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The Zacks Analyst Blog Rayonier Advanced Materials, Private Bancorp of America, MediaAlpha, Townsquare Media and Lands' End
Read MoreHide Full Article
For Immediate Releases
Chicago, IL – December 12, 2024 – 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 including Rayonier Advanced Materials Inc. (RYAM - Free Report) , Private Bancorp of America Inc. (PBAM - Free Report) , MediaAlpha Inc. (MAX - Free Report) , Townsquare Media Inc. (TSQ - Free Report) and Lands' End Inc. (LE - Free Report) .
Here are highlights from Thursday’s Analyst Blog:
Small Businesses Break Out in November: 5 Top Picks
The National Federation of Independent Business (NFIB) small business optimization index came in at 101.7 for November. For the first time after 34 months (since June 2021), the reading came in above the 50-year average of 98. Of the 10 Optimism Index components, nine increased and one remained unchanged.
In November, the net percent of owners expecting the economy to improve rose to a net 36% — the highest since June 2020. This component had the greatest impact on the overall increase in the Optimism Index. About 14% of small business owners said it’s a good time to expand business — the highest since June 2021.
At this stage, it will be prudent to invest in small-cap stocks to strengthen your portfolio. Here, we recommend five small-cap stocks with a top Zacks Rank and solid upside potential for the short term. These are — Rayonier Advanced Materials Inc., Private Bancorp of America Inc., MediaAlpha Inc., Townsquare Media Inc. and Lands' End Inc.
Trump Tariff to Boost Small Businesses
Since the onset of the COVID-19 pandemic in March 2020, small businesses have suffered a lot. During the pandemic, the main concern was demand, as social distancing resulted in a slowdown in U.S. consumer spending, which hurt this segment. The global breakdown of supply-chain systems and the shortage of manpower have affected these companies the most.
Donald Trump’s implementation of tariffs on foreign products is primarily aimed at strengthening U.S. industries by forcing companies to bring back jobs to the country. Small businesses have no geographical diversification and depend on U.S. consumers.
Imposition of tariffs on foreign products, especially those used as inputs to final products will make cheaper imported goods (particularly Chinese inputs) more costly. This will help indigenous small businesses to achieve a level playing field. Moreover, the Trump administration’s business-friendly policies such as reduction of corporate tax rate and anti-regulatory steps will aid small business owners.
Rate Cut to Benefit Small Businesses
After the pandemic, the major issue for U.S. small businesses was galloping inflation. This space suffered significantly due to a higher interest rate regime. The companies operate on a thin profit margin, and most new businesses take time to achieve profitability.
Small businesses are unable to pass on the total hike in input costs to their final products, taking a toll on their financial condition. Small businesses are generally dependent on cheap sources of credit for their survival. Therefore, a gradual decline in the benchmark interest rate will help this space immensely.
The Fed reduced the market interest rate by 75 basis points in September and November to a range of 4.5-4.75%. The CME FedWatch interest rate derivative tool currently shows an 86% probability that the central bank will cut the Fed fund rate by another 25 basis points in December. If this materializes, total reduction in the Fed fund rate will be 1% in 2024.
Buy 5 Small-Cap Stocks With Solid Upside in the Short Term
These five stocks have strong growth potential for 2025 and have seen positive earnings estimate revisions over the last 60 days. Each of our picks sports a Zacks Rank #1 (Strong Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.
Rayonier Advanced Materials Inc.
Rayonier Advanced Materials operates as a global supplier of cellulose specialties products, a natural polymer for the chemical industry. RYAM’s products include cellulose specialties primarily used in dissolving chemical applications; commodity viscose used in the manufacture of textiles for clothing and other fabrics, and in non-woven applications, absorbent materials comprising fibers for absorbent hygiene products and other products.
RYAM’s products are used in a wide range of industrial and consumer products such as filters, cosmetics and pharmaceuticals. RYAM’s production facilities are located primarily in Jesup, GA, and Fernandina Beach, FL.
Robust Short-Term Upside for RYAM Stock
Rayonier Advanced Materials has an expected revenue and earnings growth rate of 6% and more than 100%, respectively, for 2025. The Zacks Consensus Estimate for 2025 earnings has improved 26.1% over the last 60 days.
The average short-term price target of brokerage firms represents an increase of 51.3% from the last closing price of $8.17. The brokerage target price is currently in the range of $12 to $13. This indicates a maximum upside of 59.1% and no downside.
Private Bancorp of America Inc.
Private Bancorp of America Private Bancorp of America provides banking products and services to individuals and businesses in California. PBAM offers checking and savings, money market, certificate of deposit, sweep, zero balance, and individual retirement accounts, unsecured lines of credit, personal credit lines, and term loans, additional services, such as direct deposits, online banking, ATM and debit cards, credit cards, savings/line of credit overdraft protection, and safe deposit boxes; and certificate of deposit account registry services.
Impressive Short-Term Upside for PBAM Shares
Private Bancorp of America has an expected revenue and earnings growth rate of 11.1% and 5.6%, respectively, for 2025. The Zacks Consensus Estimate for 2025 earnings has improved 5.4% over the last 60 days.
The average short-term price target of brokerage firms represents an increase of 21.9% from the last closing price of $53. The brokerage target price is currently in the range of $60 to $71. This indicates a maximum upside of 34% and no downside.
MediaAlpha Inc.
MediaAlpha operates an insurance customer acquisition platform in the United States. MAX optimizes customer acquisition in various verticals of property and casualty insurance, health insurance, and life insurance. MAX provides real-time programmatic technology platform specializing in vertical search and metasearch.
Astonishing Price Upside Potential for MAX Stock
MediaAlpha has an expected revenue and earnings growth rate of 39.1% and 82.5%, respectively, for 2025. The Zacks Consensus Estimate for 2025 earnings has improved 28.3% over the last 60 days.
The average short-term price target of brokerage firms represents a jump of 107% from the last closing price of $11.17. The brokerage target price is currently in the range of $13 to $31. This indicates a maximum upside of 177.5% and no downside.
Townsquare Media Inc.
Townsquare Media is a local media and entertainment company. TSQ owns and operates radio, digital and live event properties in small to mid-sized markets across the country. TSQ specializes in creating and distributing original entertainment, music and lifestyle content. TSQ’s assets include radio stations, local companion websites, and a streaming radio App called radioPup for iOS and Android, and live events.
Huge Price Upside Potential for TSQ Shares
Townsquare Media has an expected revenue and earnings growth rate of 0.2% and 20.6%, respectively, for 2025. The Zacks Consensus Estimate for 2025 earnings has improved 13.2% over the last 30 days.
The average short-term price target of brokerage firms represents a jump of 66.1% from the last closing price of $10.08. The brokerage target price is currently in the range of $12.50 to $21. This indicates a maximum upside of 108.3% and no downside.
Lands' End Inc.
Lands' End operates as a multi-channel retailer. LE offers men's, women's, and kids' apparel, outerwear and swimwear, specialty apparel, accessories, footwear, and home products. LE operates in two segments: Direct and Retail. LE offers products through catalogs, online at www.landsend.com and affiliated specialty and international Websites, and through retail locations.
Excellent Price Upside Potential for LE Stock
Lands' End has an expected revenue and earnings growth rate of 2.7% and 54%, respectively, for next year (ending January 2026). The Zacks Consensus Estimate for 2025 earnings has improved 2.7% over the last seven days.
The average short-term price target of brokerage firms represents a jump of 26.3% from the last closing price of $14.69. The brokerage target price is currently in the range of $17 to $20. This indicates a maximum upside of 36.1% and no downside.
Why Haven't You Looked at Zacks' Top Stocks?
Since 2000, our top stock-picking strategies have blown away the S&P's +7.0 average gain per year. Amazingly, they soared with average gains of +44.9%, +48.4% 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 Rayonier Advanced Materials, Private Bancorp of America, MediaAlpha, Townsquare Media and Lands' End
For Immediate Releases
Chicago, IL – December 12, 2024 – 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 including Rayonier Advanced Materials Inc. (RYAM - Free Report) , Private Bancorp of America Inc. (PBAM - Free Report) , MediaAlpha Inc. (MAX - Free Report) , Townsquare Media Inc. (TSQ - Free Report) and Lands' End Inc. (LE - Free Report) .
Here are highlights from Thursday’s Analyst Blog:
Small Businesses Break Out in November: 5 Top Picks
The National Federation of Independent Business (NFIB) small business optimization index came in at 101.7 for November. For the first time after 34 months (since June 2021), the reading came in above the 50-year average of 98. Of the 10 Optimism Index components, nine increased and one remained unchanged.
In November, the net percent of owners expecting the economy to improve rose to a net 36% — the highest since June 2020. This component had the greatest impact on the overall increase in the Optimism Index. About 14% of small business owners said it’s a good time to expand business — the highest since June 2021.
At this stage, it will be prudent to invest in small-cap stocks to strengthen your portfolio. Here, we recommend five small-cap stocks with a top Zacks Rank and solid upside potential for the short term. These are — Rayonier Advanced Materials Inc., Private Bancorp of America Inc., MediaAlpha Inc., Townsquare Media Inc. and Lands' End Inc.
Trump Tariff to Boost Small Businesses
Since the onset of the COVID-19 pandemic in March 2020, small businesses have suffered a lot. During the pandemic, the main concern was demand, as social distancing resulted in a slowdown in U.S. consumer spending, which hurt this segment. The global breakdown of supply-chain systems and the shortage of manpower have affected these companies the most.
Donald Trump’s implementation of tariffs on foreign products is primarily aimed at strengthening U.S. industries by forcing companies to bring back jobs to the country. Small businesses have no geographical diversification and depend on U.S. consumers.
Imposition of tariffs on foreign products, especially those used as inputs to final products will make cheaper imported goods (particularly Chinese inputs) more costly. This will help indigenous small businesses to achieve a level playing field. Moreover, the Trump administration’s business-friendly policies such as reduction of corporate tax rate and anti-regulatory steps will aid small business owners.
Rate Cut to Benefit Small Businesses
After the pandemic, the major issue for U.S. small businesses was galloping inflation. This space suffered significantly due to a higher interest rate regime. The companies operate on a thin profit margin, and most new businesses take time to achieve profitability.
Small businesses are unable to pass on the total hike in input costs to their final products, taking a toll on their financial condition. Small businesses are generally dependent on cheap sources of credit for their survival. Therefore, a gradual decline in the benchmark interest rate will help this space immensely.
The Fed reduced the market interest rate by 75 basis points in September and November to a range of 4.5-4.75%. The CME FedWatch interest rate derivative tool currently shows an 86% probability that the central bank will cut the Fed fund rate by another 25 basis points in December. If this materializes, total reduction in the Fed fund rate will be 1% in 2024.
Buy 5 Small-Cap Stocks With Solid Upside in the Short Term
These five stocks have strong growth potential for 2025 and have seen positive earnings estimate revisions over the last 60 days. Each of our picks sports a Zacks Rank #1 (Strong Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.
Rayonier Advanced Materials Inc.
Rayonier Advanced Materials operates as a global supplier of cellulose specialties products, a natural polymer for the chemical industry. RYAM’s products include cellulose specialties primarily used in dissolving chemical applications; commodity viscose used in the manufacture of textiles for clothing and other fabrics, and in non-woven applications, absorbent materials comprising fibers for absorbent hygiene products and other products.
RYAM’s products are used in a wide range of industrial and consumer products such as filters, cosmetics and pharmaceuticals. RYAM’s production facilities are located primarily in Jesup, GA, and Fernandina Beach, FL.
Robust Short-Term Upside for RYAM Stock
Rayonier Advanced Materials has an expected revenue and earnings growth rate of 6% and more than 100%, respectively, for 2025. The Zacks Consensus Estimate for 2025 earnings has improved 26.1% over the last 60 days.
The average short-term price target of brokerage firms represents an increase of 51.3% from the last closing price of $8.17. The brokerage target price is currently in the range of $12 to $13. This indicates a maximum upside of 59.1% and no downside.
Private Bancorp of America Inc.
Private Bancorp of America Private Bancorp of America provides banking products and services to individuals and businesses in California. PBAM offers checking and savings, money market, certificate of deposit, sweep, zero balance, and individual retirement accounts, unsecured lines of credit, personal credit lines, and term loans, additional services, such as direct deposits, online banking, ATM and debit cards, credit cards, savings/line of credit overdraft protection, and safe deposit boxes; and certificate of deposit account registry services.
Impressive Short-Term Upside for PBAM Shares
Private Bancorp of America has an expected revenue and earnings growth rate of 11.1% and 5.6%, respectively, for 2025. The Zacks Consensus Estimate for 2025 earnings has improved 5.4% over the last 60 days.
The average short-term price target of brokerage firms represents an increase of 21.9% from the last closing price of $53. The brokerage target price is currently in the range of $60 to $71. This indicates a maximum upside of 34% and no downside.
MediaAlpha Inc.
MediaAlpha operates an insurance customer acquisition platform in the United States. MAX optimizes customer acquisition in various verticals of property and casualty insurance, health insurance, and life insurance. MAX provides real-time programmatic technology platform specializing in vertical search and metasearch.
Astonishing Price Upside Potential for MAX Stock
MediaAlpha has an expected revenue and earnings growth rate of 39.1% and 82.5%, respectively, for 2025. The Zacks Consensus Estimate for 2025 earnings has improved 28.3% over the last 60 days.
The average short-term price target of brokerage firms represents a jump of 107% from the last closing price of $11.17. The brokerage target price is currently in the range of $13 to $31. This indicates a maximum upside of 177.5% and no downside.
Townsquare Media Inc.
Townsquare Media is a local media and entertainment company. TSQ owns and operates radio, digital and live event properties in small to mid-sized markets across the country. TSQ specializes in creating and distributing original entertainment, music and lifestyle content. TSQ’s assets include radio stations, local companion websites, and a streaming radio App called radioPup for iOS and Android, and live events.
Huge Price Upside Potential for TSQ Shares
Townsquare Media has an expected revenue and earnings growth rate of 0.2% and 20.6%, respectively, for 2025. The Zacks Consensus Estimate for 2025 earnings has improved 13.2% over the last 30 days.
The average short-term price target of brokerage firms represents a jump of 66.1% from the last closing price of $10.08. The brokerage target price is currently in the range of $12.50 to $21. This indicates a maximum upside of 108.3% and no downside.
Lands' End Inc.
Lands' End operates as a multi-channel retailer. LE offers men's, women's, and kids' apparel, outerwear and swimwear, specialty apparel, accessories, footwear, and home products. LE operates in two segments: Direct and Retail. LE offers products through catalogs, online at www.landsend.com and affiliated specialty and international Websites, and through retail locations.
Excellent Price Upside Potential for LE Stock
Lands' End has an expected revenue and earnings growth rate of 2.7% and 54%, respectively, for next year (ending January 2026). The Zacks Consensus Estimate for 2025 earnings has improved 2.7% over the last seven days.
The average short-term price target of brokerage firms represents a jump of 26.3% from the last closing price of $14.69. The brokerage target price is currently in the range of $17 to $20. This indicates a maximum upside of 36.1% and no downside.
Why Haven't You Looked at Zacks' Top Stocks?
Since 2000, our top stock-picking strategies have blown away the S&P's +7.0 average gain per year. Amazingly, they soared with average gains of +44.9%, +48.4% 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.