Archive

This week, Zacks Chief Equity Strategist and Economist John Blank, PhD discusses:

• The top stocks in the Computers and Technology sector. John surveyed this sector last year, but things move extremely rapidly in this sector, so he has put together a new two-part review for 2024. This week, John looks at stocks in four industries in the sector: Electronics, Electronics-Semiconductors, Computer Software-Services, and Computers-Office Equipment.

• As John has done in previous analyses, he defines “top” stocks in three ways: by market capitalization, by number of analysts following the stock, and by largest percent change in F1 EPS estimate (the most important element used in assigning a Zacks Rank to stocks).

• With this framework, John then examines key metrics for leading the Computers and Tech stocks, and he reveals some fascinating stories by examining data trends, including Revenue F12M, Reinvestment Rates, Net Margin TTM %, Cash Flow Yield %, Enterprise Value/Sales and many others. He looks at big, well-known names like Microsoft (MSFT), Adobe (ADBE), and Nvidia (NVDA) as well as less familiar but intriguing companies such as Pure Storage (PSTG), Generac (GNRC), IonQ (IONQ), and Ballard Power Systems (BLDP), and many, many more.

This week, Zacks Equity Strategist Mayur Thaker, CFA, discusses:

• The increasing probability of a recession. Mayur shares why it may be time to allocate to our defense-oriented Earnings Certain Proxy Portfolio, a recession-resistant portfolio built to provide low-volatility and durable earnings growth through all macroeconomic environments.

• Mayur provides a look into rising economic risks, including job openings per unemployed hitting fresh cycle lows, the high valuation risk of the S&P 500, rising layoff announcement trackers, and increasing market volatility. He also shares that cyclical companies, such as banks, materials, and industrial companies, have collectively been in an earnings recession for four quarters.

• To wrap up the discussion, Mayur suggests now is the time to get defensive with the Earnings Certain Proxy and why he thinks it will outperform over the next 12 months. He also shares the four pillars of quality—a characteristic of all companies in the Earnings Certain Portfolio. Don’t miss this week’s strategy call to get the latest analysis of our current volatile market.

This week, Zacks Chief Equity Strategist and Economist John Blank, PhD discusses:

• An analysis of the top 6 stocks in 4 key sectors: Autos-Tires-Trucks, Basic Materials, Construction, and Industrial Products. This review is designed to help with portfolio construction and asset allocation.

• Similar to John’s recent series of top stocks in various sectors, in this review he uses four criteria to identify the top stocks: market capitalization, Zacks Rank (largest percent change in F1 EPS estimate), number of analysts following the stock, and the criteria for all three. He will also look at variance and covariance, correlation, and portfolio metrics based on various weights assigned to the 6 stocks.

• Using this framework, John then examines performance metrics for the top stocks in these sectors. Tickers he discusses include names like Tesla Inc (TSLA) Paccar Inc (PCAR) in Autos-Tires-Trucks, Linde PLC (LIN) and Vale SA (VALE) in Basic Materials, Sherwin-Williams Co (SHW) and Comfort Systems USA, Inc. (FIX) in Construction, and Ball Corp (BALL) and Cintas Corp (CTAS) in Industrial Products. Don’t miss this essential review for portfolio building and allocation from Zacks’ Chief Equity Strategist!

This week, Zacks Equity Strategist Mayur Thaker, CFA, discusses:

• The rising economic risks that indicate it may be time to allocate to our defense-oriented Earnings Certain Proxy Portfolio, a recession-resistant portfolio built to provide low-volatility and durable earnings growth through all macroeconomic environments. Some portfolio members include Check Point Software, Novo Nordisk (NVO), and Mettler-Toledo (MTD).

• Mayur then looks at data that suggests an increasingly high probability for a downturn or recession in the months ahead. From S&P valuations hovering to near extreme readings, negative earnings estimate revisions for cyclical sectors, and household employment coming to a halt, Mayur indicates the probability of a recession is likely to unfold.

• To wrap up the discussion, Mayur shares the four principles companies must meet to be considered a quality company with high earnings durability. Watch this week’s strategy call for the latest analysis of our current volatile market.

This week, Zacks Chief Equity Strategist and Economist John Blank, PhD discusses:

• Top stocks among Conglomerates, defined as corporations composed of several different, independent businesses. In a conglomerate, one company owns a controlling stake in several smaller companies, all of which conduct business separately and independently. John notes that some conglomerates are incredibly profitable, and in this presentation, he will show which ones look the strongest.

• As John has done in recent analyses, he defines “top” stocks in three ways: by market capitalization, by number of analysts following the stock, and by largest percent change in F1 EPS estimate (the most important element used in assigning a Zacks Rank to stocks).

• With this framework, John then examines key metrics for leading Conglomerates stocks, focusing on revealing data including Revenue F12M, Reinvestment Rates, Net Margin TTM %, Cash Flow Yield %, Enterprise Value/Sales and many others. Tickers he discusses range from familiar brands like Hitachi Ltd (HTHIY) and 3M Co (MMM) to less well-known names such as Carlisle Companies, Inc (CSL), Bunzl plc (BZLFY), Star Equity Holdings Inc (STRR), to name just a few. Don’t miss this in-depth analysis of conglomerates from Zacks’ Chief Equity Strategist!

This week, Zacks Equity Strategist Mayur Thaker, CFA discusses:

• The macroeconomic signs that indicate it may be time to allocate into our defense-oriented Earnings Certain Portfolio (ECP). First, Mayur outlines the ECP investing thesis. The ECP family of portfolios include high-quality, recession-resistant companies that are durable, moat-protected, low volatility, with steady earnings growth. ECP members include Clorox (CLX), Novo Nordisk (NVO), J M Smucker (SJM), American Tower (AMT), to name just a few.

• Mayur then looks at data that suggests an increasingly high probability for a downturn or recession in the months ahead. From household employment to the unemployment rate, permanent job losers to job openings (JOLTS), as well as many other labor metrics, Mayur shows that while a recession isn’t a certainty, it is a growing probability.

• To wrap up this discussion, Mayur offers a plan of action to recession-proof your portfolio. He presents 4 indicators he is watching to know when it’s time to go defensive. The first 2 have already happened, but he recommends remaining long on risk assets for now. When the other 2 indicators are triggered, go full-blown defensive with the Zacks Earnings Portfolio. Don’t miss this important and timely analysis of our current volatile market.

This week, Zacks Equity Strategist Mayur Thaker, CFA discusses:

• The latest entry in his regular series of macro updates. This week, Mayur zooms in on the labor market—an area of the economy that, up until now, has been strong. However, key job numbers including job openings (JOLTS), unemployment rate, full-time jobs and many others are trending toward recessionary levels.

• More alarming, cyclical employment indicators have been in YoY contraction for 12 consecutive months. These are leading indicators for a recession. Mayur also notes that rising unemployment is already being felt in consumer behavior, as seen in reduced personal savings and retail sales, plus sharply rising credit card and auto loan delinquencies.

• Does all this mean we’re headed for a recession? Mayur believes that a small rise in unemployment could push the economy into a recession. That’s not even considering the prospect of another bank crisis due to continuing enormous pressures in commercial real estate, consumer loan delinquencies, and more. While Mayur doesn’t recommend immediate portfolio changes, he is watching three key metrics that will prompt him to go full-blown defensive. Watch this week’s video to learn what those 3 recession indicators are!

This week, Zacks Chief Equity Strategist and Economist John Blank, PhD discusses:

• An in-depth analysis of which way the U.S. market and economy are headed this year, with an emphasis on current S&P 500 dynamics as well as various key sectors. To illustrate his findings, he uses Zacks charts to highlight key data and trends including Price Momentum Index, PEG Ratio, Price/Book, Dividend Yield %, Volatility, Equity Risk Premium and many more metrics.

• John puts his equity market analysis into context with a review of the latest U.S. economic stats ranging from PMI and other manufacturing gauges to Disposable Income, Consumer Confidence, various Housing indicators and more.

• To wrap up, John looks at key measures of inflation and bond rates, walking through Treasury 10-year yields, TIPS, the Treasury yield curve, inflation gauges including CPI and much more. Don’t miss this thorough review of the current state of the stock market and the economy.

This week, Zacks Chief Equity Strategist and Economist John Blank, PhD discusses:

• Top stocks in the Basic Materials sector, a huge, worldwide topic that includes industries such as Chemicals, Paper, Steel, Non-Ferrous Metals, and Agribusiness. As he has done in recent analyses, John defines “top” stocks in three ways: by market capitalization, by number of analysts following the stock, and by largest percent change in F1 EPS estimate (the most important element used in assigning a Zacks Rank to stocks).

• Using this framework, John then examines key metrics for these leading names, using Zacks charting to illustrate comparisons of the most relevant trends for these companies. To point out strengths and weaknesses among these stocks, he looks at metrics ranging from Revenue F12M, EPS F12M, EPS Consensus, EPS Surprise, Net Margin TTM %, Return on Capital TTM %, and other measures.

• Because he uses these 3 types of screening metrics, John’s review of “top” players includes everything from enormous (and sometimes state-owned) corporations to small and often fairly new enterprises. Among the Basic Materials tickers he looks at are Linde PLC (LIN), Southern Copper (SCCO), Ecolab Inc (ECL), Klabin SA ADR (KLBAY), Perimeter Solutions SA (PRM), Steel Dynamics Inc (STLD), and many others. Don’t miss this in-depth equity analysis of the companies that produce the basics that we use to make just about everything!

This week, Zacks Chief Equity Strategist and Economist John Blank, PhD discusses:

• Top stocks in the Auto/Tires/Trucks sector, a huge and global topic that encompasses automobiles, replacement parts, tires, engines, and trucks produced in the U.S., Europe, China, Japan and elsewhere. As John as done in recent analyses, he defines “top” stocks in three ways: by market capitalization, by number of analysts following the stock, and by largest percent change in F1 EPS estimate (the most important element used in assigning a Zacks Rank to stocks).

• Using this framework, John then examines key metrics for these leading names, using Zacks charting to illustrate comparisons of the most relevant trends for these companies. To point out strengths and weaknesses among these stocks, he looks at metrics ranging from Revenue F12M, EPS F12M, EPS Consensus, EPS Surprise, EBIT TTM, Cash Flow Yield %, and other measures.

• Because he uses these 3 types of screening metrics, John’s review of “top” players includes both large and relatively small companies, and both familiar and less well-known names. Among the tickers he discusses are General Motors (GM), Tesla Inc. (TSLA), Paccar Inc. (PCAR), Nio Inc. (NIO), Goodyear Tire & Rubber Co. (GT), Genuine Parts Co. (GPC), and many others. Don’t miss this in-depth automotive stock analysis from Zacks’ Chief Equity Strategist!