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Terex, Employers Holdings, United States Steel, Conn's and AdvanSix highlighted as Zacks Bull and Bear of the Day
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For Immediate Release
Chicago, IL – August 13, 2021 – Zacks Equity Research Shares of Terex Corporation (TEX - Free Report) as the Bull of the Day, Employers Holdings, Inc. (EIG - Free Report) as the Bear of the Day. In addition, Zacks Equity Research provides analysis on United States Steel Corporation (X - Free Report) , Conn’s Inc. (CONN - Free Report) and AdvanSix Inc. (ASIX - Free Report) .
This earnings season has been a profitable one so far. Several companies have come in and beat earnings. That is providing a bit of momentum. One such stock that just beat earnings is today's Bull of the Day. I am talking about Terex.
Terex Corporation manufactures and sells aerial work platforms and materials processing machinery worldwide. The company operates in two segments, Aerial Work Platforms (AWP) and Materials Processing (MP).
Terex is a Zacks Rank #1 (Strong Buy) in the Manufacturing – Construction and Mining industry which ranks in the Bottom 12% of our Zacks Industry Rank. In addition to the favorable Zacks Rank, the stock currently enjoys a Zacks Value Style Score of B, Growth of A and Momentum of D to help it round out with a VGM Composite Score of A.
The reason for the favorable Zacks Rank is the series of positive earnings estimate revisions coming from analysts .Over the last thirty days, eight analysts have increased their earnings estimates for the current year while seven have done so for next year. The bullish sentiment has increased the Zacks Consensus Estimate from $2.54 to $3.00 for the current year and from $3.81 to $4.30 for next year.
Those revisions call for some serious growth. Current year sales growth is estimated to come in at 26.95% while next year is slated to come in at 11.15%. That translates to EPS growth of 2,200% for the current year and 43.12% for next year. This most recent quarter's $1.02 EPS number was 92% better-than-expected. That follows up to last quarter's great 154% earnings beat.
When you are looking at a long-term stock to buy, you want to find something where earnings are moving in a positive direction. Stocks have a tendency to move along with earnings, so more earnings should mean more profits for investors. Unfortunately, the opposite also tends to be true. Stocks that see their earnings contract typically have a tougher time bringing investors profits.
One way to uncover stocks with earnings growth is by leaning on the Zacks Rank. Stocks with favorable Zacks Ranks have a tendency to have earnings estimates which are moving in a positive direction. Those which are not in the good graces of the ranks tend to have contracting earnings.
Today's Bear of the Day is a stock which has seen earnings estimates move in a negative direction. I'm talking about Employers Holding. Employers Holdings, Inc., through its subsidiaries, operates in the commercial property and casualty insurance industry primarily in the United States. It offers workers' compensation insurance to small businesses in low to medium hazard industries. The company markets its products through independent local, regional, and national agents and brokers; alternative distribution channels; and national, regional, and local trade groups and associations, as well as directly to customers.
EIG is currently a Zacks Rank #5 (Strong Sell) in the Insurance – Accident and Health industry which ranks in the Top 47% of our Zacks Industry Rank. The reason for the unfavorable rank is negative earnings estimate revisions coming from analysts. Negative revisions have cut our Zacks Consensus Estimates for the current quarter, next quarter, and current year. The bearish sentiment has dropped our current year consensus from $2.08 to $2.00.
Additional content:
3 Growth Stocks to Buy on Inflation Data, Economic Strength
The consumer price inflation (CPI) for the month of July, which reflects the general level of price, came in at 5.4%, a bit ahead of the market expectation of 5.3%. Month over month, the increase was 0.5%, which moderated from the 0.9% rise witnessed in June.
A more reliable measure is core inflation, which excludes petroleum and food prices, which inched up 0.3% last month, lower than economists' assumption of a 0.4% escalation. It was also below the 0.9% climb recorded in June.
Major components that contributed to the high inflation were food, new vehicles and shelter. Prices relented a bit for energy, used cars and trucks, apparel, transportation services and medical care. These areas of the economy saw a price surge due to pent-up demand for travel, shopping and delayed healthcare by Americans due to the COVID-19 pandemic.
Though the general price level is at a 13-year high, the rise slowed down. And that cheered the markets with the Dow and S&P moving up 0.62% and 0.25%, respectively.
Per the latest data on inflation, it was widely perceived that price rise might have already peaked but was transitory at the same time as Fed assured.
Some economists are of the opinion that even though the initial burst in inflation is receding, overall, it may remain elevated due to rising wages, high rent, etc.
However, the odds against monetary tightening remain low at the moment and interest rates too may continue to be tepid, thereby supporting businesses. The state of the labor market will be the determining factor for the Fed's current monetary policy.
On another positive note, the economy seems to be on a strong footing as measured by GDP, which augmented at an annualized rate of 6.5% in the second quarter. Consumer spending jumped 11.8% during the three months ended Jun 30, the second-fastest rate since 1952 as people grew more confident about their disposable income.
Economic growth will sustain as rebuilding of infrastructure sets the ball rolling with regard to economic activities. The $1.2-trillion infrastructure bill is already approved by the Senate and currently awaits further approval in the House of Representatives.
Stocks to Buy
Against an overall upbeat economic backdrop, we pick three growth stocks that should fetch remarkable returns. Each of these stocks carries a Strong Zacks Rank with a solid Growth Score. They have also witnessed an upward revision in earnings estimates.
United States Steel is a steel manufacturer in the United States and the fifth largest in the world. Another leading producer of structural steel is Nucor Corp.
United States Steel is set to benefit from U.S. steel prices that made a strong recovery and hit record levels after seeing the pandemic-induced multi-year lows in August 2020.
With the acquisition of Big River steel in January 2021, the company's position will expand in the high-margin steel-end markets including energy, infrastructure and automotive. The deal will rake in as much as $1 billion worth capital and drive operational cash improvements by 2022.
The company is also deleveraging its balance sheet, which will reduce its interest expense. A strong balance sheet with adequate financial flexibility will aid it to reap future growth opportunities that will come along with Biden's infrastructure spending.
The stock currently has a Zacks Rank #1 (Strong Buy) and a Growth Score B. The Zacks Consensus Estimate for its current-year earnings improved 10.2% over the last 30 days. You can see the complete list of today's Zacks #1 Rank stocks here.
Conns is set to gain from buoyant demand for its products as consumer spending continues to grow.
The company sells major home appliances and a variety of consumer electronics products. Besides, it deals in home office equipment, lawn and garden products as well as bedding, and continues introducing additional product categories for the home to boost same-store sales and respond to the customers' product needs.
De-risking balance sheet, and expanding its digital and e-commerce capabilities bode well for the long haul. Its strategic initiatives including expansion of its brick-and-mortar footprint and enhancement of its merchandising and marketing strategies will likely contribute to its sales.
Its strong cash flow backs its long-term initiatives. The stock is set for growth in the long run with the economy booming.
The stock currently has a Zacks Rank of 1 and a Growth Score A. The Zacks Consensus Estimate for its current-year earnings improved 27.5% over the last 60 days.
AdvanSix, the chemical manufacturer, which produces nylon 6 resin, chemical intermediates and ammonium sulfate fertilizer, rides high on the strong economy.
The company is expected to gain from an uptick in demand across a number of markets including automotive, building & construction, electronics and packaging. Higher demand is expected to bolster its volumes. Solid agricultural industry fundamentals also bode well.
Its robust balance sheet health provides greater flexibility and more options for further value creation. The company is expecting operational efficiency amid sturdy industry dynamics to lift earnings and cash flows in 2021.
The company presently sports a Zacks Rank #1and has a Growth Score B. The Zacks Consensus Estimate for 2021 earnings has been revised 34.7% upward over the past 30 days.
Zacks.com provides investment resources and informs you of these resources, which you may choose to use in making your own investment decisions. Zacks is providing information on this resource to you subject to the Zacks "Terms and Conditions of Service" disclaimer. www.zacks.com/disclaimer.
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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Terex, Employers Holdings, United States Steel, Conn's and AdvanSix highlighted as Zacks Bull and Bear of the Day
For Immediate Release
Chicago, IL – August 13, 2021 – Zacks Equity Research Shares of Terex Corporation (TEX - Free Report) as the Bull of the Day, Employers Holdings, Inc. (EIG - Free Report) as the Bear of the Day. In addition, Zacks Equity Research provides analysis on United States Steel Corporation (X - Free Report) , Conn’s Inc. (CONN - Free Report) and AdvanSix Inc. (ASIX - Free Report) .
Here is a synopsis of all five stocks:
Bull of the Day:
This earnings season has been a profitable one so far. Several companies have come in and beat earnings. That is providing a bit of momentum. One such stock that just beat earnings is today's Bull of the Day. I am talking about Terex.
Terex Corporation manufactures and sells aerial work platforms and materials processing machinery worldwide. The company operates in two segments, Aerial Work Platforms (AWP) and Materials Processing (MP).
Terex is a Zacks Rank #1 (Strong Buy) in the Manufacturing – Construction and Mining industry which ranks in the Bottom 12% of our Zacks Industry Rank. In addition to the favorable Zacks Rank, the stock currently enjoys a Zacks Value Style Score of B, Growth of A and Momentum of D to help it round out with a VGM Composite Score of A.
The reason for the favorable Zacks Rank is the series of positive earnings estimate revisions coming from analysts .Over the last thirty days, eight analysts have increased their earnings estimates for the current year while seven have done so for next year. The bullish sentiment has increased the Zacks Consensus Estimate from $2.54 to $3.00 for the current year and from $3.81 to $4.30 for next year.
Those revisions call for some serious growth. Current year sales growth is estimated to come in at 26.95% while next year is slated to come in at 11.15%. That translates to EPS growth of 2,200% for the current year and 43.12% for next year. This most recent quarter's $1.02 EPS number was 92% better-than-expected. That follows up to last quarter's great 154% earnings beat.
Bear of the Day:
When you are looking at a long-term stock to buy, you want to find something where earnings are moving in a positive direction. Stocks have a tendency to move along with earnings, so more earnings should mean more profits for investors. Unfortunately, the opposite also tends to be true. Stocks that see their earnings contract typically have a tougher time bringing investors profits.
One way to uncover stocks with earnings growth is by leaning on the Zacks Rank. Stocks with favorable Zacks Ranks have a tendency to have earnings estimates which are moving in a positive direction. Those which are not in the good graces of the ranks tend to have contracting earnings.
Today's Bear of the Day is a stock which has seen earnings estimates move in a negative direction. I'm talking about Employers Holding. Employers Holdings, Inc., through its subsidiaries, operates in the commercial property and casualty insurance industry primarily in the United States. It offers workers' compensation insurance to small businesses in low to medium hazard industries. The company markets its products through independent local, regional, and national agents and brokers; alternative distribution channels; and national, regional, and local trade groups and associations, as well as directly to customers.
EIG is currently a Zacks Rank #5 (Strong Sell) in the Insurance – Accident and Health industry which ranks in the Top 47% of our Zacks Industry Rank. The reason for the unfavorable rank is negative earnings estimate revisions coming from analysts. Negative revisions have cut our Zacks Consensus Estimates for the current quarter, next quarter, and current year. The bearish sentiment has dropped our current year consensus from $2.08 to $2.00.
Additional content:
3 Growth Stocks to Buy on Inflation Data, Economic Strength
The consumer price inflation (CPI) for the month of July, which reflects the general level of price, came in at 5.4%, a bit ahead of the market expectation of 5.3%. Month over month, the increase was 0.5%, which moderated from the 0.9% rise witnessed in June.
A more reliable measure is core inflation, which excludes petroleum and food prices, which inched up 0.3% last month, lower than economists' assumption of a 0.4% escalation. It was also below the 0.9% climb recorded in June.
Major components that contributed to the high inflation were food, new vehicles and shelter. Prices relented a bit for energy, used cars and trucks, apparel, transportation services and medical care. These areas of the economy saw a price surge due to pent-up demand for travel, shopping and delayed healthcare by Americans due to the COVID-19 pandemic.
Though the general price level is at a 13-year high, the rise slowed down. And that cheered the markets with the Dow and S&P moving up 0.62% and 0.25%, respectively.
Per the latest data on inflation, it was widely perceived that price rise might have already peaked but was transitory at the same time as Fed assured.
Some economists are of the opinion that even though the initial burst in inflation is receding, overall, it may remain elevated due to rising wages, high rent, etc.
However, the odds against monetary tightening remain low at the moment and interest rates too may continue to be tepid, thereby supporting businesses. The state of the labor market will be the determining factor for the Fed's current monetary policy.
On another positive note, the economy seems to be on a strong footing as measured by GDP, which augmented at an annualized rate of 6.5% in the second quarter. Consumer spending jumped 11.8% during the three months ended Jun 30, the second-fastest rate since 1952 as people grew more confident about their disposable income.
Economic growth will sustain as rebuilding of infrastructure sets the ball rolling with regard to economic activities. The $1.2-trillion infrastructure bill is already approved by the Senate and currently awaits further approval in the House of Representatives.
Stocks to Buy
Against an overall upbeat economic backdrop, we pick three growth stocks that should fetch remarkable returns. Each of these stocks carries a Strong Zacks Rank with a solid Growth Score. They have also witnessed an upward revision in earnings estimates.
United States Steel is a steel manufacturer in the United States and the fifth largest in the world. Another leading producer of structural steel is Nucor Corp.
United States Steel is set to benefit from U.S. steel prices that made a strong recovery and hit record levels after seeing the pandemic-induced multi-year lows in August 2020.
With the acquisition of Big River steel in January 2021, the company's position will expand in the high-margin steel-end markets including energy, infrastructure and automotive. The deal will rake in as much as $1 billion worth capital and drive operational cash improvements by 2022.
The company is also deleveraging its balance sheet, which will reduce its interest expense. A strong balance sheet with adequate financial flexibility will aid it to reap future growth opportunities that will come along with Biden's infrastructure spending.
The stock currently has a Zacks Rank #1 (Strong Buy) and a Growth Score B. The Zacks Consensus Estimate for its current-year earnings improved 10.2% over the last 30 days. You can see the complete list of today's Zacks #1 Rank stocks here.
Conns is set to gain from buoyant demand for its products as consumer spending continues to grow.
The company sells major home appliances and a variety of consumer electronics products. Besides, it deals in home office equipment, lawn and garden products as well as bedding, and continues introducing additional product categories for the home to boost same-store sales and respond to the customers' product needs.
De-risking balance sheet, and expanding its digital and e-commerce capabilities bode well for the long haul. Its strategic initiatives including expansion of its brick-and-mortar footprint and enhancement of its merchandising and marketing strategies will likely contribute to its sales.
Its strong cash flow backs its long-term initiatives. The stock is set for growth in the long run with the economy booming.
The stock currently has a Zacks Rank of 1 and a Growth Score A. The Zacks Consensus Estimate for its current-year earnings improved 27.5% over the last 60 days.
AdvanSix, the chemical manufacturer, which produces nylon 6 resin, chemical intermediates and ammonium sulfate fertilizer, rides high on the strong economy.
The company is expected to gain from an uptick in demand across a number of markets including automotive, building & construction, electronics and packaging. Higher demand is expected to bolster its volumes. Solid agricultural industry fundamentals also bode well.
Its robust balance sheet health provides greater flexibility and more options for further value creation. The company is expecting operational efficiency amid sturdy industry dynamics to lift earnings and cash flows in 2021.
The company presently sports a Zacks Rank #1and has a Growth Score B. The Zacks Consensus Estimate for 2021 earnings has been revised 34.7% upward over the past 30 days.
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Zacks Investment Research
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Zacks.com provides investment resources and informs you of these resources, which you may choose to use in making your own investment decisions. Zacks is providing information on this resource to you subject to the Zacks "Terms and Conditions of Service" disclaimer. www.zacks.com/disclaimer.
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.