We use cookies to understand how you use our site and to improve your experience. This includes personalizing content and advertising. To learn more, click here. By continuing to use our site, you accept our use of cookies, revised Privacy Policy and Terms of Service.
You are being directed to ZacksTrade, a division of LBMZ Securities and licensed broker-dealer. ZacksTrade and Zacks.com are separate companies. The web link between the two companies is not a solicitation or offer to invest in a particular security or type of security. ZacksTrade does not endorse or adopt any particular investment strategy, any analyst opinion/rating/report or any approach to evaluating individual securities.
If you wish to go to ZacksTrade, click OK. If you do not, click Cancel.
The Zacks Analyst Blog Highlights: Aon, Marsh & McLennan, Equifax and First American Financial
Read MoreHide Full Article
For Immediate Release
Chicago, IL – August 31, 2021 – 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: Aon Plc (AON - Free Report) , Marsh & McLennan Companies, Inc. (MMC - Free Report) , Equifax Inc. (EFX - Free Report) and First American Financial Corporation (FAF - Free Report) .
Here are highlights from Monday’s Analyst Blog:
3 Top-Ranked Stocks at 52-Week Highs and Still a Buy
The stock market has been going from strength to strength with the S&P 500 rising 22% year to date and NASDAQ rallying 19% so far. The steady growth rate came on the back of the reopening of economic activities, growing consumer confidence and an impressive earnings performance from corporates which continue to be the driving forces of the market.
Last week, markets gained following the Jackson Hole annual symposium where the Federal Reserve chairman Jerome Powell said that it may start to taper back its bond-buying program this year. Markets welcomed this comment from the Fed that the bond-tapering exercise does mean that interest rates will be raised.
The low-interest rate environment that is here to stay will further boost growth. In fact, the surging growth rate of the markets have pushed up valuations to historic highs. Expensive valuations make the investment scenario difficult because a good investment made at an attractive price is the key mantra to reaping remarkable returns.
However, for long term investors, there is always an opportunity to buy. Stocks with solid business prospects and good management have been gaining this year to date and already hit a 52-week high. Nevertheless, there is still enough potential left in many of these stocks to scale higher. Here we pick some stocks that currently carry a Zacks Rank #2 (Buy) and also reached a 52-week high and are still strong bets for your portfolio.
AON hit its 52-week high of $285.79 on the last trading day and clocked a growth of 42.5% in a year's time. This insurance broker caught the attention of the legendary investor Warren Buffett who made an additional investment in the company during the second quarter.
The insurance broker holds a niche position in its industry and is worth considering for exposure to the diverse lines within the insurance sector. It ranks second among the world's largest publicly-traded insurance brokers with the first place held by Marsh & McLennan. Its revenues have been increasing since 2017 on strong insurance premiums and an established market across several lines. This growth trend is expected to continue for Aon.
A ramped-up economic activity will continue to fuel demand for property and casualty insurance, thereby driving commissions and fees generated by its Commercial Risk Solutions, Reinsurance Solutions, and Data and Analytic Service lines.
Its sturdy financial flexibility underscored by consistent cash generation and a disciplined capital management strategy provides it with ample scope to access the capital markets, reinvest in the business and capitalize on growth opportunities.
Analysts grew bullish on the stock and revised earnings estimates 4.4% and 3.8% upward, respectively, for 2021 and 2022 over the past 30 days. For the current year, the Zacks Consensus Estimate for earnings and revenues is pegged at 18.76% and 9.97% each.
Equifax touched the 52-week high of $269.32 on the last trading day and has soared 42.5% in a year's time.
It is a global data, analytics and technology company. It provides information solutions and human resources business-process outsourcing services for businesses, governments and consumers. Its services are based on comprehensive databases of consumer and business information
It uses advanced statistical techniques and proprietary tools to analyze all available data, creating customized insights, decision-making solutions and processing services. This helps customers understand, manage and protect their clients' information and make more informed financial decisions. The company is extremely diversified with regards to client base, product and services, and geography, which proved extremely beneficial in adding business stability for the company.
In fact the same is visible in its impressive operating performance, marked by annual earnings and revenue growth since 2010 and an earnings beat in 27 out of the past 28 quarters (missing estimates in only one). This stellar growth rate is also attributed to numerous acquisitions and joint ventures. Synergies from acquisitions along with continued general consumer credit activity, product innovation, initiatives to foster enterprise growth and efficient business executions will continue to drive Equifax's revenues over the long run.
Analysts are upbeat about the stock and have moved earnings estimates 6.4% and 5.6% north each for 2021 and 2022 over the past 30 days.
For the current year, the Zacks Consensus Estimate for earnings and revenues stands at 6.89% and 16.6%, respectively.
First American Financial Corp. is a leader in the Title and Settlement Services Industry, holding 23.3% of the Title market share. A general improvement in the economy provides a tailwind to its business. It is primarily focused on the real-estate market while 92% of its revenues come from providing title insurance.
In the last reported quarter, the company's bottom line beat estimates by 30.7% for the third consecutive quarter. Title segment revenues were up 44% year over year owing to strength in the purchase and commercial markets. This year, the company expects to achieve a record in its commercial business.
A hot real estate market works in favor of the company, given rising demand for its title insurance products. The housing purchase market saw a V-shaped recovery, led by low mortgage rates, favorable demographics and an appreciation in the home price.
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.
See More Zacks Research for These Tickers
Normally $25 each - click below to receive one report FREE:
Image: Bigstock
The Zacks Analyst Blog Highlights: Aon, Marsh & McLennan, Equifax and First American Financial
For Immediate Release
Chicago, IL – August 31, 2021 – 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: Aon Plc (AON - Free Report) , Marsh & McLennan Companies, Inc. (MMC - Free Report) , Equifax Inc. (EFX - Free Report) and First American Financial Corporation (FAF - Free Report) .
Here are highlights from Monday’s Analyst Blog:
3 Top-Ranked Stocks at 52-Week Highs and Still a Buy
The stock market has been going from strength to strength with the S&P 500 rising 22% year to date and NASDAQ rallying 19% so far. The steady growth rate came on the back of the reopening of economic activities, growing consumer confidence and an impressive earnings performance from corporates which continue to be the driving forces of the market.
Last week, markets gained following the Jackson Hole annual symposium where the Federal Reserve chairman Jerome Powell said that it may start to taper back its bond-buying program this year. Markets welcomed this comment from the Fed that the bond-tapering exercise does mean that interest rates will be raised.
The low-interest rate environment that is here to stay will further boost growth. In fact, the surging growth rate of the markets have pushed up valuations to historic highs. Expensive valuations make the investment scenario difficult because a good investment made at an attractive price is the key mantra to reaping remarkable returns.
However, for long term investors, there is always an opportunity to buy. Stocks with solid business prospects and good management have been gaining this year to date and already hit a 52-week high. Nevertheless, there is still enough potential left in many of these stocks to scale higher. Here we pick some stocks that currently carry a Zacks Rank #2 (Buy) and also reached a 52-week high and are still strong bets for your portfolio.
You can see the complete list of today's Zacks #1 Rank (Strong Buy) stocks here.
Stock Picks
AON hit its 52-week high of $285.79 on the last trading day and clocked a growth of 42.5% in a year's time. This insurance broker caught the attention of the legendary investor Warren Buffett who made an additional investment in the company during the second quarter.
The insurance broker holds a niche position in its industry and is worth considering for exposure to the diverse lines within the insurance sector. It ranks second among the world's largest publicly-traded insurance brokers with the first place held by Marsh & McLennan. Its revenues have been increasing since 2017 on strong insurance premiums and an established market across several lines. This growth trend is expected to continue for Aon.
A ramped-up economic activity will continue to fuel demand for property and casualty insurance, thereby driving commissions and fees generated by its Commercial Risk Solutions, Reinsurance Solutions, and Data and Analytic Service lines.
Its sturdy financial flexibility underscored by consistent cash generation and a disciplined capital management strategy provides it with ample scope to access the capital markets, reinvest in the business and capitalize on growth opportunities.
Analysts grew bullish on the stock and revised earnings estimates 4.4% and 3.8% upward, respectively, for 2021 and 2022 over the past 30 days. For the current year, the Zacks Consensus Estimate for earnings and revenues is pegged at 18.76% and 9.97% each.
Equifax touched the 52-week high of $269.32 on the last trading day and has soared 42.5% in a year's time.
It is a global data, analytics and technology company. It provides information solutions and human resources business-process outsourcing services for businesses, governments and consumers. Its services are based on comprehensive databases of consumer and business information
It uses advanced statistical techniques and proprietary tools to analyze all available data, creating customized insights, decision-making solutions and processing services. This helps customers understand, manage and protect their clients' information and make more informed financial decisions. The company is extremely diversified with regards to client base, product and services, and geography, which proved extremely beneficial in adding business stability for the company.
In fact the same is visible in its impressive operating performance, marked by annual earnings and revenue growth since 2010 and an earnings beat in 27 out of the past 28 quarters (missing estimates in only one). This stellar growth rate is also attributed to numerous acquisitions and joint ventures. Synergies from acquisitions along with continued general consumer credit activity, product innovation, initiatives to foster enterprise growth and efficient business executions will continue to drive Equifax's revenues over the long run.
Analysts are upbeat about the stock and have moved earnings estimates 6.4% and 5.6% north each for 2021 and 2022 over the past 30 days.
For the current year, the Zacks Consensus Estimate for earnings and revenues stands at 6.89% and 16.6%, respectively.
First American Financial Corp. is a leader in the Title and Settlement Services Industry, holding 23.3% of the Title market share. A general improvement in the economy provides a tailwind to its business. It is primarily focused on the real-estate market while 92% of its revenues come from providing title insurance.
In the last reported quarter, the company's bottom line beat estimates by 30.7% for the third consecutive quarter. Title segment revenues were up 44% year over year owing to strength in the purchase and commercial markets. This year, the company expects to achieve a record in its commercial business.
A hot real estate market works in favor of the company, given rising demand for its title insurance products. The housing purchase market saw a V-shaped recovery, led by low mortgage rates, favorable demographics and an appreciation in the home price.
Media Contact
Zacks Investment Research
800-767-3771 ext. 9339
support@zacks.com
https://www.zacks.com
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.