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The Zacks Analyst Blog Highlights: Bunge, Cabot Corp, International Paper, Neenah and Schnitzer Steel
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For Immediate Release
Chicago, IL – December 10, 2020 – Zacks.com announces the list of stocks featured in the Analyst Blog. Every day the Zacks Equity Research analysts discuss the latest news and events impacting stocks and the financial markets. Stocks recently featured in the blog include: Bunge Ltd. (BG - Free Report) , Cabot Corp. (CBT - Free Report) , International Paper Co. (IP - Free Report) , Neenah, Inc. and Schnitzer Steel Industries, Inc. .
Here are highlights from Wednesday’s Analyst Blog:
5 Materials Stocks to Make the Most of Economic Recovery
Promising news with regards to the COVID-19 vaccine and the expectation of another fiscal stimulus bode well for economic recovery. These, in turn, will allow the materials sector to flourish as it is perceived as cyclical in nature. This means that its performance is related to the condition of the economy.
In the early part of the year, when the pandemic forced the United States to go into a lockdown, sectors that depend on the functioning of the economy suffered a setback. Nonetheless, the economy seems to be at the cusp of a turnaround now.
Per the latest development on the vaccine front, the FDA said that the candidate of Pfizer and BioNTech have tested highly effective with no specific safety concerns, as mentioned in a CNBC article. The article further mentioned that data from the vaccine trials was also consistent with the recommendation put forward for authorization of emergency use. Furthermore, the article mentioned that the U.K. started rolling out the vaccine on Dec 8. Separately, the chief scientist of Johnson & Johnson, Paul Stoffels, stated that the company might get phase 3 clinical trial results of its vaccine candidate by January, which will be much earlier than expected, as quoted in a Fox News article.
Moreover, a fresh round of fiscal relief will pep up the economy. Notably, House Speaker Nancy Pelosi and Senate Democratic Leader Chuck Schumer, in a joint statement, referred to a $916 billion COVID-19 relief bill based on the bipartisan framework, signed off by Senate Majority Leader Mitch McConnell as “progress.” However, they also noted that the said bill shouldn’t obstruct “the bipartisan Congressional talks that are underway.”
Meanwhile, the U.S. economy is also expected to grow at a steady pace in the fourth quarter. Gross domestic product (“GDP”) is expected to grow at an annual rate of 2.2% in the fourth quarter, per an estimate by the Conference Board.
Such positive developments are sure to aid the basic materials sector going forward. In fact, the Materials Select Sector SPDR (XLB) was already one of the best performing sectors in November, gaining 12.4%.
5 Top Materials Stocks to Buy Now
The economy is at the brink of a turnaround, owing to progress with regards to the COVID-19 vaccine as well as hopes of a new fiscal stimulus. This will allow economic activities, halted by social distancing and stay-at-home orders, to resume. Moreover, the fourth-quarter GDP is expected to indicate growth. Hence, this is a prudent time to invest in basic materials stocks. We have selected five such stocks that carry a Zacks Rank #1 (Strong Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.
Bunge operates as an agribusiness and food company in the United States. The Zacks Consensus Estimate for its current-year earnings increased 96.1% over the past 60 days. The company’s expected earnings growth rate for the current year is 43%.
Cabot Corp. operates as a specialty chemicals and performance materials company in the United States. The Zacks Consensus Estimate for its current-year earnings increased 21.4% over the past 60 days. The company’s expected earnings growth rate for the current year is 58.2%.
International Paper operates as a paper and packaging company primarily in the United States. The Zacks Consensus Estimate for its current-year earnings increased 16.7% over the past 60 days. The company’s expected earnings growth rate for next year is 20.6%.
Neenah produces and sells technical products, and fine paper and packaging products in the United States. The Zacks Consensus Estimate for its current-year earnings increased 42.2% over the past 60 days. The company’s expected earnings growth rate for next year is 40.7%.
Schnitzer Steel Industries recycles ferrous and nonferrous scrap metals; and manufactures finished steel products in the United States. The Zacks Consensus Estimate for its current-year earnings increased 16.3% over the past 60 days. The company’s expected earnings growth rate for the current year is more than 100%.
More Stock News: This Is Bigger than the iPhone!
It could become the mother of all technological revolutions. Apple sold a mere 1 billion iPhones in 10 years but a new breakthrough is expected to generate more than 27 billion devices in just 3 years, creating a $1.7 trillion market.
Zacks has just released a Special Report that spotlights this fast-emerging phenomenon and 6 tickers for taking advantage of it. If you don't buy now, you may kick yourself in 2021.
Past performance is no guarantee of future results. Inherent in any investment is the potential for loss. This material is being provided for informational purposes only and nothing herein constitutes investment, legal, accounting or tax advice, or a recommendation to buy, sell or hold a security. No recommendation or advice is being given as to whether any investment is suitable for a particular investor. It should not be assumed that any investments in securities, companies, sectors or markets identified and described were or will be profitable. All information is current as of the date of herein and is subject to change without notice. Any views or opinions expressed may not reflect those of the firm as a whole. Zacks Investment Research does not engage in investment banking, market making or asset management activities of any securities. These returns are from hypothetical portfolios consisting of stocks with Zacks Rank = 1 that were rebalanced monthly with zero transaction costs. These are not the returns of actual portfolios of stocks. The S&P 500 is an unmanaged index. Visit https://www.zacks.com/performance for information about the performance numbers displayed in this press release.
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The Zacks Analyst Blog Highlights: Bunge, Cabot Corp, International Paper, Neenah and Schnitzer Steel
For Immediate Release
Chicago, IL – December 10, 2020 – Zacks.com announces the list of stocks featured in the Analyst Blog. Every day the Zacks Equity Research analysts discuss the latest news and events impacting stocks and the financial markets. Stocks recently featured in the blog include: Bunge Ltd. (BG - Free Report) , Cabot Corp. (CBT - Free Report) , International Paper Co. (IP - Free Report) , Neenah, Inc. and Schnitzer Steel Industries, Inc. .
Here are highlights from Wednesday’s Analyst Blog:
5 Materials Stocks to Make the Most of Economic Recovery
Promising news with regards to the COVID-19 vaccine and the expectation of another fiscal stimulus bode well for economic recovery. These, in turn, will allow the materials sector to flourish as it is perceived as cyclical in nature. This means that its performance is related to the condition of the economy.
In the early part of the year, when the pandemic forced the United States to go into a lockdown, sectors that depend on the functioning of the economy suffered a setback. Nonetheless, the economy seems to be at the cusp of a turnaround now.
Per the latest development on the vaccine front, the FDA said that the candidate of Pfizer and BioNTech have tested highly effective with no specific safety concerns, as mentioned in a CNBC article. The article further mentioned that data from the vaccine trials was also consistent with the recommendation put forward for authorization of emergency use. Furthermore, the article mentioned that the U.K. started rolling out the vaccine on Dec 8. Separately, the chief scientist of Johnson & Johnson, Paul Stoffels, stated that the company might get phase 3 clinical trial results of its vaccine candidate by January, which will be much earlier than expected, as quoted in a Fox News article.
Moreover, a fresh round of fiscal relief will pep up the economy. Notably, House Speaker Nancy Pelosi and Senate Democratic Leader Chuck Schumer, in a joint statement, referred to a $916 billion COVID-19 relief bill based on the bipartisan framework, signed off by Senate Majority Leader Mitch McConnell as “progress.” However, they also noted that the said bill shouldn’t obstruct “the bipartisan Congressional talks that are underway.”
Meanwhile, the U.S. economy is also expected to grow at a steady pace in the fourth quarter. Gross domestic product (“GDP”) is expected to grow at an annual rate of 2.2% in the fourth quarter, per an estimate by the Conference Board.
Such positive developments are sure to aid the basic materials sector going forward. In fact, the Materials Select Sector SPDR (XLB) was already one of the best performing sectors in November, gaining 12.4%.
5 Top Materials Stocks to Buy Now
The economy is at the brink of a turnaround, owing to progress with regards to the COVID-19 vaccine as well as hopes of a new fiscal stimulus. This will allow economic activities, halted by social distancing and stay-at-home orders, to resume. Moreover, the fourth-quarter GDP is expected to indicate growth. Hence, this is a prudent time to invest in basic materials stocks. We have selected five such stocks that carry a Zacks Rank #1 (Strong Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.
Bunge operates as an agribusiness and food company in the United States. The Zacks Consensus Estimate for its current-year earnings increased 96.1% over the past 60 days. The company’s expected earnings growth rate for the current year is 43%.
Cabot Corp. operates as a specialty chemicals and performance materials company in the United States. The Zacks Consensus Estimate for its current-year earnings increased 21.4% over the past 60 days. The company’s expected earnings growth rate for the current year is 58.2%.
International Paper operates as a paper and packaging company primarily in the United States. The Zacks Consensus Estimate for its current-year earnings increased 16.7% over the past 60 days. The company’s expected earnings growth rate for next year is 20.6%.
Neenah produces and sells technical products, and fine paper and packaging products in the United States. The Zacks Consensus Estimate for its current-year earnings increased 42.2% over the past 60 days. The company’s expected earnings growth rate for next year is 40.7%.
Schnitzer Steel Industries recycles ferrous and nonferrous scrap metals; and manufactures finished steel products in the United States. The Zacks Consensus Estimate for its current-year earnings increased 16.3% over the past 60 days. The company’s expected earnings growth rate for the current year is more than 100%.
More Stock News: This Is Bigger than the iPhone!
It could become the mother of all technological revolutions. Apple sold a mere 1 billion iPhones in 10 years but a new breakthrough is expected to generate more than 27 billion devices in just 3 years, creating a $1.7 trillion market.
Zacks has just released a Special Report that spotlights this fast-emerging phenomenon and 6 tickers for taking advantage of it. If you don't buy now, you may kick yourself in 2021.
Click here for the 6 trades >>
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Past performance is no guarantee of future results. Inherent in any investment is the potential for loss. This material is being provided for informational purposes only and nothing herein constitutes investment, legal, accounting or tax advice, or a recommendation to buy, sell or hold a security. No recommendation or advice is being given as to whether any investment is suitable for a particular investor. It should not be assumed that any investments in securities, companies, sectors or markets identified and described were or will be profitable. All information is current as of the date of herein and is subject to change without notice. Any views or opinions expressed may not reflect those of the firm as a whole. Zacks Investment Research does not engage in investment banking, market making or asset management activities of any securities. These returns are from hypothetical portfolios consisting of stocks with Zacks Rank = 1 that were rebalanced monthly with zero transaction costs. These are not the returns of actual portfolios of stocks. The S&P 500 is an unmanaged index. Visit https://www.zacks.com/performance for information about the performance numbers displayed in this press release.