Back to top

Image: Bigstock

The Zacks Analyst Blog Highlights: Digital Turbine, Funko, HMS, Keysight and Kinross

Read MoreHide Full Article

For Immediate Release

Chicago, IL –October 4, 2019 – 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: Digital Turbine, Inc. (APPS - Free Report) , Funko, Inc. (FNKO - Free Report) , HMS Holdings Corp. (HMSY - Free Report) , Keysight Technologies, Inc. (KEYS - Free Report) and Kinross Gold Corp. (KGC - Free Report) .

Here are highlights from Thursday’s Analyst Blog:

Nasty Start to October Spells Good Times Ahead: 5 Picks

The month of October has traditionally been a notorious stretch for equities, described as the “jinx month” for stocks, per the Stock Trader’s Almanac. After all, some of the worst market crashes took place in the month. There were mega “crashes in 1929 and 1987.”

In fact, the great crash on Oct 19, 1987, saw the Dow plunge 22.6% in a single day, which is arguably the worst one-day decline. The other black days, of course, were “the 554-point drop on October 27, 1997, back-to-back massacres in 1978 and 1979, Friday the 13th in 1989, and the meltdown in 2008,” per the Almanac.

This time around as well, October has maintained its reputation, at least during the first two trading sessions. The Dow slumped about 840 points, or 3.1%, over the past two sessions, while the broader S&P 500 dropped more than 1% in successive sessions.

Weak employment and manufacturing data dragged down stocks. The ongoing U.S.-China trade war had a negative impact on both job additions and factory output. Per the ADP report, the nation’s private-sector companies added a modest 135,000 jobs in September, a tell-tale sign that hiring is slowing down along with the broader economy. Analysts expected job addition of 152,000.

ADP trimmed the number of new jobs created in August from an earlier 195,000 to 157,000. Needless to say, ADP is the largest processor of paychecks for a number of companies and millions of employees.

American manufacturers, in the meantime, saw their largest contraction last month since the 2007-2009 great recession. The ISM’s manufacturing index came in at 47.8% for September, declining from 49.1% in August and marking the lowest level since June 2009.

By the way, adding to trade concerns was the United States winning approval of imposing tariffs on $7.5 billion worth of European products over illegal EU subsidies handed to Airbus, thereby increasing the threat of a transatlantic trade war.

But, investors should hold their nerves. This is because a bad start to October mostly signals good times for the rest of the year. According to Bespoke Investment Group, whenever the broader S&P 500 declined at least 1% in the first trading day in October, the primary index gained an average 3.75% for the rest of October.

In fact, the index continued its winning streak and finished in the green for the remaining three months. After all, traditionally, the S&P 500 had registered an average gain of 7.3% for the fourth quarter. Bespoke added that “bulls would certainly take a 1% decline today if it meant 7%+ gains through year-end compared to the average gain of 2.43% for all years.”

5 Best Stocks to Buy for the Rest of the Year

With the stock market expected to bounce back for the rest of the year after an initial dip in the beginning of October, investing in fundamentally sound stocks that are poised to gain in the near term seems judicious. We have selected five such stocks that flaunt a Zacks Rank #1 (Strong Buy) and a Growth Score of A. You can see the complete list of today’s Zacks #1 Rank stocks here.

Digital Turbine, Inc. provides media and mobile communication products and solutions for mobile operators, application developers, device original equipment manufacturers (OEMs), and other third parties. The Zacks Consensus Estimate for its current-year earnings has moved 42.9% north over the past 60 days. The company’s expected earnings growth rate for the current year is 150% compared with the Internet - Software industry’s projected rally of 9.5%.

Funko, Inc., a pop culture consumer products company, designs, sources, and distributes licensed pop culture products. The Zacks Consensus Estimate for its current-year earnings has moved 6.1% north over the past 60 days. The company’s expected earnings growth rate for the current year is 47.6% compared with the Consumer Products - Discretionary industry’s estimated rise of 2%.

HMS Holdings Corp. provides cost-containment solutions in the United States healthcare marketplace. The Zacks Consensus Estimate for its current-year earnings has moved 6.6% up over the past 60 days. The company’s expected earnings growth rate for the current year is 25% compared with the Medical Info Systems industry’s expected rally of 8%.

Keysight Technologies, Inc. provides electronic design and test solutions to commercial communications, networking, aerospace, defense and government, automotive, energy, semiconductor, and electronic industries in the Americas. The Zacks Consensus Estimate for its current-year earnings has climbed 8.5% over the past 60 days. The company’s expected earnings growth rate for the current year is 41.7% compared with the Electronics - Measuring Instruments industry’s estimated decline of 16%.

Kinross Gold Corp.engages in the acquisition, exploration, and development of gold properties in the United States. The Zacks Consensus Estimate for its current-year earnings has moved 17.4% north over the past 60 days. The company’s expected earnings growth rate for the current year is 170% compared with the Medical Info Systems industry’s projected rally of 18.1%.

Biggest Tech Breakthrough in a Generation

Be among the early investors in the new type of device that experts say could impact society as much as the discovery of electricity. Current technology will soon be outdated and replaced by these new devices. In the process, it’s expected to create 22 million jobs and generate $12.3 trillion in activity.

A select few stocks could skyrocket the most as rollout accelerates for this new tech. Early investors could see gains similar to buying Microsoft in the 1990s. Zacks’ just-released special report reveals 7 stocks to watch. The report is only available for a limited time.

See 7 breakthrough stocks now>>

Media Contact

Zacks Investment Research

800-767-3771 ext. 9339

support@zacks.com                 

http://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 http://www.zacks.com/performance for information about the performance numbers displayed in this press release.