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The Zacks Analyst Blog Highlights Archer-Daniels-Midland, H&E Equipment Services, Veritiv, U.S. Silica Holdings and Barrett Business Services
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For Immediate Release
Chicago, IL – December 20, 2022 – 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: Archer-Daniels-Midland Co. (ADM - Free Report) , H&E Equipment Services Inc. (HEES - Free Report) , Veritiv Corp. , U.S. Silica Holdings Inc. and Barrett Business Services Inc. (BBSI - Free Report) .
Here are highlights from Monday’s Analyst Blog:
Shrug Off Market Gyrations with These Top 5 Value Stocks
Wall Street is just nine trading days away from closing a highly disappointing 2022. Even for these last few days, market participants are not sure in which direction the U.S. stock markets will move. Investors are skeptical of a year-end rally — popularly known as Santa Claus Rally — for this year.
These negative sentiments arise as recession fears grip markets resulting from the fact that the Fed has so far failed to cool inflation to an acceptable level despite hiking the benchmark interest rate by 4.25% in 2022 along with other monetary tightening measures like termination of the $120 billion per month quantitative easing program and gradual shrinking of the $9 trillion balance sheet.
At this stage, it would be prudent to pick value stocks with a favorable Zacks Rank to cushion the portfolio as well as make some gains from the upside potential. These stocks could prove to be valuable once the rally resumes. Five of them are Archer-Daniels-Midland Co., H&E Equipment Services Inc., Veritiv Corp., U.S. Silica Holdings Inc. and Barrett Business Services Inc..
Recession Fears Grip Markets
U.S. stocks continued to suffer in the last two weeks after the Fed announced a 50-basis point rate hike, with losses deepening. Stocks took a further hit as disappointing retail sales for November sparked fears of a slowing economy.
On Dec 14, the Fed increased interest rates by another 50 basis points. Fed Chair Jerome Powell had earlier hinted that the central bank could slow down its pace of rate hikes after increasing interest rates by 75 basis points for the fourth consecutive time since June.
The Fed did slow down the pace but Powell did not paint a rosy picture for the future. In fact, Powell indicated that the central bank would continue increasing interest rates at regular intervals through 2023.
Wednesday's hike took the benchmark range of 4.25% to 4.50%, and the Fed projected it to top out at 5.25% before it takes a call on pausing the hikes. This is higher than the September forecast of 4.75%.
Recession fears were further ignited after central banks in Europe also hinted at hiking interest rates through 2023. Both the Bank of England and the European Central Bank slowed down their pace of rate hikes but increased interest rates by 50 basis points. Investors were once again alarmed by this as they believe that the ongoing rate increases could push the UK and Eurozone into a recession, setting the tone for a panic sell-off.
Our Top Picks
At this juncture, investors should be prepared to minimize fluctuations in their portfolio and consequently rebalance it with suitable financial assets to maintain stability. We have narrowed our search to five value stocks. Each of our picks carries a Zacks Rank #1 (Strong Buy) and a Value Score of A. You can see the complete list of today's Zacks #1 Rank stocks here.
Archer-Daniels-Midland has been gaining from solid demand, improved productivity and product innovations. Persistent growth in the Nutrition segment of ADM, aided by significant gains in the Human and Animal Nutrition units, remains the key growth driver.
Archer-Daniels-Midland expects the nutrition segment to record operating profit growth of 20% in 2022. The company has been significantly progressing on its three strategic pillars — optimize, drive and growth.
Archer-Daniels-Midland has an expected earnings growth rate of 3.3% for the current quarter. The Zacks Consensus Estimate for current-quarter earnings has improved 6.9% over the last 60 days.
H&E Equipment Services is one of the largest integrated equipment services companies in the United States. HEES is focused on heavy construction & industrial equipment and rents, sells and provides parts and service support to four core categories of specialized equipment namely, hi-lift or aerial platform equipment, cranes, earthmoving equipment and industrial lift trucks.
By providing equipment rental, sales, and on-site parts, repair and maintenance functions under one roof, HEES is a one-stop provider for its customers' varied equipment needs.
H&E Equipment Services has an expected earnings growth rate of 71.2% for the current quarter. The Zacks Consensus Estimate for current-quarter earnings has improved 31.2% over the last 60 days.
Veritiv is engaged in offering North American business-to-business distribution solutions. VRTV provides packaging, print and print management, publishing, supply-chain, facility and logistics solutions that span the entire lifecycle of core business operations. VRTV's customers vary across a number of industries, including manufacturing, healthcare, retail and more.
Veritiv has an expected earnings growth rate of 48.2% for the current quarter. The Zacks Consensus Estimate for current-quarter earnings has improved 8.4% over the last seven days.
Barrett Business Services provides business management solutions for small and mid-sized companies in the United States. BBSI develops a management platform that integrates a knowledge-based approach from the management consulting industry with tools from the human resource outsourcing industry.
Barrett Business Services has an expected earnings growth rate of 16.4% for the current quarter. The Zacks Consensus Estimate for current-quarter earnings has improved 1.2% over the last 60 days.
U.S. Silica produces and sells commercial silica in the United States. SLCA operates through two segments, Oil & Gas Proppants and Industrial & Specialty Products. SLCA offers whole grain commercial silica products to be used as fracturing sand in connection with oil and natural gas recovery, as well as sells its whole grain silica products in various size distributions, grain shapes, and chemical purity levels for the manufacturing of glass products.
U.S. Silica also provides various grades of whole-grain round silica to the foundry industry; ground silica and industrial minerals products for various products; and engineered performance materials made from diatomaceous earth, clay, and perlite.
U.S. Silica has an expected earnings growth rate of more than 100% for the current quarter. The Zacks Consensus Estimate for current-quarter earnings has improved 5.7% over the last 60 days.
Why Haven't You Looked at Zacks' Top Stocks?
Our 5 best-performing strategies have blown away the S&P's impressive +28.8% gain in 2021. Amazingly, they soared +40.3%, +48.2%, +67.6%, +94.4%, and +95.3%. Today you can access their live picks without cost or obligation.
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 Archer-Daniels-Midland, H&E Equipment Services, Veritiv, U.S. Silica Holdings and Barrett Business Services
For Immediate Release
Chicago, IL – December 20, 2022 – 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: Archer-Daniels-Midland Co. (ADM - Free Report) , H&E Equipment Services Inc. (HEES - Free Report) , Veritiv Corp. , U.S. Silica Holdings Inc. and Barrett Business Services Inc. (BBSI - Free Report) .
Here are highlights from Monday’s Analyst Blog:
Shrug Off Market Gyrations with These Top 5 Value Stocks
Wall Street is just nine trading days away from closing a highly disappointing 2022. Even for these last few days, market participants are not sure in which direction the U.S. stock markets will move. Investors are skeptical of a year-end rally — popularly known as Santa Claus Rally — for this year.
These negative sentiments arise as recession fears grip markets resulting from the fact that the Fed has so far failed to cool inflation to an acceptable level despite hiking the benchmark interest rate by 4.25% in 2022 along with other monetary tightening measures like termination of the $120 billion per month quantitative easing program and gradual shrinking of the $9 trillion balance sheet.
At this stage, it would be prudent to pick value stocks with a favorable Zacks Rank to cushion the portfolio as well as make some gains from the upside potential. These stocks could prove to be valuable once the rally resumes. Five of them are Archer-Daniels-Midland Co., H&E Equipment Services Inc., Veritiv Corp., U.S. Silica Holdings Inc. and Barrett Business Services Inc..
Recession Fears Grip Markets
U.S. stocks continued to suffer in the last two weeks after the Fed announced a 50-basis point rate hike, with losses deepening. Stocks took a further hit as disappointing retail sales for November sparked fears of a slowing economy.
On Dec 14, the Fed increased interest rates by another 50 basis points. Fed Chair Jerome Powell had earlier hinted that the central bank could slow down its pace of rate hikes after increasing interest rates by 75 basis points for the fourth consecutive time since June.
The Fed did slow down the pace but Powell did not paint a rosy picture for the future. In fact, Powell indicated that the central bank would continue increasing interest rates at regular intervals through 2023.
Wednesday's hike took the benchmark range of 4.25% to 4.50%, and the Fed projected it to top out at 5.25% before it takes a call on pausing the hikes. This is higher than the September forecast of 4.75%.
Recession fears were further ignited after central banks in Europe also hinted at hiking interest rates through 2023. Both the Bank of England and the European Central Bank slowed down their pace of rate hikes but increased interest rates by 50 basis points. Investors were once again alarmed by this as they believe that the ongoing rate increases could push the UK and Eurozone into a recession, setting the tone for a panic sell-off.
Our Top Picks
At this juncture, investors should be prepared to minimize fluctuations in their portfolio and consequently rebalance it with suitable financial assets to maintain stability. We have narrowed our search to five value stocks. Each of our picks carries a Zacks Rank #1 (Strong Buy) and a Value Score of A. You can see the complete list of today's Zacks #1 Rank stocks here.
Archer-Daniels-Midland has been gaining from solid demand, improved productivity and product innovations. Persistent growth in the Nutrition segment of ADM, aided by significant gains in the Human and Animal Nutrition units, remains the key growth driver.
Archer-Daniels-Midland expects the nutrition segment to record operating profit growth of 20% in 2022. The company has been significantly progressing on its three strategic pillars — optimize, drive and growth.
Archer-Daniels-Midland has an expected earnings growth rate of 3.3% for the current quarter. The Zacks Consensus Estimate for current-quarter earnings has improved 6.9% over the last 60 days.
H&E Equipment Services is one of the largest integrated equipment services companies in the United States. HEES is focused on heavy construction & industrial equipment and rents, sells and provides parts and service support to four core categories of specialized equipment namely, hi-lift or aerial platform equipment, cranes, earthmoving equipment and industrial lift trucks.
By providing equipment rental, sales, and on-site parts, repair and maintenance functions under one roof, HEES is a one-stop provider for its customers' varied equipment needs.
H&E Equipment Services has an expected earnings growth rate of 71.2% for the current quarter. The Zacks Consensus Estimate for current-quarter earnings has improved 31.2% over the last 60 days.
Veritiv is engaged in offering North American business-to-business distribution solutions. VRTV provides packaging, print and print management, publishing, supply-chain, facility and logistics solutions that span the entire lifecycle of core business operations. VRTV's customers vary across a number of industries, including manufacturing, healthcare, retail and more.
Veritiv has an expected earnings growth rate of 48.2% for the current quarter. The Zacks Consensus Estimate for current-quarter earnings has improved 8.4% over the last seven days.
Barrett Business Services provides business management solutions for small and mid-sized companies in the United States. BBSI develops a management platform that integrates a knowledge-based approach from the management consulting industry with tools from the human resource outsourcing industry.
Barrett Business Services has an expected earnings growth rate of 16.4% for the current quarter. The Zacks Consensus Estimate for current-quarter earnings has improved 1.2% over the last 60 days.
U.S. Silica produces and sells commercial silica in the United States. SLCA operates through two segments, Oil & Gas Proppants and Industrial & Specialty Products. SLCA offers whole grain commercial silica products to be used as fracturing sand in connection with oil and natural gas recovery, as well as sells its whole grain silica products in various size distributions, grain shapes, and chemical purity levels for the manufacturing of glass products.
U.S. Silica also provides various grades of whole-grain round silica to the foundry industry; ground silica and industrial minerals products for various products; and engineered performance materials made from diatomaceous earth, clay, and perlite.
U.S. Silica has an expected earnings growth rate of more than 100% for the current quarter. The Zacks Consensus Estimate for current-quarter earnings has improved 5.7% over the last 60 days.
Why Haven't You Looked at Zacks' Top Stocks?
Our 5 best-performing strategies have blown away the S&P's impressive +28.8% gain in 2021. Amazingly, they soared +40.3%, +48.2%, +67.6%, +94.4%, and +95.3%. Today you can access their live picks without cost or obligation.
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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.