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The Zacks Analyst Blog Highlights: REGN, ENPH, SFM, DPZ and VNET
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For Immediate Release
Chicago, IL – March 12, 2020 – 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 Regeneron Pharmaceuticals Inc. (REGN - Free Report) , Enphase Energy Inc. (ENPH - Free Report) , Sprouts Farmers Market Inc. (SFM - Free Report) , Domino's Pizza Inc. (DPZ - Free Report) and 21Vianet Group Inc. (VNET - Free Report) .
Here are highlights from Wednesday’s Analyst Blog:
5 Top Low-Beta Stocks Flying High Despite Severe Volatility
Wall Street has been grappling with volatility over the past three weeks with coronavirus cases increasing significantly each passing day. The market has been on a roller-coaster ride with a gain of 5-7% one day and a decline of 7-8% on the next day. Market participants are yet to see any signs of stabilization.
Meanwhile, not all stocks are bearing the brunt of the market turmoil. A closer look at the market tells us a different story. A few low-beta (beta value less than 1 but greater than zero) stocks have actually recorded strong gain since these are less volatile than the broader market. Investment in some of such stocks with a favorable Zacks Rank is likely to be fruitful at this juncture.
Severe Volatility Rattles Wall Street
On Mar 9, Wall Street put up its worst performance since the last recession in 2008. The coronavirus outbreak and an unexpected crude oil price war between the OPEC and Russia-led consortium resulted in the collapse of the global stock markets.
The three major stock indexes — the Dow, the S&P 500 and the Nasdaq Composite — plunged 7.8%, 7.6% and 7.3%, respectively. In fact, the Dow plummeted 2,013.7 points, recording its worst-ever single-day performance pointwise and biggest single-day drop percentagewise since Oct 15, 2008.
However, on Mar 10, U.S. stock markets recovered some lost ground with the Dow posting a gain of 1,167.14 points. Notably, the Dow, the S&P 500 and the Nasdaq Composite rallied 4.8%, 4.9% and 5%, respectively. The indexes are currently around 15% away from their all-times highs achieved in mid-February.
Meanwhile, on Mar 9, the CBOE VIX — which reflects S&P 500 option bets to calculate expectations for volatility over the coming 30 days — jumped 30% to close at 54.46. This was the VIX’s highest closing since October 2008. On Mar 10, the VIX — popularly recognized as Wall Street’s best fear gauge — closed at 47.30, which was still significantly higher than its historical average range of 19 to 20. This clearly indicates that the market will remain choppy in the near term.
5 Low-Beta Stocks Flying High
We have narrowed down our search to five low-beta stocks that have popped in the past month, when coronavirus-led concerns shook global financial markets. We have applied three selection criteria.
We have picked stocks that witnessed upward earnings estimate revision for the year in the past 30 days. This indicates these stocks have strong potential irrespective of day-to-day market fluctuations. Second, these stocks have solid EPS growth rate for 2020. Third, each of our picks carries either a Zacks Rank #1 (Strong Buy) or 2 (Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.
Regeneron Pharmaceuticals Inc.is a biopharmaceutical company that discovers, invents, develops, manufactures and commercializes medicines for treating various medical conditions worldwide.
The Zacks Rank #1 company has an expected earnings growth rate of 16.5% for the current year. The Zacks Consensus Estimate for the current year has improved by 4.6% over the past 30 days. The stock has a beta of 0.77 and has risen 19.7% in the past month.
Enphase Energy Inc.is a global energy technology company that delivers energy management technology for the solar industry. It designs, develops and sells home energy solutions for the solar photovoltaic industry.
The Zacks Rank #1 company has an expected earnings growth rate of 33.7% for the current year. The Zacks Consensus Estimate for the current year has improved 25.7% over the past 30 days. The stock has a beta of 0.21 and has jumped 15% in the past month.
Sprouts Farmers Market Inc.is a healthy grocery store, provides fresh, natural, and organic food products in the United States. Its unique model features fresh produce at the center of the store, an expansive bulk foods section and a vitamin department focused on overall wellness.
The Zacks Rank #1 company has an expected earnings growth rate of 3.2% for the current year. The Zacks Consensus Estimate for the current year has improved by 14.2% over the past 30 days. The stock has a beta of 0.35 and has rallied 10.4% in the past month.
Domino's Pizza Inc.operates as a pizza delivery company in the United States and internationally. It operates through three segments: U.S. Stores, International Franchise, and Supply Chain.
The Zacks Rank #2 company has an expected earnings growth rate of 13.8% for the current year. The Zacks Consensus Estimate for the current year has improved by 2.5% over the past 30 days. The stock has a beta of 0.26 and has rallied 24.7% in the past month.
21Vianet Group Inc. provides carrier and cloud-neutral Internet data center services to Internet companies, government entities, blue-chip enterprises and small-to mid-sized enterprises in the People's Republic of China.
The Zacks Rank #2 company has an expected earnings growth rate of 66.7% for the current year. The Zacks Consensus Estimate for the current year has improved by 11.1% over the past 30 days. The stock has a beta of 0.13 and has climbed 20.8% in the past month.
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.
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.
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.
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The Zacks Analyst Blog Highlights: REGN, ENPH, SFM, DPZ and VNET
For Immediate Release
Chicago, IL – March 12, 2020 – 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 Regeneron Pharmaceuticals Inc. (REGN - Free Report) , Enphase Energy Inc. (ENPH - Free Report) , Sprouts Farmers Market Inc. (SFM - Free Report) , Domino's Pizza Inc. (DPZ - Free Report) and 21Vianet Group Inc. (VNET - Free Report) .
Here are highlights from Wednesday’s Analyst Blog:
5 Top Low-Beta Stocks Flying High Despite Severe Volatility
Wall Street has been grappling with volatility over the past three weeks with coronavirus cases increasing significantly each passing day. The market has been on a roller-coaster ride with a gain of 5-7% one day and a decline of 7-8% on the next day. Market participants are yet to see any signs of stabilization.
Meanwhile, not all stocks are bearing the brunt of the market turmoil. A closer look at the market tells us a different story. A few low-beta (beta value less than 1 but greater than zero) stocks have actually recorded strong gain since these are less volatile than the broader market. Investment in some of such stocks with a favorable Zacks Rank is likely to be fruitful at this juncture.
Severe Volatility Rattles Wall Street
On Mar 9, Wall Street put up its worst performance since the last recession in 2008. The coronavirus outbreak and an unexpected crude oil price war between the OPEC and Russia-led consortium resulted in the collapse of the global stock markets.
The three major stock indexes — the Dow, the S&P 500 and the Nasdaq Composite — plunged 7.8%, 7.6% and 7.3%, respectively. In fact, the Dow plummeted 2,013.7 points, recording its worst-ever single-day performance pointwise and biggest single-day drop percentagewise since Oct 15, 2008.
However, on Mar 10, U.S. stock markets recovered some lost ground with the Dow posting a gain of 1,167.14 points. Notably, the Dow, the S&P 500 and the Nasdaq Composite rallied 4.8%, 4.9% and 5%, respectively. The indexes are currently around 15% away from their all-times highs achieved in mid-February.
Meanwhile, on Mar 9, the CBOE VIX — which reflects S&P 500 option bets to calculate expectations for volatility over the coming 30 days — jumped 30% to close at 54.46. This was the VIX’s highest closing since October 2008. On Mar 10, the VIX — popularly recognized as Wall Street’s best fear gauge — closed at 47.30, which was still significantly higher than its historical average range of 19 to 20. This clearly indicates that the market will remain choppy in the near term.
5 Low-Beta Stocks Flying High
We have narrowed down our search to five low-beta stocks that have popped in the past month, when coronavirus-led concerns shook global financial markets. We have applied three selection criteria.
We have picked stocks that witnessed upward earnings estimate revision for the year in the past 30 days. This indicates these stocks have strong potential irrespective of day-to-day market fluctuations. Second, these stocks have solid EPS growth rate for 2020. Third, each of our picks carries either a Zacks Rank #1 (Strong Buy) or 2 (Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.
Regeneron Pharmaceuticals Inc.is a biopharmaceutical company that discovers, invents, develops, manufactures and commercializes medicines for treating various medical conditions worldwide.
The Zacks Rank #1 company has an expected earnings growth rate of 16.5% for the current year. The Zacks Consensus Estimate for the current year has improved by 4.6% over the past 30 days. The stock has a beta of 0.77 and has risen 19.7% in the past month.
Enphase Energy Inc.is a global energy technology company that delivers energy management technology for the solar industry. It designs, develops and sells home energy solutions for the solar photovoltaic industry.
The Zacks Rank #1 company has an expected earnings growth rate of 33.7% for the current year. The Zacks Consensus Estimate for the current year has improved 25.7% over the past 30 days. The stock has a beta of 0.21 and has jumped 15% in the past month.
Sprouts Farmers Market Inc.is a healthy grocery store, provides fresh, natural, and organic food products in the United States. Its unique model features fresh produce at the center of the store, an expansive bulk foods section and a vitamin department focused on overall wellness.
The Zacks Rank #1 company has an expected earnings growth rate of 3.2% for the current year. The Zacks Consensus Estimate for the current year has improved by 14.2% over the past 30 days. The stock has a beta of 0.35 and has rallied 10.4% in the past month.
Domino's Pizza Inc.operates as a pizza delivery company in the United States and internationally. It operates through three segments: U.S. Stores, International Franchise, and Supply Chain.
The Zacks Rank #2 company has an expected earnings growth rate of 13.8% for the current year. The Zacks Consensus Estimate for the current year has improved by 2.5% over the past 30 days. The stock has a beta of 0.26 and has rallied 24.7% in the past month.
21Vianet Group Inc. provides carrier and cloud-neutral Internet data center services to Internet companies, government entities, blue-chip enterprises and small-to mid-sized enterprises in the People's Republic of China.
The Zacks Rank #2 company has an expected earnings growth rate of 66.7% for the current year. The Zacks Consensus Estimate for the current year has improved by 11.1% over the past 30 days. The stock has a beta of 0.13 and has climbed 20.8% in the past month.
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 >>
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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 http://www.zacks.com/performance for information about the performance numbers displayed in this press release.