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: Abercrombie & Fitch, Foot Locker, Costco and Darden
Read MoreHide Full Article
For Immediate Release
Chicago, IL –April 5, 2019 – 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: Abercrombie & Fitch Co. (ANF - Free Report) , Foot Locker, Inc. (FL - Free Report) , Costco Wholesale Corporation (COST - Free Report) and Darden Restaurants, Inc. (DRI - Free Report) .
Here are highlights from Thursday’s Analyst Blog:
4 Undervalued Retail Stocks with Earnings Growth Potential
"It is far better to buy a wonderful company at a fair price than a fair company at a wonderful price." — Warren Buffett. Smart investors often consider value style as one of the most-effective approaches. In value investing, the focus is on stocks that are trading below their inherent worth but are fundamentally sound.
An investment decision based on the intrinsic value of stocks seems feasible in an economy that is coping with waning consumer confidence, Brexit and slowing global economic environment. Definitely, these raise concerns. However, efforts to resolve the U.S.-China trade spat, the Fed’s dovish stance and increase in construction spending for the third successive month in February sounds good.
Given the current market scenario, adding a few top-ranked stocks with a favorable Value Score and solid earnings growth potential seems prudent. Among the 16 Zacks sectors, we are focusing on Retail & Wholesale.
Why Retail Sector?
A strong labor market and gradual wage acceleration are favoring the Retail & Wholesale sector. The space seems to be faring better when compared with a host of other sectors, at least in terms of earnings and revenues. This is clearly visible from the picture unfolding for the first quarter of 2019.
Per the latest Earnings Preview, the sector is likely to register top and bottom-line growth of 7.3% and 2.9%, respectively. On the other hand, total S&P 500 revenues are envisioned to improve 4.6%, with earnings expected to decline 4%.
The report also suggests that the sector is likely to continue its momentum going forward with growth expected on both ends in the remaining three quarters. Consequently, revenues and earnings are projected to increase 8% and 6%, respectively, in 2019.
4 Prominent Picks
We have shortlisted stocks on the basis of a Zacks Rank #1 (Strong Buy) or 2 (Buy) and a Value Score of A or B. Further, the Zacks Consensus Estimate for earnings portray growth rate of 10% or more for the current fiscal year.
We suggest investing in Abercrombie & Fitch Co. with a long-term earnings growth rate of 15.3% and a Value Score of B. This specialty retailer delivered an average positive earnings surprise of 88.3% in the trailing four quarters. The stock, which sports a Zacks Rank #1, has estimated earnings per share growth rate of 20.9% for the current fiscal year. You can see the complete list of today’s Zacks #1 Rank stocks here.
Another stock worth considering is Foot Locker, Inc., which has a long-term earnings growth rate of 9.4% and Value Score of A. This athletic shoes and apparel retailer delivered an average positive earnings surprise of 9.7% in the trailing four quarters. The stock, which flaunts a Zacks Rank #1, has an estimated earnings per share growth rate of 10.4% for the current fiscal year.
Investors can also count on Costco Wholesale Corporation, which operates membership warehouses. This Zacks Rank #2 company has a long-term earnings growth rate of 8.9% and a Value Score of B. The company has delivered an average positive earnings surprise of 5.5% in the trailing four quarters. The stock has estimated earnings per share growth rate of 15.8% for the current fiscal year.
Darden Restaurants, Inc., which owns and operates full-service restaurants, is a solid bet with a Zacks Rank #2 and Value Score of B. The company with a long-term earnings growth rate of 10.3% posted an average positive earnings surprise of 3.7% in the trailing four quarters. The stock has estimated earnings per share growth rate of 20.2% for the current fiscal year.
Today's Best Stocks from Zacks
Would you like to see the updated picks from our best market-beating strategies? From 2017 through 2018, while the S&P 500 gained +15.8%, five of our screens returned +38.0%, +61.3%, +61.6%, +68.1%, and +98.3%.
This outperformance has not just been a recent phenomenon. From 2000 – 2018, while the S&P averaged +4.8% per year, our top strategies averaged up to +56.2% per year.
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 http://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: Abercrombie & Fitch, Foot Locker, Costco and Darden
For Immediate Release
Chicago, IL –April 5, 2019 – 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: Abercrombie & Fitch Co. (ANF - Free Report) , Foot Locker, Inc. (FL - Free Report) , Costco Wholesale Corporation (COST - Free Report) and Darden Restaurants, Inc. (DRI - Free Report) .
Here are highlights from Thursday’s Analyst Blog:
4 Undervalued Retail Stocks with Earnings Growth Potential
"It is far better to buy a wonderful company at a fair price than a fair company at a wonderful price." — Warren Buffett. Smart investors often consider value style as one of the most-effective approaches. In value investing, the focus is on stocks that are trading below their inherent worth but are fundamentally sound.
An investment decision based on the intrinsic value of stocks seems feasible in an economy that is coping with waning consumer confidence, Brexit and slowing global economic environment. Definitely, these raise concerns. However, efforts to resolve the U.S.-China trade spat, the Fed’s dovish stance and increase in construction spending for the third successive month in February sounds good.
Given the current market scenario, adding a few top-ranked stocks with a favorable Value Score and solid earnings growth potential seems prudent. Among the 16 Zacks sectors, we are focusing on Retail & Wholesale.
Why Retail Sector?
A strong labor market and gradual wage acceleration are favoring the Retail & Wholesale sector. The space seems to be faring better when compared with a host of other sectors, at least in terms of earnings and revenues. This is clearly visible from the picture unfolding for the first quarter of 2019.
Per the latest Earnings Preview, the sector is likely to register top and bottom-line growth of 7.3% and 2.9%, respectively. On the other hand, total S&P 500 revenues are envisioned to improve 4.6%, with earnings expected to decline 4%.
The report also suggests that the sector is likely to continue its momentum going forward with growth expected on both ends in the remaining three quarters. Consequently, revenues and earnings are projected to increase 8% and 6%, respectively, in 2019.
4 Prominent Picks
We have shortlisted stocks on the basis of a Zacks Rank #1 (Strong Buy) or 2 (Buy) and a Value Score of A or B. Further, the Zacks Consensus Estimate for earnings portray growth rate of 10% or more for the current fiscal year.
We suggest investing in Abercrombie & Fitch Co. with a long-term earnings growth rate of 15.3% and a Value Score of B. This specialty retailer delivered an average positive earnings surprise of 88.3% in the trailing four quarters. The stock, which sports a Zacks Rank #1, has estimated earnings per share growth rate of 20.9% for the current fiscal year. You can see the complete list of today’s Zacks #1 Rank stocks here.
Another stock worth considering is Foot Locker, Inc., which has a long-term earnings growth rate of 9.4% and Value Score of A. This athletic shoes and apparel retailer delivered an average positive earnings surprise of 9.7% in the trailing four quarters. The stock, which flaunts a Zacks Rank #1, has an estimated earnings per share growth rate of 10.4% for the current fiscal year.
Investors can also count on Costco Wholesale Corporation, which operates membership warehouses. This Zacks Rank #2 company has a long-term earnings growth rate of 8.9% and a Value Score of B. The company has delivered an average positive earnings surprise of 5.5% in the trailing four quarters. The stock has estimated earnings per share growth rate of 15.8% for the current fiscal year.
Darden Restaurants, Inc., which owns and operates full-service restaurants, is a solid bet with a Zacks Rank #2 and Value Score of B. The company with a long-term earnings growth rate of 10.3% posted an average positive earnings surprise of 3.7% in the trailing four quarters. The stock has estimated earnings per share growth rate of 20.2% for the current fiscal year.
Today's Best Stocks from Zacks
Would you like to see the updated picks from our best market-beating strategies? From 2017 through 2018, while the S&P 500 gained +15.8%, five of our screens returned +38.0%, +61.3%, +61.6%, +68.1%, and +98.3%.
This outperformance has not just been a recent phenomenon. From 2000 – 2018, while the S&P averaged +4.8% per year, our top strategies averaged up to +56.2% per year.
See their latest picks free >>
Media Contact
Zacks Investment Research
800-767-3771 ext. 9339
support@zacks.com
http://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 http://www.zacks.com/performance for information about the performance numbers displayed in this press release.