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Zacks.com featured highlights Carlisle Companies, Murphy USA, Mr. Cooper and Distribution Solutions
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For Immediate Release
Chicago, IL – April 4, 2024 – Stocks in this week’s article are Carlisle Companies Inc. (CSL - Free Report) , Murphy USA Inc. (MUSA - Free Report) , Mr. Cooper Group (COOP - Free Report) and Distribution Solutions Group, Inc. (DSGR - Free Report) .
Here Are 4 Top-Ranked Plays with Relative Price Strength
The first quarter of 2024 proved to be impressive for U.S. stock markets, following a remarkable 2023. The S&P 500 surged by 10.2%, marking its strongest first-quarter showing since 2019. We anticipate that the bullish momentum will persist, bolstered by a robust U.S. economy.
In 2023, U.S. GDP expanded by 2.5%, surpassing the 1.9% growth recorded in 2022. The Federal Reserve raised its GDP forecast for this year to 2.1% during the March FOMC meeting, up from 1.4% in December 2023, signaling no immediate threat of a recession. Core PCE inflation, the Fed's preferred inflation measure, increased by 0.3% month over month in February compared to 0.5% in the prior month. Year over year, core PCE inflation came in at 2.8% in February, slightly lower than January's 2.9%. Fed Chair Jerome Powell noted that these figures aligned with the central bank's projections.
With peak inflation now in the rearview mirror, the labor market demonstrates resilience. Furthermore, personal consumption expenditure, a significant driver of GDP, rose by 0.8% month over month in February, surpassing the consensus estimate of 0.5% and the 0.2% uptick seen in January.
Given this positive outlook, savvy investors are focusing on relative price performance, strategically identifying and seizing promising opportunities that offer the potential for high returns.
Relative Price Strength Strategy
Investors generally gauge a stock’s potential returns by examining earnings growth and valuation multiples. At the same time, it’s essential to measure the performance of such a stock relative to its industry or peers, or an appropriate benchmark.
If you see that a stock is underperforming on fundamental factors, it would be prudent to move on and find a better alternative. However, those outperforming their respective sectors in terms of price should be selected because they stand a better chance of providing considerable returns.
Then again, it is imperative that you determine whether or not an investment has relevant upside potential when considering stocks with significant relative price strength. Stocks delivering better than the S&P 500 for 1 to 3 months at least and having solid fundamentals indicate room for growth and are the best ways to go about this strategy.
Finally, it is crucial to find out whether analysts are optimistic about the upcoming earnings of these companies. In order to do this, we have added positive estimate revisions for the current quarter’s (Q1) earnings to our screen. When a stock undergoes an upward revision, it leads to additional price gains.
Here are four of the seven stocks that made it through the screen:
Carlisle Companies Inc.: Based in Scottsdale, CA, AZ, the company engages in the design, manufacture and sale of a wide range of roofing and waterproofing products, engineered products and finishing equipment. CSL’s expected EPS growth rate for three to five years is currently 15%, which compares favorably with the industry's growth rate of 11.7%. The company has a VGM Score of B.
Notably, the Zacks Consensus Estimate for Carlisle Companies’ 2024 earnings per share indicates 20.5% year-over-year growth. The company has a market capitalization of $18.8 billion. CSL shares have gone up 84.3% in a year.
Murphy USA Inc.: The company is a leading independent retailer of motor fuel and convenience merchandise in the United States. The Zacks Consensus Estimate for 2024 earnings of this firm indicates 3.3% growth. Headquartered in El Dorado, AR, MUSA has a VGM Score of A.
Over the past 60 days, the Zacks Consensus Estimate for 2024 has moved up 6.6%. Murphy USA has a trailing four-quarter earnings surprise of roughly 13.6%, on average. MUSA shares have gained 66.3% in a year.
Mr. Cooper Group: The company operates in the mortgage refinancing market. Over the past 60 days, this Dallas, TX-based firm saw the Zacks Consensus Estimate for 2024 move up 5.8%. COOP has a VGM Score of B.
The Zacks Consensus Estimate for 2024 earnings of Mr. Cooper Group indicates 22.6% growth. The company beat the Zacks Consensus Estimate for earnings in each of the last four quarters. It has a trailing four-quarter earnings surprise of roughly 31.9%, on average. COOP shares have gained 83.3% in a year.
Distribution Solutions Group, Inc.: Based in Fort Worth, TX, the company specializes in distribution solutions for the maintenance, repair, and operations market worldwide. Over the past 60 days, the Zacks Consensus Estimate for 2024 earnings has moved up 16.5%. DSGR has a VGM Score of B.
Distribution Solutions Group beat the Zacks Consensus Estimate for earnings in two of the last four quarters and missed in the other two. It has a trailing four-quarter earnings surprise of roughly 13.3%, on average. DSGR shares have surged 62.7% in a year.
You can get the rest of the stocks on this list by signing up now for your 2-week free trial to the Research Wizard and start using this screen in your own trading. Further, you can also create your own strategies and test them first before taking the investment plunge.
The Research Wizard is a great place to begin. It's easy to use. Everything is in plain language. And it's very intuitive. Start your Research Wizard trial today. And the next time you read an economic report, open up the Research Wizard, plug your finds in, and see what gems come out.
Zacks Investment Research is under common control with affiliated entities (including a broker-dealer and an investment adviser), which may engage in transactions involving the foregoing securities for the clients of such affiliates.
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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Zacks.com featured highlights Carlisle Companies, Murphy USA, Mr. Cooper and Distribution Solutions
For Immediate Release
Chicago, IL – April 4, 2024 – Stocks in this week’s article are Carlisle Companies Inc. (CSL - Free Report) , Murphy USA Inc. (MUSA - Free Report) , Mr. Cooper Group (COOP - Free Report) and Distribution Solutions Group, Inc. (DSGR - Free Report) .
Here Are 4 Top-Ranked Plays with Relative Price Strength
The first quarter of 2024 proved to be impressive for U.S. stock markets, following a remarkable 2023. The S&P 500 surged by 10.2%, marking its strongest first-quarter showing since 2019. We anticipate that the bullish momentum will persist, bolstered by a robust U.S. economy.
In 2023, U.S. GDP expanded by 2.5%, surpassing the 1.9% growth recorded in 2022. The Federal Reserve raised its GDP forecast for this year to 2.1% during the March FOMC meeting, up from 1.4% in December 2023, signaling no immediate threat of a recession. Core PCE inflation, the Fed's preferred inflation measure, increased by 0.3% month over month in February compared to 0.5% in the prior month. Year over year, core PCE inflation came in at 2.8% in February, slightly lower than January's 2.9%. Fed Chair Jerome Powell noted that these figures aligned with the central bank's projections.
With peak inflation now in the rearview mirror, the labor market demonstrates resilience. Furthermore, personal consumption expenditure, a significant driver of GDP, rose by 0.8% month over month in February, surpassing the consensus estimate of 0.5% and the 0.2% uptick seen in January.
Given this positive outlook, savvy investors are focusing on relative price performance, strategically identifying and seizing promising opportunities that offer the potential for high returns.
Relative Price Strength Strategy
Investors generally gauge a stock’s potential returns by examining earnings growth and valuation multiples. At the same time, it’s essential to measure the performance of such a stock relative to its industry or peers, or an appropriate benchmark.
If you see that a stock is underperforming on fundamental factors, it would be prudent to move on and find a better alternative. However, those outperforming their respective sectors in terms of price should be selected because they stand a better chance of providing considerable returns.
Then again, it is imperative that you determine whether or not an investment has relevant upside potential when considering stocks with significant relative price strength. Stocks delivering better than the S&P 500 for 1 to 3 months at least and having solid fundamentals indicate room for growth and are the best ways to go about this strategy.
Finally, it is crucial to find out whether analysts are optimistic about the upcoming earnings of these companies. In order to do this, we have added positive estimate revisions for the current quarter’s (Q1) earnings to our screen. When a stock undergoes an upward revision, it leads to additional price gains.
Here are four of the seven stocks that made it through the screen:
Carlisle Companies Inc.: Based in Scottsdale, CA, AZ, the company engages in the design, manufacture and sale of a wide range of roofing and waterproofing products, engineered products and finishing equipment. CSL’s expected EPS growth rate for three to five years is currently 15%, which compares favorably with the industry's growth rate of 11.7%. The company has a VGM Score of B.
Notably, the Zacks Consensus Estimate for Carlisle Companies’ 2024 earnings per share indicates 20.5% year-over-year growth. The company has a market capitalization of $18.8 billion. CSL shares have gone up 84.3% in a year.
Murphy USA Inc.: The company is a leading independent retailer of motor fuel and convenience merchandise in the United States. The Zacks Consensus Estimate for 2024 earnings of this firm indicates 3.3% growth. Headquartered in El Dorado, AR, MUSA has a VGM Score of A.
Over the past 60 days, the Zacks Consensus Estimate for 2024 has moved up 6.6%. Murphy USA has a trailing four-quarter earnings surprise of roughly 13.6%, on average. MUSA shares have gained 66.3% in a year.
Mr. Cooper Group: The company operates in the mortgage refinancing market. Over the past 60 days, this Dallas, TX-based firm saw the Zacks Consensus Estimate for 2024 move up 5.8%. COOP has a VGM Score of B.
The Zacks Consensus Estimate for 2024 earnings of Mr. Cooper Group indicates 22.6% growth. The company beat the Zacks Consensus Estimate for earnings in each of the last four quarters. It has a trailing four-quarter earnings surprise of roughly 31.9%, on average. COOP shares have gained 83.3% in a year.
Distribution Solutions Group, Inc.: Based in Fort Worth, TX, the company specializes in distribution solutions for the maintenance, repair, and operations market worldwide. Over the past 60 days, the Zacks Consensus Estimate for 2024 earnings has moved up 16.5%. DSGR has a VGM Score of B.
Distribution Solutions Group beat the Zacks Consensus Estimate for earnings in two of the last four quarters and missed in the other two. It has a trailing four-quarter earnings surprise of roughly 13.3%, on average. DSGR shares have surged 62.7% in a year.
You can get the rest of the stocks on this list by signing up now for your 2-week free trial to the Research Wizard and start using this screen in your own trading. Further, you can also create your own strategies and test them first before taking the investment plunge.
The Research Wizard is a great place to begin. It's easy to use. Everything is in plain language. And it's very intuitive. Start your Research Wizard trial today. And the next time you read an economic report, open up the Research Wizard, plug your finds in, and see what gems come out.
Click here to sign up for a free trial to the Research Wizard today.
For the rest of this Screen of the Week article please visit Zacks.com at: https://www.zacks.com/stock/news/2249759/here-are-4-top-ranked-plays-with-relative-price-strength
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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.