We use cookies to understand how you use our site and to improve your experience. This includes personalizing content and advertising. To learn more, click here. By continuing to use our site, you accept our use of cookies, revised Privacy Policy and Terms of Service.
You are being directed to ZacksTrade, a division of LBMZ Securities and licensed broker-dealer. ZacksTrade and Zacks.com are separate companies. The web link between the two companies is not a solicitation or offer to invest in a particular security or type of security. ZacksTrade does not endorse or adopt any particular investment strategy, any analyst opinion/rating/report or any approach to evaluating individual securities.
If you wish to go to ZacksTrade, click OK. If you do not, click Cancel.
The Zacks Analyst Blog Highlights: MKSI, LM, MUR, MDC and WCC
Read MoreHide Full Article
For Immediate Release
Chicago, IL –January 24, 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: MKS Instruments Inc. (MKSI - Free Report) , Legg Mason Inc. , Murphy Oil Corp. (MUR - Free Report) , M.D.C. Holdings Inc. (MDC - Free Report) and WESCO International Inc. (WCC - Free Report) .
Here are highlights from Thursday’s Analyst Blog:
5 Must-Buy Mid-Caps Set to Beat Earnings Estimates Next Week
Wall Street had a dream run in 2019 wherein all three major stock indexes, predominantly consisting of large-cap stocks, witnessed best yearly performances in six years. Aside from these three large-cap centric indexes, the S&P 400 Mid Cap Index (SP400) also rallied 24.2% in 2019 and 2.6% in fourth-quarter 2019.
Investment in mid-cap stocks is often recognized as a good portfolio diversification strategy. These stocks combine attractive attributes of both small and large-cap stocks.
Fourth-Quarter at a Glance
A series of impressive economic data shows strong economic activities in the fourth quarter of 2019. Retail sales grew 0.3% in December and November’s retail sales growth rate was revised upward to 0.3% from 0.2% reported earlier. A report from National Retail Federation revealed that holiday retail sales increased 4.1% year over year. Strong retail sales shows higher consumer spending, which generates 70% of GDP.
U.S. housing starts jumped 16.9% in December to a seasonally adjusted annual rate of 1.608 million units, reflecting the highest percentage gain since October 2016. November’s data was revised upward from 1.365 million to 1.375 million units. Recovery of the housing market in 2019 was a major positive for the U.S. economy as the sector constitutes nearly 3.1% of GDP.
U.S. manufacturing rose 0.2% in December. However, excluding motor vehicles and parts, manufacturing production grew 0.5%. Notably, the U.S. manufacturing sector, which suffered a severe setback in 2019 due to the lingering tariff war, contributed 12% to GDP.
Earnings Results of Fourth Quarter So Far
Expectations for fourth-quarter 2019 earnings are far from encouraging at present. However, although corporate earnings growth was negative year over year in the first three quarters, results were far better than initially anticipated.
Total earnings of the S&P 500 Index are anticipated to be down 3.2% from the same period last year on 3.5% higher revenues. As of Jan 20, just 44 S&P 500 members reported fourth-quarter earnings results. Total earnings of these companies are down 3.8% from the same period last year on 3.9% higher revenues. Of the total, 75% surpassed EPS estimates while 70.5% outpaced revenue estimates.
5 Mid-Cap Stocks Poised to Beat Earnings Estimates
You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.
MKS Instruments Inc.provides instruments, subsystems and process control solutions that measure, monitor, deliver, analyze, power and control critical parameters of manufacturing processes worldwide. It operates through two segments, Vacuum and Analysis, and Light and Motion. The Zacks Rank #1 company has an Earnings ESP of +8.41% for fourth-quarter 2019.
MKS Instruments has an expected earnings growth rate of 39.7% for the current year. The Zacks Consensus Estimate for the current year has improved 1% over the last 30 days. The trailing four-quarter positive earnings surprise is 9.6%, on average. MKS Instruments is set to release earnings results on Jan 28, after the closing bell.
Legg Mason Inc.provides investment management and related services to company-sponsored mutual funds and other investment vehicles including pension funds, foundations, endowments, sovereign wealth funds, insurance companies, private banks, family offices and individuals. The Zacks Rank #2 company has an Earnings ESP of +1.59% for the third quarter of fiscal 2020 (ended December 2019).
Legg Mason has an expected earnings growth rate of 1.065.8% for the current year (ending March 2020). The Zacks Consensus Estimate for the current year has improved 0.8% over the last 30 days. The trailing four-quarter positive earnings surprise is 13.1%, on average. Legg Mason is set to release earnings results on Jan 29, after the closing bell.
Murphy Oil Corp.operates as an oil and gas exploration and production company in the United States, Canada, Malaysia and internationally. It explores and produces crude oil, natural gas, and natural gas liquids. The Zacks Rank #1 company has an Earnings ESP of +7.76% for fourth-quarter 2019.
Murphy Oil has an expected earnings growth rate of 11.9% for the current year. The Zacks Consensus Estimate for the current year has improved 46.4% over the last 30 days. The last four-quarter positive earnings surprise is 37.4%, on average. Murphy Oil is set to release earnings results on Jan 30, before the opening bell.
M.D.C. Holdings Inc.is engaged in homebuilding and financial service businesses. Its homebuilding operations include purchasing finished lots or developing lots for the construction and sale primarily of single-family detached homes to first-time and first-time move-up homebuyers. The Zacks Rank #2 company has an Earnings ESP of +2.42% for fourth-quarter 2019.
M.D.C. Holdings has an expected earnings growth rate of 18.5% for the current year. The Zacks Consensus Estimate for the current year has improved 0.7% over the last 30 days. The positive earnings surprise for the trailing four quarters is 1.3%, on average. M.D.C. Holdings is set to release earnings results on Jan 30, before the opening bell.
WESCO International Inc.distributes electrical, industrial, and communications maintenance, repair and operating and original equipment manufacturers products and construction materials in North America and internationally. The company has an Earnings ESP of +2.35% for fourth-quarter 2019.
WESCO has an expected earnings growth rate of 4.1% for the current year. The Zacks Consensus Estimate for the current year has improved 0.7% over the last 30 days. The trailing four-quarter positive earnings surprise is 1%, on average. WESCO is set to release earnings results on Jan 30, before the opening bell.
The Hottest Tech Mega-Trend of All
Last year, it generated $24 billion in global revenues. By 2020, it's predicted to blast through the roof to $77.6 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.
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.
See More Zacks Research for These Tickers
Normally $25 each - click below to receive one report FREE:
Image: Bigstock
The Zacks Analyst Blog Highlights: MKSI, LM, MUR, MDC and WCC
For Immediate Release
Chicago, IL –January 24, 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: MKS Instruments Inc. (MKSI - Free Report) , Legg Mason Inc. , Murphy Oil Corp. (MUR - Free Report) , M.D.C. Holdings Inc. (MDC - Free Report) and WESCO International Inc. (WCC - Free Report) .
Here are highlights from Thursday’s Analyst Blog:
5 Must-Buy Mid-Caps Set to Beat Earnings Estimates Next Week
Wall Street had a dream run in 2019 wherein all three major stock indexes, predominantly consisting of large-cap stocks, witnessed best yearly performances in six years. Aside from these three large-cap centric indexes, the S&P 400 Mid Cap Index (SP400) also rallied 24.2% in 2019 and 2.6% in fourth-quarter 2019.
Investment in mid-cap stocks is often recognized as a good portfolio diversification strategy. These stocks combine attractive attributes of both small and large-cap stocks.
Fourth-Quarter at a Glance
A series of impressive economic data shows strong economic activities in the fourth quarter of 2019. Retail sales grew 0.3% in December and November’s retail sales growth rate was revised upward to 0.3% from 0.2% reported earlier. A report from National Retail Federation revealed that holiday retail sales increased 4.1% year over year. Strong retail sales shows higher consumer spending, which generates 70% of GDP.
U.S. housing starts jumped 16.9% in December to a seasonally adjusted annual rate of 1.608 million units, reflecting the highest percentage gain since October 2016. November’s data was revised upward from 1.365 million to 1.375 million units. Recovery of the housing market in 2019 was a major positive for the U.S. economy as the sector constitutes nearly 3.1% of GDP.
U.S. manufacturing rose 0.2% in December. However, excluding motor vehicles and parts, manufacturing production grew 0.5%. Notably, the U.S. manufacturing sector, which suffered a severe setback in 2019 due to the lingering tariff war, contributed 12% to GDP.
Earnings Results of Fourth Quarter So Far
Expectations for fourth-quarter 2019 earnings are far from encouraging at present. However, although corporate earnings growth was negative year over year in the first three quarters, results were far better than initially anticipated.
Total earnings of the S&P 500 Index are anticipated to be down 3.2% from the same period last year on 3.5% higher revenues. As of Jan 20, just 44 S&P 500 members reported fourth-quarter earnings results. Total earnings of these companies are down 3.8% from the same period last year on 3.9% higher revenues. Of the total, 75% surpassed EPS estimates while 70.5% outpaced revenue estimates.
5 Mid-Cap Stocks Poised to Beat Earnings Estimates
Below are five stocks set to beat on earnings next week. The combination of a positive Earnings ESP and a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold) increases their chances of a beat. You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.
MKS Instruments Inc.provides instruments, subsystems and process control solutions that measure, monitor, deliver, analyze, power and control critical parameters of manufacturing processes worldwide. It operates through two segments, Vacuum and Analysis, and Light and Motion. The Zacks Rank #1 company has an Earnings ESP of +8.41% for fourth-quarter 2019.
MKS Instruments has an expected earnings growth rate of 39.7% for the current year. The Zacks Consensus Estimate for the current year has improved 1% over the last 30 days. The trailing four-quarter positive earnings surprise is 9.6%, on average. MKS Instruments is set to release earnings results on Jan 28, after the closing bell.
Legg Mason Inc.provides investment management and related services to company-sponsored mutual funds and other investment vehicles including pension funds, foundations, endowments, sovereign wealth funds, insurance companies, private banks, family offices and individuals. The Zacks Rank #2 company has an Earnings ESP of +1.59% for the third quarter of fiscal 2020 (ended December 2019).
Legg Mason has an expected earnings growth rate of 1.065.8% for the current year (ending March 2020). The Zacks Consensus Estimate for the current year has improved 0.8% over the last 30 days. The trailing four-quarter positive earnings surprise is 13.1%, on average. Legg Mason is set to release earnings results on Jan 29, after the closing bell.
Murphy Oil Corp.operates as an oil and gas exploration and production company in the United States, Canada, Malaysia and internationally. It explores and produces crude oil, natural gas, and natural gas liquids. The Zacks Rank #1 company has an Earnings ESP of +7.76% for fourth-quarter 2019.
Murphy Oil has an expected earnings growth rate of 11.9% for the current year. The Zacks Consensus Estimate for the current year has improved 46.4% over the last 30 days. The last four-quarter positive earnings surprise is 37.4%, on average. Murphy Oil is set to release earnings results on Jan 30, before the opening bell.
M.D.C. Holdings Inc.is engaged in homebuilding and financial service businesses. Its homebuilding operations include purchasing finished lots or developing lots for the construction and sale primarily of single-family detached homes to first-time and first-time move-up homebuyers. The Zacks Rank #2 company has an Earnings ESP of +2.42% for fourth-quarter 2019.
M.D.C. Holdings has an expected earnings growth rate of 18.5% for the current year. The Zacks Consensus Estimate for the current year has improved 0.7% over the last 30 days. The positive earnings surprise for the trailing four quarters is 1.3%, on average. M.D.C. Holdings is set to release earnings results on Jan 30, before the opening bell.
WESCO International Inc.distributes electrical, industrial, and communications maintenance, repair and operating and original equipment manufacturers products and construction materials in North America and internationally. The company has an Earnings ESP of +2.35% for fourth-quarter 2019.
WESCO has an expected earnings growth rate of 4.1% for the current year. The Zacks Consensus Estimate for the current year has improved 0.7% over the last 30 days. The trailing four-quarter positive earnings surprise is 1%, on average. WESCO is set to release earnings results on Jan 30, before the opening bell.
The Hottest Tech Mega-Trend of All
Last year, it generated $24 billion in global revenues. By 2020, it's predicted to blast through the roof to $77.6 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 >>
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.