Back to top

The Zacks Analyst Blog Highlights: Comtech Telecommunications, Echo Global Logistics, Shoe Carnival, Bellerophon Therapeutics and OFG Bancorp

Read MoreHide Full Article

For Immediate Release

Chicago, IL – June 12, 2018 – 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 Comtech Telecommunications Corp. (CMTL - Free Report) , Echo Global Logistics, Inc. (ECHO - Free Report) , Shoe Carnival, Inc. (SCVL - Free Report) , Bellerophon Therapeutics, Inc. (BLPH - Free Report) and OFG Bancorp (OFG - Free Report) .

Today, Zacks is promoting its ''Buy'' stock recommendations. Get #1Stock of the Day pick for free.

Here are highlights from Monday’s Analyst Blog:

Bet on 5 Top-Ranked Small Caps as Trade Tensions Escalate

In the latest edition of the drama on trade and tariffs, President Trump upped the ante against traditional U.S. allies on Monday. In a series of tweets, he attacked Canada and European trading partners, accusing them of heavy tariffs on U.S. products. Trump’s recent statements followed his refusal to endorse a G-7 joint statement backing all-round tariff cuts.

With trade-related tensions refusing to die down, small-cap stocks are looking like an increasingly attractive proposition. Their domestic focus insulates them from a variety of external risk factors. Additionally, these are likely to benefit the most from the Trump administration’s tax cuts. Adding them to your portfolio looks like a smart option at this point.

Refusal to Back G-7 Statement

Speaking at the G-7 summit in Canada on Jun 9, Trump said that trade between member countries should be free from tariff and non-tariff barriers. Initially, statements of this nature struck the right chord with other G-7 members. But Trump refused to specify how the United States would slash its tariff barriers.

Instead, he raised the issue of stiff duties imposed by Canada on U.S. dairy products. Further, he again demanded that Russia be reinstated as a member of the G-8. This is a contentious demand given that Russia was ejected from this group after it annexed Crimea in 2014.

Despite such points of discord, it initially appeared that the United States would back a joint statement calling for all-round tariff cuts. But Trump ultimately refused to back such a declaration. Instead he said that his administration would likely impose tariffs on automobile imports.

Trump’s Tweets Heighten Differences

Despite the bonhomie on show between Trump and Canada’s president Justin Trudeau, serious differences cropped up shortly after the summit ended. Speaking to the press on Jun 9, Trudeau said that Canada will proceed to enforce “retaliatory measures” on Jul 1, following the U.S. decision to impose tariffs on steel and aluminum.

Trudeau also emphasized that though Canada was polite, it would “not be pushed around.” The Trump administration seemed to take umbrage to Trudeau’s comments with Trump’s chief economic adviser calling it a “betrayal” on Jun 10.

This was followed by a series of tweets by Trump in which he attacked Canada and other U.S. allies. Taking offence to his statement that tariffs imposed by the United States were “kind of insulting”, the U.S. President said Trudeau was “dishonest and weak.” 

Through his tweets, Trump placed a cloud on trading ties between the United States and its traditional allies. According to him: “Fair Trade is now to be called Fool Trade if it is not Reciprocal.” He also asserted that the United States bears the bulk of NATO costs in order to protect countries “that rip us off on Trade.”

Our Choices

The events at the G-7 summit, and immediately after, show that trade relations between the United States and its allies are likely to worsen. Trump shows no signs of relenting on the tariff front. Meanwhile, traditional allies like Canada are toughening their stance following the imposition of tariffs on steel and aluminum. 

For investors, small-cap stocks look like the best option at this point. Their domestic focus protects them from a range of external risks. However, picking winning stocks may be difficult.

This is where our VGM Score comes in. Here V stands for Value, G for Growth and M for Momentum and the score is a weighted combination of these three scores. Such a score allows you to eliminate the negative aspects of stocks and select winners. However, it is important to keep in mind that each Style Score will carry a different weight while arriving at a VGM Score. 

We have narrowed down our search to the following stocks, each of which has a Zacks Rank #1 (Strong Buy) and a good VGM Score. You can see the complete list of today’s Zacks #1 Rank stocks here.

Comtech Telecommunications Corp. designs, develops, produces and markets innovative products, systems and services for advanced communications solutions.

Comtech Telecommunications has a VGM Score of A. The company has expected earnings growth of 70.6% for the current year. The Zacks Consensus Estimate for the current year has improved by 6.4% over the last 30 days.

Echo Global Logistics, Inc. is a leading provider of technology enabled transportation and supply chain management solutions in the United States.

Echo Global Logistics has a VGM Score of A. The company has expected earnings growth of 34.3% for the current year. The Zacks Consensus Estimate for the current year has improved by 14.4% over the last 60 days.

Shoe Carnival, Inc.is a retailer of family footwear in the United States.

Shoe Carnival has a VGM Score of B. The company’s projected growth rate for the current year is 35.9%. The Zacks Consensus Estimate for the current year has improved by 5.5% over the last 30 days.

Bellerophon Therapeutics, Inc. is a biotherapeutics company. It is focused on developing products for the treatment of cardiopulmonary and cardiac diseases.

Bellerophon Therapeutics has a VGM Score of B. The company has expected earnings growth of 74.4% for the current year. The Zacks Consensus Estimate for the current year has improved by 54% over the last 30 days.

OFG Bancorp is a financial holding company that conducts its business activities through its subsidiaries, primarily in Puerto Rico, which is an unincorporated territory of the United States.

OFG Bancorp has a VGM Score of B. The Zacks Consensus Estimate for the current year has improved by 17.9% over the last 60 days.

The Hottest Tech Mega-Trend of All

Last year, it generated $8 billion in global revenues. By 2020, it's predicted to blast through the roof to $47 billion. Famed investor Mark Cuban says it will produce "the world's first trillionaires," but that should still leave plenty of money for regular investors who make the right trades early.

See Zacks' 3 Best Stocks to Play This Trend >>

Today, Zacks is promoting its ''Buy'' stock recommendations. Get #1 Stock of the Day pick for free.

About Zacks Equity Research

Zacks Equity Research provides the best of quantitative and qualitative analysis to help investors know what stocks to buy and which to sell for the long-term.

Continuous coverage is provided for a universe of 1,150 publicly traded stocks. Our analysts are organized by industry which gives them keen insights to developments that affect company profits and stock performance. Recommendations and target prices are six-month time horizons.

Strong Stocks that Should Be in the News

Many are little publicized and fly under the Wall Street radar. They're virtually unknown to the general public. Yet today's 220 Zacks Rank #1 "Strong Buys" were generated by the stock-picking system that has nearly tripled the market from 1988 through 2015. Its average gain has been a stellar +26% per year. See these high-potential stocks free >>.

Follow us on Twitter: https://twitter.com/zacksresearch

Join us on Facebook: https://www.facebook.com/home.php#/pages/Zacks-Investment-Research/57553657748?ref=ts

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.

Media Contact

Zacks Investment Research

800-767-3771 ext. 9339

support@zacks.com

https://www.zacks.com/

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.



More from Zacks Press Releases

You May Like