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The Zacks Analyst Blog Highlights: Livongo Health, Karuna Therapeutics, Sprouts Farmers Market, PennyMac Financial Services and Strategic Education
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For Immediate Release
Chicago, IL – April 27, 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: Livongo Health Inc. , Karuna Therapeutics Inc. , Sprouts Farmers Market Inc. (SFM - Free Report) , PennyMac Financial Services Inc. (PFSI - Free Report) and Strategic Education Inc. (STRA - Free Report) .
Here are highlights from Friday’s Analyst Blog:
5 Top Mid-Caps Surging in the Face of Global Pandemic
The market, which has been declining since mid-February owing to the spread of coronavirus, witnessed a steep fall on Mar 23. Thereafter, the market has been rallying, barring some occasional fluctuations. Apart from the large-cap specific three major stock indexes — the Dow, the S&P 500 and the Nasdaq Composite — the mid-cap specific S&P 400 also witnessed a similar trend.
The market is not yet out of the woods owing the rapid worldwide spread of coronavirus and its devastating impact on the U.S. and global economy. Meanwhile, the negative effect of coronavirus on the economy is already factored in market valuation.
Moreover, an unprecedented $8 trillion fiscal and monetary stimulus injected by both the Trump administration and the Fed along with another $7-$8 trillion relief package provided by several large Eurozone economies, Japan and various important emerging countries to protect the global economy from shrinkage, significantly influenced the ongoing market rally.
Similar Trends Observed in Large-cap and Mid-cap Indexes
The mid-cap specific S&P 400 index has been trending much like its large-cap peers during the coronavirus-induced market turmoil. The Dow recorded its all-time high on Feb 12 while both the S&P 500 and the Nasdaq Composite posted all-time highs on Feb 19. Likewise, the S&P 400 registered its recent highs on Feb 20.
The Dow entered the bear market territory on Mar 11 and the S&P 400 also fell into that bracket on the same day. Both the S&P 500 and the Nasdaq Composite entered the bear territory a day later. The three major stock indexes recorded the lowest of the last bear market on Mar 23 and the S&P 400 also posted the lowest level that day.
Moreover, the Dow, the S&P 500 and the Nasdaq Composite - managed to come out of the bear territory on Mar 26, Apr 8 and Apr 14, respectively. The S&P 400 got rid of the bear market on Mar 27. Additionally, the Dow, the S&P 500 and the Nasdaq Composite are still down 20.5%, 17.6% and 13.7% from their all-time highs while the mid-cap benchmark is 29.4% below its recent high.
Market's Worst is Behind Us
It looks like panic selling of equities by market participants — popularly called as selling everything — is over. This is primarily because of extremely low stock market valuation on account of the unprecedented non-financial hazard to the global financial markets. While it is certain that volatility will remain part of regular trading at least for the next few months, extreme volatility will likely recede.
Meanwhile, if the crisis doesn’t worsen or any good news surfaces on the treatment front, mid-cap stocks will gain more than small caps due to established management teams, a broad distribution network, brand recognition and ready access to capital markets. During the recovery phase, many of these mid-cap stocks may join the large-cap league.
Our Top Picks
We have narrowed down our search to five mid-cap stocks that have skyrocketed in the past month and still have upside left. Each of our picks sports a Zacks Rank#1 (Strong Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.
Livongo Health Inc. provides an integrated suite of solutions to the healthcare industry in North America. Its solutions promote health behavior change based on real-time data capture supported by intuitive devices and insights driven by data science.
The company has an expected earnings growth rate of 51.3% for the current year. The Zacks Consensus Estimate for current-year earnings has improved by 24% over the past 60 days. The stock price has soared 77.9% in the past month.
Karuna Therapeutics Inc. is a clinical-stage biopharmaceutical company, primarily focusing on developing novel therapies to address disabling neuropsychiatric conditions characterized by significant unmet medical needs.
The company has an expected earnings growth rate of 41.9% for the current year. The Zacks Consensus Estimate for current-year earnings has improved by 15.7% over the past 60 days. The stock price has jumped 28.3% in the past month.
Sprouts Farmers Market Inc. operates in a highly fragmented grocery store industry offering a unique model that features fresh produce at the center of the store, an expansive bulk foods section and a vitamin department focused on overall wellness.
The company has an expected earnings growth rate of 8.8% for the current year. The Zacks Consensus Estimate for current-year earnings has improved by 12.4% over the past 60 days. The stock price has climbed 24.8% in the past month.
PennyMac Financial Services Inc. is engaged in the mortgage banking and investment management activities in the United States. It operates through three segments: Loan Production, Loan Servicing and Investment Management.
The company has an expected earnings growth rate of 106.1% for the current year. The Zacks Consensus Estimate for current-year earnings has improved by 82.9% over the past 60 days. The stock price has rallied 23.4% in the past month.
Strategic Education Inc. provides a range of post-secondary education and non-degree programs in the United States. It operates through three segments: Strayer University, Capella University, and Non-Degree Programs.
The company has an expected earnings growth rate of 14.7% for the current year. The Zacks Consensus Estimate for current-year earnings has improved by 3.4% over the past 60 days. The stock price has advanced 22.4% in the past month.
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 2020.
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/performancefor information about the performance numbers displayed in this press release.
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The Zacks Analyst Blog Highlights: Livongo Health, Karuna Therapeutics, Sprouts Farmers Market, PennyMac Financial Services and Strategic Education
For Immediate Release
Chicago, IL – April 27, 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: Livongo Health Inc. , Karuna Therapeutics Inc. , Sprouts Farmers Market Inc. (SFM - Free Report) , PennyMac Financial Services Inc. (PFSI - Free Report) and Strategic Education Inc. (STRA - Free Report) .
Here are highlights from Friday’s Analyst Blog:
5 Top Mid-Caps Surging in the Face of Global Pandemic
The market, which has been declining since mid-February owing to the spread of coronavirus, witnessed a steep fall on Mar 23. Thereafter, the market has been rallying, barring some occasional fluctuations. Apart from the large-cap specific three major stock indexes — the Dow, the S&P 500 and the Nasdaq Composite — the mid-cap specific S&P 400 also witnessed a similar trend.
The market is not yet out of the woods owing the rapid worldwide spread of coronavirus and its devastating impact on the U.S. and global economy. Meanwhile, the negative effect of coronavirus on the economy is already factored in market valuation.
Moreover, an unprecedented $8 trillion fiscal and monetary stimulus injected by both the Trump administration and the Fed along with another $7-$8 trillion relief package provided by several large Eurozone economies, Japan and various important emerging countries to protect the global economy from shrinkage, significantly influenced the ongoing market rally.
Similar Trends Observed in Large-cap and Mid-cap Indexes
The mid-cap specific S&P 400 index has been trending much like its large-cap peers during the coronavirus-induced market turmoil. The Dow recorded its all-time high on Feb 12 while both the S&P 500 and the Nasdaq Composite posted all-time highs on Feb 19. Likewise, the S&P 400 registered its recent highs on Feb 20.
The Dow entered the bear market territory on Mar 11 and the S&P 400 also fell into that bracket on the same day. Both the S&P 500 and the Nasdaq Composite entered the bear territory a day later. The three major stock indexes recorded the lowest of the last bear market on Mar 23 and the S&P 400 also posted the lowest level that day.
Moreover, the Dow, the S&P 500 and the Nasdaq Composite - managed to come out of the bear territory on Mar 26, Apr 8 and Apr 14, respectively. The S&P 400 got rid of the bear market on Mar 27. Additionally, the Dow, the S&P 500 and the Nasdaq Composite are still down 20.5%, 17.6% and 13.7% from their all-time highs while the mid-cap benchmark is 29.4% below its recent high.
Market's Worst is Behind Us
It looks like panic selling of equities by market participants — popularly called as selling everything — is over. This is primarily because of extremely low stock market valuation on account of the unprecedented non-financial hazard to the global financial markets. While it is certain that volatility will remain part of regular trading at least for the next few months, extreme volatility will likely recede.
Meanwhile, if the crisis doesn’t worsen or any good news surfaces on the treatment front, mid-cap stocks will gain more than small caps due to established management teams, a broad distribution network, brand recognition and ready access to capital markets. During the recovery phase, many of these mid-cap stocks may join the large-cap league.
Our Top Picks
We have narrowed down our search to five mid-cap stocks that have skyrocketed in the past month and still have upside left. Each of our picks sports a Zacks Rank#1 (Strong Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.
Livongo Health Inc. provides an integrated suite of solutions to the healthcare industry in North America. Its solutions promote health behavior change based on real-time data capture supported by intuitive devices and insights driven by data science.
The company has an expected earnings growth rate of 51.3% for the current year. The Zacks Consensus Estimate for current-year earnings has improved by 24% over the past 60 days. The stock price has soared 77.9% in the past month.
Karuna Therapeutics Inc. is a clinical-stage biopharmaceutical company, primarily focusing on developing novel therapies to address disabling neuropsychiatric conditions characterized by significant unmet medical needs.
The company has an expected earnings growth rate of 41.9% for the current year. The Zacks Consensus Estimate for current-year earnings has improved by 15.7% over the past 60 days. The stock price has jumped 28.3% in the past month.
Sprouts Farmers Market Inc. operates in a highly fragmented grocery store industry offering a unique model that features fresh produce at the center of the store, an expansive bulk foods section and a vitamin department focused on overall wellness.
The company has an expected earnings growth rate of 8.8% for the current year. The Zacks Consensus Estimate for current-year earnings has improved by 12.4% over the past 60 days. The stock price has climbed 24.8% in the past month.
PennyMac Financial Services Inc. is engaged in the mortgage banking and investment management activities in the United States. It operates through three segments: Loan Production, Loan Servicing and Investment Management.
The company has an expected earnings growth rate of 106.1% for the current year. The Zacks Consensus Estimate for current-year earnings has improved by 82.9% over the past 60 days. The stock price has rallied 23.4% in the past month.
Strategic Education Inc. provides a range of post-secondary education and non-degree programs in the United States. It operates through three segments: Strayer University, Capella University, and Non-Degree Programs.
The company has an expected earnings growth rate of 14.7% for the current year. The Zacks Consensus Estimate for current-year earnings has improved by 3.4% over the past 60 days. The stock price has advanced 22.4% in the past month.
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 2020.
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 http://www.zacks.com/performancefor information about the performance numbers displayed in this press release.