Vista Outdoor (VSTO) Outpaces Stock Market Gains: What You Should Know
You’re reading Entrepreneur United States, an international franchise of Entrepreneur Media. This story originally appeared on Zacks
Vista Outdoor (VSTO) closed at $41.09 in the latest trading session, marking a +0.29% move from the prior day. This move outpaced the S&P 500’s daily gain of 0.16%.
– Zacks
Coming into today, shares of the maker of firearms, ammunition and accessories had gained 0.29% in the past month. In that same time, the Consumer Discretionary sector lost 3.07%, while the S&P 500 lost 3.32%.
Investors will be hoping for strength from VSTO as it approaches its next earnings release. The company is expected to report EPS of $1.77, up 60.91% from the prior-year quarter. Our most recent consensus estimate is calling for quarterly revenue of $723.34 million, up 25.76% from the year-ago period.
For the full year, our Zacks Consensus Estimates are projecting earnings of $6.09 per share and revenue of $2.78 billion, which would represent changes of +66.39% and +24.75%, respectively, from the prior year.
Investors should also note any recent changes to analyst estimates for VSTO. These revisions help to show the ever-changing nature of near-term business trends. With this in mind, we can consider positive estimate revisions a sign of optimism about the company’s business outlook.
Research indicates that these estimate revisions are directly correlated with near-term share price momentum. To benefit from this, we have developed the Zacks Rank, a proprietary model which takes these estimate changes into account and provides an actionable rating system.
Ranging from #1 (Strong Buy) to #5 (Strong Sell), the Zacks Rank system has a proven, outside-audited track record of outperformance, with #1 stocks returning an average of +25% annually since 1988. Over the past month, the Zacks Consensus EPS estimate has moved 0.16% higher. VSTO is currently a Zacks Rank #1 (Strong Buy).
Looking at its valuation, VSTO is holding a Forward P/E ratio of 6.73. This represents a discount compared to its industry’s average Forward P/E of 10.75.
The Leisure and Recreation Products industry is part of the Consumer Discretionary sector. This industry currently has a Zacks Industry Rank of 33, which puts it in the top 13% of all 250+ industries.
The Zacks Industry Rank includes is listed in order from best to worst in terms of the average Zacks Rank of the individual companies within each of these sectors. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.
Be sure to follow all of these stock-moving metrics, and many more, on Zacks.com.
Zacks’ Top Picks to Cash in on Artificial Intelligence
In 2021, this world-changing technology is projected to generate $327.5 billion in revenue. Now Shark Tank star and billionaire investor Mark Cuban says AI will create “the world’s first trillionaires.” Zacks’ urgent special report reveals 3 AI picks investors need to know about today.
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
Siderurgica Nacional (SID) Outpaces Stock Market Gains: What You Should Know
You’re reading Entrepreneur United States, an international franchise of Entrepreneur Media. This story originally appeared on Zacks
Siderurgica Nacional (SID) closed the most recent trading day at $5.14, moving +0.59% from the previous trading session. This move outpaced the S&P 500’s daily gain of 0.16%.
– Zacks
Prior to today’s trading, shares of the steelmaker had lost 24.18% over the past month. This has lagged the Basic Materials sector’s loss of 7.91% and the S&P 500’s loss of 3.32% in that time.
Wall Street will be looking for positivity from SID as it approaches its next earnings report date. On that day, SID is projected to report earnings of $0.61 per share, which would represent year-over-year growth of 258.82%. Meanwhile, the Zacks Consensus Estimate for revenue is projecting net sales of $2.97 billion, up 83.38% from the year-ago period.
SID’s full-year Zacks Consensus Estimates are calling for earnings of $2.63 per share and revenue of $10.7 billion. These results would represent year-over-year changes of +338.33% and +84.4%, respectively.
Any recent changes to analyst estimates for SID should also be noted by investors. These revisions typically reflect the latest short-term business trends, which can change frequently. With this in mind, we can consider positive estimate revisions a sign of optimism about the company’s business outlook.
Our research shows that these estimate changes are directly correlated with near-term stock prices. To benefit from this, we have developed the Zacks Rank, a proprietary model which takes these estimate changes into account and provides an actionable rating system.
The Zacks Rank system, which ranges from #1 (Strong Buy) to #5 (Strong Sell), has an impressive outside-audited track record of outperformance, with #1 stocks generating an average annual return of +25% since 1988. Within the past 30 days, our consensus EPS projection has moved 17.58% lower. SID is currently a Zacks Rank #5 (Strong Sell).
Valuation is also important, so investors should note that SID has a Forward P/E ratio of 1.95 right now. This valuation marks a discount compared to its industry’s average Forward P/E of 4.14.
Investors should also note that SID has a PEG ratio of 0.1 right now. This popular metric is similar to the widely-known P/E ratio, with the difference being that the PEG ratio also takes into account the company’s expected earnings growth rate. SID’s industry had an average PEG ratio of 0.17 as of yesterday’s close.
The Steel – Producers industry is part of the Basic Materials sector. This industry currently has a Zacks Industry Rank of 43, which puts it in the top 17% of all 250+ industries.
The Zacks Industry Rank gauges the strength of our industry groups by measuring the average Zacks Rank of the individual stocks within the groups. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.
To follow SID in the coming trading sessions, be sure to utilize Zacks.com.
Zacks’ Top Picks to Cash in on Artificial Intelligence
In 2021, this world-changing technology is projected to generate $327.5 billion in revenue. Now Shark Tank star and billionaire investor Mark Cuban says AI will create “the world’s first trillionaires.” Zacks’ urgent special report reveals 3 AI picks investors need to know about today.
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
Southern Copper (SCCO) Stock Sinks As Market Gains: What You Should Know
You’re reading Entrepreneur United States, an international franchise of Entrepreneur Media. This story originally appeared on Zacks
Southern Copper (SCCO) closed the most recent trading day at $57.17, moving -1.77% from the previous trading session. This change lagged the S&P 500’s 0.16% gain on the day.
– Zacks
Coming into today, shares of the miner had lost 7.01% in the past month. In that same time, the Basic Materials sector lost 7.91%, while the S&P 500 lost 3.32%.
Wall Street will be looking for positivity from SCCO as it approaches its next earnings report date. The company is expected to report EPS of $1.10, up 69.23% from the prior-year quarter. Meanwhile, our latest consensus estimate is calling for revenue of $2.7 billion, up 27.01% from the prior-year quarter.
For the full year, our Zacks Consensus Estimates are projecting earnings of $4.42 per share and revenue of $10.97 billion, which would represent changes of +117.73% and +37.36%, respectively, from the prior year.
Any recent changes to analyst estimates for SCCO should also be noted by investors. These revisions typically reflect the latest short-term business trends, which can change frequently. As a result, we can interpret positive estimate revisions as a good sign for the company’s business outlook.
Research indicates that these estimate revisions are directly correlated with near-term share price momentum. We developed the Zacks Rank to capitalize on this phenomenon. Our system takes these estimate changes into account and delivers a clear, actionable rating model.
The Zacks Rank system, which ranges from #1 (Strong Buy) to #5 (Strong Sell), has an impressive outside-audited track record of outperformance, with #1 stocks generating an average annual return of +25% since 1988. Over the past month, the Zacks Consensus EPS estimate has moved 4.95% lower. SCCO is holding a Zacks Rank of #5 (Strong Sell) right now.
Investors should also note SCCO’s current valuation metrics, including its Forward P/E ratio of 13.17. This valuation marks a premium compared to its industry’s average Forward P/E of 12.84.
Investors should also note that SCCO has a PEG ratio of 0.79 right now. This metric is used similarly to the famous P/E ratio, but the PEG ratio also takes into account the stock’s expected earnings growth rate. The Mining – Non Ferrous was holding an average PEG ratio of 0.79 at yesterday’s closing price.
The Mining – Non Ferrous industry is part of the Basic Materials sector. This group has a Zacks Industry Rank of 192, putting it in the bottom 25% of all 250+ industries.
The Zacks Industry Rank includes is listed in order from best to worst in terms of the average Zacks Rank of the individual companies within each of these sectors. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.
To follow SCCO in the coming trading sessions, be sure to utilize Zacks.com.
Zacks’ Top Picks to Cash in on Artificial Intelligence
In 2021, this world-changing technology is projected to generate $327.5 billion in revenue. Now Shark Tank star and billionaire investor Mark Cuban says AI will create “the world’s first trillionaires.” Zacks’ urgent special report reveals 3 AI picks investors need to know about today.
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
Lumber Liquidators Holdings (LL) Flat As Market Gains: What You Should Know
You’re reading Entrepreneur United States, an international franchise of Entrepreneur Media. This story originally appeared on Zacks
Lumber Liquidators Holdings (LL) closed at $19.31 in the latest trading session, marking no change from the prior day. This move lagged the S&P 500’s daily gain of 0.16%.
– Zacks
Heading into today, shares of the hardwood floors retailer had lost 7.43% over the past month, lagging the Retail-Wholesale sector’s loss of 1.73% and the S&P 500’s loss of 3.32% in that time.
Investors will be hoping for strength from LL as it approaches its next earnings release. On that day, LL is projected to report earnings of $0.24 per share, which would represent a year-over-year decline of 64.18%. Meanwhile, our latest consensus estimate is calling for revenue of $289.2 million, down 2.24% from the prior-year quarter.
For the full year, our Zacks Consensus Estimates are projecting earnings of $1.25 per share and revenue of $1.18 billion, which would represent changes of -45.18% and +7.04%, respectively, from the prior year.
Investors might also notice recent changes to analyst estimates for LL. These recent revisions tend to reflect the evolving nature of short-term business trends. With this in mind, we can consider positive estimate revisions a sign of optimism about the company’s business outlook.
Research indicates that these estimate revisions are directly correlated with near-term share price momentum. Investors can capitalize on this by using the Zacks Rank. This model considers these estimate changes and provides a simple, actionable rating system.
Ranging from #1 (Strong Buy) to #5 (Strong Sell), the Zacks Rank system has a proven, outside-audited track record of outperformance, with #1 stocks returning an average of +25% annually since 1988. Over the past month, the Zacks Consensus EPS estimate has moved 0.81% higher. LL is currently a Zacks Rank #4 (Sell).
Valuation is also important, so investors should note that LL has a Forward P/E ratio of 15.45 right now. Its industry sports an average Forward P/E of 15.63, so we one might conclude that LL is trading at a discount comparatively.
The Building Products – Retail industry is part of the Retail-Wholesale sector. This group has a Zacks Industry Rank of 45, putting it in the top 18% of all 250+ industries.
The Zacks Industry Rank gauges the strength of our industry groups by measuring the average Zacks Rank of the individual stocks within the groups. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.
Make sure to utilize Zacks. Com to follow all of these stock-moving metrics, and more, in the coming trading sessions.
Zacks’ Top Picks to Cash in on Artificial Intelligence
In 2021, this world-changing technology is projected to generate $327.5 billion in revenue. Now Shark Tank star and billionaire investor Mark Cuban says AI will create “the world’s first trillionaires.” Zacks’ urgent special report reveals 3 AI picks investors need to know about today.
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
Novavax (NVAX) Stock Sinks As Market Gains: What You Should Know
You’re reading Entrepreneur United States, an international franchise of Entrepreneur Media. This story originally appeared on Zacks
Novavax (NVAX) closed at $203.53 in the latest trading session, marking a -0.63% move from the prior day. This change lagged the S&P 500’s 0.16% gain on the day.
– Zacks
Coming into today, shares of the vaccine maker had lost 14.13% in the past month. In that same time, the Medical sector lost 4.94%, while the S&P 500 lost 3.32%.
Investors will be hoping for strength from NVAX as it approaches its next earnings release. On that day, NVAX is projected to report earnings of -$4.04 per share, which would represent a year-over-year decline of 25.86%. Our most recent consensus estimate is calling for quarterly revenue of $306.8 million, up 95.39% from the year-ago period.
Looking at the full year, our Zacks Consensus Estimates suggest analysts are expecting earnings of -$8.37 per share and revenue of $1.77 billion. These totals would mark changes of -15.13% and +273.17%, respectively, from last year.
Any recent changes to analyst estimates for NVAX should also be noted by investors. Recent revisions tend to reflect the latest near-term business trends. With this in mind, we can consider positive estimate revisions a sign of optimism about the company’s business outlook.
Based on our research, we believe these estimate revisions are directly related to near-team stock moves. We developed the Zacks Rank to capitalize on this phenomenon. Our system takes these estimate changes into account and delivers a clear, actionable rating model.
The Zacks Rank system, which ranges from #1 (Strong Buy) to #5 (Strong Sell), has an impressive outside-audited track record of outperformance, with #1 stocks generating an average annual return of +25% since 1988. Within the past 30 days, our consensus EPS projection has moved 3.86% lower. NVAX is currently sporting a Zacks Rank of #3 (Hold).
The Medical – Biomedical and Genetics industry is part of the Medical sector. This group has a Zacks Industry Rank of 178, putting it in the bottom 30% of all 250+ industries.
The Zacks Industry Rank gauges the strength of our industry groups by measuring the average Zacks Rank of the individual stocks within the groups. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.
Make sure to utilize Zacks. Com to follow all of these stock-moving metrics, and more, in the coming trading sessions.
Zacks’ Top Picks to Cash in on Artificial Intelligence
In 2021, this world-changing technology is projected to generate $327.5 billion in revenue. Now Shark Tank star and billionaire investor Mark Cuban says AI will create “the world’s first trillionaires.” Zacks’ urgent special report reveals 3 AI picks investors need to know about today.
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
3 Top Retail Stocks to Buy Ahead of the Holidays and Hold
You’re reading Entrepreneur United States, an international franchise of Entrepreneur Media. This story originally appeared on Zacks
– Zacks
Today’s episode of Full Court Finance at Zacks dives into where the market stands heading into the holiday shopping season, following another big pullback Tuesday. The focus then shifts to three highly-ranked retail stocks that investors might want to consider buying now and holding.
Stocks tumbled Tuesday, with the S&P 500 down 1.8%, the Nasdaq 2.5% lower, and the Dow off 1.4% through early afternoon trading. The sharp drop marked the S&P 500’s second straight day of losses as Wall Street focuses on what’s next for the Fed. Meanwhile, bond yields have climbed to near three-month highs, with the 10-year U.S. Treasury at around 1.52%, up from the 1.18% it touched in early August—bond yields rise as prices fall
The recent selling comes after the Fed signaled last week that it could start to slowly reverse its pandemic stimulus, or massive bond buying program as soon as November. Meanwhile, the central bank said it could start to raise its interest rates sometime next year—higher yields make growth tech stocks less attractive. Stocks could remain shaky in the fall and winter, and some Wall Street analysts think the U.S. economic comeback already peaked. Others cite cooling earnings revisions, rising prices, and global supply chain setbacks as reasons to worry.
But it is worth noting that even when the Fed starts to raise its interest rates, they will likely continue to favor stocks. For example, the 10-year U.S. Treasury yield has rarely and barely moved above 3% in the last decade, and with higher than 2% inflation, Wall Street will likely continue chasing returns in equities.
The market was also due for a pullback or even a correction (10% move lower from its highs) given the massive 2021 run. In fact, traders and analysts have been calling for a downturn for months and when it does come it will be healthy.
Still, long-term investors should try to stay relatively exposed to the market at all times. And let’s remember the overall earnings picture remains strong and the margins outlook for 2022 and 2023 suggests inflation could be somewhat transitory. On top of that, August retail sales were surprisingly solid, highlighting economic resilience in the face of delta variant worries.
Given this backdrop, investors might want to consider adding strong retail stocks poised to benefit from holiday season spending and grow for years, within different aspects of the market. The first stock up is high-end cooler and drinkware giant Yeti YETIthat’s carved out a niche within a group of up-and-coming retailers like Lululemon LULU and others.
Meanwhile, Best Buy BBY has outpaced Walmart WMT over the last five years and its dividend yield is impressive. And, of course, it’s prepared to gain from the booming consumer electronics space that includes giants like Apple AAPL and new standouts such as Sonos SONO.
The last stock up is mattress power Tempur Sealy International, Inc. TPX, which has benefited from the soaring housing market and home improvement-style sales.
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.
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
5 Top-Ranked ETFs That Outperformed the Market in September
You’re reading Entrepreneur United States, an international franchise of Entrepreneur Media. This story originally appeared on Zacks
Wall Street has been witnessing some muted performances in the seasonally weak month of September. Other concerns that kept investors worried include rising coronavirus cases due to the highly contagious Delta variant, surging inflation levels, uncertainty surrounding the Federal Reserve’s meeting and its decision on tapering the fiscal stimulus along with China’s property crisis.
– Zacks
Notably, the Dow Jones Industrial Average is down 1.4% in September so far. Other broad market indices, the S&P 500 and the Nasdaq Composite, have also declined 1.8% and 1.9%, respectively, in September.
Against this backdrop, let’s take a look at some top-ranked ETFs that have been outperforming the market in September:
First Trust Natural Gas ETFFCG — up 21.9% in the past month
The cold wave from Arctic region accelerates electricity demand across the United States, putting focus on natural gas. Considering the scenario, forecasts of colder-than-expected temperatures in the United States are expected to drive natural gas prices. U.S. natural gas futures have now risen to a seven-year high due to the supply crunch heading into the winter-heating season.
The fund seeks investment results that correspond generally to the price and yield, before fees and expenses, of an equity index called the ISE-Revere Natural Gas Index. It has AUM of $312.9 million and charges 60 basis points (bps) in annual fees. It carries a Zacks ETF Rank #2 (Buy) with a High-risk outlook (read: 7 Best ETFs of the First Nine Months of 2021).
The coronavirus vaccine rollout is gradually helping control the spread of the outbreak across the globe. Accordingly, the global demand and economic growth levels are on the path of recovery from the pandemic-led slump. The optimism surrounding the gradual reopening of global economies and increasing demand is painting a rosy picture for cyclical sectors. Consequently, the energy sector has been gaining investors’ attention on the latest rally in oil prices. Notably, shrinking crude inventories, supply disruption in the Gulf of Mexico following a couple of hurricanes and surging fuel demand are pushing oil prices higher.
The fund seeks to track the performance of the MSCI US Investable Market Energy 25/50 Index. It has AUM of $5.09 billion and charges 10 bps in annual fees. It carries a Zacks ETF Rank #2 with a High-risk outlook (read: Energy ETFs to Gain on Upbeat Exxon, Chevron Q2 Earnings).
The semiconductor industry has been increasingly gaining investors’ attention backed by its bright prospects. The coronavirus-induced work-from-home and web-based learning trends have spurred demand for chips from PC manufacturers and data-center operators. Data-center operators have increased their capacities to meet the surging demand for cloud services. The companies that provide design and other components for chip making are expected to gain from this trend. Growing adoption of cloud computing and the ongoing infusion of artificial intelligence, machine learning and Internet of Things are expected to keep the sector brewing with opportunities in 2021.
This fund tracks the Dynamic Semiconductor Intellidex Index, holding 31 securities in its basket. The product has AUM of $707.7 million. Its expense ratio is 0.57%. PSI sports a Zacks ETF Rank #1 (Strong Buy), with a High-risk outlook (read: Buy the Dip With These Top-Ranked ETFs).
This holiday season appears to be a comparatively strong period for retailers. Moreover, the growing inclination toward ecommerce has resulted in a wider reach for players in the retail space. That’s why there is likely to be a surge in demand for freight services to deliver the products ordered online.
The United States will likely relax travel restrictions for international visitors who are vaccinated against COVID-19 in November, including those from the U.K. and EU, the White House said recently, per a CNBC article. Foreigners visiting the United States will have to present a vaccination proof and a negative COVID-19 test taken within three days of travel. The latest White House announcement came post the peak summer travel season, which signals at strong holiday travel demand.
The fund seeks to provide investment results that, before fees and expenses, correspond generally to the total return performance of the S&PTransportation Select Industry Index. It has AUM of $493.9 million and charges 35 bps in annual fees. It carries a Zacks ETF Rank #2 with a High-risk outlook (read: Labor Shortages Hit FedEx Q1 Earnings: ETFs in Focus).
The Consumer Discretionary Select Sector SPDR Fund XLY — up 2.4%
Amid the current market environment, investors looking to rake in some good returns can consider the consumer discretionary sector. The U.S. consumer sentiment also marginally improved despite concerns about the surging coronavirus cases and inflationary levels. The University of Michigan’s preliminary consumer sentiment inched up to 71 in September from 70.3 last month, per a BloombergQuint article.
The strength in consumer sentiment can be the major driving force behind the solid performance of the consumer discretionary space as consumers are expected to splurge this holiday season after being restricted for more than a year. Notably, a number of restaurants and retailers that have resumed business after restrictions were relaxed in the United States should see some accelerated demand and footfall. Also, the leisure and entertainment space should see a rebound as casinos and amusement parks have started welcoming visitors.
This is the largest and most popular product in the consumer discretionary space, with AUM of $20.35 billion. It tracks the Consumer Discretionary Select Sector Index. The fund charges 12 bps in fees per year and carries a Zacks ETF Rank #2, with a Medium-risk outlook (read: Can Consumer Discretionary ETFs Make Good Bets for Q4?).
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.
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
Here’s Why You Should Retain Medtronic (MDT) Stock for Now
You’re reading Entrepreneur United States, an international franchise of Entrepreneur Media. This story originally appeared on Zacks
Medtronic PLCMDT is well poised for growth in the coming quarters owing to strong market share gain across three of its largest businesses. The company exited first-quarter fiscal 2022 with better-than-expected results. Strong recovery in the business raises optimism for the stock. However, the emergence of the new Delta variant has hampered business. Stiff completion and adverse currency fluctuations are other headwinds.
– Zacks
Over the past year, the Zacks Rank #3 (Hold) stock has gained 26.7% compared with 13.4% growth of the industry and 36.8% rise of the S&P 500.
The renowned medical-device company has a market capitalization of $173.27 billion. Its earnings for first-quarter fiscal 2022 surpassed the Zacks Consensus Estimate by 6.8%.
Over the past five years, the company’s earnings growth declined 1.5% versus the industry’s 6.2% rise and the S&P 500’s 2.8% increase. The company’s long-term projected growth of 8.8% compares with the industry’s growth projection of 16.5% and the S&P 500’s expectation of 11.4% growth.
Image Source: Zacks Investment Research
Let’s delve deeper.
Factors in Play
Q1 Upsides: Medtronic ended first-quarter fiscal 2022 on an extremely bullish note, with better-than-expected earnings and revenues. Barring Diabetes, each and every operating segment and geography registered strong year-over-year growth on an organic basis.
The company’s fiscal first-quarter results echoed a strong recovery of elective procedures with most of Medtronic businesses finishing at or above pre-COVID levels. This reflected solid execution and continued procedure volume recovery. The increase in the low-end of Medtronic’s fiscal-2022 EPS guidance looks encouraging as well.
Business Recovery Continues: Medtronic has exhibited strong recovery and ability to return to growth since the onset of fiscal 2022. Recovery from the pandemic and robust new product flow have led to the comeback. Further, increasing cadence of tuck-in M&As and implementation of a new operating model should add to the recovery momentum.
The company in this regard noted that the fiscal first-quarter results reflected recovery of elective procedures with most of the businesses finishing at or above pre-COVID levels. The continued improvement in monthly trends raises optimism.
Strong Market Share Gain: We are upbeat about Medtronic’s market share gains across three of its largest businesses — cardiac rhythm, surgical innovations and spine. The cardiac rhythm management business continued to perform well above the market adding over 3 percentage points of share. In surgical innovations, Medtronic gained share on strong global adoption of Endo Stapling and advanced energy technology. In spine, Medtronic’s wide product offerings, including spine implants, biologics, and enabling technologies, resulted in above-market growth.
Apart from this, the company gained share in some of its faster growing businesses like TAVR, Pelvic Health and Pain Stim.
Downsides
New COVID Variants Hamper Businesses: The emergence of the Delta variant of COVID-19 had a strong impact on Medtronic’s procedure volumes in certain geographies in the fiscal first quarter. In Pain Stim, the company noted a gradual slowdown in permanent implants and trialing procedures in the latter of the first quarter. In cardiovascular, Medtronic continued to lose share in the cardiac diagnostics business. The company also lost share in the neurovascular business.
Competitive Landscape: Medtronic earns majority of revenues from CRDM, Spinal and Cardio Vascular segments, where it faces stiff competition from MedTech bigwigs. In the CRDM segment, the company competes with notable players like Boston Scientific Corp.BSX, among others.
Exposure to Currency Movement: Medtronic is highly susceptible to currency fluctuations since the company records a significant portion of its sales from the international market. Unfavorable currency movements have been a major dampener over the last few quarters, as is the case for other key MedTech players.
Estimate Trend
Over the past 90 days, the Zacks Consensus Estimate for Medtronic’s earnings for 2022 has moved 0.4% north to $5.7.
The Zacks Consensus Estimate for second-quarter fiscal 2022 revenues is pegged at $7.9 billion, suggesting a 4.3% rise from the year-ago reported number.
Envista Holdings has a long-term earnings growth rate of 27.4%.
BellRing Brands has a long-term earnings growth rate of 29.1%.
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.
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
Should Value Investors Consider Ecovyst (ECVT) Stock Now?
Value investing is easily one of the most popular ways to find great stocks in any market environment. After all, who wouldn’t want to find stocks that are either flying under the radar and are compelling buys, or offer up tantalizing discounts when compared to fair value?
– Zacks
One way to find these companies is by looking at several key metrics and financial ratios, many of which are crucial in the value stock selection process. Let’s put Ecovyst Inc. ECVTstock into this equation and find out if it is a good choice for value-oriented investors right now, or if investors subscribing to this methodology should look elsewhere for top picks:
PE Ratio
A key metric that value investors always look at is the Price to Earnings Ratio, or PE for short. This shows us how much investors are willing to pay for each dollar of earnings in a given stock, and is easily one of the most popular financial ratios in the world. The best use of the PE ratio is to compare the stock’s current PE ratio with: a) where this ratio has been in the past; b) how it compares to the average for the industry/sector; and c) how it compares to the market as a whole.
On this front, Ecovyst has a trailing twelve months PE ratio of 12.28, as you can see in the chart below:
Image Source: Zacks Investment Research
This level actually compares pretty favorably with the market at large, as the PE for the S&P 500 stands at about 25.32. If we focus on the long-term PE trend, Ecovyst’s current PE level puts it below its midpoint over the past three years.
Image Source: Zacks Investment Research
Further, the stock’s PE compares favorably with the Zacks Business Services sector’s trailing twelve months PE ratio, which stands at 33.32. At the very least, this indicates that the stock is relatively undervalued right now, compared to its peers.
Image Source: Zacks Investment Research
We should also point out that Ecovyst has a forward PE ratio (price relative to this year’s earnings) of just 26.20, which is tad higher than the current level. So it is fair to expect an increase in the company’s share price in the near term.
P/S Ratio
Another key metric to note is the Price/Sales ratio. This approach compares a given stock’s price to its total sales, where a lower reading is generally considered better. Some people like this metric more than other value-focused ones because it looks at sales, something that is far harder to manipulate with accounting tricks than earnings.
Right now, Ecovyst has a P/S ratio of about 1.41. This is lower than the S&P 500 average, which comes in at 5.05 right now. Also, as we can see in the chart below, this is below the highs for this stock in particular over the past few years.
Image Source: Zacks Investment Research
If anything, ECVT is in the lower end of its range in the time period from a P/S metric, suggesting some level of undervalued trading—at least compared to historical norms.
Broad Value Outlook
In aggregate,Ecovyst currently has a Zacks Value Score of A, putting it into the top 20% of all stocks we cover from this look. This makes Ecovyst a solid choice for value investors.
What About the Stock Overall?
Though Ecovyst might be a good choice for value investors, there are plenty of other factors to consider before investing in this name. In particular, it is worth noting that the company has a Growth Score of F and a Momentum Score of C. This gives ECVT a Zacks VGM score — or its overarching fundamental grade — of A. (You can read more about the Zacks Style Scores here >>)
Meanwhile, the company’s recent earnings estimates have been encouraging. The current year has seen five estimates go higher in the past sixty days compared to three lower, while the full year 2021 estimate has seen three upward revision compared to one downward in the same time period.
This has had a positive impact on the consensus estimate though as the current year consensus estimate has risen by 19.7% in the past two months, while the full year 2021 estimate has improved by 1.4%. You can see the consensus estimate trend and recent price action for the stock in the chart below:
Despite this positive trend, the stock has a Zacks Rank #3 (Hold), which indicates expectations of in-line performance from the company in the near term.
Bottom Line
Ecovyst is an inspired choice for value investors, as it is hard to beat its incredible line up of statistics on this front.
However, with a sluggish industry rank (among bottom 13% of more than 250 industries) and a Zacks Rank #3, it is hard to get too excited about this company overall. In fact, over the past two years, the Zacks Technology industry has clearly underperformed the market at large, as you can see below:
Image Source: Zacks Investment Research
So, value investors might want to wait for industry trends to turn around in this name first, but once that happens, this stock could be a compelling pick.
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10 Top Penny Stocks To Watch This Week With Potential Biotech Catalysts
Last week we talked about biotech penny stocks with upcoming catalysts. That article received a lot of attention and for obvious reasons. As I explained, few industries will host companies that will tell you when they’ve got news coming. Biotech is one of these industries, and it makes for exciting market conditions. You’ve got the “buy the rumor, sell the news” trend to navigate.
PennyStocks.com – PennyStocks
Then there’s the market surprise where companies deliver results far surpassing what Wall Street initially thought. Something to remember is that there are so many different steps involved in taking a biotech company from pre-clinical to commercial stages. Each phase presents a milestone opportunity.
Biotech stocks are exciting to watch, especially around these potential milestone events. These are all things to keep in mind, whether it’s an industry presentation, new study data, or something else.
The Stock Market This Week
We’ve got several things to keep in mind in the stock market this week. It’s the final week of September, which means an end to one of the most challenging months in the stock market for 2021. It’s also the end of the 3rd quarter. Over the last 12 months, companies have reported exact dates and broad periods.
“By the end of Q3” is one of these broad timeframes. So today, we’re going to look at 10 top penny stocks presumed to have something to take notice of this week. Will these events become bullish or bearish catalysts? If you’re searching for penny stocks to buy, I’ll leave that final decision up to you. At the very least, you’re armed with information heading into the end of September and the end of Q3.
Zynerba is one of the company’s we discussed last week on a list of penny stocks analysts say to buy right now. H.C. Wainwright analyst Oren Livnat reiterated the firm’s Buy rating on ZYNE stock and a price target of $9. Other than that, there are other more scientific things to consider when looking at Zynerba. The company specializes in transdermal therapies for rare and near-rare disorders.
It made several presentations this month on its ZYN002 platform, trademarked as Zygel. This product is a transdermal gel administered to children with developmental and epileptic encephalopathy. Recent results of ongoing studies have demonstrated how Zygel can benefit patients even during longer-term time frames. Patients with Autism Spectrum Disorder who completed a 38-week treatment showed “statistically significant improvements” compared to baselines in the study.
What To Watch With ZYNE Stock This Week
As you’ll come to find, the Cantor Global Healthcare Conference will be a point of focus for many companies this week. The conference goes from September 27 – September 30. On September 27th, Zynerba’s CEO Armando Anido begins his presentation at 11:20 AM ET. Keep this in mind if ZYNE is on your list of penny stocks this week.
Verastem Oncology Inc.
Another one of the companies that we’ve frequently discussed this month is Verastem. Not only was it highlighted for bullish analyst sentiment, but it was also spotlighted for a biotech event last week. Verastem announced that study data in a combination of its VS-6766 and defactinib demonstrated potential in treating ovarian cancer. The company said that the median progression-free survival across all patients was 23 months.
In addition to these results, Verastem also announced a clinical collaboration agreement with Amgen (NASDAQ:AMGN), evaluating a combination of VS-6766 with Amgen’s sotorasib, trademarked as LUMAKRAS, in patients with non-small cell lung cancer. This trial is expected to begin by the end of the year. So that could be something to keep in mind later on during Q4.
What To Watch With VSTM Stock This Week
Similar to Zynerba, VSTM stock will be in focus this week as management presents at the Cantor Conference. September 27 will also be the date to keep in mind here. The company begins its presentation at 4 PM ET.
Lineage Cell Therapeutics
Similar to Rigel, the last year was a pivotal one for growth in Lineage Cell Therapeutics. Last September, shares of LCTX stock traded below $1. Heading into this week, they’re firmly trading above $2. Here’s what’s gone on with Lineage and why this week could be important for the company.
Lineage specializes in allogeneic cell therapies for things like dry age-related macular degeneration (AMD). Its OpRegen treatment is being studied for this indication in ongoing phase trials, having already demonstrated improvements in study patients. The company is also developing OPC1 for subacute spinal cord injuries and VAC2 to treat non-small cell lung cancer.
What To Watch With LCTX Stock This Week
Lineage is handling double-duty this week. The first date to markdown is September 27. Company CEO Brian Culley begins presenting at a fireside chat during the Cantor Healthcare conference at 4 PM ET. Later this week, updated interim results from its Phase 1/2a study of OpRegen® will be featured in a podium presentation at the 54th Annual Scientific Meeting of the Retina Society. This presentation begins on September 30 at 9:52 AM EDT.
Penny Stocks To Watch On September 28:
Rigel Pharmaceuticals Inc.
Despite September being a mixed month for the company’s shares, Rigel has experienced significant growth over the last year. This time in 2020, shares of RIGL stock were trading slightly higher than $2. Heading into this week, the stock is trading marginally lower than $4.
The biotech company develops small molecule drugs for treating hematologic disorders, cancer, and rare immune diseases. The company’s first FDA-approved product, TAVALISSE (fostamatinib disodium hexahydrate), is used in treating chronic immune thrombocytopenia. Fostamatinib is also being studied in several clinical trials for treating anemia as well as COVID-19. The latter has helped bring some of the “hype” factor into the mix this year, thanks to increased attention on COVID stocks.
Earlier this month, the results from a Phase 2 trial evaluating fostamatinib for hospitalized COVID patients were published in Clinical Infectious Diseases. Data showed that treatment with fostamatinib was well tolerated and associated with clinically meaningful improvement in outcomes of hospitalized patients.
What To Watch With RIGL Stock This Week
Once again, industry conferences are the focus. This week Rigel’s Raul Rodriguez presents a company overview at Cantors Global Healthcare Conference. Suppose RIGL stock is on your list, markdown September 28 at 4:40 PM ET. Rodriguez begins his presentation at that time.
Asensus Surgical Inc.
Shares of ASXC stock started the year strong. Since the start of April, the overall trend has been mostly sideways. There was a brief spike in June, but things have subsided. One of the things that continue holding investors’ interests is the company’s medical device platform. Asensus’ Intelligent Surgical Unit (ISU) was designed to increase surgeon control and streamline surgery experiences and outcomes. The company’s utilization of machine vision and augmented intelligence has brought a new layer of technology into the operating room.
Earlier this month, its ISU device received FDA 510(k) clearance to expand machine vision capabilities. This is used with the company’s Senhance Surgical System enabling digital laparoscopy.
What To Watch With ASXC Stock This Week
This week Asensus continues its industry presentation circuit. The 3rd and final presentation will be at, you guessed it, the Cantor Healthcare Conference. Company CEO Anthony Fernando and CFO Shameze Rampertab begin their presentation at 1:20 PM ET on September 28.
9 Meters Biopharma Inc.
The last few weeks for 9 Meters Biopharma have been strong. Shares of NMTR stock moved up from around $1 in mid-August to over $1.30 last week. Helping boost sentiment was a mix of more robust earnings results and new deals contributing to advancing the company’s treatment pipeline.
In particular, 9 Meters announced a collaboration with the European Biomedical Research Institute of Salerno, Italy (EBRIS). This was to study the company’s larazotide to treat multisystem inflammatory syndrome in children (MIS-C). Larazotide is also in Phase 3 clinical development for adults with celiac disease. EBRIS plans to initiate a Phase 2a study in MIS-C in Q4 2021.
Another facet of this story bringing interest to NMTR stock is analyst and insider sentiment. In September, Director Mark Sirgo and CFO Edward Sitar purchased a total of 88,529 between average prices of $1.22 and $1.36. Sirgo accounted for the bulk of that, with over 73,000 shares purchased at an average price of $1.36, bringing his directly controlled position to over 1.1 million shares. Analysts at BMO Capital are also bullish right now. The firm has an Outperform rating on the stock and a $5 price target.
What To Watch This Week With NMTR Stock
Similar to Asensus, 9 Meters is buttoning up a circuit of presentations this week. CEO John Temperato presents at Cantor’s Healthcare Conference on September 28, beginning at 4:40 PM ET.
Penny Stocks To Watch On September 30:
Arbutus Biopharma Corporation
Shares of Arbutus have been red hot over the last few months. Beginning in August, ABUS stock started its climb, benefiting from more robust sales results in the second quarter in addition to an upbeat outlook from management concerning Arbutus’ treatment pipeline.
William Collier, President and Chief Executive Officer of Arbutus, explained, “We had a productive second quarter, particularly in advancing our efforts to position AB-729 as a potential cornerstone therapy in future HBV combination regimens. Our recently announced proof-of-concept clinical collaborations with Vaccitech plc and Antios Therapeutics, Inc. to evaluate AB-729 with other agents reflects this objective, as does our planned Phase 2a clinical trial to evaluate AB-729 in combination with Peg-IFNα-2a.”
A lot of the focus has been on Arbutus versus Moderna, believe it or not. The two conflicted over Arbutus’s lipid formulations for nucleic acid delivery. Earlier this month, the European Patent Office said that its 069 patent related to lipid formulations was “Inventive” (valid). It was in agreement with the US Patent and Trademark Office, which granted a notice of allowance this month. Moderna is moving forward with an appeal set for a hearing next month. However, if Arbutus is correct, it could open the doors for eligibility to receive royalties from Moderna’s COVID-19 vaccine sales.
What To Watch With ABUS Stock This Week
The company presents at the Cantor Global Healthcare Conference that many others on this list of penny stocks will be in attendance this week. CEO William Collier will give the presentation beginning at 8:40 AM ET. So if ABUS stock is on your list right now, keep September 30th in mind.
Penny Stocks to Watch At The End of Q3:
CTI BioPharma Corp.
CTI Biopharma kicks off the section of this list of penny stocks that haven’t given specific dates. However, since this is the final week of the 3rd quarter, the countdown has begun for companies like CTI to deliver on their previously announced plans.
The company has focused its efforts on advancing its targeted treatment platform aimed at blood-related cancers. It targets patients with myelofibrosis and severe COVID-19 in response to the 2020/2021 pandemic. Its current pipeline treatment includes pacritinib for treating myelofibrosis, which has a New Drug Application under review by the FDA. There’s a Prescription Drug User Fee Act date of November 30th. So as the fourth quarter begins, that will be an important date to keep in mind. Considering that the company has already started commercialization activities, CTI appears optimistic about the FDA’s potential decision. However, as the saying goes, they won’t know till they know.
What To Watch With CTIC Stock This Week
This week could be all about COVID 19 for CTI Biopharma. In its second-quarter financial results and business update, management explained that they expect to deliver interim analysis from a Phase 3 PRE-VENT trial in hospitalized patients with severe COVID-19 this quarter.
ASLAN Pharmaceuticals
Another one of the “Q3 penny stocks to watch” is ASLAN Pharmaceuticals. The company focuses on treatments for immune diseases. It’s currently evaluating several treatment candidates. Its ASLAN004 targets atopic dermatitis, and its ASLAN003 focuses on autoimmune disease.
What To Watch With ASLN Stock This Week
In June, the company completed the recruitment of 27 patients into the expansion cohort of the double-blind placebo-controlled multiple ascending dose study. Topline data is expected at the end of this quarter, according to the company’s August 6th update. Something to take into consideration is that earlier this year, data from a single ascending dose study demonstrated that ASLAN004 has a favorable tolerability profile and potential as a different treatment method for atopic dermatitis. With the multiple ascending dose study yield a similar response?
Penny Stocks To Watch On October 1:
Precigen Inc.
On the higher end of the penny stock range, Precigen will be on the list of penny stocks to watch this week. But you’ll have to wait a few days for its potential catalyst date. Something to know about the company is that it’s worked diligently on advancing its gene and cell therapies with this year as an important one for the company.
Management elaborated on this in its latest quarterly business update. Helen Sabzevari, Ph.D., President, and CEO of Precigen, said, “We see 2021 as a pivotal year for the UltraCAR-T, ActoBiotics, and AdenoVerse platforms with significant new clinical data on our most advanced therapeutic candidates from these core therapeutic platforms.”
What To Watch With PGEN Stock This Week
ActoBiotics is also known as AG019 ActoBiotics, will be the focus this week. Additional data from its AG019 Phase 1b/2a clinical trial will be presented on October 1 at noon CET as an oral presentation at the European Association for the Study of Diabetes Meeting. The abstract entitled, “AG019 ActoBiotics as monotherapy or in association with teplizumab in recent-onset type 1 diabetes was safe and demonstrated encouraging metabolic and immunological effects” will be presented by Chantal Mathieu, MD, Ph.D., Professor of Medicine at the Katholieke Universiteit Leuven, Belgium. In addition, a clinical trial assessing the efficacy of prolonged treatment of oral AG019 is also planned.
Something to note is that positive topline data from the AG019 Phase 1b/2a clinical trial were reported earlier this year at the Federation of Clinical Immunology Societies Meeting. The primary endpoints of safety and tolerability for the Phase 1b AG019 monotherapy and the Phase 2a AG019 combination therapy were met. No serious adverse events were reported either.
Penny Stocks To Watch This Week
There are many biotech penny stocks to watch this week, including the ones mentioned in this article. Keep in mind that just because the company has previously announced a date, that doesn’t mean information released will be positive (or negative, for that matter). However, what it does mean is that there could be new information to factor in. With that can come plenty of volatility and, if favorable, opportunities to capitalize. Will that be the case this week?
