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2022-07-11 00:00:00+00:00	AA	Quiet Morning Ahead of Q2 Earnings, CPI This Week	Monday, July 11, 2022 We start out a new full week of trading rather quietly — no economic data prints released before the opening bell this morning, nor Q2 earnings reports, which begin registering at a slightly hotter clip than we’ve seen thus far. We’re coming off a relatively flat Friday, but pre-market futures are in the red: the Dow -170 points, the Nasdaq -100 and the S&P 500 — currently carrying a five-day winning streak — is -25 points. A few years back, when Alcoa AA was still part of the Dow 30 index, earnings season “officially” began upon the aluminum giant’s earnings report. In subsequent years, we’ve come to see the big Wall Street banks’ reports as the start of earnings season. Those begin this week: JPMorgan Chase JPM comes out with Q2 tallies Thursday, Citigroup C and Wells Fargo WFC — among many other financial firms — on Friday. Even before these, however, we’ll hear from PepsiCo PEP on Tuesday and Delta Air Lines DAL Wednesday. So even before we get results from how the biggest financial institutions in the world fared in Q2, we’ll find out how the consumer dealt with making Consumer Discretionary choices amid skyrocketing gasoline prices, which then bled into costs for Transportation, thus leading to hire prices for delivered goods. Mid-week, perhaps the biggest print of economic data all month — at least, before the Fed policy meeting at this end of July — arrives in the form of Consumer Price Index (CPI) numbers, which has become shorthand for inflation. It’s expected June ratcheted up inflation even more, especially year over year, to +8.8% from +8.6% previously reported. This is obviously continuing a four-decade high. That said, “core” inflation — which strips out food and energy costs — is expected to come down a tad, to +5.7% from +6.0% last reported. This is still obviously much higher than the Fed’s desired +2% inflation, but at least it’s headed in the right direction. And if this data shows demand destruction having an effect on things like housing prices, we may even see a downward surprise on these inflation metrics. Clearly, this is what’s behind the Fed hiking interest rates 150 basis points (bps) since March, with another 50-75 bps expected in the last week of July. That the market is trading down at this hour tells us there is plenty of concern about CPI and Q2 earnings results — particularly how companies guide through the remainder of 2022 and into ’23. But could a few better-than-expected prints change this trajectory? Questions or comments about this article and/or its author? Click here>> Zacks Names "Single Best Pick to Double" From thousands of stocks, 5 Zacks experts each have chosen their favorite to skyrocket +100% or more in months to come. From those 5, Director of Research Sheraz Mian hand-picks one to have the most explosive upside of all. It’s a little-known chemical company that’s up 65% over last year, yet still dirt cheap. With unrelenting demand, soaring 2022 earnings estimates, and $1.5 billion for repurchasing shares, retail investors could jump in at any time. This company could rival or surpass other recent Zacks’ Stocks Set to Double like Boston Beer Company which shot up +143.0% in little more than 9 months and NVIDIA which boomed +175.9% in one year. Free: See Our Top Stock and 4 Runners Up >> Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report Wells Fargo & Company (WFC): Free Stock Analysis Report JPMorgan Chase & Co. (JPM): Free Stock Analysis Report Citigroup Inc. (C): Free Stock Analysis Report Delta Air Lines, Inc. (DAL): Free Stock Analysis Report Alcoa (AA): Free Stock Analysis Report PepsiCo, Inc. (PEP): Free Stock Analysis Report To read this article on Zacks.com click here. Zacks Investment Research Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
2022-07-08 00:00:00+00:00	AA	Alcoa Boosts Casting Capabilities At Deschambault Smelter In Canada	(RTTNews) - Alcoa Corporation (AA), an aluminum company, said on Friday that it will soon begin construction of a new casting equipment at its Deschambault smelter in Canada, with a capital investment of around $8 million. The work, expected to be completed in the first quarter of 2023, aims to boost the metal maker's casting capabilities to include standard ingots. "Adding standard ingot casting to the site's capabilities will allow greater flexibility for alloying in smaller batches to meet customer needs for value-add products such as foundry alloys for the automotive industry. Each standard ingot weighs approximately 10.5 kilograms," the company said in a statement. The Deschambault smelter has an installed capacity of 287,000 metric tons of aluminum a year. The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
2022-07-07 00:00:00+00:00	AA	August 26th Options Now Available For Alcoa (AA)	Investors in Alcoa Corporation (Symbol: AA) saw new options begin trading today, for the August 26th expiration. At Stock Options Channel, our YieldBoost formula has looked up and down the AA options chain for the new August 26th contracts and identified one put and one call contract of particular interest. The put contract at the $45.00 strike price has a current bid of $4.45. If an investor was to sell-to-open that put contract, they are committing to purchase the stock at $45.00, but will also collect the premium, putting the cost basis of the shares at $40.55 (before broker commissions). To an investor already interested in purchasing shares of AA, that could represent an attractive alternative to paying $45.49/share today. Because the $45.00 strike represents an approximate 1% discount to the current trading price of the stock (in other words it is out-of-the-money by that percentage), there is also the possibility that the put contract would expire worthless. The current analytical data (including greeks and implied greeks) suggest the current odds of that happening are 99%. Stock Options Channel will track those odds over time to see how they change, publishing a chart of those numbers on our website under the contract detail page for this contract. Should the contract expire worthless, the premium would represent a 9.89% return on the cash commitment, or 72.19% annualized — at Stock Options Channel we call this the YieldBoost. Below is a chart showing the trailing twelve month trading history for Alcoa Corporation, and highlighting in green where the $45.00 strike is located relative to that history: Turning to the calls side of the option chain, the call contract at the $46.00 strike price has a current bid of $4.45. If an investor was to purchase shares of AA stock at the current price level of $45.49/share, and then sell-to-open that call contract as a "covered call," they are committing to sell the stock at $46.00. Considering the call seller will also collect the premium, that would drive a total return (excluding dividends, if any) of 10.90% if the stock gets called away at the August 26th expiration (before broker commissions). Of course, a lot of upside could potentially be left on the table if AA shares really soar, which is why looking at the trailing twelve month trading history for Alcoa Corporation, as well as studying the business fundamentals becomes important. Below is a chart showing AA's trailing twelve month trading history, with the $46.00 strike highlighted in red: Considering the fact that the $46.00 strike represents an approximate 1% premium to the current trading price of the stock (in other words it is out-of-the-money by that percentage), there is also the possibility that the covered call contract would expire worthless, in which case the investor would keep both their shares of stock and the premium collected. The current analytical data (including greeks and implied greeks) suggest the current odds of that happening are 99%. On our website under the contract detail page for this contract, Stock Options Channel will track those odds over time to see how they change and publish a chart of those numbers (the trading history of the option contract will also be charted). Should the covered call contract expire worthless, the premium would represent a 9.78% boost of extra return to the investor, or 71.41% annualized, which we refer to as the YieldBoost. Meanwhile, we calculate the actual trailing twelve month volatility (considering the last 252 trading day closing values as well as today's price of $45.49) to be 65%. For more put and call options contract ideas worth looking at, visit StockOptionsChannel.com. Top YieldBoost Calls of the S&P 500 » The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
2022-07-06 00:00:00+00:00	AA	Is iShares MSCI USA SmallCap Multifactor ETF (SMLF) a Strong ETF Right Now?	A smart beta exchange traded fund, the iShares MSCI USA SmallCap Multifactor ETF (SMLF) debuted on 04/28/2015, and offers broad exposure to the Style Box - Small Cap Blend category of the market. What Are Smart Beta ETFs? The ETF industry has traditionally been dominated by products based on market capitalization weighted indexes that are designed to represent the market or a particular segment of the market. A good option for investors who believe in market efficiency, market cap weighted indexes offer a low-cost, convenient, and transparent way of replicating market returns. If you're the kind of investor who would rather try and beat the market through good stock selection, then smart beta funds are your best choice; this fund class is known for tracking non-cap weighted strategies. By attempting to pick stocks that have a better chance of risk-return performance, non-cap weighted indexes are based on certain fundamental characteristics, or a combination of such. This area offers many different investment choices, such as simplest equal-weighting, fundamental weighting and volatility/momentum based weighting methodologies; however, not all of these strategies can deliver superior results. Fund Sponsor & Index The fund is managed by Blackrock. SMLF has been able to amass assets over $902.02 million, making it one of the larger ETFs in the Style Box - Small Cap Blend. Before fees and expenses, this particular fund seeks to match the performance of the MSCI USA Small Cap Diversified Multiple-Factor Index. The MSCI USA Small Cap Diversified Multiple-Factor Index is designed to select equity securities from MSCI USA Small Cap Index that have high exposure to four investment style factors: value, quality, momentum and low size. Cost & Other Expenses Expense ratios are an important factor in the return of an ETF and in the long-term, cheaper funds can significantly outperform their more expensive cousins, other things remaining the same. With on par with most peer products in the space, this ETF has annual operating expenses of 0.30%. It's 12-month trailing dividend yield comes in at 1.38%. Sector Exposure and Top Holdings Even though ETFs offer diversified exposure which minimizes single stock risk, it is still important to look into a fund's holdings before investing. Luckily, most ETFs are very transparent products that disclose their holdings on a daily basis. Representing 18.40% of the portfolio, the fund has heaviest allocation to the Healthcare sector; Information Technology and Consumer Discretionary round out the top three. Taking into account individual holdings, Marathon Oil Corp (MRO) accounts for about 1.81% of the fund's total assets, followed by Alcoa Corp (AA) and Jones Lang Lasalle Inc (JLL). SMLF's top 10 holdings account for about 11.72% of its total assets under management. Performance and Risk So far this year, SMLF has lost about -18.08%, and is down about -13.30% in the last one year (as of 07/06/2022). During this past 52-week period, the fund has traded between $46.10 and $59.93. The fund has a beta of 1.08 and standard deviation of 28.34% for the trailing three-year period, which makes SMLF a high risk choice in this particular space. With about 501 holdings, it effectively diversifies company-specific risk. Alternatives IShares MSCI USA SmallCap Multifactor ETF is a reasonable option for investors seeking to outperform the Style Box - Small Cap Blend segment of the market. However, there are other ETFs in the space which investors could consider. IShares Russell 2000 ETF (IWM) tracks Russell 2000 Index and the iShares Core S&P SmallCap ETF (IJR) tracks S&P SmallCap 600 Index. IShares Russell 2000 ETF has $52.39 billion in assets, iShares Core S&P SmallCap ETF has $61.39 billion. IWM has an expense ratio of 0.19% and IJR charges 0.06%. Investors looking for cheaper and lower-risk options should consider traditional market cap weighted ETFs that aim to match the returns of the Style Box - Small Cap Blend. Bottom Line To learn more about this product and other ETFs, screen for products that match your investment objectives and read articles on latest developments in the ETF investing universe, please visit Zacks ETF Center. Want key ETF info delivered straight to your inbox? Zacks’ free Fund Newsletter will brief you on top news and analysis, as well as top-performing ETFs, each week. Get it free >> Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report iShares MSCI USA SmallCap Multifactor ETF (SMLF): ETF Research Reports Marathon Oil Corporation (MRO): Free Stock Analysis Report Alcoa (AA): Free Stock Analysis Report Jones Lang LaSalle Incorporated (JLL): Free Stock Analysis Report iShares Russell 2000 ETF (IWM): ETF Research Reports iShares Core S&P SmallCap ETF (IJR): ETF Research Reports To read this article on Zacks.com click here. Zacks Investment Research The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
2022-07-06 00:00:00+00:00	AA	Alcoa (AA) Outpaces Stock Market Gains: What You Should Know	In the latest trading session, Alcoa (AA) closed at $42.63, marking a +1.28% move from the previous day. This change outpaced the S&P 500's 0.36% gain on the day. At the same time, the Dow added 0.23%, and the tech-heavy Nasdaq lost 0.1%. Prior to today's trading, shares of the bauxite, alumina and aluminum products company had lost 35.75% over the past month. This has lagged the Industrial Products sector's loss of 12.6% and the S&P 500's loss of 6.59% in that time. Wall Street will be looking for positivity from Alcoa as it approaches its next earnings report date. This is expected to be July 20, 2022. In that report, analysts expect Alcoa to post earnings of $3.26 per share. This would mark year-over-year growth of 118.79%. Meanwhile, our latest consensus estimate is calling for revenue of $3.77 billion, up 33.1% from the prior-year quarter. AA's full-year Zacks Consensus Estimates are calling for earnings of $10.25 per share and revenue of $14.39 billion. These results would represent year-over-year changes of +50.07% and +18.42%, respectively. Any recent changes to analyst estimates for Alcoa should also be noted by investors. These revisions help to show the ever-changing nature of near-term business trends. With this in mind, we can consider positive estimate revisions a sign of optimism about the company's business outlook. Our research shows that these estimate changes are directly correlated with near-term stock prices. To benefit from this, we have developed the Zacks Rank, a proprietary model which takes these estimate changes into account and provides an actionable rating system. The Zacks Rank system ranges from #1 (Strong Buy) to #5 (Strong Sell). It has a remarkable, outside-audited track record of success, with #1 stocks delivering an average annual return of +25% since 1988. Within the past 30 days, our consensus EPS projection has moved 18.14% lower. Alcoa currently has a Zacks Rank of #5 (Strong Sell). Digging into valuation, Alcoa currently has a Forward P/E ratio of 4.11. This valuation marks a discount compared to its industry's average Forward P/E of 5.36. Investors should also note that AA has a PEG ratio of 0.47 right now. The PEG ratio is similar to the widely-used P/E ratio, but this metric also takes the company's expected earnings growth rate into account. AA's industry had an average PEG ratio of 0.47 as of yesterday's close. The Metal Products - Distribution industry is part of the Industrial Products sector. This group has a Zacks Industry Rank of 91, putting it in the top 37% of all 250+ industries. The Zacks Industry Rank gauges the strength of our individual industry groups by measuring the average Zacks Rank of the individual stocks within the groups. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1. Make sure to utilize Zacks.com to follow all of these stock-moving metrics, and more, in the coming trading sessions. Zacks Names "Single Best Pick to Double" From thousands of stocks, 5 Zacks experts each have chosen their favorite to skyrocket +100% or more in months to come. From those 5, Director of Research Sheraz Mian hand-picks one to have the most explosive upside of all. It’s a little-known chemical company that’s up 65% over last year, yet still dirt cheap. With unrelenting demand, soaring 2022 earnings estimates, and $1.5 billion for repurchasing shares, retail investors could jump in at any time. This company could rival or surpass other recent Zacks’ Stocks Set to Double like Boston Beer Company which shot up +143.0% in little more than 9 months and NVIDIA which boomed +175.9% in one year. Free: See Our Top Stock and 4 Runners Up >> Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report Alcoa (AA): Free Stock Analysis Report To read this article on Zacks.com click here. The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
2022-07-05 00:00:00+00:00	AA	Should Schwab U.S. SmallCap ETF (SCHA) Be on Your Investing Radar?	Launched on 11/03/2009, the Schwab U.S. SmallCap ETF (SCHA) is a passively managed exchange traded fund designed to provide a broad exposure to the Small Cap Blend segment of the US equity market. The fund is sponsored by Charles Schwab. It has amassed assets over $13.65 billion, making it one of the largest ETFs attempting to match the Small Cap Blend segment of the US equity market. Why Small Cap Blend With more potential comes more risk, and small cap companies, with market capitalization below $2 billion, epitomizes this way of thinking. Blend ETFs are aptly named, since they tend to hold a mix of growth and value stocks, as well as show characteristics of both kinds of equities. Costs Since cheaper funds tend to produce better results than more expensive funds, assuming all other factors remain equal, it is important for investors to pay attention to an ETF's expense ratio. Annual operating expenses for this ETF are 0.04%, making it the least expensive products in the space. It has a 12-month trailing dividend yield of 1.54%. Sector Exposure and Top Holdings ETFs offer a diversified exposure and thus minimize single stock risk but it is still important to delve into a fund's holdings before investing. Most ETFs are very transparent products and many disclose their holdings on a daily basis. This ETF has heaviest allocation to the Financials sector--about 17.80% of the portfolio. Industrials and Healthcare round out the top three. Looking at individual holdings, Alcoa Corp (AA) accounts for about 0.41% of total assets, followed by Zoominfo Technologies Inc Class A (ZI) and Builders Firstsource Inc (BLDR). The top 10 holdings account for about 3.31% of total assets under management. Performance and Risk SCHA seeks to match the performance of the Dow Jones U.S. Small-Cap Total Stock Market Index before fees and expenses. The Dow Jones U.S. Small-Cap Total Stock Market Index includes the small-cap portion of the Dow Jones U.S. Total Stock Market Index actually available to investors in the marketplace. The ETF has lost about -23.26% so far this year and is down about -22.92% in the last one year (as of 07/05/2022). In the past 52-week period, it has traded between $37.88 and $55.07. The ETF has a beta of 1.18 and standard deviation of 29.95% for the trailing three-year period, making it a medium risk choice in the space. With about 1795 holdings, it effectively diversifies company-specific risk. Alternatives Schwab U.S. SmallCap ETF carries a Zacks ETF Rank of 3 (Hold), which is based on expected asset class return, expense ratio, and momentum, among other factors. Thus, SCHA is a good option for those seeking exposure to the Style Box - Small Cap Blend area of the market. Investors might also want to consider some other ETF options in the space. The iShares Russell 2000 ETF (IWM) and the iShares Core S&P SmallCap ETF (IJR) track a similar index. While iShares Russell 2000 ETF has $52.10 billion in assets, iShares Core S&P SmallCap ETF has $60.50 billion. IWM has an expense ratio of 0.19% and IJR charges 0.06%. Bottom-Line An increasingly popular option among retail and institutional investors, passively managed ETFs offer low costs, transparency, flexibility, and tax efficiency; they are also excellent vehicles for long term investors. To learn more about this product and other ETFs, screen for products that match your investment objectives and read articles on latest developments in the ETF investing universe, please visit Zacks ETF Center. Want key ETF info delivered straight to your inbox? Zacks’ free Fund Newsletter will brief you on top news and analysis, as well as top-performing ETFs, each week. Get it free >> Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report Schwab U.S. SmallCap ETF (SCHA): ETF Research Reports Alcoa (AA): Free Stock Analysis Report Builders FirstSource, Inc. (BLDR): Free Stock Analysis Report iShares Russell 2000 ETF (IWM): ETF Research Reports iShares Core S&P SmallCap ETF (IJR): ETF Research Reports ZoomInfo Technologies Inc. (ZI): Free Stock Analysis Report To read this article on Zacks.com click here. Zacks Investment Research The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
2022-07-05 00:00:00+00:00	AA	Should SPDR S&P MidCap 400 ETF (MDY) Be on Your Investing Radar?	Launched on 05/04/1995, the SPDR S&P MidCap 400 ETF (MDY) is a passively managed exchange traded fund designed to provide a broad exposure to the Mid Cap Blend segment of the US equity market. The fund is sponsored by State Street Global Advisors. It has amassed assets over $17.14 billion, making it one of the larger ETFs attempting to match the Mid Cap Blend segment of the US equity market. Why Mid Cap Blend Compared to large and small cap companies, mid cap businesses tend to have higher growth prospects and are less volatile, respectively, with market capitalization between $2 billion and $10 billion. Thus, companies that fall under this category provide a stable and growth-heavy investment. Typically holding a combination of both growth and value stocks, blend ETFs also demonstrate qualities seen in value and growth investments. Costs Since cheaper funds tend to produce better results than more expensive funds, assuming all other factors remain equal, it is important for investors to pay attention to an ETF's expense ratio. Annual operating expenses for this ETF are 0.22%, putting it on par with most peer products in the space. It has a 12-month trailing dividend yield of 1.28%. Sector Exposure and Top Holdings While ETFs offer diversified exposure, which minimizes single stock risk, a deep look into a fund's holdings is a valuable exercise. And, most ETFs are very transparent products that disclose their holdings on a daily basis. This ETF has heaviest allocation to the Industrials sector--about 18.40% of the portfolio. Financials and Consumer Discretionary round out the top three. Looking at individual holdings, Camden Property Trust (CPT) accounts for about 0.74% of total assets, followed by Targa Resources Corp. (TRGP) and Alcoa Corporation (AA). The top 10 holdings account for about 6.1% of total assets under management. Performance and Risk MDY seeks to match the performance of the S&P MidCap 400 Index before fees and expenses. The S&P MidCap 400 Index is composed of 400 selected stocks listed on national stock exchanges, and spans a broad range of major industry groups. The ETF has lost about -18.83% so far this year and is down about -14.08% in the last one year (as of 07/05/2022). In the past 52-week period, it has traded between $402.57 and $531.03. The ETF has a beta of 1.12 and standard deviation of 28.79% for the trailing three-year period, making it a medium risk choice in the space. With about 401 holdings, it effectively diversifies company-specific risk. Alternatives SPDR S&P MidCap 400 ETF carries a Zacks ETF Rank of 3 (Hold), which is based on expected asset class return, expense ratio, and momentum, among other factors. Thus, MDY is a reasonable option for those seeking exposure to the Style Box - Mid Cap Blend area of the market. Investors might also want to consider some other ETF options in the space. The Vanguard MidCap ETF (VO) and the iShares Core S&P MidCap ETF (IJH) track a similar index. While Vanguard MidCap ETF has $46.92 billion in assets, iShares Core S&P MidCap ETF has $56.45 billion. VO has an expense ratio of 0.04% and IJH charges 0.05%. Bottom-Line Passively managed ETFs are becoming increasingly popular with institutional as well as retail investors due to their low cost, transparency, flexibility and tax efficiency. They are excellent vehicles for long term investors. To learn more about this product and other ETFs, screen for products that match your investment objectives and read articles on latest developments in the ETF investing universe, please visit Zacks ETF Center. Want key ETF info delivered straight to your inbox? Zacks’ free Fund Newsletter will brief you on top news and analysis, as well as top-performing ETFs, each week. Get it free >> Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report SPDR S&P MidCap 400 ETF (MDY): ETF Research Reports Alcoa (AA): Free Stock Analysis Report Camden Property Trust (CPT): Free Stock Analysis Report Targa Resources, Inc. (TRGP): Free Stock Analysis Report iShares Core S&P MidCap ETF (IJH): ETF Research Reports Vanguard MidCap ETF (VO): ETF Research Reports To read this article on Zacks.com click here. Zacks Investment Research The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
2022-07-05 00:00:00+00:00	AA	Alcoa (AA) is Attracting Investor Attention: Here is What You Should Know	Alcoa (AA) has recently been on Zacks.com's list of the most searched stocks. Therefore, you might want to consider some of the key factors that could influence the stock's performance in the near future. Over the past month, shares of this bauxite, alumina and aluminum products company have returned -30.1%, compared to the Zacks S&P 500 composite's -6.8% change. During this period, the Zacks Metal Products - Distribution industry, which Alcoa falls in, has lost 17.5%. The key question now is: What could be the stock's future direction? While media releases or rumors about a substantial change in a company's business prospects usually make its stock 'trending' and lead to an immediate price change, there are always some fundamental facts that eventually dominate the buy-and-hold decision-making. Earnings Estimate Revisions Here at Zacks, we prioritize appraising the change in the projection of a company's future earnings over anything else. That's because we believe the present value of its future stream of earnings is what determines the fair value for its stock. We essentially look at how sell-side analysts covering the stock are revising their earnings estimates to reflect the impact of the latest business trends. And if earnings estimates go up for a company, the fair value for its stock goes up. A higher fair value than the current market price drives investors' interest in buying the stock, leading to its price moving higher. This is why empirical research shows a strong correlation between trends in earnings estimate revisions and near-term stock price movements. Alcoa is expected to post earnings of $3.26 per share for the current quarter, representing a year-over-year change of +118.8%. Over the last 30 days, the Zacks Consensus Estimate has changed -14.3%. For the current fiscal year, the consensus earnings estimate of $10.25 points to a change of +50.1% from the prior year. Over the last 30 days, this estimate has changed -18.1%. For the next fiscal year, the consensus earnings estimate of $11.54 indicates a change of +12.6% from what Alcoa is expected to report a year ago. Over the past month, the estimate has changed +2.4%. With an impressive externally audited track record, our proprietary stock rating tool -- the Zacks Rank -- is a more conclusive indicator of a stock's near-term price performance, as it effectively harnesses the power of earnings estimate revisions. The size of the recent change in the consensus estimate, along with three other factors related to earnings estimates, has resulted in a Zacks Rank #5 (Strong Sell) for Alcoa. The chart below shows the evolution of the company's forward 12-month consensus EPS estimate: 12 Month EPS Revenue Growth Forecast While earnings growth is arguably the most superior indicator of a company's financial health, nothing happens as such if a business isn't able to grow its revenues. After all, it's nearly impossible for a company to increase its earnings for an extended period without increasing its revenues. So, it's important to know a company's potential revenue growth. In the case of Alcoa, the consensus sales estimate of $3.77 billion for the current quarter points to a year-over-year change of +33.1%. The $14.39 billion and $14.56 billion estimates for the current and next fiscal years indicate changes of +18.4% and +1.2%, respectively. Last Reported Results and Surprise History Alcoa reported revenues of $3.29 billion in the last reported quarter, representing a year-over-year change of +14.7%. EPS of $3.06 for the same period compares with $0.79 a year ago. Compared to the Zacks Consensus Estimate of $3.5 billion, the reported revenues represent a surprise of -5.8%. The EPS surprise was +2.34%. The company beat consensus EPS estimates in each of the trailing four quarters. The company topped consensus revenue estimates three times over this period. Valuation No investment decision can be efficient without considering a stock's valuation. Whether a stock's current price rightly reflects the intrinsic value of the underlying business and the company's growth prospects is an essential determinant of its future price performance. Comparing the current value of a company's valuation multiples, such as its price-to-earnings (P/E), price-to-sales (P/S), and price-to-cash flow (P/CF), to its own historical values helps ascertain whether its stock is fairly valued, overvalued, or undervalued, whereas comparing the company relative to its peers on these parameters gives a good sense of how reasonable its stock price is. As part of the Zacks Style Scores system, the Zacks Value Style Score (which evaluates both traditional and unconventional valuation metrics) organizes stocks into five groups ranging from A to F (A is better than B; B is better than C; and so on), making it helpful in identifying whether a stock is overvalued, rightly valued, or temporarily undervalued. Alcoa is graded A on this front, indicating that it is trading at a discount to its peers. Click here to see the values of some of the valuation metrics that have driven this grade. Bottom Line The facts discussed here and much other information on Zacks.com might help determine whether or not it's worthwhile paying attention to the market buzz about Alcoa. However, its Zacks Rank #5 does suggest that it may underperform the broader market in the near term. How to Profit from the Hot Electric Vehicle Industry Global electric car sales in 2021 more than doubled their 2020 numbers. And today, the electric vehicle (EV) technology and very nature of the business is changing quickly. The next push for future technologies is happening now and investors who get in early could see exceptional profits. See Zacks' Top Stocks to Profit from the EV Revolution >> Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report Alcoa (AA): Free Stock Analysis Report To read this article on Zacks.com click here. The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
2022-07-05 00:00:00+00:00	AA	New Strong Sell Stocks for July 5th	Here are three stocks added to the Zacks Rank #5 (Strong Sell) List today: Alcoa Corporation AA produces and sells bauxite, alumina, and aluminum products. The Zacks Consensus Estimate for its current year earnings has been revised 18.1% downward over the last 60 days. Equinox Gold Corp. EQX engages in the exploration and development of mineral properties. The Zacks Consensus Estimate for its current year earnings has been revised 22.6% downward over the last 60 days. Patrick Industries, Inc. PATK engages in the manufacturing of component products and distribution of building products. The Zacks Consensus Estimate for its current year earnings has been revised 2.6% downward over the last 60 days. View the entire Zacks Rank #5 List. How to Profit from the Hot Electric Vehicle Industry Global electric car sales in 2021 more than doubled their 2020 numbers. And today, the electric vehicle (EV) technology and very nature of the business is changing quickly. The next push for future technologies is happening now and investors who get in early could see exceptional profits. See Zacks' Top Stocks to Profit from the EV Revolution >> Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report Alcoa (AA): Free Stock Analysis Report Patrick Industries, Inc. (PATK): Free Stock Analysis Report Equinox Gold Corp. (EQX): Free Stock Analysis Report To read this article on Zacks.com click here. Zacks Investment Research The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
2022-07-01 00:00:00+00:00	AA	Notable Friday Option Activity: CLX, AA, JPM	Among the underlying components of the Russell 3000 index, we saw noteworthy options trading volume today in Clorox Co (Symbol: CLX), where a total of 7,734 contracts have traded so far, representing approximately 773,400 underlying shares. That amounts to about 50.9% of CLX's average daily trading volume over the past month of 1.5 million shares. Especially high volume was seen for the $85 strike put option expiring July 22, 2022, with 1,645 contracts trading so far today, representing approximately 164,500 underlying shares of CLX. Below is a chart showing CLX's trailing twelve month trading history, with the $85 strike highlighted in orange: Alcoa Corporation (Symbol: AA) saw options trading volume of 31,924 contracts, representing approximately 3.2 million underlying shares or approximately 49.7% of AA's average daily trading volume over the past month, of 6.4 million shares. Especially high volume was seen for the $42 strike put option expiring July 01, 2022, with 2,650 contracts trading so far today, representing approximately 265,000 underlying shares of AA. Below is a chart showing AA's trailing twelve month trading history, with the $42 strike highlighted in orange: And JPMorgan Chase & Co (Symbol: JPM) saw options trading volume of 60,867 contracts, representing approximately 6.1 million underlying shares or approximately 47.3% of JPM's average daily trading volume over the past month, of 12.9 million shares. Especially high volume was seen for the $80 strike put option expiring January 20, 2023, with 3,017 contracts trading so far today, representing approximately 301,700 underlying shares of JPM. Below is a chart showing JPM's trailing twelve month trading history, with the $80 strike highlighted in orange: For the various different available expirations for CLX options, AA options, or JPM options, visit StockOptionsChannel.com. Today's Most Active Call & Put Options of the S&P 500 » The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
2022-06-30 00:00:00+00:00	AA	AA August 12th Options Begin Trading	Investors in Alcoa Corporation (Symbol: AA) saw new options become available today, for the August 12th expiration. At Stock Options Channel, our YieldBoost formula has looked up and down the AA options chain for the new August 12th contracts and identified one put and one call contract of particular interest. The put contract at the $44.00 strike price has a current bid of $4.10. If an investor was to sell-to-open that put contract, they are committing to purchase the stock at $44.00, but will also collect the premium, putting the cost basis of the shares at $39.90 (before broker commissions). To an investor already interested in purchasing shares of AA, that could represent an attractive alternative to paying $44.73/share today. Because the $44.00 strike represents an approximate 2% discount to the current trading price of the stock (in other words it is out-of-the-money by that percentage), there is also the possibility that the put contract would expire worthless. The current analytical data (including greeks and implied greeks) suggest the current odds of that happening are 99%. Stock Options Channel will track those odds over time to see how they change, publishing a chart of those numbers on our website under the contract detail page for this contract. Should the contract expire worthless, the premium would represent a 9.32% return on the cash commitment, or 79.10% annualized — at Stock Options Channel we call this the YieldBoost. Below is a chart showing the trailing twelve month trading history for Alcoa Corporation, and highlighting in green where the $44.00 strike is located relative to that history: Turning to the calls side of the option chain, the call contract at the $45.00 strike price has a current bid of $4.25. If an investor was to purchase shares of AA stock at the current price level of $44.73/share, and then sell-to-open that call contract as a "covered call," they are committing to sell the stock at $45.00. Considering the call seller will also collect the premium, that would drive a total return (excluding dividends, if any) of 10.11% if the stock gets called away at the August 12th expiration (before broker commissions). Of course, a lot of upside could potentially be left on the table if AA shares really soar, which is why looking at the trailing twelve month trading history for Alcoa Corporation, as well as studying the business fundamentals becomes important. Below is a chart showing AA's trailing twelve month trading history, with the $45.00 strike highlighted in red: Considering the fact that the $45.00 strike represents an approximate 1% premium to the current trading price of the stock (in other words it is out-of-the-money by that percentage), there is also the possibility that the covered call contract would expire worthless, in which case the investor would keep both their shares of stock and the premium collected. The current analytical data (including greeks and implied greeks) suggest the current odds of that happening are 99%. On our website under the contract detail page for this contract, Stock Options Channel will track those odds over time to see how they change and publish a chart of those numbers (the trading history of the option contract will also be charted). Should the covered call contract expire worthless, the premium would represent a 9.50% boost of extra return to the investor, or 80.65% annualized, which we refer to as the YieldBoost. Meanwhile, we calculate the actual trailing twelve month volatility (considering the last 252 trading day closing values as well as today's price of $44.73) to be 65%. For more put and call options contract ideas worth looking at, visit StockOptionsChannel.com. Top YieldBoost Calls of the S&P 500 » The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
2022-06-29 00:00:00+00:00	AA	Some Japanese buyers agree to Q3 aluminium premium of $148/T, down 14% from Q2	TOKYO, June 29 (Reuters) - Some Japanese aluminium buyers have agreed at least with two global producers to pay a premium of $148 a tonne over the benchmark price for July-September shipments, down 14% from the current quarter, two sources directly involved in the pricing talks said on Wednesday. The figure is lower than the $172 per tonne paid in the April-June quarter and marks a third consecutive quarterly drop. It is also below initial offers of $172-$177 made by producers. Japan is Asia's biggest importer of aluminium and the premiums PREM-ALUM-JP for primary metal shipments it agrees to pay each quarter over the benchmark London Metal Exchange (LME) cash price CMAL0 set the benchmark for the region. (Reporting by Yuka Obayashi, Editing by Louise Heavens) ((Yuka.Obayashi@thomsonreuters.com; +813-4520-1265;)) The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
2022-06-26 00:00:00+00:00	AA	With Aluminum Prices On The Decline, What Next For Alcoa?	The shares of Alcoa (NYSE: AA) – a leading producer of aluminum products and alumina – remain down by about 19% year-to-date and are off by around 49% from highs seen in March. The sell-off comes as multiple macroeconomic factors appear to be putting the breaks on the big rally in aluminum prices seen through Covid-19. Aluminum prices are down from a high of about $3,700 per metric ton in early March 2022 and $2,850 in January to just about $2,500 currently. There are a couple of factors impacting the near-term demand outlook for aluminum, including China’s zero-Covid policy, which has resulted in stringent lockdowns in several provinces hurting demand. Moreover, the U.S. Federal Reserve and other global central banks have also been hiking interest rates at a more aggressive pace to combat surging inflation, and the markets are increasingly betting that this will hurt economic growth rates and demand for industrial commodities. Now, Alcoa has actually been posting stellar results in recent quarters. Over Q1 2022, Alcoa’s revenue rose 15% year-over-year with adjusted EPS growing by almost 4x year-over-year to $3.06 per share, driven by strong pricing despite lower production. Consensus estimates point to earnings of about $11 per share for the full year, meaning that the stock trades at just about 4.5x forward earnings at the current market price of about $48 per share. Although cyclical stocks typically see lower multiples when the markets project that earnings and revenues are approaching a near-term peak, there are a couple of trends that still make Alcoa stock a good value. The EIA’s lower benchmark oil projections for 2023 and prospects of leniency in China’s Zero-Covid policy after Shanghai’s announcement to end lockdowns, may help demand to a certain extent if China’s industrial output picks up. Moreover, aluminum’s diverse utility across multiple industries and rising investments in the renewable energy sector including electric vehicles, charging infrastructure, and solar & wind power plants remain secular drivers for the aluminum industry. We also think that Alcoa could also have an edge over rivals for a couple of reasons. Firstly, the company has a strong balance sheet (net debt of just about $250 million). Moreover, Alcoa’s facilities are largely based in the U.S. and this helps the company lower its energy costs compared to European rivals who are highly dependent on Russian natural gas. See our analysis of Alcoa valuation for a closer look at what’s driving our $60 price estimate for Alcoa and how Alcoa’s valuation compares with peers. What if you’re looking for a more balanced portfolio instead? Our high-quality portfolio and multi-strategy portfolio have beaten the market consistently since the end of 2016. Invest with Trefis Market Beating Portfolios See all Trefis Price Estimates The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
2022-06-24 00:00:00+00:00	AA	XME, ARCH, RGLD, AA: Large Outflows Detected at ETF	Looking today at week-over-week shares outstanding changes among the universe of ETFs covered at ETF Channel, one standout is the SPDR S&P Metals & Mining ETF (Symbol: XME) where we have detected an approximate $159.7 million dollar outflow -- that's a 6.8% decrease week over week (from 53,850,000 to 50,200,000). Among the largest underlying components of XME, in trading today Arch Resources Inc (Symbol: ARCH) is up about 3.4%, Royal Gold Inc (Symbol: RGLD) is up about 1.3%, and Alcoa Corporation (Symbol: AA) is up by about 5%. For a complete list of holdings, visit the XME Holdings page » The chart below shows the one year price performance of XME, versus its 200 day moving average: Looking at the chart above, XME's low point in its 52 week range is $38.65 per share, with $66.63 as the 52 week high point — that compares with a last trade of $45.68. Comparing the most recent share price to the 200 day moving average can also be a useful technical analysis technique -- learn more about the 200 day moving average ». Exchange traded funds (ETFs) trade just like stocks, but instead of ''shares'' investors are actually buying and selling ''units''. These ''units'' can be traded back and forth just like stocks, but can also be created or destroyed to accommodate investor demand. Each week we monitor the week-over-week change in shares outstanding data, to keep a lookout for those ETFs experiencing notable inflows (many new units created) or outflows (many old units destroyed). Creation of new units will mean the underlying holdings of the ETF need to be purchased, while destruction of units involves selling underlying holdings, so large flows can also impact the individual components held within ETFs. Click here to find out which 9 other ETFs experienced notable outflows » The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
2022-06-24 00:00:00+00:00	AA	Alcoa (AA) Is a Trending Stock: Facts to Know Before Betting on It	Alcoa (AA) has recently been on Zacks.com's list of the most searched stocks. Therefore, you might want to consider some of the key factors that could influence the stock's performance in the near future. Over the past month, shares of this bauxite, alumina and aluminum products company have returned -25.8%, compared to the Zacks S&P 500 composite's -4.3% change. During this period, the Zacks Metal Products - Distribution industry, which Alcoa falls in, has lost 17.3%. The key question now is: What could be the stock's future direction? Although media reports or rumors about a significant change in a company's business prospects usually cause its stock to trend and lead to an immediate price change, there are always certain fundamental factors that ultimately drive the buy-and-hold decision. Revisions to Earnings Estimates Rather than focusing on anything else, we at Zacks prioritize evaluating the change in a company's earnings projection. This is because we believe the fair value for its stock is determined by the present value of its future stream of earnings. We essentially look at how sell-side analysts covering the stock are revising their earnings estimates to reflect the impact of the latest business trends. And if earnings estimates go up for a company, the fair value for its stock goes up. A higher fair value than the current market price drives investors' interest in buying the stock, leading to its price moving higher. This is why empirical research shows a strong correlation between trends in earnings estimate revisions and near-term stock price movements. Alcoa is expected to post earnings of $3.71 per share for the current quarter, representing a year-over-year change of +149%. Over the last 30 days, the Zacks Consensus Estimate has changed +1.5%. The consensus earnings estimate of $11.61 for the current fiscal year indicates a year-over-year change of +70%. This estimate has changed -7.2% over the last 30 days. For the next fiscal year, the consensus earnings estimate of $11.82 indicates a change of +1.8% from what Alcoa is expected to report a year ago. Over the past month, the estimate has changed +5%. Having a strong externally audited track record, our proprietary stock rating tool, the Zacks Rank, offers a more conclusive picture of a stock's price direction in the near term, since it effectively harnesses the power of earnings estimate revisions. Due to the size of the recent change in the consensus estimate, along with three other factors related to earnings estimates, Alcoa is rated Zacks Rank #3 (Hold). The chart below shows the evolution of the company's forward 12-month consensus EPS estimate: 12 Month EPS Revenue Growth Forecast Even though a company's earnings growth is arguably the best indicator of its financial health, nothing much happens if it cannot raise its revenues. It's almost impossible for a company to grow its earnings without growing its revenue for long periods. Therefore, knowing a company's potential revenue growth is crucial. For Alcoa, the consensus sales estimate for the current quarter of $3.88 billion indicates a year-over-year change of +37%. For the current and next fiscal years, $15.05 billion and $15.24 billion estimates indicate +23.8% and +1.3% changes, respectively. Last Reported Results and Surprise History Alcoa reported revenues of $3.29 billion in the last reported quarter, representing a year-over-year change of +14.7%. EPS of $3.06 for the same period compares with $0.79 a year ago. Compared to the Zacks Consensus Estimate of $3.5 billion, the reported revenues represent a surprise of -5.8%. The EPS surprise was +2.34%. The company beat consensus EPS estimates in each of the trailing four quarters. The company topped consensus revenue estimates three times over this period. Valuation Without considering a stock's valuation, no investment decision can be efficient. In predicting a stock's future price performance, it's crucial to determine whether its current price correctly reflects the intrinsic value of the underlying business and the company's growth prospects. Comparing the current value of a company's valuation multiples, such as its price-to-earnings (P/E), price-to-sales (P/S), and price-to-cash flow (P/CF), to its own historical values helps ascertain whether its stock is fairly valued, overvalued, or undervalued, whereas comparing the company relative to its peers on these parameters gives a good sense of how reasonable its stock price is. As part of the Zacks Style Scores system, the Zacks Value Style Score (which evaluates both traditional and unconventional valuation metrics) organizes stocks into five groups ranging from A to F (A is better than B; B is better than C; and so on), making it helpful in identifying whether a stock is overvalued, rightly valued, or temporarily undervalued. Alcoa is graded A on this front, indicating that it is trading at a discount to its peers. Click here to see the values of some of the valuation metrics that have driven this grade. Conclusion The facts discussed here and much other information on Zacks.com might help determine whether or not it's worthwhile paying attention to the market buzz about Alcoa. However, its Zacks Rank #3 does suggest that it may perform in line with the broader market in the near term. Zacks Names "Single Best Pick to Double" From thousands of stocks, 5 Zacks experts each have chosen their favorite to skyrocket +100% or more in months to come. From those 5, Director of Research Sheraz Mian hand-picks one to have the most explosive upside of all. It’s a little-known chemical company that’s up 65% over last year, yet still dirt cheap. With unrelenting demand, soaring 2022 earnings estimates, and $1.5 billion for repurchasing shares, retail investors could jump in at any time. This company could rival or surpass other recent Zacks’ Stocks Set to Double like Boston Beer Company which shot up +143.0% in little more than 9 months and NVIDIA which boomed +175.9% in one year. Free: See Our Top Stock and 4 Runners Up >> Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report Alcoa (AA): Free Stock Analysis Report To read this article on Zacks.com click here. The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
2022-06-22 00:00:00+00:00	AA	Should iShares MSCI USA SmallCap Multifactor ETF (SMLF) Be on Your Investing Radar?	Designed to provide broad exposure to the Small Cap Blend segment of the US equity market, the iShares MSCI USA SmallCap Multifactor ETF (SMLF) is a passively managed exchange traded fund launched on 04/28/2015. The fund is sponsored by Blackrock. It has amassed assets over $898.46 million, making it one of the larger ETFs attempting to match the Small Cap Blend segment of the US equity market. Why Small Cap Blend With more potential comes more risk, and small cap companies, with market capitalization below $2 billion, epitomizes this way of thinking. Blend ETFs are aptly named, since they tend to hold a mix of growth and value stocks, as well as show characteristics of both kinds of equities. Costs Cost is an important factor in selecting the right ETF, and cheaper funds can significantly outperform their more expensive counterparts if all other fundamentals are the same. Annual operating expenses for this ETF are 0.30%, putting it on par with most peer products in the space. It has a 12-month trailing dividend yield of 1.37%. Sector Exposure and Top Holdings While ETFs offer diversified exposure, which minimizes single stock risk, a deep look into a fund's holdings is a valuable exercise. And, most ETFs are very transparent products that disclose their holdings on a daily basis. This ETF has heaviest allocation to the Healthcare sector--about 17.60% of the portfolio. Information Technology and Consumer Discretionary round out the top three. Looking at individual holdings, Marathon Oil Corp (MRO) accounts for about 1.81% of total assets, followed by Alcoa Corp (AA) and Jones Lang Lasalle Inc (JLL). The top 10 holdings account for about 11.72% of total assets under management. Performance and Risk SMLF seeks to match the performance of the MSCI USA Small Cap Diversified Multiple-Factor Index before fees and expenses. The MSCI USA Small Cap Diversified Multiple-Factor Index is designed to select equity securities from MSCI USA Small Cap Index that have high exposure to four investment style factors: value, quality, momentum and low size. The ETF has lost about -17.97% so far this year and is down about -10.98% in the last one year (as of 06/22/2022). In the past 52-week period, it has traded between $46.10 and $59.93. The ETF has a beta of 1.07 and standard deviation of 28.28% for the trailing three-year period, making it a high risk choice in the space. With about 501 holdings, it effectively diversifies company-specific risk. Alternatives IShares MSCI USA SmallCap Multifactor ETF carries a Zacks ETF Rank of 3 (Hold), which is based on expected asset class return, expense ratio, and momentum, among other factors. Thus, SMLF is a reasonable option for those seeking exposure to the Style Box - Small Cap Blend area of the market. Investors might also want to consider some other ETF options in the space. The iShares Russell 2000 ETF (IWM) and the iShares Core S&P SmallCap ETF (IJR) track a similar index. While iShares Russell 2000 ETF has $52.51 billion in assets, iShares Core S&P SmallCap ETF has $58.88 billion. IWM has an expense ratio of 0.19% and IJR charges 0.06%. Bottom-Line An increasingly popular option among retail and institutional investors, passively managed ETFs offer low costs, transparency, flexibility, and tax efficiency; they are also excellent vehicles for long term investors. To learn more about this product and other ETFs, screen for products that match your investment objectives and read articles on latest developments in the ETF investing universe, please visit Zacks ETF Center. Want key ETF info delivered straight to your inbox? Zacks’ free Fund Newsletter will brief you on top news and analysis, as well as top-performing ETFs, each week. Get it free >> Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report iShares MSCI USA SmallCap Multifactor ETF (SMLF): ETF Research Reports Marathon Oil Corporation (MRO): Free Stock Analysis Report Alcoa (AA): Free Stock Analysis Report Jones Lang LaSalle Incorporated (JLL): Free Stock Analysis Report iShares Russell 2000 ETF (IWM): ETF Research Reports iShares Core S&P SmallCap ETF (IJR): ETF Research Reports To read this article on Zacks.com click here. The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
2022-06-20 00:00:00+00:00	AA	Alcoa (AA) Stock Sinks As Market Gains: What You Should Know	Alcoa (AA) closed the most recent trading day at $49.28, moving -0.81% from the previous trading session. This change lagged the S&P 500's 0.22% gain on the day. Meanwhile, the Dow lost 0.13%, and the Nasdaq, a tech-heavy index, added 0.22%. Heading into today, shares of the bauxite, alumina and aluminum products company had lost 18.64% over the past month, lagging the Industrial Products sector's loss of 11.34% and the S&P 500's loss of 10.02% in that time. Alcoa will be looking to display strength as it nears its next earnings release. In that report, analysts expect Alcoa to post earnings of $3.71 per share. This would mark year-over-year growth of 148.99%. Meanwhile, the Zacks Consensus Estimate for revenue is projecting net sales of $3.88 billion, up 37% from the year-ago period. AA's full-year Zacks Consensus Estimates are calling for earnings of $11.61 per share and revenue of $15.05 billion. These results would represent year-over-year changes of +69.99% and +23.81%, respectively. Investors might also notice recent changes to analyst estimates for Alcoa. These revisions typically reflect the latest short-term business trends, which can change frequently. As such, positive estimate revisions reflect analyst optimism about the company's business and profitability. Research indicates that these estimate revisions are directly correlated with near-term share price momentum. To benefit from this, we have developed the Zacks Rank, a proprietary model which takes these estimate changes into account and provides an actionable rating system. Ranging from #1 (Strong Buy) to #5 (Strong Sell), the Zacks Rank system has a proven, outside-audited track record of outperformance, with #1 stocks returning an average of +25% annually since 1988. Over the past month, the Zacks Consensus EPS estimate has moved 7.22% lower. Alcoa is currently a Zacks Rank #3 (Hold). Investors should also note Alcoa's current valuation metrics, including its Forward P/E ratio of 4.24. This valuation marks a discount compared to its industry's average Forward P/E of 5.74. Investors should also note that AA has a PEG ratio of 0.49 right now. This metric is used similarly to the famous P/E ratio, but the PEG ratio also takes into account the stock's expected earnings growth rate. The Metal Products - Distribution was holding an average PEG ratio of 0.49 at yesterday's closing price. The Metal Products - Distribution industry is part of the Industrial Products sector. This group has a Zacks Industry Rank of 28, putting it in the top 12% of all 250+ industries. The Zacks Industry Rank gauges the strength of our industry groups by measuring the average Zacks Rank of the individual stocks within the groups. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1. You can find more information on all of these metrics, and much more, on Zacks.com. Just Released: Zacks Top 10 Stocks for 2022 In addition to the investment ideas discussed above, would you like to know about our 10 top picks for the entirety of 2022? From inception in 2012 through 2021, the Zacks Top 10 Stocks portfolios gained an impressive +1,001.2% versus the S&P 500’s +348.7%. Now our Director of Research has combed through 4,000 companies covered by the Zacks Rank and has handpicked the best 10 tickers to buy and hold. Don’t miss your chance to get in…because the sooner you do, the more upside you stand to grab. See Stocks Now >> Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report Alcoa (AA): Free Stock Analysis Report To read this article on Zacks.com click here. The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
2022-06-15 00:00:00+00:00	AA	Alcoa Investing $51 Mln At Its Mosjøen Smelter In Norway	(RTTNews) - Alcoa Corporation (AA), a major aluminum producer, on Wednesday announced a $51 million plan to raise the production capacity of aluminum at its Mosjøen smelter in Norway by 14,000 metric tons per year or mtpy. Alcoa's Mosjøen site currently has a nameplate capacity of 200,000 mtpy and the investment is expected to increase the existing capacity to 214,000 mtpy by the end of 2026. John Slaven, Alcoa's Chief Operations Officer, said: "…Mosjøen is already a top-performing asset in Alcoa's global system, and this investment reflects its operational excellence, the dedication of our employees, and the strong support from our many customers and community stakeholders." Once the project gets completed, then it will allow Mosjøen to supply high-quality, low-carbon aluminum. The Mosjøen smelter is run by renewable energy and produces rolling ingots and foundry alloys, including metal for Alcoa's SustanaTM line, a low-carbon product. The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
2022-06-15 00:00:00+00:00	AA	7 Undervalued Stocks That the Smart Money Is Piling Into	InvestorPlace - Stock Market News, Stock Advice & Trading Tips One piece of advice that’s good for all investors who are looking for undervalued stocks is to “follow the money.” But this doesn’t mean chasing stocks that are on their way up. It means paying attention to what stocks are getting interest from institutional investors, particularly when the market is down. Here’s how it works. Institutions have the liquidity to cause big moves in the market. They identify companies that they believe are going to make a big move and buy or sell in advance of those moves. Often times, the retail investor catches on too late. In a volatile market like this, that can lead to missing out on the best gains at best and being on the wrong side of a trade at worst. 7 Unstoppable Stocks to Own in 2022 In this article, we’ll take a look at seven undervalued stocks that are drawing interest from institutional investors but still have some upside according to analysts. AA Alcoa $48.59 NTR Nutrien $87.31 PFE Pfizer $47.75 MMM 3M $134.55 BWA BorgWarner $35.17 AIG American International Group $52.12 VALE Vale S.A. $15.87 Alcoa (AA) Source: Daniel J. Macy / Shutterstock.com While many bubbles have popped, commodity prices continue to climb. This includes the price of aluminum. That’s a large part of the bullish case for listing Alcoa (NYSE:AA) as an undervalued stock. As of the end of the first quarter, aluminum was double the price it was in 2020. One reason for the increased demand is that aluminum is a key component for the electric vehicle (EV) industry. Revenue and earnings are expected to peak this year and come down after that. However, over the next five years, both are expected to remain above pre-pandemic levels. Following a sharp sell-off that started in late March, AA stock is down 17% in 2022. For investors who look for fundamental metrics, AA stock has a price-to-book ratio of 2.4 and is trading at 5.1 times forward earnings. And institutional buyers have outnumbered sellers by 93% in the last 12 months with 76% more money flowing into the stock than being sold. Nutrien (NTR) Source: Pavel Kapysh/ShutterStock.com Nutrien (NYSE:NTR) provides another opportunity for investors looking for undervalued stocks. Like Alcoa, Nutrien is a play on the commodities boom. The Canadian-based company is the world’s leading manufacturer of potash and the third largest manufacturer of nitrogen fertilizer. Russian exports of fertilizer have ceased, and Nutrien is benefiting. To that end, the company has raised its earnings per share (EPS) estimates for the coming year. The company is forecasting EPS in a range of $16.20 to $18.70 for its full year 2022. 7 Nasdaq Stocks to Buy and Hold Forever Even if the company comes in at the low end of that estimate, it would be posting a 160% year-over-year gain from the prior year. Most analysts give NTR stock a buy rating with a price target of $118.28. And the company has a forward price-to-earnings ratio of 5.8. Pfizer (PFE) Source: Manuel Esteban / Shutterstock.com For obvious reasons related to its Covid-19 vaccine, Pfizer (NYSE:PFE) stock has seen strong growth over the last two years. Right now analysts suggest that the capital growth may be topping out. However, institutional buying remains very strong. In the last 12 months, there have only been about 33% more buyers than sellers. But those buyers are committed to the tune of 98% more inflows than outflows in PFE stock. One reason for this is the company’s pipeline. The long-term possibilities for mRNA vaccines are numerous and potentially game changing for patients with a number of conditions. Pfizer has always been good at generating free cash flow (FCF). And 2021 saw the company bring in a record $29.9 billion. That gives the company quite a war chest that it’s likely to use to bring other vaccines and therapeutics to market. 3M (MMM) Source: JPstock / Shutterstock.com 3M (NYSE:MMM) recently announced that it was expecting a $300 million decline in revenue in the current quarter and a corresponding decline of 30 cents per share. This is due to the Covid-19-related lockdowns in China, which have only recently begun to ease. This is complicating a supply chain that doesn’t need any more choke points. The broader concern is that this announcement makes it highly likely that 3M will post a second consecutive quarter with a YOY decline in revenue and earnings. However, that doesn’t appear to be keeping institutional investors away. In the last 12 months, institutional buyers have outnumbered sellers by 25% leading to 39% more money flowing into MMM stock than out of it. 7 Great Dividend Stocks Under $25 With a P/E ratio of 13.4, 3M has an appealing valuation. And the company continues to generate significant free cash flow to support its dividend. Speaking of which, the company is part of the select group of Dividend Kings, having increased its dividend in each of the last 63 years. BorgWarner (BWA) Source: Jonathan Weiss / Shutterstock.com At some point, investors will begin to buy back into the electric vehicle sector. When they do, BorgWarner (NYSE:BWA) is likely to be on their shopping list. BorgWarner is an automotive supplier that does business in several countries. And recently, the company announced that it will supply battery management system technology for commercial vehicles starting in 2023. BWA stock is likely flying under the radar of many investors. But it’s garnering plenty of interest from institutional investors. The stock has nearly 91% institutional ownership. BorgWarner is projected to grow earnings at a 15% annual rate over the next five years. That bodes well for investors because the company has no problem generating significant free cash flow and is committed to returning shareholder value. American International Group (AIG) Source: Evan El-Amin / Shutterstock The next of the undervalued stocks on my list shows that boring can be beautiful. American International Group (NYSE:AIG) is the definition of a defensive stock. And that’s reflected in the amount of interest by institutional investors. Institutional buying and selling has been close to 50/50 in the last 12 months, but the stock is still owned by a whopping 93% of institutional investors. The story that investors should pay attention to is earnings growth. 2021 was a banner year for the company, which reported 19% YoY topline growth. However, revenue projections for the next five years are relatively flat. That’s not unusual for insurance companies. 7 of the Hottest ETFs to Buy Right Now That being said, the company’s EPS is projected to rise at an attractive rate of over 18% over the next five years which should create plenty of upside for AIG stock. Vale S.A. (VALE) Source: rafapress / Shutterstock.com The last company on my list of undervalued stocks is Vale (NYSE:VALE). The mining company is the world’s largest nickel miner. And it recently secured a long-term deal with Tesla (NASDAQ:TSLA). But not only is the company supplying Tesla with nickel, it has a goal of supplying 30% to 40% of its class 1 nickel sales to the EV industry as a whole. In what’s becoming a theme of this article, VALE stock is up 13% for the year largely due to rising commodity prices. Institutional sentiment is still rather light, but it’s been growing. Institutions did sell-off VALE stock sharply in the first quarter, but that is likely due to the overall market volatility. However, it won’t be long until they pay attention to the price of nickel, which has more than doubled in the past two years. When they do, they’ll notice a company that continues to generate strong earnings. On the date of publication, Chris Markoch had a long position in MMM. The opinions expressed in this article are those of the writer, subject to the InvestorPlace.com Publishing Guidelines. The post 7 Undervalued Stocks That the Smart Money Is Piling Into appeared first on InvestorPlace. The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
2022-06-13 00:00:00+00:00	AA	Investors Heavily Search Alcoa (AA): Here is What You Need to Know	Alcoa (AA) has recently been on Zacks.com's list of the most searched stocks. Therefore, you might want to consider some of the key factors that could influence the stock's performance in the near future. Shares of this bauxite, alumina and aluminum products company have returned -9.1% over the past month versus the Zacks S&P 500 composite's -2.3% change. The Zacks Metal Products - Distribution industry, to which Alcoa belongs, has lost 1.3% over this period. Now the key question is: Where could the stock be headed in the near term? While media releases or rumors about a substantial change in a company's business prospects usually make its stock 'trending' and lead to an immediate price change, there are always some fundamental facts that eventually dominate the buy-and-hold decision-making. Revisions to Earnings Estimates Rather than focusing on anything else, we at Zacks prioritize evaluating the change in a company's earnings projection. This is because we believe the fair value for its stock is determined by the present value of its future stream of earnings. Our analysis is essentially based on how sell-side analysts covering the stock are revising their earnings estimates to take the latest business trends into account. When earnings estimates for a company go up, the fair value for its stock goes up as well. And when a stock's fair value is higher than its current market price, investors tend to buy the stock, resulting in its price moving upward. Because of this, empirical studies indicate a strong correlation between trends in earnings estimate revisions and short-term stock price movements. For the current quarter, Alcoa is expected to post earnings of $3.66 per share, indicating a change of +145.6% from the year-ago quarter. The Zacks Consensus Estimate remained unchanged over the last 30 days. For the current fiscal year, the consensus earnings estimate of $11.95 points to a change of +75% from the prior year. Over the last 30 days, this estimate has changed -4.6%. For the next fiscal year, the consensus earnings estimate of $11.26 indicates a change of -5.7% from what Alcoa is expected to report a year ago. Over the past month, the estimate has changed +109.8%. Having a strong externally audited track record, our proprietary stock rating tool, the Zacks Rank, offers a more conclusive picture of a stock's price direction in the near term, since it effectively harnesses the power of earnings estimate revisions. Due to the size of the recent change in the consensus estimate, along with three other factors related to earnings estimates, Alcoa is rated Zacks Rank #3 (Hold). The chart below shows the evolution of the company's forward 12-month consensus EPS estimate: 12 Month EPS Revenue Growth Forecast Even though a company's earnings growth is arguably the best indicator of its financial health, nothing much happens if it cannot raise its revenues. It's almost impossible for a company to grow its earnings without growing its revenue for long periods. Therefore, knowing a company's potential revenue growth is crucial. For Alcoa, the consensus sales estimate for the current quarter of $3.8 billion indicates a year-over-year change of +34.3%. For the current and next fiscal years, $14.78 billion and $14.58 billion estimates indicate +21.6% and -1.3% changes, respectively. Last Reported Results and Surprise History Alcoa reported revenues of $3.29 billion in the last reported quarter, representing a year-over-year change of +14.7%. EPS of $3.06 for the same period compares with $0.79 a year ago. Compared to the Zacks Consensus Estimate of $3.5 billion, the reported revenues represent a surprise of -5.8%. The EPS surprise was +2.34%. The company beat consensus EPS estimates in each of the trailing four quarters. The company topped consensus revenue estimates three times over this period. Valuation No investment decision can be efficient without considering a stock's valuation. Whether a stock's current price rightly reflects the intrinsic value of the underlying business and the company's growth prospects is an essential determinant of its future price performance. While comparing the current values of a company's valuation multiples, such as price-to-earnings (P/E), price-to-sales (P/S) and price-to-cash flow (P/CF), with its own historical values helps determine whether its stock is fairly valued, overvalued, or undervalued, comparing the company relative to its peers on these parameters gives a good sense of the reasonability of the stock's price. The Zacks Value Style Score (part of the Zacks Style Scores system), which pays close attention to both traditional and unconventional valuation metrics to grade stocks from A to F (an An is better than a B; a B is better than a C; and so on), is pretty helpful in identifying whether a stock is overvalued, rightly valued, or temporarily undervalued. Alcoa is graded A on this front, indicating that it is trading at a discount to its peers. Click here to see the values of some of the valuation metrics that have driven this grade. Bottom Line The facts discussed here and much other information on Zacks.com might help determine whether or not it's worthwhile paying attention to the market buzz about Alcoa. However, its Zacks Rank #3 does suggest that it may perform in line with the broader market in the near term. 7 Best Stocks for the Next 30 Days Just released: Experts distill 7 elite stocks from the current list of 220 Zacks Rank #1 Strong Buys. They deem these tickers "Most Likely for Early Price Pops." Since 1988, the full list has beaten the market more than 2X over with an average gain of +25.4% per year. So be sure to give these hand-picked 7 your immediate attention. See them now >> Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report Alcoa (AA): Free Stock Analysis Report To read this article on Zacks.com click here. The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
2022-06-13 00:00:00+00:00	AA	Should SPDR Portfolio S&P 400 Mid Cap ETF (SPMD) Be on Your Investing Radar?	Launched on 11/08/2005, the SPDR Portfolio S&P 400 Mid Cap ETF (SPMD) is a passively managed exchange traded fund designed to provide a broad exposure to the Mid Cap Blend segment of the US equity market. The fund is sponsored by State Street Global Advisors. It has amassed assets over $4.87 billion, making it one of the larger ETFs attempting to match the Mid Cap Blend segment of the US equity market. Why Mid Cap Blend Mid cap companies, with market capitalization in the range of $2 billion and $10 billion, offer investors many things that small and large companies don't, including less risk and higher growth opportunities. These types of companies, then, have a good balance of stability and growth potential. Typically holding a combination of both growth and value stocks, blend ETFs also demonstrate qualities seen in value and growth investments. Costs Since cheaper funds tend to produce better results than more expensive funds, assuming all other factors remain equal, it is important for investors to pay attention to an ETF's expense ratio. Annual operating expenses for this ETF are 0.05%, making it one of the least expensive products in the space. It has a 12-month trailing dividend yield of 1.51%. Sector Exposure and Top Holdings Even though ETFs offer diversified exposure which minimizes single stock risk, it is still important to look into a fund's holdings before investing. Luckily, most ETFs are very transparent products that disclose their holdings on a daily basis. This ETF has heaviest allocation to the Industrials sector--about 18.40% of the portfolio. Financials and Consumer Discretionary round out the top three. Looking at individual holdings, Camden Property Trust (CPT) accounts for about 0.75% of total assets, followed by Targa Resources Corp. (TRGP) and Alcoa Corporation (AA). The top 10 holdings account for about 6.11% of total assets under management. Performance and Risk SPMD seeks to match the performance of the S&P 1000 Index before fees and expenses. The S&P MidCap 400 Index combines the S&P MidCap 400 and the S&P SmallCap 600 to form an investable benchmark for the mid to small cap segment of the U.S. equity market. The ETF has lost about -15.18% so far this year and is down about -10.72% in the last one year (as of 06/13/2022). In the past 52-week period, it has traded between $41.13 and $50.95. The ETF has a beta of 1.12 and standard deviation of 28.15% for the trailing three-year period. With about 402 holdings, it effectively diversifies company-specific risk. Alternatives SPDR Portfolio S&P 400 Mid Cap ETF holds a Zacks ETF Rank of 2 (Buy), which is based on expected asset class return, expense ratio, and momentum, among other factors. Because of this, SPMD is a great option for investors seeking exposure to the Style Box - Mid Cap Blend segment of the market. There are other additional ETFs in the space that investors could consider as well. The Vanguard MidCap ETF (VO) and the iShares Core S&P MidCap ETF (IJH) track a similar index. While Vanguard MidCap ETF has $48.19 billion in assets, iShares Core S&P MidCap ETF has $59.28 billion. VO has an expense ratio of 0.04% and IJH charges 0.05%. Bottom-Line Retail and institutional investors increasingly turn to passively managed ETFs because they offer low costs, transparency, flexibility, and tax efficiency; these kind of funds are also excellent vehicles for long term investors. To learn more about this product and other ETFs, screen for products that match your investment objectives and read articles on latest developments in the ETF investing universe, please visit Zacks ETF Center. Want key ETF info delivered straight to your inbox? Zacks’ free Fund Newsletter will brief you on top news and analysis, as well as top-performing ETFs, each week. Get it free >> Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report SPDR Portfolio S&P 400 Mid Cap ETF (SPMD): ETF Research Reports Alcoa (AA): Free Stock Analysis Report Camden Property Trust (CPT): Free Stock Analysis Report Targa Resources, Inc. (TRGP): Free Stock Analysis Report iShares Core S&P MidCap ETF (IJH): ETF Research Reports Vanguard MidCap ETF (VO): ETF Research Reports To read this article on Zacks.com click here. The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
2022-06-11 00:00:00+00:00	AA	Validea Kenneth Fisher Strategy Daily Upgrade Report - 6/11/2022	The following are today's upgrades for Validea's Price/Sales Investor model based on the published strategy of Kenneth Fisher. This value strategy rewards stocks with low P/S ratios, long-term profit growth, strong free cash flow and consistent profit margins. HUNTSMAN CORPORATION (HUN) is a mid-cap value stock in the Chemicals - Plastics & Rubber industry. The rating according to our strategy based on Kenneth Fisher changed from 60% to 100% based on the firm’s underlying fundamentals and the stock’s valuation. A score of 80% or above typically indicates that the strategy has some interest in the stock and a score above 90% typically indicates strong interest. Company Description: Huntsman Corporation is a manufacturer of differentiated organic chemical products. The Company's segments include Polyurethanes, Performance Products, Advanced Materials and Textile Effects. The polyurethanes product segment includes methylene diphenyl diisocyanate, polyols, thermoplastic polyurethane and other polyurethane-related products. Performance Products segment includes amines are a family of intermediate chemicals, and maleic anhydride is an intermediate chemical used primarily to produce unsaturated polyester resins. Advanced Materials segment includes Technologically- advanced epoxy, phenoxy, acrylic, polyurethane and acrylonitrile-butadiene-based polymer formulations, and high performance thermoset resins and curing agents and toughening agents and carbon nanotubes additives. Textile Effects segment is engaged in providing wet processing of textiles across pretreatment, coloration, printing and finishing and provides a diverse portfolio of textile chemicals and dyes. The following table summarizes whether the stock meets each of this strategy's tests. Not all criteria in the below table receive equal weighting or are independent, but the table provides a brief overview of the strong and weak points of the security in the context of the strategy's criteria. PRICE/SALES RATIO: PASS TOTAL DEBT/EQUITY RATIO: PASS PRICE/RESEARCH RATIO: PASS PRICE/SALES RATIO: PASS LONG-TERM EPS GROWTH RATE: PASS FREE CASH PER SHARE: PASS THREE YEAR AVERAGE NET PROFIT MARGIN: PASS Detailed Analysis of HUNTSMAN CORPORATION Full Guru Analysis for HUN Full Factor Report for HUN ALCOA CORP (AA) is a mid-cap value stock in the Metal Mining industry. The rating according to our strategy based on Kenneth Fisher changed from 50% to 80% based on the firm’s underlying fundamentals and the stock’s valuation. A score of 80% or above typically indicates that the strategy has some interest in the stock and a score above 90% typically indicates strong interest. Company Description: Alcoa Corporation is a trading company. The Company is engaged in the production of bauxite, alumina and aluminum products. The Company's operations consist of three reportable business segments: Bauxite, Alumina, and Aluminum. The Bauxite and Alumina segments primarily consist of a series of affiliated operating entities held in Alcoa World Alumina and Chemicals (AWAC), which is a joint venture between Alcoa Corporation and Alumina Limited. The Aluminum segment consists of the Company's aluminum smelting, casting, and rolling businesses, along with the energy production business. Its Bauxite segment consists of the Company's global bauxite mining operations. The Company's Alumina segment consists of the Company's worldwide refining system, which processes bauxite into alumina. The Aluminum segment consists of its worldwide smelting and cast house system, a portfolio of energy assets in Brazil, Canada, and the United States. It has over 28 operating locations across nine countries. The following table summarizes whether the stock meets each of this strategy's tests. Not all criteria in the below table receive equal weighting or are independent, but the table provides a brief overview of the strong and weak points of the security in the context of the strategy's criteria. PRICE/SALES RATIO: PASS TOTAL DEBT/EQUITY RATIO: PASS PRICE/RESEARCH RATIO: PASS PRICE/SALES RATIO: PASS LONG-TERM EPS GROWTH RATE: FAIL FREE CASH PER SHARE: PASS THREE YEAR AVERAGE NET PROFIT MARGIN: FAIL Detailed Analysis of ALCOA CORP Full Guru Analysis for AA Full Factor Report for AA DESPEGAR.COM CORP (DESP) is a small-cap value stock in the Personal Services industry. The rating according to our strategy based on Kenneth Fisher changed from 48% to 60% based on the firm’s underlying fundamentals and the stock’s valuation. A score of 80% or above typically indicates that the strategy has some interest in the stock and a score above 90% typically indicates strong interest. Company Description: Despegar.com Corp is an Argentina-based online travel company. It provides a broad suite of travel products, including airline tickets, travel packages, hotel bookings and other travel products. It organizes its business into two segments: Air, which consists of the sale of airline tickets, and Packages, Hotels and Other Travel Products, which consists of travel packages, as well as stand-alone sales of hotel rooms, car rentals, bus tickets, cruise tickets, travel insurance and destination services. The Company's one-stop marketplace enables millions of users to find, compare, plan and easily purchase travel services and products through its websites and mobile apps. The Company owns and operates two brands: Despegar, its global brand and Decolar, its Brazilian brand. It operates in Latin America across 20 countries. The following table summarizes whether the stock meets each of this strategy's tests. Not all criteria in the below table receive equal weighting or are independent, but the table provides a brief overview of the strong and weak points of the security in the context of the strategy's criteria. PRICE/SALES RATIO: PASS TOTAL DEBT/EQUITY RATIO: PASS PRICE/RESEARCH RATIO: PASS PRICE/SALES RATIO: FAIL LONG-TERM EPS GROWTH RATE: FAIL FREE CASH PER SHARE: FAIL THREE YEAR AVERAGE NET PROFIT MARGIN: FAIL Detailed Analysis of DESPEGAR.COM CORP Full Guru Analysis for DESP Full Factor Report for DESP LANDSTAR SYSTEM, INC. (LSTR) is a mid-cap value stock in the Trucking industry. The rating according to our strategy based on Kenneth Fisher changed from 90% to 100% based on the firm’s underlying fundamentals and the stock’s valuation. A score of 80% or above typically indicates that the strategy has some interest in the stock and a score above 90% typically indicates strong interest. Company Description: Landstar System, Inc. is an asset-light provider of integrated transportation management solutions. The Company operates through two operating segments: the transportation logistics segment and the insurance segment. The transportation logistics segment provides a range of integrated transportation management solutions. Transportation services offered by the Company include truckload and less-than-truckload transportation, rail intermodal, air cargo, ocean cargo, expedited ground and air delivery of time-critical freight, heavy-haul/specialized, the United States-Canada and the United States-Mexico cross-border, intra-Mexico, intra-Canada, project cargo and customs brokerage. The insurance segment consists of Signature Insurance Company (Signature), a wholly owned offshore insurance subsidiary, and Risk Management Claim Services, Inc. The insurance segment offers risk and claims management services to certain of Landstar's operating subsidiaries. The following table summarizes whether the stock meets each of this strategy's tests. Not all criteria in the below table receive equal weighting or are independent, but the table provides a brief overview of the strong and weak points of the security in the context of the strategy's criteria. PRICE/SALES RATIO: PASS TOTAL DEBT/EQUITY RATIO: PASS PRICE/RESEARCH RATIO: PASS PRICE/SALES RATIO: PASS LONG-TERM EPS GROWTH RATE: PASS FREE CASH PER SHARE: PASS THREE YEAR AVERAGE NET PROFIT MARGIN: PASS Detailed Analysis of LANDSTAR SYSTEM, INC. Full Guru Analysis for LSTR Full Factor Report for LSTR SONOS INC (SONO) is a mid-cap growth stock in the Audio & Video Equipment industry. The rating according to our strategy based on Kenneth Fisher changed from 58% to 70% based on the firm’s underlying fundamentals and the stock’s valuation. A score of 80% or above typically indicates that the strategy has some interest in the stock and a score above 90% typically indicates strong interest. Company Description: Sonos, Inc. is engaged in the business of developing wireless multi-room home audio systems. The Company offers speakers, portable speakers, home theatre, sets, accessories, architectural, components, and speaker recommender. The Company provides customers with access to voice control, streaming music, Internet radio, podcasts, and audiobook content, enabling them to control and listen to a range of audio entertainment. Through its software platform, the Company enhances the features and services of its products. The Company's speaker products include wireless speakers and home theater speakers. The Company's streaming content is available on Apple Music, Pandora, Spotify, and TuneIn. The following table summarizes whether the stock meets each of this strategy's tests. Not all criteria in the below table receive equal weighting or are independent, but the table provides a brief overview of the strong and weak points of the security in the context of the strategy's criteria. PRICE/SALES RATIO: PASS TOTAL DEBT/EQUITY RATIO: PASS PRICE/RESEARCH RATIO: PASS PRICE/SALES RATIO: FAIL LONG-TERM EPS GROWTH RATE: FAIL FREE CASH PER SHARE: PASS THREE YEAR AVERAGE NET PROFIT MARGIN: FAIL Detailed Analysis of SONOS INC Full Guru Analysis for SONO Full Factor Report for SONO More details on Validea's Kenneth Fisher strategy About Kenneth Fisher: The son of Philip Fisher, who is considered the "Father of Growth Investing", Kenneth Fisher is a money manager, bestselling author, and longtime Forbes columnist. The younger Fisher wowed Wall Street in the mid-1980s when his book Super Stocks first popularized the idea of using the price/sales ratio (PSR) as a means of identifying attractive stocks. According to his alma mater, Humboldt State University, Fisher is also one of the world's foremost experts on 19th century logging. Appropriately, Fisher's firm, Fisher Investments, is located in a lush forest preserve in Woodside, California, where the contrarian-minded Fisher says he and his employees can get away from Wall Street groupthink. About Validea: Validea is aninvestment researchservice that follows the published strategies of investment legends. Validea offers both stock analysis and model portfolios based on gurus who have outperformed the market over the long-term, including Warren Buffett, Benjamin Graham, Peter Lynch and Martin Zweig. For more information about Validea, click here The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
2022-06-10 00:00:00+00:00	AA	Validea Peter Lynch Strategy Daily Upgrade Report - 6/10/2022	The following are today's upgrades for Validea's P/E/Growth Investor model based on the published strategy of Peter Lynch. This strategy looks for stocks trading at a reasonable price relative to earnings growth that also possess strong balance sheets. ARISTA NETWORKS INC (ANET) is a large-cap growth stock in the Electronic Instr. & Controls industry. The rating according to our strategy based on Peter Lynch changed from 87% to 91% based on the firm’s underlying fundamentals and the stock’s valuation. A score of 80% or above typically indicates that the strategy has some interest in the stock and a score above 90% typically indicates strong interest. Company Description: Arista Networks, Inc. is a supplier of cloud networking solutions that use software to address the needs of Internet companies, cloud service providers and enterprises. The Company cloud networking solutions consist of its Extensible Operating System (EOS), a set of network applications and its Gigabit Ethernet switching and routing platforms. Its cognitive single-tier Spline campus network extends EOS across the campus workspace and the data center. CloudVision, its network-wide approach for workload orchestration and automation, leverages EOS and Cognitive WiFi features, to deliver a workflow orchestration and automation solution for cloud networking to its enterprise customers. It sells its products through both its direct sales force and its channel partners. The Company's end customers span a range of industries and include large Internet companies, service providers, financial services organizations, government agencies, media and entertainment companies and others. The following table summarizes whether the stock meets each of this strategy's tests. Not all criteria in the below table receive equal weighting or are independent, but the table provides a brief overview of the strong and weak points of the security in the context of the strategy's criteria. P/E/GROWTH RATIO: PASS SALES AND P/E RATIO: PASS INVENTORY TO SALES: PASS EPS GROWTH RATE: PASS TOTAL DEBT/EQUITY RATIO: PASS FREE CASH FLOW: NEUTRAL NET CASH POSITION: NEUTRAL Detailed Analysis of ARISTA NETWORKS INC Full Guru Analysis for ANET Full Factor Report for ANET CENTRAL PACIFIC FINANCIAL CORP. (CPF) is a small-cap value stock in the Regional Banks industry. The rating according to our strategy based on Peter Lynch changed from 72% to 74% based on the firm’s underlying fundamentals and the stock’s valuation. A score of 80% or above typically indicates that the strategy has some interest in the stock and a score above 90% typically indicates strong interest. Company Description: Central Pacific Financial Corp. is the bank holding company of Central Pacific Bank (the Bank). The Bank is a commercial bank, which offers a range of banking products and services, including accepting time and demand deposits and originating loans. The Company offers a range of banking services and products to businesses, professionals and individuals. Its loans include commercial loans, construction loans, commercial and residential mortgage loans and consumer loans. Its investment securities portfolio includes mortgage-backed securities (MBS), other debt securities and equity securities. Its MBS portfolio is comprised primarily of residential MBS issued by United States government entities and agencies. It also offers wealth management products and services, such as non-deposit investment products, annuities, insurance, investment management, asset custody and general consultation and planning services. The following table summarizes whether the stock meets each of this strategy's tests. Not all criteria in the below table receive equal weighting or are independent, but the table provides a brief overview of the strong and weak points of the security in the context of the strategy's criteria. YIELD ADJUSTED P/E TO GROWTH (PEG) RATIO: PASS EARNINGS PER SHARE: PASS TOTAL DEBT/EQUITY RATIO: NEUTRAL EQUITY/ASSETS RATIO: PASS RETURN ON ASSETS: PASS FREE CASH FLOW: NEUTRAL NET CASH POSITION: NEUTRAL Detailed Analysis of CENTRAL PACIFIC FINANCIAL CORP. Full Guru Analysis for CPF Full Factor Report for CPF ASML HOLDING NV (ADR) (ASML) is a large-cap growth stock in the Misc. Capital Goods industry. The rating according to our strategy based on Peter Lynch changed from 69% to 87% based on the firm’s underlying fundamentals and the stock’s valuation. A score of 80% or above typically indicates that the strategy has some interest in the stock and a score above 90% typically indicates strong interest. Company Description: ASML Holding N.V. is a holding company based in the Netherlands. The Company operates through its subsidiaries in the Netherlands, the United States, Italy, France, Germany, the United Kingdom, Ireland, Belgium, South Korea, Taiwan, Singapore, China, Hong Kong, Japan, Malaysia and Israel. The Company operates through one business segment which is engage in development, production, marketing, sales, upgrading and servicing of advanced semiconductor equipment systems, consisting of lithography, metrology and inspection systems. The Company offers TWINSCAN systems, equipped with lithography system with a mercury lamp as light source (i-line), Krypton Fluoride (KrF) and Argon Fluoride (ArF) light sources for processing wafers for manufacturing environments for which imaging at a small resolution is required. TWINSCAN systems also include immersion lithography systems (TWINSCAN immersion systems). The following table summarizes whether the stock meets each of this strategy's tests. Not all criteria in the below table receive equal weighting or are independent, but the table provides a brief overview of the strong and weak points of the security in the context of the strategy's criteria. P/E/GROWTH RATIO: PASS SALES AND P/E RATIO: PASS INVENTORY TO SALES: PASS EPS GROWTH RATE: PASS TOTAL DEBT/EQUITY RATIO: PASS FREE CASH FLOW: NEUTRAL NET CASH POSITION: NEUTRAL Detailed Analysis of ASML HOLDING NV (ADR) Full Guru Analysis for ASML Full Factor Report for ASML ALCOA CORP (AA) is a large-cap value stock in the Metal Mining industry. The rating according to our strategy based on Peter Lynch changed from 0% to 91% based on the firm’s underlying fundamentals and the stock’s valuation. A score of 80% or above typically indicates that the strategy has some interest in the stock and a score above 90% typically indicates strong interest. Company Description: Alcoa Corporation is a trading company. The Company is engaged in the production of bauxite, alumina and aluminum products. The Company's operations consist of three reportable business segments: Bauxite, Alumina, and Aluminum. The Bauxite and Alumina segments primarily consist of a series of affiliated operating entities held in Alcoa World Alumina and Chemicals (AWAC), which is a joint venture between Alcoa Corporation and Alumina Limited. The Aluminum segment consists of the Company's aluminum smelting, casting, and rolling businesses, along with the energy production business. Its Bauxite segment consists of the Company's global bauxite mining operations. The Company's Alumina segment consists of the Company's worldwide refining system, which processes bauxite into alumina. The Aluminum segment consists of its worldwide smelting and cast house system, a portfolio of energy assets in Brazil, Canada, and the United States. It has over 28 operating locations across nine countries. The following table summarizes whether the stock meets each of this strategy's tests. Not all criteria in the below table receive equal weighting or are independent, but the table provides a brief overview of the strong and weak points of the security in the context of the strategy's criteria. INVENTORY TO SALES: PASS YIELD ADJUSTED P/E TO GROWTH (PEG) RATIO: PASS EARNINGS PER SHARE: PASS TOTAL DEBT/EQUITY RATIO: PASS FREE CASH FLOW: NEUTRAL NET CASH POSITION: NEUTRAL Detailed Analysis of ALCOA CORP Full Guru Analysis for AA Full Factor Report for AA CENTRAL VALLEY COMMUNITY BANCORP (CVCY) is a small-cap value stock in the Regional Banks industry. The rating according to our strategy based on Peter Lynch changed from 72% to 74% based on the firm’s underlying fundamentals and the stock’s valuation. A score of 80% or above typically indicates that the strategy has some interest in the stock and a score above 90% typically indicates strong interest. Company Description: Central Valley Community Bancorp is a bank holding company for Central Valley Community Bank (the Bank). The Bank conducts a commercial banking business, which includes accepting demand, savings and time deposits and making commercial, real estate and consumer loans. It also provides domestic and international wire transfer services and provides safe deposit boxes and other customary banking services. The Bank also offers Internet banking that consists of inquiry, account status, bill paying, account transfers, and cash management. The Bank has a Real Estate Division, an Agribusiness Center, and an SBA Lending Division. The Real Estate Division processes or assists in processing the majority of the Bank's real estate-related transactions, including interim construction loans for single family residences and commercial buildings. The Bank offers permanent single family residential loans through its mortgage broker services. The Bank operates about 20 full-service banking offices. The following table summarizes whether the stock meets each of this strategy's tests. Not all criteria in the below table receive equal weighting or are independent, but the table provides a brief overview of the strong and weak points of the security in the context of the strategy's criteria. YIELD ADJUSTED P/E TO GROWTH (PEG) RATIO: PASS EARNINGS PER SHARE: PASS TOTAL DEBT/EQUITY RATIO: NEUTRAL EQUITY/ASSETS RATIO: PASS RETURN ON ASSETS: PASS FREE CASH FLOW: NEUTRAL NET CASH POSITION: NEUTRAL Detailed Analysis of CENTRAL VALLEY COMMUNITY BANCORP Full Guru Analysis for CVCY Full Factor Report for CVCY SOUTHERN COPPER CORP (SCCO) is a large-cap value stock in the Metal Mining industry. The rating according to our strategy based on Peter Lynch changed from 72% to 74% based on the firm’s underlying fundamentals and the stock’s valuation. A score of 80% or above typically indicates that the strategy has some interest in the stock and a score above 90% typically indicates strong interest. Company Description: Southern Copper Corporation is an integrated copper producer. The Company produces copper and, in the production process, obtains several by-products, including molybdenum, silver, zinc, sulfuric acid and other metals. Its segments include the Peruvian operations, the Mexican open-pit copper mines and the Mexican underground mining operations segment identified as the IMMSA unit. The Peruvian operations segment includes the Toquepala and Cuajone mine complexes, and the smelting and refining plants, including a metals plant industrial railroad and port facilities that service both mines. The Mexican open-pit operations segment includes the La Caridad and Buenavista mine complexes, and the smelting and refining plants, including a metals plant and a copper rod plant, and support facilities that service both mines. The Mexican underground mining operations segment includes five underground mines that produce zinc, copper, silver and gold, and a zinc refinery. The following table summarizes whether the stock meets each of this strategy's tests. Not all criteria in the below table receive equal weighting or are independent, but the table provides a brief overview of the strong and weak points of the security in the context of the strategy's criteria. P/E/GROWTH RATIO: PASS SALES AND P/E RATIO: PASS INVENTORY TO SALES: PASS EPS GROWTH RATE: PASS TOTAL DEBT/EQUITY RATIO: FAIL FREE CASH FLOW: NEUTRAL NET CASH POSITION: NEUTRAL Detailed Analysis of SOUTHERN COPPER CORP Full Guru Analysis for SCCO Full Factor Report for SCCO SEI INVESTMENTS COMPANY (SEIC) is a mid-cap value stock in the Investment Services industry. The rating according to our strategy based on Peter Lynch changed from 0% to 91% based on the firm’s underlying fundamentals and the stock’s valuation. A score of 80% or above typically indicates that the strategy has some interest in the stock and a score above 90% typically indicates strong interest. Company Description: SEI Investments Company provides technology and investment solutions that connect the financial services industry. Its segments include Private Banks, Investment Advisors, Institutional Investors, Investment Managers, and Investments in New Businesses. Its Private Banks segment provides outsourced investment processing and investment management platforms to banks and trust institutions and others. Its Investment Advisors segment provides investment management and investment processing platforms to affluent investors through a network of independent investment advisors, financial planners, and others. Its Institutional Investors segment provides outsourced chief investment officer (OCIO) solutions, including investment management and administrative outsourcing platforms. Its Investment Managers segment provides investment operations outsourcing platforms. Its Investments in New Businesses segment focuses on providing investment management solutions to ultra-high-net-worth families. The following table summarizes whether the stock meets each of this strategy's tests. Not all criteria in the below table receive equal weighting or are independent, but the table provides a brief overview of the strong and weak points of the security in the context of the strategy's criteria. YIELD ADJUSTED P/E TO GROWTH (PEG) RATIO: PASS EARNINGS PER SHARE: PASS TOTAL DEBT/EQUITY RATIO: NEUTRAL EQUITY/ASSETS RATIO: PASS RETURN ON ASSETS: PASS FREE CASH FLOW: NEUTRAL NET CASH POSITION: NEUTRAL Detailed Analysis of SEI INVESTMENTS COMPANY Full Guru Analysis for SEIC Full Factor Report for SEIC WEIS MARKETS, INC. (WMK) is a small-cap growth stock in the Retail (Grocery) industry. The rating according to our strategy based on Peter Lynch changed from 0% to 91% based on the firm’s underlying fundamentals and the stock’s valuation. A score of 80% or above typically indicates that the strategy has some interest in the stock and a score above 90% typically indicates strong interest. Company Description: Weis Markets, Inc. is engaged principally in the retail sale of food in Pennsylvania and surrounding states. The Company's retail food stores sell groceries, dairy products, frozen foods, meats, seafood, fresh produce, floral, pharmacy services, deli products, prepared foods, bakery products, beer and wine, fuel and general merchandise items, such as health and beauty care and household products. The store product selection includes national, local and private brands including natural, gluten-free and organic varieties. The Company owns and operates approximately 197 retail food stores in Pennsylvania, Maryland, Delaware, New Jersey, New York, West Virginia and Virginia under the Weis Markets trade name, many of which have on-line order and pick up customer service. The Company owns and operates one distribution center in Milton, Pennsylvania of approximately 1.3 million square feet, and one in Northumberland, Pennsylvania totaling approximately 76 thousand square feet. The following table summarizes whether the stock meets each of this strategy's tests. Not all criteria in the below table receive equal weighting or are independent, but the table provides a brief overview of the strong and weak points of the security in the context of the strategy's criteria. YIELD ADJUSTED P/E TO GROWTH (PEG) RATIO: PASS EARNINGS PER SHARE: PASS TOTAL DEBT/EQUITY RATIO: PASS FREE CASH FLOW: NEUTRAL NET CASH POSITION: NEUTRAL Detailed Analysis of WEIS MARKETS, INC. Full Guru Analysis for WMK Full Factor Report for WMK ABM INDUSTRIES, INC. (ABM) is a mid-cap growth stock in the Business Services industry. The rating according to our strategy based on Peter Lynch changed from 87% to 91% based on the firm’s underlying fundamentals and the stock’s valuation. A score of 80% or above typically indicates that the strategy has some interest in the stock and a score above 90% typically indicates strong interest. Company Description: ABM Industries Incorporated is a provider of facility services. It operates under five segments: Business & Industry (B&I), Manufacturing & Distribution (M&D), Education, Aviation, and Technical Solutions. B&I segment includes janitorial, facilities engineering, and parking services for commercial real estate properties, traditional hospitals, and non-acute healthcare facilities. M&D segment provides integrated facility services, engineering, janitorial, and other specialized services in manufacturing, distribution, and data center facilities. Education segment delivers janitorial, custodial, landscaping and grounds, facilities engineering, and parking services for public school districts, private schools, colleges and universities. Aviation segment supports airlines and airports with services ranging from parking and janitorial to passenger assistance, catering logistics, air cabin maintenance and transportation. Technical Solutions segment includes mechanical and electrical services. The following table summarizes whether the stock meets each of this strategy's tests. Not all criteria in the below table receive equal weighting or are independent, but the table provides a brief overview of the strong and weak points of the security in the context of the strategy's criteria. P/E/GROWTH RATIO: PASS SALES AND P/E RATIO: PASS EPS GROWTH RATE: PASS TOTAL DEBT/EQUITY RATIO: PASS FREE CASH FLOW: NEUTRAL NET CASH POSITION: NEUTRAL Detailed Analysis of ABM INDUSTRIES, INC. Full Guru Analysis for ABM Full Factor Report for ABM AMERICAN ELECTRIC POWER COMPANY INC (AEP) is a large-cap growth stock in the Electric Utilities industry. The rating according to our strategy based on Peter Lynch changed from 0% to 91% based on the firm’s underlying fundamentals and the stock’s valuation. A score of 80% or above typically indicates that the strategy has some interest in the stock and a score above 90% typically indicates strong interest. Company Description: American Electric Power Company, Inc. (AEP) is an electric public utility holding company. The service areas of the Company's public utility subsidiaries cover the states of Arkansas, Indiana, Kentucky, Louisiana, Michigan, Ohio, Oklahoma, Tennessee, Texas, Virginia and West Virginia. The Company's segments include Vertically Integrated Utilities, Transmission and Distribution Utilities, AEP Transmission Holdco, and Generation & Marketing. AEP's vertically integrated utility operations are engaged in the generation, transmission and distribution of electricity for sale to retail and wholesale customers. Transmission and Distribution Utilities segment consists of the transmission and distribution of electricity for sale to retail and wholesale customers. The AEP Transmission Holdco segment develops, constructs and operates transmission facilities. The Generation & Marketing segment conducts marketing, risk management and retail activities. The following table summarizes whether the stock meets each of this strategy's tests. Not all criteria in the below table receive equal weighting or are independent, but the table provides a brief overview of the strong and weak points of the security in the context of the strategy's criteria. INVENTORY TO SALES: PASS YIELD ADJUSTED P/E TO GROWTH (PEG) RATIO: PASS EARNINGS PER SHARE: PASS TOTAL DEBT/EQUITY RATIO: PASS FREE CASH FLOW: NEUTRAL NET CASH POSITION: NEUTRAL Detailed Analysis of AMERICAN ELECTRIC POWER COMPANY INC Full Guru Analysis for AEP Full Factor Report for AEP BANCO BILBAO VIZCAYA ARGENTARIA SA (ADR) (BBVA) is a large-cap value stock in the Money Center Banks industry. The rating according to our strategy based on Peter Lynch changed from 6% to 96% based on the firm’s underlying fundamentals and the stock’s valuation. A score of 80% or above typically indicates that the strategy has some interest in the stock and a score above 90% typically indicates strong interest. Company Description: Banco Bilbao Vizcaya Argentaria, S.A. (BBVA) is a Spain - based bank. It is a diversified financial company engaged in retail banking, wholesale banking, asset management and private banking. Its segments are: Spain, the United States, Turkey, Mexico, South America and Rest of Eurasia. The activities in Spain are banking activity and Insurance. In the United States it offers services through, BBVA USA and the BBVA New York branch. The Turkey segment is represented by the group Garanti BBVA, an integrated financial services group, that also operate in Holland and Romania. The Mexico segment activities include banking and insurance businesses. In South America, it provides banking and insurance businesses. The Rest of Eurasia segment includes business activity in the rest of Europe and Asia The following table summarizes whether the stock meets each of this strategy's tests. Not all criteria in the below table receive equal weighting or are independent, but the table provides a brief overview of the strong and weak points of the security in the context of the strategy's criteria. SALES: PASS YIELD COMPARED TO THE S&P 500: PASS YIELD ADJUSTED P/E/GROWTH (PEG) RATIO: PASS TOTAL DEBT/EQUITY RATIO: NEUTRAL EQUITY/ASSETS RATIO: PASS RETURN ON ASSETS: FAIL FREE CASH FLOW: NEUTRAL NET CASH POSITION: BONUS PASS Detailed Analysis of BANCO BILBAO VIZCAYA ARGENTARIA SA (ADR) Full Guru Analysis for BBVA Full Factor Report for BBVA More details on Validea's Peter Lynch strategy Peter Lynch Stock Ideas About Peter Lynch: Perhaps the greatest mutual fund manager of all-time, Lynch guided Fidelity Investment's Magellan Fund to a 29.2 percent average annual return from 1977 until his retirement in 1990, almost doubling the S&P 500's 15.8 percent yearly return over that time. Lynch's common sense approach and quick wit made him one of the most quoted investors on Wall Street. ("Go for a business that any idiot can run -- because sooner or later, any idiot probably is going to run it," is one of his many pearls of wisdom.) Lynch's bestseller One Up on Wall Street is something of a "stocks for the everyman/everywoman", breaking his approach down into easy-to-understand concepts. About Validea: Validea is aninvestment researchservice that follows the published strategies of investment legends. Validea offers both stock analysis and model portfolios based on gurus who have outperformed the market over the long-term, including Warren Buffett, Benjamin Graham, Peter Lynch and Martin Zweig. For more information about Validea, click here The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
2022-06-09 00:00:00+00:00	AA	Thursday's ETF Movers: GXC, PICK	In trading on Thursday, the SPDR S&P China ETF is outperforming other ETFs, up about 2.8% on the day. Components of that ETF showing particular strength include shares of SOS, up about 10.3% and shares of Qutoutiao, up about 6.1% on the day. And underperforming other ETFs today is the iShares MSCI Global Metals & Mining Producers ETF, off about 6.1% in Thursday afternoon trading. Among components of that ETF with the weakest showing on Thursday were shares of Alcoa, lower by about 7.1%, and shares of Cleveland-cliffs, lower by about 6.9% on the day. VIDEO: Thursday's ETF Movers: GXC, PICK The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
2022-06-09 00:00:00+00:00	AA	Alcoa Breaks Below 200-Day Moving Average - Notable for AA	In trading on Thursday, shares of Alcoa Corporation (Symbol: AA) crossed below their 200 day moving average of $61.31, changing hands as low as $58.35 per share. Alcoa Corporation shares are currently trading down about 6% on the day. The chart below shows the one year performance of AA shares, versus its 200 day moving average: Looking at the chart above, AA's low point in its 52 week range is $30.995 per share, with $98.09 as the 52 week high point — that compares with a last trade of $58.16. Click here to find out which 9 other dividend stocks recently crossed below their 200 day moving average » The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
2022-06-09 00:00:00+00:00	AA	Alcoa To Participate In Deutsche Bank Materials Conference At 9:45 AM ET	(RTTNews) - Alcoa Corporation (AA) will present at the Deutsche Bank 13th Annual Global Materials Conference in New York. The event is scheduled to begin at 9:45 AM ET on June 9, 2022. To access the live webcast, log on to https://investors.alcoa.com/events-and-presentations/events-calendar/default.aspx The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
2022-06-01 00:00:00+00:00	AA	Alcoa (AA) Gains As Market Dips: What You Should Know	Alcoa (AA) closed at $62.41 in the latest trading session, marking a +1.12% move from the prior day. The stock outpaced the S&P 500's daily loss of 0.75%. At the same time, the Dow lost 0.54%, and the tech-heavy Nasdaq gained 0.24%. Prior to today's trading, shares of the bauxite, alumina and aluminum products company had lost 4.55% over the past month. This has lagged the Industrial Products sector's loss of 0.95% and the S&P 500's gain of 0.32% in that time. Alcoa will be looking to display strength as it nears its next earnings release. The company is expected to report EPS of $3.66, up 145.64% from the prior-year quarter. Meanwhile, our latest consensus estimate is calling for revenue of $3.8 billion, up 34.3% from the prior-year quarter. Looking at the full year, our Zacks Consensus Estimates suggest analysts are expecting earnings of $13.17 per share and revenue of $14.78 billion. These totals would mark changes of +92.83% and +21.59%, respectively, from last year. Any recent changes to analyst estimates for Alcoa should also be noted by investors. These revisions typically reflect the latest short-term business trends, which can change frequently. With this in mind, we can consider positive estimate revisions a sign of optimism about the company's business outlook. Research indicates that these estimate revisions are directly correlated with near-term share price momentum. Investors can capitalize on this by using the Zacks Rank. This model considers these estimate changes and provides a simple, actionable rating system. Ranging from #1 (Strong Buy) to #5 (Strong Sell), the Zacks Rank system has a proven, outside-audited track record of outperformance, with #1 stocks returning an average of +25% annually since 1988. Over the past month, the Zacks Consensus EPS estimate has moved 4.68% lower. Alcoa is holding a Zacks Rank of #3 (Hold) right now. Valuation is also important, so investors should note that Alcoa has a Forward P/E ratio of 4.69 right now. This represents a discount compared to its industry's average Forward P/E of 6.97. Meanwhile, AA's PEG ratio is currently 0.54. This metric is used similarly to the famous P/E ratio, but the PEG ratio also takes into account the stock's expected earnings growth rate. The Metal Products - Distribution was holding an average PEG ratio of 0.54 at yesterday's closing price. The Metal Products - Distribution industry is part of the Industrial Products sector. This industry currently has a Zacks Industry Rank of 47, which puts it in the top 19% of all 250+ industries. The Zacks Industry Rank includes is listed in order from best to worst in terms of the average Zacks Rank of the individual companies within each of these sectors. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1. You can find more information on all of these metrics, and much more, on Zacks.com. How to Profit from the Hot Electric Vehicle Industry Global electric car sales in 2021 more than doubled their 2020 numbers. And today, the electric vehicle (EV) technology and very nature of the business is changing quickly. The next push for future technologies is happening now and investors who get in early could see exceptional profits. See Zacks' Top Stocks to Profit from the EV Revolution >> Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report Alcoa (AA): Free Stock Analysis Report To read this article on Zacks.com click here. Zacks Investment Research The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
2022-05-31 00:00:00+00:00	AA	Here is What to Know Beyond Why Alcoa (AA) is a Trending Stock	Alcoa (AA) is one of the stocks most watched by Zacks.com visitors lately. So, it might be a good idea to review some of the factors that might affect the near-term performance of the stock. Shares of this bauxite, alumina and aluminum products company have returned -2.5% over the past month versus the Zacks S&P 500 composite's +0.9% change. The Zacks Metal Products - Distribution industry, to which Alcoa belongs, has gained 0.6% over this period. Now the key question is: Where could the stock be headed in the near term? While media releases or rumors about a substantial change in a company's business prospects usually make its stock 'trending' and lead to an immediate price change, there are always some fundamental facts that eventually dominate the buy-and-hold decision-making. Revisions to Earnings Estimates Here at Zacks, we prioritize appraising the change in the projection of a company's future earnings over anything else. That's because we believe the present value of its future stream of earnings is what determines the fair value for its stock. We essentially look at how sell-side analysts covering the stock are revising their earnings estimates to reflect the impact of the latest business trends. And if earnings estimates go up for a company, the fair value for its stock goes up. A higher fair value than the current market price drives investors' interest in buying the stock, leading to its price moving higher. This is why empirical research shows a strong correlation between trends in earnings estimate revisions and near-term stock price movements. Alcoa is expected to post earnings of $3.66 per share for the current quarter, representing a year-over-year change of +145.6%. Over the last 30 days, the Zacks Consensus Estimate has changed -2.2%. For the current fiscal year, the consensus earnings estimate of $13.17 points to a change of +92.9% from the prior year. Over the last 30 days, this estimate has changed -4.7%. For the next fiscal year, the consensus earnings estimate of $11.26 indicates a change of -14.5% from what Alcoa is expected to report a year ago. Over the past month, the estimate has changed +112.7%. Having a strong externally audited track record, our proprietary stock rating tool, the Zacks Rank, offers a more conclusive picture of a stock's price direction in the near term, since it effectively harnesses the power of earnings estimate revisions. Due to the size of the recent change in the consensus estimate, along with three other factors related to earnings estimates, Alcoa is rated Zacks Rank #3 (Hold). The chart below shows the evolution of the company's forward 12-month consensus EPS estimate: 12 Month EPS Revenue Growth Forecast Even though a company's earnings growth is arguably the best indicator of its financial health, nothing much happens if it cannot raise its revenues. It's almost impossible for a company to grow its earnings without growing its revenue for long periods. Therefore, knowing a company's potential revenue growth is crucial. For Alcoa, the consensus sales estimate for the current quarter of $3.8 billion indicates a year-over-year change of +34.3%. For the current and next fiscal years, $14.78 billion and $14.58 billion estimates indicate +21.6% and -1.3% changes, respectively. Last Reported Results and Surprise History Alcoa reported revenues of $3.29 billion in the last reported quarter, representing a year-over-year change of +14.7%. EPS of $3.06 for the same period compares with $0.79 a year ago. Compared to the Zacks Consensus Estimate of $3.5 billion, the reported revenues represent a surprise of -5.8%. The EPS surprise was +2.34%. The company beat consensus EPS estimates in each of the trailing four quarters. The company topped consensus revenue estimates three times over this period. Valuation No investment decision can be efficient without considering a stock's valuation. Whether a stock's current price rightly reflects the intrinsic value of the underlying business and the company's growth prospects is an essential determinant of its future price performance. Comparing the current value of a company's valuation multiples, such as its price-to-earnings (P/E), price-to-sales (P/S), and price-to-cash flow (P/CF), to its own historical values helps ascertain whether its stock is fairly valued, overvalued, or undervalued, whereas comparing the company relative to its peers on these parameters gives a good sense of how reasonable its stock price is. The Zacks Value Style Score (part of the Zacks Style Scores system), which pays close attention to both traditional and unconventional valuation metrics to grade stocks from A to F (an An is better than a B; a B is better than a C; and so on), is pretty helpful in identifying whether a stock is overvalued, rightly valued, or temporarily undervalued. Alcoa is graded A on this front, indicating that it is trading at a discount to its peers. Click here to see the values of some of the valuation metrics that have driven this grade. Conclusion The facts discussed here and much other information on Zacks.com might help determine whether or not it's worthwhile paying attention to the market buzz about Alcoa. However, its Zacks Rank #3 does suggest that it may perform in line with the broader market in the near term. Zacks Names "Single Best Pick to Double" From thousands of stocks, 5 Zacks experts each have chosen their favorite to skyrocket +100% or more in months to come. From those 5, Director of Research Sheraz Mian hand-picks one to have the most explosive upside of all. It’s a little-known chemical company that’s up 65% over last year, yet still dirt cheap. With unrelenting demand, soaring 2022 earnings estimates, and $1.5 billion for repurchasing shares, retail investors could jump in at any time. This company could rival or surpass other recent Zacks’ Stocks Set to Double like Boston Beer Company which shot up +143.0% in little more than 9 months and NVIDIA which boomed +175.9% in one year. Free: See Our Top Stock and 4 Runners Up >> Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report Alcoa (AA): Free Stock Analysis Report To read this article on Zacks.com click here. Zacks Investment Research The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
2022-05-26 00:00:00+00:00	AA	The Implied Analyst 12-Month Target For IVOG	Looking at the underlying holdings of the ETFs in our coverage universe at ETF Channel, we have compared the trading price of each holding against the average analyst 12-month forward target price, and computed the weighted average implied analyst target price for the ETF itself. For the Vanguard S&P Mid-Cap 400 Growth ETF (Symbol: IVOG), we found that the implied analyst target price for the ETF based upon its underlying holdings is $227.96 per unit. With IVOG trading at a recent price near $168.97 per unit, that means that analysts see 34.91% upside for this ETF looking through to the average analyst targets of the underlying holdings. Three of IVOG's underlying holdings with notable upside to their analyst target prices are Alcoa Corporation (Symbol: AA), ACI Worldwide Inc (Symbol: ACIW), and Power Integrations Inc. (Symbol: POWI). Although AA has traded at a recent price of $60.94/share, the average analyst target is 41.12% higher at $86.00/share. Similarly, ACIW has 38.89% upside from the recent share price of $25.92 if the average analyst target price of $36.00/share is reached, and analysts on average are expecting POWI to reach a target price of $108.17/share, which is 36.90% above the recent price of $79.01. Below is a twelve month price history chart comparing the stock performance of AA, ACIW, and POWI: Below is a summary table of the current analyst target prices discussed above: NAME SYMBOL RECENT PRICE AVG. ANALYST 12-MO. TARGET % UPSIDE TO TARGET Vanguard S&P Mid-Cap 400 Growth ETF IVOG $168.97 $227.96 34.91% Alcoa Corporation AA $60.94 $86.00 41.12% ACI Worldwide Inc ACIW $25.92 $36.00 38.89% Power Integrations Inc. POWI $79.01 $108.17 36.90% Are analysts justified in these targets, or overly optimistic about where these stocks will be trading 12 months from now? Do the analysts have a valid justification for their targets, or are they behind the curve on recent company and industry developments? A high price target relative to a stock's trading price can reflect optimism about the future, but can also be a precursor to target price downgrades if the targets were a relic of the past. These are questions that require further investor research. 10 ETFs With Most Upside To Analyst Targets » The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
2022-05-26 00:00:00+00:00	AA	July 8th Options Now Available For Alcoa (AA)	Investors in Alcoa Corporation (Symbol: AA) saw new options become available today, for the July 8th expiration. At Stock Options Channel, our YieldBoost formula has looked up and down the AA options chain for the new July 8th contracts and identified one put and one call contract of particular interest. The put contract at the $62.00 strike price has a current bid of $5.00. If an investor was to sell-to-open that put contract, they are committing to purchase the stock at $62.00, but will also collect the premium, putting the cost basis of the shares at $57.00 (before broker commissions). To an investor already interested in purchasing shares of AA, that could represent an attractive alternative to paying $62.61/share today. Because the $62.00 strike represents an approximate 1% discount to the current trading price of the stock (in other words it is out-of-the-money by that percentage), there is also the possibility that the put contract would expire worthless. The current analytical data (including greeks and implied greeks) suggest the current odds of that happening are 99%. Stock Options Channel will track those odds over time to see how they change, publishing a chart of those numbers on our website under the contract detail page for this contract. Should the contract expire worthless, the premium would represent a 8.06% return on the cash commitment, or 68.45% annualized — at Stock Options Channel we call this the YieldBoost. Below is a chart showing the trailing twelve month trading history for Alcoa Corporation, and highlighting in green where the $62.00 strike is located relative to that history: Turning to the calls side of the option chain, the call contract at the $63.00 strike price has a current bid of $5.20. If an investor was to purchase shares of AA stock at the current price level of $62.61/share, and then sell-to-open that call contract as a "covered call," they are committing to sell the stock at $63.00. Considering the call seller will also collect the premium, that would drive a total return (excluding dividends, if any) of 8.93% if the stock gets called away at the July 8th expiration (before broker commissions). Of course, a lot of upside could potentially be left on the table if AA shares really soar, which is why looking at the trailing twelve month trading history for Alcoa Corporation, as well as studying the business fundamentals becomes important. Below is a chart showing AA's trailing twelve month trading history, with the $63.00 strike highlighted in red: Considering the fact that the $63.00 strike represents an approximate 1% premium to the current trading price of the stock (in other words it is out-of-the-money by that percentage), there is also the possibility that the covered call contract would expire worthless, in which case the investor would keep both their shares of stock and the premium collected. The current analytical data (including greeks and implied greeks) suggest the current odds of that happening are 99%. On our website under the contract detail page for this contract, Stock Options Channel will track those odds over time to see how they change and publish a chart of those numbers (the trading history of the option contract will also be charted). Should the covered call contract expire worthless, the premium would represent a 8.31% boost of extra return to the investor, or 70.50% annualized, which we refer to as the YieldBoost. Meanwhile, we calculate the actual trailing twelve month volatility (considering the last 253 trading day closing values as well as today's price of $62.61) to be 63%. For more put and call options contract ideas worth looking at, visit StockOptionsChannel.com. Top YieldBoost Calls of the S&P 500 » The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
2022-05-25 00:00:00+00:00	AA	7 Undervalued Blue-Chip Stocks to Buy for June	InvestorPlace - Stock Market News, Stock Advice & Trading Tips These undervalued blue-chip stocks possess excellent long-term potential. Micron (MU): Semiconductor stock that blends growth and low valuation. Alcoa (AA): Net income growth bodes very well for the commodities giant. Nutrien (NTR): The undervalued Canadian firm is vital to food production. American International Group (AIG): AIG’s upside is attractive and its staid dividend smooths current volatility. 3M (MMM): Four straight earnings beats suggest 3M will remain strong, and it’s cheap now. Microsoft (MSFT): Microsoft continues to perform exceptionally well, but it’s discounted despite its overwhelming buy status. Pfizer (PFE): Vaccine sales will fuel future growth, making Pfizer noteworthy. Source: Shutterstock With the ongoing market correction, there are bound to be multiple undervalued blue-chip stocks for sale at excellent prices. For investors who’ve long held positions in these equities, the correction is troublesome. Gains have been erased. Of course, one investor’s loss is often another’s gain — and right now is a strong time to pick up blue-chip stocks while they remain undervalued. These stocks are household names and trade with massive market capitalizations. They’re usually industry leaders and often the biggest player in their respective sectors. They boast dependable earnings, substantial operating histories and often pay dividends as well. The 7 Highest-Yielding Dividend Stocks to Buy Now for Income With that said, let’s look at the best deals among undervalued blue-chip stocks to buy in June. MU Micron $66.44 AA Alcoa $59.23 NTR Nutrien $97.82 AIG American International Group $56.96 MMM 3M $145.93 MSFT Microsoft $257.50 PFE Pfizer $53.81 Micron (MU) Source: Charles Knowles / Shutterstock.com Micron (NASDAQ:MU) is a U.S.-based semiconductor company that often fails to garner as much attention as similar firms. That said, there’s plenty to appreciate about it. It makes DRAM, NAND, and NOR memory and storage technology, but is rarely mentioned alongside AMD (NASDAQ:AMD) or Nvidia (NASDAQ:NVDA). That said, MU stock is very much worth considering right now. High-level metrics clearly suggest there’s massive upside in it at current prices. The equity boasts an average target stock price of $111.45 but can be purchased for under $70 currently. The reason it’s worth considering is that MU stock is slated to grow as measured by net income while likely increasing its dividend. All the while, it remains cheap based on price-to-earnings (P/E) ratio. Its 8.5x P/E ratio is well below the 19.16x average across the semiconductor industry. If you want bottom-line growth at a cheap price, Micron is absolutely worth picking up. Alcoa (AA) Source: Daniel J. Macy / Shutterstock.com Alcoa (NYSE:AA) produces bauxite, alumina and aluminum products. Its business is mundane and by most standards, it isn’t likely to excite investors on that alone. However, the upside in AA stock should. It is trading lower over the past few weeks, but it hasn’t lost value overall in 2022. Yes, it possesses upside based on consensus analyst prices. Those estimates suggest a potential increase of nearly 50% at AA stock’s current price. The reason investors should believe share prices can rise quickly lies in the bottom-line growth predicted for the firm. In 2021, Alcoa’s $12.2 billion in revenue led to a net income of $429 million. 7 Large-Cap Stocks to Buy Right Now In 2022, that revenue is anticipated to increase by more than 18% to $14.4 billion. That’s nice enough growth, but what really should impress is the notion that Alcoa’s net income is expected to nearly quintuple at the same time. The company’s net income is expected to reach $2.1 billion in 2022. Nutrien (NTR) Source: Pavel Kapysh/ShutterStock.com It’s hard to read about markets and not come across a headline about the increasing value of food production and cropland. They imply companies like Nutrien (NYSE:NTR), which produces potash, nitrogen and phosphate, will have more importance moving forward. Increasing food production will require more land under cultivation, which in turn requires more fertilizer use that includes the products Nutrien produces. That’s the underlying macroeconomic argument that favors the company. The fundamental argument that favors NTR stock is its valuation relative to its peers. The firm’s 13x P/E ratio is slightly lower than the industry median of 15.1x. That is wildly lower than its industry, which is a positive. Stocks that are severely undervalued often suffer due to factors outside of what their fundamentals can explain. In other words, Nutrien is not a value trap. The company is growing following record first-quarter earnings of $1.4 billion. Both revenue and profit are expected to continue to surge as the Canadian firm responds to fill the void created by the ongoing war in Ukraine. American International Group (AIG) Source: Evan El-Amin / Shutterstock The insurance industry is not an exciting business. Therefore, it is to be expected that insurance stocks carry low valuation metrics. That said, AIG (NYSE:AIG) stands out among its peers in terms of value. The stock’s P/E ratio of 5.8x is roughly half that of the industry overall, which sits at 10.7x. That doesn’t tell us much, because the market could simply prefer an average insurance firm to AIG. If that were the case, then its much lower valuation wouldn’t be an opportunity. But it is an opportunity because AIG stock’s median P/E ratio over the last 10 years is 9.85x. That strongly implies once we exit the current market — whenever that may be — then AIG stock should fare much, much better. 7 REITs to Buy for the Second Half of 2022 When that capital returns, share prices will rise. Until then, current investors also have a modest and reliable dividend yielding 2.3% to look forward to. 3M (MMM) Source: r.classen / Shutterstock.com 3M (NYSE:MMM) produces a lot of products — in fact, more than 60,000 of them. So it’s almost inevitable that you’ve used one or more of them in the past. But it isn’t the breadth of product offerings that makes MMM stock interesting to value investors as much as current prices. 3M shares began 2022 trading around $180. However, they’ve fallen to a range between $140 and $150 as of early February. They’ve since struggled to escape that range. But there’s reason to remain enthusiastic about the firm’s prospects. For one, it has exceeded analyst expectations in each of the past four quarters and provided earnings beats. And each of those four quarters has exceeded the high points of analyst ranges. One valuation suggests MMM stock should trade at $186.80 based on several historic multiples. Microsoft (MSFT) Source: The Art of Pics / Shutterstock.com When 2022 began, Microsoft (NASDAQ:MSFT) stock was trading at $335. That wasn’t far from its target stock price of $360. So it would have been much harder to proffer the idea that there was massive upside in it back then. That was also before inflation was the dominant issue it now is, and the tech wreck hadn’t yet done much damage. Fast forward a few months and the story is vastly different. Microsoft shares trade near $250. However, analysts remain steadfast, with the overwhelming majority rating it a buy. 7 Dividend Stocks to Boost Your Retirement Savings Microsoft continues to perform amazingly well, though. Its most recent earnings showed that revenues increased 18%, reaching $49.4 billion in the quarter. I could go on and on about Microsoft’s impressive results, but the point is that when the market offers MSFT stock cheap, buying just makes sense. Pfizer (PFE) Source: photobyphm / Shutterstock.com Pfizer (NYSE:PFE) received a modest bump on May 20 when it was announced that the Centers for Disease Control and Prevention (CDC) had cleared its booster for use in children ages 5 to 11. While that news indicates a new revenue stream for the company, its prospects moving forward are less about Covid-19 vaccines and more about leveraging the proceeds from that business. Investors believe Pfizer is losing its sheen as the pandemic enters its later stages. PFE stock has lost about 5% of its value year-to-date. But it was one of the winners in the race to develop a vaccine for Covid-19. That ensures the company has money to develop and acquire future potential blockbuster drugs. It’s now cheap, well-funded and in position to remain so for the long term. On the date of publication, Alex Sirois did not have (either directly or indirectly) any positions in the securities mentioned in this article. The opinions expressed in this article are those of the writer, subject to the InvestorPlace.com Publishing Guidelines. The post 7 Undervalued Blue-Chip Stocks to Buy for June appeared first on InvestorPlace. The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
2022-05-24 00:00:00+00:00	AA	COLUMN-Europe's aluminium output slides as energy crunch bites: Andy Home	By Andy Home LONDON, May 24 (Reuters) - Europe's primary aluminium smelters are continuing to curtail production in the face of soaring energy costs. The region's output of the light metal has fallen by an annualised 550,000 tonnes over the last year with the slide still accelerating. Aluminium smelting is an energy-intensive business and Europe's smelters were struggling with elevated power pricing even before Russia launched what it calls a "special military operation" in Ukraine. That has exacerbated Europe's energy crunch with forward power prices regularly hitting fresh highs. The cost on Europe's aluminium smelters is rising all the time with scant sign of any imminent relief. Little wonder then that European buyers are paying record physical premiums or that aluminium is now being imported from as far away as China. SLIDING PRODUCTION IN THE WEST... Western European output of primary aluminium totalled 244,000 tonnes in April, according to the latest assessment by the International Aluminium Institute (IAI). That was down by 13.2% on April last year with the annualised run-rate sinking to a fresh low of 2.97 million tonnes. Annualised production has now fallen by 470,000 tonnes from last year's May peak of 3.44 million tonnes - just before power prices starting moving upwards. The biggest single loss has been the 228,000-tonne per year San Ciprian smelter in Spain, which owner-operator Alcoa AA.N has idled until 2024, when it will reopen with renewable power sourcing. Many of Western Europe's other aluminium smelters are privately owned, meaning no publicly-available quarterly updates, although several warned in the fourth quarter last year that they were curtailing capacity. Annualised production in the region has dropped another 305,000 tonnes since then, implying accumulating rates of power-related smelter disruption. The problem is that European power prices show no signs of easing any time soon and may indeed get worse as the European Union attempts to pivot away from reliance on Russian fossil fuels. When European smelters first began idling capacity in the third quarter of 2021, the expectation was that it was a seasonal phenomenon with the cuts likely to be reversed in spring as temperatures rose and energy demand fell. That is no longer part of the script. ...AND NOW IN THE EAST Aluminium production in Eastern Europe has also been falling since the start of 2022. April production of 333,000 tonnes was down by 2.4% on April 2021, while annualised run-rates have dropped by a little over 80,000 tonnes in the first four months of the year. The IAI's Eastern Europe production figures include Russian giant Rusal but also several smaller operators, all of which have been reducing output. The Podgorica smelter in Montenegro was fully idled by the end of 2021, taking out the last 63,000 tonnes of operating capacity. The plant will maintain products output using purchased ingot, quite possibly Chinese ingot, judging by the 20,000 tonnes of exports that departed China in February for the Balkan country. The Slovalco smelter in Slovakia cut 20% of its 175,000-tonne per year capacity late last year and another 20% in the first two months of this year. The largest reduction and the one that may be driving the year-to-date decline in regional production has come at Romanian producer Alro, which announced in December it would be cutting three of five operating potlines, taking out 132,500 tonnes of production capacity. There's no evidence yet that Rusal's production of primary aluminium has been impacted by the loss of alumina feed from its Ukrainian refinery, which was closed shortly after the Russian invasion, or its Australian operations after the country's government prohibited exports. Or at least not through April. The IAI's monthly updates are inevitably a rear-view mirror in what is a fast-changing European aluminium dynamic. PREMIUM SURGE Russian aluminium is not sanctioned by either the United States or the European Union. Both have already learnt the hard way that Rusal is a strategic supplier of aluminium to Europe. U.S. sanctions on the company and its owner Oleg Deripaska in 2018 were massively disruptive to aluminium supply-chains and pricing. Those sanctions were lifted in 2019 after Deripaska relinquished operating control of the company, affording Rusal diplomatic cover against sanctions this time around. European consumers can only be grateful, even those that have decided to self-sanction anyway. They are already paying a record $615 per tonne over the LME cash price for physical duty-paid metal on the spot market. Without continued flows of Rusal metal, they would be paying higher prices still. The historic premium for physical aluminium in Europe is drawing in metal from Asia, both from LME warehouses in the region and, highly unusually, from China. Primary aluminium exports are subject to a 15% duty in China, which makes it all the more extraordinary that it shipped significant amounts of metal to Europe in the first quarter of this year. China's winter power crunch has passed and the country's smelters are ramping up aluminium production. National output rose by an annualised 3.4 million tonnes in the first four months of the year, according to the IAI. With domestic demand growth stalled by Beijing's zero-COVID lockdown policy, China has plenty of metal to export. Europe, by contrast, is experiencing a widening supply deficit as the region's smelters curtail ever more capacity. That dynamic won't change until the region's energy crisis abates, which it shows no signs of doing any time soon. The opinions expressed here are those of the author, a columnist for Reuters. Western European aluminium output takes a 500,000-tonne hithttps://tmsnrt.rs/3PIeKlo Eastern European aluminium production sliding since start of 2022https://tmsnrt.rs/3MN9r1Z European physical aluminium premiums hit record highs as smelters closehttps://tmsnrt.rs/3wFEIx0 (Editing by Kirsten Donovan) ((andy.home@thomsonreuters.com, 44-207-542-4412 and on Twitter https://twitter.com/AndyHomeMetals)) The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
2022-05-23 00:00:00+00:00	AA	XRP vs. Alcoa: Price Relationship Crosses Threshold	Here at CryptocurrenciesChannel.com, we find it interesting to track various ETF and stock prices versus various digital assets over time. We noticed that as of 5/22/2022, XRP ($XRP) can buy you the least amount of Alcoa shares, in the past year. For example, if you had 100 XRP coins and wished to buy shares of AA(Symbol: AA) with the proceeds, you would only be able to buy 0.68 share of AA. That's versus a high amount of 3.35 shares over the trailing twelve months. Here's how this relationship looks charted, over the past year: The main driver of the above bar chart has, of course, been the performance of Alcoa shares, relative to the performance of XRP; and here's how the two compare over the past year on a total return basis: Check out our XRP historical price chart and Alcoa vs Crypto pages for additional charts. Note that any stock splits and/or dividends are included when we calculate the AA returns. Be sure to follow us at CryptocurrenciesChannel.com for more interesting stock market vs. digital asset comparisons! The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
2022-05-18 00:00:00+00:00	AA	Is Trending Stock Alcoa (AA) a Buy Now?	Alcoa (AA) has been one of the most searched-for stocks on Zacks.com lately. So, you might want to look at some of the facts that could shape the stock's performance in the near term. Shares of this bauxite, alumina and aluminum products company have returned -26.8% over the past month versus the Zacks S&P 500 composite's -6.8% change. The Zacks Metal Products - Distribution industry, to which Alcoa belongs, has lost 11.8% over this period. Now the key question is: Where could the stock be headed in the near term? While media releases or rumors about a substantial change in a company's business prospects usually make its stock 'trending' and lead to an immediate price change, there are always some fundamental facts that eventually dominate the buy-and-hold decision-making. Earnings Estimate Revisions Rather than focusing on anything else, we at Zacks prioritize evaluating the change in a company's earnings projection. This is because we believe the fair value for its stock is determined by the present value of its future stream of earnings. We essentially look at how sell-side analysts covering the stock are revising their earnings estimates to reflect the impact of the latest business trends. And if earnings estimates go up for a company, the fair value for its stock goes up. A higher fair value than the current market price drives investors' interest in buying the stock, leading to its price moving higher. This is why empirical research shows a strong correlation between trends in earnings estimate revisions and near-term stock price movements. Alcoa is expected to post earnings of $3.66 per share for the current quarter, representing a year-over-year change of +145.6%. Over the last 30 days, the Zacks Consensus Estimate has changed -3.8%. The consensus earnings estimate of $13.17 for the current fiscal year indicates a year-over-year change of +92.8%. This estimate has changed -7% over the last 30 days. For the next fiscal year, the consensus earnings estimate of $11.26 indicates a change of -14.5% from what Alcoa is expected to report a year ago. Over the past month, the estimate has changed +111.2%. With an impressive externally audited track record, our proprietary stock rating tool -- the Zacks Rank -- is a more conclusive indicator of a stock's near-term price performance, as it effectively harnesses the power of earnings estimate revisions. The size of the recent change in the consensus estimate, along with three other factors related to earnings estimates, has resulted in a Zacks Rank #3 (Hold) for Alcoa. The chart below shows the evolution of the company's forward 12-month consensus EPS estimate: 12 Month EPS Projected Revenue Growth While earnings growth is arguably the most superior indicator of a company's financial health, nothing happens as such if a business isn't able to grow its revenues. After all, it's nearly impossible for a company to increase its earnings for an extended period without increasing its revenues. So, it's important to know a company's potential revenue growth. In the case of Alcoa, the consensus sales estimate of $3.78 billion for the current quarter points to a year-over-year change of +33.4%. The $14.78 billion and $14.58 billion estimates for the current and next fiscal years indicate changes of +21.6% and -1.3%, respectively. Last Reported Results and Surprise History Alcoa reported revenues of $3.29 billion in the last reported quarter, representing a year-over-year change of +14.7%. EPS of $3.06 for the same period compares with $0.79 a year ago. Compared to the Zacks Consensus Estimate of $3.5 billion, the reported revenues represent a surprise of -5.8%. The EPS surprise was +2.34%. The company beat consensus EPS estimates in each of the trailing four quarters. The company topped consensus revenue estimates three times over this period. Valuation Without considering a stock's valuation, no investment decision can be efficient. In predicting a stock's future price performance, it's crucial to determine whether its current price correctly reflects the intrinsic value of the underlying business and the company's growth prospects. Comparing the current value of a company's valuation multiples, such as its price-to-earnings (P/E), price-to-sales (P/S), and price-to-cash flow (P/CF), to its own historical values helps ascertain whether its stock is fairly valued, overvalued, or undervalued, whereas comparing the company relative to its peers on these parameters gives a good sense of how reasonable its stock price is. The Zacks Value Style Score (part of the Zacks Style Scores system), which pays close attention to both traditional and unconventional valuation metrics to grade stocks from A to F (an An is better than a B; a B is better than a C; and so on), is pretty helpful in identifying whether a stock is overvalued, rightly valued, or temporarily undervalued. Alcoa is graded A on this front, indicating that it is trading at a discount to its peers. Click here to see the values of some of the valuation metrics that have driven this grade. Bottom Line The facts discussed here and much other information on Zacks.com might help determine whether or not it's worthwhile paying attention to the market buzz about Alcoa. However, its Zacks Rank #3 does suggest that it may perform in line with the broader market in the near term. 5 Stocks Set to Double Each was handpicked by a Zacks expert as the #1 favorite stock to gain +100% or more in 2021. Previous recommendations have soared +143.0%, +175.9%, +498.3% and +673.0%. Most of the stocks in this report are flying under Wall Street radar, which provides a great opportunity to get in on the ground floor. Today, See These 5 Potential Home Runs >> Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report Alcoa (AA): Free Stock Analysis Report To read this article on Zacks.com click here. Zacks Investment Research The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
2022-05-17 00:00:00+00:00	AA	August 19th Options Now Available For Alcoa	Investors in Alcoa Corporation (Symbol: AA) saw new options become available today, for the August 19th expiration. One of the key inputs that goes into the price an option buyer is willing to pay, is the time value, so with 94 days until expiration the newly available contracts represent a potential opportunity for sellers of puts or calls to achieve a higher premium than would be available for the contracts with a closer expiration. At Stock Options Channel, our YieldBoost formula has looked up and down the AA options chain for the new August 19th contracts and identified one put and one call contract of particular interest. The put contract at the $60.00 strike price has a current bid of $7.30. If an investor was to sell-to-open that put contract, they are committing to purchase the stock at $60.00, but will also collect the premium, putting the cost basis of the shares at $52.70 (before broker commissions). To an investor already interested in purchasing shares of AA, that could represent an attractive alternative to paying $62.09/share today. Because the $60.00 strike represents an approximate 3% discount to the current trading price of the stock (in other words it is out-of-the-money by that percentage), there is also the possibility that the put contract would expire worthless. The current analytical data (including greeks and implied greeks) suggest the current odds of that happening are 99%. Stock Options Channel will track those odds over time to see how they change, publishing a chart of those numbers on our website under the contract detail page for this contract. Should the contract expire worthless, the premium would represent a 12.17% return on the cash commitment, or 47.24% annualized — at Stock Options Channel we call this the YieldBoost. Below is a chart showing the trailing twelve month trading history for Alcoa Corporation, and highlighting in green where the $60.00 strike is located relative to that history: Turning to the calls side of the option chain, the call contract at the $65.00 strike price has a current bid of $7.20. If an investor was to purchase shares of AA stock at the current price level of $62.09/share, and then sell-to-open that call contract as a "covered call," they are committing to sell the stock at $65.00. Considering the call seller will also collect the premium, that would drive a total return (excluding dividends, if any) of 16.28% if the stock gets called away at the August 19th expiration (before broker commissions). Of course, a lot of upside could potentially be left on the table if AA shares really soar, which is why looking at the trailing twelve month trading history for Alcoa Corporation, as well as studying the business fundamentals becomes important. Below is a chart showing AA's trailing twelve month trading history, with the $65.00 strike highlighted in red: Considering the fact that the $65.00 strike represents an approximate 5% premium to the current trading price of the stock (in other words it is out-of-the-money by that percentage), there is also the possibility that the covered call contract would expire worthless, in which case the investor would keep both their shares of stock and the premium collected. The current analytical data (including greeks and implied greeks) suggest the current odds of that happening are 49%. On our website under the contract detail page for this contract, Stock Options Channel will track those odds over time to see how they change and publish a chart of those numbers (the trading history of the option contract will also be charted). Should the covered call contract expire worthless, the premium would represent a 11.60% boost of extra return to the investor, or 45.03% annualized, which we refer to as the YieldBoost. The implied volatility in the call contract example above is 70%. Meanwhile, we calculate the actual trailing twelve month volatility (considering the last 253 trading day closing values as well as today's price of $62.09) to be 63%. For more put and call options contract ideas worth looking at, visit StockOptionsChannel.com. Top YieldBoost Calls of the S&P 500 » The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
2022-05-16 00:00:00+00:00	AA	7 Undervalued Blue-Chip Stocks to Buy Now	InvestorPlace - Stock Market News, Stock Advice & Trading Tips These undervalued blue-chip stocks are great long-term investments to buy now. Citigroup (C): Despite declining revenues, the world’s banking leader offers a double-digit margin and cheap valuation multiples. Goldman Sachs (GS): With robust profitability and a strong track record, the investment bank is an opportunity at its current price. Alcoa (AA): The commodity firm is one of the most affordable stocks on our undervalued blue-chip stocks list that can deliver strong gains in the long term. Moderna (MRNA): The biotech giant has strong growth prospects and exchanges at a low price Occidental Petroleum (OXY): After a solid year-to-date stock performance, the largest U.S. oil producer continues to trade at underrated valuation metrics. Micron (MU): The semiconductor stock is a strong candidate for our undervalued blue-chip stocks list, due to its weak valuation multiples and improving bottom line. Freeport-McMoRan (FCX): The copper miner is a great hedge against inflation and its attractive valuation metrics make it a long-term buy. Source: Shutterstock The well-known finance adage, “Sell in May and go away” might prove truer than ever in 2022, as the market sell-off continues to pressure equity markets. In this difficult market environment defined by rising worries as to ramping inflation and higher interest rates, the SPDR S&P 500 Trust ETF (NYSEARCA:SPY) reached a year-to-date low of $392, down 17.4%. One of the investment strategies to consider in these challenging times is to buy undervalued blue-chip stocks that tend to better withstand market volatility. The recent market correction created good opportunities for long-term investors looking to get into undervalued blue-chip stocks. Typically blue-chip stocks are well-established and financially sound companies, with an excellent track record and a huge market capitalization. 7 Safe Small-Cap Stocks to Buy Now The markets might continue to go south in the near term, but this selection of undervalued blue-chip stocks can generate sturdy gains in the long term. Ticker Company Current Price C Citigroup Inc. $47.64 GS The Goldman Sachs Group, Inc. $306.99 AA Alcoa Corporation $58.33 MRNA Moderna, Inc. $137.91 OXY Occidental Petroleum Corporation $64.08 MU Micron Technology, Inc. $71.92 FCX Freeport-McMoRan Inc. $35.04 Undervalued Blue-Chip Stocks: Citigroup (C) Source: TungCheung / Shutterstock.com Citigroup (NYSE:C) is the world’s leading banking group with approximately 200 million customers and a presence in more than 160 countries. C stock dipped 20% year-to-date following a difficult Q1 2022 macro backdrop that weighed on Citi’s capital market activity and a $1.5 billion reserve build to prepare for losses linked to its exposure in Russia. Citi’s top-line growth is expected to flatten this year, posting a marginal revenue increase of 0.8% to $72.4 million, but should expand faster in 2023, up 3% to $74.6 billion. On the other side, after increasing robustly in 2021, up 103.5% to $20.7 billion, net profit is estimated to shrink 35.9% this year to $13.3 billion, offering a double-digit profit margin of 18.4% over the year. The banking giant is an undervalued blue-chip stock that investors should consider buying on its dip. C stock has a low forward price-book ratio of only 0.5x and exchanges 7.66x 2022e P/E. Besides, analysts offer an average target price of $65.41 per share on Citi’s shares, representing an upside of more than 26% and Citigroup is expected to deliver an expected dividend yield of 4% in 2022. Goldman Sachs (GS) Source: Volodymyr Plysiuk / Shutterstock.com Goldman Sachs (NYSE:GS) is the second-largest investment bank in the world and is another undervalued blue-chip stock to buy now. GS stock plunged nearly 20% since the beginning of the year as the rapidly evolving equity market environment contracted GS’s Asset Management and Investment Banking activities. Goldman Sachs’ financials are on a decelerating path, as net sales are projected to decrease 19.2% to $47.95 billion in 2022, before rebounding 3.3% to $49.5 billion in 2023. Net income is expected to shrink more rapidly this year, down 36% to $13.53 billion, and should remain relatively flat in 2023, up 1.8% to $13.78 billion. However, GS’ profitability remains robust, with an estimated profit margin of 28.2% this year, down 740 basis points compared to 2021. However, the investment firm trades at a fair valuation, posting a 2022e P/B ratio of 1.01x and a cheap forward P/E of 8.07x, providing an opportunity for long-term investors. In addition, the average target price offered by Wall Street analysts stands at $419.42 per share, a compelling upside of 35%. Alcoa (AA) Source: Daniel J. Macy / Shutterstock.com Alcoa (NYSE:AA) is an industry leader in the production of bauxite, alumina and aluminum products. AA stock outperformed the equity market since the beginning of the year, losing just 2% amid surging commodity prices. The commodity specialist is expected to grow significantly this year. Revenues are estimated to expand 18.4% year on year to $14.39 billion in 2022, whereas net profit is forecasted to jump 394% to $2.12 billion. With this rapid increase, AA’s profit margin should reach a double-digit figure of 14.7% in 2022 versus only 3.53% last year. In addition, Alcoa had a net cash position of $120 million at the end of 2021, which is expected to surge to $1.34 billion, a positive development given rising interest rates. The aluminum giant has cheap multiples, trading at 5.92x forward P/E and only 2.36x 2022e EV/EBITDA. AA is one of the most affordable stocks on our undervalued blue-chip stocks list that can deliver strong gains in the long term. The stock has an upside potential of 73% according to the consensus of analysts. Undervalued Blue-Chip Stocks: Moderna (MRNA) Source: Carlos l Vives / Shutterstock.com Moderna (NASDAQ:MRNA) is a biotechnology company specializing in the research and development of therapeutics and vaccines for cancer, infectious, autoimmune, and cardiovascular diseases. MRNA stock is down 45% year-to-date with curving interest for Covid-19 vaccines. The biotech firm has increased significantly its growth in the past two years. Revenues skyrocketed to $18.47 billion in 2021, up 2,200% year-on-year, and should continue to advance this year, up 18.8% to $21.94 billion. MRNA’s net profits are however expected to slow, down 5.9% to $11.4 billion in 2022, representing a comfortable profit margin of 52.4% over the year. While the company might continue to see selling pressure in the short term, MRNA stock has low multiples, posting a forward EV/EBITDA of 2.85x and 2022e P/E ratio of 5.23x. At this price, investors looking to enter a biotech giant should consider investing in this undervalued blue-chip stock. Occidental Petroleum (OXY) Source: Pavel Kapysh / Shutterstock.com Occidental Petroleum (NYSE:OXY) is one of the largest oil producers in the U.S., with a leading position in the Permian, DJ basins, and the offshore Gulf of Mexico. OXY shares soared 121% year-to-date, outperforming most of its oil peers and the broader equity market. Despite this strong performance, tight oil markets should continue to sustain the stock. Occidental’s net sales advanced robustly in 2021, up 61.8% to $26.3 billion, and are expected to continue on a robust pace in 2022, up 28.7% to $33.8 billion. Besides, OXY’s bottom line should enhance significantly this year, with net income estimated to increase 471.1% to $8.69 billion, representing a high-profit margin of 25.7% per year. OXY’s net debt stood at $26.8 billion in 2021, representing a leverage ratio of 1.78x, nevertheless, the oil stock is expected to reduce net debt by 43.4% this year to $15.1 billion, allowing the firm to solidify its balance sheet With these robust fundamentals, the oil specialist exchanges at a low price, posting a forward EV/EBITDA of only 3.61x and a 2022e P/E ratio of 7.18x. However, the upside on Occidental’s equity story remains limited, with an average target price of $69.47 per share. Micron Technology (MU) Source: Charles Knowles / Shutterstock.com Micron Technology (NASDAQ:MU) specializes in the design, manufacturing, and marketing of semiconductors. MU’s products include memory products (dynamic memories, flash memories, etc.) and semiconductor systems. Since the beginning of the year, MU stock shrank 22%, underperforming its sector and the equity market. The company is a strong candidate in our list of undervalued blue-chip stocks, due to its weak valuation multiples and improving bottom line. After growing rapidly in 2021, up 29.3% to $27.7 billion, revenues are expected to expand by another 21.7% to $33.7 billion this year. Net income is projected to balloon 76.5% this year to $10.3 billion, offering an elevated profit margin of 30.7% per year. The correction seen on MU stock has created an opportunity to enter this undervalued semiconductor stock that exchanges at 3.85x forward EV/EBITDA and only 7.84x 2022e P/E. In addition, the consensus of analysts offers a strong upside for the semiconductor specialist, delivering a target price of $114.69 per share, corresponding to an appreciation potential of more than 60%. Undervalued Blue-Chip Stocks: Freeport-McMoRan (FCX) Source: 360b / Shutterstock.com Freeport-McMoRan (NYSE:FCX) is a premier global leader in the production of copper and gold, with mines in the United States, Peru, Chile, Indonesia and the Congo. FCX stock is down 16% on the year. FCX’s revenues increased robustly last year, up 60.9% to $22.8 billion, and are projected to continue to lift at a double digit-rate, up 18.2% to $27 billion. On the other side, net income posted a steeper advance last year, lifting 618.9% to $4.3 billion and is estimated to appreciate by 30.8% to $5.63 billion. With these robust fundamentals, Freeport’s profit margin is expected to grow from 18.8% in 2021 to 20.9%, providing tailwinds to copper stock. Freeport is a great hedge against inflation, as copper is one of the most used metals to gauge economic activity. In addition, the undervalued blue-cheap stock exchanges at a low 2022e EV/EBITDA of 4.31x and a forward P/E of 9.77x, making it a great long-term investment. The upside potential is also attractive, as analysts offer an average target price of $51.23 per share, corresponding to an appreciation potential of more than 42%. On the date of publication, Cristian Docan did not have (either directly or indirectly) any positions in the securities mentioned in this article. The opinions expressed in this article are those of the writer, subject to the InvestorPlace.com Publishing Guidelines. The post 7 Undervalued Blue-Chip Stocks to Buy Now appeared first on InvestorPlace. The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
2022-05-13 00:00:00+00:00	AA	Here's Why Avery Dennison (AVY) is an Attractive Bet Now	Avery Dennison Corporation AVY looks attractive at the moment, aided by forecast-topping first-quarter 2022 results. The company is benefiting from strong demand for labeling technology for consumer-packaged goods. Solid growth in intelligent labels, driven by strong apparel label business and strength in high-value product categories and Radio-frequency identification (RFID) will drive growth. Apart from this, expected benefits from pricing and re-engineering actions to mitigate inflationary cost pressure continue to support margins. These factors position the company as a promising investment option. Factors Detailing Earnings & Sales surpass Q1 Estimates: Avery Dennison reported first-quarter adjusted earnings of $2.40 per share, beating the Zacks Consensus Estimate of $2.18. Revenues of $2,349 million also outpaced the Consensus Estimate of $2,299 million. The top line increased 12.7% year over year while the bottom line came in line with the year-ago quarter’s levels. Positive Earnings Surprise History: Avery Dennison, a Zacks Rank #2 (Buy) stock, has a trailing four-quarter earnings surprise of 5.31%, on average. Positive Growth Expectations: The company’s earnings estimate for the current year is pegged at $9.71, suggesting year-over-year growth around 9%. Upward Estimate Revision: Current year figures are looking promising, with three estimates moving higher in the past one month compared to no downward revisions. Earnings estimates for 2022 have gone up 1.15% in the past 30 days. Upbeat View: In the first-quarterearnings call Avery Dennison raised financial guidance for the current year. Adjusted EPS for 2022 is now expected in the band of $9.45-$9.85, up from the prior guidance of $9.35-$9.75. The company reported an adjusted EPS of $8.91 in 2021. It expects organic sales growth of 15%-17%, driven by higher volume and the impact of higher prices. Strong Financials: Avery Dennison’s balance sheet remains strong and has ample capacity to continue funding acquisitions, executing a disciplined capital-allocation strategy, investing in organic growth and returning cash to shareholders. In the first quarter of 2022, the company deployed $33 million for acquisitions and returned $208 million in cash to shareholders through share repurchases and dividends. Its balance sheet remains strong, with net debt to adjusted EBITDA ratio at 2.3 as of the end of the first quarter, meeting the lower end of its long-term target of 2.3-2.6. Growth Drivers Labeling of non-durable consumer goods, like food, beverage, home and personal care products, accounts for around 40% of Avery Dennison’s revenues. The company is witnessing soaring demand for these products amid the pandemic. Over the long run, increasing demand from emerging markets on the back of the rising middle class and the consequent surge in demand for packaged goods and a shift in the labeling technology to pressure-sensitive materials will fuel the company’s growth. Apart from these factors, around 15% of its revenues is tied to logistics and shipping, which will be aided by a rise in e-commerce activities. Strong demand for consumer-packaged goods and e-commerce trends drive the Label and Graphic Materials segment. In the current year, the segment is well poised to benefit from solid top-line growth and margin expansion, volume improvement, focus on growing high-value categories led by specialty labels and contributions from productivity initiatives. Avery Dennison’s Retail Branding and Information Solutions (RBIS) segment is gaining from solid margin expansions, driven by strength in high-value categories and the base business. The segment is witnessing strong volume growth in Intelligent Labels, RFID and the core apparel label business, with particular strength and performance in premium channels andcontinued double-digit growth in external embellishments. The segment’s Intelligent Labels business continues to expect long-term annual growth of 15-20%, with solid growth in the apparel business. Apart from apparel, the RBIS segment is recording growth in new applications within food, logistics and home goods. The company is also investing in digital capabilities and solutions. Strong demand for healthcare categories is aiding the company’s Industrial and Healthcare Materials segment. Avery Dennison has undertaken several pricing and re-engineering actions to mitigate inflationary cost pressure. The company has also announced additional price increases in most of its businesses worldwide. These factors will support the company’s margins. Avery Dennison Corporation Price and Consensus Avery Dennison Corporation price-consensus-chart \| Avery Dennison Corporation Quote Stocks to Consider Some other top-ranked stocks in the Industrial Products sector are Packaging Corporation of America PKG, Graphic Packaging Holding Company GPK and Alcoa AA. While PKG and GPK flaunt a Zacks Rank #1 (Strong Buy), AA carries a Zacks Rank #2. You can see the complete list of today’s Zacks #1 Rank stocks here. Packaging Corporation has an expected earnings growth rate of 16.2% for 2022. The Zacks Consensus Estimate for the current year’s earnings has moved up 4.2% in the past 60 days. PKG has a trailing four-quarter earnings surprise of 19.6%, on average. Packaging Corporation’s shares have gained 4% in the past year. Graphic Packaging has an estimated earnings growth rate of 86.8% for the current year. In the past 60 days, the Zacks Consensus Estimate for current-year earnings has been revised upward by 7.6%. Graphic Packaging pulled off a trailing four-quarter earnings surprise of 7.2%, on average. The company’s shares have appreciated 14.8% in a year. Alcoa has a projected earnings growth rate of 107% for the current year. The Zacks Consensus Estimate for 2022 earnings has moved north by 76% in the past 60 days. Alcoa delivered a trailing four-quarter earnings surprise of 17.4%, on average. Alcoa’s shares have gained 32% in the past year. Zacks Names "Single Best Pick to Double" From thousands of stocks, 5 Zacks experts each have chosen their favorite to skyrocket +100% or more in months to come. From those 5, Director of Research Sheraz Mian hand-picks one to have the most explosive upside of all. It’s a little-known chemical company that’s up 65% over last year, yet still dirt cheap. With unrelenting demand, soaring 2022 earnings estimates, and $1.5 billion for repurchasing shares, retail investors could jump in at any time. This company could rival or surpass other recent Zacks’ Stocks Set to Double like Boston Beer Company which shot up +143.0% in little more than 9 months and NVIDIA which boomed +175.9% in one year. Free: See Our Top Stock and 4 Runners Up >> Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report Alcoa (AA): Free Stock Analysis Report Avery Dennison Corporation (AVY): Free Stock Analysis Report Packaging Corporation of America (PKG): Free Stock Analysis Report Graphic Packaging Holding Company (GPK): Free Stock Analysis Report To read this article on Zacks.com click here. Zacks Investment Research The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
2022-05-12 00:00:00+00:00	AA	Reasons to Hold Sealed Air (SEE) in Your Portfolio Now	Sealed Air Corporation SEE is gaining from the ongoing demand for packaging for food, medical supplies and consumer staples, and e-commerce activities. The company’s focus on investment in capacity expansion to meet the strong demand for automated equipment and sustainable packaging will drive growth as well. The company currently has a Zacks Rank #3 (Hold) and a VGM Score of A. Our research shows that stocks with a VGM Score of A or B, when combined with a Zacks Rank #1 (Strong Buy), 2 (Buy), or 3, offer the best investment opportunities. You can see the complete list of today’s Zacks #1 Rank stocks here. Let's discuss the factors that make the Sealed Air stock worth holding on to. Sealed Air’s shares have gained 11.2% in the past year against the industry’s decline of 5.1%. Image Source: Zacks Investment Research Better-Than-Expected Q1 Sealed Air’s first-quarter 2022 adjusted earnings per share improved 43.6% year over year to $1.12, driven by favorable price/cost spread and productivity improvements. The bottom line beat the Zacks Consensus Estimate of 92 cents. Total revenues were up 12% year over year to $1.42 million, outpacing the Zacks Consensus Estimate of $1.39 billion. Upbeat Outlook for 2022 Following the outperformance in Q1, Sealed Air raised net sales guidance in the range of $5.85 billion to $6.05 billion, which suggests an improvement of 6-9% year over year. Organic growth is expected between 9% and 12%. SEE anticipates adjusted EBITDA between $1.22 billion and $1.25 billion, which is expected to rise in the range of 6% to 10% from the last-year figure. Adjusted earnings per share is now forecast in the band of $4.05 to $4.20. The mid-point of the new guidance indicates year-over-year earnings growth of 16%. Volume growth, pricing, and productivity gains from the SEE operating engine are expected to mitigate inflationary costs and supply chain headwinds in 2022. Sealed Air projects free cash flow to be $510-$550 million for the ongoing year. Solid Growth Projections The Zacks Consensus Estimate for earnings for 2022 is currently pegged at $4.15, which suggests year-over-year growth of around 17%. The estimate has been revised upward by 1% in the past 30 days. Cheap Valuation Sealed Air’s trailing 12-month EV/EBITDA ratio is 12.6, while the industry's average trailing 12-month EV/EBITDA is 26.7. The stock is cheaper at this point based on the ratio. Return on Assets (ROA) Sealed Air currently has a ROA of 9.6%, while the industry recorded a ROA of 6.9%. An above-average ROA denotes that the company is generating earnings by effectively managing assets. Other Growth Drivers Strong demand for automated equipment and sustainable packaging solutions continues to drive Sealed Air’s food and protected packaging segments’ growth. In food, the retail channel and protein exports are expected to be solid. Its protein automation pipeline continues to grow across all regions, with major food producers committing to its SEE Touchless Automation future. The company has been witnessing year-over-year higher foodservice demand owing to the reopening of restaurants and other public venues. Backed by this, its fluid solutions portfolio, comprising Cryovac Barrier Bags and pouches for condiments, soups and sauces, has been seeing growth. In the protective segment, continued growth in e-commerce and fulfillment and higher demand in the industrial end markets are likely to drive performance. E-commerce sales, which contribute around 11% to the company’s total sales, have been on the rise amid the stay-at-home scenario. Given the surging demand for recyclable materials, fiber-based solutions and automated packaging, Sealed Air’s focus on automation, digital and sustainability is likely to boost market-beating growth. SEE recently launched its new Digital Packaging Solutions brand prismiq to create game-changing value for customers powered by its breakthrough digital printing technology. Sealed Air’s pipeline for automated equipment continues to improve, and it has set a target of more than $500 million by 2025. It has been investing in capacity expansion to meet the strong demand for equipment solutions. These investments, along with the company’s acquisitions of Automated Packaging Systems, AFP, Inc and Fagerdala, will stoke growth. Sealed Air’s Reinvent SEE Strategy, which was implemented in 2018, is focused on innovations, SG&A productivity, product-cost efficiency, channel optimization and customer-service enhancements. It led to around $64 million of benefits in 2021. The capabilities, operational disciplines, and governance processes established through the program are now embedded in the company’s ongoing productivity improvement system — SEE Operating Engine. It is aiding SEE in delivering sales growth and productivity gains, which are helping to mitigate the supply-chain-related challenges. In 2022, the company expects around $20 million of benefits from Reinvent SEE program and around $40 million in benefits from the SEE Operating Engine. This will continue to bolster the bottom-line performance. Stocks to Consider Some better-ranked stocks in the Industrial Products sector are Packaging Corporation of America PKG, Graphic Packaging Holding Company GPK and Alcoa AA. While PKG and GPK flaunt a Zacks Rank #1, AA carries a Zacks Rank #2. Alcoa has a projected earnings growth rate of 107% for the current year. The Zacks Consensus Estimate for 2022 earnings has moved north by 76% in the past 60 days. Alcoa delivered a trailing four-quarter earnings surprise of 17.4%, on average. Alcoa’s shares have gained 43% in the past year. Packaging Corporation has an expected earnings growth rate of 16.2% for 2022. The Zacks Consensus Estimate for the current year’s earnings has moved up 4.2% in the past 60 days. PKG has a trailing four-quarter earnings surprise of 19.6%, on average. Packaging Corporation’s shares have appreciated 5% in the past year. Graphic Packaging has an estimated earnings growth rate of 86.8% for the current year. In the past 60 days, the Zacks Consensus Estimate for current-year earnings has been revised upward by 7.6%. Graphic Packaging pulled off a trailing four-quarter earnings surprise of 7.2%, on average. The company’s shares have appreciated 11% in a year. Just Released: Zacks Top 10 Stocks for 2022 In addition to the investment ideas discussed above, would you like to know about our 10 top buy-and-hold tickers for the entirety of 2022? Last year's 2021 Zacks Top 10 Stocks portfolio returned gains as high as +147.7%. Now a brand-new portfolio has been handpicked from over 4,000 companies covered by the Zacks Rank. Don’t miss your chance to get in on these long-term buys Access Zacks Top 10 Stocks for 2022 today >> Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report Alcoa (AA): Free Stock Analysis Report Sealed Air Corporation (SEE): Free Stock Analysis Report Packaging Corporation of America (PKG): Free Stock Analysis Report Graphic Packaging Holding Company (GPK): Free Stock Analysis Report To read this article on Zacks.com click here. Zacks Investment Research The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
2022-05-12 00:00:00+00:00	AA	Ex-Dividend Reminder: IDEX, Shyft Group and Alcoa	Looking at the universe of stocks we cover at Dividend Channel, on 5/16/22, IDEX Corporation (Symbol: IEX), Shyft Group Inc (Symbol: SHYF), and Alcoa Corporation (Symbol: AA) will all trade ex-dividend for their respective upcoming dividends. IDEX Corporation will pay its quarterly dividend of $0.60 on 5/27/22, Shyft Group Inc will pay its quarterly dividend of $0.05 on 6/17/22, and Alcoa Corporation will pay its quarterly dividend of $0.10 on 6/3/22. As a percentage of IEX's recent stock price of $183.48, this dividend works out to approximately 0.33%, so look for shares of IDEX Corporation to trade 0.33% lower — all else being equal — when IEX shares open for trading on 5/16/22. Similarly, investors should look for SHYF to open 0.23% lower in price and for AA to open 0.18% lower, all else being equal. Below are dividend history charts for IEX, SHYF, and AA, showing historical dividends prior to the most recent ones declared. IDEX Corporation (Symbol: IEX): Shyft Group Inc (Symbol: SHYF): Alcoa Corporation (Symbol: AA): In general, dividends are not always predictable, following the ups and downs of company profits over time. Therefore, a good first due diligence step in forming an expectation of annual yield going forward, is looking at the history above, for a sense of stability over time. This can help in judging whether the most recent dividends from these companies are likely to continue. If they do continue, the current estimated yields on annualized basis would be 1.31% for IDEX Corporation, 0.93% for Shyft Group Inc, and 0.74% for Alcoa Corporation. In Thursday trading, IDEX Corporation shares are currently up about 0.5%, Shyft Group Inc shares are off about 1.2%, and Alcoa Corporation shares are off about 4% on the day. Click here to learn which 25 S.A.F.E. dividend stocks should be on your radar screen » The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
2022-05-11 00:00:00+00:00	AA	Should Value Investors Buy Alcoa (AA) Stock?	Here at Zacks, we focus on our proven ranking system, which places an emphasis on earnings estimates and estimate revisions, to find winning stocks. But we also understand that investors develop their own strategies, so we are constantly looking at the latest trends in value, growth, and momentum to find strong companies for our readers. Of these, value investing is easily one of the most popular ways to find great stocks in any market environment. Value investors use fundamental analysis and traditional valuation metrics to find stocks that they believe are being undervalued by the market at large. Luckily, Zacks has developed its own Style Scores system in an effort to find stocks with specific traits. Value investors will be interested in the system's "Value" category. Stocks with both "A" grades in the Value category and high Zacks Ranks are among the strongest value stocks on the market right now. One stock to keep an eye on is Alcoa (AA). AA is currently sporting a Zacks Rank of #2 (Buy) and an A for Value. The stock holds a P/E ratio of 4.34, while its industry has an average P/E of 6.21. Over the past year, AA's Forward P/E has been as high as 11.74 and as low as 4.34, with a median of 8.36. We also note that AA holds a PEG ratio of 0.50. This popular metric is similar to the widely-known P/E ratio, with the difference being that the PEG ratio also takes into account the company's expected earnings growth rate. AA's PEG compares to its industry's average PEG of 0.71. AA's PEG has been as high as 0.92 and as low as 0.19, with a median of 0.85, all within the past year. Another notable valuation metric for AA is its P/B ratio of 1.60. Investors use the P/B ratio to look at a stock's market value versus its book value, which is defined as total assets minus total liabilities. This stock's P/B looks attractive against its industry's average P/B of 2.09. Within the past 52 weeks, AA's P/B has been as high as 2.83 and as low as 1.09, with a median of 1.67. Finally, we should also recognize that AA has a P/CF ratio of 7.49. This figure highlights a company's operating cash flow and can be used to find firms that are undervalued when considering their impressive cash outlook. AA's current P/CF looks attractive when compared to its industry's average P/CF of 8.27. Within the past 12 months, AA's P/CF has been as high as 16.15 and as low as 5.44, with a median of 8.77. If you're looking for another solid Metal Products - Distribution value stock, take a look at Mitsui & Co. (MITSY). MITSY is a # 1 (Strong Buy) stock with a Value score of A. Shares of Mitsui & Co. currently holds a Forward P/E ratio of 5.68, and its PEG ratio is 0.27. In comparison, its industry sports average P/E and PEG ratios of 6.21 and 0.71. Over the last 12 months, MITSY's P/E has been as high as 9.39, as low as 5.03, with a median of 6.54, and its PEG ratio has been as high as 0.96, as low as 0.17, with a median of 0.28. Mitsui & Co. also has a P/B ratio of 0.89 compared to its industry's price-to-book ratio of 2.09. Over the past year, its P/B ratio has been as high as 0.99, as low as 0.76, with a median of 0.84. These figures are just a handful of the metrics value investors tend to look at, but they help show that Alcoa and Mitsui & Co. are likely being undervalued right now. Considering this, as well as the strength of its earnings outlook, AA and MITSY feels like a great value stock at the moment. Special Report: The Top 5 IPOs for Your Portfolio Today, you have a chance to get in on the ground floor of one of the best investment opportunities of the year. As the world continues to benefit from an ever-evolving internet, a handful of innovative tech companies are on the brink of reaping immense rewards - and you can put yourself in a position to cash in. One is set to disrupt the online communication industry. Brilliantly designed for creating online communities, this stock is poised to explode when made public. With the strength of our economy and record amounts of cash flooding into IPOs, you don’t want to miss this opportunity. >>See Zacks’ Hottest IPOs Now Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report Alcoa (AA): Free Stock Analysis Report Mitsui & Co. (MITSY): Free Stock Analysis Report To read this article on Zacks.com click here. Zacks Investment Research The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
2022-05-11 00:00:00+00:00	AA	7 of the Most Undervalued Mid-Cap Stocks to Buy Now	InvestorPlace - Stock Market News, Stock Advice & Trading Tips From home building to precious metals, here are seven undervalued mid-cap stocks that investors can buy now. Owens Corning (OC): The company is weathering inflation and growing its margins and free cash flow. Kinross Gold (KGC): Addition by subtraction suggests this mining stock is ready to move higher. Alcoa (AA): Higher aluminum prices in the short-term make this stock a buy-the-dip opportunity. Genworth Financial (GNW): The aging of America is likely to drive the stock price higher. Academy Sports and Outdoors (ASO): Never underestimate the power of free cash flow, and this company has plenty of it. Fortune Brands Home & Security (FBHS): Even if home building slows, the company’s products will remain in demand. KB Home (KBH): The company’s business model gives it an advantage if demand for housing picks up. Source: iQoncept / Shutterstock.com This is a time when many investors are playing defense. But I’d like to suggest you consider another factor: diversification. There’s never a bad time for investors to have a diversified portfolio, but it’s even more important in times when the market is being repriced. However, real diversification means not just diversity of asset classes, but diversity within asset classes. So while blue-chip, large-cap stocks are always good choices, now may be a time to invest in undervalued mid-cap stocks. These are stocks with a market cap between $2 billion and $10 billion. Many mid-cap stocks are still in the expansion phase. This means that some of them may become large-cap stocks at some point. However, many fall into the category of cyclical stocks. That brings me back to defensive plays. Just like any other category, it’s important to look for mid-cap stocks that are in sectors of the market that are likely to benefit from stable, or increasing, consumer demand. Here are seven undervalued mid-cap stocks that meet that criteria. OC Owens Corning $90.72 KGC Kinross Gold $4.51 AA Alcoa $54.44 GNW Genworth Financial $3.77 ASO Academy Sports and Outdoors $35.51 FBHS Fortune Brands Home & Security $69.17 KBH KB Home $32.65 Owens Corning (OC) Source: ARMMY PICCA/ShutterStock.com The first of our undervalued mid-cap stocks is Owens Corning (NYSE:OC). From a purely fundamental perspective, OC stock sports a price-to-earnings (P/E) ratio of 9x, which is considerably less than the sector average of more than 15x. Owens Corning does significant business in the remodeling and new construction markets. And currently, housing starts are showing signs of leveling off. The company also does significant business in the non-residential construction market, which is looking to be slightly weaker this year. Furthermore, inflation is affecting the company’s input costs. With all that said, Owens Corning still generated operating margins of 18%, which were over 300 basis points higher than in the same quarter in the prior year. Owens Corning reported earnings in late April and had a double beat on earnings and revenue. More importantly, both numbers were higher on a year-over-year (YOY) basis. Management expected that trend to continue in the second quarter. A deeper dive into the numbers revealed healthy free cash flow generation of $51 million. The company also returned $264 million of free cash flow to shareholders through dividends and share repurchases. Kinross Gold (KGC) Source: Shutterstock The story for Kinross Gold (NYSE:KGC) has been the impact of Russia’s invasion of Ukraine. The company addressed that situation by selling off its assets in Russia, then divested itself of its Chirano mine in Ghana. The two transactions will bring in just over $900 million. Of course, investors are right to wonder how this will affect the company’s overall production. After all, one of the concerns about KGC stock is not its valuation (it has a forward P/E ratio of 10.3x), but its growth outlook. Analysts were already forecasting lower production in the years to come. 7 Defensive Dividend Healthcare Stocks to Buy Now However, I share the opinion of Faisal Humayun, who argues selling these assets will allow Kinross to be more aggressive in generating revenue from its existing core assets. Investors can review its earnings released May 10 to get an idea of what the company believes. Alcoa (AA) Source: shutterstock.com/SimoneN Next on our list of undervalued mid-cap stocks is Alcoa (NYSE:AA). Like many stocks in this current market sell-off, AA stock is down significantly in the last month. In that time, the company reporting record earnings, but a slight miss on revenue. In an environment such as the one we’re in, that’s all it takes to send a stock lower. But for opportunistic investors, this may represent a chance to get in on AA stock at a bargain price. Aluminum prices remain at historically high levels, and Alcoa is likely to benefit from the current supply-demand imbalance from the Russian invasion of Ukraine. If that is indeed the case, expect earnings and revenue to move considerably higher. That seems to be the opinion of analysts, who give the stock a mean price target of $91.42, which is a 61% increase from the price as of May 10. Genworth Financial (GNW) Source: JHVEPhoto / Shutterstock.com Genworth Financial (NYSE:GNW) makes this list of undervalued mid-cap stocks because of its focus on long-term care insurance (LTC). Simply put, America is aging at an accelerating rate, and many people are taking proactive measures to address the potential challenges that come with this. This is showing up in the company’s performance. In its most recent earnings report, Genworth announced a $350 million share repurchase authorization, the company’s first such program in 13 years. It also reported revenue of $149 million and earnings of 25 cents per share. Genworth continues to retire its debt which helps a debt-to-equity ratio which is already among the lowest in its sector. Although there are some concerns about future growth, particularly earnings growth, the company is very undervalued with a P/E ratio of just 2.4x. 7 Dividend-Paying Large-Cap Stocks to Buy in May Investors should be advised that Genworth also has exposure to the mortgage insurance sector. This side of the business may not be as strong as interest rates increase in 2022. Academy Sports and Outdoors (ASO) Source: Shutterstock Texas-based Academy Sports and Outdoors (NASDAQ:ASO) is becoming one of the nation’s largest sporting goods and outdoor entertainment retailers. This was a sector that thrived during the pandemic as individuals looked to bring the gym experience into their homes. In 2021, ASO stock and others like it continued to thrive as youth sports reopened. But in November, ASO stock got caught up in the market selloff and is down nearly 30% from its 52-week high. However, the company reported strong fourth-quarter earnings and revenue and has an impressive free cash flow. All of this supports other fundamental metrics that suggest ASO stock is certainly one of the undervalued mid-cap stocks to consider. Fortune Brands Home & Security (FBHS) Source: Shutterstock Home buying may be cyclical, but home improvement is an evergreen sector. And with brands like Moen and MasterLock, Fortune Brands Home & Security (NYSE:FBHS) merits a place on this list of undervalued mid-cap stocks. Analysts give the stock a consensus price target of $100.79, which is about 44% upside from its current level. In the company’s first-quarter earnings report, its revenue came in at $1.9 billion, which was higher than the $1.8 billion the company reported in the same quarter in 2021. However earnings were slightly lower. That’s perhaps the reason analysts are cooling on the FBHS stock price. 7 Restaurant Stocks Ready for a 'Revenge Travel' Rally The key thing to know is the consensus price target stays high even though several analysts have lowered their price targets. It’s always a good sign when price targets are going down, but remain above the consensus estimate. KB Home (KBH) Source: Sundry Photography / Shutterstock.com Several of the stocks on this list have been a play on growth in the home building sector, and perhaps none as directly as KB Home (NYSE:KBH). If you’re hesitant to jump on a home building stock, that’s understandable. The bears don’t have to do anything more than point to rising interest rates to suggest the housing market may be rolling over. However, at the very least, this is one for your watchlist. KBH stock is undervalued by many fundamental metrics. The company has a build-to-order business model that allows broader customization for home buyers. You could further theorize that buyers of custom homes may be less sensitive to rising mortgage rates. Additionally, homebuilder stocks may have found a level of support. Federal Reserve chairman Jerome Powell is saying the Fed is not considering rate increases of more than 50 basis points at this time. On Penny Stocks and Low-Volume Stocks: With only the rarest exceptions, InvestorPlace does not publish commentary about companies that have a market cap of less than $100 million or trade less than 100,000 shares each day. That’s because these “penny stocks” are frequently the playground for scam artists and market manipulators. If we ever do publish commentary on a low-volume stock that may be affected by our commentary, we demand that InvestorPlace.com’s writers disclose this fact and warn readers of the risks. Read More: Penny Stocks — How to Profit Without Getting Scammed On the date of publication, Chris Markoch did not have (either directly or indirectly) any positions in the securities mentioned in this article. The opinions expressed in this article are those of the writer, subject to the InvestorPlace.com Publishing Guidelines. The post 7 of the Most Undervalued Mid-Cap Stocks to Buy Now appeared first on InvestorPlace. The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
2022-05-10 00:00:00+00:00	AA	Should iShares Core S&P MidCap ETF (IJH) Be on Your Investing Radar?	Launched on 05/22/2000, the iShares Core S&P MidCap ETF (IJH) is a passively managed exchange traded fund designed to provide a broad exposure to the Mid Cap Blend segment of the US equity market. The fund is sponsored by Blackrock. It has amassed assets over $58.70 billion, making it the largest ETFs attempting to match the Mid Cap Blend segment of the US equity market. Why Mid Cap Blend Mid cap companies, with market capitalization in the range of $2 billion and $10 billion, offer investors many things that small and large companies don't, including less risk and higher growth opportunities. Thus they have a nice balance of growth potential and stability. Typically holding a combination of both growth and value stocks, blend ETFs also demonstrate qualities seen in value and growth investments. Costs Expense ratios are an important factor in the return of an ETF and in the long term, cheaper funds can significantly outperform their more expensive counterparts, other things remaining the same. Annual operating expenses for this ETF are 0.05%, making it one of the least expensive products in the space. It has a 12-month trailing dividend yield of 1.48%. Sector Exposure and Top Holdings It is important to delve into an ETF's holdings before investing despite the many upsides to these kinds of funds like diversified exposure, which minimizes single stock risk. And, most ETFs are very transparent products that disclose their holdings on a daily basis. This ETF has heaviest allocation to the Industrials sector--about 18.20% of the portfolio. Financials and Consumer Discretionary round out the top three. Looking at individual holdings, Molina Healthcare Inc (MOH) accounts for about 0.80% of total assets, followed by Camden Property Trust Reit (CPT) and Alcoa Corp (AA). The top 10 holdings account for about 6.08% of total assets under management. Performance and Risk IJH seeks to match the performance of the S&P MidCap 400 Index before fees and expenses. The S&P MidCap 400 Index measures the performance of the mid-capitalization sector of the U.S. equity market. The ETF has lost about -15.54% so far this year and is down about -12.25% in the last one year (as of 05/10/2022). In the past 52-week period, it has traded between $238.99 and $290.54. The ETF has a beta of 1.12 and standard deviation of 28.16% for the trailing three-year period, making it a medium risk choice in the space. With about 410 holdings, it effectively diversifies company-specific risk. Alternatives IShares Core S&P MidCap ETF carries a Zacks ETF Rank of 3 (Hold), which is based on expected asset class return, expense ratio, and momentum, among other factors. Thus, IJH is a sufficient option for those seeking exposure to the Style Box - Mid Cap Blend area of the market. Investors might also want to consider some other ETF options in the space. The iShares Russell MidCap ETF (IWR) and the Vanguard MidCap ETF (VO) track a similar index. While iShares Russell MidCap ETF has $26.87 billion in assets, Vanguard MidCap ETF has $47.68 billion. IWR has an expense ratio of 0.19% and VO charges 0.04%. Bottom-Line Passively managed ETFs are becoming increasingly popular with institutional as well as retail investors due to their low cost, transparency, flexibility and tax efficiency. They are excellent vehicles for long term investors. To learn more about this product and other ETFs, screen for products that match your investment objectives and read articles on latest developments in the ETF investing universe, please visit Zacks ETF Center. Want key ETF info delivered straight to your inbox? Zacks’ free Fund Newsletter will brief you on top news and analysis, as well as top-performing ETFs, each week. Get it free >> Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report iShares Core S&P MidCap ETF (IJH): ETF Research Reports Alcoa (AA): Free Stock Analysis Report Molina Healthcare, Inc (MOH): Free Stock Analysis Report Camden Property Trust (CPT): Free Stock Analysis Report Vanguard MidCap ETF (VO): ETF Research Reports iShares Russell MidCap ETF (IWR): ETF Research Reports To read this article on Zacks.com click here. The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
2022-05-10 00:00:00+00:00	AA	Best Growth Stocks to Buy for May 10th	Here are three stocks with buy ranks and strong growth characteristics for investors to consider today, May 10th: AMN Healthcare Services, Inc. AMN: This healthcare workforce solutions and staffing services company carries a Zacks Rank #1 (Strong Buy), and has witnessed the Zacks Consensus Estimate for its current year earnings increasing 0.7% over the last 60 days. AMN Healthcare Services Inc Price and Consensus AMN Healthcare Services Inc price-consensus-chart \| AMN Healthcare Services Inc Quote AMN has a PEG ratio of 0.61 compared with 2.00 for the industry. The company possesses a Growth Score of B. AMN Healthcare Services Inc PEG Ratio (TTM) AMN Healthcare Services Inc peg-ratio-ttm \| AMN Healthcare Services Inc Quote The GEO Group, Inc. GEO: This company that owns, leases, and manages secure facilities, processing centers, and reentry centers carries a Zacks Rank #1, and has witnessed the Zacks Consensus Estimate for its current year earnings increasing 10.9% over the last 60 days. Geo Group Inc The Price and Consensus Geo Group Inc The price-consensus-chart \| Geo Group Inc The Quote GEO has a PEG ratio of 0.31 compared with 1.04 for the industry. The company possesses a Growth Score of B. Geo Group Inc The PEG Ratio (TTM) Geo Group Inc The peg-ratio-ttm \| Geo Group Inc The Quote Alcoa Corporation AA: This company that produces and sells bauxite, alumina, and aluminum products carries a Zacks Rank #1, and has witnessed the Zacks Consensus Estimate for its current year earnings increasing 41% over the last 60 days. Alcoa Price and Consensus Alcoa price-consensus-chart \| Alcoa Quote Alcoa has a PEG ratio of 0.53 compared with 0.64 for the industry. The company possesses a Growth Score of B. Alcoa PEG Ratio (TTM) Alcoa peg-ratio-ttm \| Alcoa Quote See the full list of top ranked stocks here. Learn more about the Growth score and how it is calculated here. Bitcoin, Like the Internet Itself, Could Change Everything Blockchain and cryptocurrency has sparked one of the most exciting discussion topics of a generation. Some call it the “Internet of Money” and predict it could change the way money works forever. If true, it could do to banks what Netflix did to Blockbuster and Amazon did to Sears. Experts agree we’re still in the early stages of this technology, and as it grows, it will create several investing opportunities. Zacks’ has just revealed 3 companies that can help investors capitalize on the explosive profit potential of Bitcoin and the other cryptocurrencies with significantly less volatility than buying them directly. See 3 crypto-related stocks now >> Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report Alcoa (AA): Free Stock Analysis Report AMN Healthcare Services Inc (AMN): Free Stock Analysis Report Geo Group Inc The (GEO): Free Stock Analysis Report To read this article on Zacks.com click here. Zacks Investment Research The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
2022-05-10 00:00:00+00:00	AA	Validea Peter Lynch Strategy Daily Upgrade Report - 5/10/2022	The following are today's upgrades for Validea's P/E/Growth Investor model based on the published strategy of Peter Lynch. This strategy looks for stocks trading at a reasonable price relative to earnings growth that also possess strong balance sheets. ASML HOLDING NV (ADR) (ASML) is a large-cap growth stock in the Misc. Capital Goods industry. The rating according to our strategy based on Peter Lynch changed from 69% to 87% based on the firm’s underlying fundamentals and the stock’s valuation. A score of 80% or above typically indicates that the strategy has some interest in the stock and a score above 90% typically indicates strong interest. Company Description: ASML Holding N.V. is a holding company based in the Netherlands. The Company operates through its subsidiaries in the Netherlands, the United States, Italy, France, Germany, the United Kingdom, Ireland, Belgium, South Korea, Taiwan, Singapore, China, Hong Kong, Japan, Malaysia and Israel. The Company operates through one business segment which is engage in development, production, marketing, sales, upgrading and servicing of advanced semiconductor equipment systems, consisting of lithography, metrology and inspection systems. The Company offers TWINSCAN systems, equipped with lithography system with a mercury lamp as light source (i-line), Krypton Fluoride (KrF) and Argon Fluoride (ArF) light sources for processing wafers for manufacturing environments for which imaging at a small resolution is required. TWINSCAN systems also include immersion lithography systems (TWINSCAN immersion systems). The following table summarizes whether the stock meets each of this strategy's tests. Not all criteria in the below table receive equal weighting or are independent, but the table provides a brief overview of the strong and weak points of the security in the context of the strategy's criteria. P/E/GROWTH RATIO: PASS SALES AND P/E RATIO: PASS INVENTORY TO SALES: PASS EPS GROWTH RATE: PASS TOTAL DEBT/EQUITY RATIO: PASS FREE CASH FLOW: NEUTRAL NET CASH POSITION: NEUTRAL Detailed Analysis of ASML HOLDING NV (ADR) Full Guru Analysis for ASML Full Factor Report for ASML PAGSEGURO DIGITAL LTD (PAGS) is a mid-cap growth stock in the Consumer Financial Services industry. The rating according to our strategy based on Peter Lynch changed from 74% to 91% based on the firm’s underlying fundamentals and the stock’s valuation. A score of 80% or above typically indicates that the strategy has some interest in the stock and a score above 90% typically indicates strong interest. Company Description: PagSeguro Digital Ltd is a provider of financial technology solution company. The Company is focused primarily on micro-merchants, small companies and medium-sized companies in Brazil. The Company offers multiple digital payment solutions, In-person payments via POS devices that we sell to clients, free digital accounts, and withdrawing account balances. Its end-to-end digital ecosystem enables its customers accept payments and manage their businesses. It offers safe, affordable, simple, mobile-first solutions for merchants to accept payments and manage their cash through their PagSeguro digital accounts, without the need for a bank account. Its digital account offers more than 30 cash-in methods and six cash-out options including its PagSeguro prepaid card, all using proprietary technology platform and backed by the trusted PagSeguro and UOL brands. Its digital ecosystem also features other digital financial services, business management tools and functionalities for its clients. The following table summarizes whether the stock meets each of this strategy's tests. Not all criteria in the below table receive equal weighting or are independent, but the table provides a brief overview of the strong and weak points of the security in the context of the strategy's criteria. P/E/GROWTH RATIO: PASS SALES AND P/E RATIO: PASS EPS GROWTH RATE: PASS TOTAL DEBT/EQUITY RATIO: NEUTRAL EQUITY/ASSETS RATIO: PASS RETURN ON ASSETS: PASS FREE CASH FLOW: NEUTRAL NET CASH POSITION: NEUTRAL Detailed Analysis of PAGSEGURO DIGITAL LTD Full Guru Analysis for PAGS Full Factor Report for PAGS EQUINOR ASA (ADR) (EQNR) is a large-cap value stock in the Oil & Gas - Integrated industry. The rating according to our strategy based on Peter Lynch changed from 74% to 93% based on the firm’s underlying fundamentals and the stock’s valuation. A score of 80% or above typically indicates that the strategy has some interest in the stock and a score above 90% typically indicates strong interest. Company Description: Equinor ASA, formerly Statoil ASA, is a Norway-based energy company engaged in oil and gas exploration and production activities. The Company's segments include Development and Production Norway (DPN), Development and Production International (DPI), Marketing, Midstream and Processing (MMP) and Other. DPN segment manages the Company's upstream activities on the Norwegian continental shelf (NCS) and explores for and extracts crude oil, natural gas and natural gas liquids. DPI segment manages the Company's upstream activities that are not included in the DPN and Development and Production USA (DPUSA) business areas. MMP segment manages its marketing and trading activities related to oil products and natural gas, transportation, processing and manufacturing, and the development of oil and gas. Other segment includes activities in New Energy Solutions (NES), Technology, Projects and Drilling (TPD), Global Strategy and Business Development (GSB), and Corporate staffs and support functions. The following table summarizes whether the stock meets each of this strategy's tests. Not all criteria in the below table receive equal weighting or are independent, but the table provides a brief overview of the strong and weak points of the security in the context of the strategy's criteria. P/E/GROWTH RATIO: PASS SALES AND P/E RATIO: PASS INVENTORY TO SALES: PASS EPS GROWTH RATE: PASS TOTAL DEBT/EQUITY RATIO: PASS FREE CASH FLOW: NEUTRAL NET CASH POSITION: NEUTRAL Detailed Analysis of EQUINOR ASA (ADR) Full Guru Analysis for EQNR Full Factor Report for EQNR KOHL'S CORPORATION (KSS) is a mid-cap value stock in the Retail (Department & Discount) industry. The rating according to our strategy based on Peter Lynch changed from 72% to 74% based on the firm’s underlying fundamentals and the stock’s valuation. A score of 80% or above typically indicates that the strategy has some interest in the stock and a score above 90% typically indicates strong interest. Company Description: Kohl's Corporation (Kohl's) is an operator of department stores. The Company operates approximately 1,165 stores, and a Website www.Kohls.com. Its Kohl's stores and Website sell private and national brand apparel, footwear, accessories, beauty, and home products. Its Kohl's stores carry a merchandise assortment with differences attributable to local preferences, store size, and Sephora. The Company's Website includes merchandise, which is available in its stores, as well as merchandise which is available only online. Its merchandise mix includes both national brands and private brands that are available at Kohl's. Its private portfolio includes various brands, such as Apt. 9, Croft & Barrow, Jumping Beans, SO, and Sonoma Goods for Life, and brands that are developed and marketed through agreements with national brands, such as Food Network, LC Lauren Conrad, Nine West, and Simply Vera Vera Wang. The following table summarizes whether the stock meets each of this strategy's tests. Not all criteria in the below table receive equal weighting or are independent, but the table provides a brief overview of the strong and weak points of the security in the context of the strategy's criteria. YIELD ADJUSTED P/E TO GROWTH (PEG) RATIO: PASS EARNINGS PER SHARE: PASS TOTAL DEBT/EQUITY RATIO: FAIL FREE CASH FLOW: NEUTRAL NET CASH POSITION: NEUTRAL Detailed Analysis of KOHL'S CORPORATION Full Guru Analysis for KSS Full Factor Report for KSS MICROSOFT CORPORATION (MSFT) is a large-cap growth stock in the Software & Programming industry. The rating according to our strategy based on Peter Lynch changed from 87% to 91% based on the firm’s underlying fundamentals and the stock’s valuation. A score of 80% or above typically indicates that the strategy has some interest in the stock and a score above 90% typically indicates strong interest. Company Description: Microsoft Corporation is a technology company. The Company develops and supports a range of software products, services, devices, and solutions. The Company's segments include Productivity and Business Processes, Intelligent Cloud, and More Personal Computing. The Company's products include operating systems; cross-device productivity applications; server applications; business solution applications; desktop and server management tools; software development tools; and video games. It also designs, manufactures, and sells devices, including personal computers (PCs), tablets, gaming and entertainment consoles, other intelligent devices, and related accessories. It offers an array of services, including cloud-based solutions that provide customers with software, services, platforms, and content, and it provides solution support and consulting services. It markets and distributes its products and services through original equipment manufacturers, direct, and distributors and resellers. The following table summarizes whether the stock meets each of this strategy's tests. Not all criteria in the below table receive equal weighting or are independent, but the table provides a brief overview of the strong and weak points of the security in the context of the strategy's criteria. P/E/GROWTH RATIO: PASS SALES AND P/E RATIO: PASS INVENTORY TO SALES: PASS EPS GROWTH RATE: PASS TOTAL DEBT/EQUITY RATIO: PASS FREE CASH FLOW: NEUTRAL NET CASH POSITION: NEUTRAL Detailed Analysis of MICROSOFT CORPORATION Full Guru Analysis for MSFT Full Factor Report for MSFT BECTON DICKINSON AND CO (BDX) is a large-cap growth stock in the Medical Equipment & Supplies industry. The rating according to our strategy based on Peter Lynch changed from 69% to 87% based on the firm’s underlying fundamentals and the stock’s valuation. A score of 80% or above typically indicates that the strategy has some interest in the stock and a score above 90% typically indicates strong interest. Company Description: Becton, Dickinson and Company (BD) is a global medical technology company engaged in the development, manufacture and sale of a range of medical supplies, devices, laboratory equipment and diagnostic products. The Company operates through three business segments: BD Medical, BD Life Sciences and BD Interventional. The BD Medical segment produces an array of medical technologies and devices that are used to help improve healthcare delivery in a range of settings. BD Medical consists of various business units, including medication delivery solutions, medication management solutions, diabetes care and pharmaceutical systems. The BD Life Sciences segment provides products for the safe collection and transport of diagnostics specimens, and instruments and reagent systems to detect a range of infectious diseases, healthcare-associated infections and cancers. The BD Interventional segment provides vascular, urology, oncology and surgical specialty products. The following table summarizes whether the stock meets each of this strategy's tests. Not all criteria in the below table receive equal weighting or are independent, but the table provides a brief overview of the strong and weak points of the security in the context of the strategy's criteria. P/E/GROWTH RATIO: PASS SALES AND P/E RATIO: PASS INVENTORY TO SALES: PASS EPS GROWTH RATE: PASS TOTAL DEBT/EQUITY RATIO: PASS FREE CASH FLOW: NEUTRAL NET CASH POSITION: NEUTRAL Detailed Analysis of BECTON DICKINSON AND CO Full Guru Analysis for BDX Full Factor Report for BDX CIRRUS LOGIC, INC. (CRUS) is a mid-cap value stock in the Semiconductors industry. The rating according to our strategy based on Peter Lynch changed from 0% to 91% based on the firm’s underlying fundamentals and the stock’s valuation. A score of 80% or above typically indicates that the strategy has some interest in the stock and a score above 90% typically indicates strong interest. Company Description: Cirrus Logic, Inc. is engaged in providing low-power and high-precision mixed-signal processing solutions. The Company's products line includes audio products and high-performance mixed-signal products. The audio products include smart codecs, boosted amplifiers, analog to digital converters, digital to analog converters and standalone digital signal processors. The high-performance mixed-signal products include haptic driver and sensing solutions, camera controllers and power-related components. The Company's product technologies include audio amplifiers, audio analog devices (A/D) converters, audio digital/analog converters, audio codecs, audio clock generation and jitter reduction, audio digital signal processing (DSPs), interfaces and sample rate converters, haptic drivers, volume controls, voice processors and other. The Company's application categories include mobile audio devices, smart homes, speakers, wearables and headsets. The following table summarizes whether the stock meets each of this strategy's tests. Not all criteria in the below table receive equal weighting or are independent, but the table provides a brief overview of the strong and weak points of the security in the context of the strategy's criteria. P/E/GROWTH RATIO: PASS SALES AND P/E RATIO: PASS INVENTORY TO SALES: PASS EPS GROWTH RATE: PASS TOTAL DEBT/EQUITY RATIO: PASS FREE CASH FLOW: NEUTRAL NET CASH POSITION: NEUTRAL Detailed Analysis of CIRRUS LOGIC, INC. Full Guru Analysis for CRUS Full Factor Report for CRUS MITSUI & CO LTD (ADR) (MITSY) is a large-cap value stock in the Oil & Gas - Integrated industry. The rating according to our strategy based on Peter Lynch changed from 0% to 74% based on the firm’s underlying fundamentals and the stock’s valuation. A score of 80% or above typically indicates that the strategy has some interest in the stock and a score above 90% typically indicates strong interest. Company Description: Mitsui & Co., Ltd. is a general trading company. The Company operates in seven business segments. The Steel Products segment provides infrastructure steels, auto parts, energy steels and others. The Metal Resources segment provides iron ore, coal, copper, nickel, aluminum, and others. The Machinery and Infrastructure segment provides products and services such as electricity, marine energy, gas distribution, water, logistics and others. The Chemicals segment provides petrochemical raw materials and products, inorganic raw materials and products, agricultural materials. The Energy segment provides oil, natural gas, petroleum products, environment and next-generation energy. The Lifestyle Industry segment provides food, textiles, healthcare and outsourcing services. The Next Generation and Function Promotion segment develops businesses related to asset management, leasing, insurance, buyout investment and others. The following table summarizes whether the stock meets each of this strategy's tests. Not all criteria in the below table receive equal weighting or are independent, but the table provides a brief overview of the strong and weak points of the security in the context of the strategy's criteria. P/E/GROWTH RATIO: PASS SALES AND P/E RATIO: PASS INVENTORY TO SALES: PASS EPS GROWTH RATE: PASS TOTAL DEBT/EQUITY RATIO: FAIL FREE CASH FLOW: NEUTRAL NET CASH POSITION: NEUTRAL Detailed Analysis of MITSUI & CO LTD (ADR) Full Guru Analysis for MITSY Full Factor Report for MITSY TARGET CORPORATION (TGT) is a large-cap growth stock in the Retail (Department & Discount) industry. The rating according to our strategy based on Peter Lynch changed from 72% to 74% based on the firm’s underlying fundamentals and the stock’s valuation. A score of 80% or above typically indicates that the strategy has some interest in the stock and a score above 90% typically indicates strong interest. Company Description: Target Corporation (Target) is a general merchandise retailer selling products through its stores and digital channels. The Company sells an assortment of general merchandise and food. The Company's product category includes apparel and accessories, beauty and household essentials, food and beverage, hardlines, and home furnishing and decor. Its general merchandise stores offer an edited food assortment, including perishables, dry grocery, dairy and frozen items. The Company has stores of approximately 170,000 square feet offer a full line of food items comparable to traditional supermarkets. Its small-format stores have over 50,000 square feet that offer curated general merchandise and food assortments. Its brands include Art Class, Smartly, Auden, JoyLab, Smith & Hawken, Ava & Viv, Kindfull, Sonia Kashuk, Casaluna, Market Pantry, Threshold, Cat & Jack, Mondo Llama, Universal Thread, Cloud Island, More Than Magic, up & up, Colsie, Opalhouse, Wild Fable and Open Story, Wondershop. The following table summarizes whether the stock meets each of this strategy's tests. Not all criteria in the below table receive equal weighting or are independent, but the table provides a brief overview of the strong and weak points of the security in the context of the strategy's criteria. P/E/GROWTH RATIO: PASS SALES AND P/E RATIO: PASS EPS GROWTH RATE: PASS TOTAL DEBT/EQUITY RATIO: FAIL FREE CASH FLOW: NEUTRAL NET CASH POSITION: NEUTRAL Detailed Analysis of TARGET CORPORATION Full Guru Analysis for TGT Full Factor Report for TGT QORVO INC (QRVO) is a large-cap value stock in the Communications Equipment industry. The rating according to our strategy based on Peter Lynch changed from 0% to 74% based on the firm’s underlying fundamentals and the stock’s valuation. A score of 80% or above typically indicates that the strategy has some interest in the stock and a score above 90% typically indicates strong interest. Company Description: Qorvo, Inc. is a provider of technologies and radio frequency (RF) solutions for mobile, defense, and aerospace applications. The Company's segments include Mobile Products (MP) and Infrastructure and Defense Products (IDP). MP is a supplier of cellular, ultra-wideband (UWB), and wireless fidelity (Wi-Fi) solutions for a variety of applications, including smartphones, wearables, laptops, tablets, and the Internet of Things (IoT). IDP is a supplier of radio frequency (RF), system-on-a-chip (SoC), and power management solutions for applications in wireless infrastructure, defense, Wi-Fi, smart home, automotive, and IoT. The MP segment supplies RF solutions to global consumer product companies. The IDP segment supplies a diverse portfolio of products with generally longer life cycles to a range of customers. It operates design, sales, and manufacturing facilities located throughout Asia, Europe, and North America. The following table summarizes whether the stock meets each of this strategy's tests. Not all criteria in the below table receive equal weighting or are independent, but the table provides a brief overview of the strong and weak points of the security in the context of the strategy's criteria. P/E/GROWTH RATIO: PASS SALES AND P/E RATIO: PASS INVENTORY TO SALES: PASS EPS GROWTH RATE: FAIL TOTAL DEBT/EQUITY RATIO: PASS Detailed Analysis of QORVO INC Full Guru Analysis for QRVO Full Factor Report for QRVO QUANTA SERVICES INC (PWR) is a large-cap growth stock in the Construction Services industry. The rating according to our strategy based on Peter Lynch changed from 87% to 91% based on the firm’s underlying fundamentals and the stock’s valuation. A score of 80% or above typically indicates that the strategy has some interest in the stock and a score above 90% typically indicates strong interest. Company Description: Quanta Services, Inc. is a provider of specialty contracting services, delivering infrastructure solutions for the electric and gas utility, communications, pipeline and energy industries in the United States, Canada, Australia and select other international markets. The Electric Power Infrastructure Solutions segment provides network solutions to customers in the electric power and other industries, which include design, procurement, repair and maintenance for electric power transmission. The Renewable Energy Infrastructure Solutions segment provides infrastructure solutions, including engineering, procurement, and repair and maintenance for renewable generation facilities, such as wind, solar, and hydropower generation facilities and battery storage facilities. Underground Utility and Infrastructure Solutions segment provides infrastructure solutions to customers involved in the development, transportation, distribution, storage and processing of natural gas, oil and other products. The following table summarizes whether the stock meets each of this strategy's tests. Not all criteria in the below table receive equal weighting or are independent, but the table provides a brief overview of the strong and weak points of the security in the context of the strategy's criteria. P/E/GROWTH RATIO: PASS SALES AND P/E RATIO: PASS INVENTORY TO SALES: PASS EPS GROWTH RATE: PASS TOTAL DEBT/EQUITY RATIO: PASS FREE CASH FLOW: NEUTRAL NET CASH POSITION: NEUTRAL Detailed Analysis of QUANTA SERVICES INC Full Guru Analysis for PWR Full Factor Report for PWR EDWARDS LIFESCIENCES CORP (EW) is a large-cap growth stock in the Medical Equipment & Supplies industry. The rating according to our strategy based on Peter Lynch changed from 0% to 74% based on the firm’s underlying fundamentals and the stock’s valuation. A score of 80% or above typically indicates that the strategy has some interest in the stock and a score above 90% typically indicates strong interest. Company Description: Edwards Lifesciences Corporation is a manufacturer of heart valve systems and repair products used to replace or repair a patient's diseased or defective heart valve. The Company is engaged in patient-focused innovations for structural heart disease and critical care monitoring. Its segments include United States, Europe, Japan and Rest of World. Its products and technologies are categorized into four main areas: Transcatheter Aortic Valve Replacement, Transcatheter Mitral and Tricuspid Therapies, Surgical Structural Heart and Critical Care. It also develops hemodynamic and noninvasive brain and tissue oxygenation monitoring systems that are used to measure a patient's cardiovascular function in the hospital setting. The Edwards SAPIEN family of valves, including Edwards SAPIEN XT, the Edwards SAPIEN 3, and the Edwards SAPIEN 3 Ultra transcatheter aortic heart valves are used to treat heart valve disease. The following table summarizes whether the stock meets each of this strategy's tests. Not all criteria in the below table receive equal weighting or are independent, but the table provides a brief overview of the strong and weak points of the security in the context of the strategy's criteria. P/E/GROWTH RATIO: FAIL SALES AND P/E RATIO: PASS INVENTORY TO SALES: PASS EPS GROWTH RATE: PASS TOTAL DEBT/EQUITY RATIO: PASS FREE CASH FLOW: NEUTRAL NET CASH POSITION: NEUTRAL Detailed Analysis of EDWARDS LIFESCIENCES CORP Full Guru Analysis for EW Full Factor Report for EW LVMH MOET HENNESSY LOUIS VUITTON SE(ADR) (LVMUY) is a large-cap growth stock in the Apparel/Accessories industry. The rating according to our strategy based on Peter Lynch changed from 87% to 91% based on the firm’s underlying fundamentals and the stock’s valuation. A score of 80% or above typically indicates that the strategy has some interest in the stock and a score above 90% typically indicates strong interest. Company Description: LVMH Moet Hennessy Louis Vuitton SE is a France-based luxury group active in six sectors: Wines and Spirits, Fashion and Leather Goods, Perfumes and Cosmetics, Watches and Jewelry, Selective Retailing and Other Activities. Wines and Spirits owns brands, such as Moet & Chandon, Krug, Veuve Clicquot, Hennessy and Chteau d'Yquem, among others. Fashion and Leather Goods owns brands, such as Luis Vuitton, Christian Dior and Givenchy, among others. Perfumes and Cosmetics owns brands, such as Parfums Christian Dior, Parfums Givenchy Guerlain, Benefit Cosmetics, Fresh and Make Up For Ever, among others. Watches and Jewelry owns brands, including TAG Heuer, Hublo, Zenith, Bulgari, Chaumet and Fred, among others. Selective Retailing owns the brands DFS, Miami Cruiseline, Sephora and Le Bon Marche Rive Gauche, among others. Other Activities includes lifestyle, culture and the arts brands, such as Les Echos, Royal Van Lent, and Cheval Blanc. The Company is active worldwide. The following table summarizes whether the stock meets each of this strategy's tests. Not all criteria in the below table receive equal weighting or are independent, but the table provides a brief overview of the strong and weak points of the security in the context of the strategy's criteria. P/E/GROWTH RATIO: PASS SALES AND P/E RATIO: PASS INVENTORY TO SALES: PASS EPS GROWTH RATE: PASS TOTAL DEBT/EQUITY RATIO: PASS FREE CASH FLOW: NEUTRAL NET CASH POSITION: NEUTRAL Detailed Analysis of LVMH MOET HENNESSY LOUIS VUITTON SE(ADR) Full Guru Analysis for LVMUY Full Factor Report for LVMUY ALCOA CORP (AA) is a mid-cap value stock in the Metal Mining industry. The rating according to our strategy based on Peter Lynch changed from 0% to 91% based on the firm’s underlying fundamentals and the stock’s valuation. A score of 80% or above typically indicates that the strategy has some interest in the stock and a score above 90% typically indicates strong interest. Company Description: Alcoa Corporation is a trading company. The Company is engaged in the production of bauxite, alumina and aluminum products. The Company's operations consist of three reportable business segments: Bauxite, Alumina, and Aluminum. The Bauxite and Alumina segments primarily consist of a series of affiliated operating entities held in Alcoa World Alumina and Chemicals (AWAC), which is a joint venture between Alcoa Corporation and Alumina Limited. The Aluminum segment consists of the Company's aluminum smelting, casting, and rolling businesses, along with the energy production business. Its Bauxite segment consists of the Company's global bauxite mining operations. The Company's Alumina segment consists of the Company's worldwide refining system, which processes bauxite into alumina. The Aluminum segment consists of its worldwide smelting and cast house system, a portfolio of energy assets in Brazil, Canada, and the United States. It has over 28 operating locations across nine countries. The following table summarizes whether the stock meets each of this strategy's tests. Not all criteria in the below table receive equal weighting or are independent, but the table provides a brief overview of the strong and weak points of the security in the context of the strategy's criteria. INVENTORY TO SALES: PASS YIELD ADJUSTED P/E TO GROWTH (PEG) RATIO: PASS EARNINGS PER SHARE: PASS TOTAL DEBT/EQUITY RATIO: PASS FREE CASH FLOW: NEUTRAL NET CASH POSITION: NEUTRAL Detailed Analysis of ALCOA CORP Full Guru Analysis for AA Full Factor Report for AA MGP INGREDIENTS INC (MGPI) is a mid-cap growth stock in the Beverages (Alcoholic) industry. The rating according to our strategy based on Peter Lynch changed from 0% to 91% based on the firm’s underlying fundamentals and the stock’s valuation. A score of 80% or above typically indicates that the strategy has some interest in the stock and a score above 90% typically indicates strong interest. Company Description: MGP Ingredients, Inc. is a producer and supplier of distilled spirits, branded spirits and food ingredients. The Company operates through three segments: Distillery Products, Branded Spirits and Ingredient Solutions. The Distillery Products segment consists of food grade alcohol and distillery co-products, such as distillers feed and fuel grade alcohol. The Distillery Products segment also includes warehouse services, including barrel put away, storage, retrieval, and blending services. The Branded Spirits segment consists of producing, importing, bottling and rectifying of distilled spirits. Its Ingredient Solutions segment consists of specialty starches and proteins and commodity starches and proteins. It is also a producer of industrial alcohol for use in both food and non-food applications. Its distillery products are derived from corn and other grains, including rye, barley, wheat, barley malt, and milo, and its ingredient products are derived from wheat flour. The following table summarizes whether the stock meets each of this strategy's tests. Not all criteria in the below table receive equal weighting or are independent, but the table provides a brief overview of the strong and weak points of the security in the context of the strategy's criteria. P/E/GROWTH RATIO: PASS SALES AND P/E RATIO: NEUTRAL INVENTORY TO SALES: PASS EPS GROWTH RATE: PASS TOTAL DEBT/EQUITY RATIO: PASS FREE CASH FLOW: NEUTRAL NET CASH POSITION: NEUTRAL Detailed Analysis of MGP INGREDIENTS INC Full Guru Analysis for MGPI Full Factor Report for MGPI FIVE BELOW INC (FIVE) is a mid-cap growth stock in the Retail (Department & Discount) industry. The rating according to our strategy based on Peter Lynch changed from 87% to 91% based on the firm’s underlying fundamentals and the stock’s valuation. A score of 80% or above typically indicates that the strategy has some interest in the stock and a score above 90% typically indicates strong interest. Company Description: Five Below, Inc. is a specialty value retailer that offers merchandise targeted at the tween, teen and beyond. The Company's assortment of products includes select brands and licensed merchandise. The Company is engaged in offering a group of products, namely leisure, fashion and home, and party and snack. Leisure includes items, such as sporting goods, games, toys, tech, books, electronic accessories, and arts and crafts. Fashion and home include items, such as personal accessories, t-shirts, beauty offerings, home goods and storage options. Party and snacks include items, such as party and seasonal goods, greeting cards, candy and other snacks, and beverages. It sells merchandise on the Internet, through the Company's e-commerce Website, fivebelow.com. The Company operates approximately 1,190 stores in 40 states. Its distribution centers are located in Pedricktown, New Jersey, Olive Branch, Mississippi, Forsyth, Georgia, Conroe, Texas, Cincinnati, Ohio and Buckeye, Arizona. The following table summarizes whether the stock meets each of this strategy's tests. Not all criteria in the below table receive equal weighting or are independent, but the table provides a brief overview of the strong and weak points of the security in the context of the strategy's criteria. P/E/GROWTH RATIO: PASS SALES AND P/E RATIO: PASS EPS GROWTH RATE: PASS TOTAL DEBT/EQUITY RATIO: PASS FREE CASH FLOW: NEUTRAL NET CASH POSITION: NEUTRAL Detailed Analysis of FIVE BELOW INC Full Guru Analysis for FIVE Full Factor Report for FIVE ACI WORLDWIDE INC (ACIW) is a mid-cap growth stock in the Consumer Financial Services industry. The rating according to our strategy based on Peter Lynch changed from 87% to 91% based on the firm’s underlying fundamentals and the stock’s valuation. A score of 80% or above typically indicates that the strategy has some interest in the stock and a score above 90% typically indicates strong interest. Company Description: ACI Worldwide, Inc. develops, markets, installs, and supports a line of software products and solutions primarily focused on facilitating real-time digital payments. Its segments include ACI On Demand serves the needs of banks, merchants, and billers. These on-demand solutions are maintained and delivered through the cloud via its global data centers and is available in either a single-tenant environment for software as a service (SaaS) offering, or in a multi-tenant environment for platform as a service (PaaS) offerings; and ACI On Premise serves customers who manage their software on site or through a third-party public cloud environment. Its solutions include ACI Acquiring, ACI Issuing, ACI Enterprise Payments Platform, ACI Low Value Real-Time Payments, ACI High Value Real-Time Payments, ACI Omni Commerce, ACI Secure eCommerce, ACI Fraud Management, ACI Digital Business Banking, and ACI Speedpay. The Company offers implementation, product support, technical, and education services. The following table summarizes whether the stock meets each of this strategy's tests. Not all criteria in the below table receive equal weighting or are independent, but the table provides a brief overview of the strong and weak points of the security in the context of the strategy's criteria. P/E/GROWTH RATIO: PASS SALES AND P/E RATIO: PASS EPS GROWTH RATE: PASS TOTAL DEBT/EQUITY RATIO: NEUTRAL EQUITY/ASSETS RATIO: PASS RETURN ON ASSETS: PASS FREE CASH FLOW: NEUTRAL NET CASH POSITION: NEUTRAL Detailed Analysis of ACI WORLDWIDE INC Full Guru Analysis for ACIW Full Factor Report for ACIW LULULEMON ATHLETICA INC (LULU) is a large-cap growth stock in the Retail (Apparel) industry. The rating according to our strategy based on Peter Lynch changed from 69% to 87% based on the firm’s underlying fundamentals and the stock’s valuation. A score of 80% or above typically indicates that the strategy has some interest in the stock and a score above 90% typically indicates strong interest. Company Description: lululemon athletica inc. is a designer, distributor and retailer of lifestyle inspired athletic apparel and accessories. The Company's segments include Company-operated stores and direct to consumer. Its apparel assortment includes items such as pants, shorts, tops, and jackets designed for a healthy lifestyle, including athletic activities such as yoga, running, training, and other sweaty pursuits. It also offers fitness-related accessories. Its Company-operated stores include approximately 574 stores in 17 countries. Its retail stores are located primarily on street locations, in lifestyle centers, and in malls. Its direct to consumer segment includes electronic commerce Website www.lululemon.com, other country and region-specific websites, and mobile applications, including mobile applications on in-store devices. The Company also conduct business through MIRROR, which offers in-home fitness through a workout platform; operate outlets and temporary locations. The following table summarizes whether the stock meets each of this strategy's tests. Not all criteria in the below table receive equal weighting or are independent, but the table provides a brief overview of the strong and weak points of the security in the context of the strategy's criteria. P/E/GROWTH RATIO: PASS SALES AND P/E RATIO: PASS EPS GROWTH RATE: PASS TOTAL DEBT/EQUITY RATIO: PASS FREE CASH FLOW: NEUTRAL NET CASH POSITION: NEUTRAL Detailed Analysis of LULULEMON ATHLETICA INC Full Guru Analysis for LULU Full Factor Report for LULU TEXAS ROADHOUSE INC (TXRH) is a mid-cap growth stock in the Restaurants industry. The rating according to our strategy based on Peter Lynch changed from 0% to 91% based on the firm’s underlying fundamentals and the stock’s valuation. A score of 80% or above typically indicates that the strategy has some interest in the stock and a score above 90% typically indicates strong interest. Company Description: Texas Roadhouse, Inc. is a United States based restaurant company that operates in the casual dining segment. The Company owns and operates approximately 548 restaurants and franchised an additional 99 restaurants in 49 states and ten foreign countries. Of the 548 restaurants it operates approximately 511 as Texas Roadhouse restaurants, 34 as Bubba's 33 restaurants and three as Jaggers restaurants. Texas Roadhouse is a full-service, casual dining restaurant concept offering an assortment of seasoned and aged steaks hand-cut daily on the premises and cooked to order over open grills. Bubba's 33 is a family-friendly, sports restaurant concept featuring scratch-made food, ice cold beer and signature drinks. Its menu features burgers, pizza and wings as well as a variety of appetizers, sandwiches and dinner entrees. The Jaggers is a fast-casual restaurant concept offering burgers, hand-breaded chicken tenders and chicken sandwiches served with scratch-made sauces. The following table summarizes whether the stock meets each of this strategy's tests. Not all criteria in the below table receive equal weighting or are independent, but the table provides a brief overview of the strong and weak points of the security in the context of the strategy's criteria. YIELD ADJUSTED P/E TO GROWTH (PEG) RATIO: PASS EARNINGS PER SHARE: PASS TOTAL DEBT/EQUITY RATIO: PASS FREE CASH FLOW: NEUTRAL NET CASH POSITION: NEUTRAL Detailed Analysis of TEXAS ROADHOUSE INC Full Guru Analysis for TXRH Full Factor Report for TXRH FUJIFILM HOLDINGS CORP. (ADR) (FUJIY) is a large-cap value stock in the Medical Equipment & Supplies industry. The rating according to our strategy based on Peter Lynch changed from 0% to 91% based on the firm’s underlying fundamentals and the stock’s valuation. A score of 80% or above typically indicates that the strategy has some interest in the stock and a score above 90% typically indicates strong interest. Company Description: FUJIFILM Holdings Corporation is a Japan-based holding company engaged in the business related to photography, medical care & printing & liquid crystal display materials and copying machines. The Company operates in three business segments. Imaging Solutions segment develops, manufactures and sells color films, digital cameras, color paper services for photographic prints, instant printing equipment and optical devices mainly for general consumers. Healthcare & Materials Solutions segment provides medical system equipment, cosmetics and supplements, pharmaceutical products, biopharmaceutical manufacturing development contract, regenerative medicine products, chemical products, graphic system equipment, inkjet equipment, display materials, recording media and electronic materials for commercial use. Document Solutions segment provides digital multi-functional peripherals, publishing systems, document management software and related solution services mainly for commercial use. The following table summarizes whether the stock meets each of this strategy's tests. Not all criteria in the below table receive equal weighting or are independent, but the table provides a brief overview of the strong and weak points of the security in the context of the strategy's criteria. INVENTORY TO SALES: PASS YIELD ADJUSTED P/E TO GROWTH (PEG) RATIO: PASS EARNINGS PER SHARE: PASS TOTAL DEBT/EQUITY RATIO: PASS FREE CASH FLOW: NEUTRAL NET CASH POSITION: NEUTRAL Detailed Analysis of FUJIFILM HOLDINGS CORP. (ADR) Full Guru Analysis for FUJIY Full Factor Report for FUJIY More details on Validea's Peter Lynch strategy Peter Lynch Stock Ideas About Peter Lynch: Perhaps the greatest mutual fund manager of all-time, Lynch guided Fidelity Investment's Magellan Fund to a 29.2 percent average annual return from 1977 until his retirement in 1990, almost doubling the S&P 500's 15.8 percent yearly return over that time. Lynch's common sense approach and quick wit made him one of the most quoted investors on Wall Street. ("Go for a business that any idiot can run -- because sooner or later, any idiot probably is going to run it," is one of his many pearls of wisdom.) Lynch's bestseller One Up on Wall Street is something of a "stocks for the everyman/everywoman", breaking his approach down into easy-to-understand concepts. About Validea: Validea is aninvestment researchservice that follows the published strategies of investment legends. Validea offers both stock analysis and model portfolios based on gurus who have outperformed the market over the long-term, including Warren Buffett, Benjamin Graham, Peter Lynch and Martin Zweig. For more information about Validea, click here The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
2022-05-10 00:00:00+00:00	AA	Validea Kenneth Fisher Strategy Daily Upgrade Report - 5/10/2022	The following are today's upgrades for Validea's Price/Sales Investor model based on the published strategy of Kenneth Fisher. This value strategy rewards stocks with low P/S ratios, long-term profit growth, strong free cash flow and consistent profit margins. DADA NEXUS LTD - ADR (DADA) is a small-cap value stock in the Retail (Catalog & Mail Order) industry. The rating according to our strategy based on Kenneth Fisher changed from 48% to 60% based on the firm’s underlying fundamentals and the stock’s valuation. A score of 80% or above typically indicates that the strategy has some interest in the stock and a score above 90% typically indicates strong interest. Company Description: Dada Nexus Ltd is a China-based holding company principally involved in the operation of local on-demand retail and delivery platforms. The Company's main platforms are JD-Daojia (JDDJ) and Dada Now. JDDJ is an on-demand retail platform operated in China. It facilitates digitalized transformation for retailers and brand owners on selling products through online channels. Dada Now is a China-based on-demand delivery platform using a crowdsourcing model to process on-demand delivery orders. The two platforms combined can deliver a range of products, including the goods from supermarkets and convenience stores, fresh fruits and vegetables and drugs, to the customers. The following table summarizes whether the stock meets each of this strategy's tests. Not all criteria in the below table receive equal weighting or are independent, but the table provides a brief overview of the strong and weak points of the security in the context of the strategy's criteria. PRICE/SALES RATIO: PASS TOTAL DEBT/EQUITY RATIO: PASS PRICE/RESEARCH RATIO: PASS PRICE/SALES RATIO: FAIL LONG-TERM EPS GROWTH RATE: FAIL FREE CASH PER SHARE: FAIL THREE YEAR AVERAGE NET PROFIT MARGIN: FAIL Detailed Analysis of DADA NEXUS LTD - ADR Full Guru Analysis for DADA Full Factor Report for DADA VIR BIOTECHNOLOGY INC (VIR) is a mid-cap value stock in the Biotechnology & Drugs industry. The rating according to our strategy based on Kenneth Fisher changed from 48% to 60% based on the firm’s underlying fundamentals and the stock’s valuation. A score of 80% or above typically indicates that the strategy has some interest in the stock and a score above 90% typically indicates strong interest. Company Description: Vir Biotechnology, Inc. is a commercial-stage immunology company focused on combining immunologic insights with technologies to treat and prevent serious infectious diseases. It has assembled four technology platforms focused on antibodies, T cells, innate immunity, and small interfering ribonucleic acid (siRNA), through internal development, collaborations, and acquisitions. The Company's pipeline consists of sotrovimab and other product candidates targeting COVID-19, hepatitis B virus (HBV), influenza A virus, and human immunodeficiency virus (HIV). Its product candidates include Sotrovimab and VIR-7832, VIR-2218, VIR-3434, VIR-2482, VIR-1111. It is engaged in developing differentiated monoclonal antibodies (mAbs) as well as vaccines and small molecules that focuses is on treating and preventing severe acute respiratory syndrome coronavirus 2 (SARS-CoV-2). VIR-2218 and VIR-3434, are for the treatment of HBV. VIR-2482 is an investigational IM administered influenza A-neutralizing mAb. The following table summarizes whether the stock meets each of this strategy's tests. Not all criteria in the below table receive equal weighting or are independent, but the table provides a brief overview of the strong and weak points of the security in the context of the strategy's criteria. PRICE/SALES RATIO: PASS TOTAL DEBT/EQUITY RATIO: PASS PRICE/RESEARCH RATIO: PASS PRICE/SALES RATIO: FAIL LONG-TERM EPS GROWTH RATE: FAIL FREE CASH PER SHARE: FAIL THREE YEAR AVERAGE NET PROFIT MARGIN: FAIL Detailed Analysis of VIR BIOTECHNOLOGY INC Full Guru Analysis for VIR Full Factor Report for VIR ALPHA METALLURGICAL RESOURCES INC (AMR) is a mid-cap value stock in the Coal industry. The rating according to our strategy based on Kenneth Fisher changed from 60% to 80% based on the firm’s underlying fundamentals and the stock’s valuation. A score of 80% or above typically indicates that the strategy has some interest in the stock and a score above 90% typically indicates strong interest. Company Description: Alpha Metallurgical Resources, Inc. is a mining company with operations across Virginia and West Virginia. The Company is principally engaged in supplying metallurgical products to the steel industry. The Company extracts, processes and markets met and thermal coal from deep and surface mines for sale to steel and coke producers, industrial customers, and electric utilities. The Company operates in one reportable segment: Met, which consists of five active mines and two preparation plants in Virginia, fourteen active mines and five preparation plants in West Virginia, as well as expenses associated with certain closed mines. The Met segment operations consist of met coal mines, including Deep Mine 41, Road Fork 52, Black Eagle, and Lynn Branch. The coal produced by its Met segment operations is predominantly met coal with some amounts of thermal coal being produced as a byproduct of mining. It conducts mining operations only in the United States with mines in Central Appalachia. The following table summarizes whether the stock meets each of this strategy's tests. Not all criteria in the below table receive equal weighting or are independent, but the table provides a brief overview of the strong and weak points of the security in the context of the strategy's criteria. PRICE/SALES RATIO: PASS TOTAL DEBT/EQUITY RATIO: PASS PRICE/RESEARCH RATIO: PASS PRICE/SALES RATIO: FAIL LONG-TERM EPS GROWTH RATE: PASS FREE CASH PER SHARE: PASS THREE YEAR AVERAGE NET PROFIT MARGIN: FAIL Detailed Analysis of ALPHA METALLURGICAL RESOURCES INC Full Guru Analysis for AMR Full Factor Report for AMR EXPRO GROUP HOLDINGS NV (XPRO) is a small-cap value stock in the Construction Services industry. The rating according to our strategy based on Kenneth Fisher changed from 48% to 60% based on the firm’s underlying fundamentals and the stock’s valuation. A score of 80% or above typically indicates that the strategy has some interest in the stock and a score above 90% typically indicates strong interest. Company Description: Frank's International NV, formerly Expro Group Holdings NV is a Netherlands-based company active in the energy sector. The Company provides energy services in the fields of construction, drilling, well management and production, well integrated and also provides access to submarine drilling. The Company's activities are divided into three operating segments: Tubular Running Services, that provides tubular running services globally; Tubulars segment designs, which manufactures and distributes connectors and casing attachments for large outside diameter (OD) heavy wall pipe and Cementing Equipment segment, that provides specialty equipment to enhance the safety and efficiency of rig operations. The following table summarizes whether the stock meets each of this strategy's tests. Not all criteria in the below table receive equal weighting or are independent, but the table provides a brief overview of the strong and weak points of the security in the context of the strategy's criteria. PRICE/SALES RATIO: PASS TOTAL DEBT/EQUITY RATIO: PASS PRICE/RESEARCH RATIO: PASS PRICE/SALES RATIO: FAIL LONG-TERM EPS GROWTH RATE: FAIL FREE CASH PER SHARE: FAIL THREE YEAR AVERAGE NET PROFIT MARGIN: FAIL Detailed Analysis of EXPRO GROUP HOLDINGS NV Full Guru Analysis for XPRO Full Factor Report for XPRO TEXAS ROADHOUSE INC (TXRH) is a mid-cap growth stock in the Restaurants industry. The rating according to our strategy based on Kenneth Fisher changed from 68% to 80% based on the firm’s underlying fundamentals and the stock’s valuation. A score of 80% or above typically indicates that the strategy has some interest in the stock and a score above 90% typically indicates strong interest. Company Description: Texas Roadhouse, Inc. is a United States based restaurant company that operates in the casual dining segment. The Company owns and operates approximately 548 restaurants and franchised an additional 99 restaurants in 49 states and ten foreign countries. Of the 548 restaurants it operates approximately 511 as Texas Roadhouse restaurants, 34 as Bubba's 33 restaurants and three as Jaggers restaurants. Texas Roadhouse is a full-service, casual dining restaurant concept offering an assortment of seasoned and aged steaks hand-cut daily on the premises and cooked to order over open grills. Bubba's 33 is a family-friendly, sports restaurant concept featuring scratch-made food, ice cold beer and signature drinks. Its menu features burgers, pizza and wings as well as a variety of appetizers, sandwiches and dinner entrees. The Jaggers is a fast-casual restaurant concept offering burgers, hand-breaded chicken tenders and chicken sandwiches served with scratch-made sauces. The following table summarizes whether the stock meets each of this strategy's tests. Not all criteria in the below table receive equal weighting or are independent, but the table provides a brief overview of the strong and weak points of the security in the context of the strategy's criteria. PRICE/SALES RATIO: PASS TOTAL DEBT/EQUITY RATIO: PASS PRICE/RESEARCH RATIO: PASS PRICE/SALES RATIO: FAIL LONG-TERM EPS GROWTH RATE: PASS FREE CASH PER SHARE: PASS THREE YEAR AVERAGE NET PROFIT MARGIN: FAIL Detailed Analysis of TEXAS ROADHOUSE INC Full Guru Analysis for TXRH Full Factor Report for TXRH AGENUS INC (AGEN) is a small-cap growth stock in the Business Services industry. The rating according to our strategy based on Kenneth Fisher changed from 48% to 60% based on the firm’s underlying fundamentals and the stock’s valuation. A score of 80% or above typically indicates that the strategy has some interest in the stock and a score above 90% typically indicates strong interest. Company Description: Agenus Inc. is a clinical-stage immuno-oncology (I-O) company. It has a pipeline of immune checkpoint antibodies, adoptive cell therapies and neoantigen cancer vaccines, to fight cancer. Its I-O assets include antibody-based therapeutics, monospecific and bispecific antibodies, cell therapy, vaccines and adjuvants. Its antibody candidates are Balstilimab (an anti-PD-1 antibody) and Zalifrelimab (an anti-CTLA-4 antibody), which is in Phase 2 trials as both a monotherapy (balstilimab) and combination therapy (balstilimab/zalifrelimab) for treatment of patients with second-line cervical cancer. Its clinical-stage asset portfolio also includes Botensilimab (AGEN1181), AGEN2373, AGEN1423, AGEN1777, MK-4830, INCAGN2390, INCAGN2385 and AGENT 797. It is developing personalized vaccines, namely Prophage and AutoSynVax, and off-the-shelf vaccines PhosphoSynVax, which contains heat shock proteins to deliver neoantigens to the right immune cells to activate an anti-cancer immune response. The following table summarizes whether the stock meets each of this strategy's tests. Not all criteria in the below table receive equal weighting or are independent, but the table provides a brief overview of the strong and weak points of the security in the context of the strategy's criteria. PRICE/SALES RATIO: PASS TOTAL DEBT/EQUITY RATIO: PASS PRICE/RESEARCH RATIO: PASS PRICE/SALES RATIO: FAIL LONG-TERM EPS GROWTH RATE: FAIL FREE CASH PER SHARE: FAIL THREE YEAR AVERAGE NET PROFIT MARGIN: FAIL Detailed Analysis of AGENUS INC Full Guru Analysis for AGEN Full Factor Report for AGEN AVIAT NETWORKS INC (AVNW) is a small-cap growth stock in the Communications Equipment industry. The rating according to our strategy based on Kenneth Fisher changed from 50% to 80% based on the firm’s underlying fundamentals and the stock’s valuation. A score of 80% or above typically indicates that the strategy has some interest in the stock and a score above 90% typically indicates strong interest. Company Description: Aviat Networks, Inc. is a global supplier of microwave networking solutions. The Company designs, manufactures, and sells a range of wireless networking solutions and services to mobile and fixed telephone service providers, private network operators, government agencies, transportation and utility companies, and broadcast system operators across the globe. The Company's products utilize microwave and millimeter wave technologies to create point to point wireless links for short, medium, and long-distance interconnections. Its products incorporate Ethernet switching and Internet protocol (IP) routing capabilities optimized for a microwave and millimeter wave environment and for hybrid applications of microwave and optical fiber transport, to form complete networking solutions. The Company provides software tools and applications to enable deployment, monitoring, network management and optimization of its systems as well as to automate network design and procurement. The following table summarizes whether the stock meets each of this strategy's tests. Not all criteria in the below table receive equal weighting or are independent, but the table provides a brief overview of the strong and weak points of the security in the context of the strategy's criteria. PRICE/SALES RATIO: PASS TOTAL DEBT/EQUITY RATIO: PASS PRICE/RESEARCH RATIO: PASS PRICE/SALES RATIO: FAIL LONG-TERM EPS GROWTH RATE: FAIL FREE CASH PER SHARE: PASS THREE YEAR AVERAGE NET PROFIT MARGIN: PASS Detailed Analysis of AVIAT NETWORKS INC Full Guru Analysis for AVNW Full Factor Report for AVNW ALCOA CORP (AA) is a mid-cap value stock in the Metal Mining industry. The rating according to our strategy based on Kenneth Fisher changed from 50% to 80% based on the firm’s underlying fundamentals and the stock’s valuation. A score of 80% or above typically indicates that the strategy has some interest in the stock and a score above 90% typically indicates strong interest. Company Description: Alcoa Corporation is a trading company. The Company is engaged in the production of bauxite, alumina and aluminum products. The Company's operations consist of three reportable business segments: Bauxite, Alumina, and Aluminum. The Bauxite and Alumina segments primarily consist of a series of affiliated operating entities held in Alcoa World Alumina and Chemicals (AWAC), which is a joint venture between Alcoa Corporation and Alumina Limited. The Aluminum segment consists of the Company's aluminum smelting, casting, and rolling businesses, along with the energy production business. Its Bauxite segment consists of the Company's global bauxite mining operations. The Company's Alumina segment consists of the Company's worldwide refining system, which processes bauxite into alumina. The Aluminum segment consists of its worldwide smelting and cast house system, a portfolio of energy assets in Brazil, Canada, and the United States. It has over 28 operating locations across nine countries. The following table summarizes whether the stock meets each of this strategy's tests. Not all criteria in the below table receive equal weighting or are independent, but the table provides a brief overview of the strong and weak points of the security in the context of the strategy's criteria. PRICE/SALES RATIO: PASS TOTAL DEBT/EQUITY RATIO: PASS PRICE/RESEARCH RATIO: PASS PRICE/SALES RATIO: PASS LONG-TERM EPS GROWTH RATE: FAIL FREE CASH PER SHARE: PASS THREE YEAR AVERAGE NET PROFIT MARGIN: FAIL Detailed Analysis of ALCOA CORP Full Guru Analysis for AA Full Factor Report for AA WARRIOR MET COAL INC (HCC) is a small-cap value stock in the Coal industry. The rating according to our strategy based on Kenneth Fisher changed from 38% to 80% based on the firm’s underlying fundamentals and the stock’s valuation. A score of 80% or above typically indicates that the strategy has some interest in the stock and a score above 90% typically indicates strong interest. Company Description: Warrior Met Coal, Inc. is a producer and exporter of metallurgical coal for the global steel industry from underground mines located in Brookwood, Alabama, southwest of Birmingham and near Tuscaloosa. These underground coal mines are approximately 1,400 to 2,100 feet underground, making them some of the deepest vertical shaft coal mines in North America. The Company's operations also extract methane gas from the Blue Creek coal seam. The Company is a producer and exporter of premium met coal, also known as hard coking coal (HCC), operating longwall operations in its underground mines based in Alabama. The HCC that Warrior produces from the Blue Creek, AL, coal seam contains very low sulfur and has strong coking properties. The following table summarizes whether the stock meets each of this strategy's tests. Not all criteria in the below table receive equal weighting or are independent, but the table provides a brief overview of the strong and weak points of the security in the context of the strategy's criteria. PRICE/SALES RATIO: PASS TOTAL DEBT/EQUITY RATIO: PASS PRICE/RESEARCH RATIO: PASS PRICE/SALES RATIO: FAIL LONG-TERM EPS GROWTH RATE: FAIL FREE CASH PER SHARE: PASS THREE YEAR AVERAGE NET PROFIT MARGIN: PASS Detailed Analysis of WARRIOR MET COAL INC Full Guru Analysis for HCC Full Factor Report for HCC SONOS INC (SONO) is a mid-cap growth stock in the Audio & Video Equipment industry. The rating according to our strategy based on Kenneth Fisher changed from 58% to 70% based on the firm’s underlying fundamentals and the stock’s valuation. A score of 80% or above typically indicates that the strategy has some interest in the stock and a score above 90% typically indicates strong interest. Company Description: Sonos, Inc. is engaged in the business of developing wireless multi-room home audio systems. The Company offers speakers, portable speakers, home theatre, sets, accessories, architectural, components, and speaker recommender. The Company provides customers with access to voice control, streaming music, Internet radio, podcasts, and audiobook content, enabling them to control and listen to a range of audio entertainment. Through its software platform, the Company enhances the features and services of its products. The Company's speaker products include wireless speakers and home theater speakers. The Company's streaming content is available on Apple Music, Pandora, Spotify, and TuneIn. The following table summarizes whether the stock meets each of this strategy's tests. Not all criteria in the below table receive equal weighting or are independent, but the table provides a brief overview of the strong and weak points of the security in the context of the strategy's criteria. PRICE/SALES RATIO: PASS TOTAL DEBT/EQUITY RATIO: PASS PRICE/RESEARCH RATIO: PASS PRICE/SALES RATIO: FAIL LONG-TERM EPS GROWTH RATE: FAIL FREE CASH PER SHARE: PASS THREE YEAR AVERAGE NET PROFIT MARGIN: FAIL Detailed Analysis of SONOS INC Full Guru Analysis for SONO Full Factor Report for SONO WATSCO INC (WSO) is a mid-cap growth stock in the Misc. Capital Goods industry. The rating according to our strategy based on Kenneth Fisher changed from 68% to 90% based on the firm’s underlying fundamentals and the stock’s valuation. A score of 80% or above typically indicates that the strategy has some interest in the stock and a score above 90% typically indicates strong interest. Company Description: Watsco, Inc. is engaged in distributing of air conditioning, heating and refrigeration equipment and related parts and supplies (HVAC/R) in the HVAC/R distribution industry in North America. The Company sells a range of non-equipment products including parts, ductwork, air movement products, insulation, tools, installation supplies, thermostats, and air quality products. Its products include condensing units, compressors, evaporators, valves, refrigerant, walk-in coolers, and ice machines for industrial and commercial applications. The Company distributes products manufactured by Flexible Technologies, Inc. (Flexible Technologies), Resideo Technologies, Inc. (Resideo), Southwark Metal Mfg. Co. (Southwark), Johns Manville and Owens Corning Insulating Systems, LLC (Owens Corning), among others. It operates from approximately 671 locations in 42 United States, Canada, Mexico and Puerto Rico with additional market coverage on an export basis to portions of Latin America and the Caribbean. The following table summarizes whether the stock meets each of this strategy's tests. Not all criteria in the below table receive equal weighting or are independent, but the table provides a brief overview of the strong and weak points of the security in the context of the strategy's criteria. PRICE/SALES RATIO: PASS TOTAL DEBT/EQUITY RATIO: PASS PRICE/RESEARCH RATIO: PASS PRICE/SALES RATIO: FAIL LONG-TERM EPS GROWTH RATE: PASS FREE CASH PER SHARE: PASS THREE YEAR AVERAGE NET PROFIT MARGIN: PASS Detailed Analysis of WATSCO INC Full Guru Analysis for WSO Full Factor Report for WSO More details on Validea's Kenneth Fisher strategy About Kenneth Fisher: The son of Philip Fisher, who is considered the "Father of Growth Investing", Kenneth Fisher is a money manager, bestselling author, and longtime Forbes columnist. The younger Fisher wowed Wall Street in the mid-1980s when his book Super Stocks first popularized the idea of using the price/sales ratio (PSR) as a means of identifying attractive stocks. According to his alma mater, Humboldt State University, Fisher is also one of the world's foremost experts on 19th century logging. Appropriately, Fisher's firm, Fisher Investments, is located in a lush forest preserve in Woodside, California, where the contrarian-minded Fisher says he and his employees can get away from Wall Street groupthink. About Validea: Validea is aninvestment researchservice that follows the published strategies of investment legends. Validea offers both stock analysis and model portfolios based on gurus who have outperformed the market over the long-term, including Warren Buffett, Benjamin Graham, Peter Lynch and Martin Zweig. For more information about Validea, click here The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
2022-05-10 00:00:00+00:00	AA	Dover (DOV) to Acquire Malema, Expand Biopharma Offerings	Dover Corporation DOV has entered into a definitive agreement to acquire Malema Engineering Corporation. It will become part of DOV’s Pumps & Process Solutions segment and enhance its biopharma single-use production offering, which currently includes Quattroflow pumps, CPC connectors, and em-tec flowmeters. Boca Raton, FL-based Malema is a designer and manufacturer of high-precision, mission-critical flow-measurement and control instruments serving customers in the biopharmaceutical, semiconductor, and industrial sectors. It has facilities in San Jose, CA, Singapore, South Korea, and India. Malema is expected to generate approximately $40-45 million in revenues in 2022. The deal is valued at $225 million in cash at closing, subject to customary purchase price adjustments, and up to $50 million in contingent consideration dependent on the achievement of certain financial objectives over a two-year period. The deal is expected to close in the ongoing quarter, subject to the satisfaction of necessary approvals. Malema brings with it a loyal base of blue-chip customers, OEMs and end-users with substantial aftermarket and recurring revenue streams. Malema's first-of-its-kind single-use flow sensor using Coriolis technology offers superior flow-measurement performance and accuracy compared to alternative technologies. It aids in minimizing the scope for measurement error and eliminating the need for calibration in time-sensitive and contamination-intolerant environments. Dover is working toward building its biopharma platform through proactive capacity additions, new product development, and opportunistic acquisitions of highly-attractive niche component technologies. The bioprocessing industry is full of long-term growth opportunities, courtesy of a robust pipeline of effective novel biologic drugs, biosimilars, protein therapies, non-COVID mRNA vaccines, as well as budding cell & gene therapies. The growing adoption of more efficient single-use production processes will support demand for the company’s offerings of single-use components to end customers. Integrating Malema's technology with Dover’s existing portfolio of single-use pumps for biopharma processing will enhance the accuracy and value proposition of solutions to its customers. Dover has a long tradition of making successful acquisitions in diverse end markets. Mergers and acquisitions contributed to the top-line growth of $53 million in the first quarter of 2022. Strong demand and robust order and backlog rates supported the top-line growth across the majority of the company’s businesses during the quarter. Total revenues increased 10% year over year to $2,052 million. Dover reported adjusted earnings per share (EPS) of $1.90, which improved 5% year over year. Dover expects adjusted EPS between $8.45 and $8.65 for 2022. It expects organic revenue growth of 7-9% for the year. Robust demand and record backlog levels will continue to drive the company’s revenues in the current year. The company recently acquired certain intellectual property associated with electrically operated refuse collection vehicle bodies from Boivin Evolution Inc. The buyout will expand the technological footprint and product portfolio of Dover’s Environmental Solutions Group business unit within its Engineered Products segment. Price Performance Image Source: Zacks Investment Research Dover’s shares have fallen 13.9% in the past year compared with the industry’s decline of 28.4%. Zacks Rank and Stocks to Consider Dover currently carries a Zacks Rank #3 (Hold). Some better-ranked stocks in the Industrial Products sector are Alcoa AA, Packaging Corporation of America PKG and Graphic Packaging Holding Company GPK. All of these stocks flaunt a Zacks Rank #1 (Strong Buy). You can see the complete list of today’s Zacks #1 Rank stocks here. Alcoa has a projected earnings growth rate of 107% for the current year. The Zacks Consensus Estimate for 2022 earnings has moved north by 76% in the past 60 days. Alcoa delivered a trailing four-quarter earnings surprise of 17.4%, on average. Alcoa’s shares have gained 32% in the past year. Packaging Corporation has an expected earnings growth rate of 16.2% for 2022. The Zacks Consensus Estimate for the current year’s earnings has moved up 4.2% in the past 60 days. PKG has a trailing four-quarter earnings surprise of 19.6%, on average. Packaging Corporation’s shares have gained 4% in the past year. Graphic Packaging has an estimated earnings growth rate of 86.8% for the current year. In the past 60 days, the Zacks Consensus Estimate for current-year earnings has been revised upward by 7.6%. Graphic Packaging pulled off a trailing four-quarter earnings surprise of 7.2%, on average. The company’s shares have appreciated 14.8% in a year’s time. Bitcoin, Like the Internet Itself, Could Change Everything Blockchain and cryptocurrency has sparked one of the most exciting discussion topics of a generation. Some call it the “Internet of Money” and predict it could change the way money works forever. If true, it could do to banks what Netflix did to Blockbuster and Amazon did to Sears. Experts agree we’re still in the early stages of this technology, and as it grows, it will create several investing opportunities. Zacks’ has just revealed 3 companies that can help investors capitalize on the explosive profit potential of Bitcoin and the other cryptocurrencies with significantly less volatility than buying them directly. See 3 crypto-related stocks now >> Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report Alcoa (AA): Free Stock Analysis Report Dover Corporation (DOV): Free Stock Analysis Report Packaging Corporation of America (PKG): Free Stock Analysis Report Graphic Packaging Holding Company (GPK): Free Stock Analysis Report To read this article on Zacks.com click here. Zacks Investment Research The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
2022-05-09 00:00:00+00:00	AA	AA Makes Notable Cross Below Critical Moving Average	In trading on Monday, shares of Alcoa Corporation (Symbol: AA) crossed below their 200 day moving average of $59.07, changing hands as low as $54.71 per share. Alcoa Corporation shares are currently trading off about 10.3% on the day. The chart below shows the one year performance of AA shares, versus its 200 day moving average: Looking at the chart above, AA's low point in its 52 week range is $30.995 per share, with $98.09 as the 52 week high point — that compares with a last trade of $54.91. Click here to find out which 9 other stocks recently crossed below their 200 day moving average » The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
2022-05-09 00:00:00+00:00	AA	Is Alcoa (AA) Stock Outpacing Its Industrial Products Peers This Year?	For those looking to find strong Industrial Products stocks, it is prudent to search for companies in the group that are outperforming their peers. Alcoa (AA) is a stock that can certainly grab the attention of many investors, but do its recent returns compare favorably to the sector as a whole? By taking a look at the stock's year-to-date performance in comparison to its Industrial Products peers, we might be able to answer that question. Alcoa is one of 229 companies in the Industrial Products group. The Industrial Products group currently sits at #9 within the Zacks Sector Rank. The Zacks Sector Rank gauges the strength of our 16 individual sector groups by measuring the average Zacks Rank of the individual stocks within the groups. The Zacks Rank is a proven system that emphasizes earnings estimates and estimate revisions, highlighting a variety of stocks that are displaying the right characteristics to beat the market over the next one to three months. Alcoa is currently sporting a Zacks Rank of #1 (Strong Buy). Over the past three months, the Zacks Consensus Estimate for AA's full-year earnings has moved 88% higher. This is a sign of improving analyst sentiment and a positive earnings outlook trend. According to our latest data, AA has moved about 2.5% on a year-to-date basis. At the same time, Industrial Products stocks have lost an average of 15.5%. This means that Alcoa is performing better than its sector in terms of year-to-date returns. Graphic Packaging (GPK) is another Industrial Products stock that has outperformed the sector so far this year. Since the beginning of the year, the stock has returned 11.5%. In Graphic Packaging's case, the consensus EPS estimate for the current year increased 11% over the past three months. The stock currently has a Zacks Rank #1 (Strong Buy). Breaking things down more, Alcoa is a member of the Metal Products - Distribution industry, which includes 6 individual companies and currently sits at #26 in the Zacks Industry Rank. This group has gained an average of 5.4% so far this year, so AA is slightly underperforming its industry in this area. Graphic Packaging, however, belongs to the Containers - Paper and Packaging industry. Currently, this 12-stock industry is ranked #86. The industry has moved +2.8% so far this year. Investors with an interest in Industrial Products stocks should continue to track Alcoa and Graphic Packaging. These stocks will be looking to continue their solid performance. 7 Best Stocks for the Next 30 Days Just released: Experts distill 7 elite stocks from the current list of 220 Zacks Rank #1 Strong Buys. They deem these tickers "Most Likely for Early Price Pops." Since 1988, the full list has beaten the market more than 2X over with an average gain of +25.4% per year. So be sure to give these hand-picked 7 your immediate attention. See them now >> Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report Alcoa (AA): Free Stock Analysis Report Graphic Packaging Holding Company (GPK): Free Stock Analysis Report To read this article on Zacks.com click here. Zacks Investment Research The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
2022-05-06 00:00:00+00:00	AA	Manitowoc (MTW) Q1 Earnings Miss Estimates, Revenues Beat	The Manitowoc Company, Inc. MTW reported adjusted earnings per share (EPS) of 3 cents in first-quarter 2022, missing the Zacks Consensus Estimate of 6 cents per share. The bottom line, however, marked a solid improvement from a loss of 6 cents per share in the year-ago quarter. Including one-time items, the company reported earnings per share of 9 cents in the quarter against the prior-year quarter’s loss of 9 cents per share. Manitowoc’s revenues rose 29.6% year over year to $459 million in the quarter under review. The top line beat the Zacks Consensus Estimate of $432 million. Unfavorable changes in foreign currency translation rates had an impact of $15.8 million on sales. Orders in the reported quarter increased 1.7% year over year to $481.5 million. Backlog at the end of the quarter was $1,033.4 million, up 56% from the last-year quarter. The Manitowoc Company, Inc. Price, Consensus and EPS Surprise The Manitowoc Company, Inc. price-consensus-eps-surprise-chart \| The Manitowoc Company, Inc. Quote Operational Update Cost of sales surged 31% year over year to $374 million in the reported quarter. Gross profit moved up 24.3% year over year to $85 million. Gross margin was 18.5% in the reported quarter compared with 19.3% in the prior-year quarter. Engineering, selling and administrative expenses increased 15% year over year to $66 million. Adjusted operating income was $14 million in the quarter, down 30% from $11 million in the prior-year quarter. Adjusted EBITDA in the reported quarter was $31.2 million compared with $21.1 million in the prior-year quarter. Adjusted EBITDA margin contracted to 6.8% from the year-ago quarter’s 6%. Financial Updates Manitowoc reported cash and cash equivalents of $51.6 million at the end of the first quarter of 2022, down from $75.4 million at the 2021-end. Long-term debt was $380.1 million at the end of the quarter under review, down from $399.9 million at the 2021-end. The company generated $5.6 million of cash in operating activities in the first quarter of 2022 compared with $40.8 million in the last-year quarter. Outlook Manitowoc now expects results in 2022 to be at the lower end of its guidance. It anticipates downward pressure on margins in the second half compared to its prior expectations. MTW had earlier provided revenue guidance in the range of $2.0 billion to $2.2 billion. Adjusted EBITDA is anticipated between $130 million and $160 million. Adjusted EPS is expected between 65 cents and $1.35. Price Performance Image Source: Zacks Investment Research In the past year, Manitowoc’s shares have fallen 47.9% compared with the industry’s decline of 10.7%. Zacks Rank and Stocks to Consider Manitowoc currently carries a Zacks Rank #3 (Hold). Some better-ranked stocks in the Industrial Products sector are Alcoa AA, Packaging Corporation of America PKG and Graphic Packaging Holding Company GPK. All of these stocks flaunt a Zacks Rank #1 (Strong Buy). You can see the complete list of today’s Zacks #1 Rank stocks here. Alcoa has a projected earnings growth rate of 107% for the current year. The Zacks Consensus Estimate for 2022 earnings has moved north by 76% in the past 60 days. Alcoa delivered a trailing four-quarter earnings surprise of 17.4%, on average. Alcoa’s shares have surged 69.3% in the past year. Packaging Corporation has an expected earnings growth rate of 16.2% for 2022. The Zacks Consensus Estimate for the current year’s earnings has moved up 4.2% in the past 60 days. PKG has a trailing four-quarter earnings surprise of 19.6%, on average. Packaging Corporation’s shares have gained 5.4% in the past year. Graphic Packaging has an estimated earnings growth rate of 86.8% for the current year. In the past 60 days, the Zacks Consensus Estimate for current-year earnings has been revised upward by 7.6%. Graphic Packaging pulled off a trailing four-quarter earnings surprise of 7.2%, on average. The company’s shares have appreciated 14.8% in a year’s time. Zacks Names "Single Best Pick to Double" From thousands of stocks, 5 Zacks experts each have chosen their favorite to skyrocket +100% or more in months to come. From those 5, Director of Research Sheraz Mian hand-picks one to have the most explosive upside of all. It’s a little-known chemical company that’s up 65% over last year, yet still dirt cheap. With unrelenting demand, soaring 2022 earnings estimates, and $1.5 billion for repurchasing shares, retail investors could jump in at any time. This company could rival or surpass other recent Zacks’ Stocks Set to Double like Boston Beer Company which shot up +143.0% in little more than 9 months and NVIDIA which boomed +175.9% in one year. Free: See Our Top Stock and 4 Runners Up >> Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report The Manitowoc Company, Inc. (MTW): Free Stock Analysis Report Alcoa (AA): Free Stock Analysis Report Packaging Corporation of America (PKG): Free Stock Analysis Report Graphic Packaging Holding Company (GPK): Free Stock Analysis Report To read this article on Zacks.com click here. Zacks Investment Research The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
2022-05-05 00:00:00+00:00	AA	Ball Corp (BLL) Q1 Earnings Miss, Sales Beat Estimates, Up Y/Y	Ball Corporation BLL reported first-quarter 2022 adjusted earnings of 77 cents per share, missing the Zacks Consensus Estimate of 83 cents. The bottom line increased 7% year over year. On a reported basis, the company’s earnings were $1.37 per share compared with the prior-year quarter’s 60 cents. Total sales came in at $3,716 million in the reported quarter, up 19% from the year-ago quarter’s levels. The top line surpassed the Zacks Consensus Estimate of $3,546 million. All the segments reported higher sales volume on the back of higher shipments and contractual pass-through of higher aluminum costs. In the quarter, global beverage-can volumes were up 13%. Operational Update Cost of sales amounted to $3,016 million in first-quarter 2022, up 21% from the year-ago quarter’s levels. The gross profit totaled $700 million compared with the year-ago quarter’s $632 million. The gross margin came in at 18.8%, down from the prior-year quarter’s 20.2%. Selling, general and administrative expenses increased 18% year over year to $186 million. The adjusted operating profit was $366 million compared with the prior-year quarter’s $345 million. The adjusted operating margin came in at 9.8% compared with the prior-year quarter’s 11%. Ball Corporation Price, Consensus and EPS Surprise Ball Corporation price-consensus-eps-surprise-chart \| Ball Corporation Quote Segment Performance The Beverage packaging North and Central America segment revenues increased 24% year over year to $1,609 million in the first quarter. Operating earnings amounted to $174 million, up 24% year over year. Sales at the Beverage packaging, EMEA segment were $942 million in the quarter, up 18% year over year. Operating earnings came in at $100 million, flat year over year. The Beverage packaging South America segment’s revenues were $494 million in the reported quarter, up 1.4% year over year. Operating earnings were down 16% to $78 million. The Aerospace segment’s sales were up 19% year over year to $504 million. Operating earnings increased 23% to $43 million. At the end of the quarter, the segment’s contracted backlog was $3.2 billion. Contracts already won but not yet booked into the current contracted backlog were $4.1 billion. Financial Condition The company reported cash and cash equivalents of $437 million at the end of first-quarter 2022, down from $461 million at the end of the prior-year quarter. Cash utilized in operating activities amounted to $804 million in the first quarter compared with $477 million in the comparable period last year. Ball Corp is well poised to return approximately $1.75 billion to shareholders through the year while investing $1.8 billion on capital expenditures. The company’s long-term debt increased to $8.3 billion at the end of the first quarter from $6.9 billion at the end of the year-ago quarter. Outlook Ball Corporation is well poised to increase cash from operations and adjusted EPS through accelerating shareholder returns in the form of share repurchases and dividends in 2022. Its Drive for 10 vision, disciplined capital allocation and robust demand for sustainable packaging and technologies bode well for the company. It maintains its expectation to exceed its long-term diluted earnings per share growth goal of 10-15%. Business Update Ball Corporation has decided to reduce operations at its three manufacturing plants in Russia while evaluating the option of selling its Russian business, which is part of the Beverage packaging, EMEA segment. This business contributed 4% to the company's total net sales and 8% to total comparable operating earnings in 2021. Additionally, its plants in Russia accounted for approximately 5% of the company's 112.5 billion global beverage can unit shipments for the 12 months ended Dec 31, 2021. Price Performance The company’s shares have depreciated 8.1% over the past year compared with the industry’s loss of 4.4%. Image Source: Zacks Investment Research Zacks Rank and Key Picks Ball Corp currently carries a Zacks #4 Rank (Sell). Some better-ranked stocks in the Industrial Products sector are Alcoa AA, Packaging Corporation of America PKG and Graphic Packaging Holding Company GPK. All of these stocks flaunt a Zacks Rank #1 (Strong Buy). You can see the complete list of today’s Zacks #1 Rank stocks here. Alcoa has a projected earnings growth rate of 107% for the current year. The Zacks Consensus Estimate for 2022 earnings has moved north by 76% in the past 60 days. Alcoa delivered a trailing four-quarter earnings surprise of 17.4%, on average. Alcoa’s shares have surged 69.3% in the past year. Packaging Corporation has an expected earnings growth rate of 16.2% for 2022. The Zacks Consensus Estimate for the current year’s earnings has moved up 4.2% in the past 60 days. PKG has a trailing four-quarter earnings surprise of 19.6%, on average. Packaging Corporation’s shares have gained 5.4% in the past year. Graphic Packaging has an estimated earnings growth rate of 86.8% for the current year. In the past 60 days, the Zacks Consensus Estimate for current-year earnings has been revised upward by 7.6%. Graphic Packaging pulled off a trailing four-quarter earnings surprise of 7.2%, on average. The company’s shares have appreciated 14.8% in a year’s time. Just Released: Zacks Top 10 Stocks for 2022 In addition to the investment ideas discussed above, would you like to know about our 10 top picks for the entirety of 2022? From inception in 2012 through 2021, the Zacks Top 10 Stocks portfolios gained an impressive +1,001.2% versus the S&P 500’s +348.7%. Now our Director of Research has combed through 4,000 companies covered by the Zacks Rank and has handpicked the best 10 tickers to buy and hold. Don’t miss your chance to get in…because the sooner you do, the more upside you stand to grab. See Stocks Now >> Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report Alcoa (AA): Free Stock Analysis Report Ball Corporation (BLL): Free Stock Analysis Report Packaging Corporation of America (PKG): Free Stock Analysis Report Graphic Packaging Holding Company (GPK): Free Stock Analysis Report To read this article on Zacks.com click here. Zacks Investment Research The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
2022-05-04 00:00:00+00:00	AA	Should Schwab U.S. SmallCap ETF (SCHA) Be on Your Investing Radar?	If you're interested in broad exposure to the Small Cap Blend segment of the US equity market, look no further than the Schwab U.S. SmallCap ETF (SCHA), a passively managed exchange traded fund launched on 11/03/2009. The fund is sponsored by Charles Schwab. It has amassed assets over $15.18 billion, making it one of the largest ETFs attempting to match the Small Cap Blend segment of the US equity market. Why Small Cap Blend Small cap companies have market capitalization below $2 billion. They usually have higher potential than large and mid cap companies with stocks but higher risk. Blend ETFs usually hold a mix of growth and value stocks as well as stocks that exhibit both value and growth characteristics. Costs Expense ratios are an important factor in the return of an ETF and in the long term, cheaper funds can significantly outperform their more expensive counterparts, other things remaining the same. Annual operating expenses for this ETF are 0.04%, making it the least expensive products in the space. It has a 12-month trailing dividend yield of 1.30%. Sector Exposure and Top Holdings ETFs offer a diversified exposure and thus minimize single stock risk but it is still important to delve into a fund's holdings before investing. Most ETFs are very transparent products and many disclose their holdings on a daily basis. This ETF has heaviest allocation to the Financials sector--about 16.80% of the portfolio. Industrials and Information Technology round out the top three. Looking at individual holdings, Alcoa Corp (AA) accounts for about 0.41% of total assets, followed by Zoominfo Technologies Inc Class A (ZI) and Builders Firstsource Inc (BLDR). The top 10 holdings account for about 3.31% of total assets under management. Performance and Risk SCHA seeks to match the performance of the Dow Jones U.S. Small-Cap Total Stock Market Index before fees and expenses. The Dow Jones U.S. Small-Cap Total Stock Market Index includes the small-cap portion of the Dow Jones U.S. Total Stock Market Index actually available to investors in the marketplace. The ETF has lost about -15.02% so far this year and is down about -13.59% in the last one year (as of 05/04/2022). In the past 52-week period, it has traded between $43.08 and $55.07. The ETF has a beta of 1.18 and standard deviation of 29.10% for the trailing three-year period, making it a medium risk choice in the space. With about 1795 holdings, it effectively diversifies company-specific risk. Alternatives Schwab U.S. SmallCap ETF holds a Zacks ETF Rank of 2 (Buy), which is based on expected asset class return, expense ratio, and momentum, among other factors. Because of this, SCHA is an outstanding option for investors seeking exposure to the Style Box - Small Cap Blend segment of the market. There are other additional ETFs in the space that investors could consider as well. The iShares Russell 2000 ETF (IWM) and the iShares Core S&P SmallCap ETF (IJR) track a similar index. While iShares Russell 2000 ETF has $55.06 billion in assets, iShares Core S&P SmallCap ETF has $67.22 billion. IWM has an expense ratio of 0.19% and IJR charges 0.06%. Bottom-Line Passively managed ETFs are becoming increasingly popular with institutional as well as retail investors due to their low cost, transparency, flexibility and tax efficiency. They are excellent vehicles for long term investors. To learn more about this product and other ETFs, screen for products that match your investment objectives and read articles on latest developments in the ETF investing universe, please visit Zacks ETF Center. Want key ETF info delivered straight to your inbox? Zacks’ free Fund Newsletter will brief you on top news and analysis, as well as top-performing ETFs, each week. Get it free >> Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report Schwab U.S. SmallCap ETF (SCHA): ETF Research Reports Alcoa (AA): Free Stock Analysis Report Builders FirstSource, Inc. (BLDR): Free Stock Analysis Report iShares Russell 2000 ETF (IWM): ETF Research Reports iShares Core S&P SmallCap ETF (IJR): ETF Research Reports ZoomInfo Technologies Inc. (ZI): Free Stock Analysis Report To read this article on Zacks.com click here. Zacks Investment Research The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
2022-05-04 00:00:00+00:00	AA	Timken (TKR) Earnings & Sales Surpass Estimates in Q1, Up Y/Y	The Timken Company TKR reported adjusted earnings per share (EPS) of a record $1.61 in first-quarter 2022, beating the Zacks Consensus Estimate of $1.15 per share. The bottom line increased 17% year over year, owing to higher customer demand and benefits from pricing actions. On a reported basis, the company delivered earnings of a record $1.56 per share in the quarter under review compared with $1.47 per share in the prior-year quarter. Total revenues in the quarter were record $1,125 million, up 9.7% from the year-ago quarter’s levels. The upside can be attributed to strong growth across most end-market sectors, driven by industrial distribution and off-highway as well as the favorable impact of higher pricing, partly offset by unfavorable currency. The top line surpassed the Zacks Consensus Estimate of $1,116 million. Timken Company The Price, Consensus and EPS Surprise Timken Company The price-consensus-eps-surprise-chart \| Timken Company The Quote Costs and Margins Cost of sales rose 9.8% to $797 million from the prior-year quarter’s levels. Gross profit increased 9% year over year to $327 million. The gross margin was 29.1%, flat year over year. Selling, general and administrative expenses were up 7% year over year to $154 million. Adjusted EBITDA increased 17% year over year to $158 million. Adjusted EBITDA margin in the quarter was 27.1% compared with 26% in the prior-year quarter. Segment Performance The Mobile Industries segment’s revenues rose 7.1% year over year to $540 million. Higher shipments in the off-highway and rail sectors and the favorable impact of higher pricing led to the uptick. The segment’s adjusted earnings before interest, taxes, depreciation and amortization (EBITDA) came in at $79 million compared with the year-ago quarter’s $80 million. The Process Industries segment’s revenues rose 12% year over year to $584 million in first-quarter 2022, primarily on account of strong growth in most sectors led by distribution and general industrial sectors and the impact of higher pricing. These were partly offset by lower revenues in the renewable energy sector and unfavorable currency. The segment’s adjusted EBITDA was up 17% year over year to $158 million. Financial Position Timken had cash and cash equivalents of $425 million at the end of the first quarter, up from $257 million at the end of 2021. Cash utilized in operating activities was $1.2 million in the first quarter against the cash generation of $32 million in the prior-year period. During the first quarter, Timken returned $124 million of cash to shareholders through dividends and share repurchases. Long-term debt as of Mar 31, 2022, was $1.75 billion compared with $1.41 billion as of Dec 31, 2021. Net debt to adjusted EBITDA was 1.8 as of Mar 31, 2022, compared with 1.7 as of Dec 31, 2021. 2022 Guidance Timken now expects the current year’s total revenues to be up around 8% compared with 2021 levels, reflecting the impact from operations suspension in Russia and expected unfavorable impact of unfavorable currency translation. The company reaffirms adjusted EPS guidance for the year in between $5.00 and $5.40. The company anticipates double-digit earnings growth in 2022, driven by robust demand for industrial products, improved operational execution and benefits from price realization. Price Performance In the past year, shares of Timken have lost 32% compared with the industry’s decline of 26%. Image Source: Zacks Investment Research Zacks Rank & Stocks to Consider Timken currently has a Zacks Rank #3 (Hold). Some better-ranked stocks in the Industrial Products sector are Alcoa AA, Packaging Corporation of America PKG and Graphic Packaging Holding Company GPK. All of these stocks flaunt a Zacks Rank #1 (Strong Buy). You can see the complete list of today’s Zacks #1 Rank stocks here. Alcoa has a projected earnings growth rate of 107% for the current year. The Zacks Consensus Estimate for 2022 earnings has moved north by 76% in the past 60 days. Alcoa delivered a trailing four-quarter earnings surprise of 17.4%, on average. Alcoa’s shares have surged 69.3% in the past year. Packaging Corporation has an expected earnings growth rate of 16.2% for 2022. The Zacks Consensus Estimate for the current year’s earnings has moved up 4.2% in the past 60 days. PKG has a trailing four-quarter earnings surprise of 19.6%, on average. Packaging Corporation’s shares have gained 5.4% in the past year. Graphic Packaging has an estimated earnings growth rate of 86.8% for the current year. In the past 60 days, the Zacks Consensus Estimate for current-year earnings has been revised upward by 7.6%. Graphic Packaging pulled off a trailing four-quarter earnings surprise of 7.2%, on average. The company’s shares have appreciated 14.8% in a year’s time. 5 Stocks Set to Double Each was handpicked by a Zacks expert as the #1 favorite stock to gain +100% or more in 2021. Previous recommendations have soared +143.0%, +175.9%, +498.3% and +673.0%. Most of the stocks in this report are flying under Wall Street radar, which provides a great opportunity to get in on the ground floor. Today, See These 5 Potential Home Runs >> Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report Alcoa (AA): Free Stock Analysis Report Packaging Corporation of America (PKG): Free Stock Analysis Report Timken Company The (TKR): Free Stock Analysis Report Graphic Packaging Holding Company (GPK): Free Stock Analysis Report To read this article on Zacks.com click here. Zacks Investment Research The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
2022-05-04 00:00:00+00:00	AA	AGCO Corp (AGCO) Q1 Earnings & Sales Top Estimates, Up Y/Y	AGCO Corporation AGCO delivered adjusted earnings per share (EPS) of $2.39 in first-quarter 2022 compared with the prior-year quarter’s $2 per share. The reported figure beat the Zacks Consensus Estimate of $1.88. The quarterly results reflect favorable farm fundamentals, robust global demand and price increase actions. Including one-time items, AGCO posted EPS of $2.03 compared with the year-ago quarter’s $1.99. Revenues increased 13% year over year to $2,686 million during the March-end quarter. The top line surpassed the Zacks Consensus Estimate of $2,640 million. Excluding the unfavorable currency-translation impact of 5%, net sales were up 18% year over year. Operational Update Cost of sales increased 14% year over year to $2,054 million during the first quarter. Gross profit increased 11% year over year to $631 million during the reported quarter. The gross margin came in at 23.4% compared with the prior-year quarter’s 23.9%. Selling, general and administrative expenses came in at $271 million compared with the year-ago quarter’s $261 million. Adjusted income from operations was up 24% year over year to $243 million. Consequently, the operating margin came in at 9% compared with the year-earlier quarter’s 8%. AGCO Corporation Price, Consensus and EPS Surprise AGCO Corporation price-consensus-eps-surprise-chart \| AGCO Corporation Quote Segment Performance Sales in the North America segment were up 15% year over year to $701 million during the January-March period. The segment reported an operating income of $55 million compared with the prior-year quarter’s $75 million. Sales in the South America segment increased 48% year over year to $356 million. The segment reported an operating profit of $46 million compared with the prior-year quarter’s $16 million. The EME (Europe/Middle East) segment’s sales came in at $1,403 million compared with the $1,327 million reported in the year-ago period. The EME’s operating income came in at $162 million compared with the year-ago quarter’s income of $144 million. Sales in the Asia/Pacific segment were up 13% year on year to $225 million. The segment registered an operating profit of $34 million compared with the year-ago quarter’s $21 million. Financial Update AGCO Corporation reported cash and cash equivalents of $656 million at the end of the first quarter, down from $889 million at the 2021-end. The company utilized $577 million cash in operating activities in the first quarter compared with $315 million in the prior-year quarter. Guidance AGCO Corporation expects net sales for 2022 between $12.5 billion and $12.7 billion, suggesting increased sales volumes and pricing, partly offset by the negative impact of foreign currency translation. Gross and operating margins are expected to be higher than the 2021 levels, owing to higher sales and production volumes as well as the company’s pricing actions to mitigate material and labor cost inflation. The improved profitability is likely to support incremental investments in engineering and other technology to advance AGCO’s precision agriculture and digital initiatives. Considering these, management projects EPS for the current year is expected to be between $11.70 and $11.90. Price Performance AGCO Corporation’s shares have declined 14.3% in the past year compared with the industry’s loss of 1.6%. Image Source: Zacks Investment Research Zacks Rank and Stocks to Consider AGCO Corporation currently carries a Zacks Rank #3 (Hold). Some better-ranked stocks in the Industrial Products sector are Alcoa AA, Packaging Corporation of America PKG and Graphic Packaging Holding Company GPK. All of these stocks flaunt a Zacks Rank #1 (Strong Buy). You can see the complete list of today’s Zacks #1 Rank stocks here. Alcoa has a projected earnings growth rate of 107% for the current year. The Zacks Consensus Estimate for 2022 earnings has moved north by 76% in the past 60 days. Alcoa delivered a trailing four-quarter earnings surprise of 17.4%, on average. Alcoa’s shares have surged 69.3% in the past year. Packaging Corporation has an expected earnings growth rate of 16.2% for 2022. The Zacks Consensus Estimate for the current year’s earnings has moved up 4.2% in the past 60 days. PKG has a trailing four-quarter earnings surprise of 19.6%, on average. Packaging Corporation’s shares have gained 5.4% in the past year. Graphic Packaging has an estimated earnings growth rate of 86.8% for the current year. In the past 60 days, the Zacks Consensus Estimate for current-year earnings has been revised upward by 7.6%. Graphic Packaging pulled off a trailing four-quarter earnings surprise of 7.2%, on average. The company’s shares have appreciated 14.8% in a year’s time. 5 Stocks Set to Double Each was handpicked by a Zacks expert as the #1 favorite stock to gain +100% or more in 2021. Previous recommendations have soared +143.0%, +175.9%, +498.3% and +673.0%. Most of the stocks in this report are flying under Wall Street radar, which provides a great opportunity to get in on the ground floor. Today, See These 5 Potential Home Runs >> Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report Alcoa (AA): Free Stock Analysis Report AGCO Corporation (AGCO): Free Stock Analysis Report Packaging Corporation of America (PKG): Free Stock Analysis Report Graphic Packaging Holding Company (GPK): Free Stock Analysis Report To read this article on Zacks.com click here. Zacks Investment Research The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
2022-05-04 00:00:00+00:00	AA	Is iShares MSCI USA SmallCap Multifactor ETF (SMLF) a Strong ETF Right Now?	Launched on 04/28/2015, the iShares MSCI USA SmallCap Multifactor ETF (SMLF) is a smart beta exchange traded fund offering broad exposure to the Style Box - Small Cap Blend category of the market. What Are Smart Beta ETFs? Market cap weighted indexes were created to reflect the market, or a specific segment of the market, and the ETF industry has traditionally been dominated by products based on this strategy. Because market cap weighted indexes provide a low-cost, convenient, and transparent way of replicating market returns, they work well for investors who believe in market efficiency. If you're the kind of investor who would rather try and beat the market through good stock selection, then smart beta funds are your best choice; this fund class is known for tracking non-cap weighted strategies. Based on specific fundamental characteristics, or a combination of such, these indexes attempt to pick stocks that have a better chance of risk-return performance. The smart beta space gives investors many different choices, from equal-weighting, one of the simplest strategies, to more complicated ones like fundamental and volatility/momentum based weighting. However, not all of these methodologies have been able to deliver remarkable returns. Fund Sponsor & Index Because the fund has amassed over $986.39 million, this makes it one of the larger ETFs in the Style Box - Small Cap Blend. SMLF is managed by Blackrock. Before fees and expenses, this particular fund seeks to match the performance of the MSCI USA Small Cap Diversified Multiple-Factor Index. The MSCI USA Small Cap Diversified Multiple-Factor Index is designed to select equity securities from MSCI USA Small Cap Index that have high exposure to four investment style factors: value, quality, momentum and low size. Cost & Other Expenses When considering an ETF's total return, expense ratios are an important factor. And, cheaper funds can significantly outperform their more expensive cousins in the long term if all other factors remain equal. Operating expenses on an annual basis are 0.30% for this ETF, which makes it on par with most peer products in the space. The fund has a 12-month trailing dividend yield of 1.16%. Sector Exposure and Top Holdings Even though ETFs offer diversified exposure that minimizes single stock risk, investors should also look at the actual holdings inside the fund. Luckily, most ETFs are very transparent products that disclose their holdings on a daily basis. This ETF has heaviest allocation in the Healthcare sector - about 17.20% of the portfolio. Information Technology and Consumer Discretionary round out the top three. When you look at individual holdings, Marathon Oil Corp (MRO) accounts for about 1.81% of the fund's total assets, followed by Alcoa Corp (AA) and Jones Lang Lasalle Inc (JLL). Its top 10 holdings account for approximately 11.72% of SMLF's total assets under management. Performance and Risk Year-to-date, the iShares MSCI USA SmallCap Multifactor ETF has lost about -9.27% so far, and is down about -2.88% over the last 12 months (as of 05/04/2022). SMLF has traded between $50.87 and $59.93 in this past 52-week period. The ETF has a beta of 1.07 and standard deviation of 27.51% for the trailing three-year period, making it a high risk choice in the space. With about 501 holdings, it effectively diversifies company-specific risk. Alternatives IShares MSCI USA SmallCap Multifactor ETF is a reasonable option for investors seeking to outperform the Style Box - Small Cap Blend segment of the market. However, there are other ETFs in the space which investors could consider. IShares Russell 2000 ETF (IWM) tracks Russell 2000 Index and the iShares Core S&P SmallCap ETF (IJR) tracks S&P SmallCap 600 Index. IShares Russell 2000 ETF has $55.06 billion in assets, iShares Core S&P SmallCap ETF has $67.22 billion. IWM has an expense ratio of 0.19% and IJR charges 0.06%. Investors looking for cheaper and lower-risk options should consider traditional market cap weighted ETFs that aim to match the returns of the Style Box - Small Cap Blend. Bottom Line To learn more about this product and other ETFs, screen for products that match your investment objectives and read articles on latest developments in the ETF investing universe, please visit Zacks ETF Center. Want key ETF info delivered straight to your inbox? Zacks’ free Fund Newsletter will brief you on top news and analysis, as well as top-performing ETFs, each week. Get it free >> Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report iShares MSCI USA SmallCap Multifactor ETF (SMLF): ETF Research Reports Marathon Oil Corporation (MRO): Free Stock Analysis Report Alcoa (AA): Free Stock Analysis Report Jones Lang LaSalle Incorporated (JLL): Free Stock Analysis Report iShares Russell 2000 ETF (IWM): ETF Research Reports iShares Core S&P SmallCap ETF (IJR): ETF Research Reports To read this article on Zacks.com click here. The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
2022-05-04 00:00:00+00:00	AA	Amcor (AMCR) Q3 Earnings Beat Estimates, Raises FY22 View	Amcor Plc AMCR reported third-quarter fiscal 2022 (ended Mar 30, 2022) adjusted earnings per share of 21 cents, which beat the Zacks Consensus Estimate of 20 cents. The bottom line improved 15% year over year from 18 cents reported in the prior-year quarter. Including special items, the company reported net earnings per share of 18 cents, up 3% from the prior-year quarter. Total revenues improved 16% year over year to $3,708 million in the reported quarter and surpassed the Zacks Consensus Estimate of $3,560 million. Amcor PLC Price, Consensus and EPS Surprise Amcor PLC price-consensus-eps-surprise-chart \| Amcor PLC Quote Cost and Margins Cost of sales increased 18% year over year to $2,977 million. Gross profit rose 7% year over year to $731 million. Gross margin was 19.7%, reflecting a contraction of 160 basis points from the prior-year quarter. SG&A expenses inched up 0.5% year over year to $326 million. Adjusted operating income was $427 million in the quarter, up 6% from the $402 million in the prior-year quarter. Adjusted operating margin was 11.5% compared with 12.5% in the prior-year quarter. Adjusted EBITDA in the quarter was $531 million compared with $507 million in the prior-year quarter. Financial Updates As of Mar 30, 2022, Amcor had $1,077 million of cash and cash equivalents compared with $850 million as of Jun 30, 2021. The company generated $589 million of cash in operating activities in the first nine-month period in fiscal 2022 compared with $617 million in the prior-year period. Adjusted free cash flow was $263 million in the first nine-month period in fiscal 2022 compared with $360 million in the last-year period. As of Mar 31, 2022, Amcor’s net debt totaled $6.17 billion, up from $5.4 billion as of Jun 30, 2021. Amcor repurchased 36 million shares for $423 million in nine months ended Mar 31, 2022. It plans to spend $600 million on share repurchases in fiscal 2022. Fiscal 2022 Guidance Raised Amcor expects adjusted constant currency earnings per share growth of approximately 9.5% to 11% in fiscal 2022, higher than the 7-11% projected earlier. Earnings per share is expected to range between 79.5 cents and 81.0 cents. This is higher than the earlier provided guidance of 79 cents to 81 cents per share. The company projects adjusted free cash flow of around $1.1 billion. Share Price Performance Image Source: Zacks Investment Research Over the past year, Amcor’s shares have fallen 3.7%, compared with the industry’s decline of 2.0%. Zacks Rank & Stocks to Consider Amcor currently carries a Zacks Rank #4 (Sell). Some better-ranked stocks in the Industrial Products sector are Alcoa AA, Packaging Corporation of America PKG and Graphic Packaging Holding Company GPK. While AA and PKG flaunt a Zacks Rank #1 (Strong Buy), GEF carries a Zacks Rank #2 (Buy). You can see the complete list of today’s Zacks #1 Rank stocks here. Alcoa has a projected earnings growth rate of 107% for the current year. The Zacks Consensus Estimate for 2022 earnings has moved north by 76% in the past 60 days. Alcoa has a trailing four-quarter earnings surprise of 17.4%, on average. AA’s shares have surged 65% in the past year. Packaging Corporation has an expected earnings growth rate of 16.2% for 2022. The Zacks Consensus Estimate for the current year’s earnings has moved up 4.2% in the past 60 days. PKG has a trailing four-quarter earnings surprise of 19.6%, on average. Packaging Corporation’s shares have gained 6% in the past year. Graphic Packaging has an estimated earnings growth rate of 100% for fiscal 2022. In the past 60 days, the Zacks Consensus Estimate for current-year earnings has been revised upward by 6%. GPK pulled off a trailing four-quarter earnings surprise of 7.2%, on average. The company’s shares have appreciated 17% in a year’s time. 5 Stocks Set to Double Each was handpicked by a Zacks expert as the #1 favorite stock to gain +100% or more in 2021. Previous recommendations have soared +143.0%, +175.9%, +498.3% and +673.0%. Most of the stocks in this report are flying under Wall Street radar, which provides a great opportunity to get in on the ground floor. Today, See These 5 Potential Home Runs >> Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report Alcoa (AA): Free Stock Analysis Report Packaging Corporation of America (PKG): Free Stock Analysis Report Graphic Packaging Holding Company (GPK): Free Stock Analysis Report Amcor PLC (AMCR): Free Stock Analysis Report To read this article on Zacks.com click here. The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
2022-05-04 00:00:00+00:00	AA	Is Most-Watched Stock Alcoa (AA) Worth Betting on Now?	Alcoa (AA) is one of the stocks most watched by Zacks.com visitors lately. So, it might be a good idea to review some of the factors that might affect the near-term performance of the stock. Over the past month, shares of this bauxite, alumina and aluminum products company have returned -26.3%, compared to the Zacks S&P 500 composite's -8.1% change. During this period, the Zacks Metal Products - Distribution industry, which Alcoa falls in, has lost 11%. The key question now is: What could be the stock's future direction? Although media reports or rumors about a significant change in a company's business prospects usually cause its stock to trend and lead to an immediate price change, there are always certain fundamental factors that ultimately drive the buy-and-hold decision. Earnings Estimate Revisions Here at Zacks, we prioritize appraising the change in the projection of a company's future earnings over anything else. That's because we believe the present value of its future stream of earnings is what determines the fair value for its stock. We essentially look at how sell-side analysts covering the stock are revising their earnings estimates to reflect the impact of the latest business trends. And if earnings estimates go up for a company, the fair value for its stock goes up. A higher fair value than the current market price drives investors' interest in buying the stock, leading to its price moving higher. This is why empirical research shows a strong correlation between trends in earnings estimate revisions and near-term stock price movements. Alcoa is expected to post earnings of $3.74 per share for the current quarter, representing a year-over-year change of +151%. Over the last 30 days, the Zacks Consensus Estimate has changed +10.4%. The consensus earnings estimate of $13.82 for the current fiscal year indicates a year-over-year change of +102.3%. This estimate has changed +5.6% over the last 30 days. For the next fiscal year, the consensus earnings estimate of $10.99 indicates a change of -20.5% from what Alcoa is expected to report a year ago. Over the past month, the estimate has changed +114.8%. With an impressive externally audited track record, our proprietary stock rating tool -- the Zacks Rank -- is a more conclusive indicator of a stock's near-term price performance, as it effectively harnesses the power of earnings estimate revisions. The size of the recent change in the consensus estimate, along with three other factors related to earnings estimates, has resulted in a Zacks Rank #1 (Strong Buy) for Alcoa. The chart below shows the evolution of the company's forward 12-month consensus EPS estimate: 12 Month EPS Projected Revenue Growth While earnings growth is arguably the most superior indicator of a company's financial health, nothing happens as such if a business isn't able to grow its revenues. After all, it's nearly impossible for a company to increase its earnings for an extended period without increasing its revenues. So, it's important to know a company's potential revenue growth. For Alcoa, the consensus sales estimate for the current quarter of $3.78 billion indicates a year-over-year change of +33.4%. For the current and next fiscal years, $14.78 billion and $14.58 billion estimates indicate +21.6% and -1.3% changes, respectively. Last Reported Results and Surprise History Alcoa reported revenues of $3.29 billion in the last reported quarter, representing a year-over-year change of +14.7%. EPS of $3.06 for the same period compares with $0.79 a year ago. Compared to the Zacks Consensus Estimate of $3.5 billion, the reported revenues represent a surprise of -5.8%. The EPS surprise was +2.34%. The company beat consensus EPS estimates in each of the trailing four quarters. The company topped consensus revenue estimates three times over this period. Valuation Without considering a stock's valuation, no investment decision can be efficient. In predicting a stock's future price performance, it's crucial to determine whether its current price correctly reflects the intrinsic value of the underlying business and the company's growth prospects. While comparing the current values of a company's valuation multiples, such as price-to-earnings (P/E), price-to-sales (P/S) and price-to-cash flow (P/CF), with its own historical values helps determine whether its stock is fairly valued, overvalued, or undervalued, comparing the company relative to its peers on these parameters gives a good sense of the reasonability of the stock's price. The Zacks Value Style Score (part of the Zacks Style Scores system), which pays close attention to both traditional and unconventional valuation metrics to grade stocks from A to F (an An is better than a B; a B is better than a C; and so on), is pretty helpful in identifying whether a stock is overvalued, rightly valued, or temporarily undervalued. Alcoa is graded B on this front, indicating that it is trading at a discount to its peers. Click here to see the values of some of the valuation metrics that have driven this grade. Conclusion The facts discussed here and much other information on Zacks.com might help determine whether or not it's worthwhile paying attention to the market buzz about Alcoa. However, its Zacks Rank #1 does suggest that it may outperform the broader market in the near term. 5 Stocks Set to Double Each was handpicked by a Zacks expert as the #1 favorite stock to gain +100% or more in 2021. Previous recommendations have soared +143.0%, +175.9%, +498.3% and +673.0%. Most of the stocks in this report are flying under Wall Street radar, which provides a great opportunity to get in on the ground floor. Today, See These 5 Potential Home Runs >> Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report Alcoa (AA): Free Stock Analysis Report To read this article on Zacks.com click here. Zacks Investment Research The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
2022-05-03 00:00:00+00:00	AA	Sealed Air (SEE) Q1 Earnings Top Estimates, Raises FY22 View	Sealed Air Corporation SEE reported first-quarter 2022 adjusted earnings per share of $1.12, which surpassed the Zacks Consensus Estimate of 92 cents. The bottom line figure improved 43.6% year over year on favorable price/cost spread and productivity improvements. Including special items, the company delivered net earnings per share of $1.00 compared with the prior-year quarter’s 68 cents. Total revenues were up 12% year over year to $1.42 million in the reported quarter. Sales in Americas surged 18% in the quarter followed by a 4% growth in EMEA. Meanwhile, sales in APAC were down 1%. Currency had an unfavorable impact of 3%, while price had a favorable impact of 16%. Volumes dipped 1%. The top line beat the Zacks Consensus Estimate of $1.39 billion. Sealed Air Corporation Price, Consensus and EPS Surprise Sealed Air Corporation price-consensus-eps-surprise-chart \| Sealed Air Corporation Quote Cost and Margins Cost of sales climbed 9% year over year to $941 million. Gross profit was $477 million, which marked a 19% improvement from the year-ago quarter’s $401 million. Gross margin contracted to 33.6% from the prior-year quarter’s 31.7%. The SG&A expenses increased 8.5% from the last-year quarter to $205 million. Adjusted earnings before interest, taxes, depreciation and amortization (EBITDA) was around $327 million in the quarter, which increased 22% from the prior-year period. Adjusted EBITDA margin was 23.1% compared with the prior-year quarter’s 21.2%, courtesy of favorable price/cost spread and productivity improvements, partially negated by labor and non-material inflation. Segment Performance Food: Net sales increased 15% year over year to $808 million. The segment reported a 1.5% increase in volumes across all regions, primarily aided by food service recovery. Adjusted EBITDA was $200 million, up 28% from the last year’s quarter on positive price/cost spread and productivity improvements. Higher labor and non-material cost inflation somewhat offset these gains. Protective: The segment reported net sales of $610 million during the quarter under review, up 8% from the prior-year quarter. The divestiture of Reflectix and currency fluctuation had an unfavorable impact of 2% each. The segment’s adjusted EBITDA increased 16% year over year to $127 million, driven by favorable price/cost spread, partially offset by labor and non-material inflation. Financial Updates Cash flow from operating activities was $48 million in the first quarter of 2022 compared with the prior-year quarter’s $80 million. The company paid cash dividends of $31 million in the quarter under review and repurchased shares for $200 million. As of Mar 31, 2022, Sealed Air’s net debt was $3.4 billion, up from $3.1 billion as of Dec 31, 2021. As of the end of the first quarter of 2022, the company had $1.4 billion of liquidity available, which comprised $278 million in cash and $1.14 billion of undrawn, committed credit facilities. 2022 Guidance For 2022, Sealed Air expects net sales between $5.85 billion and $6.05 billion, compared with the prior expectation of $5.8 billion to $6.0 billion. It factors in an unfavorable currency impact of approximately 2% and an unfavorable divestiture impact of approximately 1%. The company anticipates adjusted EBITDA between $1.22 billion to $1.25 billion, higher than the previously provided range of $1.20 billion to $1.24 billion. Adjusted earnings per share is now forecast in the band of $4.05 to $4.20 compared with the previous guidance of $3.95 to $4.15. Sealed Air projects free cash flow to be $510-$550 million for the ongoing year. Share Price Performance Image Source: Zacks Investment Research In a year's time, Sealed Air’s shares have gained 28.4%, compared with the industry’s growth of 0.6%. Zacks Rank and Stocks to Consider Sealed Air currently carries a Zacks Rank #3 (Hold). Some better-ranked stocks in the Industrial Products sector are Alcoa AA, Packaging Corporation of America PKG and Graphic Packaging Holding Company GPK. While AA and PKG flaunt a Zacks Rank #1 (Strong Buy), GEF carries a Zacks Rank #2 (Buy). You can see the complete list of today’s Zacks #1 Rank stocks here. Alcoa has a projected earnings growth rate of 107% for the current year. The Zacks Consensus Estimate for 2022 earnings has moved north by 76% in the past 60 days. Alcoa has a trailing four-quarter earnings surprise of 17.4%, on average. Alcoa’s shares have soared 81% in the past year. Packaging Corporation has an expected earnings growth rate of 16.2% for 2022. The Zacks Consensus Estimate for the current year’s earnings has moved up 4.2% in the past 60 days. PKG has a trailing four-quarter earnings surprise of 19.6%, on average. Packaging Corporation’s shares have gained 9.7% in the past year. Graphic Packaging has an estimated earnings growth rate of 100% for fiscal 2022. In the past 60 days, the Zacks Consensus Estimate for current-year earnings has been revised upward by 6%. GPK pulled off a trailing four-quarter earnings surprise of 7.2%, on average. The company’s shares have appreciated 15% in a year’s time. Zacks Names "Single Best Pick to Double" From thousands of stocks, 5 Zacks experts each have chosen their favorite to skyrocket +100% or more in months to come. From those 5, Director of Research Sheraz Mian hand-picks one to have the most explosive upside of all. It’s a little-known chemical company that’s up 65% over last year, yet still dirt cheap. With unrelenting demand, soaring 2022 earnings estimates, and $1.5 billion for repurchasing shares, retail investors could jump in at any time. This company could rival or surpass other recent Zacks’ Stocks Set to Double like Boston Beer Company which shot up +143.0% in little more than 9 months and NVIDIA which boomed +175.9% in one year. Free: See Our Top Stock and 4 Runners Up >> Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report Alcoa (AA): Free Stock Analysis Report Sealed Air Corporation (SEE): Free Stock Analysis Report Packaging Corporation of America (PKG): Free Stock Analysis Report Graphic Packaging Holding Company (GPK): Free Stock Analysis Report To read this article on Zacks.com click here. Zacks Investment Research The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
2022-05-03 00:00:00+00:00	AA	Should SPDR S&P MidCap 400 ETF (MDY) Be on Your Investing Radar?	Looking for broad exposure to the Mid Cap Blend segment of the US equity market? You should consider the SPDR S&P MidCap 400 ETF (MDY), a passively managed exchange traded fund launched on 05/04/1995. The fund is sponsored by State Street Global Advisors. It has amassed assets over $18.07 billion, making it one of the larger ETFs attempting to match the Mid Cap Blend segment of the US equity market. Why Mid Cap Blend Mid cap companies have market capitalization between $2 billion and $10 billion. They usually have higher growth prospects than large cap companies and are less volatile than small cap companies. Thus, companies that fall under this category provide a stable and growth-heavy investment. Typically holding a combination of both growth and value stocks, blend ETFs also demonstrate qualities seen in value and growth investments. Costs Cost is an important factor in selecting the right ETF, and cheaper funds can significantly outperform their more expensive counterparts if all other fundamentals are the same. Annual operating expenses for this ETF are 0.23%, putting it on par with most peer products in the space. It has a 12-month trailing dividend yield of 1.14%. Sector Exposure and Top Holdings ETFs offer a diversified exposure and thus minimize single stock risk but it is still important to delve into a fund's holdings before investing. Most ETFs are very transparent products and many disclose their holdings on a daily basis. This ETF has heaviest allocation to the Industrials sector--about 18.20% of the portfolio. Financials and Consumer Discretionary round out the top three. Looking at individual holdings, Camden Property Trust (CPT) accounts for about 0.74% of total assets, followed by Targa Resources Corp. (TRGP) and Alcoa Corporation (AA). The top 10 holdings account for about 6.1% of total assets under management. Performance and Risk MDY seeks to match the performance of the S&P MidCap 400 Index before fees and expenses. The S&P MidCap 400 Index is composed of 400 selected stocks listed on national stock exchanges, and spans a broad range of major industry groups. The ETF has lost about -11.43% so far this year and is down about -6.58% in the last one year (as of 05/03/2022). In the past 52-week period, it has traded between $455.83 and $531.03. The ETF has a beta of 1.12 and standard deviation of 28% for the trailing three-year period, making it a medium risk choice in the space. With about 401 holdings, it effectively diversifies company-specific risk. Alternatives SPDR S&P MidCap 400 ETF carries a Zacks ETF Rank of 3 (Hold), which is based on expected asset class return, expense ratio, and momentum, among other factors. Thus, MDY is a good option for those seeking exposure to the Style Box - Mid Cap Blend area of the market. Investors might also want to consider some other ETF options in the space. The Vanguard MidCap ETF (VO) and the iShares Core S&P MidCap ETF (IJH) track a similar index. While Vanguard MidCap ETF has $50.49 billion in assets, iShares Core S&P MidCap ETF has $61.70 billion. VO has an expense ratio of 0.04% and IJH charges 0.05%. Bottom-Line An increasingly popular option among retail and institutional investors, passively managed ETFs offer low costs, transparency, flexibility, and tax efficiency; they are also excellent vehicles for long term investors. To learn more about this product and other ETFs, screen for products that match your investment objectives and read articles on latest developments in the ETF investing universe, please visit Zacks ETF Center. Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report SPDR S&P MidCap 400 ETF (MDY): ETF Research Reports Alcoa (AA): Free Stock Analysis Report Camden Property Trust (CPT): Free Stock Analysis Report Targa Resources, Inc. (TRGP): Free Stock Analysis Report iShares Core S&P MidCap ETF (IJH): ETF Research Reports Vanguard MidCap ETF (VO): ETF Research Reports To read this article on Zacks.com click here. Zacks Investment Research The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
2022-05-03 00:00:00+00:00	AA	3 High Beta Stocks that Could Rocket When the Market Rallies	InvestorPlace - Stock Market News, Stock Advice & Trading Tips High beta stocks move quicker than the market so in a broad rebound they’ll improve fast. AMD (AMD) is very cheap right now depending on who you believe. Albemarle (ALB) is expected to grow revenues by 33% which gives it massive potential when EV stocks return. Alcoa (AA) is an aluminum producer that might not be fairly valued as some have suggested. Source: Shutterstock Beta measures the volatility of a given stock relative to that of the broader market, usually measured by the S&P 500. In other words, it tells investors whether a given stock is volatile or not. Market beta is always 1. A stock with a beta higher than 1 is said to be highly volatile. That means that it moves quicker than the market. A stock with a beta of 1.5 will move up or down 50% quicker than the market. The same is true of stocks with a beta lower than 1 — such stocks move up or down more slowly than the market. However, the markets aren’t performing particularly well in 2022. The S&P 500 has dropped from 4,796.56 on January 3rd to around 4,280 currently. So some investors are looking to find stocks with high beta in an attempt to time the market. Such investors believe that once the markets reach an inflection point, those high beta stocks will rise more rapidly than the broader. Gains will follow and those investors will be in prime position. 7 Warren Buffett Stocks to Buy in May and Hold for Years That raises the question: which high beta stocks are worth investing in? AMD Advanced Micro Devices $90.45 ALB Albemarle $195.17 AA Alcoa $65.30 AMD (AMD) Source: JHVEPhoto / Shutterstock.com Advanced Micro Devices (NASDAQ:AMD) stock carries a five-year monthly beta of 1.81 according to Yahoo! Finance. That high beta measure has meant that AMD stock has fallen precipitously along with the S&P 500 year-to-date. In fact, it has fallen from a price just above $150 to begin 2022, to $88 currently. As my colleague Will Ashworth recently wrote, that poor performance combined with an upcoming earnings report that some speculate could be very good, means AMD stock could rise quickly. He speculates that if AMD performs well it should quickly rise to $100 price levels. On top of that, the stock carries an average target price above $145. Over the last three months, the analysts that cover the stock have given it an increasing share of ‘buy’ ratings. One of those analysts, Raymond James Financial’s (NYSE:RJF) Chris Caso is particularly optimistic. He believes that Advanced Micro Devices is in better position than its competitors because it has less cyclical exposure and stronger secular catalysts. So, when its stock bounces back, it is expected to bounce back particularly quickly. Albemarle (ALB) Source: IgorGolovniov/Shutterstock.com For most of 2021, the investment proposition for Albemarle (NYSE:ALB) stock was related to its position as a lithium producer. Lithium is an important component of electric vehicle batteries. So, Albemarle garnered lots of headlines as EV stock valuations reached record highs. However, EV stocks underwent a strong reversal as rising inflation rates took the wind out of the sails of growth stocks beginning in late 2021. That decline hasn’t spared Albemarle, which is dropped from $235 to under $200 — but here’s the rub: Albemarle carries a five-year monthly beta of 1.56. That means that once EV stocks come back into fashion Albemarle should come back into fashion too, and quicker. And there’s plenty of reason to believe Albemarle will return. In 2021 the firm recorded $3.3 billion in revenues. In 2022, the firm is expected to make somewhere in the range of $4.4 billion in sales according to Yahoo! Finance. 7 Long-Term Stocks to Buy for a Robust Retirement When the rebound occurs, investors will be happy because there’s plenty of upside in ALB stock. In fact, the high analyst target price for ALB stock is $307. It currently trades for under $195 and carries an average target stock price above $248. Alcoa Corp (AA) Source: Daniel J. Macy / Shutterstock.com Alcoa Corp (NYSE:AA) is a company that produces aluminum. Like all companies, Alcoa Corp has had to deal with increasing costs of inputs. Those increasing costs have arguably been well handled by the firm. In its most recent earnings report, Alcoa reported earnings per share of $3.06 where Wall Street was expecting $2.88. That implies that Alcoa was able to control the costs leading to better than expected earnings per share. However, Alcoa fell short of revenue expectations posting $3.3 billion in sales where $3.5 billion was anticipated. That revenue miss caused AA stock to fall off a cliff, dropping from $86 down to $67 in a matter of days. But Alcoa can bounce back quickly. For one, Alcoa carries a five-year monthly beta of 2.3. That means it can rise roughly 130% quicker than the broad market. But in order to believe that Alcoa will actually rebound, investors need to be optimistic about two things; first, the precipitous drop in AA shares was overdone. Second, prices for inputs like the aluminum that Alcoa produces aren’t cooling. Those prices are at lows for the prevailing few months, however. That means right now might not be the best time to invest in Alcoa. However, if there is any signal that aluminum prices could spike, Alcoa will rise very fast with its 2.3 beta. On the date of publication, Alex Sirois did not have (either directly or indirectly) any positions in the securities mentioned in this article. The opinions expressed in this article are those of the writer, subject to the InvestorPlace.com Publishing Guidelines. The post 3 High Beta Stocks that Could Rocket When the Market Rallies appeared first on InvestorPlace. The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
2022-05-03 00:00:00+00:00	AA	Rockwell Automation (ROK) Q2 Earnings & Sales Miss Estimates	Rockwell Automation Inc. ROK reported adjusted earnings per share (EPS) of $1.66 in second-quarter fiscal 2022 (ended Mar 31, 2022), missing the Zacks Consensus Estimate of $2.27. Compared with earnings of $2.41 reported in the year-ago quarter, the bottom line declined 31% year over year due to higher input costs and higher investment expenses, partly offset by lower incentive compensation and improved price realization. Including other one-time items, earnings came in at 46 cents per share in the fiscal second quarter compared with the prior-year quarter’s $3.54 per share. Total revenues were $1,808 million, up 2% from the prior-year quarter. The top line missed the Zacks Consensus Estimate of $1,947 million. Organic sales in the quarter were up 1.3%. Acquisitions contributed 2.3% to sales growth, while currency translation had a negative impact of 1.8%. Total orders were up 37% year on year. Operational Update Cost of sales increased 13% year over year to around $1,144 million. Gross profit fell 13% year over year to $664 million. Selling, general and administrative expenses moved up 1.7% year over year to $429 million. Consolidated segment operating income totaled $283 million, down 27% from the prior-year quarter. The total segment operating margin was 15.7% in the fiscal second quarter, lower than the prior-year period’s 22%. Rockwell Automation, Inc. Price, Consensus and EPS Surprise Rockwell Automation, Inc. price-consensus-eps-surprise-chart \| Rockwell Automation, Inc. Quote Segment Results Intelligent Devices: Net sales amounted to $809 million during the fiscal second quarter, down 5% year over year. Segment operating earnings totaled $118 million compared with the year-earlier quarter’s $202 million. Segment operating margin decreased to 14.6% in the quarter compared with the year-ago quarter’s 23.8%. Software & Control: Net sales climbed 6.5% year over year to $535 million in the reported quarter. Segment operating earnings dropped 1.4% year over year to $132 million. Segment operating margin was 24.6% compared with 29.8% in the year-earlier quarter. Lifecycle Services: Net sales for the segment were $465 million in the reported quarter, up 9.7% year over year. Segment operating earnings totaled $33.7 million compared with the prior-year quarter’s $38.3 million. Segment operating margin was 7.3% in the reported quarter compared with the year-earlier quarter’s 9%. Financials As of the end of the second quarter of fiscal 2022, cash and cash equivalents were around $443 million compared with $662 million as of the end of fiscal 2021. Total debt was around $4.1 billion at the end of the fiscal second quarter compared with $3.9 billion at the fiscal 2021-end. Cash flow from operations as of the six months period ended on Mar 31, 2022, was $79 million compared with the prior-year quarter’s $595 million. Return on invested capital was 13.2% as of Mar 31, 2022. During the quarter under review, there were no share repurchases. As of the end of the quarter, $503 million was available under the existing share-repurchase authorization. Recently, the company’s board authorized an additional $1 billion for share repurchase. Fiscal 2022 Guidance Reflecting strong demand and record backlog, Rockwell Automation expects reported sales growth at 11-15% for fiscal 2022. Organic sales growth is projected at 10-14%. Adjusted earnings per share guidance for fiscal 2022 is expected to be $9.20-$9.80. Share Price Performance In the past year, Rockwell Automation’s shares have declined 4.8% compared with the industry’s loss of 7.4%. Image Source: Zacks Investment Research Zacks Rank & Stocks to Consider Rockwell Automation currently carries a Zacks Rank #3 (Hold). Some better-ranked stocks in the Industrial Products sector are Alcoa AA, Packaging Corporation of America PKG and Titan International TWI. All of these stocks flaunt a Zacks Rank #1 (Strong Buy). You can see the complete list of today’s Zacks #1 Rank stocks here. Alcoa has a projected earnings growth rate of 107% for the current year. The Zacks Consensus Estimate for 2022 earnings has moved north by 76% in the past 60 days. Alcoa delivered a trailing four-quarter earnings surprise of 17.4% on average. Alcoa’s shares have surged 69.3% in the past year. Packaging Corporation has an expected earnings growth rate of 16.2% for 2022. The Zacks Consensus Estimate for the current year’s earnings has moved up 4.2% in the past 60 days. PKG has a trailing four-quarter earnings surprise of 19.6%, on average. Packaging Corporation’s shares have gained 5.4% in the past year. Titan International has an estimated earnings growth rate of 36.5% for fiscal 2022. In the past 60 days, the Zacks Consensus Estimate for current-year earnings has been revised upward by 20%. Titan International pulled off a trailing four-quarter earnings surprise of 56.4%, on average. The company’s shares have appreciated 23.3% in a year’s time. Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report Alcoa (AA): Free Stock Analysis Report Rockwell Automation, Inc. (ROK): Free Stock Analysis Report Packaging Corporation of America (PKG): Free Stock Analysis Report Titan International, Inc. (TWI): Free Stock Analysis Report To read this article on Zacks.com click here. The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
2022-05-02 00:00:00+00:00	AA	Alcoa (AA) is an Incredible Growth Stock: 3 Reasons Why	Growth investors focus on stocks that are seeing above-average financial growth, as this feature helps these securities garner the market's attention and deliver solid returns. But finding a great growth stock is not easy at all. That's because, these stocks usually carry above-average risk and volatility. In fact, betting on a stock for which the growth story is actually over or nearing its end could lead to significant loss. However, the task of finding cutting-edge growth stocks is made easy with the help of the Zacks Growth Style Score (part of the Zacks Style Scores system), which looks beyond the traditional growth attributes to analyze a company's real growth prospects. Alcoa (AA) is on the list of such stocks currently recommended by our proprietary system. In addition to a favorable Growth Score, it carries a top Zacks Rank. Studies have shown that stocks with the best growth features consistently outperform the market. And for stocks that have a combination of a Growth Score of A or B and a Zacks Rank #1 (Strong Buy) or 2 (Buy), returns are even better. While there are numerous reasons why the stock of this bauxite, alumina and aluminum products company is a great growth pick right now, we have highlighted three of the most important factors below: Earnings Growth Earnings growth is arguably the most important factor, as stocks exhibiting exceptionally surging profit levels tend to attract the attention of most investors. And for growth investors, double-digit earnings growth is definitely preferable, and often an indication of strong prospects (and stock price gains) for the company under consideration. While the historical EPS growth rate for Alcoa is 14.9%, investors should actually focus on the projected growth. The company's EPS is expected to grow 102.3% this year, crushing the industry average, which calls for EPS growth of 10.4%. Cash Flow Growth While cash is the lifeblood of any business, higher-than-average cash flow growth is more important and beneficial for growth-oriented companies than for mature companies. That's because, growth in cash flow enables these companies to expand their businesses without depending on expensive outside funds. Right now, year-over-year cash flow growth for Alcoa is 347.7%, which is higher than many of its peers. In fact, the rate compares to the industry average of 63.5%. While investors should actually consider the current cash flow growth, it's worth taking a look at the historical rate too for putting the current reading into proper perspective. The company's annualized cash flow growth rate has been 31.9% over the past 3-5 years versus the industry average of 27.6%. Promising Earnings Estimate Revisions Beyond the metrics outlined above, investors should consider the trend in earnings estimate revisions. A positive trend is a plus here. Empirical research shows that there is a strong correlation between trends in earnings estimate revisions and near-term stock price movements. The current-year earnings estimates for Alcoa have been revising upward. The Zacks Consensus Estimate for the current year has surged 5.6% over the past month. Bottom Line While the overall earnings estimate revisions have made Alcoa a Zacks Rank #1 stock, it has earned itself a Growth Score of A based on a number of factors, including the ones discussed above. You can see the complete list of today's Zacks #1 Rank (Strong Buy) stocks here. This combination positions Alcoa well for outperformance, so growth investors may want to bet on it. Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report Alcoa (AA): Free Stock Analysis Report To read this article on Zacks.com click here. The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
2022-05-02 00:00:00+00:00	AA	The Zacks Analyst Blog Highlights Tesla, Pool, Alcoa, Zebra Technologies and SVB Financial Group	For Immediate Release Chicago, IL – May 2, 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: Tesla Inc. TSLA, Pool Corp. POOL, Alcoa Corp. AA, Zebra Technologies Corp. ZBRA and SVB Financial Group SIVB. Here are highlights from Friday’s Analyst Blog: 5 Stocks to Buy at Lucrative Valuations After April's Mayhem We are on the verge of completing a highly disappointing April with just a day of trading left. Historically, April is considered a strong month on Wall Street. However, this year, market participants failed to find any direction owing to extreme volatility. Despite several come back attempts, major stock indexes are in red this month. Interestingly, April's meltdown has made several stocks highly attractive at their current valuations. Many of these stocks have a strong upside left for the rest of 2022. We have selected five from this space with a favorable Zacks Rank. These are — Tesla Inc., Pool Corp., Alcoa Corp., Zebra Technologies Corp. and SVB Financial Group. Markets Suffer a Blow in April U.S. stock markets have been reeling under severe volatility since the beginning of 2022. However, major stock indexes rebounded in March although the Fed hiked the benchmark interest rate by 25 basis points, which was in line with investors' expectations. Despite raising interest rate for the first time in three years, several measures of inflation have shown no signs of a downtrend and remained elevated at a 40-year high. Soaring inflation has compelled Fed Chairman Jerome Powell to say that the central bank will not hesitate to take harsher measurers in 2022. Fed's March FOMC minutes also indicated the same. Market participants are overwhelmingly expecting the Fed to hike interest rate by 50 basis points in both May and June FOMC and will start shrinking the size of its $9 trillion balance sheet starting from May. A more than hawkish Fed, the continuation of high inflationary pressure due to lingering global supply-chain disruptions, the prolonged war between Russia and Ukraine and the resurgence of COVID-19 infections in China and lockdown in several parts of that country have significantly shaken investors' confidence. Month to date, the three major indexes — the Dow, the S&P 500 and the Nasdaq Composite — have tumbled 2.2%, 5.4% and 9.5%, respectively. The Nasdaq Composite is currently in bear territory declining 20.6% from its recent high. The S&P 500 is in correction zone after falling 11% from its recent peak. The Dow is down 8.2% from its recent high. 5 Top Stocks at Attractive Valuation Wall Street's turmoil in April has made several large-cap (market capital > $10 billion) highly attractive at their current valuation. Buying these stocks on the dip should give good benefit going forward. We narrowed down our search to five such stocks that have strong upside left for the rest of 2022. These stocks have seen positive earnings estimate revisions in the last 30 days indicating that market is expecting these companies to do solid business in 2022. Each of our picks carries either a Zacks Rank #1 (Strong Buy) or 2 (Buy). You can see the complete list of today's Zacks #1 Rank stocks here. Tesla has acquired a substantial market share within the electric car segment. Increasing Model 3 delivery, which forms a significant chunk of TSLA's overall deliveries, is aiding its top line. Along with Model 3, Model Y is contributing to its revenues. The global auto industry is gradually moving toward electric vehicles. Tesla is expected to be the largest beneficiary of this trend. Despite the chip crisis, Tesla reported record deliveries of 310,048 units in first-quarter 2022. Additionally, TSLA's energy generation and storage revenues are growing, thanks to the positive reception of Megapack and Powerwall products. Zacks Rank #2 TSLA has an expected earnings growth rate of 66.1% for the current year. The Zacks Consensus Estimate for current-year earnings improved 13.6% over the last 7 days. Tesla is currently trading at a 29.4% discount to its 52-week high. Pool is the world's largest wholesale distributor of swimming pool supplies, equipment and related products. POOL is benefitting from the solid performance of base business, large market presence and strategic expansions through acquisitions. Solid demand across heaters, pumps, filters, lighting, automation and pool remodeling also benefited it. POOL remains optimistic on the back of products (such as automation and the connected pool), the continuation of the de-urbanization trends and the strengthening of the southern migration. Zacks Rank #2 POOL has an expected earnings growth rate of 20.8% for the current year. The Zacks Consensus Estimate for current-year earnings improved 4.4% over the last 7 days. POOL is currently trading at a 28.2% discount to its 52-week high. Alcoa produces and sells bauxite, alumina, and aluminum products in the United States, Spain, Australia, Brazil, Canada, and internationally. AA operates through three segments: Bauxite, Alumina, and Aluminum. Alcoa is engaged in bauxite mining operations and processes bauxite into alumina and sells it to customers who process it into industrial chemical products. AA offers primary aluminum in the form of alloy ingot or value-add ingot to customers that produce products for the transportation, building and construction, packaging, wire, and other industrial markets and flat-rolled aluminum sheets to customers that produce beverage and food cans. Zacks Rank #1 AA has an expected earnings growth rate of more than 100% for the current year. The Zacks Consensus Estimate for current-year earnings improved 8.8% over the last 30 days. Alcoa is currently trading at a 28.1% discount to its 52-week high. Zebra Technologies stands to benefit from a solid demand environment, coupled with investments in growth initiatives, in the quarters ahead. The growing popularity of ZBRA's Enterprise Asset Intelligence solutions is likely to be beneficial. Strong cash flow allows it to invest in organic growth, execute acquisitions and repurchase shares. For 2022, Zebra Technologies expects net sales to grow 3-7% year over year. Zacks Rank #2 ZBRA has an expected earnings growth rate of 7.2% for the current year. The Zacks Consensus Estimate for current-year earnings improved 0.2% over the last 30 days. Zebra Technologies is currently trading at a 37.7% discount to its 52-week high. SVB Financial is a diversified financial services company. Growth in loans and deposit balances, efforts to improve non-interest income (acquisition of MoffettNathanson) and global expansion strategy will likely keep supporting SIVB's financials. The acquisitions of Boston Private and the debt investment business of WestRiver Group are expected to be earnings accretive and will likely help SVB Financial further cement its foothold in the innovation economy. Zacks Rank #2 SIVB has an expected earnings growth rate of 6% for the current year. The Zacks Consensus Estimate for current-year earnings improved 14% over the last 7 days. SVB Financial is currently trading at a 32.5% discount to its 52-week high. 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 >> 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. Just Released: Zacks' 7 Best Stocks for Today Experts extracted 7 stocks from the list of 220 Zacks Rank #1 Strong Buys that has beaten the market more than 2X over with a stunning average gain of +25.4% per year. These 7 were selected because of their superior potential for immediate breakout. See these time-sensitive tickers now >> Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report Alcoa (AA): Free Stock Analysis Report Pool Corporation (POOL): Free Stock Analysis Report Tesla, Inc. (TSLA): Free Stock Analysis Report SVB Financial Group (SIVB): Free Stock Analysis Report Zebra Technologies Corporation (ZBRA): Free Stock Analysis Report To read this article on Zacks.com click here. Zacks Investment Research The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
2022-04-29 00:00:00+00:00	AA	5 Stocks to Buy At Lucrative Valuation After April Mayhem	We are on the verge of completing a highly disappointing April with just a day of trading left. Historically, April is considered a strong month on Wall Street. However, this year, market participants failed to find any direction owing to extreme volatility. Despite several come back attempts, major stock indexes are in red this month. Interestingly, April’s meltdown, has made several stocks highly attractive at their current valuation. Many of these stocks have a strong upside left for the rest of 2022. We have selected five from this space with a favorable Zacks Rank. These are — Tesla Inc. TSLA, Pool Corp. POOL, Alcoa Corp. AA, Zebra Technologies Corp. ZBRA and SVB Financial Group SIVB. Markets Suffer a Blow in April U.S. stock markets have been reeling under severe volatility since the beginning of 2022. However, major stock indexes rebounded in March although the Fed hiked the benchmark interest rate by 25 basis points, which was in line with investors’ expectations. Despite raising interest rate for the first time in three years, several measures of inflation have shown no signs of a downtrend and remained elevated at a 40-year high. Soaring inflation has compelled Fed Chairman Jerome Powell to say that the central bank will not hesitate to take harsher measurers in 2022. Fed’s March FOMC minutes also indicated the same. Market participants are overwhelmingly expecting the Fed to hike interest rate by 50 basis points in both May and June FOMC and will start shrinking the size of its $9 trillion balance sheet starting from May. A more than hawkish Fed, the continuation of high inflationary pressure due to lingering global supply-chain disruptions, the prolonged war between Russia and Ukraine and the resurgence of COVID-19 infections in China and lockdown in several parts of that country have significantly shaken investors’ confidence. Month to date, the three major indexes — the Dow, the S&P 500 and the Nasdaq Composite — have tumbled 2.2%, 5.4% and 9.5%, respectively. The Nasdaq Composite is currently in bear territory declining 20.6% from its recent high. The S&P 500 is in correction zone after falling 11% from its recent peak. The Dow is down 8.2% from its recent high. 5 Top Stocks at Attractive Valuation Wall Street’s turmoil in April has made several large-cap (market capital > $10 billion) highly attractive at their current valuation. Buying these stocks on the dip should give good benefit going forward. We narrowed down our search to five such stocks that have strong upside left for the rest of 2022. These stocks have seen positive earnings estimate revisions in the last 30 days indicating that market is expecting these companies to do solid business in 2022. Each of our picks carries either a Zacks Rank #1 (Strong Buy) or 2 (Buy). You can see the complete list of today’s Zacks #1 Rank stocks here. The chart below shows the price performance of our five picks in the past month. Image Source: Zacks Investment Research Tesla has acquired a substantial market share within the electric car segment. Increasing Model 3 delivery, which forms a significant chunk of TSLA’s overall deliveries, is aiding its top line. Along with Model 3, Model Y is contributing to its revenues. The global auto industry is gradually moving toward electric vehicles. Tesla is expected to be the largest beneficiary of this trend. Despite the chip crisis, Tesla reported record deliveries of 310,048 units in first-quarter 2022. Additionally, TSLA’s energy generation and storage revenues are growing, thanks to the positive reception of Megapack and Powerwall products. Zacks Rank #2 TSLA has an expected earnings growth rate of 66.1% for the current year. The Zacks Consensus Estimate for current-year earnings improved 13.6% over the last 7 days. Tesla is currently trading at a 29.4% discount to its 52-week high. Pool is the world's largest wholesale distributor of swimming pool supplies, equipment and related products. POOL is benefitting from the solid performance of base business, large market presence and strategic expansions through acquisitions. Solid demand across heaters, pumps, filters, lighting, automation and pool remodeling also benefitted it. POOL remains optimistic on the back of products (such as automation and the connected pool), the continuation of the de-urbanization trends and the strengthening of the southern migration. Zacks Rank #2 POOL has an expected earnings growth rate of 20.8% for the current year. The Zacks Consensus Estimate for current-year earnings improved 4.4% over the last 7 days. POOL is currently trading at a 28.2% discount to its 52-week high. Alcoa produces and sells bauxite, alumina, and aluminum products in the United States, Spain, Australia, Brazil, Canada, and internationally. AA operates through three segments: Bauxite, Alumina, and Aluminum. Alcoa is engaged in bauxite mining operations and processes bauxite into alumina and sells it to customers who process it into industrial chemical products. AA offers primary aluminum in the form of alloy ingot or value-add ingot to customers that produce products for the transportation, building and construction, packaging, wire, and other industrial markets and flat-rolled aluminum sheets to customers that produce beverage and food cans. Zacks Rank #1 AA has an expected earnings growth rate of more than 100% for the current year. The Zacks Consensus Estimate for current-year earnings improved 8.8% over the last 30 days. Alcoa is currently trading at a 28.1% discount to its 52-week high. Zebra Technologies stands to benefit from a solid demand environment, coupled with investments in growth initiatives, in the quarters ahead. The growing popularity of ZBRA’s Enterprise Asset Intelligence solutions is likely to be beneficial. Strong cash flow allows it to invest in organic growth, execute acquisitions and repurchase shares. For 2022, Zebra Technologies expects net sales to grow 3-7% year over year. Zacks Rank #2 ZBRA has an expected earnings growth rate of 7.2% for the current year. The Zacks Consensus Estimate for current-year earnings improved 0.2% over the last 30 days. Zebra Technologies is currently trading at a 37.7% discount to its 52-week high. SVB Financial is a diversified financial services company. Growth in loans and deposit balances, efforts to improve non-interest income (acquisition of MoffettNathanson) and global expansion strategy will likely keep supporting SIVB’s financials. The acquisitions of Boston Private and the debt investment business of WestRiver Group are expected to be earnings accretive and will likely help SVB Financial further cement its foothold in the innovation economy. Zacks Rank #2 SIVB has an expected earnings growth rate of 6% for the current year. The Zacks Consensus Estimate for current-year earnings improved 14% over the last 7 days. SVB Financial is currently trading at a 32.5% discount to its 52-week high. 7 Best Stocks for the Next 30 Days Just released: Experts distill 7 elite stocks from the current list of 220 Zacks Rank #1 Strong Buys. They deem these tickers "Most Likely for Early Price Pops." Since 1988, the full list has beaten the market more than 2X over with an average gain of +25.4% per year. So be sure to give these hand-picked 7 your immediate attention. See them now >> Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report Alcoa (AA): Free Stock Analysis Report Pool Corporation (POOL): Free Stock Analysis Report Tesla, Inc. (TSLA): Free Stock Analysis Report SVB Financial Group (SIVB): Free Stock Analysis Report Zebra Technologies Corporation (ZBRA): Free Stock Analysis Report To read this article on Zacks.com click here. The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
2022-04-29 00:00:00+00:00	AA	Stanley Black (SWK) Q1 Earnings Top Estimates, Revenues Miss	Stanley Black & Decker, Inc. SWK has reported mixed first-quarter 2022 results. The company’s earnings surpassed the Zacks Consensus Estimate by 25%, whereas sales lagged the same by 3.1%. In the reported quarter, the company’s adjusted earnings were $2.10 per share, surpassing the Zacks Consensus Estimate of $1.68. The bottom line decreased 32.9% from the year-ago quarter’s figure of $3.13. Lower volume, supply-chain restrictions and cost inflation played spoilsports in the quarter. Revenue Details In the quarter under review, the company’s net sales were $4,448 million, reflecting year-over-year growth of 19.5%. The results benefited 23% from acquired assets and 5% from favorable pricing. Foreign-currency translation had an adverse impact of 2%, and lower volume affected sales by 6% due to logistics issues and supply-chain restrictions. The company’s top line lagged the Zacks Consensus Estimate of $4,588 million. It reports net sales under two segments, namely Tools & Outdoor and Industrial. The segmental information is briefly discussed below: Revenues from Tools & Outdoor totaled $3,801.2 million, rising 24% year over year. Acquisitions (Excel and MTD) contributed 27% and pricing added 5% to sales growth, while foreign-currency translations lowered sales by 2%. Lower volumes had an adverse impact of 6%. Revenues from Industrial grossed $646.6 million, decreasing 2% year over year. The segment suffered 5% from lower volumes and 2% from forex woes. Effective pricing had a positive impact of 5%. Stanley Black & Decker, Inc. Price, Consensus and EPS Surprise Stanley Black & Decker, Inc. price-consensus-eps-surprise-chart \| Stanley Black & Decker, Inc. Quote Margin Profile In the reported quarter, Stanley Black’s cost of sales increased 34.7% year over year to $3,142.6 million. It represented 70.7% of the quarter’s net sales versus 62.7% in the year-ago quarter. The gross profit decreased 5.9% to $1,305.4 million. The gross margin decreased 800 basis points (bps) to 29.3%. Lower volumes, supply-chain issues and commodity inflation more than offset the positive impact of effective pricing. Selling, general and administrative expenses increased 33.5% year over year to $960.3 million. It represented 21.6% of net sales in the reported quarter versus 19.3% in the year-ago quarter. Operating profits decreased 48.4% to $345.1 million, whereas the margin declined 1,020 bps to 7.8% due to the adverse impacts of supply-chain woes and cost inflation. The adjusted tax rate in the reported quarter was 13.2%. Balance Sheet and Cash Flow Exiting the first quarter, Stanley Black had cash and cash equivalents of $165.8 million, up 16.5% from $142.3 million at the end of the last reported quarter. The long-term debt balance increased 23% sequentially to $5,355.5 million. In the first three months of 2022, net cash used in operating activities was $1,241.1 million compared with $157.8 million used in the year-ago period. Capital and software expenditures totaled $139.8 million, up from $88.3 million. Free cash outflow in the first three months of the year was $1,380.9 million compared with $246.1 million a year ago. During the first three months of 2022, Stanley Black spent $36.5 million net of cash acquired on business buyouts. It paid out dividends worth $116.3 million to its shareholders, up 5.6% from the year-ago period. Purchases of common stock for treasury were nil against $9.4 million in the year-ago period. Outlook For 2022, Stanley Black anticipates adjusted earnings per share of $9.50-$10.50 compared with $12.00-$12.50 guided previously. Total sales are expected to be up in the mid-twenties range year over year. Also, free cash flow is expected to be $1-$1.5 billion. Zacks Rank & Stocks to Consider The company currently carries a Zacks Rank #3 (Hold). Some better-ranked companies are discussed below. AZZ Inc. AZZ presently carries a Zacks Rank #1 (Strong Buy). You can see the complete list of today’s Zacks #1 Rank stocks here. Its earnings surprise for the last four quarters was 22.3%, on average. AZZ’s earnings estimates increased 12.6% for fiscal 2022 (ending February 2022) in the past 60 days. Its shares have lost 2.1% in the past three months. Alcoa Corporation AA presently sports a Zacks Rank #1. Its earnings surprise in the last four quarters was 11.5%, on average. In the past 60 days, AA’s earnings estimates have increased 72.1% for 2022. The stock has rallied 24.5% in the past three months. Ferguson plc FERG presently carries a Zacks Rank of 2 (Buy). FERG delivered a trailing four-quarter earnings surprise of 14.2%, on average. Earnings estimates of Ferguson have increased 7% for fiscal 2022 (ending July 2022) in the past 60 days. FERG’s shares have declined 19.7% in the past three months. Zacks Names "Single Best Pick to Double" From thousands of stocks, 5 Zacks experts each have chosen their favorite to skyrocket +100% or more in months to come. From those 5, Director of Research Sheraz Mian hand-picks one to have the most explosive upside of all. It’s a little-known chemical company that’s up 65% over last year, yet still dirt cheap. With unrelenting demand, soaring 2022 earnings estimates, and $1.5 billion for repurchasing shares, retail investors could jump in at any time. This company could rival or surpass other recent Zacks’ Stocks Set to Double like Boston Beer Company which shot up +143.0% in little more than 9 months and NVIDIA which boomed +175.9% in one year. Free: See Our Top Stock and 4 Runners Up >> Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report Alcoa (AA): Free Stock Analysis Report Stanley Black & Decker, Inc. (SWK): Free Stock Analysis Report AZZ Inc. (AZZ): Free Stock Analysis Report Wolseley PLC (FERG): Free Stock Analysis Report To read this article on Zacks.com click here. The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
2022-04-29 00:00:00+00:00	AA	Honeywell's (HON) Q1 Earnings & Revenues Beat Estimates	Honeywell International Inc. HON reported better-than-expected first-quarter 2022 results, wherein both earnings and revenues surpassed estimates. Earnings & Revenues Adjusted earnings came in at $1.91 per share, surpassing the Zacks Consensus Estimate of $1.86. The bottom line fell 0.5% year over year. Honeywell’s first-quarter revenues were $8,376 million, beating the consensus estimate of $8,350 million. The top line decreased 1% year over year on a reported basis. The decline was attributable to supply-chain constraints and a decrease in COVID mask sales. However, revenues increased 1% on an organic basis. Segmental Breakup Aerospace’s quarterly revenues were $2,749 million, up 4.4% year over year. Honeywell Building Technologies’ revenues increased 5.2% to $1,429 million. Performance Materials and Technologies’ revenues totaled $2,453 million, up 4.6%, while that for Safety and Productivity Solutions decreased 17.7% to $1,744 million. Honeywell International Inc. Price, Consensus and EPS Surprise Honeywell International Inc. price-consensus-eps-surprise-chart \| Honeywell International Inc. Quote Costs/Margins The company’s total cost of sales in the reported quarter was $5,674 million, down 0.6% year over year. Selling, general and administrative expenses were $1,431 million, up 15.8%. Interest expenses and other financial charges were $85 million compared with $90 million a year ago. Operating income in the first quarter was $1,271 million, down 15.8% on a year-over-year basis. The operating income margin was 15.2%, down 260 basis points. Balance Sheet/Cash Flow Exiting first-quarter 2022, Honeywell had cash and cash equivalents of $9,281 million compared with $10,959 million in the previous quarter. Long-term debt was $12,636 million, lower than $14,254 million recorded at the end of the previous quarter. In the first three months of 2022, the company generated $36 million in cash from operating activities compared with $978 million in the year-ago period. In the first three months of the year, capital expenditure was $183 million compared with $221 million incurred in the year-ago period. Free cash flow in the quarter was $50 million compared with $757 million in the year-ago period. Guidance Honeywell updated guidance for full-year 2022. For the year, the company anticipates earnings to be in the range of $8.50 to $8.80 per share, higher than $8.40 to $8.70 guided earlier. It anticipates revenues to be between $35.5 billion and $36.4 billion, with organic revenues expected to be up 4-7%. Notably, it previously anticipated revenues within $35.4 billion to $36.4 billion. For 2022, Honeywell expects operating cash flow in the range of $5.7 billion to $6.1 billion and free cash flow to be between $4.7 billion and $5.1 billion. Zacks Rank & Stocks to Consider The company currently carries a Zacks Rank #3 (Hold). Some better-ranked companies are discussed below. Griffon Corporation GFF presently sports a Zacks Rank #1 (Strong Buy). GFF’s earnings surprise in the last four quarters was 97%, on average. You can see the complete list of today’s Zacks #1 Rank stocks here. In the past 60 days, GFF’s earnings estimates have increased 9% for fiscal 2022 (ending September 2022). The stock has declined 15.7% in the past three months. Alcoa Corporation AA presently sports a Zacks Rank #1. Its earnings surprise in the last four quarters was 11.5%, on average. In the past 60 days, AA’s earnings estimates have increased 72.1% for 2022. The stock has rallied 24.5% in the past three months. Ferguson plc FERG presently carries a Zacks Rank of 2 (Buy). FERG delivered a trailing four-quarter earnings surprise of 14.2%, on average. Earnings estimates of Ferguson have increased 7% for fiscal 2022 (ending July 2022) in the past 60 days. FERG’s shares have declined 19.7% in the past three months. Zacks Names "Single Best Pick to Double" From thousands of stocks, 5 Zacks experts each have chosen their favorite to skyrocket +100% or more in months to come. From those 5, Director of Research Sheraz Mian hand-picks one to have the most explosive upside of all. It’s a little-known chemical company that’s up 65% over last year, yet still dirt cheap. With unrelenting demand, soaring 2022 earnings estimates, and $1.5 billion for repurchasing shares, retail investors could jump in at any time. This company could rival or surpass other recent Zacks’ Stocks Set to Double like Boston Beer Company which shot up +143.0% in little more than 9 months and NVIDIA which boomed +175.9% in one year. Free: See Our Top Stock and 4 Runners Up >> Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report Honeywell International Inc. (HON): Free Stock Analysis Report Alcoa (AA): Free Stock Analysis Report Griffon Corporation (GFF): Free Stock Analysis Report Wolseley PLC (FERG): Free Stock Analysis Report To read this article on Zacks.com click here. Zacks Investment Research The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
2022-04-29 00:00:00+00:00	AA	Silgan (SLGN) Q1 Earnings & Sales Top Estimates, Hikes '22 View	Silgan Holdings Inc. SLGN reported first-quarter 2022 adjusted earnings of a record 78 cents per share, beating the Zacks Consensus Estimate of 77 cents per share. Quarterly earnings also came within the guidance of 70-80 cents. The bottom line increased 4% year over year from the last year’s earnings per share of 75 cents. Including one-time items, earnings came in at 76 cents per share compared with 66 cents reported in the prior-year quarter. Total revenues increased 16.5% year over year to $1,442 million, surpassing the Zacks Consensus Estimate of $1,398 million. The upside was driven by pass-through of higher raw material and other manufacturing costs, improved productivity and operating efficiencies. Cost and Margins During first-quarter 2022, the cost of goods sold increased 19% year over year to $1,208 million. The gross profit increased 5% to $234 million. The gross margin came in at 16.2% compared with the prior-year quarter’s 17.8%. Selling, general and administrative expenses were $100 million during the reported quarter compared with the year-ago quarter’s $97 million. The company reported an operating income of $143.4 million in the quarter compared with $126.6 million in the prior-year quarter. The operating margin was 9.9% in the reported quarter compared with the prior-year quarter’s 10.2%. Silgan Holdings Inc. Price, Consensus and EPS Surprise Silgan Holdings Inc. price-consensus-eps-surprise-chart \| Silgan Holdings Inc. Quote Segment Performance Revenues in the Dispensing and Specialty Closures segment were up 17% year over year to $598 million. The segment’s adjusted operating income came in at $87 million compared with $71 million in the comparable period last year. The segment benefited from continued strong demand from the fragrance and beauty markets, a stellar performance from prior-year acquisitions and lower resin costs. The Metal Containers segment’s revenues increased 17% year over year to $651 million. Adjusted operating income in the segment amounted to $39.3 million compared with the prior-year quarter’s $50.6 million. The segment’s volumes have stabilized well above pre-pandemic levels. In the Custom Containers segment, revenues came in at $193 million compared with the year-ago quarter’s $175 million. The segment reported an adjusted operating profit of $25 million, flat year over year. The segment benefited from strong operating performance and lower resin costs. Financial Updates The company had cash and cash equivalents of $259.6 million at the end of first-quarter 2022 compared with $190.1 million at the end of the prior-year quarter. The company utilized around $267 million cash in operating activities in the first quarter compared with $172 million in the year-ago quarter. 2022 Outlook Silgan now expects adjusted EPS for 2022 to be between $3.90 and $4.05, suggesting year-over-year growth of 17% at the mid-point. The guidance is up from the prior estimate of $3.80 to $4.00. The upbeat guidance reflects strong contribution from recent acquisitions, pass-through of raw material and other cost inflation, improved supply chain, labor availability and ongoing operating efficiencies across each segment. For second-quarter 2022, Silgan anticipates adjusted EPS between 90 cents and $1.00, indicating year-over-year growth of 12% at the mid-point. Price Performance Silgan’s shares have gained 6.4% in the past year against the industry’s loss of 6.8%. Image Source: Zacks Investment Research Zacks Rank and Stocks to Consider Silgan currently carries a Zacks Rank #4 (Sell). Some better-ranked stocks in the Industrial Products sector are Alcoa AA, Packaging Corporation of America PKG and Greif Inc. GEF. While AA and PKG flaunt a Zacks Rank #1 (Strong Buy), GEF carries a Zacks Rank #2 (Buy). You can see the complete list of today’s Zacks #1 Rank stocks here. Alcoa has a projected earnings growth rate of 107% for the current year. The Zacks Consensus Estimate for 2022 earnings has moved north by 76% in the past 60 days. Alcoa delivered a trailing four-quarter earnings surprise of 17.4% on average. Alcoa’s shares have surged 81% in the past year. Packaging Corporation has an expected earnings growth rate of 16.2% for 2022. The Zacks Consensus Estimate for the current year’s earnings has moved up 4.2% in the past 60 days. PKG has a trailing four-quarter earnings surprise of 19.6%, on average. Packaging Corporation’s shares have gained 9.7% in the past year. Greif has an estimated earnings growth rate of 16% for fiscal 2022. In the past 60 days, the Zacks Consensus Estimate for current-year earnings has been revised upward by 4.2%. GEF pulled off a trailing four-quarter earnings surprise of 14.7%, on average. The company’s shares have appreciated 5% in a year’s time. Zacks Names "Single Best Pick to Double" From thousands of stocks, 5 Zacks experts each have chosen their favorite to skyrocket +100% or more in months to come. From those 5, Director of Research Sheraz Mian hand-picks one to have the most explosive upside of all. It’s a little-known chemical company that’s up 65% over last year, yet still dirt cheap. With unrelenting demand, soaring 2022 earnings estimates, and $1.5 billion for repurchasing shares, retail investors could jump in at any time. This company could rival or surpass other recent Zacks’ Stocks Set to Double like Boston Beer Company which shot up +143.0% in little more than 9 months and NVIDIA which boomed +175.9% in one year. Free: See Our Top Stock and 4 Runners Up >> Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report Alcoa (AA): Free Stock Analysis Report Silgan Holdings Inc. (SLGN): Free Stock Analysis Report Packaging Corporation of America (PKG): Free Stock Analysis Report Greif, Inc. (GEF): Free Stock Analysis Report To read this article on Zacks.com click here. Zacks Investment Research The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
2022-04-28 00:00:00+00:00	AA	A. O. Smith's (AOS) Q1 Earnings & Revenues Top Estimates	A. O. Smith Corporation AOS has reported better-than-expected first-quarter 2022 results, wherein adjusted earnings of 77 cents per share beat the Zacks Consensus Estimate of 75 cents. The bottom line also increased 30.5% from the year-ago figure of 59 cents. Top-Line Details The company’s first-quarter net sales increased 27% year over year to $977.7 million. The increase was driven by higher sales in North America and China, supported by its pricing actions. The top line surpassed the Zacks Consensus Estimate of $965 million. A. O. Smith’s quarterly sales in North America (comprising the United States and Canada water heaters and boilers) moved up 32% year over year to $730.1 million. The segment’s results were primarily driven by higher sales of boilers and water treatment products and the company’s pricing actions. Segmental operating earnings were up 16.4% to $151.8 million on a year-over-year basis. The jump was on account of inflation-related price increases, partially offset by a rise in material and logistics costs. Quarterly sales in the Rest of the World (including China, India and Europe) grew 15.2% year over year to $256 million. The increase was primarily backed by a positive mix in water treatment and water heater products in China and solid demand for commercial water treatment products and replacement filters. The segment’s operating earnings were $24.8 million, reflecting a 110.2% increase year over year. A favorable product mix, higher volumes and lower advertising and selling expenses benefited the segment’s income. A. O. Smith Corporation Price, Consensus and EPS Surprise A. O. Smith Corporation price-consensus-eps-surprise-chart \| A. O. Smith Corporation Quote Margin Details In the quarter, A.O. Smith’s cost of sales was $636.1 million, up 32.4% on a year-over-year basis. Selling, general & administrative expenses were $179.8 million, up 8%. Gross profit increased 18.4% year over year to $341.6 million with a margin of 34.9%, down 260 basis points. Interest expenses increased 50% to $1.5 million. Liquidity & Cash Flow On Mar 31, 2022, A.O. Smith’s cash and cash equivalents totaled $405.8 million compared with $443.3 million in the previous quarter. At the end of the reported quarter, long-term debt was $288.6 million, up 52% from $189.9 million sequentially. In the first three months of 2022, cash provided by the operating activities totaled $16.5 million compared with $104.4 million in the year-ago period. Share Repurchases In the first three months of 2022, the company repurchased shares worth $107.9 million compared with $67 million in the year-ago period. It paid dividends worth $44.2 million compared with $42.2 million a year ago. Guidance The company provided revenue and earnings guidance for 2022. It anticipates revenues to lie in the range of $4,030-$4,105 million. It currently expects adjusted earnings of $3.35-$3.55. Zacks Rank & Stocks to Consider The company currently carries a Zacks Rank #3 (Hold). Some better-ranked companies are discussed below. AZZ Inc. AZZ presently carries a Zacks Rank #1 (Strong Buy). You can see the complete list of today’s Zacks #1 Rank stocks here. Its earnings surprise for the last four quarters was 22.25%, on average. AZZ’s earnings estimates increased 12.6% for fiscal 2022 (ending February 2022) in the past 60 days. Its shares have gained 1.5% in the past three months. Alcoa Corporation AA presently sports a Zacks Rank #1. Its earnings surprise in the last four quarters was 11.5%, on average. In the past 60 days, AA’s earnings estimates have increased 72.1% for 2022. The stock has rallied 21.9% in the past three months. Ferguson plc FERG presently carries a Zacks Rank of 2 (Buy). FERG delivered a trailing four-quarter earnings surprise of 14.2%, on average. Earnings estimates of Ferguson have increased 7% for fiscal 2022 (ending July 2022) in the past 60 days. FERG’s shares have declined 14.2% in the past three months. 5 Stocks Set to Double Each was handpicked by a Zacks expert as the #1 favorite stock to gain +100% or more in 2021. Previous recommendations have soared +143.0%, +175.9%, +498.3% and +673.0%. Most of the stocks in this report are flying under Wall Street radar, which provides a great opportunity to get in on the ground floor. Today, See These 5 Potential Home Runs >> Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report Alcoa (AA): Free Stock Analysis Report A. O. Smith Corporation (AOS): Free Stock Analysis Report AZZ Inc. (AZZ): Free Stock Analysis Report Wolseley PLC (FERG): Free Stock Analysis Report To read this article on Zacks.com click here. Zacks Investment Research The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
2022-04-28 00:00:00+00:00	AA	Grainger (GWW) Earnings & Sales Beat Estimates in Q1, Up Y/Y	W.W. Grainger, Inc. GWW reported earnings per share (EPS) of $7.07 in first-quarter 2022, beating the Zacks Consensus Estimate of $6.16. The bottom line improved 58% year over year, driven by strong demand in both the High-Touch Solutions N.A. and Endless Assortment segments and higher operating earnings. Grainger’s quarterly revenues rose 18% year over year to $3,647 million. The top line surpassed the Zacks Consensus Estimate of $3,518 million. Daily sales increased 16.4% from the prior-year quarter’s levels. The uptick was driven by a strong performance in both the High-Touch Solutions North America (N.A.) and Endless Assortment segments. W.W. Grainger, Inc. Price, Consensus and EPS Surprise W.W. Grainger, Inc. price-consensus-eps-surprise-chart \| W.W. Grainger, Inc. Quote Operational Update Cost of sales climbed 13.7% year over year to $2,264 million. The gross profit rose 26.5% year over year to $1,383 million. The gross margin expanded to 37.9% in the quarter compared with the prior-year period’s 35.4%. Grainger’s operating income in the quarter was up 49% year on year to $534 million. The operating margin came in at 14.6%, a 300 basis point expansion from the prior-year quarter. Financial Position The company had cash and cash equivalents of $364 million at the end of the first quarter of 2022, up from $241 million at 2021-end. Cash flow from operating activities was $343 million in the first quarter of 2022 compared with $294 million in the last-year’s quarter. Long-term debt was $2,338 million as of Mar 31, 2022, compared with $2,362 million as of Dec 31, 2021. Grainger returned $163 million to shareholders through dividends and share buybacks in the first quarter. 2022 Outlook Backed by the strong first-quarter performance, Grainger now expects net sales for the current year to be between $14.5 billion and $14.9 billion, up from its prior stated range of $14.1 billion to $14.5 billion. The company raised its earnings per share guidance to the band of $25.00-$27.00 from its previous expectation of $23.50-$25.50. Price Performance Image Source: Zacks Investment Research In the past year, Grainger’s shares have gained 17.4% against the industry’s decline of 53.9%. Zacks Rank and Stocks to Consider Grainger currently carries a Zacks Rank #4 (Sell). Some better-ranked stocks in the Industrial Products sector are Alcoa AA, Titan International TWI and Packaging Corporation of America PKG. All of these stocks flaunt a Zacks Rank #1 (Strong Buy) at present. You can see the complete list of today’s Zacks #1 Rank stocks here. Alcoa has a projected earnings growth rate of 107% for the current year. The Zacks Consensus Estimate for 2022 earnings has moved north by 76% in the past 60 days. Alcoa delivered a trailing four-quarter earnings surprise of 17.4%, on average. Alcoa’s shares have soared 92% in the past year. Titan International has an estimated earnings growth rate of 36.5% for fiscal 2022. In the past 60 days, the Zacks Consensus Estimate for current-year earnings has been revised upward by 20%. Titan International pulled off a trailing four-quarter earnings surprise of 47.6%, on average. The company’s shares have appreciated 27% in a year’s time. Packaging Corporation has an expected earnings growth rate of 16% for 2022. The Zacks Consensus Estimate for the current year’s earnings has moved up 4% in the past 60 days. Packaging Corporation has a trailing four-quarter earnings surprise of 19.6%, on average. PKG’s shares have appreciated 11% in a year’s time. 5 Stocks Set to Double Each was handpicked by a Zacks expert as the #1 favorite stock to gain +100% or more in 2021. Previous recommendations have soared +143.0%, +175.9%, +498.3% and +673.0%. Most of the stocks in this report are flying under Wall Street radar, which provides a great opportunity to get in on the ground floor. Today, See These 5 Potential Home Runs >> Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report Alcoa (AA): Free Stock Analysis Report W.W. Grainger, Inc. (GWW): Free Stock Analysis Report Packaging Corporation of America (PKG): Free Stock Analysis Report Titan International, Inc. (TWI): Free Stock Analysis Report To read this article on Zacks.com click here. Zacks Investment Research The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
2022-04-27 00:00:00+00:00	AA	Crown Holdings (CCK) Q1 Earnings & Sales Top Estimates, Up Y/Y	Crown Holdings, Inc. CCK reported first-quarter 2022 adjusted earnings per share (EPS) of $2.01, beating the Zacks Consensus Estimate of $1.82. The bottom line rose 9.8% year over year and surpassed the EPS guidance of $1.80-$1.90. Including one-time items, the company reported earnings of $1.74 per share in the quarter under review compared with $1.57 per share in the first quarter of 2021. Net sales in the quarter totaled $3,162 million, up from the year-ago quarter’s $2,564 million. The top line benefited from increased beverage sales unit volumes and pass-through of higher material costs. The reported figure surpassed the Zacks Consensus Estimate of $3,011 million. Cost and Margins The cost of products sold increased 29% year over year to $2,547 million. On a year-over-year basis, gross profit moved up 6% to $615 million. Gross margin contracted to 19.4% from the year-ago quarter’s 22.6%. Selling and administrative expenses rose 9.8% year over year to $157 million. Segment operating income came in at $383 million during the quarter under review compared with the prior-year quarter’s $369 million. The operating margin came in at 12.1% compared with 14.4% in the prior-year quarter. Crown Holdings, Inc. Price, Consensus and EPS Surprise Crown Holdings, Inc. price-consensus-eps-surprise-chart \| Crown Holdings, Inc. Quote Segment Performance Net sales in the Americas Beverage segment totaled $1,226 million, up 23% year over year. Segment operating profit declined 13% year over year to $164 million. The European Beverage segment’s sales rallied 31% year over year to $510 million. Operating income came in at $53 million compared with the year-ago quarter’s $62 million. The Asia-Pacific segment’s revenues totaled $413 million, up 25% year over year. Operating profit was $53 million compared with the prior-year quarter’s $52 million. Revenues in the Transit Packaging segment totaled $657 million compared with the year-ago quarter’s $557 million. Operating profit declined 13% year over year to $61 million. Financial Update Crown Holdings had cash and cash equivalents of $389 million at the end of first-quarter 2022, down from $588 million at the end of the prior-year quarter. The company utilized $301 million cash in operating activities in the first quarter compared with $385 million in the year-ago quarter. Crown Holdings’ long-term debt declined to $5,654 million as of Mar 31, 2022, from $7,875 million as of Mar 31, 2021. Business Update During the quarter, Crown Holdings entered into an agreement to sell the Transit Packaging segment's Kiwiplan business for $182 million. The deal is expected to close during second-quarter 2022. The company expects to record an after-tax gain of approximately $100 million related to the transaction with net proceeds, after taxes and other transaction-related costs, expected to be utilized for debt reduction, fund capital projects and repurchase shares over time. Outlook Crown Holdings projects second-quarter 2022 adjusted EPS between $2.00 and $2.10. For the current year, the company anticipates adjusted EPS in the band of $8.00-$8.20. Beverage can demand growth remains strong and the company is expected to benefit from this trend. Crown Holdings continues to implement several beverage can capacity-expansion projects to meet the surging demand. The company is focused on constructing new plants and the addition of production lines to its existing facilities. Price Performance Crown Holdings’ shares have declined 1.3% in the past year compared with the industry’s fall of 1.3%. Image Source: Zacks Investment Research Zacks Rank and Stocks to Consider Crown Holdings currently carries a Zacks Rank #3 (Hold). Some better-ranked stocks in the Industrial Products sector are Alcoa AA, Packaging Corporation of America PKG and Greif Inc. GEF. While AA and PKG flaunt a Zacks Rank #1 (Strong Buy), GEF carries a Zacks Rank #2 (Buy). You can see the complete list of today’s Zacks #1 Rank stocks here. Alcoa has a projected earnings growth rate of 107% for the current year. The Zacks Consensus Estimate for 2022 earnings has moved north by 76% in the past 60 days. Alcoa delivered a trailing four-quarter earnings surprise of 17.4% on average. Alcoa’s shares have surged 81% in the past year. Packaging Corporation has an expected earnings growth rate of 16.2% for 2022. The Zacks Consensus Estimate for the current year earnings has moved up 4.2% in the past 60 days. PKG has a trailing four-quarter earnings surprise of 19.6%, on average. Packaging Corporation’s shares have gained 9.7% in the past year. Greif has an estimated earnings growth rate of 16% for fiscal 2022. In the past 60 days, the Zacks Consensus Estimate for current-year earnings has been revised upward by 4.2%. GEF pulled off a trailing four-quarter earnings surprise of 14.7%, on average. The company’s shares have appreciated 5% in a year’s time. Zacks Names "Single Best Pick to Double" From thousands of stocks, 5 Zacks experts each have chosen their favorite to skyrocket +100% or more in months to come. From those 5, Director of Research Sheraz Mian hand-picks one to have the most explosive upside of all. It’s a little-known chemical company that’s up 65% over last year, yet still dirt cheap. With unrelenting demand, soaring 2022 earnings estimates, and $1.5 billion for repurchasing shares, retail investors could jump in at any time. This company could rival or surpass other recent Zacks’ Stocks Set to Double like Boston Beer Company which shot up +143.0% in little more than 9 months and NVIDIA which boomed +175.9% in one year. Free: See Our Top Stock and 4 Runners Up >> Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report Alcoa (AA): Free Stock Analysis Report Packaging Corporation of America (PKG): Free Stock Analysis Report Crown Holdings, Inc. (CCK): Free Stock Analysis Report Greif, Inc. (GEF): Free Stock Analysis Report To read this article on Zacks.com click here. Zacks Investment Research The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
2022-04-27 00:00:00+00:00	AA	John Bean (JBT) Revenues and Earnings Beat Estimates in Q1	John Bean Technologies Corporation JBT reported adjusted earnings of 87 cents per share in first-quarter 2022, which beat the Zacks Consensus Estimate of 56 cents. However, the bottom line declined 3% from the prior-year quarter. The company has been witnessing strong demand and improved orders through the quarter but higher material and labor costs negated these gains. On a reported basis, the company’s earnings per share was 80 cents compared with the prior-year quarter’s 84 cents. Revenues of $469 million surpassed the Zacks Consensus Estimate of $441 million. The top line improved 12% from the prior-year quarter. In the reported quarter, the company’s total orders rose 16% year over year to $566 million. Orders in the JBT FoodTech segment increased 7% year over year to a record $412 million. In the JBT AeroTech segment, orders surged 53% to $154 million from the prior-year quarter. John Bean Technologies Corporation Price, Consensus and EPS Surprise John Bean Technologies Corporation price-consensus-eps-surprise-chart \| John Bean Technologies Corporation Quote Backlog in the FoodTech segment increased 41% from the year-ago quarter to $691 million as of Mar 31, 2022. The AeroTech segment’s backlog was $411 million at the end of the reported quarter, up 46% year over year. Total backlog at the end of the first quarter of 2022 was a record $1.1 billion, up 43% year over year. Cost and Margins Cost of sales increased 16% year over year to $330 million during the first quarter. Gross profit was up 5% year over year to $139 million. Gross margin came in at 29.7% compared with the year-earlier quarter’s 31.9%. Selling, general and administrative expenses were up 15% year over year to $108 million. Adjusted operating profit declined 20% year over year to $31.1 million. Adjusted operating margin was 6.6% in the quarter compared with the prior-year quarter’s 9.3%. In the quarter under review, adjusted EBITDA was around $53.8 million, reflecting a year-over-year decline of 8%. Adjusted EBITDA margin was 11.5% compared with the year-ago quarter’s 14%. Segment Performance JBT FoodTech: Net sales were $356 million compared with $312 million in the prior-year quarter. Adjusted operating profit amounted to $40.4 million compared with the year-ago quarter’s $42 million. JBT AeroTech: Net sales were $113 million, up 6.5% from the prior-year quarter. The segment’s adjusted operating profit plunged 31% year over year to $6.8 million. Financial Performance John Bean reported cash and cash equivalents of around $84.2 million at the end of the first quarter of 2022, up from $78.8 million at the end of 2021. The company generated around $39 million of cash from operating activities in the quarter under review, compared with $86 million in the prior-year quarter. The company’s total debt was $670 million as of Dec 31, 2021, up from $674 million as of Dec 31, 2021. Guidance Revenue growth is projected at 15-18% for the FoodTech segment in 2022. The AeroTech segment’s revenues are expected to increase approximately 18-22% from 2021. JBT anticipates the ongoing supply chain and labor challenges to persist in 2022. Margins are expected to improve sequentially in the second half. The company expects adjusted earnings per share on the range of $5.00 to $5.30 in 2022. In the second quarter of 2022, adjusted earnings per share is expected in the band of $1.05-$1.20. JBT expects year-over-year consolidated revenue growth of 15-17% for the quarter. Price Performance Image Source: Zacks Investment Research John Bean’s shares have fallen 28.3% in the past year compared with the industry’s decline of 21.5%. Zacks Rank & Stocks to Consider John Bean carries a Zacks Rank #3 (Hold). Some better-ranked stocks in the Industrial Products sector are Alcoa AA, Titan International TWI and Packaging Corporation of America PKG. While AA and TWI flaunt a Zacks Rank #1 (Strong Buy), PKG carries a Zacks Rank #2 (Buy). You can see the complete list of today’s Zacks #1 Rank stocks here. Alcoa has a projected earnings growth rate of 107% for the current year. The Zacks Consensus Estimate for 2022 earnings has moved north by 76% in the past 60 days. Alcoa delivered a trailing four-quarter earnings surprise of 17.4%, on average. Alcoa’s shares have surged 82% in the past year. Titan International has an estimated earnings growth rate of 36.5% for fiscal 2022. In the past 60 days, the Zacks Consensus Estimate for current-year earnings has been revised upward by 20%. Titan International pulled off a trailing four-quarter earnings surprise of 47.6%, on average. The company’s shares have appreciated 21% in a year’s time. Packaging Corporation has an expected earnings growth rate of 16% for 2022. The Zacks Consensus Estimate for the current year’s earnings has moved up 4% in the past 60 days. Packaging Corporation has a trailing four-quarter earnings surprise of 19.6%, on average. PKG shares have gained 9.7% in the past year. Zacks Names "Single Best Pick to Double" From thousands of stocks, 5 Zacks experts each have chosen their favorite to skyrocket +100% or more in months to come. From those 5, Director of Research Sheraz Mian hand-picks one to have the most explosive upside of all. It’s a little-known chemical company that’s up 65% over last year, yet still dirt cheap. With unrelenting demand, soaring 2022 earnings estimates, and $1.5 billion for repurchasing shares, retail investors could jump in at any time. This company could rival or surpass other recent Zacks’ Stocks Set to Double like Boston Beer Company which shot up +143.0% in little more than 9 months and NVIDIA which boomed +175.9% in one year. Free: See Our Top Stock and 4 Runners Up >> Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report Alcoa (AA): Free Stock Analysis Report Packaging Corporation of America (PKG): Free Stock Analysis Report Titan International, Inc. (TWI): Free Stock Analysis Report John Bean Technologies Corporation (JBT): Free Stock Analysis Report To read this article on Zacks.com click here. Zacks Investment Research The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
2022-04-26 00:00:00+00:00	AA	Avery Dennison (AVY) Tops Q1 Earnings Estimates, Ups '22 View	Avery Dennison Corporation AVY reported first-quarter 2022 adjusted earnings of $2.40 per share, beating the Zacks Consensus Estimate of $2.18. The bottom line was in line year over year. Including one-time items, the company reported earnings per share (EPS) of $2.39 compared with the year-ago quarter’s $2.50 per share. Total revenues increased 14.5% year over year to $2,349 million, beating the Zacks Consensus Estimate of $2,299 million. Sales were up 12.7% year over year on an organic basis. Cost of sales in the quarter rose 17% year over year to $1,708 million. The gross profit was up 7.4% year over year to $641.3 million. The gross margin contracted to 27% in the first quarter from the prior-year quarter’s 29%. Marketing, general and administrative expenses were $355 million compared with the $312 million incurred in the year-ago quarter. The adjusted operating profit amounted to around $286 million compared with the prior-year quarter’s $285 million. The adjusted operating margin was 12.2% in the quarter compared with the year-ago quarter’s 13.9%. Avery Dennison Corporation Price, Consensus and EPS Surprise Avery Dennison Corporation price-consensus-eps-surprise-chart \| Avery Dennison Corporation Quote Segment Highlights Revenues in the Label and Graphic Materials (LGM) segment increased 8% year over year to $1,480 million in the reported quarter. Label and Packaging Materials sales were up low-double digits from prior-year quarter’s levels, with stellar growth witnessed in the high-value product categories and the base business. Sales increased by high-single digits in the Graphics and Reflective Solutions businesses. On an organic basis, reported sales were up 12%. The segment’s adjusted operating profit declined 9% year on year to $204 million. Revenues in the Retail Branding and Information Solutions (RBIS) segment rose 41% year over year to $679 million. On an organic basis, sales were up 20%, reflecting solid growth in both the high-value categories and the base business. The segment’s adjusted operating income was $92 million compared with the year-ago quarter’s $62 million. Net sales in the Industrial and Healthcare Materials (IHM) segment totaled $190 million, down 1% from $192 million recorded in the prior-year quarter. The figure marks a low-single-digit decline in the industrial categories and a low-double digits increase in the healthcare categories. The segment reported an adjusted operating income of $16 million compared with the prior-year quarter’s $24 million. Financial Updates Free cash flow in the reported quarter was $73 million compared with the year-earlier quarter’s $182 million. The company returned $208 million in cash to shareholders through share repurchases and dividend payments in the first quarter. Avery Dennison ended the first quarter with cash and cash equivalents of $147 million compared with $328 million at the end of the prior-year quarter. The company’s net debt to adjusted EBITDA ratio was 2.35. Guidance Avery Dennison now expects adjusted EPS guidance for 2022 in the band of $9.45-$9.85, up from the prior guidance of $9.35-$9.75. Price Performance Shares of Avery Dennison have declined 17.4% in the past year compared with the industry’s loss of 14.2%. Image Source: Zacks Investment Research Zacks Rank and Stocks to Consider Avery Dennison currently carries a Zacks Rank #4 (Sell). Some better-ranked stocks in the Industrial Products sector are Alcoa AA, Sonoco Products Company SON and Greif Inc. GEF. While AA and SON flaunt a Zacks Rank #1 (Strong Buy), GEF carries a Zacks Rank #2 (Buy). You can see the complete list of today’s Zacks #1 Rank stocks here. Alcoa has a projected earnings growth rate of 107% for the current year. The Zacks Consensus Estimate for 2022 earnings has moved north by 76% in the past 60 days. Alcoa delivered a trailing four-quarter earnings surprise of 17.4% on average. Alcoa’s shares have surged 81% in the past year. Sonoco has an expected earnings growth rate of 47.6% for 2022. The Zacks Consensus Estimate for the current year’s earnings has moved up 13% in the past 60 days. SON has a trailing four-quarter earnings surprise of 1.85%, on average. SON’s shares have declined 4.5% in the past year. Greif has an estimated earnings growth rate of 16% for fiscal 2022. In the past 60 days, the Zacks Consensus Estimate for current-year earnings has been revised upward by 4.2%. GEF pulled off a trailing four-quarter earnings surprise of 14.7%, on average. The company’s shares have appreciated 5% in a year’s time. Bitcoin, Like the Internet Itself, Could Change Everything Blockchain and cryptocurrency has sparked one of the most exciting discussion topics of a generation. Some call it the “Internet of Money” and predict it could change the way money works forever. If true, it could do to banks what Netflix did to Blockbuster and Amazon did to Sears. Experts agree we’re still in the early stages of this technology, and as it grows, it will create several investing opportunities. Zacks’ has just revealed 3 companies that can help investors capitalize on the explosive profit potential of Bitcoin and the other cryptocurrencies with significantly less volatility than buying them directly. See 3 crypto-related stocks now >> Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report Alcoa (AA): Free Stock Analysis Report Sonoco Products Company (SON): Free Stock Analysis Report Avery Dennison Corporation (AVY): Free Stock Analysis Report Greif, Inc. (GEF): Free Stock Analysis Report To read this article on Zacks.com click here. Zacks Investment Research The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
2022-04-26 00:00:00+00:00	AA	Packaging Corp (PKG) Q1 Earnings & Sales Top Estimates, Up Y/Y	Packaging Corporation of America PKG reported adjusted earnings per share (EPS) of $2.72 in first-quarter 2022, beating the Zacks Consensus Estimate of $2.53. The bottom line increased 54% year over year. The upside was primarily driven by higher volume, price and mix in the Packaging and Paper segments, improvement in operating cost and favorable weather conditions. Including one-time items, earnings in the reported quarter were $2.70 per share compared with the prior-year quarter’s $1.75 per share. Operational Update Sales in the first quarter rose 18% year over year to $2,136 million. The top line surpassed the Zacks Consensus Estimate of $2,066 million. The cost of products sold was up 14% year over year to $1,603 million in the first quarter. The gross profit surged 32% year over year to $533 million. Selling, general and administrative expenses amounted to $161 million compared with the prior-year quarter’s $145 million. The adjusted total segment operating income climbed 54% year over year to $342 million. Packaging Corporation of America Price, Consensus and EPS Surprise Packaging Corporation of America price-consensus-eps-surprise-chart \| Packaging Corporation of America Quote Segmental Performance Packaging: Sales in the segment increased 21% year over year to $1,965 million in the first quarter of 2022. The segment’s adjusted operating profit amounted to $363 million in the reported quarter compared with $260 million in the prior-year quarter. Paper: The segment’s revenues came in at $154 million in the January-March quarter, down 6.7% year over year. The segment reported an adjusted operating profit of $23.7 million compared with the year-ago quarter’s $9.8 million. Cash Position Packaging Corp had a cash balance of $778 million at the end of the first quarter, down from $1,133 million of cash held at the end of the prior-year quarter. Outlook Packaging Corp projects second-quarter 2022 EPS to be around $2.83. The company’s Packaging segment will continue to benefit from strong demand. PKG will continue to implement previously-announced price hikes across both the segments. Scheduled outage costs at the International Falls mill will likely dent the Paper segment’s sales volume in the second quarter. Management expects that the freight and logistics expenses, operating costs and recycled fiber prices will likely be slightly lower in the second quarter. Price Performance Packaging Corp’s shares have gained 12.1% in the past year compared with the industry’s growth of 3.1%. Image Source: Zacks Investment Research Zacks Rank and Other Stocks to Consider Packaging Corporation currently sports a Zacks Rank #1 (Strong Buy). You can see the complete list of today’s Zacks #1 Rank stocks here. Some better-ranked stocks in the Industrial Products sector are Alcoa AA, Sonoco Products Company SON and Greif Inc. GEF. While AA and SON flaunt a Zacks Rank #1, GEF carries a Zacks Rank #2 (Buy). Alcoa has a projected earnings growth rate of 107% for the current year. The Zacks Consensus Estimate for 2022 earnings has moved north by 76% in the past 60 days. Alcoa delivered a trailing four-quarter earnings surprise of 17.4% on average. Alcoa’s shares have surged 81% in the past year. Sonoco has an expected earnings growth rate of 47.6% for 2022. The Zacks Consensus Estimate for the current year’s earnings has moved up 13% in the past 60 days. SON has a trailing four-quarter earnings surprise of 1.85%, on average. SON’s shares have declined 4.5% in the past year. Greif has an estimated earnings growth rate of 16% for fiscal 2022. In the past 60 days, the Zacks Consensus Estimate for current-year earnings has been revised upward by 4.2%. GEF pulled off a trailing four-quarter earnings surprise of 14.7%, on average. The company’s shares have appreciated 5% in a year’s time. Bitcoin, Like the Internet Itself, Could Change Everything Blockchain and cryptocurrency has sparked one of the most exciting discussion topics of a generation. Some call it the “Internet of Money” and predict it could change the way money works forever. If true, it could do to banks what Netflix did to Blockbuster and Amazon did to Sears. Experts agree we’re still in the early stages of this technology, and as it grows, it will create several investing opportunities. Zacks’ has just revealed 3 companies that can help investors capitalize on the explosive profit potential of Bitcoin and the other cryptocurrencies with significantly less volatility than buying them directly. See 3 crypto-related stocks now >> Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report Alcoa (AA): Free Stock Analysis Report Sonoco Products Company (SON): Free Stock Analysis Report Packaging Corporation of America (PKG): Free Stock Analysis Report Greif, Inc. (GEF): Free Stock Analysis Report To read this article on Zacks.com click here. Zacks Investment Research The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
2022-04-26 00:00:00+00:00	AA	3M's (MMM) Earnings and Revenues Surpass Estimates in Q1	3M Company MMM reported solid first-quarter 2022 results. Its earnings surpassed estimates by 13.73% and sales exceeded the same by 1.02%. This is the company’s ninth consecutive quarter of earnings beat. Its adjusted earnings in the reported quarter were $2.65 per share, surpassing the Zacks Consensus Estimate of $2.33. The bottom line decreased 4.3% from the year-ago quarter figure of $2.77. Sales Details In the quarter under review, 3M’s net sales were $8,829 million, reflecting a decline of 0.3% from the year-ago quarter. The company’s net sales also surpassed the Zacks Consensus Estimate of $8,740 million. Results suffered from an adverse impact of 2% from movements in foreign currencies, partially offset by a 1.7% year-over-year increase in organic sales. Region-wise, sales in the Americas increased 2.5% year over year while that in the Asia Pacific was flat. Sales from business in the Europe, Middle East and Africa region declined 7.6% year over year. The company reports top-line results under four business segments — Safety & Industrial, Transportation & Electronics, Health Care and Consumer. The segmental information is briefly discussed below. Revenues from Safety and Industrial totaled $3,051 million, decreasing 1.6% year over year. The decline was attributable to a 2.1% negative impact from movements in foreign currencies, partially offset by a 0.5% increase in organic sales. Revenues from Transportation & Electronics totaled $2,340 million, reflecting a year-over-year decrease of 2.3%. The decline was attributable to a 0.3% decrease in organic sales and a 2% adverse impact from movements in foreign currencies. Revenues from Health Care were $2,124 million, up 2.7% year over year. The results benefited from a positive impact of 4.7% from organic sales, partially offset by a 2% negative impact from movements in foreign currencies. Revenues from Consumer increased 1.8% year over year to $1,313 million. Organic sales improved 3.4% but movements in foreign currencies had a negative impact of 1.6%. 3M Company Price, Consensus and EPS Surprise 3M Company price-consensus-eps-surprise-chart \| 3M Company Quote Margin Profile In the quarter under review, 3M’s cost of sales increased 6.7% year over year to $4,826 million. It represented 54.7% of net sales compared with 51.1% in the year-ago quarter. Selling, general and administrative expenses increased 4.1% to $1,882 million. It represented 21.3% of net sales compared with 20.4% in the year-ago quarter. Research, development and related expenses decreased 8.4% to $480 million. It represented 5.4% of the quarter’s net sales. The company’s adjusted operating income in the quarter decreased 17.7% year over year to $1,641 million. Adjusted operating margin decreased 270 basis points to 21.4%. The adjusted tax rate in the quarter was 17.6% compared with 16.9% in the year-ago quarter. Balance Sheet and Cash Flow Exiting first-quarter 2022, 3M had cash and cash equivalents of $3,247 million, reflecting a decrease from $4,564 million at the end of the last reported quarter. Long-term debt balance decreased 7.8% sequentially to $14,801 million. In the reported quarter, the company generated net cash of $1,011 million from its operating activities, reflecting a decrease of 40.1% from the year-ago quarter. Capital used for purchasing property, plant and equipment increased 36.8% to $424 million. Adjusted free cash flow in the quarter was $715 million, down 50.3% from $1,438 million generated in the year-ago quarter. Adjusted free cash flow conversion was 47%. In the quarter, the company used $852 million for paying out dividends to shareholders and repurchased $773 million worth of treasury shares. It paid out dividends of $858 million and repurchased shares worth $231 million in the year-ago quarter. Outlook For 2022, 3M remains focused on investing in emerging end markets to drive long-term growth. Healthy cash flow generation, efforts to strengthen capital structure and sound capital allocation also remain its priorities. For 2022, it predicts adjusted earnings of $10.75-$11.25 per share, higher than $10.12 in 2021. For the year, organic sales are expected to increase in the range of 2-5% year over year. Free cash flow conversion is expected to be in the range of 90% to 100%. Zacks Rank & Stocks to Consider The company currently carries a Zacks Rank #4 (Sell). Some better-ranked companies are discussed below. Griffon Corporation GFF presently sports a Zacks Rank #1 (Strong Buy). Its earnings surprise in the last four quarters was 56.7%, on average. You can see the complete list of today’s Zacks #1 Rank stocks here. In the past 60 days, Griffon’s earnings estimates have increased 9% for fiscal 2022 (ending September 2022). The stock has lost 14.5% in the past three months. Alcoa Corporation AA presently sports a Zacks Rank #1. Its earnings surprise in the last four quarters was 11.5%, on average. In the past 60 days, AA’s earnings estimates have increased 76.2% for 2022. The stock has rallied 16.1% in the past three months. Ferguson plc FERG presently carries a Zacks Rank of 2 (Buy). FERG delivered a trailing four-quarter earnings surprise of 14.2%, on average. Earnings estimates of Ferguson have increased 7% for fiscal 2022 (ending July 2022) in the past 60 days. FERG’s shares have declined 14.2% in the past three months. Bitcoin, Like the Internet Itself, Could Change Everything Blockchain and cryptocurrency has sparked one of the most exciting discussion topics of a generation. Some call it the “Internet of Money” and predict it could change the way money works forever. If true, it could do to banks what Netflix did to Blockbuster and Amazon did to Sears. Experts agree we’re still in the early stages of this technology, and as it grows, it will create several investing opportunities. Zacks’ has just revealed 3 companies that can help investors capitalize on the explosive profit potential of Bitcoin and the other cryptocurrencies with significantly less volatility than buying them directly. See 3 crypto-related stocks now >> Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report Alcoa (AA): Free Stock Analysis Report 3M Company (MMM): Free Stock Analysis Report Griffon Corporation (GFF): Free Stock Analysis Report Wolseley PLC (FERG): Free Stock Analysis Report To read this article on Zacks.com click here. Zacks Investment Research The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
2022-04-26 00:00:00+00:00	AA	General Electric (GE) Q1 Earnings Top Estimates, Revenues Miss	General Electric Company GE reported mixed first-quarter 2022 results, wherein earnings surpassed the Zacks Consensus Estimate, but sales missed the same. The company’s quarterly earnings beat the consensus estimate by 20%. Sales lagged estimates by 2.4%. The industrial conglomerate’s adjusted earnings were 24 cents per share in the first quarter, beating the Zacks Consensus Estimate of 20 cents. The bottom line matched the year-ago figure. Revenue Details In the quarter under review, General Electric’s consolidated revenues were $17,040 million, reflecting a year-over-year decline of 0.2%. The quarterly sales suffered from weakness in the Power and Renewable Energy segments. A gain in Healthcare and Aviation was a relief. The company’s top line lagged the Zacks Consensus Estimate of $17,462 million. The performance of Aviation, Healthcare, Renewable Energy and Power is discussed below: Aviation revenues increased 12% year over year to $5,603 million and orders grew 31%. Organically, growth rates for revenues and orders were 12% and 32%, respectively. The high volume of shop visits significantly benefited Commercial Services revenues, partially offset by a decline in Commercial Engines revenues due to supply chain constraints. Healthcare revenues in the reported quarter totaled $4,363 million, increasing 1% year over year. The segment’s orders grew 8% on an organic basis. The segment gained from a 3% increase in services organic sales while equipment revenues were flat. Supply shortages in the industry played spoilsport in the quarter. Renewable Energy revenues totaled $2,871 million, down 12% year over year. Organically, the segment’s sales were down 10%. Its orders decreased 21% in the reported quarter. Weakness in Onshore Wind revenues and softness in Grid adversely impacted the segment’s performance. Growth in services revenues was a relief. The Power segment’s revenues were down 11% year over year at $3,501 million. Organically, sales decreased 6%. However, the segment’s orders increased 14% year over year (or were up 19% organically). The segment suffered due to lower shipment volumes. General Electric Company Price, Consensus and EPS Surprise General Electric Company price-consensus-eps-surprise-chart \| General Electric Company Quote Margin Profile In the quarter under review, General Electric’s cost of sales was down 0.7% year over year to $12,453 million. It represented 73% of the quarter’s revenues versus 73.4% in the year-ago quarter. Selling, general and administrative expenses decreased 26.2% to $3,651 million. It was 21.4% of the quarter’s revenues versus 17% in the year-ago quarter. Research and development expenses totaled $641 million, reflecting an increase of 14.3%. It represented 3.8% of the quarter’s revenues versus 3.3% in the year-ago quarter. The company’s adjusted operating profit was $946 million, up 19% year over year. Margin in the quarter was 5.8%, up 90 basis points (bps). On a reported basis, the Power segment recorded operating earnings of $63 million against a loss of $87 million in the year-ago quarter. Renewable Energy recorded a loss of $434 million compared with a loss of $234 million in first-quarter 2021. The Aviation segment’s earnings were $908 million versus $641 million in the year-ago quarter. The Healthcare segment’s profits decreased 23% to $538 million. Interest and other financial charges decreased 19.6% year over year to $390 million. Balance Sheet and Cash Flow Exiting the first quarter of 2022, General Electric had cash and cash equivalents of $12.8 billion, down from $15.8 billion recorded at the end of the previous quarter. Borrowings were $28.6 billion, down from $30.8 billion at the end of the previous quarter. Non-GAAP free cash outflow totaled $880 million in the first quarter compared with $3,361 million cash outflow recorded in the year-ago quarter. Outlook For 2022, General Electric anticipates organic revenue growth in the high-single digits on a year-over-year basis. Adjusted organic profit margin is predicted to expand 150 bps from the previous year. Free cash flow will likely be $5.5-$6.5 billion for the year. Adjusted earnings per share for 2022 are anticipated to be $2.80-$3.50 per share, suggesting a rise from $1.71 recorded in 2021. Zacks Rank & Stocks to Consider The company currently carries a Zacks Rank #3 (Hold). Some better-ranked companies are discussed below. Griffon Corporation GFF presently sports a Zacks Rank #1 (Strong Buy). Its earnings surprise in the last four quarters was 56.7%, on average. You can see the complete list of today’s Zacks #1 Rank stocks here. In the past 60 days, Griffon’s earnings estimates have increased 9% for fiscal 2022 (ending September 2022). The stock has lost 14.5% in the past three months. Alcoa Corporation AA presently sports a Zacks Rank #1. Its earnings surprise in the last four quarters was 11.5%, on average. In the past 60 days, AA’s earnings estimates have increased 76.2% for 2022. The stock has rallied 16.1% in the past three months. Ferguson plc FERG presently carries a Zacks Rank of 2 (Buy). FERG delivered a trailing four-quarter earnings surprise of 14.2%, on average. Earnings estimates of Ferguson have increased 7% for fiscal 2022 (ending July 2022) in the past 60 days. FERG’s shares have declined 14.2% in the past three months. Bitcoin, Like the Internet Itself, Could Change Everything Blockchain and cryptocurrency has sparked one of the most exciting discussion topics of a generation. Some call it the “Internet of Money” and predict it could change the way money works forever. If true, it could do to banks what Netflix did to Blockbuster and Amazon did to Sears. Experts agree we’re still in the early stages of this technology, and as it grows, it will create several investing opportunities. Zacks’ has just revealed 3 companies that can help investors capitalize on the explosive profit potential of Bitcoin and the other cryptocurrencies with significantly less volatility than buying them directly. See 3 crypto-related stocks now >> Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report General Electric Company (GE): Free Stock Analysis Report Alcoa (AA): Free Stock Analysis Report Griffon Corporation (GFF): Free Stock Analysis Report Wolseley PLC (FERG): Free Stock Analysis Report To read this article on Zacks.com click here. Zacks Investment Research The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
2022-04-26 00:00:00+00:00	AA	O-I Glass' (OI) Q1 Earnings Beat Estimates, Ups '22 Guidance	O-I Glass, Inc. OI reported first-quarter 2022 adjusted earnings of 56 cents, which surpassed the Zacks Consensus Estimate of 41 cents. The bottom line came in higher than the company’s guidance of 38 cents to 43 cents. On a year-over-year basis, earnings surged 60%, driven by gains from higher sales volumes and production, favorable pricing, and benefits from OI’s ongoing margin expansion initiatives. Including one-time items, OI reported earnings per share of 55 cents for the quarter under review against a loss per share of 62 cents in the prior-year period. Operational Update Revenues increased 13% year over year to $1.69 billion for the quarter under review and beat the Zacks Consensus Estimate of $1.54 billion. Excluding the impact of recent divestitures that had an impact of $4 million, average selling prices increased 8.6% and contributed $140 million to sales. Meanwhile, shipments were up 6.4%, boosting net sales by $73 million. Unfavorable foreign currency translation had a negative impact of $37 million. Other sales were up $20 million due higher machine part sales to third parties. OI Glass, Inc. Price, Consensus and EPS Surprise OI Glass, Inc. price-consensus-eps-surprise-chart \| OI Glass, Inc. Quote Cost of sales was up 10.5% year over year to $1,388 million. Gross profit increased 25% year on year to $304 million. Gross margin was 18% for the quarter under review compared with 16.3% in the prior-year period. Selling and administrative expenses flared up 16.7% year over year to $119 million. Segment operating profit amounted to $231 million for the reported quarter, up from the prior-year period’s $175 million. The segment operating margin was 13.7%, reflecting a 200-basis point expansion year over year. Segmental Performance Net sales in the Americas segment grew 12% year over year to $940 million for the first quarter. Operating profit rose 29% year over year to $129 million. Net sales in the Europe segment were $708 million for the reported quarter, up 10.8% year over year. The segment’s operating profit surged 36% year over year to $102 million. Financial Update O-I Glass had cash and cash equivalents of $519 million at the end of the first quarter of 2022, down from the $725 million at the 2021-end. The company utilized $73 million of cash in operating activities in the quarter under review compared with the prior-year quarter’s outflow of $56 million. Its long-term debt was $4.6 billion as of Mar 31, 2022, down from $4.75 billion as of Dec 31, 2021. The company has completed or entered into sales agreements totaling $1.3 billion as part of its ongoing portfolio optimization program. O-I Glass stated that it is on track to achieve its target of $50 million of benefits this year. Outlook for 2022 For 2022, O-I Glass expects strong demand for healthy, sustainable glass containers to continue, thereby supporting its earnings. The company projects adjusted earnings per share between $1.85 and $2.10 for the current year, up from the previous $1.85-$2.00. For the current quarter, the company anticipates adjusted earnings between 55 cents and 60 cents per share. Price Performance Image Source: Zacks Investment Research Shares of the company have fallen 18.7% over the past year compared with the industry’s decline of 35.5%. Zacks Rank & Stocks to Consider O-I Glass currently carries a Zacks Rank #3 (Hold). Some better-ranked stocks in the Industrial Products sector are Alcoa AA, Sonoco Products Company SON and Greif Inc. GEF. While AA and SON flaunt a Zacks Rank #1 (Strong Buy), GEF carries a Zacks Rank #2 (Buy). You can see the complete list of today’s Zacks #1 Rank stocks here. Alcoa has a projected earnings growth rate of 107% for the current year. The Zacks Consensus Estimate for 2022 earnings has moved north by 76% in the past 60 days. Alcoa delivered a trailing four-quarter earnings surprise of 17.4% on average. Alcoa’s shares have surged 81% in the past year. Sonoco has an expected earnings growth rate of 47.6% for 2022. The Zacks Consensus Estimate for the current year’s earnings has moved up 13% in the past 60 days. SON has a trailing four-quarter earnings surprise of 1.85%, on average. SON’s shares have declined 4.5% in the past year. Greif has an estimated earnings growth rate of 16% for fiscal 2022. In the past 60 days, the Zacks Consensus Estimate for current-year earnings has been revised upward by 4.2%. GEF pulled off a trailing four-quarter earnings surprise of 14.7%, on average. The company’s shares have appreciated 5% in a year’s time. Bitcoin, Like the Internet Itself, Could Change Everything Blockchain and cryptocurrency has sparked one of the most exciting discussion topics of a generation. Some call it the “Internet of Money” and predict it could change the way money works forever. If true, it could do to banks what Netflix did to Blockbuster and Amazon did to Sears. Experts agree we’re still in the early stages of this technology, and as it grows, it will create several investing opportunities. Zacks’ has just revealed 3 companies that can help investors capitalize on the explosive profit potential of Bitcoin and the other cryptocurrencies with significantly less volatility than buying them directly. See 3 crypto-related stocks now >> Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report OI Glass, Inc. (OI): Free Stock Analysis Report Alcoa (AA): Free Stock Analysis Report Sonoco Products Company (SON): Free Stock Analysis Report Greif, Inc. (GEF): Free Stock Analysis Report To read this article on Zacks.com click here. Zacks Investment Research The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
2022-04-25 00:00:00+00:00	AA	After Plunging 26.7% in 4 Weeks, Here's Why the Trend Might Reverse for Alcoa (AA)	Alcoa (AA) has been beaten down lately with too much selling pressure. While the stock has lost 26.7% over the past four weeks, there is light at the end of the tunnel as it is now in oversold territory and Wall Street analysts expect the company to report better earnings than they predicted earlier. Here is How to Spot Oversold Stocks We use Relative Strength Index (RSI), one of the most commonly used technical indicators, for spotting whether a stock is oversold. This is a momentum oscillator that measures the speed and change of price movements. RSI oscillates between zero and 100. Usually, a stock is considered oversold when its RSI reading falls below 30. Technically, every stock oscillates between being overbought and oversold irrespective of the quality of their fundamentals. And the beauty of RSI is that it helps you quickly and easily check if a stock's price is reaching a point of reversal. So, by this measure, if a stock has gotten too far below its fair value just because of unwarranted selling pressure, investors may start looking for entry opportunities in the stock for benefitting from the inevitable rebound. However, like every investing tool, RSI has its limitations, and should not be used alone for making an investment decision. Here's Why AA Could Experience a Turnaround The heavy selling of AA shares appears to be in the process of exhausting itself, as indicated by its RSI reading of 28.59. So, the trend for the stock could reverse soon for reaching the old equilibrium of supply and demand. This technical indicator is not the only factor that calls for a potential rebound for the stock. There is a fundamental indicator as well. A strong agreement among sell-side analysts covering AA in raising earnings estimates for the current year has led to an increase in the consensus EPS estimate by 11.5% over the last 30 days. And an upward trend in earnings estimate revisions usually translates into price appreciation in the near term. Moreover, AA currently has a Zacks Rank #1 (Strong Buy), which means it is in the top 5% of more than the 4,000 stocks that we rank based on trends in earnings estimate revisions and EPS surprises. This is a more conclusive indication of the stock's potential turnaround in the near term. You can see the complete list of today's Zacks Rank #1 (Strong Buy) stocks here >>>> Just Released: Zacks' 7 Best Stocks for Today Experts extracted 7 stocks from the list of 220 Zacks Rank #1 Strong Buys that has beaten the market more than 2X over with a stunning average gain of +25.4% per year. These 7 were selected because of their superior potential for immediate breakout. See these time-sensitive tickers now >> Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report Alcoa (AA): Free Stock Analysis Report To read this article on Zacks.com click here. Zacks Investment Research The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
2022-04-25 00:00:00+00:00	AA	Sonoco (SON) Q1 Earnings Surpass Estimates, Raises View	Sonoco Products Company SON reported record adjusted earnings per share (EPS) of $1.85 in first-quarter 2022, beating the Zacks Consensus Estimate of $1.74. The figure surpassed the company’s guidance of $1.70-$1.80. The bottom line improved 85% from the prior-year quarter’s levels, driven by strong price/cost recovery across most of the businesses, the addition of Metal Packaging, and solid customer demand in the Consumer and All Other businesses Including one-time items, the company reported EPS of $1.17 compared with the year-ago quarter’s earnings per share of 71 cents. Sonoco’s net sales were a record $1.77 billion, which came in line with the Zacks Consensus Estimate. The top line surged 31% year over year, driven by higher selling prices to counter inflation, contribution from the Metal Packaging acquisition and 2% growth in volume/mix. The disposition of the company's U.S. display and packaging contract businesses in April 2021 had a negative impact. Sonoco Products Company Price, Consensus and EPS Surprise Sonoco Products Company price-consensus-eps-surprise-chart \| Sonoco Products Company Quote Operational Update Cost of sales was $1.4 billion, 30% higher than the year-earlier quarter. Gross profit in the reported quarter totaled $371.6 million compared with the prior-year quarter’s $278 million. Gross margin came in at 21% compared with the year-ago quarter’s 20.5%. Selling, general and administrative expenses amounted to $190 million, up 31% year over year. Adjusted operating income was $261 million during the reported quarter compared with the prior-year quarter’s $152 million. Operating margin came in at 14.7%, up from the year-ago quarter’s 11.3%. Segment Performance The Consumer Packaging segment’s net sales were up 49% year over year to a record $868 million, due to the addition of Ball Metalpack (Metal Packaging). The operating profit amounted to $174 million, up 113% from the prior-year quarter’s levels primarily owing to earnings added by Metal Packaging, a positive price/cost relationship, productivity improvements, and solid gains in volume/mix. Net sales in the Industrial Paper Packaging segment were a record $699 million, reflecting year-over-year growth of 24%. Operating profit totaled $73 million, reflecting a 39% year-over-year improvement on a positive price/cost recovery. Sales for the All Other segment, which comprises protective, healthcare, retail and industrial plastics units, dipped 1% year over year to $204 million. The downside was primarily due to the disposition of the display and packaging businesses last year. Operating profit for the segment totaled $15 million compared with the year-ago quarter’s $19 million. Financial Performance Sonoco reported cash and cash equivalents of $151 million at the end of the first quarter of 2022 compared with $171 million at the 2021-end. The company generated cash flow from operating activities of around $139 million in the first quarter of 2021. As of Apr 3, 2022, total debt was $3.17 billion, compared with $1.61 billion as of Dec 31, 2021. At the end of the reported quarter, Sonoco’s total debt to total capital was 62.3%. Compared to 46.5% at the end of 2021, SON’s total debt to total capital has gone up, mainly due to the issuance of unsecured notes and proceeds from a new term loan used to fund the Metal Packaging acquisition. Guidance Sonoco projects second-quarter 2022 adjusted EPS between $1.20 and $1.30. The company had reported adjusted earnings per share of 93 cents in the second quarter of 2021. For 2022, the company now expects adjusted EPS to be between $5.25 and $5.45. SON had earlier provided adjusted EPS guidance of $4.60 to $4.80 for the year. Operating cash flow for the year is expected in the range of $690-$740 million, while free cash flow is expected between $365 million and $415 million. Price Performance Image Source: Zacks Investment Research Sonoco’s shares have lost 3.6% in the past year against the industry’s growth of 3.5%. Zacks Rank and Other Stocks to Consider Sonoco currently sports a Zacks Rank #1 (Strong Buy). You can see the complete list of today’s Zacks #1 Rank stocks here. Some other top-ranked stocks in the Industrial Products sector are Alcoa AA, Packaging Corporation of America PKG and Greif Inc. GEF. While AA and PKG flaunt a Zacks Rank #1, GEF carries a Zacks Rank #2 (Buy), at present. Alcoa has a projected earnings growth rate of 107% for the current year. The Zacks Consensus Estimate for 2022 earnings has moved north by 76% in the past 60 days. Alcoa delivered a trailing four-quarter earnings surprise of 17.4% on average. Alcoa’s shares have surged 81% in the past year. Packaging Corp has an expected earnings growth rate of 12.6% for 2022. The Zacks Consensus Estimate for the current year’s earnings has moved up 9.5% in the past 60 days. PKG has a trailing four-quarter earnings surprise of 22.8%, on average. PKG’s shares have gained 13% in the past year. Greif has an estimated earnings growth rate of 16% for fiscal 2022. In the past 60 days, the Zacks Consensus Estimate for current-year earnings has been revised upward by 4.2%. GEF pulled off a trailing four-quarter earnings surprise of 14.7%, on average. The company’s shares have appreciated 5% in a year’s time. Just Released: Zacks' 7 Best Stocks for Today Experts extracted 7 stocks from the list of 220 Zacks Rank #1 Strong Buys that has beaten the market more than 2X over with a stunning average gain of +25.4% per year. These 7 were selected because of their superior potential for immediate breakout. See these time-sensitive tickers now >> Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report Alcoa (AA): Free Stock Analysis Report Sonoco Products Company (SON): Free Stock Analysis Report Packaging Corporation of America (PKG): Free Stock Analysis Report Greif, Inc. (GEF): Free Stock Analysis Report To read this article on Zacks.com click here. Zacks Investment Research The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
2022-04-25 00:00:00+00:00	AA	Alcoa Stock: High-Need Commodity, Easy to Like	Based in Pittsburgh, Alcoa (AA) is among the largest aluminum producers in the U.S. I am bullish on the stock. Aluminum is one of those elements that people don't think about often, but it's necessary to our lives and has numerous uses. From window frames and kitchen utensils to airplane parts, aluminum has a variety of essential applications. If you're seeking exposure to the aluminum market through a major U.S. stock exchange, AA stock is as solid a pick as any. After all, Alcoa is a giant company with staying power. Some people might even consider Alcoa to be an icon among American businesses. Commodities have been on fire in 2022, but not every commodities-market asset deserves your consideration and capital. With that in mind, let's apply an informed and skeptical analysis to Alcoa, the aluminum-industry legend. What's Driving Aluminum Prices? Knowing AA stock means knowing the state of the aluminum market, plain and simple. So, what's the scoop with aluminum now? Just recently, aluminum futures traded near $3,250 per tonne (metric ton). Whether this is bullish or bearish depends on one's point of view. Short-term, $3,250 indicates a sharp price pullback, due to weak demand for aluminum in China and Japan, and possibly also due to China ramping up its aluminum exports. On the other hand, if we look back to a year ago, we can see that aluminum futures cost around $2,400 per tonne in late April of 2021. In other words, aluminum is in a longer-term bull market until proven otherwise, despite the recent short-term pullback. It's not difficult to pinpoint the culprit here, as concerns over supply disruptions from Russia have put upward pressure on aluminum prices. The Alcoa stock price hasn't exactly moved in lockstep with aluminum prices, but the general trajectories have been remarkably similar. Thus, if you're going to be bullish on AA stock, you'd better also be bullish on the aluminum industry. The aluminum market is set to achieve a value of $235.8 billion by the year 2025. This figure clearly indicates strong, steady expansion for the world's aluminum market. Among the positive contributing factors will be increasing demand for aluminum in China, as well as the need for high-strength aluminum in aerospace. Also, don't be surprised if there is a greater demand for aluminum in the making of die-cast products in the automotive industry. These factors will undoubtedly benefit Alcoa. As long as aluminum remains in high demand and there's no oversupply, the aluminum price will likely stay elevated long term. That's not great for the consumers, of course, but it's good news for Alcoa's investors. Strong Quarterly Results The headline of Alcoa's most recently published quarterly financial press release says it all: "Alcoa Posts Strong Quarterly Results Supported by Robust Aluminum Pricing." Clearly, the company is acknowledging the positive impact of high aluminum prices on Alcoa's Q1 2022 results. No matter how you slice it, Alcoa had a blockbuster first quarter of the year. First of all, the company swung from a $392 million net earnings loss in Q4 2021 to a net gain of $469 million in Q1 2022. That's quite an improvement, you must admit, and it represents a quarterly net-income record for Alcoa. Alcoa president and CEO Roy Harvey acknowledged this achievement while also adding an impressive fiscal stat of his own. "We had an excellent start to the year with record profitability in the first quarter, including quarterly EBITDA that surpassed $1 billion for the first time in our history," he said. However, Harvey also acknowledged that Alcoa "captured the benefits of strengthened aluminum pricing." So again, the destiny of AA stock is closely tied to the ups and downs of the aluminum price. Wall Street’s Take According to TipRanks, AA is a Moderate Buy, based on seven Buy and six Hold ratings. The average Alcoa price target is $95.54, implying 41.8% upside potential. The Takeaway Wall Street's analysts envision strong upside potential for Alcoa stock. Still, if you're going to hold the shares, you'll definitely want to keep a close watch on the aluminum market. Wherever aluminum goes, the AA stock price is likely to follow. The correlation isn't perfect, but it's strong and an oversupply of aluminum, or a decrease in demand for aluminum, could have a negative impact on Alcoa stock. On the other hand, the data tends to suggest a robust future for the aluminum market in the coming years. Also, it's encouraging that Alcoa has shifted from a net earnings loss to a net profit. Discover new investment ideas with data you can trust. Read full Disclaimer & Disclosure The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
2022-04-25 00:00:00+00:00	AA	Analysts See 10% Upside For IYM	Looking at the underlying holdings of the ETFs in our coverage universe at ETF Channel, we have compared the trading price of each holding against the average analyst 12-month forward target price, and computed the weighted average implied analyst target price for the ETF itself. For the iShares U.S. Basic Materials ETF (Symbol: IYM), we found that the implied analyst target price for the ETF based upon its underlying holdings is $158.88 per unit. With IYM trading at a recent price near $144.33 per unit, that means that analysts see 10.08% upside for this ETF looking through to the average analyst targets of the underlying holdings. Three of IYM's underlying holdings with notable upside to their analyst target prices are Element Solutions Inc (Symbol: ESI), Alcoa Corporation (Symbol: AA), and Albemarle Corp. (Symbol: ALB). Although ESI has traded at a recent price of $20.21/share, the average analyst target is 32.36% higher at $26.75/share. Similarly, AA has 28.69% upside from the recent share price of $67.37 if the average analyst target price of $86.70/share is reached, and analysts on average are expecting ALB to reach a target price of $250.00/share, which is 24.60% above the recent price of $200.64. Below is a twelve month price history chart comparing the stock performance of ESI, AA, and ALB: Combined, ESI, AA, and ALB represent 5.99% of the iShares U.S. Basic Materials ETF. Below is a summary table of the current analyst target prices discussed above: NAME SYMBOL RECENT PRICE AVG. ANALYST 12-MO. TARGET % UPSIDE TO TARGET iShares U.S. Basic Materials ETF IYM $144.33 $158.88 10.08% Element Solutions Inc ESI $20.21 $26.75 32.36% Alcoa Corporation AA $67.37 $86.70 28.69% Albemarle Corp. ALB $200.64 $250.00 24.60% Are analysts justified in these targets, or overly optimistic about where these stocks will be trading 12 months from now? Do the analysts have a valid justification for their targets, or are they behind the curve on recent company and industry developments? A high price target relative to a stock's trading price can reflect optimism about the future, but can also be a precursor to target price downgrades if the targets were a relic of the past. These are questions that require further investor research. 10 ETFs With Most Upside To Analyst Targets » The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
2022-04-22 00:00:00+00:00	AA	Alcoa Stock Getting Very Oversold	In trading on Friday, shares of Alcoa Corporation (Symbol: AA) entered into oversold territory, changing hands as low as $66.72 per share. We define oversold territory using the Relative Strength Index, or RSI, which is a technical analysis indicator used to measure momentum on a scale of zero to 100. A stock is considered to be oversold if the RSI reading falls below 30. In the case of Alcoa Corporation, the RSI reading has hit 29.9 — by comparison, the universe of metals and mining stocks covered by Metals Channel currently has an average RSI of 43.1, the RSI of Spot Gold is at 42.6, and the RSI of Spot Silver is presently 40.1. A bullish investor could look at AA's 29.9 reading as a sign that the recent heavy selling is in the process of exhausting itself, and begin to look for entry point opportunities on the buy side. Looking at a chart of one year performance (below), AA's low point in its 52 week range is $30.995 per share, with $98.09 as the 52 week high point — that compares with a last trade of $67.83. Alcoa Corporation shares are currently trading down about 6.1% on the day. Click here to find out what 9 other oversold metals stocks you need to know about » The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
2022-04-22 00:00:00+00:00	AA	Friday's ETF Movers: MCHI, PICK	In trading on Friday, the iShares MSCI China ETF is outperforming other ETFs, up about 1.6% on the day. Components of that ETF showing particular strength include shares of Chindata Group Holdings, up about 11.6% and shares of Rlx Technology, up about 6.3% on the day. And underperforming other ETFs today is the iShares MSCI Global Metals & Mining Producers ETF, down about 4.5% in Friday afternoon trading. Among components of that ETF with the weakest showing on Friday were shares of Nucor, lower by about 6.6%, and shares of Alcoa, lower by about 6.4% on the day. VIDEO: Friday's ETF Movers: MCHI, PICK The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
2022-04-22 00:00:00+00:00	AA	Company News for Apr 22, 2022	Philip Morris International Inc.’s PM shares rose 2% after reporting first-quarter 2022 adjusted earnings of $1.56 per share, beating the Zacks Consensus Estimate of $1.48 per share. Shares of Marsh & McLennan Companies, Inc. MMC rose 2.5% after reporting first-quarter 2022 adjusted earnings of $2.30 per share, beating the Zacks Consensus Estimate of $2.13 per share. Shares of Alcoa Corporation AA nosedived 16.9% after reporting first-quarter 2022 revenues of $3,293 million, lagging the Zacks Consensus Estimate of $3,495.7 million. Carvana Co.’s CVNA shares plunged 10.1% after reporting first-quarter 2022 loss of $2.89 per share, wider than the Zacks Consensus Estimate loss of $1.72 per share. 7 Best Stocks for the Next 30 Days Just released: Experts distill 7 elite stocks from the current list of 220 Zacks Rank #1 Strong Buys. They deem these tickers "Most Likely for Early Price Pops." Since 1988, the full list has beaten the market more than 2X over with an average gain of +25.4% per year. So be sure to give these hand-picked 7 your immediate attention. See them now >> Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report Alcoa (AA): Free Stock Analysis Report Philip Morris International Inc. (PM): Free Stock Analysis Report Marsh & McLennan Companies, Inc. (MMC): Free Stock Analysis Report Carvana Co. (CVNA): Free Stock Analysis Report To read this article on Zacks.com click here. The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
2022-04-22 00:00:00+00:00	AA	Should iShares MSCI USA SmallCap Multifactor ETF (SMLF) Be on Your Investing Radar?	If you're interested in broad exposure to the Small Cap Blend segment of the US equity market, look no further than the iShares MSCI USA SmallCap Multifactor ETF (SMLF), a passively managed exchange traded fund launched on 04/28/2015. The fund is sponsored by Blackrock. It has amassed assets over $1.02 billion, making it one of the larger ETFs attempting to match the Small Cap Blend segment of the US equity market. Why Small Cap Blend Small cap companies have market capitalization below $2 billion. They usually have higher potential than large and mid cap companies with stocks but higher risk. Blend ETFs are aptly named, since they tend to hold a mix of growth and value stocks, as well as show characteristics of both kinds of equities. Costs Since cheaper funds tend to produce better results than more expensive funds, assuming all other factors remain equal, it is important for investors to pay attention to an ETF's expense ratio. Annual operating expenses for this ETF are 0.30%, putting it on par with most peer products in the space. It has a 12-month trailing dividend yield of 1.13%. Sector Exposure and Top Holdings Even though ETFs offer diversified exposure that minimizes single stock risk, investors should also look at the actual holdings inside the fund. Luckily, most ETFs are very transparent products that disclose their holdings on a daily basis. This ETF has heaviest allocation to the Healthcare sector--about 17.60% of the portfolio. Information Technology and Consumer Discretionary round out the top three. Looking at individual holdings, Marathon Oil Corp (MRO) accounts for about 1.81% of total assets, followed by Alcoa Corp (AA) and Jones Lang Lasalle Inc (JLL). The top 10 holdings account for about 11.72% of total assets under management. Performance and Risk SMLF seeks to match the performance of the MSCI USA Small Cap Diversified Multiple-Factor Index before fees and expenses. The MSCI USA Small Cap Diversified Multiple-Factor Index is designed to select equity securities from MSCI USA Small Cap Index that have high exposure to four investment style factors: value, quality, momentum and low size. The ETF has lost about -6.51% so far this year and is up roughly 1.49% in the last one year (as of 04/22/2022). In the past 52-week period, it has traded between $51.30 and $59.93. The ETF has a beta of 1.09 and standard deviation of 27.33% for the trailing three-year period, making it a high risk choice in the space. With about 501 holdings, it effectively diversifies company-specific risk. Alternatives IShares MSCI USA SmallCap Multifactor ETF carries a Zacks ETF Rank of 3 (Hold), which is based on expected asset class return, expense ratio, and momentum, among other factors. Thus, SMLF is a reasonable option for those seeking exposure to the Style Box - Small Cap Blend area of the market. Investors might also want to consider some other ETF options in the space. The iShares Russell 2000 ETF (IWM) and the iShares Core S&P SmallCap ETF (IJR) track a similar index. While iShares Russell 2000 ETF has $58.01 billion in assets, iShares Core S&P SmallCap ETF has $70.59 billion. IWM has an expense ratio of 0.19% and IJR charges 0.06%. Bottom-Line Passively managed ETFs are becoming increasingly popular with institutional as well as retail investors due to their low cost, transparency, flexibility and tax efficiency. They are excellent vehicles for long term investors. To learn more about this product and other ETFs, screen for products that match your investment objectives and read articles on latest developments in the ETF investing universe, please visit Zacks ETF Center. Want key ETF info delivered straight to your inbox? Zacks’ free Fund Newsletter will brief you on top news and analysis, as well as top-performing ETFs, each week. Get it free >> Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report iShares MSCI USA SmallCap Multifactor ETF (SMLF): ETF Research Reports Marathon Oil Corporation (MRO): Free Stock Analysis Report Alcoa (AA): Free Stock Analysis Report Jones Lang LaSalle Incorporated (JLL): Free Stock Analysis Report iShares Russell 2000 ETF (IWM): ETF Research Reports iShares Core S&P SmallCap ETF (IJR): ETF Research Reports To read this article on Zacks.com click here. Zacks Investment Research The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
2022-04-21 00:00:00+00:00	AA	Wall St ends down as Powell plops 50 bps rate hike on table	For a Reuters live blog on U.S., UK and European stock markets, click LIVE/ or type LIVE/ in a news window Fed's Powell says 50 bps rate hike 'on the table' United Airlines, American Airlines jump on earnings outlook Tesla rises after first-quarter results top estimates Markets give up early-day gains to end lower Indexes down: Dow 1.05%, S&P 1.48%, Nasdaq 2.07% Adds closing prices, Alcoa By David French April 21 (Reuters) - Wall Street's ended lower on Thursday, with the Nasdaq dropping more than 2%, as investors reacted to Federal Reserve officials including Chair Jerome Powell offering further signposting of aggressive interest rate hikes this year. A half-point interest rate increase will be "on the table" when the U.S. central bank meets on May 3-4 to approve the next in what is expected to be a series of rate increases this year, Powell said. With inflation running roughly three times the Fed's 2% target, "it is appropriate to be moving a little more quickly," Powell added in a discussion of the global economy at the meetings of the International Monetary Fund. "The market is pricing in, at least, 50 basis points in May and June," said George Catrambone, head of trading at DWS Group. "Powell, and many other Fed speakers, have been saying they want to get to control as quickly as possible, and that is saying to the market that they are going to go aggressively." Earlier on Thursday, San Francisco Federal Reserve President Mary Daly said she supports raising the U.S. central bank's target for overnight borrowing costs to 2.5% by the end of this year, but whether or how much further it will need to rise will depend on what happens with inflation and labor markets. The remarks by Fed officials hijacked initial momentum which the markets received from positive earnings. All three major indexes opened higher, boosted by strong results from heavyweight Tesla TSLA.O and airline operators. However, gains were eroded through the morning session and the S&P 500 and Nasdaq had already reversed course by the time Powell spoke. The Dow Jones Industrial Average .DJI fell 368.03 points, or 1.05%, to 34,792.76, the S&P 500 .SPX lost 65.79 points, or 1.48%, to 4,393.66 and the Nasdaq Composite .IXIC dropped 278.41 points, or 2.07%, to 13,174.65. Bond yields also breached fresh multi-year peaks. Yields on the two-year U.S. Treasury, the most sensitive to interest changes, hit their highest in three years before coming off slightly. US/ High-growth stocks, including those of Alphabet Inc GOOGL.O and Amazon.com Inc AMZN.O, fell as investors fretted about how the higher rate environment would impact their future growth potential. Meta Platforms Inc FB.O declined 6.2%, taking its losses in the last two days to 13.5%. Netflix Inc NFLX.O slumped 3.5%, taking its market capitalization below the $100 billion mark for the first time since January 2018. It was the second day of declines for the streaming giant after its quarterly earnings revealed a first drop in subscriber numbers in a decade, with further falls likely. The forecast prompted William Ackman to liquidate a $1.1 billion bet on Netflix, with the billionaire investor writing the firm's future was too uncertain to hold onto his position. The 1.7% fall in the broader technology index .SPLRCT was one of the worst among the sectors, with all 11 major industries ending lower. Energy .SPNY was hit the hardest, despite crude prices gaining. O/R Alcoa Corp AA.Nwas another to slide after posting results. The aluminum producer tumbled 16.9%, its biggest fall since March 2020, as the Russia-Ukraine conflict impacted its business. There were some bright spots though. Tesla, the world's most valuable automaker, rose 3.2% after its results beat Wall Street expectations as higher prices helped it overcome supply-chain chaos and rising costs. Airline stocks also maintained their recent momentum. United Airlines Holdings Inc UAL.O and American Airlines Group Inc AAL.Oclimbed 9.3% and 3.8%, respectively, after they predicted a return to profit in the current quarter due to booming travel demand. The volume on U.S. exchanges was 12.27 billion shares, compared with the 11.65 billion average for the full session over the last 20 trading days. The S&P 500 posted 78 new 52-week highs and 16 new lows; the Nasdaq Composite recorded 73 new highs and 367 new lows. (Reporting by Bansari Mayur Kamdar, Sruthi Shankar and Amruta Khandekar in Bengaluru and David French in New York; Editing by Marguerita Choy) ((David.French@thomsonreuters.com;)) The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
2022-04-21 00:00:00+00:00	AA	Why Alcoa Stock Is Crashing Today	What happened Shares of aluminum giant Alcoa (NYSE: AA) plunged this morning and were trading down as much as 13.1% as of 10:50 a.m. ET. Given the way Alcoa stock rose in recent weeks, today's knee-jerk reaction is a surprise as the company just delivered a strong set of first-quarter numbers. It simply failed to meet the market's expectations, and multiple analyst downgrades have only helped fueled the negative sentiment. So what Alcoa released its first-quarter earnings report yesterday evening after market close. The company's net income more than doubled year over year to $469 million on 14.7% revenue growth. So what's not to like here? The market expected Alcoa to report even higher revenue given the recent surge in aluminum prices in the wake of the Russia-Ukraine conflict. Image source: Getty Images. To be sure, Alcoa realized 14% higher average prices for aluminum sequentially, but its production volumes fell short of estimates. Alcoa's aluminum production was down 10% sequentially as it cut back production at its San Ciprián smelter in Spain. That was part of an agreement with workers who went on strike after the company started weighing options to sell or close the facility in the wake of exorbitant energy prices that made it unprofitable. Keeping the market's expectations aside, the first quarter was in fact a record quarter for Alcoa as expected in terms of profits, with its earnings before interest, tax, depreciation, and amortization (EBITDA) even surpassing $1 billion for the first time in the company's history. Now what Today's plunge in Alcoa shares is more of a forward-looking reaction from investors and analysts alike. On March 2, Alcoa said it'll stop buying raw material from and selling finished products to Russia. That also includes bauxite sales (Alcoa is one of the world's largest bauxite miners). As a result, the company has lowered its bauxite shipment projection for 2022 by 2 million metric tons. This seems to have hit a nerve with the market today even though Alcoa still expects higher aluminum and alumina prices for the second quarter. Some even fear the aluminum bull run might have run its course. Citi analyst Alexander Hacking downgraded the stock to neutral from buy while keeping its price target of $84 a share, according to TheFly.com. Hacking believes Alcoa is fairly valued given its recent rally. Analysts at BMO Capital and B. Riley also cut their ratings and price targets on the aluminum stock today. That's a lot of negativity for one day, which is why Alcoa shares are crashing so hard. 10 stocks we like better than Alcoa Corporation When our award-winning analyst team has a stock tip, it can pay to listen. After all, the newsletter they have run for over a decade, Motley Fool Stock Advisor, has tripled the market.* They just revealed what they believe are the ten best stocks for investors to buy right now... and Alcoa Corporation wasn't one of them! That's right -- they think these 10 stocks are even better buys. See the 10 stocks *Stock Advisor returns as of April 7, 2022 Citigroup is an advertising partner of The Ascent, a Motley Fool company. Neha Chamaria has no position in any of the stocks mentioned. The Motley Fool has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy. The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
2022-04-21 00:00:00+00:00	AA	AA June 3rd Options Begin Trading	Investors in Alcoa Corporation (Symbol: AA) saw new options become available today, for the June 3rd expiration. At Stock Options Channel, our YieldBoost formula has looked up and down the AA options chain for the new June 3rd contracts and identified one put and one call contract of particular interest. The put contract at the $65.00 strike price has a current bid of $1.97. If an investor was to sell-to-open that put contract, they are committing to purchase the stock at $65.00, but will also collect the premium, putting the cost basis of the shares at $63.03 (before broker commissions). To an investor already interested in purchasing shares of AA, that could represent an attractive alternative to paying $74.81/share today. Because the $65.00 strike represents an approximate 13% discount to the current trading price of the stock (in other words it is out-of-the-money by that percentage), there is also the possibility that the put contract would expire worthless. The current analytical data (including greeks and implied greeks) suggest the current odds of that happening are 99%. Stock Options Channel will track those odds over time to see how they change, publishing a chart of those numbers on our website under the contract detail page for this contract. Should the contract expire worthless, the premium would represent a 3.03% return on the cash commitment, or 25.73% annualized — at Stock Options Channel we call this the YieldBoost. Below is a chart showing the trailing twelve month trading history for Alcoa Corporation, and highlighting in green where the $65.00 strike is located relative to that history: Turning to the calls side of the option chain, the call contract at the $81.00 strike price has a current bid of $3.65. If an investor was to purchase shares of AA stock at the current price level of $74.81/share, and then sell-to-open that call contract as a "covered call," they are committing to sell the stock at $81.00. Considering the call seller will also collect the premium, that would drive a total return (excluding dividends, if any) of 13.15% if the stock gets called away at the June 3rd expiration (before broker commissions). Of course, a lot of upside could potentially be left on the table if AA shares really soar, which is why looking at the trailing twelve month trading history for Alcoa Corporation, as well as studying the business fundamentals becomes important. Below is a chart showing AA's trailing twelve month trading history, with the $81.00 strike highlighted in red: Considering the fact that the $81.00 strike represents an approximate 8% premium to the current trading price of the stock (in other words it is out-of-the-money by that percentage), there is also the possibility that the covered call contract would expire worthless, in which case the investor would keep both their shares of stock and the premium collected. The current analytical data (including greeks and implied greeks) suggest the current odds of that happening are 99%. On our website under the contract detail page for this contract, Stock Options Channel will track those odds over time to see how they change and publish a chart of those numbers (the trading history of the option contract will also be charted). Should the covered call contract expire worthless, the premium would represent a 4.88% boost of extra return to the investor, or 41.41% annualized, which we refer to as the YieldBoost. Meanwhile, we calculate the actual trailing twelve month volatility (considering the last 253 trading day closing values as well as today's price of $74.81) to be 60%. For more put and call options contract ideas worth looking at, visit StockOptionsChannel.com. Top YieldBoost Calls of the S&P 500 » The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
2022-04-21 00:00:00+00:00	AA	Daily Markets: Pace of Earnings Accelerates, Powell and Lagarde on Deck	Today’s Big Picture Asia-Pacific equity indexes ended today’s session mixed as China’s policy easing actions were deemed not strong enough for the market pushing China’s Shanghai Composite 2.26% lower, Hong Kong’s Hang Seng off 1.25% and Taiwan’s TAIEX down 0.12%. Outside of those markets, Australia’s ASX All Ordinaries rose 0.22%, Korea’s KOSPI gained 0.35%, Japan’s Nikkei advanced 1.23% and India’s Sensex led the way, closing up 1.53% on the day. By mid-day trading, major European equity indices are up across the board, and US futures point to a healthy market open later this morning. Investors and those equity futures will have to contend with the accelerating pace of March quarter earnings today as well as the 10-year real-yield for U.S. Treasuries turning positive yesterday for the first time since March 2020. That real-yield move reflects growing bets the Fed will adopt a more aggressive than previously expected rate-hiking cycle following the latest Fed Beige Book that showed inflationary pressures remained strong. At the same time, however, we are starting to see firms including Bank of America (BAC) and Nomura Asset Management voice the view that the panic over inflation and rate-hike bets have gone too far. Following that Beige Book and this morning's data that showed the Final March CPI print for the Eurozone up 7.4% YoY, we expect the market to lean into inflation and rate hike comments from Fed Chair Jerome Powell and European Central Bank President Christine Lagarde at an International Monetary Fund event later today, and the Bank of England Governor Andrew Bailey, who is speaking at a different event. As companies have taken quick steps to extract themselves from doing business in Russia, SAP SE (SAP) being the latest to shutter business in Russia after 30 years, the race for countries to become energy independent from Russia is proving to be more difficult. This ultimately should be a boon for energy companies, especially U.S. Natural Gas providers but as we discuss below, this transition will take time and a lot of planning. Data Download International Economy Final March YoY Eurozone CPI printed at 7.4%, which despite being revised down 0.1% from initial estimates is the highest this figure has ever been in the trade block’s history. This record high was realized by? A 44% YoY rise in energy prices due to the Russian invasion and ongoing war with Ukraine. Preliminary (Flash) April Eurozone Consumer Confidence fell to -22.7, lower than both the expected decline to -20 and significantly lower than March’s -11.6 reading. Germany announced it will cut Russian oil purchases in half by this summer and cease buying oil from the country by the end of 2022. Russia currently accounts for approximately 35% of German oil imports and 55% of German natural gas imports. The country has fast-tracked the development of two Liquid Natural Gas (LNG) terminals and hopes to have them operational within two years, pledging to work at “Tesla speed” to get the project completed. It is estimated that the terminals will help offset approximately 1/3 of German natural gas demand so there is clearly more work to be done before the country can claim energy independence from Russia, at least. Domestic Economy 8:30 AM ET will see the release of Weekly Initial & Continuing Jobless Claims with initial claims expected to drop to 178,000 from the previous week’s 185,000 and continuing claims are forecasted to be lower at 1.46 million compared to the previously reported 1.475 million. At the same time, we will also see the April Philadelphia Fed Index update, which looks to track manufacturing activity in the district. Expectations are for a decline to 19.8 from the previously reported 27.4. Markets The S&P 500 inched lower yesterday, dropping 0.1%, and the Dow Jones Industrial Average and Russell 2000 moved nicely higher(+0.4%) outperformed in positive territory, while the Nasdaq Composite moved lower as the market digested March quarter results from Netflix (NFLX), which closed 35% lower on the day. Gains were registered in 8 of the 11 S&P 500. Including yesterday’s moves, here’s how the major market indicators stack up thus far in 2022: Dow Jones Industrial Average: -3.2% S&P 500: -6.4% Nasdaq Composite: -14.0% Russell 2000: -9.2% Bitcoin (BTC-USD): -11.4% Ether (ETH-USD): -17.1% Stocks to Watch Before trading kicks off for U.S.-listed equities, Alaska Air (ALK), American Airlines (AAL), AT&T (T), AutoNation (AN), Dow (DOW), Nucor (NUE), Philip Morris International (PM), and Union Pacific (UNP) are expected to report their quarterly results. March quarter results at Tesla (TSLA) easily beat consensus expectations as total production at the EV company reached 305,407 vehicles, up 69% YoY and total deliveries for the quarter hit of 310,048, up 68% YoY. The company also issued an upbeat long-term forecast, shared its plans to “grow our manufacturing capacity as quickly as possible. Over a multi-year horizon, we expect to achieve 50% average annual growth in vehicle deliveries. The rate of growth will depend on our equipment capacity, operational efficiency, and the capacity and stability of the supply chain. Our own factories have been running below capacity for several quarters as supply chain became the main limiting factor, which is likely to continue through the rest of 2022." By comparison, Alcoa (AA) reported mixed March quarter results with EPS coming in ahead of expectations while revenue for the quarter, which rose 14.7% YoY, came up modestly short of expectations. For the June quarter, based on current prices, Alcoa expects both alumina and aluminum realized third-party prices to be higher than those in the March quarter, with that benefit partly offset by approximately $115 million of higher energy and raw materials costs. Higher shipments sequentially are expected to more than offset remaining cost pressures and other factors. Spurred on by the 57% YoY increase in revenue, March quarter results at Steel Dynamics (STLD) topped expectations. The company sees market conditions “for domestic steel consumption to continue to be strong this year and into 2023.” In its view, Steel Dynamics sees the automotive, industrial and energy sectors remaining solid steel consumers this year, with demand from the construction sector at the lead. Semiconductor capital equipment company Lam Research’s (LRCX) results for the March quarter missed both the revenue and EPS mark with the company sharing it is focused on resolving its supply issues as quickly as possible to support strong customer demand. For the June quarter, Lam sees EPS of $6.50-8.00 vs. the $8.23 consensus with revenue in the range of $3.90-$4.5 billion vs. the $4.45 billion consensus. Rail-based transport company CSX (CSX) delivered March quarter results that topped expectations led by revenue for the quarter that rose 21.3% YoY to $3.41 billion. An overall revenue-per-unit increase of 24% more than offset a 2% decline in volume. The company targets full year double digit revenue and operating income growth, with revenue in the near term to benefit from high coal prices and fuel surcharges. United Airlines (UAL) reported a modestly larger bottom-line loss for the March quarter with revenue that rose ~135% YoY but still missed the consensus revenue forecast of $7.68 billion for the quarter. On a positive note, the company shared it sees the current quarter being a “historic inflection point” for its business and targets being profitable for all of 2022. IPOs No companies are expected to price their IPO offerings this week. Readers looking to dig more into the upcoming IPO calendar should visit Nasdaq’s Latest & Upcoming IPOs page. After Today’s Market Close Boston Beer (SAM), CalAmp (CAMP), PPG Industries (PPG) and Snap (SNAP) are among the companies slated to report their latest quarterly results. Investors should remain on watch for companies that pre-announce their March quarter results. Those looking for more on which companies are reporting when, head on over to Nasdaq’s Earnings Calendar. On the Horizon Friday, April 22 Japan: CPI – March Japan: Markit/JMMA PMI Manufacturing (Preliminary) – April UK: Retail Sales – March Eurozone: S&P Global Manufacturing & Services PMI (Preliminary) – April UK: CIPS Manufacturing & Services PMI (Preliminary) - April US: S&P Global Manufacturing & Services PMI (Preliminary) – April Thought for the Day “Where's your will to be weird?” ~ Jim Morrison Disclosures Tesla (TSLA) is a constituent of the Tematica BITA Cleaner Living Index Tesla (TSLA) is a constituent of the Tematica BITA Cleaner Living Sustainability Screened Index AT&T (T), Philip Morris International (PM) are constituents of the Tematica Research Thematic Dividend All-Stars Index The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
2022-04-21 00:00:00+00:00	AA	Pre-market Movers: RDBX, IGIC, ESPR, EFX, CRXT…	(RTTNews) - The following are some of the stocks making big moves in Thursday's pre-market trading (as of 07.10 A.M. ET). In the Green Redbox Entertainment Inc. (RDBX) is up over 20% at $3.07 International General Insurance Holdings Ltd. (IGIC) is up over 12% at $8.94 Esperion Therapeutics, Inc. (ESPR) is up over 11% at $5.30 Clarus Therapeutics Holdings, Inc. (CRXT) is up over 10% at $2.29 Tesla, Inc. (TSLA) is up over 7% at $1,050.01 Wayfair Inc. (W) is up over 6% at $103.80 Sky Harbour Group Corporation (SKYH) is up over 6% at $6.00 Hyliion Holdings Corp. (HYLN) is up over 6% at $3.79 ABB Ltd (ABB) is up over 5% at $33.63 Golden Nugget Online Gaming, Inc. (GNOG) is up over 5% at $5.97 In the Red Equifax Inc. (EFX) is down over 10% at $198.80 Terran Orbital Corporation (LLAP) is down over 8% at $5.36 Winc, Inc. (WBEV) is down over 8% at $4.59 Aterian, Inc. (ATER) is down over 6% at $4.34 Payoneer Global Inc. (PAYO) is down over 6% at $4.07 Alcoa Corporation (AA) is down over 5% at $81.88 Vertical Aerospace Ltd. (EVTL) is down over 5% at $7.20 The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
2022-04-20 00:00:00+00:00	AA	Alcoa (AA) Q1 Earnings Top Estimates	Alcoa (AA) came out with quarterly earnings of $3.06 per share, beating the Zacks Consensus Estimate of $2.99 per share. This compares to earnings of $0.79 per share a year ago. These figures are adjusted for non-recurring items. This quarterly report represents an earnings surprise of 2.34%. A quarter ago, it was expected that this bauxite, alumina and aluminum products company would post earnings of $2.04 per share when it actually produced earnings of $2.50, delivering a surprise of 22.55%. Over the last four quarters, the company has surpassed consensus EPS estimates four times. Alcoa, which belongs to the Zacks Metal Products - Distribution industry, posted revenues of $3.29 billion for the quarter ended March 2022, missing the Zacks Consensus Estimate by 5.80%. This compares to year-ago revenues of $2.87 billion. The company has topped consensus revenue estimates three times over the last four quarters. The sustainability of the stock's immediate price movement based on the recently-released numbers and future earnings expectations will mostly depend on management's commentary on the earnings call. Alcoa shares have added about 45.3% since the beginning of the year versus the S&P 500's decline of -6.4%. What's Next for Alcoa? While Alcoa has outperformed the market so far this year, the question that comes to investors' minds is: what's next for the stock? There are no easy answers to this key question, but one reliable measure that can help investors address this is the company's earnings outlook. Not only does this include current consensus earnings expectations for the coming quarter(s), but also how these expectations have changed lately. Empirical research shows a strong correlation between near-term stock movements and trends in earnings estimate revisions. Investors can track such revisions by themselves or rely on a tried-and-tested rating tool like the Zacks Rank, which has an impressive track record of harnessing the power of earnings estimate revisions. Ahead of this earnings release, the estimate revisions trend for Alcoa: favorable. While the magnitude and direction of estimate revisions could change following the company's just-released earnings report, the current status translates into a Zacks Rank #1 (Strong Buy) for the stock. So, the shares are expected to outperform the market in the near future. You can see the complete list of today's Zacks #1 Rank (Strong Buy) stocks here. It will be interesting to see how estimates for the coming quarters and current fiscal year change in the days ahead. The current consensus EPS estimate is $3.81 on $3.85 billion in revenues for the coming quarter and $14.04 on $15.27 billion in revenues for the current fiscal year. Investors should be mindful of the fact that the outlook for the industry can have a material impact on the performance of the stock as well. In terms of the Zacks Industry Rank, Metal Products - Distribution is currently in the top 9% of the 250 plus Zacks industries. Our research shows that the top 50% of the Zacks-ranked industries outperform the bottom 50% by a factor of more than 2 to 1. One other stock from the same industry, Reliance Steel (RS), is yet to report results for the quarter ended March 2022. The results are expected to be released on April 28. This metals service-center company is expected to post quarterly earnings of $7.18 per share in its upcoming report, which represents a year-over-year change of +75.1%. The consensus EPS estimate for the quarter has been revised 1.4% higher over the last 30 days to the current level. Reliance Steel's revenues are expected to be $4.14 billion, up 45.7% from the year-ago quarter. Zacks Names "Single Best Pick to Double" From thousands of stocks, 5 Zacks experts each have chosen their favorite to skyrocket +100% or more in months to come. From those 5, Director of Research Sheraz Mian hand-picks one to have the most explosive upside of all. It’s a little-known chemical company that’s up 65% over last year, yet still dirt cheap. With unrelenting demand, soaring 2022 earnings estimates, and $1.5 billion for repurchasing shares, retail investors could jump in at any time. This company could rival or surpass other recent Zacks’ Stocks Set to Double like Boston Beer Company which shot up +143.0% in little more than 9 months and NVIDIA which boomed +175.9% in one year. Free: See Our Top Stock and 4 Runners Up >> Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report Alcoa (AA): Free Stock Analysis Report Reliance Steel & Aluminum Co. (RS): Free Stock Analysis Report To read this article on Zacks.com click here. Zacks Investment Research The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
2022-04-20 00:00:00+00:00	AA	Alcoa Q1 Profit Beats Street View	(RTTNews) - Alcoa Corp. (AA), Wednesday reported results for the first quarter, with earnings beating Street view, while revenues fell short of expectations. Pittsburgh-based Alcoa reported first-quarter profit of $469 million or $2.49 per share, compared to last year's profit of $175 million or $0.93 per share. Excluding one-time items, earnings for the quarter were $577 million or $3.06 per share, compared to last year's profit of $150 million or $0.79 per share. On average, 10 analysts polled by Thomson Reuters expected earnings of $2.93 per share. Revenues for the quarter rose to $3.29 billion from $2.87 billion a year ago. Analysts had a consensus revenue estimate of $3.45 billion. "We had an excellent start to the year with record profitability in the first quarter, including quarterly EBITDA that surpassed $1 billion for the first time in our history," said Alcoa President and CEO Roy Harvey. "We also further strengthened our portfolio, provided capital returns to our investors, and captured the benefits of strengthened aluminum pricing." Alumina shipments dropped to 2.28 million metric tons from 2.47 million metric tons last year. Aluminum shipments slipped to 634 thousand metric tons from 831 thousand metric tons last year. Bauxite shipments dropped to 0.8 million dry metric tons from 1.5 million last year. Average price per metric ton of alumina increased to $375 from $308 last year, while aluminum's average price rose to $3,861 per metric ton from $2,308 per metric ton last year. Looking forward, the company has decreased its projection for bauxite shipments in 2022 by 2 million dry metric tons to range between 46.0 and 47.0 million dry metric tons. Due to Alcoa's cessation of bauxite sales to Russian businesses, the vompany expects to slow production in its Juruti mine in Brazil by about 1.1 million dry metric tons. Further, Alcoa expects alumina and aluminum shipments to remain unchanged between 14.2 and 14.4 million metric tons, and between 2.5 and 2.6 million metric tons, respectively. For the second quarter 2022, based on current prices, Alcoa expects both alumina and aluminum realized third-party prices to be higher than the first quarter, with that benefit partly offset by approximately $115 million of higher energy and raw materials costs. AA closed Wednesday's trading at $86.93, up $0.35 or 0.40%, on the NYSE. The stock, however, slipped $3.18 or 3.66%, in the after-hours trading. The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
2022-04-20 00:00:00+00:00	AA	Alcoa Corp. Q1 Profit Increases, beats estimates	(RTTNews) - Alcoa Corp. (AA) released a profit for its first quarter that increased from last year and beat the Street estimates. The company's earnings came in at $469 million, or $2.49 per share. This compares with $175 million, or $0.93 per share, in last year's first quarter. Excluding items, Alcoa Corp. reported adjusted earnings of $577 million or $3.06 per share for the period. Analysts on average had expected the company to earn $2.93 per share, according to figures compiled by Thomson Reuters. Analysts' estimates typically exclude special items. The company's revenue for the quarter rose 14.6% to $3.29 billion from $2.87 billion last year. Alcoa Corp. earnings at a glance (GAAP) : -Earnings (Q1): $469 Mln. vs. $175 Mln. last year. -EPS (Q1): $2.49 vs. $0.93 last year. -Analyst Estimate: $2.93 -Revenue (Q1): $3.29 Bln vs. $2.87 Bln last year. The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
2022-04-20 00:00:00+00:00	AA	After-Hours Earnings Report for April 20, 2022 : TSLA, CCI, CSX, LRCX, KMI, EFX, STLD, AA, UAL, THC, CVNA, FR	The following companies are expected to report earnings after hours on 04/20/2022. Visit our Earnings Calendar for a full list of expected earnings releases. Tesla, Inc. (TSLA)is reporting for the quarter ending March 31, 2022. The auto (domestic) company's consensus earnings per share forecast from the 6 analysts that follow the stock is $1.64. This value represents a 320.51% increase compared to the same quarter last year. TSLA missed the consensus earnings per share in the 1st calendar quarter of 2021 by -11.36%. Zacks Investment Research reports that the 2022 Price to Earnings ratio for TSLA is 132.32 vs. an industry ratio of 12.10, implying that they will have a higher earnings growth than their competitors in the same industry. Crown Castle International Corporation (CCI)is reporting for the quarter ending March 31, 2022. The reit company's consensus earnings per share forecast from the 6 analysts that follow the stock is $1.72. This value represents a 0.58% increase compared to the same quarter last year. In the past year CCI has beat the expectations every quarter. The highest one was in the 4th calendar quarter where they beat the consensus by 8.59%. Zacks Investment Research reports that the 2022 Price to Earnings ratio for CCI is 27.58 vs. an industry ratio of 8.40, implying that they will have a higher earnings growth than their competitors in the same industry. CSX Corporation (CSX)is reporting for the quarter ending March 31, 2022. The transportation (rail) company's consensus earnings per share forecast from the 7 analysts that follow the stock is $0.38. This value represents a 22.58% increase compared to the same quarter last year. CSX missed the consensus earnings per share in the 1st calendar quarter of 2021 by -3.12%. Zacks Investment Research reports that the 2022 Price to Earnings ratio for CSX is 19.94 vs. an industry ratio of 9.50, implying that they will have a higher earnings growth than their competitors in the same industry. Lam Research Corporation (LRCX)is reporting for the quarter ending March 31, 2022. The capital goods company's consensus earnings per share forecast from the 10 analysts that follow the stock is $7.48. This value represents a 0.13% decrease compared to the same quarter last year. In the past year LRCX has beat the expectations every quarter. The highest one was in the 4th calendar quarter where they beat the consensus by 0.83%. Zacks Investment Research reports that the 2022 Price to Earnings ratio for LRCX is 14.72 vs. an industry ratio of 19.70. Kinder Morgan, Inc. (KMI)is reporting for the quarter ending March 31, 2022. The oil (production/pipeline) company's consensus earnings per share forecast from the 6 analysts that follow the stock is $0.27. This value represents a 55.00% decrease compared to the same quarter last year. KMI missed the consensus earnings per share in the 3rd calendar quarter of 2021 by -8.33%. Zacks Investment Research reports that the 2022 Price to Earnings ratio for KMI is 18.32 vs. an industry ratio of 14.80, implying that they will have a higher earnings growth than their competitors in the same industry. Equifax, Inc. (EFX)is reporting for the quarter ending March 31, 2022. The financial transactions company's consensus earnings per share forecast from the 15 analysts that follow the stock is $2.15. This value represents a 9.14% increase compared to the same quarter last year. In the past year EFX has beat the expectations every quarter. The highest one was in the 4th calendar quarter where they beat the consensus by 1.66%. Zacks Investment Research reports that the 2022 Price to Earnings ratio for EFX is 25.14 vs. an industry ratio of 12.00, implying that they will have a higher earnings growth than their competitors in the same industry. Steel Dynamics, Inc. (STLD)is reporting for the quarter ending March 31, 2022. The steel company's consensus earnings per share forecast from the 3 analysts that follow the stock is $5.58. This value represents a 165.71% increase compared to the same quarter last year. In the past year STLD has beat the expectations every quarter. The highest one was in the 4th calendar quarter where they beat the consensus by 0.87%. Zacks Investment Research reports that the 2022 Price to Earnings ratio for STLD is 5.13 vs. an industry ratio of 5.40. Alcoa Corporation (AA)is reporting for the quarter ending March 31, 2022. The metal production company's consensus earnings per share forecast from the 5 analysts that follow the stock is $2.99. This value represents a 278.48% increase compared to the same quarter last year. In the past year AA has beat the expectations every quarter. The highest one was in the 4th calendar quarter where they beat the consensus by 22.55%. Zacks Investment Research reports that the 2022 Price to Earnings ratio for AA is 6.17 vs. an industry ratio of 10.40. United Airlines Holdings, Inc. (UAL)is reporting for the quarter ending March 31, 2022. The airline company's consensus earnings per share forecast from the 17 analysts that follow the stock is $-4.19. This value represents a 44.13% increase compared to the same quarter last year. UAL missed the consensus earnings per share in the 1st calendar quarter of 2021 by -7.6%. Zacks Investment Research reports that the 2022 Price to Earnings ratio for UAL is -17.81 vs. an industry ratio of 0.10. Tenet Healthcare Corporation (THC)is reporting for the quarter ending March 31, 2022. The hospital company's consensus earnings per share forecast from the 7 analysts that follow the stock is $1.04. This value represents a 20.00% decrease compared to the same quarter last year. In the past year THC has beat the expectations every quarter. The highest one was in the 4th calendar quarter where they beat the consensus by 73.08%. Zacks Investment Research reports that the 2022 Price to Earnings ratio for THC is 12.84 vs. an industry ratio of 13.50. Carvana Co. (CVNA)is reporting for the quarter ending March 31, 2022. The internet company's consensus earnings per share forecast from the 10 analysts that follow the stock is $-1.71. This value represents a 271.74% decrease compared to the same quarter last year. The last two quarters CVNA had negative earnings surprises; the latest report they missed by -29.11%. Zacks Investment Research reports that the 2022 Price to Earnings ratio for CVNA is -25.51 vs. an industry ratio of 22.10. First Industrial Realty Trust, Inc. (FR)is reporting for the quarter ending March 31, 2022. The reit company's consensus earnings per share forecast from the 5 analysts that follow the stock is $0.52. This value represents a 13.04% increase compared to the same quarter last year. In the past year FR has met analyst expectations once and beat the expectations the other three quarters. Zacks Investment Research reports that the 2022 Price to Earnings ratio for FR is 29.57 vs. an industry ratio of 8.40, implying that they will have a higher earnings growth than their competitors in the same industry. The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
2022-04-20 00:00:00+00:00	AA	5 Must-Buy High-Beta Stocks Flying High in a Volatile Market	Wall Street has been reeling under severe volatility since the beginning of 2022 after witnessing astonishing rallies in the last two pandemic-ridden years. Volatility has been injected into stock markets by skyrocketing inflation, a more hawkish Fed and the ongoing war between Russia and Ukraine. Major stock indexes of Wall Street are in the red year to date even after more than a quarter. However, surprising many economists and financial experts, several high-beta stocks have popped year to date with more upside left. A handful of those stocks are currently carrying a favorable Zacks Rank. Investment in these stocks should bear fruit in the near term. Five of them are — ConocoPhillips COP, The Mosaic Co. MOS, Devon Energy Corp. DVN, Alcoa Corp. AA and Steel Dynamics Inc. STLD. Q1 2022 At a Glance The last quarter was not a good one for Wall Street. The year started with the resurgence of the Omicron variant of coronavirus, which was highly infectious but less deadly. Normal economic activities suffered to some extent in January due to Omicron. However, the major concern for the U.S. economy was galloping inflation. Several measures of inflation like consumer price index, producer price index and personal consumption expenditure price index stayed at a 40-year high during the first quarter. Moreover, the Russian military invasion over Ukraine, which started on Feb 24 and is continuing, has made the situation worse. The United States and the European Union have imposed several stringent financial sanctions on Russia including import restriction on crude oil and natural gas. Russia is a major supplier of oil and gas and several basic materials in Europe. As a result, prices of crude oil, natural gas, platinum, palladium, coal, nickel and steel soared globally. These materials are a vital input to several finished products. Finally, in order to combat skyrocketing inflation, the Fed systematically terminated the $120 billion bond-buy program in March and raised the benchmark by 25 basis points in its March FOMC. This was the first hike in interest rate in more than three years. The March FOMC minutes also revealed that Fed officials almost unanimously agreed that the central bank must reduce the size of its $9 trillion balance sheet by around $95 per month starting May. Moreover, the minutes revealed that most officials have agreed that the Fed must raise the interest rate by 50 basis points in the next two FOMC’s in May and June. As a result of these negatives, the three major stock indexes — the Dow, the S&P 500 and the Nasdaq Composite — have tumbled 3.9%, 6.4% and 13%, respectively. U.S. Economy Remains Solid Despite galloping inflation U.S. consumer spending, which accounts for nearly 70% of the economy remained steady. In March, retail sales grew 0.5% over the previous month and 6.9% year over year. February’s data was also revised upward from a gain of 0.3% to 0.8%. Industrial production rose 0.9% in March beating the consensus estimate of 0.4%. Manufacturing, the major component of industrial production also grew by 0.9%. For first-quarter 2021, industrial production climbed 8.1% year over year. The U.S. economy added 1.661 million jobs in the first quarter of 2022. Unemployment dropped to 3.6% in March. Moreover, the University of Michigan reported that the preliminary reading of U.S. consumer sentiment in April jumped to 65.7% from 59.4% in March. Our Top Picks We have selected five large-cap (market capital > $10 billion) high-beta (beta > 1) stocks that have appreciated more than 40% year to date with more upside left. These stocks have seen positive earnings estimate revisions within the last 30 days. Moreover, these companies are regular dividend payers. Finally, 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. The chart below shows the price performance of our five picks year to date. Image Source: Zacks Investment Research ConocoPhillips holds a bulk of acres in the three big unconventional plays, namely Eagle Ford shale, Delaware basin and Bakken shale, which are rich in oil. COP also has a foothold in Canada’s oil sand resources and exposure to developments related to liquefied natural gas. ConocoPhillips announced an agreement to purchase all Royal Dutch Shell assets in the prolific Permian. The deal reflects COP’s aim of broadening its Permian presence. The transaction is highly accretive and involves the acquisition of roughly 225,000 net acres in the heart of the core Delaware basin. ConocoPhillips has an expected earnings growth rate of more than 100% for the current year. The Zacks Consensus Estimate for current-year earnings has improved 2% over the last 7 days. COP has a current dividend yield of 2.2 and a beta of 1.41. The stock price has advanced 40.7% year to date. Devon Energy aims for strong oil production from the Delaware Basin holdings. Devon Energy’s presence in Delaware has expanded due to its all-stock merger deal with WPX Energy. DVN is using new technology in production process to lower expenses. Devon Energy’s divestiture of Canadian and Barnett Shale gas assets will allow it to focus on its five high-quality oil-rich U.S. basins assets. DVN’s stable free cash flow generation allows it to pay dividend and buy back shares. Devon Energy has ample liquidity to meet near-term debt obligations. Devon Energy has an expected earnings growth rate of more than 100% for the current year. The Zacks Consensus Estimate for current-year earnings has improved 0.7% over the last 7 days. DVN has a current dividend yield of 6.3% and a beta of 2.79. The stock price has surged 43% year to date. The Mosaic is likely to gain from higher demand for fertilizers. Demand for phosphate and potash in North America was strong in 2021, and the momentum is likely to continue this year. Strong grower economics and crop commodity prices are driving potash demand globally. The Vale Fertilizantes buyout is also expected to deliver significant synergies. Mosaic is also expected to benefit from its cost-reduction actions, leading to an improvement in its operating cost structure. MOS’ efforts to lower debt, streamline processes, centralize mining operations and automation are encouraging. Mosaic has an expected earnings growth rate of more than 100% for the current year. The Zacks Consensus Estimate for current-year earnings has improved 8.2% over the last 30 days. MOS has a current dividend yield of 0.58% and a beta of 1.62. The stock price has soared 98.5% year to date. Alcoa produces and sells bauxite, alumina, and aluminum products in the United States, Spain, Australia, Brazil, Canada, and internationally. AA operates through three segments: Bauxite, Alumina, and Aluminum. Alcoa is engaged in bauxite mining operations and processes bauxite into alumina and sells it to customers who process it into industrial chemical products. AA offers primary aluminum in the form of alloy ingot or value-add ingot to customers that produce products for the transportation, building and construction, packaging, wire, and other industrial markets and flat-rolled aluminum sheets to customers that produce beverage and food cans. Alcoa has an expected earnings growth rate of more than 100% for the current year. The Zacks Consensus Estimate for current-year earnings has improved 7.3% over the last 7 days. AA has a current dividend yield of 0.45% and a beta of 2.30. The stock price has climbed 45.3% year to date. Steel Dynamics is expected to gain from acquisitions as well as strong liquidity and efforts to expand capacity. The acquisitions of Heartland and United Steel Supply have boosted Steel Dynamics' shipping capabilities. Moreover, the buyout of Zimmer will support its raw material procurement strategy at its new Texas flat roll steel mill. STLD is also expected to gain from its investments to beef up capacity and upgrade facilities. Steel Dynamics is executing several projects that should add to capacity and boost profitability. The electric-arc-furnace flat roll steel mill will strengthen its steelmaking capacity and value-added product capability. Steel Dynamics has an expected earnings growth rate of 18.3% for the current year. The Zacks Consensus Estimate for current-year earnings has improved 2.4% over the last 30 days. STLD has a current dividend yield of 1.50% and a beta of 1.40. The stock price has jumped 48.2% year to date. Zacks Names "Single Best Pick to Double" From thousands of stocks, 5 Zacks experts each have chosen their favorite to skyrocket +100% or more in months to come. From those 5, Director of Research Sheraz Mian hand-picks one to have the most explosive upside of all. It’s a little-known chemical company that’s up 65% over last year, yet still dirt cheap. With unrelenting demand, soaring 2022 earnings estimates, and $1.5 billion for repurchasing shares, retail investors could jump in at any time. This company could rival or surpass other recent Zacks’ Stocks Set to Double like Boston Beer Company which shot up +143.0% in little more than 9 months and NVIDIA which boomed +175.9% in one year. Free: See Our Top Stock and 4 Runners Up >> Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report Devon Energy Corporation (DVN): Free Stock Analysis Report ConocoPhillips (COP): Free Stock Analysis Report Steel Dynamics, Inc. (STLD): Free Stock Analysis Report Alcoa (AA): Free Stock Analysis Report The Mosaic Company (MOS): Free Stock Analysis Report To read this article on Zacks.com click here. The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
2022-04-20 00:00:00+00:00	AA	Alcoa Q1 22 Earnings Conference Call At 5:00 PM ET	(RTTNews) - Alcoa Corp. (AA) will host a conference call at 5:00 PM ET on April 20, 2022, to discuss Q1 22 earnings results. To access the live webcast, log on to https://investors.alcoa.com/events-and-presentations/events-calendar/default.aspx To listen to the call, dial +1 (877) 883-0383 (US) or +1 (412) 902-6506 (International), Conference ID: 7011954. For a replay call, dial +1 (877) 344-7529 (US) or +1 (412) 317-0088 (International), Access Code: 1466642. The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
2022-04-19 00:00:00+00:00	AA	iShares Core S&P Mid-Cap ETF Experiences Big Outflow	Looking today at week-over-week shares outstanding changes among the universe of ETFs covered at ETF Channel, one standout is the iShares Core S&P Mid-Cap ETF (Symbol: IJH) where we have detected an approximate $483.8 million dollar outflow -- that's a 0.8% decrease week over week (from 246,450,000 to 244,600,000). Among the largest underlying components of IJH, in trading today Targa Resources Corp (Symbol: TRGP) is up about 1%, Steel Dynamics Inc. (Symbol: STLD) is up about 0.7%, and Alcoa Corporation (Symbol: AA) is lower by about 3.5%. For a complete list of holdings, visit the IJH Holdings page » The chart below shows the one year price performance of IJH, versus its 200 day moving average: Looking at the chart above, IJH's low point in its 52 week range is $247.6868 per share, with $292.05 as the 52 week high point — that compares with a last trade of $265.43. Comparing the most recent share price to the 200 day moving average can also be a useful technical analysis technique -- learn more about the 200 day moving average ». Exchange traded funds (ETFs) trade just like stocks, but instead of ''shares'' investors are actually buying and selling ''units''. These ''units'' can be traded back and forth just like stocks, but can also be created or destroyed to accommodate investor demand. Each week we monitor the week-over-week change in shares outstanding data, to keep a lookout for those ETFs experiencing notable inflows (many new units created) or outflows (many old units destroyed). Creation of new units will mean the underlying holdings of the ETF need to be purchased, while destruction of units involves selling underlying holdings, so large flows can also impact the individual components held within ETFs. Click here to find out which 9 other ETFs experienced notable outflows » The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
2022-04-18 00:00:00+00:00	AA	Will Strength in Aluminum Benefit Alcoa (AA) in Q1 Earnings?	Alcoa Corporation AA is set to release first-quarter 2022 results on Apr 20, after market close. The company’s Aluminum segment is engaged in aluminum smelting and casting operations. It offers primary aluminum in the form of alloy ingot or value-add ingot to its customers across several sectors, including construction, wire, packaging, automobile and industrial. Key Factors to Note The Aluminum segment is anticipated to have benefited from strong production for aluminum, supported by higher price levels in the first quarter of 2022. Solid demand for aluminum products from its customers is likely to have been beneficial for the segment. Also, Alcoa’s efforts to offer new products and focus on improving operational efficiency and commercial effectiveness are anticipated to have aided the segment in the to-be-reported quarter. An increase in demand for value-add products, a restart of the Bécancour smelter and growth investments are likely to have supported the segment’s performance. Also, the company’s cost-saving actions and supply-chain initiatives are likely to have been favorable in the quarter. Higher raw materials and energy costs might have adversely impacted the segment’s margins. The divestment of its Warrick Rolling Mill facility is expected to have hurt the shipment volume, hurting its profitability. For the first quarter of 2022, the Zacks Consensus Estimate Aluminum segment’s revenues is pegged at $2,847 million, suggesting growth of 38.9% from the year-ago quarter’s reported number but a 22.3% increase from the previous quarter’s figure. (Read more: Alcoa to Report Q1 Earnings: What’s in the Offing?) Alcoa Price and EPS Surprise Alcoa price-eps-surprise \| Alcoa Quote Zacks Rank & Other Upcoming Releases Alcoa currently sports a Zacks Rank #1 (Strong Buy). You can see the complete list of today’s Zacks #1 Rank stocks here. Some stocks in the Zacks Industrial Products sector, which are also slated to report their results soon, are ABB Ltd ABB, Roper Technologies, Inc. ROP and A. O. Smith Corporation AOS. ABB will release results on Apr 21, Roper on Apr 26 and A. O. Smith on Apr 28. The Zacks Consensus Estimate for ABB’s earnings is pegged at 34 cents per share for the to-be-reported quarter. The Zacks Rank #3 (Hold) company’s shares have lost 15.8% in the past three months. The Zacks Consensus Estimate for Roper’s earnings is pegged at $3.69 per share for the to-be-reported quarter. The Zacks Rank #2 (Buy) company’s shares have gained 3.5% in the past three months. The Zacks Consensus Estimate for A. O. Smith’s earnings is pegged at 76 cents per share for the to-be-reported quarter. The Zacks Rank #3 stock’s shares have lost 21% in the past three months. Stay on top of upcoming earnings announcements with the Zacks Earnings Calendar. Just Released: Zacks Top 10 Stocks for 2022 In addition to the investment ideas discussed above, would you like to know about our 10 top buy-and-hold tickers for the entirety of 2022? Last year's 2021 Zacks Top 10 Stocks portfolio returned gains as high as +147.7%. Now a brand-new portfolio has been handpicked from over 4,000 companies covered by the Zacks Rank. Don’t miss your chance to get in on these long-term buys Access Zacks Top 10 Stocks for 2022 today >> Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report Alcoa (AA): Free Stock Analysis Report Roper Technologies, Inc. (ROP): Free Stock Analysis Report A. O. Smith Corporation (AOS): Free Stock Analysis Report ABB Ltd (ABB): Free Stock Analysis Report To read this article on Zacks.com click here. Zacks Investment Research The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
2022-04-18 00:00:00+00:00	AA	Will Alumina and Bauxite Benefit Alcoa's (AA) Q1 Earnings?	Alcoa Corporation AA is set to release first-quarter 2022 results on Apr 20, after market close. The company’s Bauxite segment is engaged in bauxite mining operations and processes bauxite into alumina with the help of the bayer process to sell it to customers. The company’s Alumina segment comprises its refining system, which is used for processing bauxite into alumina. Key Factors to Note In the past few quarters, the Bauxite segment’s performance has been strengthening Alcoa’s revenues. It has been gaining primarily from the increased demand for bauxite from its own refineries and third-party customers. Also, its focus on improving operational efficiency supported by its pricing actions is anticipated to have aided the segment in the to-be-reported quarter. However, lower shipment volume for bauxite and supply-chain challenges might have affected its performance. For the first quarter of 2022, the Zacks Consensus Estimate for Bauxite segment’s revenues is pegged at $234 million, suggesting a 3.7% decline from the year-ago quarter’s reported number and a 9.3% fall from the previous quarter’s figure. The company’s project for high purity alumina production and its efforts to offer new products, cost-saving actions and solid orders are likely to have aided Alumina segment’s performance in the first quarter. Growing popularity for the company’s Sustana and EcoSource line of products, supported by higher prices, is likely to have boosted its performance in the quarter. However, higher raw materials and energy costs might have affected its margins. For the first quarter of 2022, the Zacks Consensus Estimate Alumina segment’s revenues is pegged at $1,307 million, suggesting growth of 16.3% from the year-ago quarter’s reported number but a 10.8% decrease from the previous quarter’s figure. (Read more: Alcoa to Report Q1 Earnings: What’s in the Offing?) Alcoa Price and EPS Surprise Alcoa price-eps-surprise \| Alcoa Quote Zacks Rank & Other Upcoming Releases Alcoa currently sports a Zacks Rank #1 (Strong Buy).You can see the complete list of today’s Zacks #1 Rank stocks here. Some companies in the Zacks Industrial Products sector, which are also slated to report their results soon, are ABB Ltd ABB, Roper Technologies, Inc. ROP and A. O. Smith Corporation AOS. ABB will release results on Apr 21, Roper on Apr 26 and A. O. Smith on Apr 28. The Zacks Consensus Estimate for ABB’s earnings is pegged at 34 cents per share for the to-be-reported quarter. The Zacks Rank #3 (Hold) company’s shares have lost 15.8% in the past three months. The Zacks Consensus Estimate for Roper’s earnings is pegged at $3.69 per share for the to-be-reported quarter. The Zacks Rank #2 (Buy) company’s shares have gained 3.5% in the past three months. The Zacks Consensus Estimate for A. O. Smith’s earnings is pegged at 76 cents per share for the to-be-reported quarter. The Zacks Rank #3 stock’s shares have lost 21% in the past three months. Stay on top of upcoming earnings announcements with the Zacks Earnings Calendar. Just Released: Zacks Top 10 Stocks for 2022 In addition to the investment ideas discussed above, would you like to know about our 10 top buy-and-hold tickers for the entirety of 2022? Last year's 2021 Zacks Top 10 Stocks portfolio returned gains as high as +147.7%. Now a brand-new portfolio has been handpicked from over 4,000 companies covered by the Zacks Rank. Don’t miss your chance to get in on these long-term buys Access Zacks Top 10 Stocks for 2022 today >> Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report Alcoa (AA): Free Stock Analysis Report Roper Technologies, Inc. (ROP): Free Stock Analysis Report A. O. Smith Corporation (AOS): Free Stock Analysis Report ABB Ltd (ABB): Free Stock Analysis Report To read this article on Zacks.com click here. Zacks Investment Research The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
2022-04-18 00:00:00+00:00	AA	Alcoa (AA) to Report Q1 Earnings: What's in the Offing?	Alcoa Corporation AA is set to release first-quarter 2022 results on Apr 20, after market close. The company’s earnings beat estimates in each of the last four quarters, the earnings surprise being 27.08%, on average. In the last reported quarter, Alcoa’s earnings of $2.50 per share beat the Zacks Consensus Estimate of $2.04 by 22.55%. Image Source: Zacks Investment Research In the past three months, the company’s shares have gained 46.1% compared with the industry’s rise of 21.2%. Factors to Consider Alcoa is anticipated to have benefited from strong demand for aluminum and value-add products in the first quarter. High shipment volume for smelter grade alumina and aluminium on strong production supported by higher prices is likely to have augmented top-line performance of the company. Also, its efforts to improve bauxite production might have proved beneficial in the to-be-reported quarter. Growth in popularity for the company’s Sustana and EcoSource line of products is likely to have boosted its performance in the quarter. Alcoa’s focus on operational execution and commercial effectiveness, along with its application of digital technologies in operations and cost-control measures, might have boosted its margins and profitability in the to-be-reported quarter. However, lower shipment volume for bauxite and supply-chain challenges across end markets are likely to have adversely impacted AA’s performance in the first quarter. Also, given the company’s extensive geographic presence, its operations are subject to global economic, political risks and forex woes. A stronger U.S. dollar might have hurt Alcoa's overseas business in first-quarter 2022. The Zacks Consensus Estimate for the company’s first-quarter total revenues is currently pegged at $3,496 million, suggesting 21.8% and 4.7% growth from the year-ago and the quarter-ago reported numbers, respectively. The consensus estimate for earnings of $3.05 implies an improvement of 286.1% year over year and 22% sequentially. Earnings Whispers According to our quantitative model, a stock needs to have the combination of a positive Earnings ESP and a Zacks Rank #1 (Strong Buy), 2 (Buy) or at least 3 (Hold) to increase the odds of an earnings beat. You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter. This is not the case here as given below: Earnings ESP: Alcoa has an Earnings ESP of -0.21%. Alcoa Price and EPS Surprise Alcoa price-eps-surprise \| Alcoa Quote Zacks Rank: The company sports a Zacks Rank #1. Key Picks Here are some other companies you may want to consider from the Zacks Industrial Products sector, as our model shows that these have the right combination of elements to post an earnings beat: AGCO Corporation AGCO has an Earnings ESP of +1.91% and a Zacks Rank of 3, currently. You can see the complete list of today’s Zacks #1 Rank stocks here. The Zacks Consensus Estimate for AGCO’s earnings is pegged at $1.89 per share for the to-be-reported quarter. AGCO’s shares have gained 11.8% in the past three months. A. O. Smith Corporation AOS has an Earnings ESP of +1.99% and a Zacks Rank of 3, currently. The Zacks Consensus Estimate for A. O. Smith’s earnings is pegged at 76 cents per share for the to-be-reported quarter. AOS’s shares have lost 21% in the past three months. Parker-Hannifin Corporation PH has an Earnings ESP of +0.82% and a Zacks Rank of 3 at present. The Zacks Consensus Estimate for Parker-Hannifin’s earnings is pegged at $4.61 per share for the to-be-reported quarter. PH’s shares have lost 16.5% in the past three months. Stay on top of upcoming earnings announcements with the Zacks Earnings Calendar. Just Released: Zacks Top 10 Stocks for 2022 In addition to the investment ideas discussed above, would you like to know about our 10 top buy-and-hold tickers for the entirety of 2022? Last year's 2021 Zacks Top 10 Stocks portfolio returned gains as high as +147.7%. Now a brand-new portfolio has been handpicked from over 4,000 companies covered by the Zacks Rank. Don’t miss your chance to get in on these long-term buys Access Zacks Top 10 Stocks for 2022 today >> Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report Alcoa (AA): Free Stock Analysis Report ParkerHannifin Corporation (PH): Free Stock Analysis Report AGCO Corporation (AGCO): Free Stock Analysis Report A. O. Smith Corporation (AOS): Free Stock Analysis Report To read this article on Zacks.com click here. Zacks Investment Research The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
2022-04-17 00:00:00+00:00	AA	Weekly Preview: Earnings To Watch This Week (AA, IBM, NFLX, TSLA)	T he stock market took a much-needed break on Friday in observance of Good Friday. But it wasn’t before equities finished lower Thursday, logging sharp declines for the second consecutive week. However, investors received confirmation on what they've known for several weeks each time they've pulled out their wallet -- inflation picked up again in March. Earlier in the week, the U.S. Department of Labor reported the consumer price index (CPI) surged 8.5% on the year in March — the hottest inflation reading since December 1981. The CPI measures the cost of a group of everyday items such as food and gas. It’s true that wages for many Americans have also risen over the past year. But for many workers, it hasn't risen enough to keep up pace with inflation. And this will force households to make tough decisions on what they are willing to cut back on. Evidenced by the market’s reaction during the abbreviated trading week, with all three major averages booking weekly declines, investors aren’t taking chances that things will immediately improve. The Dow Jones Industrial Average gave up 113.36 points, or 0.3%, to end Thursday’s session at 34,451.23. Among the Dow’s notable decliners were Apple (AAPL), Salesforce (CRM) and Walt Disney (DIS). The S&P 500 lost 54 points, or 1.2%, finishing at 4,392.59, while the tech-heavy Nasdaq Composite dropped 292.51 points, or 2.1%, to close at 13,351.08. The Nasdaq was pressured by 3.66% decline in shares of Tesla (TSLA) which has been in the news lately, particularly because of CEO Elon Musk’s $43 billion takeover bid for social media giant Twitter (TWTR). Reports of supply chain disruptions was also a headwind for many technology companies, notably Apple which declined 3%. For the week, the Nasdaq Composite was the biggest decliner, falling 2.6%, while the S&P 500 gave up 2.1%. Recording a third straight week of losses, the Dow lost 0.8%. These declines come despite what has been somewhat encouraging quarterly earnings results from banking heavyweights such as Goldman Sachs (GS), Morgan Stanley (MS) and Wells Fargo (WFC). While the results from the banks weren’t stellar in the broad sense, the group was facing tough year-over-year comparisons. Plus, estimates had called for year-over-year declines for the sector. Nevertheless, first quarter earnings season kicks into high gear with results expected from technology heavyweight Netflix. Can earnings pull tech stocks out of the doldrums? Netflix is one of several names worth watching this week: IBM (IBM) - Reports after the close, Tuesday, Apr. 19 Wall Street expects IBM to earn $1.39 per share on revenue of $13.87 billion. This compares to the year-ago quarter when earning were $1.77 per share on $17.34 billion in revenue. What to watch: IBM has always been a great stock to buy for dividend investors, but has the company become more appealing to growth investors as well? The tech giant has struggled to grow revenues over the past decade and has not benefited in the massive economic expansion that saw cloud leaders such as Amazon (AMZN) and Microsoft (MSFT) produce double-digit revenue gains. But as it transitions away from its legacy businesses, IBM’s turnaround has seemingly begun. The company’s cloud ambitions have shown some promise in recent quarters and has provided ample revenue strength to support a higher multiple, thanks to its Red Hat acquisition, which modernized its cloud business. Citing the quality of IBM’s new leadership, namely CEO Arvind Krishna, Morgan Stanley analyst Erik Woodring recently raised his rating on the stock to Overweight from equal-weight, and inched the price target to $150 per share from $147. It appears the market is giving IBM more credit for the recent traction the company has made towards the cloud. But for the the shares to maintain their uptrend, the company on Tuesday will need to demonstrate continued operating leverage and revenue growth acceleration. Netflix (NFLX) - Reports after the close, Tuesday, Apr. 19 Wall Street expects Netflix to earn $2.90 per share on revenue of $7.93 billion. This compares to the year-ago quarter when earnings were $3.75 per share on $7.16 billion in revenue. What to watch: Netflix stock has underperformed the market significantly in 2022, falling 35% and 46% in the respective three and six months. The stock has also plunged 38% and 37% over the past nine months and 12 months, respectively. Is now a buying opportunity? Not according to Benjamin Swinburne, analyst at Morgan Stanley. Citing declining estimates for net subscriber additions, Swinburne recently trimmed estimates and his price target on Netflix to $425 per share, down from $450. Although he kept his Equal Weight rating intact, the analyst cut his Q1 estimate for global paid net new subscribers down from 2.5 million to 2 million. While the market broadly expects Netflix to remain a successful streamer in 2022, Swinburne said he doesn’t expect Netflix to grow new subscribers its pre-pandemic rate of about at the 25 million per year. This has prompted some investors to wonder whether the company can maintain its status as the king of streaming. That question will be answered when Netflix issues its guidance forecast for the next quarter and full year. Alcoa (AA) - Reports after the close, Wednesday, Apr. 20 Wall Street expects Alcoa to earn $2.90 per share on revenue of $3.44 billion. This compares to the year-ago quarter when earnings came to 79 cents per share on revenue of $2.65 billion. What to watch: Shares of the aluminum giant continues to shine, rising some 20% over the past month and more than 80% over the past six months. Not only is the stock up almost 50% year over date, compared with the 8% drop in the S&P 500 index, if you’ve bought and held Alcoa stock in the previous 52 weeks, you’re sitting pretty with a gain of 163%. During that span the S&P 500 is up just 6.5%. The rise in metal stocks have been driven by optimism surrounding infrastructure spending aimed at repairing the country’s airports, roads and bridges, among other projects. But this might be as good as it gets for Alcoa, according to analysts at Credit Suisse, who recently downgraded the stock from Outperform to Neutral. Analyst Curt Woodworth writes noted that “supply/demand balances will start to normalize” in the second half of the year. Aluminum is used in a broad range of industrial and consumer end markets, and while there appears to be support for higher aluminum prices in the near term, Alcoa on Wednesday must speak positively about the demand/supply outlook for the next several quarters to prevent Alcoa stock from losing its luster. Tesla (TSLA) - Reports after the close, Wednesday, Apr. 20 Wall Street expects Tesla to earn $2.26 per share on revenue of $17.78 billion. This compares to the year-ago quarter when earnings came to 93 cents per share on revenue of $10.39 billion. What to watch: Tesla shares have been one of the better performing stocks among tech, rising 30% over the past months and 20% in six months, besting the S&P 500 index in both spans. The market has applauded the company’s delivery totals in the most-recent quarter as Tesla enjoyed strong year-over-year growth. Tesla produced 305,000 vehicles and delivered 310,000 vehicles, for an annual production run-rate of roughly 1.2 million vehicles. Estimates suggests Tesla will exit 2022 with an annual run-rate of more than 2 million vehicles. This would be an impressive achievement given the increased competition not only from upstarts like Lucid (LCID) and Rivian (RIVN), but also from traditional manufacturing titans like General Motors (GM) and Ford (F). While Tesla’s increased focus on its growth strategy, namely production and profit margins, have been a major factor in the company’s recent success, the company’s production and delivery guidance for 2022 will be the main driver of the stock on Wednesday. The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
2022-04-14 00:00:00+00:00	AA	Alcoa (AA) Gains As Market Dips: What You Should Know	In the latest trading session, Alcoa (AA) closed at $87.77, marking a +0.4% move from the previous day. This move outpaced the S&P 500's daily loss of 1.21%. At the same time, the Dow lost 0.33%, and the tech-heavy Nasdaq lost 0.19%. Coming into today, shares of the bauxite, alumina and aluminum products company had gained 15.59% in the past month. In that same time, the Industrial Products sector gained 1.77%, while the S&P 500 gained 5.85%. Alcoa will be looking to display strength as it nears its next earnings release, which is expected to be April 20, 2022. The company is expected to report EPS of $2.90, up 267.09% from the prior-year quarter. Meanwhile, the Zacks Consensus Estimate for revenue is projecting net sales of $3.44 billion, up 19.86% from the year-ago period. AA's full-year Zacks Consensus Estimates are calling for earnings of $13.09 per share and revenue of $14.69 billion. These results would represent year-over-year changes of +91.65% and +20.91%, respectively. It is also important to note the recent changes to analyst estimates for Alcoa. Recent revisions tend to reflect the latest near-term business trends. As a result, we can interpret positive estimate revisions as a good sign for the company's business outlook. Based on our research, we believe these estimate revisions are directly related to near-team stock moves. To benefit from this, we have developed the Zacks Rank, a proprietary model which takes these estimate changes into account and provides an actionable rating system. The Zacks Rank system, which ranges from #1 (Strong Buy) to #5 (Strong Sell), has an impressive outside-audited track record of outperformance, with #1 stocks generating an average annual return of +25% since 1988. Within the past 30 days, our consensus EPS projection has moved 25.07% higher. Alcoa is holding a Zacks Rank of #1 (Strong Buy) right now. Looking at its valuation, Alcoa is holding a Forward P/E ratio of 6.68. This represents a discount compared to its industry's average Forward P/E of 9.95. The Metal Products - Distribution industry is part of the Industrial Products sector. This group has a Zacks Industry Rank of 20, putting it in the top 8% of all 250+ industries. The Zacks Industry Rank gauges the strength of our individual industry groups by measuring the average Zacks Rank of the individual stocks within the groups. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1. Make sure to utilize Zacks.com to follow all of these stock-moving metrics, and more, in the coming trading sessions. Zacks Names "Single Best Pick to Double" From thousands of stocks, 5 Zacks experts each have chosen their favorite to skyrocket +100% or more in months to come. From those 5, Director of Research Sheraz Mian hand-picks one to have the most explosive upside of all. It’s a little-known chemical company that’s up 65% over last year, yet still dirt cheap. With unrelenting demand, soaring 2022 earnings estimates, and $1.5 billion for repurchasing shares, retail investors could jump in at any time. This company could rival or surpass other recent Zacks’ Stocks Set to Double like Boston Beer Company which shot up +143.0% in little more than 9 months and NVIDIA which boomed +175.9% in one year. Free: See Our Top Stock and 4 Runners Up >> Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report Alcoa (AA): Free Stock Analysis Report To read this article on Zacks.com click here. The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

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