the market, or with respect to the company’s operations. However, the most common reason a company’s shares appreciate over time is its earnings growth trajectory and the expectations of future growth in its earnings.
As a result, the estimate revision trend is the best indicator of future gains in share prices.
So when studying stocks that have recently hit their high points, take a look at what’s happening behind the scenes. You’ll know immediately if the price appreciation will sustain over time, or if it’s a one-time thing.
After that, be a little patient. Wait for it to happen.
Here’s a discussion of a few stocks that recently hit their 52-week highs.
CAI International
This #1 (Strong Buy) ranked company has a Growth Score B, Value Score A and Momentum Score A.
It belongs in the Transportation - Equipment and Leasing industry, which is in the top 21% of Zacks-classified industries. CAI is one of the world's leading intermodal freight container leasing and management companies.
Better still, there are significant upward revisions to earnings estimates that have sent the Zacks Consensus for 2021 and 2022 up $2.20 (45.7%) and $2.24 (42.7%) in the last seven days.
The company’s shares jumped 23.7% in the past week to reach an annual high. But given the continued growth prospects there should be more to come.
So it makes sense to jump in.
Textainer Group Holdings
#1 ranked Textainer has a Growth Score B, Value Score A and Momentum Score A.
This one too is part of the Transportation - Equipment and Leasing industry. In fact, it’s the world’s largest lessor of intermodal containers with a total fleet of more than 1.3 million containers, representing over 2,000,000 TEU.
The lone analyst providing earnings estimates for this stock has made significant upward revisions: $1.62 (74.7%) for 2021 and $1.19 (45.6%) for 2022 in the last seven days.
The share price soared 25.2% to its 52-week high.
But as in the previous case, the strong growth potential indicates that they’ll move higher in the coming months.
Cowen Group
In third place is #1 ranked Cowen, which has a B for Growth, Value and Momentum Scores.
It belongs in the Financial - Investment Bank industry, top 1% of Zacks classified industries. Cowen Group, through its operating subsidiaries, provides investment banking, equity research, sales and trading, asset management and alternative asset management services to companies and institutional investor clients in the healthcare, technology, telecommunications, aerospace and defense, consumer and alternative energy sectors.
In the last 30 days, analysts have taken their 2021 and 2022 estimates up a respective $2.24 (47.0%) and $1.99 (38.6%).
The share price jumped 26.2% to its annual high. And given the continued growth potential, there should be further appreciation.
Aviat Networks
#1 ranked Aviat has a Growth Score A, and Value and Momentum Scores of C.
It’s part of the Wireless Equipment industry (top 41% of Zacks classified industries). Formerly Harris Stratex Networks, Aviat is a global supplier of wireless network solutions and network management software, backed by a suite of professional services and support
The last 30 days saw the Zacks Consensus Estimate for 2021 earnings jump $1.40 (47.5%). 2022 estimates aren’t available yet.
Since the company’s fiscal year ends in June, this seems to indicate limited visibility. So I’d be more cautious about investing in these shares.
Mesa Air Group
#2 (Buy)-ranked Mesa has Growth and Value Scores of A and a Momentum Score of D.
It belongs to the Transportation – Airline industry, which remains in the doldrums, and consequently, is in the bottom 4% of Zacks classified industries. The company provides regional air carrier services under capacity purchase agreements with the American Airlines and United Airlines.
However, its estimate revision history is something to consider. The five analysts providing earnings estimates have taken the Zacks Consensus Estimate for 2021 and 2022 up a respective 63 cents (175.0%) and 13 cents (12.5%) in the last 30 days.
The shares have appreciated 21.2% over the past week to their annual high with the revisions history indicating buoyancy. With the economy expected to rebound, look for both the estimate revisions and price response to continue.
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.
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.
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The Zacks Analyst Blog Highlights: CAI International, Textainer Group, Cowen Group, Aviat Network and Mesa Air
For Immediate Release
Chicago, IL – February 24, 2021 – 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: CAI International Inc , Textainer Group Holdings Ltd. , Cowen Group, Inc. , Aviat Networks, Inc. (AVNW - Free Report) and Mesa Air Group, Inc. (MESA - Free Report) .
Here are highlights from Tuesday’s Analyst Blog:
5 Buy-Ranked Stocks That Recently Touched Annual Highs
One of the scariest things to do is to chase a stock that recently hit its annual high, or six-month high, or monthly high, or weekly high. Whatever the period, that isn’t as important as the stock hitting a high. Because that immediately increases the concern that there may not be further upside.
So what should you be doing when this happens? Should you simply avoid all these names? Or should you take a closer look to see if there’s scope to make some solid gains.
You might be surprised to learn that historically, shares that have hit new highs usually move on to greater highs.
But it isn’t magic.
There are definite reasons for the sudden appreciation in a company’s shares. And it isn’t always because the smart money is making moves. It could be positive news flow with respect to the market, or with respect to the company’s operations. However, the most common reason a company’s shares appreciate over time is its earnings growth trajectory and the expectations of future growth in its earnings.
As a result, the estimate revision trend is the best indicator of future gains in share prices.
So when studying stocks that have recently hit their high points, take a look at what’s happening behind the scenes. You’ll know immediately if the price appreciation will sustain over time, or if it’s a one-time thing.
After that, be a little patient. Wait for it to happen.
Here’s a discussion of a few stocks that recently hit their 52-week highs.
CAI International
This #1 (Strong Buy) ranked company has a Growth Score B, Value Score A and Momentum Score A.
It belongs in the Transportation - Equipment and Leasing industry, which is in the top 21% of Zacks-classified industries. CAI is one of the world's leading intermodal freight container leasing and management companies.
Better still, there are significant upward revisions to earnings estimates that have sent the Zacks Consensus for 2021 and 2022 up $2.20 (45.7%) and $2.24 (42.7%) in the last seven days.
The company’s shares jumped 23.7% in the past week to reach an annual high. But given the continued growth prospects there should be more to come.
So it makes sense to jump in.
Textainer Group Holdings
#1 ranked Textainer has a Growth Score B, Value Score A and Momentum Score A.
This one too is part of the Transportation - Equipment and Leasing industry. In fact, it’s the world’s largest lessor of intermodal containers with a total fleet of more than 1.3 million containers, representing over 2,000,000 TEU.
The lone analyst providing earnings estimates for this stock has made significant upward revisions: $1.62 (74.7%) for 2021 and $1.19 (45.6%) for 2022 in the last seven days.
The share price soared 25.2% to its 52-week high.
But as in the previous case, the strong growth potential indicates that they’ll move higher in the coming months.
Cowen Group
In third place is #1 ranked Cowen, which has a B for Growth, Value and Momentum Scores.
It belongs in the Financial - Investment Bank industry, top 1% of Zacks classified industries. Cowen Group, through its operating subsidiaries, provides investment banking, equity research, sales and trading, asset management and alternative asset management services to companies and institutional investor clients in the healthcare, technology, telecommunications, aerospace and defense, consumer and alternative energy sectors.
In the last 30 days, analysts have taken their 2021 and 2022 estimates up a respective $2.24 (47.0%) and $1.99 (38.6%).
The share price jumped 26.2% to its annual high. And given the continued growth potential, there should be further appreciation.
Aviat Networks
#1 ranked Aviat has a Growth Score A, and Value and Momentum Scores of C.
It’s part of the Wireless Equipment industry (top 41% of Zacks classified industries). Formerly Harris Stratex Networks, Aviat is a global supplier of wireless network solutions and network management software, backed by a suite of professional services and support
The last 30 days saw the Zacks Consensus Estimate for 2021 earnings jump $1.40 (47.5%). 2022 estimates aren’t available yet.
Since the company’s fiscal year ends in June, this seems to indicate limited visibility. So I’d be more cautious about investing in these shares.
Mesa Air Group
#2 (Buy)-ranked Mesa has Growth and Value Scores of A and a Momentum Score of D.
It belongs to the Transportation – Airline industry, which remains in the doldrums, and consequently, is in the bottom 4% of Zacks classified industries. The company provides regional air carrier services under capacity purchase agreements with the American Airlines and United Airlines.
However, its estimate revision history is something to consider. The five analysts providing earnings estimates have taken the Zacks Consensus Estimate for 2021 and 2022 up a respective 63 cents (175.0%) and 13 cents (12.5%) in the last 30 days.
The shares have appreciated 21.2% over the past week to their annual high with the revisions history indicating buoyancy. With the economy expected to rebound, look for both the estimate revisions and price response to continue.
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>>
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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/performance for information about the performance numbers displayed in this press release.