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The Zacks Analyst Blog Highlights: Avis Budget Group, YETI Holdings, Concentrix, Chipotle Mexican Grill and Denny's
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For Immediate Release
Chicago, IL – October 8, 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: Avis Budget Group, Inc. (CAR - Free Report) , YETI Holdings, Inc. (YETI - Free Report) , Concentrix Corp. (CNXC - Free Report) , Chipotle Mexican Grill, Inc. (CMG - Free Report) and Denny's Corp. (DENN - Free Report) .
Here are highlights from Thursday’s Analyst Blog:
5 Stocks to Buy on Continued Expansion in Services Activity
The Delta variant of the coronavirus has been a reason for worry, raising concerns of an economic slowdown for some time now. This also resulted in markets taking a hit in September. However, the services data for September paints a different picture.
Recently released data for the U.S. services industry PMI (purchasing managers’ index) by the Institute of Supply Management (ISM) showed that the economy is on solid ground. And the worries of economic slowdown owing to another surge in coronavirus cases may not have dented the spirit of investors.
Services Activity Continues to Expand
According to data released by the Institute for Supply Management (ISM) on Oct 5 non-manufacturing (service) purchasing managers’ index (PMI) rose 0.2% to 61.9 from 61.7 in August. The consensus estimate was 60. Any reading above 50% means expansion in services activities.
September’s reading also indicates that the services sector expanded for the 16th straight month and140 months in a row, barring just two months. The Supplier Deliveries Index fell 0.8% to 68.8% from 69.6% in August.
The Business Activity Index rose to a reading of 62.3, increasing 60.1% sequentially. The New Orders Index gained 0.3% to reach 63.5%. The Backlog of Orders Index rose to 61.9%, advancing 0.6% from August’s reading of 61.3%.
Services Sector Grows With Economic Reopening
Interestingly, despite growing fears of the Delta variant of the coronavirus, 17 of the 18 service-related industries grew in terms of new orders and production. This also indicates that the growth is all around and people are a lot more confident now with millions having been vaccinated.
The sector had contracted 41.8% and 45.4% in April and May 2020, respectively, but has bounced back since then and is growing faster than ever. And this is despite the growing inflationary pressures.
As more people worked and learned from home during the pandemic, they became technology-dependent, boosting tech services. However, people primarily invested in goods at that time but things started changing with the vaccination drive as they shelled out more on services.
As the economy reopened, people started making travel plans, eating out at restaurants as well as visiting stores and recreation joints. This has been helping the services sector.
Business services are only likely to increase in the coming months as more people get vaccinated. This will only help people get back their confidence and business services to expand.
Our Choices
The services sector is poised to grow on vaccination and more purchasing power from the government stimulus. Given this situation, it would be ideal to invest in these five stocks.
Avis Budget Group operates as a leading vehicle rental operator in North America, Europe and Australasia with an average rental fleet of nearly 650,000 vehicles.
The company’s expected earnings growth rate for the current year is more than 100%. The Zacks Consensus Estimate for current-year earnings improved 14.4% over the past 60 days. Avis Budget sports a Zacks Rank #1 (Strong Buy).You can see the complete list of today’s Zacks #1 Rank stocks here.
YETI Holdings designs, markets and distributes products for the outdoor and recreation market under the YETI brand primarily in the United States. The company's products are designed for outdoor activities, including hunting, fishing, camping, barbecue, and farm and ranch activities, among others.
The company’s expected earnings growth rate for the current year is 32.6%. The Zacks Consensus Estimate for current-year earnings improved 0.8% over the past 60 days. The company has a Zacks Rank #2.
Concentrix provides technology-enabled business services. The company serves technology & consumer electronics; retail, travel & ecommerce; banking, financial services & insurance; healthcare; communications & media; automotive; and the energy & public sector.
The company’s expected earnings growth rate for the current year is 60.5%. The Zacks Consensus Estimate for current-year earnings improved 5.8% over the past 60 days. The company has a Zacks Rank #2.
Chipotle Mexican Grill offers a focused menu of burritos, tacos, burrito bowls and salads. Chipotle restaurants feature free-range, hormone-free pork, natural chicken and other meat products cooked through traditional methods and served in a unique atmosphere.
The company’s expected earnings growth rate for the current year is more than 100%. The Zacks Consensus Estimate for current-year earnings has improved 0.1% over the past 60 days. Chipotle Mexican Grill carries a Zacks Rank #2.
Denny's Corp. is one of the largest restaurant companies, operating moderately priced restaurants: Denny's, Hardee's, Quincy's, El Pollo Loco, Coco's and Carrows.
The company’s expected earnings growth rate for the current year is more than 100%. The Zacks Consensus Estimate for current-year earnings has improved 2% over the past 60 days. Chipotle Mexican Grill carries a Zacks Rank #2.
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: Avis Budget Group, YETI Holdings, Concentrix, Chipotle Mexican Grill and Denny's
For Immediate Release
Chicago, IL – October 8, 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: Avis Budget Group, Inc. (CAR - Free Report) , YETI Holdings, Inc. (YETI - Free Report) , Concentrix Corp. (CNXC - Free Report) , Chipotle Mexican Grill, Inc. (CMG - Free Report) and Denny's Corp. (DENN - Free Report) .
Here are highlights from Thursday’s Analyst Blog:
5 Stocks to Buy on Continued Expansion in Services Activity
The Delta variant of the coronavirus has been a reason for worry, raising concerns of an economic slowdown for some time now. This also resulted in markets taking a hit in September. However, the services data for September paints a different picture.
Recently released data for the U.S. services industry PMI (purchasing managers’ index) by the Institute of Supply Management (ISM) showed that the economy is on solid ground. And the worries of economic slowdown owing to another surge in coronavirus cases may not have dented the spirit of investors.
Services Activity Continues to Expand
According to data released by the Institute for Supply Management (ISM) on Oct 5 non-manufacturing (service) purchasing managers’ index (PMI) rose 0.2% to 61.9 from 61.7 in August. The consensus estimate was 60. Any reading above 50% means expansion in services activities.
September’s reading also indicates that the services sector expanded for the 16th straight month and140 months in a row, barring just two months. The Supplier Deliveries Index fell 0.8% to 68.8% from 69.6% in August.
The Business Activity Index rose to a reading of 62.3, increasing 60.1% sequentially. The New Orders Index gained 0.3% to reach 63.5%. The Backlog of Orders Index rose to 61.9%, advancing 0.6% from August’s reading of 61.3%.
Services Sector Grows With Economic Reopening
Interestingly, despite growing fears of the Delta variant of the coronavirus, 17 of the 18 service-related industries grew in terms of new orders and production. This also indicates that the growth is all around and people are a lot more confident now with millions having been vaccinated.
The sector had contracted 41.8% and 45.4% in April and May 2020, respectively, but has bounced back since then and is growing faster than ever. And this is despite the growing inflationary pressures.
As more people worked and learned from home during the pandemic, they became technology-dependent, boosting tech services. However, people primarily invested in goods at that time but things started changing with the vaccination drive as they shelled out more on services.
As the economy reopened, people started making travel plans, eating out at restaurants as well as visiting stores and recreation joints. This has been helping the services sector.
Business services are only likely to increase in the coming months as more people get vaccinated. This will only help people get back their confidence and business services to expand.
Our Choices
The services sector is poised to grow on vaccination and more purchasing power from the government stimulus. Given this situation, it would be ideal to invest in these five stocks.
Avis Budget Group operates as a leading vehicle rental operator in North America, Europe and Australasia with an average rental fleet of nearly 650,000 vehicles.
The company’s expected earnings growth rate for the current year is more than 100%. The Zacks Consensus Estimate for current-year earnings improved 14.4% over the past 60 days. Avis Budget sports a Zacks Rank #1 (Strong Buy).You can see the complete list of today’s Zacks #1 Rank stocks here.
YETI Holdings designs, markets and distributes products for the outdoor and recreation market under the YETI brand primarily in the United States. The company's products are designed for outdoor activities, including hunting, fishing, camping, barbecue, and farm and ranch activities, among others.
The company’s expected earnings growth rate for the current year is 32.6%. The Zacks Consensus Estimate for current-year earnings improved 0.8% over the past 60 days. The company has a Zacks Rank #2.
Concentrix provides technology-enabled business services. The company serves technology & consumer electronics; retail, travel & ecommerce; banking, financial services & insurance; healthcare; communications & media; automotive; and the energy & public sector.
The company’s expected earnings growth rate for the current year is 60.5%. The Zacks Consensus Estimate for current-year earnings improved 5.8% over the past 60 days. The company has a Zacks Rank #2.
Chipotle Mexican Grill offers a focused menu of burritos, tacos, burrito bowls and salads. Chipotle restaurants feature free-range, hormone-free pork, natural chicken and other meat products cooked through traditional methods and served in a unique atmosphere.
The company’s expected earnings growth rate for the current year is more than 100%. The Zacks Consensus Estimate for current-year earnings has improved 0.1% over the past 60 days. Chipotle Mexican Grill carries a Zacks Rank #2.
Denny's Corp. is one of the largest restaurant companies, operating moderately priced restaurants: Denny's, Hardee's, Quincy's, El Pollo Loco, Coco's and Carrows.
The company’s expected earnings growth rate for the current year is more than 100%. The Zacks Consensus Estimate for current-year earnings has improved 2% over the past 60 days. Chipotle Mexican Grill carries a Zacks Rank #2.
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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.