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The Zacks Analyst Blog Highlights SilverBow Resources, Amalgamated Financial, PHX Minerals, Richardson Electronics and Aerie Pharmaceuticals
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For Immediate Release
Chicago, IL – October 24, 2022 – 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: SilverBow Resources Inc. , Amalgamated Financial Corp. (AMAL - Free Report) , PHX Minerals Inc. (PHX - Free Report) , Richardson Electronics Ltd. (RELL - Free Report) and Aerie Pharmaceuticals Inc. .
Here are highlights from Friday’s Analyst Blog:
5 Small-Cap Gems Flying High Despite Market Bloodbath
Wall Street has been reeling under severe volatility since the beginning of 2022 after finishing impressively in the last two coronavirus-ridden years. Small business operators suffered the most during the pandemic. The nightmare of these companies continues this year too owing to record-high inflation, a higher interest rate regime and the ongoing Russia-Ukraine war.
Despite various hurdles, several small-cap (market capital < $1 billion) stocks are flying high this year. Investment in these stocks with a favorable Zacks Rank is likely to strengthen one's portfolio in an otherwise tough environment. Five of them are — SilverBow Resources Inc., Amalgamated Financial Corp., PHX Minerals Inc., Richardson Electronics Ltd. and Aerie Pharmaceuticals Inc..
Immediate Concerns
The major issue for U.S. small businesses is galloping inflation, which is currently at its 40-year high. The global breakdown of supply-chain systems due to the pandemic and shortage of manpower has hurt these companies the most. Small businesses are unable to pass on the total hike in input costs to their final products, deteriorating their financial conditions.
China is yet to recover fully from the resurgence of COVID-19. Moreover, the prolonged war between Russia and Ukraine has made inflation the worst. Prices of commodities, especially food, remain elevated due to the war.
Year to date, the three major stock indexes — the Dow, the S&P 500 and the Nasdaq Composite — have plummeted 16.5%, 23.1% and 32.2%, respectively. The small-cap-centric benchmark — the Russell 2000 — has plunged 25%. Another small-cap benchmark — the S&P 600 — has tumbled 22.3%.
The Fed has already hiked the benchmark lending rate by 3% in 2022. Per the Fed's latest projection of interest rate movement in the September FOMC meeting, it will hike interest rate by 75 basis points in November and 50 basis points in December. The central bank is likely to hike the benchmark lending rate by 50 basis points in 2023. The first rate cut is expected not before 2024.
Small businesses operate on a thin profit margin and most new businesses take time to achieve profitability. Moreover, these companies have no geographical diversification and depend on U.S. consumers. Therefore, a recession in 2023 is likely to hurt small industries the most.
5 High-Flying Small Caps Despite Hurdles
We have narrowed our search to five small cap stocks that have provided more than 35% returns year to date, in contrast to the southbound movement of all major indexes. These stocks have positive growth potential for 2022 and have seen solid earnings estimate revisions in the last 60 days. Finally, each of our picks carries a Zacks Rank #1 (Strong Buy). You can see the complete list of today's Zacks #1 Rank stocks here.
SilverBow Resources is engaged in the exploration, development and production of oil and natural gas properties. SBOW's primary projects include the Eagle Ford wells, Burr Ferry, South Bearhead Creek and Lake Washington fields. SilverBow Resources Inc.
SilverBow Resources has expected earnings growth of 56.5% for the current year. The Zacks Consensus Estimate for its current-year earnings has improved 11.9% over the last 30 days. The stock price has surged 40.5% year to date.
Amalgamated Financial operates as the bank holding company for Amalgamated Bank that provides commercial and retail banking, investment management, and trust and custody services for commercial and retail customers in the United States.
AMAL accepts various deposit products, including non-interest bearing accounts, interest-bearing demand products, savings accounts, money market accounts, NOW accounts, and certificates of deposit.
Amalgamated Financial has expected earnings growth of 44.2% for the current year. The Zacks Consensus Estimate for its current-year earnings has improved 1.2% over the last 30 days. The stock price has advanced 37.5% year to date.
PHX Minerals operates as a natural gas and oil mineral company in the United States. PHX produces and sells natural gas, crude oil, and natural gas liquids. Its principal properties are located in Oklahoma, Texas, Louisiana, North Dakota, and Arkansas.
PHX Minerals has expected earnings growth of more than 100% for the current year (ending September 2023). The Zacks Consensus Estimate for its current-year earnings has improved 6.5% over the last 30 days. The stock price has jumped 69.6% year to date.
Richardson Electronics is a global provider of Engineered Solutions, serving the RF, Wireless & Power Conversion; Electron Device; Security; and Display Systems markets. RELL delivers engineered solutions for its customers' needs through product manufacturing, systems integration, prototype design and manufacture, testing and logistics.
Richardson Electronics l has expected earnings growth of 28.5% for the current year (ending May 2023). The Zacks Consensus Estimate for its current-year earnings has improved 1.6% over the last seven days. The stock price has climbed 64.4% year to date.
Aerie Pharmaceuticals is currently set to be acquired by Alcon Pharmaceuticals. AERI's ophthalmology drugs, Rhopressa and Rocklatan, are gaining traction slowly and steadily. Their approval in additional geographies will aid overall sales.
Aerie Pharmaceuticals' progress with the other ophthalmology candidates in its pipeline has been impressive so far and successful development of the same will boost its portfolio. Strategic buyouts bolstered the pipeline with promising candidates. AERI's retina programs continue to advance.
Aerie Pharmaceuticals has expected earnings growth of 47.3% for next year. The Zacks Consensus Estimate for its next-year earnings has improved 5% over the last 60 days. The stock price has soared 116.5% year to date.
Why Haven't You Looked at Zacks' Top Stocks?
Our 5 best-performing strategies have blown away the S&P's impressive +28.8% gain in 2021. Amazingly, they soared +40.3%, +48.2%, +67.6%, +94.4%, and +95.3%. Today you can access their live picks without cost or obligation.
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 SilverBow Resources, Amalgamated Financial, PHX Minerals, Richardson Electronics and Aerie Pharmaceuticals
For Immediate Release
Chicago, IL – October 24, 2022 – 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: SilverBow Resources Inc. , Amalgamated Financial Corp. (AMAL - Free Report) , PHX Minerals Inc. (PHX - Free Report) , Richardson Electronics Ltd. (RELL - Free Report) and Aerie Pharmaceuticals Inc. .
Here are highlights from Friday’s Analyst Blog:
5 Small-Cap Gems Flying High Despite Market Bloodbath
Wall Street has been reeling under severe volatility since the beginning of 2022 after finishing impressively in the last two coronavirus-ridden years. Small business operators suffered the most during the pandemic. The nightmare of these companies continues this year too owing to record-high inflation, a higher interest rate regime and the ongoing Russia-Ukraine war.
Despite various hurdles, several small-cap (market capital < $1 billion) stocks are flying high this year. Investment in these stocks with a favorable Zacks Rank is likely to strengthen one's portfolio in an otherwise tough environment. Five of them are — SilverBow Resources Inc., Amalgamated Financial Corp., PHX Minerals Inc., Richardson Electronics Ltd. and Aerie Pharmaceuticals Inc..
Immediate Concerns
The major issue for U.S. small businesses is galloping inflation, which is currently at its 40-year high. The global breakdown of supply-chain systems due to the pandemic and shortage of manpower has hurt these companies the most. Small businesses are unable to pass on the total hike in input costs to their final products, deteriorating their financial conditions.
China is yet to recover fully from the resurgence of COVID-19. Moreover, the prolonged war between Russia and Ukraine has made inflation the worst. Prices of commodities, especially food, remain elevated due to the war.
Year to date, the three major stock indexes — the Dow, the S&P 500 and the Nasdaq Composite — have plummeted 16.5%, 23.1% and 32.2%, respectively. The small-cap-centric benchmark — the Russell 2000 — has plunged 25%. Another small-cap benchmark — the S&P 600 — has tumbled 22.3%.
The Fed has already hiked the benchmark lending rate by 3% in 2022. Per the Fed's latest projection of interest rate movement in the September FOMC meeting, it will hike interest rate by 75 basis points in November and 50 basis points in December. The central bank is likely to hike the benchmark lending rate by 50 basis points in 2023. The first rate cut is expected not before 2024.
Small businesses operate on a thin profit margin and most new businesses take time to achieve profitability. Moreover, these companies have no geographical diversification and depend on U.S. consumers. Therefore, a recession in 2023 is likely to hurt small industries the most.
5 High-Flying Small Caps Despite Hurdles
We have narrowed our search to five small cap stocks that have provided more than 35% returns year to date, in contrast to the southbound movement of all major indexes. These stocks have positive growth potential for 2022 and have seen solid earnings estimate revisions in the last 60 days. Finally, each of our picks carries a Zacks Rank #1 (Strong Buy). You can see the complete list of today's Zacks #1 Rank stocks here.
SilverBow Resources is engaged in the exploration, development and production of oil and natural gas properties. SBOW's primary projects include the Eagle Ford wells, Burr Ferry, South Bearhead Creek and Lake Washington fields. SilverBow Resources Inc.
SilverBow Resources has expected earnings growth of 56.5% for the current year. The Zacks Consensus Estimate for its current-year earnings has improved 11.9% over the last 30 days. The stock price has surged 40.5% year to date.
Amalgamated Financial operates as the bank holding company for Amalgamated Bank that provides commercial and retail banking, investment management, and trust and custody services for commercial and retail customers in the United States.
AMAL accepts various deposit products, including non-interest bearing accounts, interest-bearing demand products, savings accounts, money market accounts, NOW accounts, and certificates of deposit.
Amalgamated Financial has expected earnings growth of 44.2% for the current year. The Zacks Consensus Estimate for its current-year earnings has improved 1.2% over the last 30 days. The stock price has advanced 37.5% year to date.
PHX Minerals operates as a natural gas and oil mineral company in the United States. PHX produces and sells natural gas, crude oil, and natural gas liquids. Its principal properties are located in Oklahoma, Texas, Louisiana, North Dakota, and Arkansas.
PHX Minerals has expected earnings growth of more than 100% for the current year (ending September 2023). The Zacks Consensus Estimate for its current-year earnings has improved 6.5% over the last 30 days. The stock price has jumped 69.6% year to date.
Richardson Electronics is a global provider of Engineered Solutions, serving the RF, Wireless & Power Conversion; Electron Device; Security; and Display Systems markets. RELL delivers engineered solutions for its customers' needs through product manufacturing, systems integration, prototype design and manufacture, testing and logistics.
Richardson Electronics l has expected earnings growth of 28.5% for the current year (ending May 2023). The Zacks Consensus Estimate for its current-year earnings has improved 1.6% over the last seven days. The stock price has climbed 64.4% year to date.
Aerie Pharmaceuticals is currently set to be acquired by Alcon Pharmaceuticals. AERI's ophthalmology drugs, Rhopressa and Rocklatan, are gaining traction slowly and steadily. Their approval in additional geographies will aid overall sales.
Aerie Pharmaceuticals' progress with the other ophthalmology candidates in its pipeline has been impressive so far and successful development of the same will boost its portfolio. Strategic buyouts bolstered the pipeline with promising candidates. AERI's retina programs continue to advance.
Aerie Pharmaceuticals has expected earnings growth of 47.3% for next year. The Zacks Consensus Estimate for its next-year earnings has improved 5% over the last 60 days. The stock price has soared 116.5% year to date.
Why Haven't You Looked at Zacks' Top Stocks?
Our 5 best-performing strategies have blown away the S&P's impressive +28.8% gain in 2021. Amazingly, they soared +40.3%, +48.2%, +67.6%, +94.4%, and +95.3%. Today you can access their live picks without cost or obligation.
See Stocks Free >>
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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.