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2023-12-11
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RS
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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 $210.5 million dollar inflow -- that's a 0.3% increase week over week in outstanding units (from 281,000,000 to 281,800,000). Among the largest underlying components of IJH, in trading today Deckers Outdoor Corp. (Symbol: DECK) is up about 1.3%, Builders FirstSource Inc. (Symbol: BLDR) is up about 0.3%, and Reliance Steel & Aluminum Co. (Symbol: RS) is up by about 0.7%. 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 $231.49 per share, with $273.73 as the 52 week high point — that compares with a last trade of $263.76. 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 ».
Free Report: Top 8%+ Dividends (paid monthly)
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 had notable inflows »
Also see:
AIN Dividend History
SWM Price Target
ABEO Stock Predictions
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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2023-12-11
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RS
|
If you're interested in broad exposure to the Mid Cap Blend segment of the US equity market, look no further than the Vanguard S&P Mid-Cap 400 ETF (IVOO), a passively managed exchange traded fund launched on 09/09/2010.
The fund is sponsored by Vanguard. It has amassed assets over $1.70 billion, making it one of the average sized 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, companies that fall under this category provide a stable and growth-heavy investment.
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
Investors should also pay attention to an ETF's expense ratio. Lower cost products will produce better results than those with a higher cost, assuming all other metrics remain the same.
Annual operating expenses for this ETF are 0.10%, 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 23.20% of the portfolio. Consumer Discretionary and Financials round out the top three.
Looking at individual holdings, Builders Firstsource Inc. (BLDR) accounts for about 0.78% of total assets, followed by Reliance Steel & Aluminum Co. (RS) and Hubbell Inc. (HUBB).
The top 10 holdings account for about 6.29% of total assets under management.
Performance and Risk
IVOO 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-cap segment of the U.S. equity universe. The Index is a capitalization-weighted index composed of 400 domestic common stocks.
The ETF has added roughly 9.90% so far this year and is up about 7.07% in the last one year (as of 12/11/2023). In the past 52-week period, it has traded between $78.64 and $92.16.
The ETF has a beta of 1.13 and standard deviation of 20.60% for the trailing three-year period, making it a medium risk choice in the space. With about 402 holdings, it effectively diversifies company-specific risk.
Alternatives
Vanguard S&P Mid-Cap 400 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, IVOO 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 Mid-Cap ETF (VO) and the iShares Core S&P Mid-Cap ETF (IJH) track a similar index. While Vanguard Mid-Cap ETF has $56.04 billion in assets, iShares Core S&P Mid-Cap ETF has $74.04 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 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
Vanguard S&P Mid-Cap 400 ETF (IVOO): ETF Research Reports
Reliance Steel & Aluminum Co. (RS) : Free Stock Analysis Report
Builders FirstSource, Inc. (BLDR) : Free Stock Analysis Report
Hubbell Inc (HUBB) : Free Stock Analysis Report
iShares Core S&P Mid-Cap ETF (IJH): ETF Research Reports
Vanguard Mid-Cap 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.
|
2023-12-04
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RS
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Reliance Steel & Aluminum Co. RS is benefiting from strong demand across key end-use markets, a diversified product base and strategic acquisitions amid headwinds from weak pricing.
Shares of Reliance Steel have gained 33.6% in the past year compared with 4.5% rise of the industry.
Image Source: Zacks Investment Research
Reliance Steel, a Zacks Rank #3 (Hold) stock, is gaining from strong underlying demand in its major markets. Demand in non-residential construction, the company’s biggest market, increased in the third quarter of 2023. Based on the current sentiment of customers and existing backlogs, the company maintains an optimistic outlook for the fourth quarter, anticipating that non-residential construction activities in the sectors it operates in will remain healthy, with consideration for the usual seasonal variations.
Commercial aerospace demand also remained strong in the third quarter. Reliance expects commercial aerospace demand to stay healthy in the fourth quarter as build rates grow from current levels. Moreover, demand in the company’s aerospace business's military, defense and space segments remains robust, with substantial backlogs.
Reliance Steel is also seeing higher year-over-year demand for toll processing services for the automobile market. The company’s niche position in providing toll processing services to the automotive market, particularly with the ongoing rise in aluminum usage, instills optimism for long-term demand in this sector.
Moreover, RS has been following an aggressive acquisition strategy for a while as part of its core business policy to drive operating results. The acquisitions of Rotax Metals, Admiral Metals and Nu-Tech Precision Metals are in sync with its strategy of investing in high-quality businesses. The acquisition of Southern Steel Supply also expands the company’s reach in the Southern United States and boosts its value-added processing services.
However, Reliance Steel continues to face pricing pressure as witnessed in the third quarter. The average selling price per ton sold for the quarter fell 16% from the year-ago quarter. Weaker pricing hurt its sales and bottom line in the quarter. RS expects its average selling price per ton sold to decrease 4-6% sequentially in the fourth quarter. Lower selling prices are expected to affect its fourth-quarter performance. The company anticipates a modest reduction in its gross profit margin in the fourth quarter due to these declining price trends.
Moreover, lower sequential shipments are expected to impact the company top line in the fourth quarter. Reliance Steel expects a 4-6% decline in tons sold in the fourth quarter from the third quarter, in line with typical seasonal patterns.
Reliance Steel & Aluminum Co. Price and Consensus
Reliance Steel & Aluminum Co. price-consensus-chart | Reliance Steel & Aluminum Co. Quote
Stocks to Consider
Better-ranked stocks worth a look in the basic materials space include Denison Mines Corp. DNN, Axalta Coating Systems Ltd. AXTA and The Andersons Inc. ANDE.
Denison Mines has a projected earnings growth rate of 100% for the current year. DNN has a trailing four-quarter earnings surprise of roughly 225%, on average. The stock is up around 61% in a year. It currently carries a Zacks Rank #1 (Strong Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.
In the past 60 days, the Zacks Consensus Estimate for Axalta Coating Systems’ current year has been revised upward by 8.2%. AXTA, carrying a Zacks Rank #1, beat the Zacks Consensus Estimate in three of the last four quarters while missing in one quarter, with the average earnings surprise being 6.7%. The company’s shares have gained around 21% in the past year.
Andersons currently carries a Zacks Rank #2 (Buy). The Zacks Consensus Estimate for ANDE's current-year earnings has been revised 5.1% upward over the past 60 days. Andersons beat the Zacks Consensus Estimate in three of the last four quarters. It delivered a trailing four-quarter earnings surprise of 32.8%, on average. ANDE shares have rallied roughly 45% in a 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 credited with a “watershed medical breakthrough” and is developing a bustling pipeline of other projects that could make a world of difference for patients suffering from diseases involving the liver, lungs, and blood. This is a timely investment that you can catch while it emerges from its bear market lows.
It could rival or surpass other recent 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 Andersons, Inc. (ANDE) : Free Stock Analysis Report
Reliance Steel & Aluminum Co. (RS) : Free Stock Analysis Report
Denison Mine Corp (DNN) : Free Stock Analysis Report
Axalta Coating Systems Ltd. (AXTA) : 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.
|
2023-12-01
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RS
|
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 $204.9 million dollar inflow -- that's a 0.3% increase week over week in outstanding units (from 280,300,000 to 281,100,000). Among the largest underlying components of IJH, in trading today Reliance Steel & Aluminum Co. (Symbol: RS) is up about 1.1%, GoDaddy Inc (Symbol: GDDY) is off about 0.7%, and Manhattan Associates, Inc. (Symbol: MANH) is higher by about 0.6%. 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 $231.49 per share, with $273.73 as the 52 week high point — that compares with a last trade of $257.74. 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 had notable inflows »
Also see:
Berry Global Gr Historical PE Ratio
Top Ten Hedge Funds Holding FSL
DYNS market cap history
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
|
2023-11-29
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RS
|
Reliance Steel & Aluminum Co.’s RS shares have shot up 33% year to date. The company has also outperformed its industry’s rise of 3.7% over the same time frame. Moreover, it has topped the S&P 500’s roughly 18.5% rise over the same period.
Let’s dive into the factors behind this Zacks Rank #3 (Hold) stock’s price appreciation.
Image Source: Zacks Investment Research
What’s Aiding RS?
Reliance Steel is gaining from strong underlying demand in its major markets. It expects demand to remain healthy in its end markets in the fourth quarter of 2023.
Demand in non-residential construction, the company’s biggest market, increased in the third quarter. Based on the current sentiment of customers and existing backlogs, the company maintains an optimistic outlook for the fourth quarter, anticipating that non-residential construction activities in the sectors it operates in will remain healthy, with consideration for the usual seasonal variations.
Reliance Steel is also witnessing higher year-over-year demand for toll processing services for the automobile market. The company’s niche position in providing toll processing services to the automotive market, particularly with the ongoing rise in aluminum usage, instills optimism for long-term demand in this sector.
Commercial aerospace demand also remained strong in the third quarter. RS expects commercial aerospace demand to stay healthy in the fourth quarter as build rates grow from current levels. Moreover, demand in the company’s aerospace business's military, defense and space segments remains robust, with substantial backlogs.
Moreover, RS has been following an aggressive acquisition strategy for a while as part of its core business policy to drive operating results. The acquisitions of Rotax Metals, Admiral Metals and Nu-Tech Precision Metals are in sync with its strategy of investing in high-quality businesses. The acquisition of Southern Steel Supply also expands the company’s reach in the Southern United States and boosts its value-added processing services.
Reliance Steel also remains committed to boost returns to shareholders. RS returned $185.1 million to its stockholders during the third quarter of 2023 through dividends and the repurchases. The company generated $466 million in cash flow from operations in the quarter, owing to its strong profitability and good working capital management. Reliance Steel, in Feb 2023, also increased its quarterly dividend by 14.3% to $1.00 per share.
Reliance Steel & Aluminum Co. Price and Consensus
Reliance Steel & Aluminum Co. price-consensus-chart | Reliance Steel & Aluminum Co. Quote
Stocks to Consider
Better-ranked stocks worth a look in the basic materials space include Denison Mines Corp. DNN, Axalta Coating Systems Ltd. AXTA and The Andersons Inc. ANDE.
Denison Mines has a projected earnings growth rate of 100% for the current year. DNN has a trailing four-quarter earnings surprise of roughly 225%, on average. The stock is up around 55% in a year. It currently carries a Zacks Rank #1 (Strong Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.
In the past 60 days, the Zacks Consensus Estimate for Axalta Coating Systems’ current year has been revised upward by 8.2%. AXTA, carrying a Zacks Rank #1, beat the Zacks Consensus Estimate in three of the last four quarters while missing in one quarter, with the average earnings surprise being 6.7%. The company’s shares have gained 19% in the past year.
Andersons currently carries a Zacks Rank #2 (Buy). The Zacks Consensus Estimate for ANDE's current-year earnings has been revised 5.1% upward over the past 60 days. Andersons beat the Zacks Consensus Estimate in three of the last four quarters. It delivered a trailing four-quarter earnings surprise of 32.8%, on average. ANDE shares have rallied around 32% in a 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 credited with a “watershed medical breakthrough” and is developing a bustling pipeline of other projects that could make a world of difference for patients suffering from diseases involving the liver, lungs, and blood. This is a timely investment that you can catch while it emerges from its bear market lows.
It could rival or surpass other recent 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 Andersons, Inc. (ANDE) : Free Stock Analysis Report
Reliance Steel & Aluminum Co. (RS) : Free Stock Analysis Report
Denison Mine Corp (DNN) : Free Stock Analysis Report
Axalta Coating Systems Ltd. (AXTA) : 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.
|
2023-11-28
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RS
|
Launched on 07/24/2000, the iShares S&P Mid-Cap 400 Growth ETF (IJK) is a passively managed exchange traded fund designed to provide a broad exposure to the Mid Cap Growth segment of the US equity market.
The fund is sponsored by Blackrock. It has amassed assets over $7.54 billion, making it one of the larger ETFs attempting to match the Mid Cap Growth segment of the US equity market.
Why Mid Cap Growth
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, companies that fall under this category provide a stable and growth-heavy investment.
Qualities of growth stocks include faster growth rates compared to the broader market, as well as higher valuations and higher than average sales and earnings growth rates. Something to keep in mind is the higher level of volatility that is affiliated with growth stocks. Even though growth stocks are more likely to outperform their value counterparts in strong bull markets, value stocks have a record of delivering better returns in almost all markets than growth stocks.
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 0.17%, putting it on par with most peer products in the space.
It has a 12-month trailing dividend yield of 1.11%.
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 25.20% of the portfolio. Consumer Discretionary and Financials round out the top three.
Looking at individual holdings, Hubbell Inc (HUBB) accounts for about 1.37% of total assets, followed by Builders Firstsource Inc (BLDR) and Reliance Steel & Aluminum (RS).
The top 10 holdings account for about 11.1% of total assets under management.
Performance and Risk
IJK seeks to match the performance of the S&P MidCap 400 Growth Index before fees and expenses. The S&P MidCap 400 Growth Index measures the performance of the mid-capitalization growth sector of the U.S. equity market.
The ETF has added roughly 9.06% so far this year and is up about 3.36% in the last one year (as of 11/28/2023). In the past 52-week period, it has traded between $67.43 and $77.94.
The ETF has a beta of 1.08 and standard deviation of 21.50% for the trailing three-year period, making it a medium risk choice in the space. With about 261 holdings, it effectively diversifies company-specific risk.
Alternatives
IShares S&P Mid-Cap 400 Growth 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, IJK is an outstanding option for investors seeking exposure to the Style Box - Mid Cap Growth segment of the market. There are other additional ETFs in the space that investors could consider as well.
The Vanguard Mid-Cap Growth ETF (VOT) and the iShares Russell Mid-Cap Growth ETF (IWP) track a similar index. While Vanguard Mid-Cap Growth ETF has $10.84 billion in assets, iShares Russell Mid-Cap Growth ETF has $13.12 billion. VOT has an expense ratio of 0.07% and IWP charges 0.23%.
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 S&P Mid-Cap 400 Growth ETF (IJK): ETF Research Reports
Reliance Steel & Aluminum Co. (RS) : Free Stock Analysis Report
Builders FirstSource, Inc. (BLDR) : Free Stock Analysis Report
Hubbell Inc (HUBB) : Free Stock Analysis Report
iShares Russell Mid-Cap Growth ETF (IWP): ETF Research Reports
Vanguard Mid-Cap Growth ETF (VOT): 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.
|
2023-11-24
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RS
|
Reliance Steel & Aluminum Co. RS is gaining from strong demand across key end-use markets, a diversified product base and strategic acquisitions amid headwinds from weak pricing.
Shares of Reliance Steel, a Zacks Rank #3 (Hold) stock, have gained 26.5% in the past year compared with 1.8% decline of the industry.
Image Source: Zacks Investment Research
Strong Demand, Acquisitions Aid Reliance Steel
Reliance Steel is benefiting from strong underlying demand in its major markets. It expects underlying demand to remain healthy in its end markets in the fourth quarter of 2023.
Demand in non-residential construction, the company’s biggest market, increased in the third quarter of 2023. Based on the current sentiment of customers and existing backlogs, the company maintains an optimistic outlook for the fourth quarter, anticipating that non-residential construction activities in the sectors it operates in will remain healthy, with consideration for the usual seasonal variations.
Commercial aerospace demand also remained strong in the third quarter. Reliance expects commercial aerospace demand to stay healthy in the fourth quarter as build rates grow from current levels. Moreover, demand in the company’s aerospace business's military, defense and space segments remains robust, with substantial backlogs.
Reliance Steel is also seeing higher year-over-year demand for toll processing services for the automobile market. The company’s niche position in providing toll processing services to the automotive market, particularly with the ongoing rise in aluminum usage, instills optimism for long-term demand in this sector.
Moreover, RS has been following an aggressive acquisition strategy for a while as part of its core business policy to drive operating results. The acquisitions of Rotax Metals, Admiral Metals and Nu-Tech Precision Metals are in sync with its strategy of investing in high-quality businesses. The acquisition of Southern Steel Supply also expands the company’s reach in the Southern United States and boosts its value-added processing services.
Pricing Pressure Ails
The company continued to face pricing pressure in the third quarter. The third-quarter average selling price per ton sold declined 16% from the year-ago quarter. Weaker pricing hurt its sales and bottom line in the quarter. Reliance Steel expects its average selling price per ton sold to decrease 4-6% sequentially in the fourth quarter. Lower selling prices are expected to affect its fourth-quarter performance. RS sees a modest reduction in its gross profit margin in the fourth quarter due to these declining price trends.
Lower sequential shipments are also expected to impact the company top line in the fourth quarter. Reliance Steel expects a 4-6% decline in tons sold in the fourth quarter from the third quarter, in line with typical seasonal patterns.
Reliance Steel & Aluminum Co. Price and Consensus
Reliance Steel & Aluminum Co. price-consensus-chart | Reliance Steel & Aluminum Co. Quote
Stocks to Consider
Better-ranked stocks worth a look in the basic materials space include Denison Mines Corp. DNN, Axalta Coating Systems Ltd. AXTA and The Andersons Inc. ANDE.
Denison Mines has a projected earnings growth rate of 100% for the current year. DNN has a trailing four-quarter earnings surprise of roughly 225%, on average. The stock is up around 53% in a year. It currently carries a Zacks Rank #1 (Strong Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.
In the past 60 days, the Zacks Consensus Estimate for Axalta Coating Systems’ current year has been revised upward by 8.2%. AXTA, carrying a Zacks Rank #1, beat the Zacks Consensus Estimate in three of the last four quarters while missing in one quarter, with the average earnings surprise being 6.7%. The company’s shares have gained 16% in the past year.
Andersons currently carries a Zacks Rank #2 (Buy). The Zacks Consensus Estimate for ANDE's current-year earnings has been revised 8.6% upward over the past 60 days. Andersons beat the Zacks Consensus Estimate in three of the last four quarters. It delivered a trailing four-quarter earnings surprise of 32.8%, on average. ANDE shares have rallied around 39% in a 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
The Andersons, Inc. (ANDE) : Free Stock Analysis Report
Reliance Steel & Aluminum Co. (RS) : Free Stock Analysis Report
Denison Mine Corp (DNN) : Free Stock Analysis Report
Axalta Coating Systems Ltd. (AXTA) : 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.
|
2023-11-16
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RS
|
Among the underlying components of the Russell 3000 index, we saw noteworthy options trading volume today in Antero Resources Corp (Symbol: AR), where a total of 20,501 contracts have traded so far, representing approximately 2.1 million underlying shares. That amounts to about 43.5% of AR's average daily trading volume over the past month of 4.7 million shares. Particularly high volume was seen for the $29 strike call option expiring January 19, 2024, with 2,159 contracts trading so far today, representing approximately 215,900 underlying shares of AR. Below is a chart showing AR's trailing twelve month trading history, with the $29 strike highlighted in orange:
Reliance Steel & Aluminum Co. (Symbol: RS) saw options trading volume of 1,476 contracts, representing approximately 147,600 underlying shares or approximately 43.4% of RS's average daily trading volume over the past month, of 340,045 shares. Especially high volume was seen for the $260 strike call option expiring November 17, 2023, with 560 contracts trading so far today, representing approximately 56,000 underlying shares of RS. Below is a chart showing RS's trailing twelve month trading history, with the $260 strike highlighted in orange:
And Southern Company (Symbol: SO) saw options trading volume of 20,431 contracts, representing approximately 2.0 million underlying shares or approximately 43% of SO's average daily trading volume over the past month, of 4.7 million shares. Particularly high volume was seen for the $69 strike call option expiring November 17, 2023, with 7,929 contracts trading so far today, representing approximately 792,900 underlying shares of SO. Below is a chart showing SO's trailing twelve month trading history, with the $69 strike highlighted in orange:
For the various different available expirations for AR options, RS options, or SO options, visit StockOptionsChannel.com.
Today's Most Active Call & Put Options of the S&P 500 »
Also see:
Stocks Being Sold By Hedge Funds
RAPT market cap history
AGMH Videos
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
|
2023-11-13
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RS
|
Looking today at week-over-week shares outstanding changes among the universe of ETFs covered at ETF Channel, one standout is the Invesco S&P MidCap Momentum ETF (Symbol: XMMO) where we have detected an approximate $89.6 million dollar outflow -- that's a 8.0% decrease week over week (from 13,970,000 to 12,850,000). Among the largest underlying components of XMMO, in trading today Jabil Inc (Symbol: JBL) is up about 0.4%, Deckers Outdoor Corp. (Symbol: DECK) is down about 0.8%, and Reliance Steel & Aluminum Co. (Symbol: RS) is relatively unchanged. For a complete list of holdings, visit the XMMO Holdings page » The chart below shows the one year price performance of XMMO, versus its 200 day moving average:
Looking at the chart above, XMMO's low point in its 52 week range is $70.78 per share, with $83.3699 as the 52 week high point — that compares with a last trade of $79.82. 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 »
Also see:
ARNA Split History
Top Ten Hedge Funds Holding OMNT
ETFs Holding SBUX
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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2023-11-03
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RS
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Designed to provide broad exposure to the Mid Cap Growth segment of the US equity market, the SPDR S&P 400 Mid Cap Growth ETF (MDYG) is a passively managed exchange traded fund launched on 11/08/2005.
The fund is sponsored by State Street Global Advisors. It has amassed assets over $1.80 billion, making it one of the larger ETFs attempting to match the Mid Cap Growth segment of the US equity market.
Why Mid Cap Growth
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.
Qualities of growth stocks include faster growth rates compared to the broader market, as well as higher valuations and higher than average sales and earnings growth rates. Further, growth stocks have a higher level of volatility associated with them. Even though growth stocks are more likely to outperform their value counterparts in strong bull markets, value stocks have a record of delivering better returns in almost all markets than growth stocks.
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 0.15%, making it one of the least expensive products in the space.
It has a 12-month trailing dividend yield of 1.25%.
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 24.60% of the portfolio. Consumer Discretionary and Financials round out the top three.
Looking at individual holdings, Hubbell Inc (HUBB) accounts for about 1.33% of total assets, followed by Reliance Steel + Aluminum (RS) and Builders Firstsource Inc (BLDR).
The top 10 holdings account for about 10.91% of total assets under management.
Performance and Risk
MDYG seeks to match the performance of the S&P MidCap 400 Growth Index before fees and expenses. The S&P MidCap 400 Growth Index measures the performance of the mid-capitalization growth sector in the U.S. equity market.
The ETF has added about 4.24% so far this year and it's up approximately 6.59% in the last one year (as of 11/03/2023). In the past 52-week period, it has traded between $64.04 and $74.46.
The ETF has a beta of 1.08 and standard deviation of 21.46% for the trailing three-year period, making it a medium risk choice in the space. With about 255 holdings, it effectively diversifies company-specific risk.
Alternatives
SPDR S&P 400 Mid Cap Growth 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, MDYG is an outstanding option for investors seeking exposure to the Style Box - Mid Cap Growth segment of the market. There are other additional ETFs in the space that investors could consider as well.
The Vanguard Mid-Cap Growth ETF (VOT) and the iShares Russell Mid-Cap Growth ETF (IWP) track a similar index. While Vanguard Mid-Cap Growth ETF has $10.09 billion in assets, iShares Russell Mid-Cap Growth ETF has $11.93 billion. VOT has an expense ratio of 0.07% and IWP charges 0.23%.
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.
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SPDR S&P 400 Mid Cap Growth ETF (MDYG): ETF Research Reports
Reliance Steel & Aluminum Co. (RS) : Free Stock Analysis Report
Builders FirstSource, Inc. (BLDR) : Free Stock Analysis Report
Hubbell Inc (HUBB) : Free Stock Analysis Report
iShares Russell Mid-Cap Growth ETF (IWP): ETF Research Reports
Vanguard Mid-Cap Growth ETF (VOT): 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.
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2023-11-03
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RS
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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 MIDCAP 400 ETF Trust (Symbol: MDY) where we have detected an approximate $155.5 million dollar outflow -- that's a 0.9% decrease week over week (from 40,320,000 to 39,970,000). Among the largest underlying components of MDY, in trading today Jabil Inc (Symbol: JBL) is up about 1.8%, Reliance Steel & Aluminum Co. (Symbol: RS) is up about 1.5%, and Graco Inc (Symbol: GGG) is up by about 2.1%. For a complete list of holdings, visit the MDY Holdings page » The chart below shows the one year price performance of MDY, versus its 200 day moving average:
Looking at the chart above, MDY's low point in its 52 week range is $424.22 per share, with $500.78 as the 52 week high point — that compares with a last trade of $452.63. 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 »
Also see:
Cheap Healthcare Shares
LCTD Videos
Top Ten Hedge Funds Holding IHYF
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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2023-11-02
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RS
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If you're interested in broad exposure to the Mid Cap Blend segment of the US equity market, look no further than the SPDR Portfolio S&P 400 Mid Cap ETF (SPMD), a passively managed exchange traded fund launched on 11/08/2005.
The fund is sponsored by State Street Global Advisors. It has amassed assets over $6.50 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
With market capitalization between $2 billion and $10 billion, mid cap companies usually contain higher growth prospects than large cap companies, and are considered less risky than their small cap counterparts. Thus, companies that fall under this category provide a stable and growth-heavy investment.
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
When considering an ETF's total return, expense ratios are an important factor, and cheaper funds can significantly outperform their more expensive counterparts in the long term if all other factors remain equal.
Annual operating expenses for this ETF are 0.03%, making it the least expensive products in the space.
It has a 12-month trailing dividend yield of 1.67%.
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 22.10% of the portfolio. Financials and Consumer Discretionary round out the top three.
Looking at individual holdings, Jabil Inc (JBL) accounts for about 0.81% of total assets, followed by Hubbell Inc (HUBB) and Reliance Steel + Aluminum (RS).
The top 10 holdings account for about 6.34% 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 -0.59% so far this year and is down about -0.82% in the last one year (as of 11/02/2023). In the past 52-week period, it has traded between $40.76 and $47.80.
The ETF has a beta of 1.13 and standard deviation of 20.74% for the trailing three-year period. With about 403 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 an excellent 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 Mid-Cap ETF (VO) and the iShares Core S&P Mid-Cap ETF (IJH) track a similar index. While Vanguard Mid-Cap ETF has $49.91 billion in assets, iShares Core S&P Mid-Cap ETF has $66.46 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.
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SPDR Portfolio S&P 400 Mid Cap ETF (SPMD): ETF Research Reports
Reliance Steel & Aluminum Co. (RS) : Free Stock Analysis Report
Jabil, Inc. (JBL) : Free Stock Analysis Report
Hubbell Inc (HUBB) : Free Stock Analysis Report
iShares Core S&P Mid-Cap ETF (IJH): ETF Research Reports
Vanguard Mid-Cap 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.
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2023-10-30
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RS
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Reliance Steel & Aluminum Co. RS posted third-quarter 2023 profits of $295 million or $4.99 per share, down from $393.5 million or $6.45 per share in the year-ago quarter.
Barring one-time items, the company recorded earnings of $5.00 per share. It missed the Zacks Consensus Estimate of $5.02.
The company recorded net sales of $3,623 million, down around 14.7% year over year. The top line beat the Zacks Consensus Estimate of $3,594.7 million.
Reliance Steel & Aluminum Co. Price, Consensus and EPS Surprise
Reliance Steel & Aluminum Co. price-consensus-eps-surprise-chart | Reliance Steel & Aluminum Co. Quote
Volumes and Pricing
The company's shipments (thousand tons sold) rose 1.1% year over year to 1,420.8 due to the non-residential construction and aerospace end industries' strength in the quarter. It was below our estimate of 1,447.3. The average selling price per ton sold declined 16% year over year to $2,552. It fell short of our estimate of $2,564.
Non-residential construction demand, Reliance Steel's largest end market, increased in the third quarter of 2023. Based on the current sentiment of customers and existing backlogs, the company maintains an optimistic outlook for the fourth quarter of 2023, anticipating that non-residential construction activity in the sectors it operates in will remain healthy, with consideration for the usual seasonal variations.
Commercial aerospace demand remained strong in the third quarter of 2023. Reliance expects commercial aerospace demand to stay healthy in the fourth quarter of 2023 as build rates grow from current levels. Demand in Reliance Steel's aerospace business's military, defense and space segments remained robust, with substantial backlogs.
The demand for Reliance's toll processing services in the automotive market remained steady when compared to the second quarter of 2023 and has shown an increase year over year. Reliance's niche position in providing toll processing services to the automotive market, particularly with the ongoing rise in aluminum usage, instills optimism for long-term demand in this sector. However, the company maintains a cautious outlook for the fourth quarter of 2023, primarily due to the ongoing UAW strike.
In contrast, demand in the broader manufacturing sectors that Reliance serves, which includes industrial machinery, consumer products, and heavy equipment, has declined year over year. This is attributed, in part, to decreased carbon steel flat-rolled ton sales and lower demand in specific equipment and machinery markets. Reliance expects a further decline in demand for its products across the broader manufacturing sector in the fourth quarter of 2023, mainly due to seasonal factors.
Demand in the semiconductor market has also seen a decline compared with the second quarter of 2023 and the third quarter of 2022. The downside was caused by persistent softness in certain segments of the market, primarily due to an excess of inventory in the supply chain. Despite this, Reliance maintains a positive long-term outlook for the semiconductor market, supported by its investments in additional capacity to cater to the significant expansion efforts in semiconductor fabrication currently underway in the United States.
Financial Position
At the third-quarter end, Reliance Steel had $976.9 million in cash and cash equivalents and $1.15 billion in total debt outstanding, with no outstanding borrowings under its $1.5-billion revolving credit facility. RS generated $466 million in cash flow from operations in the quarter, owing to its strong profitability and good working capital management.
Outlook
For the fourth quarter of 2023, Reliance Steel expects underlying demand to remain healthy in its end markets. The company anticipates a growth in tons sold, ranging from 3.5% to 5.5% when compared to the fourth quarter of 2022. In line with typical seasonal patterns, there is an expected sequential decline of 4-6%. While Reliance foresees that pricing for many products may reach or approach the lowest point in the current business cycle during some part of the fourth quarter of 2023, with certain products stabilizing or experiencing modest increases, the company expects its average selling price per ton sold in the fourth quarter of 2023 to decrease by 4% to 6% compared to the third quarter of 2023. The company foresees a temporary and modest reduction in its gross profit margin in the fourth quarter due to these declining price trends.
The company projects adjusted earnings per share in the range of $3.70-$3.90for the fourth quarter.
Price Performance
Shares of Reliance Steel have surged 23.3% in the past year compared with a 1.1% rise of the industry.
Image Source: Zacks Investment Research
Zacks Rank & Key Picks
Reliance Steel currently carries a Zacks Rank #3 (Hold).
Some better-ranked stocks in the Basic Materials space are The Andersons Inc. ANDE, sporting a Zacks Rank #1 (Strong Buy) and WestRock Company WRK and Koppers Holdings Inc. KOP, each carrying a Zacks Rank #2 (Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.
The Zacks Consensus Estimate for ANDE's current-year earnings has been revised 3.3% upward in the past 90 days. Andersons beat the Zacks Consensus Estimate in each of the last four quarters. It delivered a trailing four-quarter earnings surprise of 64.4% on average. ANDE shares have rallied around 39.8% in a year.
In the past 60 days, the Zacks Consensus Estimate for WestRock’s current fiscal year has been revised upward by 5.2%. WRK beat the Zacks Consensus Estimate in three of the last four quarters while missing in one quarter, with the average earnings surprise being 30.7%. The company’s shares have rallied 3.3% in the past year.
The consensus estimate for Koppers’ current fiscal year earnings is pegged at $4.45, indicating year-over-year growth of 7.5%. KOP beat the Zacks Consensus Estimate in all of the last four quarters, with the average earnings surprise being 21.7%. The company’s shares have surged 46.8% in the past year.
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Free: See Our Top Stock And 4 Runners Up
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The Andersons, Inc. (ANDE) : Free Stock Analysis Report
Reliance Steel & Aluminum Co. (RS) : Free Stock Analysis Report
Koppers Holdings Inc. (KOP) : Free Stock Analysis Report
WestRock Company (WRK) : 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.
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2023-10-27
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RS
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Fintel reports that on October 27, 2023, Keybanc maintained coverage of Reliance Steel & Aluminum (NYSE:RS) with a Overweight recommendation.
Analyst Price Forecast Suggests 22.20% Upside
As of October 5, 2023, the average one-year price target for Reliance Steel & Aluminum is 302.12. The forecasts range from a low of 282.80 to a high of $321.30. The average price target represents an increase of 22.20% from its latest reported closing price of 247.23.
See our leaderboard of companies with the largest price target upside.
The projected annual revenue for Reliance Steel & Aluminum is 14,470MM, a decrease of 4.04%. The projected annual non-GAAP EPS is 19.88.
What is the Fund Sentiment?
There are 1202 funds or institutions reporting positions in Reliance Steel & Aluminum. This is a decrease of 7 owner(s) or 0.58% in the last quarter. Average portfolio weight of all funds dedicated to RS is 0.35%, an increase of 0.26%. Total shares owned by institutions decreased in the last three months by 4.73% to 54,715K shares.
The put/call ratio of RS is 1.75, indicating a bearish outlook.
What are Other Shareholders Doing?
VTSMX - Vanguard Total Stock Market Index Fund Investor Shares holds 1,832K shares representing 3.13% ownership of the company. In it's prior filing, the firm reported owning 1,819K shares, representing an increase of 0.72%. The firm decreased its portfolio allocation in RS by 1.69% over the last quarter.
IJH - iShares Core S&P Mid-Cap ETF holds 1,783K shares representing 3.05% ownership of the company. In it's prior filing, the firm reported owning 1,811K shares, representing a decrease of 1.52%. The firm decreased its portfolio allocation in RS by 0.19% over the last quarter.
NAESX - Vanguard Small-Cap Index Fund Investor Shares holds 1,518K shares representing 2.59% ownership of the company. In it's prior filing, the firm reported owning 1,538K shares, representing a decrease of 1.35%. The firm decreased its portfolio allocation in RS by 0.70% over the last quarter.
Yacktman Asset Management holds 1,247K shares representing 2.13% ownership of the company. In it's prior filing, the firm reported owning 1,253K shares, representing a decrease of 0.40%. The firm increased its portfolio allocation in RS by 1.02% over the last quarter.
Wellington Management Group Llp holds 1,185K shares representing 2.02% ownership of the company. In it's prior filing, the firm reported owning 1,206K shares, representing a decrease of 1.74%. The firm decreased its portfolio allocation in RS by 0.78% over the last quarter.
Reliance Steel & Aluminum Background Information
(This description is provided by the company.)
Founded in 1939 and headquartered in Los Angeles, California, Reliance Steel & Aluminum Co. is a leading global diversified metal solutions provider and the largest metals service center company in North America. Through a network of approximately 300 locations in 40 states and 13 countries outside of the United States, Reliance provides value-added metals processing services and distributes a full line of over 100,000 metal products to more than 125,000 customers in a broad range of industries. Reliance focuses on small orders with quick turnaround and increasing levels of value-added processing. In 2020, Reliance's average order size was $1,910, approximately 49% of orders included value-added processing and approximately 40% of orders were delivered within 24 hours.
Fintel is one of the most comprehensive investing research platforms available to individual investors, traders, financial advisors, and small hedge funds.
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This story originally appeared on Fintel.
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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2023-10-26
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RS
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(RTTNews) - Reliance Steel & Aluminum (RS) will host a conference call at 11:00 AM ET on October 26, 2023, to discuss Q3 23 earnings results.
To access the live webcast, log on to https://investor.rsac.com/events-and-presentations/event-calendar/default.aspx
To listen to the call, dial (877) 407-0792 (US) or (201) 689-8263 (International), Passcode 13741355.
For a replay call, dial (844) 512-2921 (US) or (412) 317-6671 (International) with conference ID: 13741355.
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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2023-10-26
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RS
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Reliance Steel (RS) came out with quarterly earnings of $5 per share, missing the Zacks Consensus Estimate of $5.02 per share. This compares to earnings of $6.48 per share a year ago. These figures are adjusted for non-recurring items.
This quarterly report represents an earnings surprise of -0.40%. A quarter ago, it was expected that this metals service-center company would post earnings of $6.52 per share when it actually produced earnings of $6.49, delivering a surprise of -0.46%.
Over the last four quarters, the company has surpassed consensus EPS estimates two times.
Reliance Steel, which belongs to the Zacks Metal Products - Distribution industry, posted revenues of $3.62 billion for the quarter ended September 2023, surpassing the Zacks Consensus Estimate by 0.79%. This compares to year-ago revenues of $4.25 billion. The company has topped consensus revenue estimates two 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.
Reliance Steel shares have added about 22.1% since the beginning of the year versus the S&P 500's gain of 9%.
What's Next for Reliance Steel?
While Reliance Steel 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 Reliance Steel: mixed. 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 #3 (Hold) for the stock. So, the shares are expected to perform in line with 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 $4.41 on $3.3 billion in revenues for the coming quarter and $22.18 on $14.7 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 39% 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.
Another stock from the broader Zacks Industrial Products sector, Graham (GHM), has yet to report results for the quarter ended September 2023.
This maker of vacuum and heat-transfer equipment is expected to post quarterly loss of $0.06 per share in its upcoming report, which represents a year-over-year change of -200%. The consensus EPS estimate for the quarter has remained unchanged over the last 30 days.
Graham's revenues are expected to be $41.96 million, up 10% from the year-ago quarter.
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Reliance Steel & Aluminum Co. (RS) : Free Stock Analysis Report
Graham Corporation (GHM) : 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.
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2023-10-26
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RS
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(RTTNews) - While reporting financial results for the third quarter on Thursday, metals service center company Reliance Steel & Aluminum Co. (RS) said it expects adjusted earnings for the fourth quarter in a range of $3.70 to $3.90 per share, as the company expects its average selling price per ton sold for the quarter to be down 4 to 6 percent.
On average, six analysts polled by Thomson Reuters expect the company to report earnings of $4.21 per share for the quarter. Analysts' estimates usually exclude special items.
On Tuesday, the Company's Board of Directors declared a quarterly cash dividend of $1.00 per share of common stock, payable on December 1, 2023 to stockholders of record as of November 17, 2023.
For the third quarter, net income attributable to the company plunged to $295.0 million or $4.99 per share from $393.5 million or $6.45 per share in the prior-year quarter. Excluding items, adjusted earnings for the quarter was $5.00 per share, compared to $6.48 per share in the year-ago quarter.
Net sales for the quarter declined 14.7 percent to $3.62 billion from $4.25 billion in the same quarter last year.
The Street was looking for earnings of $5.00 per share on revenues of $3.62 billion for the quarter.
For more earnings news, earnings calendar, and earnings for stocks, visit rttnews.com
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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2023-10-25
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RS
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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 MIDCAP 400 ETF Trust (Symbol: MDY) where we have detected an approximate $187.3 million dollar inflow -- that's a 1.1% increase week over week in outstanding units (from 39,790,000 to 40,220,000). Among the largest underlying components of MDY, in trading today Jabil Inc (Symbol: JBL) is off about 0.8%, Hubbell Inc. (Symbol: HUBB) is up about 0.1%, and Reliance Steel & Aluminum Co. (Symbol: RS) is up by about 0.3%. For a complete list of holdings, visit the MDY Holdings page » The chart below shows the one year price performance of MDY, versus its 200 day moving average:
Looking at the chart above, MDY's low point in its 52 week range is $424.11 per share, with $500.78 as the 52 week high point — that compares with a last trade of $430.00. 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 had notable inflows »
Also see:
Top Ten Hedge Funds Holding AGOL
FGF Insider Buying
CD Options Chain
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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2023-10-25
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RS
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Constellium (CSTM) came out with quarterly earnings of $0.47 per share, beating the Zacks Consensus Estimate of $0.44 per share. This compares to earnings of $0.89 per share a year ago. These figures are adjusted for non-recurring items.
This quarterly report represents an earnings surprise of 6.82%. A quarter ago, it was expected that this aluminum company would post earnings of $0.39 per share when it actually produced earnings of $0.35, delivering a surprise of -10.26%.
Over the last four quarters, the company has surpassed consensus EPS estimates just once.
Constellium, which belongs to the Zacks Metal Products - Distribution industry, posted revenues of $1.87 billion for the quarter ended September 2023, missing the Zacks Consensus Estimate by 6.90%. This compares to year-ago revenues of $2.04 billion. The company has topped consensus revenue estimates two 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.
Constellium shares have added about 37.6% since the beginning of the year versus the S&P 500's gain of 10.6%.
What's Next for Constellium?
While Constellium 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 Constellium: mixed. 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 #3 (Hold) for the stock. So, the shares are expected to perform in line with 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 $0.36 on $1.98 billion in revenues for the coming quarter and $1.17 on $8.34 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 40% 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.
Reliance Steel (RS), another stock in the same industry, has yet to report results for the quarter ended September 2023. The results are expected to be released on October 26.
This metals service-center company is expected to post quarterly earnings of $5.03 per share in its upcoming report, which represents a year-over-year change of -22.4%. The consensus EPS estimate for the quarter has been revised 1.8% higher over the last 30 days to the current level.
Reliance Steel's revenues are expected to be $3.59 billion, down 15.4% from the year-ago quarter.
5 Stocks Set to Double
Each was handpicked by a Zacks expert as the #1 favorite stock to gain +100% or more in 2023. 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
Constellium SE (CSTM) : 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.
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2023-10-24
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RS
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The Vanguard Small-Cap Value ETF (VBR) was launched on 01/26/2004, and is a passively managed exchange traded fund designed to offer broad exposure to the Small Cap Value segment of the US equity market.
The fund is sponsored by Vanguard. It has amassed assets over $22.73 billion, making it the largest ETFs attempting to match the Small Cap Value segment of the US equity market.
Why Small Cap Value
Sitting at a market capitalization below $2 billion, small cap companies tend to be high-potential stocks compared to its large and mid cap counterparts, but come with higher risk.
Carrying lower than average price-to-earnings and price-to-book ratios, value stocks also have lower than average sales and earnings growth rates. While value stocks have outperformed growth stocks in nearly all markets when you consider long-term performance, growth stocks are more likely to outpace value stocks in strong bull markets.
Costs
When considering an ETF's total return, expense ratios are an important factor, and cheaper funds can significantly outperform their more expensive counterparts in the long term if all other factors remain equal.
Annual operating expenses for this ETF are 0.07%, making it one of the least expensive products in the space.
It has a 12-month trailing dividend yield of 2.50%.
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 Industrials sector--about 23% of the portfolio. Financials and Consumer Discretionary round out the top three.
Looking at individual holdings, Slcmt1142 accounts for about 0.87% of total assets, followed by Builders Firstsource Inc. (BLDR) and Reliance Steel & Aluminum Co. (RS).
The top 10 holdings account for about 5.94% of total assets under management.
Performance and Risk
VBR seeks to match the performance of the CRSP U.S. Small Cap Value Index before fees and expenses. The CRSP U.S. Small Cap Value Index measures the investment return of small-capitalization value stocks.
The ETF has lost about -3.21% so far this year and was up about 1.78% in the last one year (as of 10/24/2023). In the past 52-week period, it has traded between $150.22 and $177.69.
The ETF has a beta of 1.16 and standard deviation of 21.56% for the trailing three-year period, making it a medium risk choice in the space. With about 855 holdings, it effectively diversifies company-specific risk.
Alternatives
Vanguard Small-Cap Value ETF holds a Zacks ETF Rank of 1 (Strong Buy), which is based on expected asset class return, expense ratio, and momentum, among other factors. Because of this, VBR is a great option for investors seeking exposure to the Style Box - Small Cap Value segment of the market. There are other additional ETFs in the space that investors could consider as well.
The Avantis U.S. Small Cap Value ETF (AVUV) and the iShares Russell 2000 Value ETF (IWN) track a similar index. While Avantis U.S. Small Cap Value ETF has $6.54 billion in assets, iShares Russell 2000 Value ETF has $9.75 billion. AVUV has an expense ratio of 0.25% and IWN charges 0.24%.
Bottom-Line
While an excellent vehicle for long term investors, passively managed ETFs are a popular choice among institutional and retail investors due to their low costs, transparency, flexibility, and tax efficiency.
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.
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Vanguard Small-Cap Value ETF (VBR): ETF Research Reports
Reliance Steel & Aluminum Co. (RS) : Free Stock Analysis Report
Builders FirstSource, Inc. (BLDR) : Free Stock Analysis Report
iShares Russell 2000 Value ETF (IWN): ETF Research Reports
Avantis U.S. Small Cap Value ETF (AVUV): 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.
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2023-10-23
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RS
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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 FT Cboe Vest Rising Dividend Achievers Target Income ETF (Symbol: RDVI), we found that the implied analyst target price for the ETF based upon its underlying holdings is $24.21 per unit.
With RDVI trading at a recent price near $20.34 per unit, that means that analysts see 19.04% upside for this ETF looking through to the average analyst targets of the underlying holdings. Three of RDVI's underlying holdings with notable upside to their analyst target prices are Civitas Resources Inc (Symbol: CIVI), Reliance Steel & Aluminum Co. (Symbol: RS), and JPMorgan Chase & Co (Symbol: JPM). Although CIVI has traded at a recent price of $78.30/share, the average analyst target is 20.62% higher at $94.44/share. Similarly, RS has 20.57% upside from the recent share price of $245.71 if the average analyst target price of $296.25/share is reached, and analysts on average are expecting JPM to reach a target price of $171.00/share, which is 19.62% above the recent price of $142.95. Below is a twelve month price history chart comparing the stock performance of CIVI, RS, and JPM:
Combined, CIVI, RS, and JPM represent 5.97% of the FT Cboe Vest Rising Dividend Achievers Target Income 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
FT Cboe Vest Rising Dividend Achievers Target Income ETF RDVI $20.34 $24.21 19.04%
Civitas Resources Inc CIVI $78.30 $94.44 20.62%
Reliance Steel & Aluminum Co. RS $245.71 $296.25 20.57%
JPMorgan Chase & Co JPM $142.95 $171.00 19.62%
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 »
Also see:
Top Ten Hedge Funds Holding JKI
TSP Earnings History
Institutional Holders of CBIN
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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2023-10-17
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RS
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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 MIDCAP 400 ETF Trust (Symbol: MDY) where we have detected an approximate $136.0 million dollar outflow -- that's a 0.7% decrease week over week (from 40,090,000 to 39,790,000). Among the largest underlying components of MDY, in trading today Jabil Inc (Symbol: JBL) is up about 0.4%, Hubbell Inc. (Symbol: HUBB) is down about 0.5%, and Reliance Steel & Aluminum Co. (Symbol: RS) is up by about 0.7%. For a complete list of holdings, visit the MDY Holdings page » The chart below shows the one year price performance of MDY, versus its 200 day moving average:
Looking at the chart above, MDY's low point in its 52 week range is $410.07 per share, with $500.78 as the 52 week high point — that compares with a last trade of $458.01. 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 »
Also see:
FXP Options Chain
CBG Split History
CHD Technical Analysis
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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2023-10-16
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RS
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Looking for broad exposure to the Mid Cap Growth segment of the US equity market? You should consider the Vanguard S&P Mid-Cap 400 Growth ETF (IVOG), a passively managed exchange traded fund launched on 09/09/2010.
The fund is sponsored by Vanguard. It has amassed assets over $733 million, making it one of the average sized ETFs attempting to match the Mid Cap Growth segment of the US equity market.
Why Mid Cap Growth
With market capitalization between $2 billion and $10 billion, mid cap companies usually contain higher growth prospects than large cap companies, and are considered less risky than their small cap counterparts. Thus, companies that fall under this category provide a stable and growth-heavy investment.
While growth stocks do boast higher than average sales and earnings growth rates, and they are expected to grow faster than the wider market, investors should note these kinds of stocks have higher valuations. Also, growth stocks are a type of equity that carries more risk compared to others. Even though growth stocks are more likely to outperform their value counterparts in strong bull markets, value stocks have a record of delivering better returns in almost all markets than growth stocks.
Costs
Investors should also pay attention to an ETF's expense ratio. Lower cost products will produce better results than those with a higher cost, assuming all other metrics remain the same.
Annual operating expenses for this ETF are 0.15%, making it one of the least expensive products in the space.
It has a 12-month trailing dividend yield of 1%.
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 26.50% of the portfolio. Consumer Discretionary and Financials round out the top three.
Looking at individual holdings, Builders Firstsource Inc. (BLDR) accounts for about 1.62% of total assets, followed by Hubbell Inc. (HUBB) and Reliance Steel & Aluminum Co. (RS).
The top 10 holdings account for about 11.7% of total assets under management.
Performance and Risk
IVOG seeks to match the performance of the S&P MidCap 400 Growth Index before fees and expenses. The S&P MidCap 400 Growth Index measures the performance of growth stocks of medium-size U.S. companies.
The ETF return is roughly 4.78% so far this year and it's up approximately 8.91% in the last one year (as of 10/16/2023). In the past 52-week period, it has traded between $80.53 and $96.91.
The ETF has a beta of 1.10 and standard deviation of 21.29% for the trailing three-year period, making it a medium risk choice in the space. With about 239 holdings, it effectively diversifies company-specific risk.
Alternatives
Vanguard S&P Mid-Cap 400 Growth 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, IVOG is a great option for investors seeking exposure to the Style Box - Mid Cap Growth segment of the market. There are other additional ETFs in the space that investors could consider as well.
The Vanguard Mid-Cap Growth ETF (VOT) and the iShares Russell Mid-Cap Growth ETF (IWP) track a similar index. While Vanguard Mid-Cap Growth ETF has $10.40 billion in assets, iShares Russell Mid-Cap Growth ETF has $12.20 billion. VOT has an expense ratio of 0.07% and IWP charges 0.23%.
Bottom-Line
While an excellent vehicle for long term investors, passively managed ETFs are a popular choice among institutional and retail investors due to their low costs, transparency, flexibility, and tax efficiency.
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
Vanguard S&P Mid-Cap 400 Growth ETF (IVOG): ETF Research Reports
Reliance Steel & Aluminum Co. (RS) : Free Stock Analysis Report
Builders FirstSource, Inc. (BLDR) : Free Stock Analysis Report
Hubbell Inc (HUBB) : Free Stock Analysis Report
iShares Russell Mid-Cap Growth ETF (IWP): ETF Research Reports
Vanguard Mid-Cap Growth ETF (VOT): 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.
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2023-10-12
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RS
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Looking at units outstanding versus one week prior within the universe of ETFs covered at ETF Channel, the biggest outflow was seen in the iShares MSCI Emerging Markets ETF, where 40,050,000 units were destroyed, or a 8.1% decrease week over week. Among the largest underlying components of EEM, in morning trading today Pdd Holdings is off about 2.3%, and Yum China Holdings is lower by about 1.5%.
And on a percentage change basis, the ETF with the biggest outflow was the First Trust Active Factor Mid Cap ETF, which lost 100,000 of its units, representing a 33.3% decline in outstanding units compared to the week prior. Among the largest underlying components of AFMC, in morning trading today Reliance Steel & Aluminum is down about 1.1%, and Builders Firstsource is lower by about 5.7%.
VIDEO: EEM, AFMC: Big ETF Outflows
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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2023-10-11
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RS
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If you're interested in broad exposure to the Mid Cap Blend segment of the US equity market, look no further than the Vanguard S&P Mid-Cap 400 ETF (IVOO), a passively managed exchange traded fund launched on 09/09/2010.
The fund is sponsored by Vanguard. It has amassed assets over $1.55 billion, making it one of the average sized ETFs attempting to match the Mid Cap Blend segment of the US equity market.
Why Mid Cap Blend
With market capitalization between $2 billion and $10 billion, mid cap companies usually contain higher growth prospects than large cap companies, and are considered less risky than their small cap counterparts. These types of companies, then, have a good balance of stability and growth potential.
Blend ETFs usually hold a mix of growth and value stocks as well as stocks that exhibit both value and growth characteristics.
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 0.10%, putting it on par with most peer products in the space.
It has a 12-month trailing dividend yield of 1.36%.
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 23.30% of the portfolio. Consumer Discretionary and Financials round out the top three.
Looking at individual holdings, Builders Firstsource Inc. (BLDR) accounts for about 0.83% of total assets, followed by Hubbell Inc. (HUBB) and Reliance Steel & Aluminum Co. (RS).
The top 10 holdings account for about 5.72% of total assets under management.
Performance and Risk
IVOO 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-cap segment of the U.S. equity universe. The Index is a capitalization-weighted index composed of 400 domestic common stocks.
The ETF return is roughly 4.08% so far this year and was up about 12.15% in the last one year (as of 10/11/2023). In the past 52-week period, it has traded between $75.71 and $92.16.
The ETF has a beta of 1.14 and standard deviation of 20.72% for the trailing three-year period, making it a medium risk choice in the space. With about 402 holdings, it effectively diversifies company-specific risk.
Alternatives
Vanguard S&P Mid-Cap 400 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, IVOO 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 Mid-Cap ETF (VO) and the iShares Core S&P Mid-Cap ETF (IJH) track a similar index. While Vanguard Mid-Cap ETF has $52.50 billion in assets, iShares Core S&P Mid-Cap ETF has $70.57 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
Vanguard S&P Mid-Cap 400 ETF (IVOO): ETF Research Reports
Reliance Steel & Aluminum Co. (RS) : Free Stock Analysis Report
Builders FirstSource, Inc. (BLDR) : Free Stock Analysis Report
Hubbell Inc (HUBB) : Free Stock Analysis Report
iShares Core S&P Mid-Cap ETF (IJH): ETF Research Reports
Vanguard Mid-Cap 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.
|
2023-10-09
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RS
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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 MIDCAP 400 ETF Trust (Symbol: MDY) where we have detected an approximate $201.9 million dollar outflow -- that's a 1.1% decrease week over week (from 40,540,000 to 40,090,000). Among the largest underlying components of MDY, in trading today Jabil Inc (Symbol: JBL) is up about 1.3%, Hubbell Inc. (Symbol: HUBB) is down about 0.7%, and Reliance Steel & Aluminum Co. (Symbol: RS) is lower by about 0.1%. For a complete list of holdings, visit the MDY Holdings page » The chart below shows the one year price performance of MDY, versus its 200 day moving average:
Looking at the chart above, MDY's low point in its 52 week range is $399.69 per share, with $500.78 as the 52 week high point — that compares with a last trade of $447.71. 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 »
Also see:
Financial Stocks Hedge Funds Are Buying
Top Ten Hedge Funds Holding BSY
PFBC Next Earnings Date
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
|
2023-10-03
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RS
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Reliance Steel & Aluminum Co.’s RS shares have gained 28.4% year to date. The company has also outperformed its industry’s rise of 6% over the same time frame. Moreover, it has topped the S&P 500’s 11.7% rise over the same period.
Let’s dive into the factors behind this Zacks Rank #3 (Hold) stock’s price appreciation.
Image Source: Zacks Investment Research
What’s Aiding RS?
Reliance Steel is benefiting from strong underlying demand in its major markets. It envisions healthy demand to continue in most of its end markets in the third quarter of 2023.
Demand in non-residential construction, the company’s biggest market, increased in the second quarter. Based on the current customer state and backlogs, the company remains cautiously optimistic that non-residential construction activity in the sectors in which it participates will continue to be healthy in the third quarter.
Reliance Steel is also seeing higher demand for toll processing services for the automobile market. Its position in the automotive sector, together with recent advances in car production and the ongoing trend to increased aluminum content, gives the company confidence that demand for its toll processing services will remain strong in the third quarter.
Commercial aerospace demand also remained substantial in the second quarter. RS expects commercial aerospace demand to improve further in the third quarter as build rates grow from 2022 levels. Moreover, demand in Reliance Steel's aerospace business's military, defense and space segments remained robust, with substantial backlogs. The trend is projected to continue in the third quarter.
The company has been following an aggressive acquisition strategy for a while as part of its core business policy to drive operating results. The acquisitions of Rotax Metals, Admiral Metals and Nu-Tech Precision Metals are in sync with its strategy of investing in high-quality businesses. The acquisition of Southern Steel Supply also expands the company’s reach in the Southern United States and boosts its value-added processing services.
Reliance Steel also remains committed to boost returns to shareholders. RS returned $132.5 million to its stockholders during the second quarter of 2023 through dividends and the repurchases. It generated $295.1 million in cash flow from operations in the quarter, owing to its strong profitability and good working capital management. Reliance Steel, in Feb 2023, also increased its quarterly dividend by 14.3% to $1.00 per share.
Reliance Steel & Aluminum Co. Price and Consensus
Reliance Steel & Aluminum Co. price-consensus-chart | Reliance Steel & Aluminum Co. Quote
Stocks to Consider
Better-ranked stocks worth a look in the basic materials space include Hawkins, Inc. HWKN, Carpenter Technology Corporation CRS and Alamos Gold Inc. AGI.
Hawkins has a projected earnings growth rate of 18.9% for the current year. It currently carries a Zacks Rank #1 (Strong Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.
Hawkins has a trailing four-quarter earnings surprise of roughly 25.6%, on average. HWKN shares are up around 52% in a year.
The Zacks Consensus Estimate for current fiscal-year earnings for CRS is currently pegged at $3.48, implying year-over-year growth of 205.3%. Carpenter Technology currently carries a Zacks Rank #2 (Buy).
Carpenter Technology has a trailing four-quarter earnings surprise of roughly 10%, on average. The stock has rallied around 86% over the past year.
Alamos Gold currently carries a Zacks Rank #2. The Zacks Consensus Estimate for AGI's current-year earnings has been revised 7.5% upward over the past 60 days.
The Zacks Consensus Estimate for current fiscal-year earnings for Alamos Gold is currently pegged at 43 cents, implying year-over-year growth of 53.6%. AGI shares have rallied around 36% in a 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 credited with a “watershed medical breakthrough” and is developing a bustling pipeline of other projects that could make a world of difference for patients suffering from diseases involving the liver, lungs, and blood. This is a timely investment that you can catch while it emerges from its bear market lows.
It could rival or surpass other recent 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
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Reliance Steel & Aluminum Co. (RS) : Free Stock Analysis Report
Carpenter Technology Corporation (CRS) : Free Stock Analysis Report
Alamos Gold Inc. (AGI) : Free Stock Analysis Report
Hawkins, Inc. (HWKN) : Free Stock Analysis Report
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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.
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2023-10-02
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RS
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Investors eyeing a purchase of Reliance Steel & Aluminum Co. (Symbol: RS) stock, but cautious about paying the going market price of $258.94/share, might benefit from considering selling puts among the alternative strategies at their disposal. One interesting put contract in particular, is the June 2024 put at the $240 strike, which has a bid at the time of this writing of $14.00. Collecting that bid as the premium represents a 5.8% return against the $240 commitment, or a 8.1% annualized rate of return (at Stock Options Channel we call this the YieldBoost).
Selling a put does not give an investor access to RS's upside potential the way owning shares would, because the put seller only ends up owning shares in the scenario where the contract is exercised. And the person on the other side of the contract would only benefit from exercising at the $240 strike if doing so produced a better outcome than selling at the going market price. (Do options carry counterparty risk? This and six other common options myths debunked). So unless Reliance Steel & Aluminum Co. sees its shares decline 7.2% and the contract is exercised (resulting in a cost basis of $226.00 per share before broker commissions, subtracting the $14.00 from $240), the only upside to the put seller is from collecting that premium for the 8.1% annualized rate of return.
Interestingly, that annualized 8.1% figure actually exceeds the 1.5% annualized dividend paid by Reliance Steel & Aluminum Co. by 6.6%, based on the current share price of $258.94. And yet, if an investor was to buy the stock at the going market price in order to collect the dividend, there is greater downside because the stock would have to lose 7.17% to reach the $240 strike price.
Always important when discussing dividends is the fact that, in general, dividend amounts are not always predictable and tend to follow the ups and downs of profitability at each company. In the case of Reliance Steel & Aluminum Co., looking at the dividend history chart for RS below can help in judging whether the most recent dividend is likely to continue, and in turn whether it is a reasonable expectation to expect a 1.5% annualized dividend yield.
Below is a chart showing the trailing twelve month trading history for Reliance Steel & Aluminum Co., and highlighting in green where the $240 strike is located relative to that history:
The chart above, and the stock's historical volatility, can be a helpful guide in combination with fundamental analysis to judge whether selling the June 2024 put at the $240 strike for the 8.1% annualized rate of return represents good reward for the risks. We calculate the trailing twelve month volatility for Reliance Steel & Aluminum Co. (considering the last 250 trading day closing values as well as today's price of $258.94) to be 27%. For other put options contract ideas at the various different available expirations, visit the RS Stock Options page of StockOptionsChannel.com.
In mid-afternoon trading on Monday, the put volume among S&P 500 components was 1.77M contracts, with call volume at 1.91M, for a put:call ratio of 0.92 so far for the day, which is unusually high compared to the long-term median put:call ratio of .65. In other words, there are lots more put buyers out there in options trading so far today than would normally be seen, as compared to call buyers. Find out which 15 call and put options traders are talking about today.
Top YieldBoost Puts of Stocks Conducting Buybacks »
Also see:
Top High Dividend Yield Stocks
Funds Holding KIPS
ETFs Holding DAL
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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2023-09-27
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RS
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Reliance Steel & Aluminum Co. RS is benefiting from strong demand across key end-use markets, a diversified product base and strategic acquisitions amid headwinds from weak pricing.
Shares of Reliance Steel have gained 47.3% in the past year compared with 20.4% rise of the industry.
Image Source: Zacks Investment Research
Reliance Steel is gaining from strong underlying demand in its major markets. Demand in non-residential construction, the company’s biggest market, increased in the second quarter. Based on the current customer state and backlogs, the company remains cautiously optimistic that non-residential construction activity in the sectors in which it participates will continue to be healthy in the third quarter.
Commercial aerospace demand also remained substantial in the second quarter. RS expects commercial aerospace demand to improve further in the third quarter as build rates grow from 2022 levels. Moreover, demand in Reliance Steel's aerospace business's military, defense and space segments remained robust, with substantial backlogs. The trend is projected to continue in the third quarter.
Reliance Steel is also seeing higher demand for toll processing services for the automobile market. Its position in the automotive sector, together with recent advances in car production and the ongoing trend to increased aluminum content, gives the company confidence that demand for its toll processing services will remain strong in the third quarter.
Moreover, RS has been following an aggressive acquisition strategy for a while as part of its core business policy to drive operating results. The acquisitions of Rotax Metals, Admiral Metals and Nu-Tech Precision Metals are in sync with its strategy of investing in high-quality businesses. The acquisition of Southern Steel Supply also expands the company’s reach in the Southern United States and boosts its value-added processing services.
However, the company continued to face pricing pressure as witnessed in the second quarter. The second-quarter average selling price per ton sold declined 19% from the year-ago quarter. Reliance Steel expects average selling price per ton sold to be down 2-4% sequentially in the third quarter factoring in lower prices for flat-rolled products as well as carbon steel tubing products. Lower selling prices are expected to affect its third-quarter performance.
Lower sequential shipments are also expected to impact the company top line in the third quarter. Reliance Steel expects a 2-4% decline in tons sold in the third quarter from the second quarter. The decline is expected to be driven by planned customer shutdowns and vacations schedules as well as one less shipping day.
Stocks to Consider
Better-ranked stocks worth a look in the basic materials space include Carpenter Technology Corporation CRS, Hawkins, Inc. HWKN and Alamos Gold Inc. AGI.
The Zacks Consensus Estimate for current fiscal-year earnings for CRS is currently pegged at $3.48, implying year-over-year growth of 205.3%. Carpenter Technology currently carries a Zacks Rank #1 (Strong Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.
Carpenter Technology has a trailing four-quarter earnings surprise of roughly 10%, on average. The stock has rallied around 100% over the past year.
Hawkins currently carrying a Zacks Rank #1. It has a projected earnings growth rate of 18.9% for the current year.
Hawkins has a trailing four-quarter earnings surprise of roughly 25.6%, on average. HWKN shares are up around 51% in a year.
Alamos Gold currently carries a Zacks Rank #2 (Buy). The Zacks Consensus Estimate for AGI's current-year earnings has been revised 7.5% upward over the past 60 days.
The Zacks Consensus Estimate for current fiscal-year earnings for Alamos Gold is currently pegged at 43 cents, implying year-over-year growth of 53.6%. AGI shares have surged around 61% in a year.
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Reliance Steel & Aluminum Co. (RS) : Free Stock Analysis Report
Carpenter Technology Corporation (CRS) : Free Stock Analysis Report
Alamos Gold Inc. (AGI) : Free Stock Analysis Report
Hawkins, Inc. (HWKN) : 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.
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2023-09-26
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RS
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Launched on 07/24/2000, the iShares S&P Mid-Cap 400 Growth ETF (IJK) is a passively managed exchange traded fund designed to provide a broad exposure to the Mid Cap Growth segment of the US equity market.
The fund is sponsored by Blackrock. It has amassed assets over $7.46 billion, making it one of the larger ETFs attempting to match the Mid Cap Growth segment of the US equity market.
Why Mid Cap Growth
With market capitalization between $2 billion and $10 billion, mid cap companies usually contain higher growth prospects than large cap companies, and are considered less risky than their small cap counterparts. Thus they have a nice balance of growth potential and stability.
While growth stocks do boast higher than average sales and earnings growth rates, and they are expected to grow faster than the wider market, investors should note these kinds of stocks have higher valuations. Also, growth stocks are a type of equity that carries more risk compared to others. They are likely to outperform value stocks in strong bull markets but over the longer-term, value stocks have delivered better returns than growth stocks in almost all markets.
Costs
When considering an ETF's total return, expense ratios are an important factor, and cheaper funds can significantly outperform their more expensive counterparts in the long term if all other factors remain equal.
Annual operating expenses for this ETF are 0.17%, putting it on par with most peer products in the space.
It has a 12-month trailing dividend yield of 1.10%.
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 25.60% of the portfolio. Consumer Discretionary and Financials round out the top three.
Looking at individual holdings, Builders Firstsource Inc (BLDR) accounts for about 1.61% of total assets, followed by Reliance Steel & Aluminum (RS) and Hubbell Inc (HUBB).
The top 10 holdings account for about 11.81% of total assets under management.
Performance and Risk
IJK seeks to match the performance of the S&P MidCap 400 Growth Index before fees and expenses. The S&P MidCap 400 Growth Index measures the performance of the mid-capitalization growth sector of the U.S. equity market.
The ETF has added about 6.99% so far this year and was up about 15.71% in the last one year (as of 09/26/2023). In the past 52-week period, it has traded between $62.69 and $77.94.
The ETF has a beta of 1.09 and standard deviation of 21.57% for the trailing three-year period, making it a medium risk choice in the space. With about 249 holdings, it effectively diversifies company-specific risk.
Alternatives
IShares S&P Mid-Cap 400 Growth 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, IJK is a great option for investors seeking exposure to the Style Box - Mid Cap Growth segment of the market. There are other additional ETFs in the space that investors could consider as well.
The Vanguard Mid-Cap Growth ETF (VOT) and the iShares Russell Mid-Cap Growth ETF (IWP) track a similar index. While Vanguard Mid-Cap Growth ETF has $10.38 billion in assets, iShares Russell Mid-Cap Growth ETF has $12.40 billion. VOT has an expense ratio of 0.07% and IWP charges 0.23%.
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.
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iShares S&P Mid-Cap 400 Growth ETF (IJK): ETF Research Reports
Reliance Steel & Aluminum Co. (RS) : Free Stock Analysis Report
Builders FirstSource, Inc. (BLDR) : Free Stock Analysis Report
Hubbell Inc (HUBB) : Free Stock Analysis Report
iShares Russell Mid-Cap Growth ETF (IWP): ETF Research Reports
Vanguard Mid-Cap Growth ETF (VOT): 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.
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2023-09-21
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RS
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Reliance Steel & Aluminum Co. RS is gaining from strong demand across key end-use markets, a diversified product base and strategic acquisitions amid certain headwinds, including weak pricing.
Shares of Reliance Steel, a Zacks Rank #3 (Hold) stock, have shot up 51.5% in the past year compared with a 21.3% rise of the industry.
Image Source: Zacks Investment Research
Strong Demand, Acquisitions Aid RS
Reliance Steel is benefiting from robust underlying demand in its key markets. It anticipates that solid demand will continue in the majority of its end markets in the third quarter of 2023.
Non-residential construction demand grew in the second quarter. Based on current client conditions and backlogs, the company is cautiously hopeful that non-residential building activity in the sectors in which it participates will remain robust in the third quarter.
Commercial aerospace demand remained strong in the second quarter as well. RS anticipates that commercial aerospace demand will strengthen further in the third quarter as build rates increase from 2022 levels. Furthermore, Reliance Steel's aerospace business' military, defense and space segments remained strong, with significant backlogs. The current trend is expected to continue through the third quarter.
Reliance Steel is also experiencing increased demand for toll processing services for the automotive industry. Its position in the automotive industry, together with recent advancements in car production and the continuous trend toward increasing aluminum content, gives the company confidence that demand for its toll processing services will stay robust in the third quarter.
Weak Prices Hurt
In the second quarter, the company faced sustained pricing pressure. The average price per ton sold in the second quarter fell 19% from the year-ago quarter. Reliance Steel anticipates a 2-4% sequential decrease in average selling price per ton sold in the third quarter, owing to lower prices for flat-rolled products and carbon steel tubing products. Lower selling prices are likely to affect the company's third-quarter performance.
Lower sequential shipments are also likely to adversely impact the company's top line in the third quarter. Reliance Steel anticipates a 2-4% decrease in tons sold in the third quarter from the second quarter. The fall is expected to be due to planned client shutdowns and vacations, as well as one fewer shipment day.
Reliance Steel & Aluminum Co. Price and Consensus
Reliance Steel & Aluminum Co. price-consensus-chart | Reliance Steel & Aluminum Co. Quote
Key Picks
Better-ranked stocks in the basic materials space include Carpenter Technology Corporation CRS, The Andersons Inc. ANDE and Hawkins Inc. HWKN.
Carpenter Technology currently carries a Zacks Rank #1 (Strong Buy). The stock has rallied roughly 92.4% in the past year. CRS beat the Zacks Consensus Estimate in three of the last four quarters while meeting in one. It delivered a trailing four-quarter earnings surprise of 9.8%, on average. You can see the complete list of today’s Zacks #1 Rank stocks here.
Andersons currently carries a Zacks Rank #1. The stock has gained roughly 57.1% in the past year. ANDE beat the Zacks Consensus Estimate in each of the last four quarters. It delivered a trailing four-quarter earnings surprise of 64.4%, on average.
Hawkins currently carries a Zacks Rank #1. The stock has rallied roughly 53.1% in the past year. HWKN beat the Zacks Consensus Estimate in each of the last four quarters. It delivered a trailing four-quarter earnings surprise of 25.6%, on average.
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The Andersons, Inc. (ANDE) : Free Stock Analysis Report
Reliance Steel & Aluminum Co. (RS) : Free Stock Analysis Report
Carpenter Technology Corporation (CRS) : Free Stock Analysis Report
Hawkins, Inc. (HWKN) : Free Stock Analysis Report
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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.
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2023-09-20
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RS
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Designed to provide broad exposure to the Mid Cap Blend segment of the US equity market, the SPDR S&P MidCap 400 ETF (MDY) is 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 $18.94 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
With market capitalization between $2 billion and $10 billion, mid cap companies usually contain higher growth prospects than large cap companies, and are considered less risky than their small cap counterparts. Thus they have a nice balance of growth potential and stability.
Blend ETFs usually hold a mix of growth and value stocks as well as stocks that exhibit both value and growth characteristics.
Costs
When considering an ETF's total return, expense ratios are an important factor, and cheaper funds can significantly outperform their more expensive counterparts in the long term if all other factors remain equal.
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 1.27%.
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 Industrials sector--about 22.50% of the portfolio. Consumer Discretionary and Financials round out the top three.
Looking at individual holdings, Builders Firstsource Inc. (BLDR) accounts for about 0.83% of total assets, followed by Reliance Steel & Aluminum Co. (RS) and Hubbell Incorporated (HUBB).
The top 10 holdings account for about 6.45% 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 added about 6.39% so far this year and it's up approximately 7.71% in the last one year (as of 09/20/2023). In the past 52-week period, it has traded between $401.58 and $498.33.
The ETF has a beta of 1.13 and standard deviation of 20.99% for the trailing three-year period, making it a medium risk choice in the space. With about 402 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 Mid-Cap ETF (VO) and the iShares Core S&P Mid-Cap ETF (IJH) track a similar index. While Vanguard Mid-Cap ETF has $53.61 billion in assets, iShares Core S&P Mid-Cap ETF has $72.60 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 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
Reliance Steel & Aluminum Co. (RS) : Free Stock Analysis Report
Builders FirstSource, Inc. (BLDR) : Free Stock Analysis Report
Hubbell Inc (HUBB) : Free Stock Analysis Report
iShares Core S&P Mid-Cap ETF (IJH): ETF Research Reports
Vanguard Mid-Cap 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.
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2023-09-18
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RS
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Designed to provide broad exposure to the Mid Cap Growth segment of the US equity market, the Invesco S&P MidCap Momentum ETF (XMMO) is a passively managed exchange traded fund launched on 03/03/2005.
The fund is sponsored by Invesco. It has amassed assets over $1.14 billion, making it one of the average sized ETFs attempting to match the Mid Cap Growth segment of the US equity market.
Why Mid Cap Growth
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.
Growth stocks have higher than average sales and earnings growth rates. While these are expected to grow faster than the broader market, they also have higher valuations. Also, growth stocks are a type of equity that carries more risk compared to others. When you consider growth versus value, growth stocks are usually the clear winner in strong bull markets but tend to fall flat in nearly all other environments.
Costs
When considering an ETF's total return, expense ratios are an important factor, and cheaper funds can significantly outperform their more expensive counterparts in the long term if all other factors remain equal.
Annual operating expenses for this ETF are 0.33%, 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
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 23.70% of the portfolio. Financials and Healthcare round out the top three.
Looking at individual holdings, Reliance Steel & Aluminum Co (RS) accounts for about 4.17% of total assets, followed by Hubbell Inc (HUBB) and Unum Group (UNM).
The top 10 holdings account for about 25.36% of total assets under management.
Performance and Risk
XMMO seeks to match the performance of the S&P MIDCAP 400 MOMENTUM INDEX before fees and expenses. The S&P Midcap 400 Momentum Index is composed of securities with strong growth characteristics selected from the Russell Midcap Index.
The ETF has added roughly 8.44% so far this year and was up about 7.86% in the last one year (as of 09/18/2023). In the past 52-week period, it has traded between $68.65 and $83.27.
The ETF has a beta of 1.01 and standard deviation of 22.03% for the trailing three-year period. With about 76 holdings, it effectively diversifies company-specific risk.
Alternatives
Invesco S&P MidCap Momentum 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, XMMO is a great option for investors seeking exposure to the Style Box - Mid Cap Growth segment of the market. There are other additional ETFs in the space that investors could consider as well.
The Vanguard Mid-Cap Growth ETF (VOT) and the iShares Russell Mid-Cap Growth ETF (IWP) track a similar index. While Vanguard Mid-Cap Growth ETF has $10.72 billion in assets, iShares Russell Mid-Cap Growth ETF has $12.74 billion. VOT has an expense ratio of 0.07% and IWP charges 0.23%.
Bottom-Line
While an excellent vehicle for long term investors, passively managed ETFs are a popular choice among institutional and retail investors due to their low costs, transparency, flexibility, and tax efficiency.
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.
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Invesco S&P MidCap Momentum ETF (XMMO): ETF Research Reports
Reliance Steel & Aluminum Co. (RS) : Free Stock Analysis Report
Unum Group (UNM) : Free Stock Analysis Report
Hubbell Inc (HUBB) : Free Stock Analysis Report
iShares Russell Mid-Cap Growth ETF (IWP): ETF Research Reports
Vanguard Mid-Cap Growth ETF (VOT): 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.
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2023-09-15
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RS
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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 MIDCAP 400 ETF Trust (Symbol: MDY) where we have detected an approximate $285.0 million dollar inflow -- that's a 1.5% increase week over week in outstanding units (from 40,220,000 to 40,820,000). Among the largest underlying components of MDY, in trading today Builders FirstSource Inc. (Symbol: BLDR) is down about 3.8%, Hubbell Inc. (Symbol: HUBB) is off about 0.3%, and Reliance Steel & Aluminum Co. (Symbol: RS) is lower by about 1.4%. For a complete list of holdings, visit the MDY Holdings page » The chart below shows the one year price performance of MDY, versus its 200 day moving average:
Looking at the chart above, MDY's low point in its 52 week range is $398.11 per share, with $500.78 as the 52 week high point — that compares with a last trade of $470.08. 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 had notable inflows »
Also see:
ETFs Holding MNST
NB shares outstanding history
KLR Average Annual Return
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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2023-09-11
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RS
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AkzoNobel N.V.’s RS shares have gained 17% year to date. The company has also outperformed its industry’s decline of 1.6% over the same time frame. Moreover, it has topped the S&P 500’s 15.9% rise over the same period.
Let’s dive into the factors behind this Zacks Rank #1 (Strong Buy) stock’s price appreciation.
Image Source: Zacks Investment Research
What’s Going in AkzoNobel’s Favor?
AkzoNobel remains exposed to pressure on volumes from the ongoing macro-economic uncertainties. However, it is taking actions to manage margins, improve operational efficiency, reduce costs, normalize working capital and de-leverage its balance sheet.
The company is also taking measures to improve its operations, grow through strategic acquisitions and deliver innovative solutions to customers. Its vast geographic footprint and leading positions in many market segments provide it opportunities for growth amid a challenging macro-economic landscape. AKZOY further expanded its significant presence in Latin America with the acquisition of Colombia-based paints and coatings company, Grupo Orbis in 2022. It also has a strong foothold in the South Asia Pacific region.
Moreover, AkzoNobel sees its cost-cutting actions to mitigate the sustained pressure from inflation in operating costs this year. Lower raw material costs are also expected to favorably impact AKZOY’s profitability in 2023. The company’s supply-chain improvement initiatives and actions to manage working capital are expected to drive cash generation and strengthen its balance sheet.
Over the past two months, the Zacks Consensus Estimate for AkzoNobel for 2023 has increased around 2.9%. The consensus estimate for 2024 has also been revised 3.7% upward over the same time frame. The favorable estimate revisions instill investor confidence in the stock.
The Zacks Consensus Estimate for earnings for 2023 for AkzoNobel is currently pegged at $1.44, reflecting an expected year-over-year growth of 67.4%. Earnings are also expected to register a 16% growth in 2024.
Akzo Nobel NV Price and Consensus
Akzo Nobel NV price-consensus-chart | Akzo Nobel NV Quote
Stocks to Consider
Other top-ranked stocks worth a look in the basic materials space include Carpenter Technology Corporation CRS, Hawkins, Inc. HWKN and Alamos Gold Inc. AGI.
The Zacks Consensus Estimate for current fiscal-year earnings for CRS is currently pegged at $3.48, implying year-over-year growth of 205.3%. Carpenter Technology currently carries a Zacks Rank #1. You can see the complete list of today’s Zacks #1 Rank stocks here.
Carpenter Technology has a trailing four-quarter earnings surprise of roughly 10%, on average. The stock has rallied around 72% in a year.
Hawkins currently carrying a Zacks Rank #1. It has a projected earnings growth rate of 18.9% for the current year.
Hawkins has a trailing four-quarter earnings surprise of roughly 25.6%, on average. HWKN shares are up around 57% in a year.
Alamos Gold currently carries a Zacks Rank #2 (Buy). The Zacks Consensus Estimate for AGI's current-year earnings has been revised 13.2% upward over the past 60 days.
The Zacks Consensus Estimate for current-year earnings for Alamos Gold is currently pegged at 43 cents, implying year-over-year growth of 53.6%. AGI shares have gained around 54% in a 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 credited with a “watershed medical breakthrough” and is developing a bustling pipeline of other projects that could make a world of difference for patients suffering from diseases involving the liver, lungs, and blood. This is a timely investment that you can catch while it emerges from its bear market lows.
It could rival or surpass other recent 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
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Reliance Steel & Aluminum Co. (RS) : Free Stock Analysis Report
Carpenter Technology Corporation (CRS) : Free Stock Analysis Report
Alamos Gold Inc. (AGI) : Free Stock Analysis Report
Hawkins, Inc. (HWKN) : Free Stock Analysis Report
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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.
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2023-09-04
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RS
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The First Trust Materials AlphaDEX ETF (FXZ) was launched on 05/08/2007, and is a passively managed exchange traded fund designed to offer broad exposure to the Materials - Broad segment of the equity market.
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.
Sector ETFs are also funds of convenience, offering many ways to gain low risk and diversified exposure to a broad group of companies in particular sectors. Materials - Broad is one of the 16 broad Zacks sectors within the Zacks Industry classification. It is currently ranked 16, placing it in bottom 0%.
Index Details
The fund is sponsored by First Trust Advisors. It has amassed assets over $551.35 million, making it one of the average sized ETFs attempting to match the performance of the Materials - Broad segment of the equity market. FXZ seeks to match the performance of the StrataQuant Materials Index before fees and expenses.
The StrataQuant Materials Index is a modified equal-dollar weighted index designed by the AMEX to objectively identify and select stocks from the Russell 1000 Index that may generate positive alpha relative to traditional passive style indices through the use of the AlphaDEX screening methodology.
Costs
Investors should also pay attention to an ETF's expense ratio. Lower cost products will produce better results than those with a higher cost, assuming all other metrics remain the same.
Annual operating expenses for this ETF are 0.61%, making it on par with most peer products in the space.
It has a 12-month trailing dividend yield of 1.99%.
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 in the Materials sector--about 94.60% of the portfolio.
Looking at individual holdings, Reliance Steel & Aluminum Co. (RS) accounts for about 5.15% of total assets, followed by Nucor Corporation (NUE) and Westlake Corporation (WLK).
The top 10 holdings account for about 43.04% of total assets under management.
Performance and Risk
Year-to-date, the First Trust Materials AlphaDEX ETF has added roughly 11.50% so far, and it's up approximately 16.10% over the last 12 months (as of 09/04/2023). FXZ has traded between $50.77 and $71.94 in this past 52-week period.
The ETF has a beta of 1.29 and standard deviation of 26.25% for the trailing three-year period, making it a medium risk choice in the space. With about 39 holdings, it has more concentrated exposure than peers.
Alternatives
First Trust Materials AlphaDEX 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, FXZ is a reasonable option for those seeking exposure to the Materials ETFs area of the market. Investors might also want to consider some other ETF options in the space.
Materials Select Sector SPDR ETF (XLB) tracks Materials Select Sector Index and the FlexShares Morningstar Global Upstream Natural Resources ETF (GUNR) tracks Morningstar Global Upstream Natural Resources Index. Materials Select Sector SPDR ETF has $6.05 billion in assets, FlexShares Morningstar Global Upstream Natural Resources ETF has $7.42 billion. XLB has an expense ratio of 0.10% and GUNR charges 0.46%.
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.
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First Trust Materials AlphaDEX ETF (FXZ): ETF Research Reports
Westlake Corp. (WLK) : Free Stock Analysis Report
Nucor Corporation (NUE) : Free Stock Analysis Report
Reliance Steel & Aluminum Co. (RS) : Free Stock Analysis Report
Materials Select Sector SPDR ETF (XLB): ETF Research Reports
FlexShares Morningstar Global Upstream Natural Resources ETF (GUNR): 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.
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2023-09-04
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RS
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Designed to provide broad exposure to the Mid Cap Blend segment of the US equity market, the Invesco S&P MidCap Quality ETF (XMHQ) is a passively managed exchange traded fund launched on 12/01/2006.
The fund is sponsored by Invesco. It has amassed assets over $1.27 billion, making it one of the average sized 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. These types of companies, then, have a good balance of stability and growth potential.
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 0.25%, putting it on par with most peer products in the space.
It has a 12-month trailing dividend yield of 1.11%.
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 Industrials sector--about 33.60% of the portfolio. Consumer Discretionary and Information Technology round out the top three.
Looking at individual holdings, Builders Firstsource Inc (BLDR) accounts for about 4.09% of total assets, followed by Manhattan Associates Inc (MANH) and Reliance Steel & Aluminum Co (RS).
The top 10 holdings account for about 27.15% of total assets under management.
Performance and Risk
XMHQ seeks to match the performance of the S&P MIDCAP 400 QUALITY INDEX before fees and expenses. The S&P MidCap 400 Quality Index is designed to provide equal-weighted exposure to approximately 800 securities of medium-sized companies in the larger US equity market.
The ETF has gained about 23.69% so far this year and is up about 28.50% in the last one year (as of 09/04/2023). In the past 52-week period, it has traded between $62.10 and $85.08.
The ETF has a beta of 1.04 and standard deviation of 22% for the trailing three-year period. With about 81 holdings, it effectively diversifies company-specific risk.
Alternatives
Invesco S&P MidCap Quality 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, XMHQ is an outstanding 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 Mid-Cap ETF (VO) and the iShares Core S&P Mid-Cap ETF (IJH) track a similar index. While Vanguard Mid-Cap ETF has $54.82 billion in assets, iShares Core S&P Mid-Cap ETF has $75.36 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.
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Invesco S&P MidCap Quality ETF (XMHQ): ETF Research Reports
Reliance Steel & Aluminum Co. (RS) : Free Stock Analysis Report
Builders FirstSource, Inc. (BLDR) : Free Stock Analysis Report
Manhattan Associates, Inc. (MANH) : Free Stock Analysis Report
iShares Core S&P Mid-Cap ETF (IJH): ETF Research Reports
Vanguard Mid-Cap 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.
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2023-09-01
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RS
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Designed to provide broad exposure to the Large Cap Value segment of the US equity market, the First Trust Rising Dividend Achievers ETF (RDVY) is a passively managed exchange traded fund launched on 01/07/2014.
The fund is sponsored by First Trust Advisors. It has amassed assets over $8.25 billion, making it one of the larger ETFs attempting to match the Large Cap Value segment of the US equity market.
Why Large Cap Value
Companies that find themselves in the large cap category typically have a market capitalization above $10 billion. Overall, they are usually a stable option, with less risk and more sure-fire cash flows than mid and small cap companies.
While value stocks have lower than average price-to-earnings and price-to-book ratios, they also have lower than average sales and earnings growth rates. Looking at their long-term performance, value stocks have outperformed growth stocks in almost all markets. They are however likely to underperform growth stocks in strong bull markets.
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 0.50%, putting it on par with most peer products in the space.
It has a 12-month trailing dividend yield of 2.31%.
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 Financials sector--about 39.80% of the portfolio. Information Technology and Energy round out the top three.
Looking at individual holdings, Louisiana-Pacific Corporation (LPX) accounts for about 2.27% of total assets, followed by Nucor Corporation (NUE) and Reliance Steel & Aluminum Co. (RS).
The top 10 holdings account for about 20.91% of total assets under management.
Performance and Risk
RDVY seeks to match the performance of the NASDAQ US Rising Dividend Achievers Index before fees and expenses. The NASDAQ US Rising Dividend Achievers Index is designed to provide access to a diversified portfolio of companies with a history of paying dividends.
The ETF has added about 10.23% so far this year and is up roughly 14.18% in the last one year (as of 09/01/2023). In the past 52-week period, it has traded between $38.88 and $49.58.
The ETF has a beta of 1.16 and standard deviation of 20.81% for the trailing three-year period, making it a medium risk choice in the space. With about 51 holdings, it effectively diversifies company-specific risk.
Alternatives
First Trust Rising Dividend Achievers 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, RDVY is a good option for those seeking exposure to the Style Box - Large Cap Value area of the market. Investors might also want to consider some other ETF options in the space.
The iShares Russell 1000 Value ETF (IWD) and the Vanguard Value ETF (VTV) track a similar index. While iShares Russell 1000 Value ETF has $50.70 billion in assets, Vanguard Value ETF has $101.31 billion. IWD has an expense ratio of 0.19% and VTV charges 0.04%.
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.
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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
First Trust Rising Dividend Achievers ETF (RDVY): ETF Research Reports
Nucor Corporation (NUE) : Free Stock Analysis Report
Reliance Steel & Aluminum Co. (RS) : Free Stock Analysis Report
Louisiana-Pacific Corporation (LPX) : Free Stock Analysis Report
Vanguard Value ETF (VTV): ETF Research Reports
iShares Russell 1000 Value ETF (IWD): 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.
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2023-08-31
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RS
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Benjamin Graham and David Dodd, Peter Lynch and Warren Buffett, legends of the value investing style, have set a foundation for millions of institutional and private investment strategies.
Their core principle?
Identifying undervalued companies to create long-term wealth.
Is it possible to channel your own "Oracle of Omaha?"
Well, it's not easy. Buffett and others pour through financial statements, perform countless calculations and conduct grueling due diligence meetings. Investment firms with plenty of resources can replicate the approach. But private investors like you — especially those with careers in other industries — may have limited resources. That's where ETFs can swoop in.
The price-to-earnings (P/E) ratio is one of the most commonly used value measures. The challenge is that many stocks have low P/Es. Sifting through the weeds to determine which P/Es are depressed and which have overlooked bargains is difficult and time-consuming.
Some investors prefer to buy exchange-traded funds (ETFs) whose strategies align with their personal preferences (high dividend yield, debt-free balance sheet, etc.). As an individual stock has a P/E ratio, so do ETFs. A P/E ratio on an ETF is simply the weighted average P/E of the fund’s holdings.
Having a low P/E ratio is just the start for these unique value ETFs.
1. Invesco S&P MidCap Quality ETF (NYSEARCA: XMHQ)
The Invesco S&P MidCap Quality ETF (NYSEARCA: XMHQ) invests in a high-quality subset of the S&P 400 Index. Roughly one out of five stocks qualify for the fund based on superior fundamentals, defined by a trio of proprietary metrics. This results in a portfolio of about 80 stocks across nine economic sectors, with industrials accounting for one-third of the fund.
As of June 30, XMHQ had a P/E ratio of 12.5x. The P/E of the broader S&P 400 Index is around 16x. For a low 0.25% expense ratio, shareholders get exposure to 80 high-quality, low P/E domestic mid-cap companies like Builders FirstSource, Manhattan Associates and Reliance Steel & Aluminum. Through July 31, the ETF’s five-year annualized return was 12.7% versus 8.3% for the S&P 400.
2. Avantis U.S. Small Cap Value ETF (NYSEARCA: AVUV)
Part of the American Century Investments fund family, the Avantis U.S. Small Cap Value ETF (NYSEARCA: AVUV) invests in smaller U.S. companies with low valuations and high profitability ratios. The fund consists of over 700 stocks, providing extreme diversification at a low cost (the expense ratio is also 0.25%).
Financials, which may be a good place in a rising rate environment, comprise 27% of AVUV followed by consumer discretionary and energy names. Concentration risk is nonexistent, with all stocks having weightings below 1%.
The ETF’s 6.6x trailing P/E ratio is one of the lowest among U.S equity ETFs, and its 0.75x price-to-book (P/B) ratio is similarly low. The weighted average profits-to-book value is 0.37x, more than twice that of the Russell 2000 small-cap benchmark. Companies with above-average profits and below-average valuations have proven to be a winning combination. Through June 30, the fund’s 26.3% annualized three-year return crushed the Russell 2000’s 15.4% return.
3. Cambria Shareholder Yield ETF (BATS: SYLD)
Do you like quantitative investment strategies? You might find the Cambria Shareholder Yield ETF (BATS: SYLD) worth considering. The fund ranks U.S. stocks across the capitalization spectrum according to their cash distribution characteristics. This includes both dividend payouts and stock buybacks, two common marks of shareholder value. Following a screening layer for value and quality, only the top 100 make it into the actively managed ETF.
From there, the stocks are weighted by market capitalization, which currently puts Chevron, McKesson and Veritiv at the top of the heap. As of June 30, SYLD had a P/E ratio of just 6.9x, roughly one-third that of the S&P 500. The 0.59% expense ratio is a tad high. Still, given the capitalization and sector diversification, it is a price worth paying to gain access to a broad set of shareholder-friendly companies.
Use Tools to Your Advantage
As a private investor, you must be more efficient in developing your investment strategy. Research tools like MarketBeat’s stock screener, stock comparison and Idea Engine are great places to start. At the end of the day, you must find a manageable set of value metrics that best define your strategy.
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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2023-08-31
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RS
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The SPDR Portfolio S&P 400 Mid Cap ETF (SPMD) was launched on 11/08/2005, and is a passively managed exchange traded fund designed to offer 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 $7.02 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
With market capitalization between $2 billion and $10 billion, mid cap companies usually contain higher growth prospects than large cap companies, and are considered less risky than their small cap counterparts. 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
When considering an ETF's total return, expense ratios are an important factor, and cheaper funds can significantly outperform their more expensive counterparts in the long term if all other factors remain equal.
Annual operating expenses for this ETF are 0.03%, making it the least expensive products in the space.
It has a 12-month trailing dividend yield of 1.55%.
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 22.60% of the portfolio. Consumer Discretionary and Financials round out the top three.
Looking at individual holdings, Builders Firstsource Inc (BLDR) accounts for about 0.83% of total assets, followed by Reliance Steel + Aluminum (RS) and Hubbell Inc (HUBB).
The top 10 holdings account for about 6.41% 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 added about 10.03% so far this year and is up roughly 9.78% in the last one year (as of 08/31/2023). In the past 52-week period, it has traded between $38.55 and $47.80.
The ETF has a beta of 1.14 and standard deviation of 20.99% for the trailing three-year period. With about 403 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 an excellent 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 Mid-Cap ETF (VO) and the iShares Core S&P Mid-Cap ETF (IJH) track a similar index. While Vanguard Mid-Cap ETF has $54.73 billion in assets, iShares Core S&P Mid-Cap ETF has $74.66 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 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
Reliance Steel & Aluminum Co. (RS) : Free Stock Analysis Report
Builders FirstSource, Inc. (BLDR) : Free Stock Analysis Report
Hubbell Inc (HUBB) : Free Stock Analysis Report
iShares Core S&P Mid-Cap ETF (IJH): ETF Research Reports
Vanguard Mid-Cap 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.
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2023-08-30
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RS
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Looking for broad exposure to the Mid Cap Growth segment of the US equity market? You should consider the SPDR S&P 400 Mid Cap Growth ETF (MDYG), a passively managed exchange traded fund launched on 11/08/2005.
The fund is sponsored by State Street Global Advisors. It has amassed assets over $1.93 billion, making it one of the larger ETFs attempting to match the Mid Cap Growth segment of the US equity market.
Why Mid Cap Growth
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 they have a nice balance of growth potential and stability.
Growth stocks have higher than average sales and earnings growth rates. While these are expected to grow faster than the broader market, they also have higher valuations. Further, growth stocks have a higher level of volatility associated with them. Compared to value stocks, growth stocks are a safer bet in a strong bull market, but don't perform as strongly in almost all other financial environments.
Costs
When considering an ETF's total return, expense ratios are an important factor, and cheaper funds can significantly outperform their more expensive counterparts in the long term if all other factors remain equal.
Annual operating expenses for this ETF are 0.15%, making it one of the least expensive products in the space.
It has a 12-month trailing dividend yield of 1.15%.
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 Industrials sector--about 25.40% of the portfolio. Consumer Discretionary and Healthcare round out the top three.
Looking at individual holdings, Builders Firstsource Inc (BLDR) accounts for about 1.61% of total assets, followed by Reliance Steel + Aluminum (RS) and Hubbell Inc (HUBB).
The top 10 holdings account for about 11.87% of total assets under management.
Performance and Risk
MDYG seeks to match the performance of the S&P MidCap 400 Growth Index before fees and expenses. The S&P MidCap 400 Growth Index measures the performance of the mid-capitalization growth sector in the U.S. equity market.
The ETF has added about 11.87% so far this year and is up roughly 8.50% in the last one year (as of 08/30/2023). In the past 52-week period, it has traded between $59.74 and $74.46.
The ETF has a beta of 1.10 and standard deviation of 21.72% for the trailing three-year period, making it a medium risk choice in the space. With about 245 holdings, it effectively diversifies company-specific risk.
Alternatives
SPDR S&P 400 Mid Cap Growth 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, MDYG is an outstanding option for investors seeking exposure to the Style Box - Mid Cap Growth segment of the market. There are other additional ETFs in the space that investors could consider as well.
The Vanguard Mid-Cap Growth ETF (VOT) and the iShares Russell Mid-Cap Growth ETF (IWP) track a similar index. While Vanguard Mid-Cap Growth ETF has $10.95 billion in assets, iShares Russell Mid-Cap Growth ETF has $12.98 billion. VOT has an expense ratio of 0.07% and IWP charges 0.23%.
Bottom-Line
While an excellent vehicle for long term investors, passively managed ETFs are a popular choice among institutional and retail investors due to their low costs, transparency, flexibility, and tax efficiency.
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 400 Mid Cap Growth ETF (MDYG): ETF Research Reports
Reliance Steel & Aluminum Co. (RS) : Free Stock Analysis Report
Builders FirstSource, Inc. (BLDR) : Free Stock Analysis Report
Hubbell Inc (HUBB) : Free Stock Analysis Report
iShares Russell Mid-Cap Growth ETF (IWP): ETF Research Reports
Vanguard Mid-Cap Growth ETF (VOT): 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.
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2023-08-29
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RS
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Reliance Steel & Aluminum Co.’s RS shares have popped 37.1% year to date. The rally has resulted in the stock outperforming its industry’s rise of 8.1% over the same time frame. It has also topped the S&P 500’s roughly 14.8% rise over the same period.
Let’s dive into the factors behind this Zacks Rank #3 (Hold) stock’s price appreciation.
Image Source: Zacks Investment Research
Strong Demand, Acquisitions Drive Reliance Steel
Reliance Steel is gaining from strong underlying demand in its major markets. It envisions healthy demand to continue in most of its end markets in the third quarter of 2023.
Demand in non-residential construction, the company’s biggest market, increased in the second quarter. Based on the current customer state and backlogs, the company remains cautiously optimistic that non-residential construction activity in the sectors in which it participates will continue to be healthy in the third quarter.
Reliance Steel is also seeing higher demand for toll processing services for the automobile market. Its position in the automotive sector, together with recent advances in car production and the ongoing trend to increased aluminum content, gives the company confidence that demand for its toll processing services will remain strong in the third quarter.
Commercial aerospace demand also remained substantial in the second quarter. RS expects commercial aerospace demand to improve further in the third quarter as build rates grow from 2022 levels. Moreover, demand in Reliance Steel's aerospace business's military, defense and space segments remained robust, with substantial backlogs. The trend is projected to continue in the third quarter.
The company has been following an aggressive acquisition strategy for a while as part of its core business policy to drive operating results. The acquisitions of Rotax Metals, Admiral Metals and Nu-Tech Precision Metals are in sync with its strategy of investing in high-quality businesses. The acquisition of Southern Steel Supply also expands the company’s reach in the Southern United States and boosts its value-added processing services.
Reliance Steel also remains committed to boost returns to shareholders. RS returned $132.5 million to its stockholders during the second quarter of 2023 through dividends and the repurchases. It generated $295.1 million in cash flow from operations in the quarter, owing to its strong profitability and good working capital management. Reliance Steel, in Feb 2023, also increased its quarterly dividend by 14.3% to $1.00 per share.
Will the Uptrend in Shares Last?
Reliance Steel is expected to continue to gain from strong demand in key markets in the near term. The healthy demand in non-residential construction, continued strength in commercial aerospace and increased production rates by automotive manufacturers are expected to aid company’s performance in the third quarter. Strong demand and organic and inorganic growth strategies adopted by the company are expected support its performance amid headwinds from weaker selling prices in the quarter.
Reliance Steel & Aluminum Co. Price and Consensus
Reliance Steel & Aluminum Co. price-consensus-chart | Reliance Steel & Aluminum Co. Quote
Stocks to Consider
Better-ranked stocks worth a look in the basic materials space include Carpenter Technology Corporation CRS, Hawkins, Inc. HWKN and PPG Industries, Inc. PPG.
The Zacks Consensus Estimate for current fiscal-year earnings for CRS is currently pegged at $3.48, implying year-over-year growth of 205.3%. Carpenter Technology currently carries a Zacks Rank #1 (Strong Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.
Carpenter Technology has a trailing four-quarter earnings surprise of roughly 10%, on average. The stock has rallied around 71% in a year.
Hawkins currently carrying a Zacks Rank #1. It has a projected earnings growth rate of 18.9% for the current year.
Hawkins has a trailing four-quarter earnings surprise of roughly 25.6%, on average. HWKN shares are up around 51% in a year.
PPG Industries currently carries a Zacks Rank #2 (Buy). The Zacks Consensus Estimate for PPG's current-year earnings has been revised 3.6% upward over the past 60 days.
PPG Industries’ earnings beat the Zacks Consensus Estimate in three of the last four quarters. It has a trailing four-quarter earnings surprise of roughly 7.3%, on average. PPG shares have gained around 9% in a year.
Zacks Names #1 Semiconductor Stock
It's only 1/9,000th the size of NVIDIA which skyrocketed more than +800% since we recommended it. NVIDIA is still strong, but our new top chip stock has much more room to boom.
With strong earnings growth and an expanding customer base, it's positioned to feed the rampant demand for Artificial Intelligence, Machine Learning, and Internet of Things. Global semiconductor manufacturing is projected to explode from $452 billion in 2021 to $803 billion by 2028.
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PPG Industries, Inc. (PPG) : Free Stock Analysis Report
Reliance Steel & Aluminum Co. (RS) : Free Stock Analysis Report
Carpenter Technology Corporation (CRS) : Free Stock Analysis Report
Hawkins, Inc. (HWKN) : Free Stock Analysis Report
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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.
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2023-08-25
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RS
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The First Trust Materials AlphaDEX ETF (FXZ) made its debut on 05/08/2007, and is a smart beta exchange traded fund that provides broad exposure to the Materials ETFs 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.
Market cap weighted indexes work great for investors who believe in market efficiency. They provide a low-cost, convenient and transparent way of replicating market returns.
However, some investors believe in the possibility of beating the market through exceptional stock selection, and choose a different type of fund that tracks non-cap weighted strategies: smart beta.
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.
Even though this space provides many choices to investors--think one of the simplest methodologies like equal-weighting and more complicated ones like fundamental and volatility/momentum based weighting--not all have been able to deliver first-rate results.
Fund Sponsor & Index
The fund is managed by First Trust Advisors, and has been able to amass over $530.81 million, which makes it one of the average sized ETFs in the Materials ETFs. Before fees and expenses, FXZ seeks to match the performance of the StrataQuant Materials Index.
The StrataQuant Materials Index is a modified equal-dollar weighted index designed by the AMEX to objectively identify and select stocks from the Russell 1000 Index that may generate positive alpha relative to traditional passive style indices through the use of the AlphaDEX screening methodology.
Cost & Other Expenses
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.
Operating expenses on an annual basis are 0.61% for FXZ, making it on par with most peer products in the space.
It's 12-month trailing dividend yield comes in at 2.07%.
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.
For FXZ, it has heaviest allocation in the Materials sector --about 94.50% of the portfolio.
When you look at individual holdings, Reliance Steel & Aluminum Co. (RS) accounts for about 5.15% of the fund's total assets, followed by Nucor Corporation (NUE) and Westlake Corporation (WLK).
FXZ's top 10 holdings account for about 43.04% of its total assets under management.
Performance and Risk
So far this year, FXZ return is roughly 7.39%, and it's up approximately 3.70% in the last one year (as of 08/25/2023). During this past 52-week period, the fund has traded between $50.77 and $71.94.
The fund has a beta of 1.28 and standard deviation of 26.26% for the trailing three-year period, which makes FXZ a medium risk choice in this particular space. With about 39 holdings, it has more concentrated exposure than peers.
Alternatives
First Trust Materials AlphaDEX ETF is a reasonable option for investors seeking to outperform the Materials ETFs segment of the market. However, there are other ETFs in the space which investors could consider.
Materials Select Sector SPDR ETF (XLB) tracks Materials Select Sector Index and the FlexShares Morningstar Global Upstream Natural Resources ETF (GUNR) tracks Morningstar Global Upstream Natural Resources Index. Materials Select Sector SPDR ETF has $5.53 billion in assets, FlexShares Morningstar Global Upstream Natural Resources ETF has $7.15 billion. XLB has an expense ratio of 0.10% and GUNR charges 0.46%.
Investors looking for cheaper and lower-risk options should consider traditional market cap weighted ETFs that aim to match the returns of the Materials ETFs.
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.
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First Trust Materials AlphaDEX ETF (FXZ): ETF Research Reports
Westlake Corp. (WLK) : Free Stock Analysis Report
Nucor Corporation (NUE) : Free Stock Analysis Report
Reliance Steel & Aluminum Co. (RS) : Free Stock Analysis Report
Materials Select Sector SPDR ETF (XLB): ETF Research Reports
FlexShares Morningstar Global Upstream Natural Resources ETF (GUNR): 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.
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2023-08-24
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RS
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Reliance Steel & Aluminum Co. RS is gaining from strong demand across key end-use markets, a diversified product base and strategic acquisitions amid certain headwinds including weak pricing.
Shares of Reliance Steel, a Zacks Rank #3 (Hold) stock, have shot up 40% in the past year compared with 2.9% decline of the industry.
Image Source: Zacks Investment Research
Strong Demand, Acquisitions Aid Reliance Steel
Reliance Steel is benefiting from strong underlying demand in its major markets. It envisions healthy demand to continue in most of its end markets in the third quarter of 2023.
Demand in non-residential construction, the company’s biggest market, increased in the second quarter. Based on the current customer state and backlogs, the company remains cautiously optimistic that non-residential construction activity in the sectors in which it participates will continue to be healthy in the third quarter.
Commercial aerospace demand also remained substantial in the second quarter. RS expects commercial aerospace demand to improve further in the third quarter as build rates grow from 2022 levels. Moreover, demand in Reliance Steel's aerospace business's military, defense and space segments remained robust, with substantial backlogs. The trend is projected to continue in the third quarter.
Reliance Steel is also seeing higher demand for toll processing services for the automobile market. Its position in the automotive sector, together with recent advances in car production and the ongoing trend to increased aluminum content, gives the company confidence that demand for its toll processing services will remain strong in the third quarter.
Moreover, RS has been following an aggressive acquisition strategy for a while as part of its core business policy to drive operating results. The acquisitions of Rotax Metals, Admiral Metals and Nu-Tech Precision Metals are in sync with its strategy of investing in high-quality businesses. The acquisition of Southern Steel Supply also expands the company’s reach in the Southern United States and boosts its value-added processing services.
Pricing Pressure Ails
The company continued to face pricing pressure in the second quarter. The second-quarter average selling price per ton sold declined 19% from the year-ago quarter. Reliance Steel expects average selling price per ton sold to be down 2-4% sequentially in the third quarter factoring in lower prices for flat-rolled products as well as carbon steel tubing products. Lower selling prices are expected to affect its third-quarter performance.
Lower sequential shipments are also expected to impact the company top line in the third quarter. Reliance Steel expects a 2-4% decline in tons sold in the third quarter from the second quarter. The decline is expected to be driven by planned customer shutdowns and vacations schedules as well as one less shipping day.
Reliance Steel & Aluminum Co. Price and Consensus
Reliance Steel & Aluminum Co. price-consensus-chart | Reliance Steel & Aluminum Co. Quote
Stocks to Consider
Better-ranked stocks worth a look in the basic materials space include Carpenter Technology Corporation CRS, Hawkins, Inc. HWKN and PPG Industries, Inc. PPG.
The Zacks Consensus Estimate for current fiscal-year earnings for CRS is currently pegged at $3.48, implying year-over-year growth of 205.3%. Carpenter Technology currently carries a Zacks Rank #1 (Strong Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.
Carpenter Technology has a trailing four-quarter earnings surprise of roughly 10%, on average. The stock has rallied around 51% in a year.
Hawkins currently carrying a Zacks Rank #1. It has a projected earnings growth rate of 18.9% for the current year.
Hawkins has a trailing four-quarter earnings surprise of roughly 25.6%, on average. HWKN shares are up around 36% in a year.
PPG Industries currently carries a Zacks Rank #2 (Buy). The Zacks Consensus Estimate for PPG's current-year earnings has been revised 3.6% upward over the past 60 days.
PPG Industries’ earnings beat the Zacks Consensus Estimate in three of the last four quarters. It has a trailing four-quarter earnings surprise of roughly 7.3%, on average. PPG shares have gained around 4% in a year.
Top 5 ChatGPT Stocks Revealed
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PPG Industries, Inc. (PPG) : Free Stock Analysis Report
Reliance Steel & Aluminum Co. (RS) : Free Stock Analysis Report
Carpenter Technology Corporation (CRS) : Free Stock Analysis Report
Hawkins, Inc. (HWKN) : 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.
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2023-08-21
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RS
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If you're interested in broad exposure to the Mid Cap Blend segment of the US equity market, look no further than the iShares Core S&P Mid-Cap ETF (IJH), a passively managed exchange traded fund launched on 05/22/2000.
The fund is sponsored by Blackrock. It has amassed assets over $72.21 billion, making it the largest 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 they have a nice balance of growth potential and stability.
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
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 cheaper products in the space.
It has a 12-month trailing dividend yield of 1.56%.
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 22.70% of the portfolio. Consumer Discretionary and Financials round out the top three.
Looking at individual holdings, Hubbell Inc (HUBB) accounts for about 0.78% of total assets, followed by Builders Firstsource Inc (BLDR) and Reliance Steel & Aluminum (RS).
The top 10 holdings account for about 4.69% 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 return is roughly 7.20% so far this year and is down about -0.06% in the last one year (as of 08/21/2023). In the past 52-week period, it has traded between $219.26 and $272.40.
The ETF has a beta of 1.13 and standard deviation of 21.06% 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 Mid-Cap 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 Mid-Cap ETF (IWR) and the Vanguard Mid-Cap ETF (VO) track a similar index. While iShares Russell Mid-Cap ETF has $28.14 billion in assets, Vanguard Mid-Cap ETF has $53.31 billion. IWR has an expense ratio of 0.18% and VO charges 0.04%.
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.
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Zacks’ free Fund Newsletter will brief you on top news and analysis, as well as top-performing ETFs, each week.
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iShares Core S&P Mid-Cap ETF (IJH): ETF Research Reports
Reliance Steel & Aluminum Co. (RS) : Free Stock Analysis Report
Builders FirstSource, Inc. (BLDR) : Free Stock Analysis Report
Hubbell Inc (HUBB) : Free Stock Analysis Report
Vanguard Mid-Cap ETF (VO): ETF Research Reports
iShares Russell Mid-Cap ETF (IWR): 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.
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2023-08-18
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RS
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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 $89.9 million dollar inflow -- that's a 0.1% increase week over week in outstanding units (from 279,950,000 to 280,300,000). Among the largest underlying components of IJH, in trading today Builders FirstSource Inc. (Symbol: BLDR) is up about 2.4%, Reliance Steel & Aluminum Co. (Symbol: RS) is down about 0.5%, and Hubbell Inc. (Symbol: HUBB) is up by about 0.3%. 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 $217.39 per share, with $273.73 as the 52 week high point — that compares with a last trade of $256.60. 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 had notable inflows »
Also see:
Funds Holding QK
LUCD shares outstanding history
IFN Insider Buying
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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2023-08-17
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RS
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Designed to provide broad exposure to the Style Box - Large Cap Value category of the market, the First Trust Rising Dividend Achievers ETF (RDVY) is a smart beta exchange traded fund launched on 01/07/2014.
What Are Smart Beta ETFs?
Products that are based on market cap weighted indexes, which are strategies designed to reflect a specific market segment or the market as a whole, have traditionally dominated the ETF industry.
Market cap weighted indexes offer a low-cost, convenient, and transparent way of replicating market returns, and are a good option for investors who believe in market efficiency.
But, there are some investors who would rather invest in smart beta funds; these funds track non-cap weighted strategies, and are a strong option for those who prefer choosing great stocks in order to beat the market.
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.
Methodologies like equal-weighting, one of the simplest options out there, fundamental weighting, and volatility/momentum based weighting are all choices offered to investors in this space, but not all of them can deliver superior returns.
Fund Sponsor & Index
Because the fund has amassed over $8.16 billion, this makes it one of the larger ETFs in the Style Box - Large Cap Value. RDVY is managed by First Trust Advisors. RDVY seeks to match the performance of the NASDAQ US Rising Dividend Achievers Index before fees and expenses.
The NASDAQ US Rising Dividend Achievers Index is designed to provide access to a diversified portfolio of companies with a history of paying dividends.
Cost & Other Expenses
Cost is an important factor in selecting the right ETF, and cheaper funds can significantly outperform their more expensive cousins if all other fundamentals are the same.
Operating expenses on an annual basis are 0.50% for this ETF, which makes it on par with most peer products in the space.
It has a 12-month trailing dividend yield of 2.34%.
Sector Exposure and Top Holdings
Most ETFs are very transparent products, and disclose their holdings on a daily basis. ETFs also offer diversified exposure, which minimizes single stock risk, though it's still important for investors to research a fund's holdings.
This ETF has heaviest allocation in the Financials sector - about 40.30% of the portfolio. Information Technology and Energy round out the top three.
Taking into account individual holdings, Louisiana-Pacific Corporation (LPX) accounts for about 2.27% of the fund's total assets, followed by Nucor Corporation (NUE) and Reliance Steel & Aluminum Co. (RS).
Its top 10 holdings account for approximately 20.91% of RDVY's total assets under management.
Performance and Risk
So far this year, RDVY return is roughly 9%, and is up about 4.41% in the last one year (as of 08/17/2023). During this past 52-week period, the fund has traded between $38.88 and $49.58.
RDVY has a beta of 1.15 and standard deviation of 20.83% for the trailing three-year period, which makes the fund a medium risk choice in the space. With about 51 holdings, it effectively diversifies company-specific risk.
Alternatives
First Trust Rising Dividend Achievers ETF is a reasonable option for investors seeking to outperform the Style Box - Large Cap Value segment of the market. However, there are other ETFs in the space which investors could consider.
IShares Russell 1000 Value ETF (IWD) tracks Russell 1000 Value Index and the Vanguard Value ETF (VTV) tracks CRSP U.S. Large Cap Value Index. IShares Russell 1000 Value ETF has $50.19 billion in assets, Vanguard Value ETF has $100.71 billion. IWD has an expense ratio of 0.18% and VTV charges 0.04%.
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 - Large Cap Value.
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
First Trust Rising Dividend Achievers ETF (RDVY): ETF Research Reports
Nucor Corporation (NUE) : Free Stock Analysis Report
Reliance Steel & Aluminum Co. (RS) : Free Stock Analysis Report
Louisiana-Pacific Corporation (LPX) : Free Stock Analysis Report
Vanguard Value ETF (VTV): ETF Research Reports
iShares Russell 1000 Value ETF (IWD): 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.
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2023-08-16
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RS
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Designed to provide broad exposure to the Mid Cap Growth segment of the US equity market, the Vanguard S&P Mid-Cap 400 Growth ETF (IVOG) is a passively managed exchange traded fund launched on 09/09/2010.
The fund is sponsored by Vanguard. It has amassed assets over $776.49 million, making it one of the average sized ETFs attempting to match the Mid Cap Growth segment of the US equity market.
Why Mid Cap Growth
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 they have a nice balance of growth potential and stability.
Growth stocks have higher than average sales and earnings growth rates. While these are expected to grow faster than the broader market, they also have higher valuations. Also, growth stocks are a type of equity that carries more risk compared to others. When you consider growth versus value, growth stocks are usually the clear winner in strong bull markets but tend to fall flat in nearly all other environments.
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 0.15%, making it one of the least expensive products in the space.
It has a 12-month trailing dividend yield of 0.94%.
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 Industrials sector--about 26.30% of the portfolio. Consumer Discretionary and Healthcare round out the top three.
Looking at individual holdings, Builders Firstsource Inc. (BLDR) accounts for about 1.62% of total assets, followed by Hubbell Inc. (HUBB) and Reliance Steel & Aluminum Co. (RS).
The top 10 holdings account for about 11.7% of total assets under management.
Performance and Risk
IVOG seeks to match the performance of the S&P MidCap 400 Growth Index before fees and expenses. The S&P MidCap 400 Growth Index measures the performance of growth stocks of medium-size U.S. companies.
The ETF return is roughly 11.17% so far this year and it's up approximately 1.36% in the last one year (as of 08/16/2023). In the past 52-week period, it has traded between $78 and $96.91.
The ETF has a beta of 1.10 and standard deviation of 21.51% for the trailing three-year period, making it a medium risk choice in the space. With about 239 holdings, it effectively diversifies company-specific risk.
Alternatives
Vanguard S&P Mid-Cap 400 Growth 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, IVOG is an outstanding option for investors seeking exposure to the Style Box - Mid Cap Growth segment of the market. There are other additional ETFs in the space that investors could consider as well.
The Vanguard Mid-Cap Growth ETF (VOT) and the iShares Russell Mid-Cap Growth ETF (IWP) track a similar index. While Vanguard Mid-Cap Growth ETF has $10.77 billion in assets, iShares Russell Mid-Cap Growth ETF has $12.85 billion. VOT has an expense ratio of 0.07% and IWP charges 0.23%.
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
Vanguard S&P Mid-Cap 400 Growth ETF (IVOG): ETF Research Reports
Reliance Steel & Aluminum Co. (RS) : Free Stock Analysis Report
Builders FirstSource, Inc. (BLDR) : Free Stock Analysis Report
Hubbell Inc (HUBB) : Free Stock Analysis Report
iShares Russell Mid-Cap Growth ETF (IWP): ETF Research Reports
Vanguard Mid-Cap Growth ETF (VOT): 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.
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