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The Zacks Analyst Blog Highlights Ford Motor, Nexstar Media, Patterson Companies and Suzano
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For Immediate Release
Chicago, IL – July 7, 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: Ford Motor Company (F - Free Report) , Nexstar Media Group, Inc. (NXST - Free Report) , Patterson Companies, Inc. (PDCO - Free Report) and Suzano S.A. (SUZ - Free Report) .
Here are highlights from Thursday’s Analyst Blog:
4 Strong Buy Stocks with Attractive Long-Term Prospects
Ahead of the Job Openings and Labor Turnover Survey (JOLTS) report today, it still looks like a difficult year for stocks. Although there are a few bright spots, it's becoming somewhat harder to find them.
The first half of the year has been great, but that's just more reason for a slide in the second. Particularly because most of the rally was carried by tech stocks, that too, a few large ones. For other sectors, it hasn't been as great, as increased caution about an impending recession weighed on corporate spending patterns and increased investor concerns.
The Fed is determined to get to the 2% inflation rate on the basket of goods and services minus the highly volatile food and energy segments, and many of the officials have said that the effects of past actions may already have played out. If they have not – and that is a distinct possibility – there's a good chance that they will be raising rates anyway. Because the effect of past actions is a little tough to measure. The Fed's "hawkish pause" in June has fed sentiment on the street that a couple more hikes are on their way, in which case a recession may be unavoidable.
The JOLTS report could be positive, but the Fed is really putting the brakes on this market rally.
Therefore, this is no time to be beating around the bush. We need solid investments, stocks that will outperform others in the long run. Even better if they offer some income while we patiently hang onto them. So let's get down to it:
Ford Motor Company
Based in Dearborn, MI, Ford is a global automotive company that develops, manufactures and sells a range of vehicles under the Ford and Lincoln brands. It operates through various segments, including Ford Blue, Ford Model e and Ford Pro; Ford Next; and Ford Credit. The company sells vehicles and service parts through dealerships, commercial fleet customers, rental car companies and governments. Ford also provides vehicle financing and leasing options to retail and commercial customers, as well as wholesale loans to dealers.
Ford's earnings are currently expected to decline. However, the company is seeing significant estimate revisions, so there could be a change in this situation. The 2023 estimate for example has increased 12 cents in the last 60 days (up 7.4%). Similarly, the 2024 estimate is up 8 cents (4.9%).
The Zacks Rank #1 (Strong Buy) company has grown its earnings over 10% in the last 5 years and is expected to grow at least 6% in the next five.
Its dividend yields 3.94%.
Despite the above positives, it trades at a reasonable valuation of 8.92X earnings. While at its highest level over the past year, it's a solid 79.4% discount to the industry. Since the industry's valuation is currently rich, we may also compare with a broader index such as the S&P 500. In this comparison too, it's a substantial discount of 54.4%.
Nexstar Media Group, Inc.
Irving, TX-based Nexstar is a television broadcasting and digital media company operating in the U.S. It acquires, develops and operates television stations, broadcast television networks, as well as interactive community websites. The company offers free programming to television viewers, employing both video and display advertising platforms across various digital media channels. It also manages real estate assets.
The Zacks Rank #1 company's earnings are expected to decline this year followed by a strong comeback in the next. In the last 60 days, its estimates for 2023 and 2024 have increased $1.98 (17.7%) and $3.87 (14.8%), respectively.
The company has grown its earnings 41.8% in the last five years and analysts expect it to grow 10% in the long term.
Nexstar also pays a dividend that yields 3.23%.
The company trades at a significant discount to both the industry (75.3%) and the S&P 500 (60.8%), based on P/E.
Patterson Companies, Inc.
Headquartered in Saint Paul, MN, Patterson Companies is a distributor of dental and animal health products in the U.S., the UK and Canada. The company operates through three segments: Dental, Animal Health and Corporate.
The Dental segment offers a wide range of consumable products, dental equipment and practice optimization solutions. The Animal Health segment distributes various animal health products, including pharmaceuticals, vaccines and diagnostics. The Corporate segment provides customer financing services and sells miscellaneous products. Patterson serves healthcare professionals, veterinarians, animal health professionals and retailers.
Unlike the others, Patterson is expected to grow in both 2024 and 2025 (ending April), albeit at a low single-digit rate. Although not by a significant amount, analysts have also raised their estimates on this stock. For the fiscal year 2024, estimates increased 14 cents (6.0%) in the last 60 days while for the following year, they increased 16 cents (6.5%).
The company has grown its earnings 13.7% in the last five years and analysts expect this #1 ranked stock to grow its earnings 9.2% in the long run.
Patterson Companies' dividend yields 3.2%.
It is also trading at an attractive valuation, i.e. a 32.1% discount to its industry and a 34.9% discount to the S&P 500
Suzano S.A.
Based in Salvador, Brazil, Suzano specializes in the production and sale of eucalyptus pulp and paper products. It operates in two segments: Pulp and Paper. The company offers a wide range of paper products including printing and writing paper, paperboards, tissue paper and pulps. It is also involved in biofuel production, power generation, port terminals operation and wood-based textile fibers.
While current estimates reflect double-digit earnings declines in 2023 and 2024, it's worth noting that these estimates are increasing rapidly. The 2023 estimate for example is up 55 cents (34.8%) while the 2024 estimate is up 38 cents (29.2%).
It has grown a whopping 107.3% in the last five years, which explains the expected declines in the next two. However, analysts are projecting 6.9% growth in the next five years. Therefore, growth should return before long.
Suzano's dividend currently yields 3.43%.
The shares are trading at 4.8X P/E, a discount of 36.9% to the industry and 75.3% to the S&P 500.
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 Ford Motor, Nexstar Media, Patterson Companies and Suzano
For Immediate Release
Chicago, IL – July 7, 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: Ford Motor Company (F - Free Report) , Nexstar Media Group, Inc. (NXST - Free Report) , Patterson Companies, Inc. (PDCO - Free Report) and Suzano S.A. (SUZ - Free Report) .
Here are highlights from Thursday’s Analyst Blog:
4 Strong Buy Stocks with Attractive Long-Term Prospects
Ahead of the Job Openings and Labor Turnover Survey (JOLTS) report today, it still looks like a difficult year for stocks. Although there are a few bright spots, it's becoming somewhat harder to find them.
The first half of the year has been great, but that's just more reason for a slide in the second. Particularly because most of the rally was carried by tech stocks, that too, a few large ones. For other sectors, it hasn't been as great, as increased caution about an impending recession weighed on corporate spending patterns and increased investor concerns.
The Fed is determined to get to the 2% inflation rate on the basket of goods and services minus the highly volatile food and energy segments, and many of the officials have said that the effects of past actions may already have played out. If they have not – and that is a distinct possibility – there's a good chance that they will be raising rates anyway. Because the effect of past actions is a little tough to measure. The Fed's "hawkish pause" in June has fed sentiment on the street that a couple more hikes are on their way, in which case a recession may be unavoidable.
The JOLTS report could be positive, but the Fed is really putting the brakes on this market rally.
Therefore, this is no time to be beating around the bush. We need solid investments, stocks that will outperform others in the long run. Even better if they offer some income while we patiently hang onto them. So let's get down to it:
Ford Motor Company
Based in Dearborn, MI, Ford is a global automotive company that develops, manufactures and sells a range of vehicles under the Ford and Lincoln brands. It operates through various segments, including Ford Blue, Ford Model e and Ford Pro; Ford Next; and Ford Credit. The company sells vehicles and service parts through dealerships, commercial fleet customers, rental car companies and governments. Ford also provides vehicle financing and leasing options to retail and commercial customers, as well as wholesale loans to dealers.
Ford's earnings are currently expected to decline. However, the company is seeing significant estimate revisions, so there could be a change in this situation. The 2023 estimate for example has increased 12 cents in the last 60 days (up 7.4%). Similarly, the 2024 estimate is up 8 cents (4.9%).
The Zacks Rank #1 (Strong Buy) company has grown its earnings over 10% in the last 5 years and is expected to grow at least 6% in the next five.
Its dividend yields 3.94%.
Despite the above positives, it trades at a reasonable valuation of 8.92X earnings. While at its highest level over the past year, it's a solid 79.4% discount to the industry. Since the industry's valuation is currently rich, we may also compare with a broader index such as the S&P 500. In this comparison too, it's a substantial discount of 54.4%.
Nexstar Media Group, Inc.
Irving, TX-based Nexstar is a television broadcasting and digital media company operating in the U.S. It acquires, develops and operates television stations, broadcast television networks, as well as interactive community websites. The company offers free programming to television viewers, employing both video and display advertising platforms across various digital media channels. It also manages real estate assets.
The Zacks Rank #1 company's earnings are expected to decline this year followed by a strong comeback in the next. In the last 60 days, its estimates for 2023 and 2024 have increased $1.98 (17.7%) and $3.87 (14.8%), respectively.
The company has grown its earnings 41.8% in the last five years and analysts expect it to grow 10% in the long term.
Nexstar also pays a dividend that yields 3.23%.
The company trades at a significant discount to both the industry (75.3%) and the S&P 500 (60.8%), based on P/E.
Patterson Companies, Inc.
Headquartered in Saint Paul, MN, Patterson Companies is a distributor of dental and animal health products in the U.S., the UK and Canada. The company operates through three segments: Dental, Animal Health and Corporate.
The Dental segment offers a wide range of consumable products, dental equipment and practice optimization solutions. The Animal Health segment distributes various animal health products, including pharmaceuticals, vaccines and diagnostics. The Corporate segment provides customer financing services and sells miscellaneous products. Patterson serves healthcare professionals, veterinarians, animal health professionals and retailers.
Unlike the others, Patterson is expected to grow in both 2024 and 2025 (ending April), albeit at a low single-digit rate. Although not by a significant amount, analysts have also raised their estimates on this stock. For the fiscal year 2024, estimates increased 14 cents (6.0%) in the last 60 days while for the following year, they increased 16 cents (6.5%).
The company has grown its earnings 13.7% in the last five years and analysts expect this #1 ranked stock to grow its earnings 9.2% in the long run.
Patterson Companies' dividend yields 3.2%.
It is also trading at an attractive valuation, i.e. a 32.1% discount to its industry and a 34.9% discount to the S&P 500
Suzano S.A.
Based in Salvador, Brazil, Suzano specializes in the production and sale of eucalyptus pulp and paper products. It operates in two segments: Pulp and Paper. The company offers a wide range of paper products including printing and writing paper, paperboards, tissue paper and pulps. It is also involved in biofuel production, power generation, port terminals operation and wood-based textile fibers.
While current estimates reflect double-digit earnings declines in 2023 and 2024, it's worth noting that these estimates are increasing rapidly. The 2023 estimate for example is up 55 cents (34.8%) while the 2024 estimate is up 38 cents (29.2%).
It has grown a whopping 107.3% in the last five years, which explains the expected declines in the next two. However, analysts are projecting 6.9% growth in the next five years. Therefore, growth should return before long.
Suzano's dividend currently yields 3.43%.
The shares are trading at 4.8X P/E, a discount of 36.9% to the industry and 75.3% to the S&P 500.
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.