Showing: 1 - 9 of 9 Results

Tenet Healthcare (THC) Expands Its Relationship With Cigna

Tenet Healthcare (THC) stretches multi-year contract with Cigna to provide its in-network access to the latter’s customers.

Grow Your Business,
Not Your Inbox

Stay informed and join our daily newsletter now!

September
6, 2021

3 min read

This story originally appeared on Zacks

Tenet Healthcare Corporation THC recently extended its relationship with Cigna Corporation CI through a new multi-year contract.With this new deal, Cigna’s customers will be able to leverage in-network access to Tenet’s hospitals, outpatient centers and physician clinics through 2025. The contract is effective Jan 1, 2022.This will also include the ambulatory hubs run by United Surgical Partners International that are integrated into Tenet’s financial statements.In 2019, both companies signed a multi-year agreement where Cigna members covered under its commercial health plans were allowed uninterrupted in-network access to Tenet providers.The contract renewal took place four months before the expiration of the current one. Patients are expected to benefit from better health outcomes at affordable costs. Given the prevalent COVID-19 pandemic, people are seeking a seamless and enriched healthcare plus access to quality physicians from hospitals. This is the right time to forge and reinforce such relationships.The well-diversified healthcare services company made numerous purchases, partnerships and strategic alliances, aimed primarily at boosting the scale of its business, growing operating capacity and expanding its geographical presence. It constantly partnered with industry biggies like Blue Cross Blue Shield of Texas, Cigna, Aetna, UnitedHealth, Humana, et al. The healthcare provider also teamed up with several healthcare systems for bolstering its partner networks.The company closed its buyout of a portfolio of 45 ambulatory surgical centers from SurgCenter Development for a value of $1.1 billion in December 2020.All these initiatives poise this presently Zacks Rank #3 (Hold) company well for long-term growth.There has been a host of activities taking place in the space. For instance, Cigna inked a multi-year deal with Connecticut-based Hartford HealthCare, which will provide its customers with continued access to the broad-based network of hospitals, facilities and providers of the latter.Price PerformanceShares of the company have soared 152.9% in a year’s time, outperforming its industry’s growth of 77.7%.Image Source: Zacks Investment ResearchStocks to ConsiderSome better-ranked stocks in the medical space are Acadia Healthcare Company, Inc. ACHC and HCA Healthcare, Inc. HCA, each carrying a Zacks Rank #2 (Buy), currently. You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.Acadia Healthcare and HCA Healthcare have a trailing four-quarter earnings surprise of 26.14% and 11.65%, respectively, on average. 
5 Stocks Set to Double
Each was handpicked by a Zacks expert as the #1 favorite stock to gain +100% or more in 2021. Previous recommendations have soared +143.0%, +175.9%, +498.3% and +673.0%.
Most of the stocks in this report are flying under Wall Street radar, which provides a great opportunity to get in on the ground floor.Today, See These 5 Potential Home Runs > >Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report Cigna Corporation (CI): Free Stock Analysis Report Tenet Healthcare Corporation (THC): Free Stock Analysis Report HCA Healthcare, Inc. (HCA): Free Stock Analysis Report Acadia Healthcare Company, Inc. (ACHC): Free Stock Analysis Report To read this article on Zacks.com click here. Zacks Investment Research

Champions Oncology, Inc. (CSBR) Reports Next Week: What You Should Expect

September
6, 2021

5 min read

This story originally appeared on Zacks

Champions Oncology, Inc. (CSBR) is expected to deliver flat earnings compared to the year-ago quarter on higher revenues when it reports results for the quarter ended July 2021. This widely-known consensus outlook gives a good sense of the company’s earnings picture, but how the actual results compare to these estimates is a powerful factor that could impact its near-term stock price.The stock might move higher if these key numbers top expectations in the upcoming earnings report, which is expected to be released on September 13. On the other hand, if they miss, the stock may move lower.While management’s discussion of business conditions on the earnings call will mostly determine the sustainability of the immediate price change and future earnings expectations, it’s worth having a handicapping insight into the odds of a positive EPS surprise.Zacks Consensus EstimateThis company is expected to post quarterly earnings of $0.01 per share in its upcoming report, which represents no change from the year-ago quarter.Revenues are expected to be $11 million, up 15.2% from the year-ago quarter.Estimate Revisions TrendThe consensus EPS estimate for the quarter has remained unchanged over the last 30 days. This is essentially a reflection of how the covering analysts have collectively reassessed their initial estimates over this period.Investors should keep in mind that an aggregate change may not always reflect the direction of estimate revisions by each of the covering analysts.Price, Consensus and EPS SurpriseEarnings WhisperEstimate revisions ahead of a company’s earnings release offer clues to the business conditions for the period whose results are coming out. This insight is at the core of our proprietary surprise prediction model — the Zacks Earnings ESP (Expected Surprise Prediction).The Zacks Earnings ESP compares the Most Accurate Estimate to the Zacks Consensus Estimate for the quarter; the Most Accurate Estimate is a more recent version of the Zacks Consensus EPS estimate. The idea here is that analysts revising their estimates right before an earnings release have the latest information, which could potentially be more accurate than what they and others contributing to the consensus had predicted earlier.Thus, a positive or negative Earnings ESP reading theoretically indicates the likely deviation of the actual earnings from the consensus estimate. However, the model’s predictive power is significant for positive ESP readings only.A positive Earnings ESP is a strong predictor of an earnings beat, particularly when combined with a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold). Our research shows that stocks with this combination produce a positive surprise nearly 70% of the time, and a solid Zacks Rank actually increases the predictive power of Earnings ESP.Please note that a negative Earnings ESP reading is not indicative of an earnings miss. Our research shows that it is difficult to predict an earnings beat with any degree of confidence for stocks with negative Earnings ESP readings and/or Zacks Rank of 4 (Sell) or 5 (Strong Sell).How Have the Numbers Shaped Up for Champions Oncology, Inc.For Champions Oncology, Inc.The Most Accurate Estimate is the same as the Zacks Consensus Estimate, suggesting that there are no recent analyst views which differ from what have been considered to derive the consensus estimate. This has resulted in an Earnings ESP of 0%.On the other hand, the stock currently carries a Zacks Rank of #5.So, this combination makes it difficult to conclusively predict that Champions Oncology, Inc. Will beat the consensus EPS estimate.Does Earnings Surprise History Hold Any Clue?Analysts often consider to what extent a company has been able to match consensus estimates in the past while calculating their estimates for its future earnings. So, it’s worth taking a look at the surprise history for gauging its influence on the upcoming number.For the last reported quarter, it was expected that Champions Oncology, Inc. Would post earnings of $0.01 per share when it actually produced a loss of $0.04, delivering a surprise of -500%.Over the last four quarters, the company has beaten consensus EPS estimates just once.Bottom LineAn earnings beat or miss may not be the sole basis for a stock moving higher or lower. Many stocks end up losing ground despite an earnings beat due to other factors that disappoint investors. Similarly, unforeseen catalysts help a number of stocks gain despite an earnings miss.That said, betting on stocks that are expected to beat earnings expectations does increase the odds of success. This is why it’s worth checking a company’s Earnings ESP and Zacks Rank ahead of its quarterly release. Make sure to utilize our Earnings ESP Filter to uncover the best stocks to buy or sell before they’ve reported.Champions Oncology, Inc. Doesn’t appear a compelling earnings-beat candidate. However, investors should pay attention to other factors too for betting on this stock or staying away from it ahead of its earnings release.
5 Stocks Set to Double
Each was handpicked by a Zacks expert as the #1 favorite stock to gain +100% or more in 2021. Previous recommendations have soared +143.0%, +175.9%, +498.3% and +673.0%.
Most of the stocks in this report are flying under Wall Street radar, which provides a great opportunity to get in on the ground floor.Today, See These 5 Potential Home Runs > >Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report Champions Oncology, Inc. (CSBR): Free Stock Analysis Report To read this article on Zacks.com click here. Zacks Investment Research

Virco Manufacturing Corporation (VIRC) Earnings Expected to Grow: What to Know Ahead of Q2 Release

September
6, 2021

5 min read

This story originally appeared on Zacks

Virco Manufacturing Corporation (VIRC) is expected to deliver a year-over-year increase in earnings on higher revenues when it reports results for the quarter ended July 2021. This widely-known consensus outlook gives a good sense of the company’s earnings picture, but how the actual results compare to these estimates is a powerful factor that could impact its near-term stock price.The earnings report might help the stock move higher if these key numbers are better than expectations. On the other hand, if they miss, the stock may move lower.While the sustainability of the immediate price change and future earnings expectations will mostly depend on management’s discussion of business conditions on the earnings call, it’s worth handicapping the probability of a positive EPS surprise.Zacks Consensus EstimateThis company is expected to post quarterly earnings of $0.30 per share in its upcoming report, which represents a year-over-year change of +30.4%.Revenues are expected to be $72.3 million, up 21.9% from the year-ago quarter.Estimate Revisions TrendThe consensus EPS estimate for the quarter has remained unchanged over the last 30 days. This is essentially a reflection of how the covering analysts have collectively reassessed their initial estimates over this period.Investors should keep in mind that an aggregate change may not always reflect the direction of estimate revisions by each of the covering analysts.Price, Consensus and EPS SurpriseEarnings WhisperEstimate revisions ahead of a company’s earnings release offer clues to the business conditions for the period whose results are coming out. This insight is at the core of our proprietary surprise prediction model — the Zacks Earnings ESP (Expected Surprise Prediction).The Zacks Earnings ESP compares the Most Accurate Estimate to the Zacks Consensus Estimate for the quarter; the Most Accurate Estimate is a more recent version of the Zacks Consensus EPS estimate. The idea here is that analysts revising their estimates right before an earnings release have the latest information, which could potentially be more accurate than what they and others contributing to the consensus had predicted earlier.Thus, a positive or negative Earnings ESP reading theoretically indicates the likely deviation of the actual earnings from the consensus estimate. However, the model’s predictive power is significant for positive ESP readings only.A positive Earnings ESP is a strong predictor of an earnings beat, particularly when combined with a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold). Our research shows that stocks with this combination produce a positive surprise nearly 70% of the time, and a solid Zacks Rank actually increases the predictive power of Earnings ESP.Please note that a negative Earnings ESP reading is not indicative of an earnings miss. Our research shows that it is difficult to predict an earnings beat with any degree of confidence for stocks with negative Earnings ESP readings and/or Zacks Rank of 4 (Sell) or 5 (Strong Sell).How Have the Numbers Shaped Up for Virco Manufacturing Corporation?For Virco Manufacturing Corporation, the Most Accurate Estimate is the same as the Zacks Consensus Estimate, suggesting that there are no recent analyst views which differ from what have been considered to derive the consensus estimate. This has resulted in an Earnings ESP of 0%.On the other hand, the stock currently carries a Zacks Rank of #3.So, this combination makes it difficult to conclusively predict that Virco Manufacturing Corporation will beat the consensus EPS estimate.Does Earnings Surprise History Hold Any Clue?Analysts often consider to what extent a company has been able to match consensus estimates in the past while calculating their estimates for its future earnings. So, it’s worth taking a look at the surprise history for gauging its influence on the upcoming number.For the last reported quarter, it was expected that Virco Manufacturing Corporation would post a loss of $0.32 per share when it actually produced a loss of $0.25, delivering a surprise of +21.88%.Over the last four quarters, the company has beaten consensus EPS estimates just once.Bottom LineAn earnings beat or miss may not be the sole basis for a stock moving higher or lower. Many stocks end up losing ground despite an earnings beat due to other factors that disappoint investors. Similarly, unforeseen catalysts help a number of stocks gain despite an earnings miss.That said, betting on stocks that are expected to beat earnings expectations does increase the odds of success. This is why it’s worth checking a company’s Earnings ESP and Zacks Rank ahead of its quarterly release. Make sure to utilize our Earnings ESP Filter to uncover the best stocks to buy or sell before they’ve reported.Virco Manufacturing Corporation doesn’t appear a compelling earnings-beat candidate. However, investors should pay attention to other factors too for betting on this stock or staying away from it ahead of its earnings release.
5 Stocks Set to Double
Each was handpicked by a Zacks expert as the #1 favorite stock to gain +100% or more in 2021. Previous recommendations have soared +143.0%, +175.9%, +498.3% and +673.0%.
Most of the stocks in this report are flying under Wall Street radar, which provides a great opportunity to get in on the ground floor.Today, See These 5 Potential Home Runs > >Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report Virco Manufacturing Corporation (VIRC): Free Stock Analysis Report To read this article on Zacks.com click here.

Lennar (LEN) to Report Q3 Results: Wall Street Expects Earnings Growth

September
6, 2021

5 min read

This story originally appeared on Zacks

Lennar (LEN) is expected to deliver a year-over-year increase in earnings on higher revenues when it reports results for the quarter ended August 2021. This widely-known consensus outlook gives a good sense of the company’s earnings picture, but how the actual results compare to these estimates is a powerful factor that could impact its near-term stock price.The earnings report might help the stock move higher if these key numbers are better than expectations. On the other hand, if they miss, the stock may move lower.While management’s discussion of business conditions on the earnings call will mostly determine the sustainability of the immediate price change and future earnings expectations, it’s worth having a handicapping insight into the odds of a positive EPS surprise.Zacks Consensus EstimateThis homebuilder is expected to post quarterly earnings of $3.24 per share in its upcoming report, which represents a year-over-year change of +52.8%.Revenues are expected to be $7.27 billion, up 23.8% from the year-ago quarter.Estimate Revisions TrendThe consensus EPS estimate for the quarter has remained unchanged over the last 30 days. This is essentially a reflection of how the covering analysts have collectively reassessed their initial estimates over this period.Investors should keep in mind that the direction of estimate revisions by each of the covering analysts may not always get reflected in the aggregate change.Price, Consensus and EPS SurpriseEarnings WhisperEstimate revisions ahead of a company’s earnings release offer clues to the business conditions for the period whose results are coming out. This insight is at the core of our proprietary surprise prediction model — the Zacks Earnings ESP (Expected Surprise Prediction).The Zacks Earnings ESP compares the Most Accurate Estimate to the Zacks Consensus Estimate for the quarter; the Most Accurate Estimate is a more recent version of the Zacks Consensus EPS estimate. The idea here is that analysts revising their estimates right before an earnings release have the latest information, which could potentially be more accurate than what they and others contributing to the consensus had predicted earlier.Thus, a positive or negative Earnings ESP reading theoretically indicates the likely deviation of the actual earnings from the consensus estimate. However, the model’s predictive power is significant for positive ESP readings only.A positive Earnings ESP is a strong predictor of an earnings beat, particularly when combined with a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold). Our research shows that stocks with this combination produce a positive surprise nearly 70% of the time, and a solid Zacks Rank actually increases the predictive power of Earnings ESP.Please note that a negative Earnings ESP reading is not indicative of an earnings miss. Our research shows that it is difficult to predict an earnings beat with any degree of confidence for stocks with negative Earnings ESP readings and/or Zacks Rank of 4 (Sell) or 5 (Strong Sell).How Have the Numbers Shaped Up for Lennar?For Lennar, the Most Accurate Estimate is the same as the Zacks Consensus Estimate, suggesting that there are no recent analyst views which differ from what have been considered to derive the consensus estimate. This has resulted in an Earnings ESP of 0%.On the other hand, the stock currently carries a Zacks Rank of #3.So, this combination makes it difficult to conclusively predict that Lennar will beat the consensus EPS estimate.Does Earnings Surprise History Hold Any Clue?While calculating estimates for a company’s future earnings, analysts often consider to what extent it has been able to match past consensus estimates. So, it’s worth taking a look at the surprise history for gauging its influence on the upcoming number.For the last reported quarter, it was expected that Lennar would post earnings of $2.34 per share when it actually produced earnings of $2.95, delivering a surprise of +26.07%.Over the last four quarters, the company has beaten consensus EPS estimates four times.Bottom LineAn earnings beat or miss may not be the sole basis for a stock moving higher or lower. Many stocks end up losing ground despite an earnings beat due to other factors that disappoint investors. Similarly, unforeseen catalysts help a number of stocks gain despite an earnings miss.That said, betting on stocks that are expected to beat earnings expectations does increase the odds of success. This is why it’s worth checking a company’s Earnings ESP and Zacks Rank ahead of its quarterly release. Make sure to utilize our Earnings ESP Filter to uncover the best stocks to buy or sell before they’ve reported.Lennar doesn’t appear a compelling earnings-beat candidate. However, investors should pay attention to other factors too for betting on this stock or staying away from it ahead of its earnings release.
5 Stocks Set to Double
Each was handpicked by a Zacks expert as the #1 favorite stock to gain +100% or more in 2021. Previous recommendations have soared +143.0%, +175.9%, +498.3% and +673.0%.
Most of the stocks in this report are flying under Wall Street radar, which provides a great opportunity to get in on the ground floor.Today, See These 5 Potential Home Runs > >Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report Lennar Corporation (LEN): Free Stock Analysis Report To read this article on Zacks.com click here. Zacks Investment Research

Volt Information Sciences (VOLT) Earnings Expected to Grow: Should You Buy?

September
6, 2021

5 min read

This story originally appeared on Zacks

Wall Street expects a year-over-year increase in earnings on higher revenues when Volt Information Sciences (VOLT) reports results for the quarter ended July 2021. While this widely-known consensus outlook is important in gauging the company’s earnings picture, a powerful factor that could impact its near-term stock price is how the actual results compare to these estimates.The earnings report, which is expected to be released on September 13, 2021, might help the stock move higher if these key numbers are better than expectations. On the other hand, if they miss, the stock may move lower.While the sustainability of the immediate price change and future earnings expectations will mostly depend on management’s discussion of business conditions on the earnings call, it’s worth handicapping the probability of a positive EPS surprise.Zacks Consensus EstimateThis staffing services provider is expected to post quarterly earnings of $0.04 per share in its upcoming report, which represents a year-over-year change of +150%.Revenues are expected to be $213 million, up 14.6% from the year-ago quarter.Estimate Revisions TrendThe consensus EPS estimate for the quarter has remained unchanged over the last 30 days. This is essentially a reflection of how the covering analysts have collectively reassessed their initial estimates over this period.Investors should keep in mind that the direction of estimate revisions by each of the covering analysts may not always get reflected in the aggregate change.Price, Consensus and EPS SurpriseEarnings WhisperEstimate revisions ahead of a company’s earnings release offer clues to the business conditions for the period whose results are coming out. Our proprietary surprise prediction model — the Zacks Earnings ESP (Expected Surprise Prediction) — has this insight at its core.The Zacks Earnings ESP compares the Most Accurate Estimate to the Zacks Consensus Estimate for the quarter; the Most Accurate Estimate is a more recent version of the Zacks Consensus EPS estimate. The idea here is that analysts revising their estimates right before an earnings release have the latest information, which could potentially be more accurate than what they and others contributing to the consensus had predicted earlier.Thus, a positive or negative Earnings ESP reading theoretically indicates the likely deviation of the actual earnings from the consensus estimate. However, the model’s predictive power is significant for positive ESP readings only.A positive Earnings ESP is a strong predictor of an earnings beat, particularly when combined with a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold). Our research shows that stocks with this combination produce a positive surprise nearly 70% of the time, and a solid Zacks Rank actually increases the predictive power of Earnings ESP.Please note that a negative Earnings ESP reading is not indicative of an earnings miss. Our research shows that it is difficult to predict an earnings beat with any degree of confidence for stocks with negative Earnings ESP readings and/or Zacks Rank of 4 (Sell) or 5 (Strong Sell).How Have the Numbers Shaped Up for Volt Information?For Volt Information, the Most Accurate Estimate is the same as the Zacks Consensus Estimate, suggesting that there are no recent analyst views which differ from what have been considered to derive the consensus estimate. This has resulted in an Earnings ESP of 0%.On the other hand, the stock currently carries a Zacks Rank of #3.So, this combination makes it difficult to conclusively predict that Volt Information will beat the consensus EPS estimate.Does Earnings Surprise History Hold Any Clue?Analysts often consider to what extent a company has been able to match consensus estimates in the past while calculating their estimates for its future earnings. So, it’s worth taking a look at the surprise history for gauging its influence on the upcoming number.For the last reported quarter, it was expected that Volt Information would post earnings of $0.02 per share when it actually produced earnings of $0.12, delivering a surprise of +500%.Over the last four quarters, the company has beaten consensus EPS estimates four times.Bottom LineAn earnings beat or miss may not be the sole basis for a stock moving higher or lower. Many stocks end up losing ground despite an earnings beat due to other factors that disappoint investors. Similarly, unforeseen catalysts help a number of stocks gain despite an earnings miss.That said, betting on stocks that are expected to beat earnings expectations does increase the odds of success. This is why it’s worth checking a company’s Earnings ESP and Zacks Rank ahead of its quarterly release. Make sure to utilize our Earnings ESP Filter to uncover the best stocks to buy or sell before they’ve reported.Volt Information doesn’t appear a compelling earnings-beat candidate. However, investors should pay attention to other factors too for betting on this stock or staying away from it ahead of its earnings release.
5 Stocks Set to Double
Each was handpicked by a Zacks expert as the #1 favorite stock to gain +100% or more in 2021. Previous recommendations have soared +143.0%, +175.9%, +498.3% and +673.0%.
Most of the stocks in this report are flying under Wall Street radar, which provides a great opportunity to get in on the ground floor.Today, See These 5 Potential Home Runs > >Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report Volt Information Sciences, Inc. (VOLT): Free Stock Analysis Report To read this article on Zacks.com click here. Zacks Investment Research

NRG Energy's (NRG) Investments, Clean Energy Goals Bode Well

NRG Energy’s (NRG) focus on emission reduction along with the strategic takeover of Direct Energy is likely to boost its operations further.

Grow Your Business,
Not Your Inbox

Stay informed and join our daily newsletter now!

September
6, 2021

3 min read

This story originally appeared on Zacks

NRG Energy NRG is likely to benefit from the Direct Energy acquisition and its completed three-year Transformation Plan. Also, focus on cleaner energy generation is likely to enhance its existing operations.The Zacks Consensus Estimate for 2021 earnings per share is pegged at $5.18, indicating a 115.8% rise from the year-ago reported figure while that of 2022 stands at $5.95, suggesting 14.8% growth from the prior-year reported number. Also, the Zacks Consensus Estimate for 2021 revenues is pegged at $18.16 billion, implying a 99.76% surge from the year-earlier reported figure while that of 2022 is pegged at $13.62 billion, hinting at a 25.02% drop from the year-ago reported figure.TailwindsNRG Energy continues to benefit from its three-year Transformation Plan, which was designed to strengthen earnings, increase cost savings and boost shareholder value. Also, in January this year, the utility closed the buyout of Direct Energy for a net value of $3.42 billion. This deal will advance its customer-focused strategy and enhance data and analytics besides creating recurring synergies worth $300 million and reducing integration costs by $202 million.The company does not depend on a single customer as none of its customers contributed more than 10% to revenues as of Dec 31, 2020. Thus, the loss of any particular customer will not significantly impact its earnings.Though the company’s debt is higher than the industry average, its transformational activities are generating enough funds to meet its current-debt obligations. Plus, it is making efforts to slowly lower the proportion of debt in its capital mix.NRG Energy is focusing on clean generation to lower greenhouse gas emissions. It targets a 50% emission cut by 2025 and net-zero emissions within 2050 from the 2014 baseline. Apart from the company, utilities like Duke Energy DUK, DTE Energy DTE and Avista Corporation AVA have plans in place to curb the carbon footprint for a pollution-free environment.WoesIntense competition in the wholesale power markets along with stringent government regulations might hurt the margins. Moreover, NRG Energy’s operations are subject to cyber-based security and integrity risks. Unplanned outages in old facilities might impede growth as well.Price PerformanceShares of the company have gained 31.7%, outperforming the industry’s increase of 2.7% in the past thtee months.Three Months’ Price PerformanceImage Source: Zacks Investment ResearchZacks RankThe utility carries a Zacks Rank#3 (Hold) at present. You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
5 Stocks Set to Double
Each was handpicked by a Zacks expert as the #1 favorite stock to gain +100% or more in 2021. Previous recommendations have soared +143.0%, +175.9%, +498.3% and +673.0%.
Most of the stocks in this report are flying under Wall Street radar, which provides a great opportunity to get in on the ground floor.Today, See These 5 Potential Home Runs > >Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report NRG Energy, Inc. (NRG): Free Stock Analysis Report Duke Energy Corporation (DUK): Free Stock Analysis Report DTE Energy Company (DTE): Free Stock Analysis Report Avista Corporation (AVA): Free Stock Analysis Report To read this article on Zacks.com click here. Zacks Investment Research

ArcelorMittal's (MT) Stock Up 36% in 6 Months: Here's Why

Forecast-topping Q2 earnings performance and an upbeat steel demand outlook for 2021 have contributed to the run-up in ArcelorMittal’s (MT) shares.

Grow Your Business,
Not Your Inbox

Stay informed and join our daily newsletter now!

September
6, 2021

4 min read

This story originally appeared on Zacks

ArcelorMittal’s MT shares have popped 36.2% over the past six months. The steel giant has also outperformed its industry’s rise of 31.5% over the same time frame. Moreover, it has topped the S&P 500’s roughly 18% rise over the same period.Let’s take a look into the factors that are driving this Zacks Rank #1 (Strong Buy) stock.Image Source: Zacks Investment Research What’s Going in MT’s Favor?Forecast-topping earnings performance in the second quarter and an upbeat steel demand outlook for 2021 have contributed to the run-up in ArcelorMittal’s shares. The company swung to a profit in the second quarter on the back of continued demand recovery and higher steel selling prices. Earnings of $3.46 per share topped the Zacks Consensus Estimate of $2.70.The company, in its second-quarter call, raised its outlook for global apparent steel consumption (“ASC”) for 2021 as it expects demand to further improve in the second half. It now envisions ASC to increase 7.5-8.5% in 2021, up from its earlier growth expectation of 4.5-5.5%. A favorable supply demand balance and a low inventory environment are supporting higher utilization levels and healthy steel spreads, ArcelorMittal noted.ArcelorMittal is seeing a strong rebound in demand following the easing of lockdown measures. Moreover, the company is expanding its steel-making capacity and remains focused on shifting to high-added-value products. Its cost-reduction initiatives will also support profitability.The company is executing a new $1 billion fixed cost reduction program. The program includes actions to improve productivity and maintenance efficiency, and rationalize support functions. ArcelorMittal expects to achieve the majority of the savings in 2021. Roughly 40% of these savings are expected to be achieved through productivity.ArcelorMittal is also gaining from a rally in steel prices. Its average steel selling prices went up around 61% year over year in the second quarter and boosted bottom line. Strengthening end-market demand, tight supply and higher raw material costs are driving steel prices. Higher steel prices should support its bottom line in 2021.Earnings estimates for ArcelorMittal have also been going up over the past two months. Over the past month, the Zacks Consensus Estimate for ArcelorMittal for 2021 has increased 44.4%. The consensus estimate for 2022 has also been revised 65.3% upward over the same time frame. Stocks to ConsiderOther top-ranked stocks worth considering in the basic materials space include Nucor Corporation NUE, Olympic Steel, Inc. ZEUS and Schnitzer Steel Industries, Inc. SCHN, each sporting a Zacks Rank #1. You can see the complete list of today’s Zacks #1 Rank stocks here.Nucor has an expected earnings growth rate of 478.7% for the current year. The company’s shares have shot up around 143% in the past year.Olympic Steel has a projected earnings growth rate of 2,362.2% for the current year. The company’s shares have surged around 126% in a year.Schnitzer Steel has an expected earnings growth rate of 1,253.5% for the current fiscal year. The stock has also rallied around 141% over a year.
5 Stocks Set to Double
Each was handpicked by a Zacks expert as the #1 favorite stock to gain +100% or more in 2021. Previous recommendations have soared +143.0%, +175.9%, +498.3% and +673.0%.
Most of the stocks in this report are flying under Wall Street radar, which provides a great opportunity to get in on the ground floor.Today, See These 5 Potential Home Runs > >Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report ArcelorMittal (MT): Free Stock Analysis Report Nucor Corporation (NUE): Free Stock Analysis Report Schnitzer Steel Industries, Inc. (SCHN): Free Stock Analysis Report Olympic Steel, Inc. (ZEUS): Free Stock Analysis Report To read this article on Zacks.com click here. Zacks Investment Research

Tech Sector Thriving for Six Months: Will the Rally Last?

September
6, 2021

5 min read

This story originally appeared on Zacks

Wall Street has maintained its impressive northbound journey so far this year after completing an astonishing bull run in the coronavirus-ridden 2020. However, the U.S. stock market’s driver has changed.In 2020, it was the technology sector that drove Wall Street to get rid of the pandemic-led historically shortest bear market and formed a new bull market. In 2021, the cyclical sectors like financials, industrials, energy, materials and consumer discretionary took the center stage.The reason for this sectoral shift is primarily due to three reasons. First, as a result of its soaring performance, the technology sector became overvalued since the beginning of 2021 and investors were concerned that a major correction is in the offing.Second, thanks to rapid deployment of nationwide COVID-19 vaccinations and a faster-than-expected reopening of the economy, the cyclical sectors, that suffered the blow of the pandemic became lucrative.Third, a spike in general price level and growing concerns about a sustainable inflation compelled a large section of market participants to contemplate that Fed will shift from the ultra-dovish monetary policies that it implemented to tackle the pandemic. This will result in a rise in the market’s risk-free returns, which will be detrimental to growth sectors like technology.  Technology Sector Regains PaceYet, a close look into Wall Street’s performance of the  technology sector is in fact flourishing in most parts of 2021 so far. In the past six months, the market’s benchmark – the S&P 500 Index – gained 18.7% while the Technology Select Sector SPDR (XLK), one of the 11 broad sectors of the benchmark, jumped 23.1%, second only to the Real Estate Select Sector SPDR (XLRE), which soared 32.8%.The technology sector’s performance has been even better in the past three months. The S&P 500 Index was up 8.2% while technology surged 16%, nearly double of the benchmark itself and became the best performer within the S&P 500 stable.Moreover, year to date, the broad-market S&P 500 Index has rallied 20.8%. The tech-heavy Nasdaq Composite is quickly catching up with a gain of 19.2% despite a slow start this year. On the other hand, the blue-chip Index – the Dow – which inclines more toward cyclical stocks – is up just 15.6%.Technology is the Best Bet in the Long TermThe logic that the technology sector will underperform the other cyclical sectors may be true for a short period of time but in the long term, technology stocks will remain the best bets. We must not forget that the growing demand for hi-tech superior products has been a catalyst for the sector in an otherwise tough environment.A series of breakthroughs in the 5G wireless network, cloud computing, predictive analysis, AI, self-driving vehicles, digital personal assistants and IoT, has given a boost to the overall space.The leading emerging markets of Asia, Latin America, Africa and some European countries are still way behind in using digital technology compared with the developed world. The outbreak of coronavirus quickly changed the lifestyle and lookout of people over there.They are now turning to digital platforms for office work (work from home), food ordering and other daily needs, including transferring money and making payments. Moreover, online schooling, video conferencing and virtual networking have now become essential.How to InvestAt this stage, several technology stocks that look attractive are available for future growth. However, picking them on the following five criteria will make the task easy. First, select technology bigwigs (market cap > $100 billion) as these companies have a globally established business model and internationally acclaimed brand value.Second, these stocks witnessed solid earnings estimate revisions for 2021 within the last 60 days. Third, these stocks have strong upside left reflected by a long-term (3-5 years) growth rate of more than 10%. Fourth, these companies are regular dividend payers that will act as an income stream in a market’s downturn.  Finally, each of these stocks carries a Zacks Rank #2 (Buy). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.Six stocks have fulfilled our selection criteria. These are: Apple Inc. AAPL, Microsoft Corp. MSFT, Applied Materials Inc. AMAT, NVIDIA Corp. NVDA, QUALCOMM Inc. QCOM and Texas Instruments Inc. TXN.The chart below shows the price performance of above-mentioned six stocks in the past six months.Image Source: Zacks Investment Research
5 Stocks Set to Double
Each was handpicked by a Zacks expert as the #1 favorite stock to gain +100% or more in 2021. Previous recommendations have soared +143.0%, +175.9%, +498.3% and +673.0%.
Most of the stocks in this report are flying under Wall Street radar, which provides a great opportunity to get in on the ground floor.Today, See These 5 Potential Home Runs > >Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report QUALCOMM Incorporated (QCOM): Free Stock Analysis Report Texas Instruments Incorporated (TXN): Free Stock Analysis Report Apple Inc. (AAPL): Free Stock Analysis Report Microsoft Corporation (MSFT): Free Stock Analysis Report NVIDIA Corporation (NVDA): Free Stock Analysis Report Applied Materials, Inc. (AMAT): Free Stock Analysis Report To read this article on Zacks.com click here. Zacks Investment Research