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The Zacks Analyst Blog Highlights Affirm Holdings, APi Group, Block and Rollins
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For Immediate Release
Chicago, IL – December 7, 2023 – 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: Affirm Holdings, Inc. (AFRM - Free Report) , APi Group Corp. (APG - Free Report) , Block, Inc. (SQ - Free Report) and Rollins, Inc. (ROL - Free Report) .
Here are highlights from Wednesday’s Analyst Blog:
4 Stocks to Buy on Solid Jump in Services Sector Activity
The U.S. services sector, which has witnessed a slowdown lately owing to the ongoing inflationary pressures, is showing signs of recovery. Although new orders remained flat in November, overall services activity picked up, indicating a steady rebound as inflation continues to cool.
The rebound in the services sector activity is also an indication that people are now more confident about the economy making a softer landing than expected earlier, which is making them spend more. Given this situation, business services stocks like Affirm Holdings, Inc., APi Group Corp., Block, Inc. and Rollins, Inc. are likely to benefit in the near term.
Services Activity Grows
The Institute for Supply Management reported on Dec 4 that its services sector Purchasing Managers’ Index (PMI) rose to 52.7 in November after contracting to 51.8 in October, a five-month low. A reading of anything above 50 suggests an increase in service activity, which accounts for over two-thirds of the economy.
The New Orders Index measured 55.5 in November, unchanged from last month. However, the good sign is that spending on services is increasing. November’s jump was primarily driven by a solid rise in spending on business activity.
People have been spending cautiously over the past few months as higher interest rates are pinching their pockets. The Federal Reserve has hiked interest rates by 525 basis points since March 2022 in a bid to curb multi-decade high inflation. The Fed’s benchmark policy rate now stands in the range of 5.25-5.5%.
Easing inflation over the past year saw the central bank leaving interest rates unchanged in its last two policy meetings. The Fed has said that it is open to more interest rate hikes given that inflation, despite a steep decline, remains above its 2% target.
However, fresh jobs data, which hints at a cooling labor market, has raised hopes that the Fed might be done with its monetary tightening campaign and may start cutting interest rates early next year.
Consumers, too, have been spending freely. Consumer spending rose 0.2% in November, while inflation increased at its slowest pace annually in the past two-and-a-half years. Also, Consumer Confidence came in at 102 in November, surpassing estimates of a rise to 101.
Our Choices
Given this situation, it makes for an ideal opportunity to invest in these four stocks.
Affirm Holdings, Inc. is an emerging growth company. AFRM is building the next-generation platform for digital and mobile-first commerce. Affirm Holdings believes it can reinvent the payment experience.
Affirm Holdings’ expected earnings growth rate for the current year is 111.7%. The Zacks Consensus Estimate for current-year earnings has improved 143.8% over the past 60 days. AFRM presently has a Zacks Rank #2 (Buy). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
APi Group Corp. provides business services of safety, specialty and industrial. APG offers critical pipeline integrity and construction services for energy companies, utilities, public agencies, and contractors, as well as end-to-end fire protection solutions, including design, installation, inspection and service of fire protection systems.
APi Group’s expected earnings growth rate for the current year is 18.1%. The Zacks Consensus Estimate for current-year earnings has improved 4% over the past 60 days. APG presently carries a Zacks Rank #2.
Block, Inc. offers financial and marketing services through its comprehensive commerce ecosystem that helps sellers start, run and grow their businesses. SQ provides payment and point-of-sale services, which include hardware and software to accept payments, streamline operations and analyze business information.
Block’s expected earnings growth rate for the current year is 90%. The Zacks Consensus Estimate for current-year earnings has improved 17.3% over the past 60 days. SQ currently has a Zacks Rank #2.
Rollins, Inc. provides pest and termite control services to residential and commercial customers. ROL offers protection against termite damage, insects and rodents to homes and businesses, including food manufacturers, food service establishments, hotels, transportation companies and retailers.
Rollins’ expected earnings growth rate for the current year is 18.7%. The Zacks Consensus Estimate for current-year earnings has improved 3.5% over the past 60 days. ROL currently carries a Zacks Rank #2.
Why Haven’t You Looked at Zacks' Top Stocks?
Since 2000, our top stock-picking strategies have blown away the S&P's +6.2 average gain per year. Amazingly, they soared with average gains of +46.4%, +49.5% and +55.2% per year. 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 Affirm Holdings, APi Group, Block and Rollins
For Immediate Release
Chicago, IL – December 7, 2023 – 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: Affirm Holdings, Inc. (AFRM - Free Report) , APi Group Corp. (APG - Free Report) , Block, Inc. (SQ - Free Report) and Rollins, Inc. (ROL - Free Report) .
Here are highlights from Wednesday’s Analyst Blog:
4 Stocks to Buy on Solid Jump in Services Sector Activity
The U.S. services sector, which has witnessed a slowdown lately owing to the ongoing inflationary pressures, is showing signs of recovery. Although new orders remained flat in November, overall services activity picked up, indicating a steady rebound as inflation continues to cool.
The rebound in the services sector activity is also an indication that people are now more confident about the economy making a softer landing than expected earlier, which is making them spend more. Given this situation, business services stocks like Affirm Holdings, Inc., APi Group Corp., Block, Inc. and Rollins, Inc. are likely to benefit in the near term.
Services Activity Grows
The Institute for Supply Management reported on Dec 4 that its services sector Purchasing Managers’ Index (PMI) rose to 52.7 in November after contracting to 51.8 in October, a five-month low. A reading of anything above 50 suggests an increase in service activity, which accounts for over two-thirds of the economy.
The New Orders Index measured 55.5 in November, unchanged from last month. However, the good sign is that spending on services is increasing. November’s jump was primarily driven by a solid rise in spending on business activity.
People have been spending cautiously over the past few months as higher interest rates are pinching their pockets. The Federal Reserve has hiked interest rates by 525 basis points since March 2022 in a bid to curb multi-decade high inflation. The Fed’s benchmark policy rate now stands in the range of 5.25-5.5%.
Easing inflation over the past year saw the central bank leaving interest rates unchanged in its last two policy meetings. The Fed has said that it is open to more interest rate hikes given that inflation, despite a steep decline, remains above its 2% target.
However, fresh jobs data, which hints at a cooling labor market, has raised hopes that the Fed might be done with its monetary tightening campaign and may start cutting interest rates early next year.
Consumers, too, have been spending freely. Consumer spending rose 0.2% in November, while inflation increased at its slowest pace annually in the past two-and-a-half years. Also, Consumer Confidence came in at 102 in November, surpassing estimates of a rise to 101.
Our Choices
Given this situation, it makes for an ideal opportunity to invest in these four stocks.
Affirm Holdings, Inc. is an emerging growth company. AFRM is building the next-generation platform for digital and mobile-first commerce. Affirm Holdings believes it can reinvent the payment experience.
Affirm Holdings’ expected earnings growth rate for the current year is 111.7%. The Zacks Consensus Estimate for current-year earnings has improved 143.8% over the past 60 days. AFRM presently has a Zacks Rank #2 (Buy). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
APi Group Corp. provides business services of safety, specialty and industrial. APG offers critical pipeline integrity and construction services for energy companies, utilities, public agencies, and contractors, as well as end-to-end fire protection solutions, including design, installation, inspection and service of fire protection systems.
APi Group’s expected earnings growth rate for the current year is 18.1%. The Zacks Consensus Estimate for current-year earnings has improved 4% over the past 60 days. APG presently carries a Zacks Rank #2.
Block, Inc. offers financial and marketing services through its comprehensive commerce ecosystem that helps sellers start, run and grow their businesses. SQ provides payment and point-of-sale services, which include hardware and software to accept payments, streamline operations and analyze business information.
Block’s expected earnings growth rate for the current year is 90%. The Zacks Consensus Estimate for current-year earnings has improved 17.3% over the past 60 days. SQ currently has a Zacks Rank #2.
Rollins, Inc. provides pest and termite control services to residential and commercial customers. ROL offers protection against termite damage, insects and rodents to homes and businesses, including food manufacturers, food service establishments, hotels, transportation companies and retailers.
Rollins’ expected earnings growth rate for the current year is 18.7%. The Zacks Consensus Estimate for current-year earnings has improved 3.5% over the past 60 days. ROL currently carries a Zacks Rank #2.
Why Haven’t You Looked at Zacks' Top Stocks?
Since 2000, our top stock-picking strategies have blown away the S&P's +6.2 average gain per year. Amazingly, they soared with average gains of +46.4%, +49.5% and +55.2% per year. 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.