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The Zacks Analyst Blog Highlights APi Group, IBEX, SPS Commerce and MSCI
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For Immediate Release
Chicago, IL – March 9, 2023 – 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: APi Group Corp. (APG - Free Report) , IBEX Ltd. (IBEX - Free Report) , SPS Commerce, Inc. (SPSC - Free Report) and MSCI Inc. (MSCI - Free Report) .
Here are highlights from Wednesday’s Analyst Blog:
4 Stocks to Buy on Services Activity Expansion in February
The U.S. services sector has made a solid rebound after slowing down in December. While growth in services activity raises further concerns over soaring inflation, the sector has been resilient, as people continue to spend more on services and less on goods.
This saw services sector activity grow for the second consecutive month in February. The growth comes as new orders and employment rose to a new one-year high. Given this situation, business services stocks like APi Group Corp., IBEX Ltd., SPS Commerce, Inc. and MSCI Inc. are likely to benefit in the near term.
Services Sector Activity Grows
The Institute for Supply Management reported on Mar 3 that the services sector Purchasing Managers’ Index (PMI) rose to 55.1% in February after increasing 55.2% in January. Although it is s shade slower than January, the growth is steady and above the 50% level. A reading of anything above 50 suggests an increase in service activities.
Also, this is far better than the December figures when the services sector declined to 49.2%.
The contraction in December was the first since May 2020. Also, the services sector has now grown for 31 out of the last 32 months, which reflects the underlying strength in the economy despite major challenges like multi-year high inflation.
The growth in February comes on the back of a solid jobs report that saw the employment level hitting a one-year high and a rise in new orders, which suggests that despite inflationary pressure, the economy continued to expand in the first quarter of 2023.
February saw services activity growing in 13 sectors, led by construction, retail, accommodation, food, and professional, scientific, and technical services. However, information and wholesale trade were two of the four industries that reported a decline.
The survey also said that a jump in new orders indicates an expanding economy. The New Orders Index increased to 62.6% in February after jumping 60.4% in January. The Supplier Deliveries Index came in at 47.6% in February, recording the fastest delivery performance since June 2009.
The reading for February is 2.4% lower than the January unchanged figures of 50%. Supplier Deliveries is the sole inversed index in the ISM Business report. A number above 50% denotes slower deliveries, which are normal as the economy strengthens and customer demand rises.
Growth in services activity gives reason for optimism that the economy has not yet succumbed to inflationary pressures. This is especially true as manufacturing output has been dropping and consumer spending is more constrained due to rising commodity costs.
Our Choices
The current situation makes for an ideal opportunity to invest in these four stocks.
APi Group Corporation provides critical pipeline integrity and construction services for energy companies, utilities, public agencies, and contractors, as well as end-to-end fire protection solutions, including design, installation, inspection and service of fire protection systems.
APi Group Corporation’s expected earnings growth rate for the current year is 12%. The Zacks Consensus Estimate for current-year earnings has improved 7.2% over the past 60 days. APG presently sports a Zacks Rank #1 (Strong Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.
IBEX Limited is a provider of outsourced CX solutions. IBEX offers customer support, technical support, inbound/outbound sales, business intelligence and analytics, digital demand generation and CX surveys and feedback analytics service.
IBEX Limited’s expected earnings growth rate for the current year is 29.6%. The Zacks Consensus Estimate for current-year earnings has improved 16.3% over the past 60 days. IBEX presently has a Zacks Rank #2 (Buy).
SPS Commerce, Inc. is a provider of on-demand supply chain management solutions, providing integration, collaboration, connectivity, visibility and data analytics to its customers worldwide. SPSC delivers its solutions over the Internet using a Software-as-a-Service model to improve the way suppliers, retailers, distributors and other customers manage and fulfill orders.
SPS Commerce’s expected earnings growth rate for the current year is 13.2%. The Zacks Consensus Estimate for current-year earnings has improved 9% over the past 60 days. SPSC currently carries a Zacks Rank #1.
MSCI Inc. provides investment decision support tools. MSCI’s services include portfolio construction and risk management products and services; environmental, social and governance research and ratings; and real estate research, reporting and benchmarking offerings.
MSCI Inc.’s expected earnings growth rate for the current year is 11.8%. The Zacks Consensus Estimate for current-year earnings has improved 1.3% over the past 60 days. MSCI currently carries a Zacks Rank #2.
Why Haven’t You Looked at Zacks' Top Stocks?
Since 2000, our top stock-picking strategies have blown away the S&P's +6.2 average gain per year. Amazingly, they soared with average gains of +46.4%, +49.5% and +55.2% per year. 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 APi Group, IBEX, SPS Commerce and MSCI
For Immediate Release
Chicago, IL – March 9, 2023 – 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: APi Group Corp. (APG - Free Report) , IBEX Ltd. (IBEX - Free Report) , SPS Commerce, Inc. (SPSC - Free Report) and MSCI Inc. (MSCI - Free Report) .
Here are highlights from Wednesday’s Analyst Blog:
4 Stocks to Buy on Services Activity Expansion in February
The U.S. services sector has made a solid rebound after slowing down in December. While growth in services activity raises further concerns over soaring inflation, the sector has been resilient, as people continue to spend more on services and less on goods.
This saw services sector activity grow for the second consecutive month in February. The growth comes as new orders and employment rose to a new one-year high. Given this situation, business services stocks like APi Group Corp., IBEX Ltd., SPS Commerce, Inc. and MSCI Inc. are likely to benefit in the near term.
Services Sector Activity Grows
The Institute for Supply Management reported on Mar 3 that the services sector Purchasing Managers’ Index (PMI) rose to 55.1% in February after increasing 55.2% in January. Although it is s shade slower than January, the growth is steady and above the 50% level. A reading of anything above 50 suggests an increase in service activities.
Also, this is far better than the December figures when the services sector declined to 49.2%.
The contraction in December was the first since May 2020. Also, the services sector has now grown for 31 out of the last 32 months, which reflects the underlying strength in the economy despite major challenges like multi-year high inflation.
The growth in February comes on the back of a solid jobs report that saw the employment level hitting a one-year high and a rise in new orders, which suggests that despite inflationary pressure, the economy continued to expand in the first quarter of 2023.
February saw services activity growing in 13 sectors, led by construction, retail, accommodation, food, and professional, scientific, and technical services. However, information and wholesale trade were two of the four industries that reported a decline.
The survey also said that a jump in new orders indicates an expanding economy. The New Orders Index increased to 62.6% in February after jumping 60.4% in January. The Supplier Deliveries Index came in at 47.6% in February, recording the fastest delivery performance since June 2009.
The reading for February is 2.4% lower than the January unchanged figures of 50%. Supplier Deliveries is the sole inversed index in the ISM Business report. A number above 50% denotes slower deliveries, which are normal as the economy strengthens and customer demand rises.
Growth in services activity gives reason for optimism that the economy has not yet succumbed to inflationary pressures. This is especially true as manufacturing output has been dropping and consumer spending is more constrained due to rising commodity costs.
Our Choices
The current situation makes for an ideal opportunity to invest in these four stocks.
APi Group Corporation provides critical pipeline integrity and construction services for energy companies, utilities, public agencies, and contractors, as well as end-to-end fire protection solutions, including design, installation, inspection and service of fire protection systems.
APi Group Corporation’s expected earnings growth rate for the current year is 12%. The Zacks Consensus Estimate for current-year earnings has improved 7.2% over the past 60 days. APG presently sports a Zacks Rank #1 (Strong Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.
IBEX Limited is a provider of outsourced CX solutions. IBEX offers customer support, technical support, inbound/outbound sales, business intelligence and analytics, digital demand generation and CX surveys and feedback analytics service.
IBEX Limited’s expected earnings growth rate for the current year is 29.6%. The Zacks Consensus Estimate for current-year earnings has improved 16.3% over the past 60 days. IBEX presently has a Zacks Rank #2 (Buy).
SPS Commerce, Inc. is a provider of on-demand supply chain management solutions, providing integration, collaboration, connectivity, visibility and data analytics to its customers worldwide. SPSC delivers its solutions over the Internet using a Software-as-a-Service model to improve the way suppliers, retailers, distributors and other customers manage and fulfill orders.
SPS Commerce’s expected earnings growth rate for the current year is 13.2%. The Zacks Consensus Estimate for current-year earnings has improved 9% over the past 60 days. SPSC currently carries a Zacks Rank #1.
MSCI Inc. provides investment decision support tools. MSCI’s services include portfolio construction and risk management products and services; environmental, social and governance research and ratings; and real estate research, reporting and benchmarking offerings.
MSCI Inc.’s expected earnings growth rate for the current year is 11.8%. The Zacks Consensus Estimate for current-year earnings has improved 1.3% over the past 60 days. MSCI currently carries a Zacks Rank #2.
Why Haven’t You Looked at Zacks' Top Stocks?
Since 2000, our top stock-picking strategies have blown away the S&P's +6.2 average gain per year. Amazingly, they soared with average gains of +46.4%, +49.5% and +55.2% per year. Today you can access their live picks without cost or obligation.
See Stocks Free >>
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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.