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The Zacks Conglomerates sector in the USA looks like an interesting area to be selectively invested in. Below, I provide you a summary table.
It lists the top Zacks Conglomerate stocks by (a) Market Capitalization (b) Largest 1M Change in F1 Earnings Estimates (the Zacks Rank building block), and (c) the Overall Number of Covering Analysts.
Image Source: Zacks Investment Research
In terms of earnings fundamentals for the Conglomerates? First, review these Revenue F12 Charts, for the Top 30 Conglomerates Stocks by Market Capitalization:
Image Source: Zacks Investment Research
Then, review these Net Margin TTM % Charts for the Top 24 Stocks by the Maximum Number of Covering Analysts for the Conglomerates Sector:
Image Source: Zacks Investment Research
Finally, look through the Zacks Share Price, EPS Consensus and EPS Surprise Charts for eight major Conglomerate large cap stocks:
Image Source: Zacks Investment Research
Note: A number of Conglomerate stocks are international firms. An example—
Bunzl Plc (BZLFY - Free Report) : This is a U.K. company that operates in two business areas; Outsourcing Services and Filtrona.
As an international company Bunzl has developed sound partnerships with both suppliers and customers by providing outsourcing solutions and customer service oriented distribution and light manufacture, primarily of plastic and paper based products.
II. The Zacks September 2024 Sector/Industry/Company Telescope
The August 30th, 2024 Zacks Industry Ranks showed a stable cyclical set-up.
Early fall ranks showed two Very Attractive sectors: Industrials and Utilities. Utilities get a strong bid this year, due to “AI” data center energy use growth.
The fresh SEP ranks showed four Attractive sectors: Info Tech, Financials, Health Care and Communication Services.
Zacks Industry Ranks showed just two Market Weight sectors: Consumer Discretionary and Materials.
Energy stayed Unattractive.
At the back, Consumer Staples.
(1) Industrials stayed Very Attractive. Business Products, Construction - Building Services, and Aerospace keep looking strong.
Image: Bigstock
Conglomerates: An Overlooked Stock Group
The following is an excerpt from Zacks Chief Strategist John Blank’s full Sep Market Strategy report To access the full PDF, click here.
I. Introduction
The Zacks Conglomerates sector in the USA looks like an interesting area to be selectively invested in. Below, I provide you a summary table.
It lists the top Zacks Conglomerate stocks by (a) Market Capitalization (b) Largest 1M Change in F1 Earnings Estimates (the Zacks Rank building block), and (c) the Overall Number of Covering Analysts.
Image Source: Zacks Investment Research
In terms of earnings fundamentals for the Conglomerates? First, review these Revenue F12 Charts, for the Top 30 Conglomerates Stocks by Market Capitalization:
Image Source: Zacks Investment Research
Then, review these Net Margin TTM % Charts for the Top 24 Stocks by the Maximum Number of Covering Analysts for the Conglomerates Sector:
Image Source: Zacks Investment Research
Finally, look through the Zacks Share Price, EPS Consensus and EPS Surprise Charts for eight major Conglomerate large cap stocks:
Image Source: Zacks Investment Research
Note: A number of Conglomerate stocks are international firms. An example—
Bunzl Plc (BZLFY - Free Report) : This is a U.K. company that operates in two business areas; Outsourcing Services and Filtrona.
As an international company Bunzl has developed sound partnerships with both suppliers and customers by providing outsourcing solutions and customer service oriented distribution and light manufacture, primarily of plastic and paper based products.
II. The Zacks September 2024 Sector/Industry/Company Telescope
The August 30th, 2024 Zacks Industry Ranks showed a stable cyclical set-up.
Early fall ranks showed two Very Attractive sectors: Industrials and Utilities. Utilities get a strong bid this year, due to “AI” data center energy use growth.
The fresh SEP ranks showed four Attractive sectors: Info Tech, Financials, Health Care and Communication Services.
Zacks Industry Ranks showed just two Market Weight sectors: Consumer Discretionary and Materials.
Energy stayed Unattractive.
At the back, Consumer Staples.
(1) Industrials stayed Very Attractive. Business Products, Construction - Building Services, and Aerospace keep looking strong.
Zacks #1 Rank (STRONG BUY): Trane Technologies (TT - Free Report)
(2) Utilities stayed Very Attractive. Utility - Telephone and Utility-Water Supply looked best.
Zacks #1 Rank (STRONG BUY): National Fuel Gas Company (NFG - Free Report)
(3) Info Tech fell to Attractive from Very Attractive. Misc. Tech and Computer Software - Services led here.
Zacks #1 Rank (STRONG BUY): Trend Micro (TMICY - Free Report)
(4) Financials stayed Attractive. Banks-Major and Insurance looked best.
(5) Health Care stayed Attractive. Medical Care looked best.
(6) Communications Services rose to Attractive from Market Weight. Telco Equipment was the best, again.
(7) Consumer Discretionary fell to Market Weight from Attractive. Publishing and Home Appliance-Furnishing looked good.
(8) Materials stayed Market Weight. Containers & Glass looked strong, again.
(9) Energy stayed Unattractive. Coal and Oil/Gas Pipelines looked the best.
(10) Consumer Staples fell to Very Unattractive from Unattractive. Tobacco and Soaps & Cosmetics were the strongest groups.
III. Conclusion
In an equity strategy report, I have found value in presenting overlooked or out-of-favor sectors, now and again.
A selective pick, on a little-known Conglomerate industry name, yet with an excellent acquisitions track record, can be found here.
Diamonds are found in a lot of dirt. So, get in there and start digging.
That’s it for me.
Enjoy the rest of my SEP ’24 Zacks Market Strategy report.
Warm regards,
John Blank, PhD.
Zacks Chief Equity Strategist and Economist