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The Zacks Analyst Blog Highlights: Community Health Systems, Herc Holdings, MarineMax, OneWater Marine, Brunswick Corp and Tempur Sealy

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For Immediate Release

Chicago, IL – May 6, 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: Community Health Systems, Inc. (CYH - Free Report) , Herc Holdings Inc. (HRI - Free Report) , MarineMax, Inc. (HZO - Free Report) , OneWater Marine Inc. (ONEW - Free Report) , Brunswick Corporation (BC - Free Report) and Tempur Sealy International, Inc. (TPX - Free Report) .

Here are highlights from Wednesday’s Analyst Blog:

How Not to Lose Money When Markets Plunge

Okay, so everything you're looking at is in the red.

You' re hearing that the rising inflation could lead to higher interest rates sometime this year. That would mean money flowing out of the market. Which would be bad for stocks.

You're hearing that taxation on the wealthy is going to increase, so they could pull their money out of the market. Again, not a great thing for stocks.

You're hearing that this could be a bubble, so people could be taking profits. And that's not good for stocks either!

So what do you do? Do you sit tight and watch the prices? Do you sell along with the other sellers? Do you cut your losses? Do you wait for the bottom so you can buy cheap?

This puzzle can be hard to figure out, considering that you're probably operating on limited resources, meaning that you can't afford to lose a lot of money. Of course, losing isn't an option for most investors, even the wealthiest.

The way to build a fortune, or even just a nest egg is not that complicated. Irrespective of your personal investment goals, you could try sticking with some basic principles, such as the following-

Buy when others are selling: When there's a sell-off in any stock that you're eyeing, it's a great opportunity to buy. You could be wondering why there's a sell-off in the first place. And whether there's something you don't know about the stock.

A bit of healthy skepticism is good, because it makes you work harder to do your research. But don't overdo it.  Share prices often move around because large players are making moves in line with their investment goals and strategies.

It doesn't have to be something negative. Even if it is, consider your investment horizon. Some stocks may look bad in the near term, but if you're a long-term investor, it may make sense for you.

Choose industries with growth potential: This is a golden rule that can't be overstated. Sure, every stock in a given industry (no matter how hot), won't do well. But most will benefit from the common advantages impacting the industry at a given time. So choosing the industry before the stock helps to narrow down the list.

It also helps to diversify your portfolio. If your portfolio includes stocks from different industries, there's a greater chance of balancing your losses and coming out stronger in the end.

Add some tech: Tech is being perceived as overvalued this year, with the pandemic boosting share prices all of last year. The tech sector is up 10.3% so far this year compared to 11.6% for the S&P 500. Still, valuation multiples remain somewhat high (27.0X P/E for the tech sector versus 22.1X for the S&P 500).

It's possible to manage without tech stocks that may be harder to understand. But I personally think that every portfolio should have some tech. This year, tech is not being rewarded even for strong earnings shows and huge estimate revisions.

But rest assured that tech stocks will climb out of the doldrums. After all, it is technology that is finding its way into every other sector to make things more efficient. No company can survive without tech adoption on an increasingly larger scale.

Additionally, while P/E multiples for tech tend to be higher, making tech stocks more expensive, it's also a fact that tech offers much greater growth potential that is usually rewarded with higher multiples. So, this could be just the right time to get into tech.  

Don't re-invent the wheel: If you're relatively new to the market, you may think that your own way of doing things will get you the same or better results. But the longer you stay, the more you'll realize that there are no secrets. It's all about doing your homework on the different stocks and using tried and tested methods to replicate success.

At Zacks, we have a number of tools that can get you there quickly.

First among them is the Zacks Rank. This is a scoring system ranging from #1 (Strong Buy) through #5 (Strong Sell). The Zacks Rank has been proven to generate market-beating short-term returns for 20+ years.

Then there's the Zacks Industry Rank, indicating which Zacks-ranked industries are likely to outperform others. It has been seen historically that the top 50% of these industries outperform the bottom 50% by a factor of 2 to 1.

Then there's the grading of companies based on their potential to deliver value, growth or momentum. These are called Value Score, Growth Score and Momentum Score, respectively.

These factors help you narrow down the list to a smaller group that you can study more easily.

Here are some non-tech stocks that satisfy the above criteria (and more). So they could  make good additions to your portfolios-

Community Health Systems: The company is one of the largest publicly traded hospital companies in the United States and a leading operator of general acute care hospitals, outpatient facilities and facilities for skilled nursing and home care services based on individual community needs. At 2020-end, it had 89 hospitals and 14,110 licensed beds, comprised of 87 general acute care hospitals and two stand-alone rehabilitation or psychiatric hospitals across 18 states.

The company belongs in the Medical – Hospital industry (top 11% of Zacks-classified industries).

The shares carry a Zacks Rank #2 (Buy), Value Score A and Growth Score B. Its earnings are expected to grow 24.4% this year and 44.3% in the next. The Zacks Consensus Estimates for 2021 and 2022 earnings are up 200.0% and 14.8%, respectively in the last 4 weeks.  

The average EPS surprise in the last four quarters is 248.7%

Herc Holdings: Herc Holdings, through its subsidiary Herc Rentals Inc. rents out aerial, earthmoving, material handling, trucks and trailers, air compressors, compaction, and lighting equipment, to commercial and residential construction, industrial and manufacturing, refineries and petrochemicals, civil infrastructure, automotive, government and municipalities, energy, remediation, emergency response, facilities, entertainment and agriculture customers primarily in North America.

The company belongs in the Transportation - Equipment and Leasing industry (top 26% of Zacks-classified industries).

The shares carry a Zacks Rank #1, Value Score B and Growth Score B. Its earnings are expected to grow 92.0% this year and 18.3% in the next. The Zacks Consensus Estimates for 2021 and 2022 earnings are up 34.4% and 24.4%, respectively in the last 4 weeks. 

The average EPS surprise in the last four quarters is 141.7%

MarineMax: MarineMax is the nation's largest recreational boat and yacht retailer with a number of premium brands. It also provides yacht brokerage and charter services. MarineMax currently has 62 retail locations across the U.S. and operates MarineMax Vacations in Tortola, British Virgin Islands.

The company belongs in the Retail – Miscellaneous industry (top 40% of Zacks-classified industries).

The shares carry a Zacks Rank #1, Value Score A and Growth Score A. Its earnings are expected to grow 60.2% this year and 4.3% in the next. The Zacks Consensus Estimates for 2021 and 2022 earnings are up 26.8% and 26.3%, respectively in the last 4 weeks. 

The average EPS surprise in the last four quarters is 125.8%

OneWater Marine: OneWater Marine is a premium recreational boat retailer operating mainly in the United States. It sells new and pre-owned boats, parts and accessories, offers finance and insurance products, and provides maintenance and repair as well as ancillary services.

The company belongs in the Leisure and Recreation Products industry (top 17% of Zacks-classified industries).

The shares carry a Zacks Rank #1, Value Score A and Growth Score A. Its earnings are expected to grow 42.9% this year and 7.8% in the next. The Zacks Consensus Estimates for 2021 and 2022 earnings are up 21.0% and 19.9%, respectively in the last 4 weeks. 

The average EPS surprise in the last four quarters is 224.1%

Brunswick Corp.: Brunswick designs, manufactures and markets recreation products worldwide. It operates through the Propulsion, Parts & Accessories, and Boat segments.

The company belongs in the Leisure and Recreation Products industry (top 17% of Zacks-classified industries).

The shares carry a Zacks Rank #2, Value Score B and Growth Score B. Its earnings are expected to grow 43.2% this year and 11.9% in the next. The Zacks Consensus Estimates for 2021 and 2022 earnings are up 12.0% and 11.3%, respectively in the last 4 weeks. 

The average EPS surprise in the last four quarters is 61.6%

Tempur Sealy International: Tempur Sealy develops, manufactures and markets bedding products, primarily in North America and also internationally. Its portfolio includes mattresses, adjustable bases, pillows and other sleep and relaxation products.

The company belongs in the Retail - Home Furnishings industry (top 2% of Zacks-classified industries).

The shares carry a Zacks Rank #2, Value Score B and Growth Score B. Its earnings are expected to grow 40.8% this year and 12.1% in the next. The Zacks Consensus Estimates for 2021 and 2022 earnings are up 10.6% and 11.6%, respectively in the last 4 weeks. 

The average EPS surprise in the last four quarters is 1,697.3%.

Infrastructure Stock Boom to Sweep America

A massive push to rebuild the crumbling U.S. infrastructure will soon be underway. It's bipartisan, urgent, and inevitable. Trillions will be spent. Fortunes will be made.

The only question is "Will you get into the right stocks early when their growth potential is greatest?"

Zacks has released a Special Report to help you do just that, and today it's free. Discover 7 special companies that look to gain the most from construction and repair to roads, bridges, and buildings, plus cargo hauling and energy transformation on an almost unimaginable scale.

Download FREE: How to Profit from Trillions on Spending for Infrastructure >>

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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.