Markets
News
Analysis
User
24/7
Economic Calendar
Education
Data
- Names
- Latest
- Prev
A:--
F: --
P: --
A:--
F: --
P: --
A:--
F: --
P: --
A:--
F: --
P: --
A:--
F: --
P: --
A:--
F: --
P: --
A:--
F: --
P: --
A:--
F: --
P: --
A:--
F: --
P: --
A:--
F: --
P: --
A:--
F: --
P: --
A:--
F: --
P: --
A:--
F: --
P: --
A:--
F: --
P: --
A:--
F: --
P: --
A:--
F: --
P: --
A:--
F: --
P: --
A:--
F: --
P: --
A:--
F: --
A:--
F: --
P: --
A:--
F: --
P: --
A:--
F: --
P: --
A:--
F: --
A:--
F: --
A:--
F: --
A:--
F: --
P: --
A:--
F: --
P: --
--
F: --
P: --
--
F: --
P: --
--
F: --
P: --
--
F: --
P: --
--
F: --
P: --
--
F: --
P: --
--
F: --
P: --
--
F: --
P: --
--
F: --
P: --
--
F: --
P: --
--
F: --
P: --
--
F: --
P: --
--
F: --
P: --
--
F: --
P: --
--
F: --
P: --
--
F: --
P: --
--
F: --
P: --
--
F: --
P: --
--
F: --
P: --
--
F: --
P: --
--
F: --
P: --
--
F: --
P: --
--
F: --
P: --
--
F: --
P: --
--
F: --
P: --
--
F: --
P: --
--
F: --
P: --
--
F: --
P: --
--
F: --
P: --
No matching data
Latest Views
Latest Views
Trending Topics
To quickly learn market dynamics and follow market focuses in 15 min.
In the world of mankind, there will not be a statement without any position, nor a remark without any purpose.
Inflation, exchange rates, and the economy shape the policy decisions of central banks; the attitudes and words of central bank officials also influence the actions of market traders.
Money makes the world go round and currency is a permanent commodity. The forex market is full of surprises and expectations.
Top Columnists
Enjoy exciting activities, right here at FastBull.
The latest breaking news and the global financial events.
I have 5 years of experience in financial analysis, especially in aspects of macro developments and medium and long-term trend judgment. My focus is maily on the developments of the Middle East, emerging markets, coal, wheat and other agricultural products.
BeingTrader chief Trading Coach & Speaker, 8+ years of experience in the forex market trading mainly XAUUSD, EUR/USD, GBP/USD, USD/JPY, and Crude Oil. A confident trader and analyst who aims to explore various opportunities and guide investors in the market. As an analyst I am looking to enhance the trader’s experience by supporting them with sufficient data and signals.
Latest Update
Risk Warning on Trading HK Stocks
Despite Hong Kong's robust legal and regulatory framework, its stock market still faces unique risks and challenges, such as currency fluctuations due to the Hong Kong dollar's peg to the US dollar and the impact of mainland China's policy changes and economic conditions on Hong Kong stocks.
HK Stock Trading Fees and Taxation
Trading costs in the Hong Kong stock market include transaction fees, stamp duty, settlement charges, and currency conversion fees for foreign investors. Additionally, taxes may apply based on local regulations.
HK Non-Essential Consumer Goods Industry
The Hong Kong stock market encompasses non-essential consumption sectors like automotive, education, tourism, catering, and apparel. Of the 643 listed companies, 35% are mainland Chinese, making up 65% of the total market capitalization. Thus, it's heavily influenced by the Chinese economy.
HK Real Estate Industry
In recent years, the real estate and construction sector's share in the Hong Kong stock index has notably decreased. Nevertheless, as of 2022, it retains around 10% market share, covering real estate development, construction engineering, investment, and property management.
Hongkong, China
Ho Chi Minh, Vietnam
Dubai, UAE
Lagos, Nigeria
Cairo, Egypt
White Label
Data API
Web Plug-ins
Affiliate Program
View All
No data
Not Logged In
Log in to access more features
FastBull Membership
Not yet
Purchase
Log In
Sign Up
Hongkong, China
Ho Chi Minh, Vietnam
Dubai, UAE
Lagos, Nigeria
Cairo, Egypt
White Label
Data API
Web Plug-ins
Affiliate Program
It is not easy to find value stocks. Being aware of a company's key financial numbers like earnings per share and sales growth can help investors identify stocks that are trading for less than their worth. However, a proper analysis of the fundamentals with the help of a number of metrics is required to determine whether a stock is a good bargain or not.
Though price-to-earnings (P/E) and price-to-sales (P/S) valuation tools are more commonly used for stock selection, the price-to-book ratio (P/B ratio) is also an easy-to-use metric for identifying low-priced stocks with high-growth prospects.
The P/B ratio is calculated as below:
P/B ratio = market price per share/book value of equity per share.
The P/B ratio helps to identify low-priced stocks with high growth prospects. SSR Mining SSRM, Axis Capital Holdings AXS, Unum Group UNM, Enersys ENS and ZIM Integrated Shipping Services ZIM are some such stocks.
Now, let us understand the concept of book value.
What is Book Value?
There are several ways by which book value can be defined. Book value is the total value that would be left over, according to the company’s balance sheet, if it goes bankrupt immediately. In other words, this is what shareholders would theoretically receive if a company liquidates all its assets after paying off all its liabilities.
It is calculated by subtracting total liabilities from the total assets of a company. In most cases, this equates to common stockholders’ equity on the balance sheet. However, depending on the company’s balance sheet, intangible assets should also be subtracted from the total assets to determine book value.
Understanding P/B Ratio
By comparing the book value of equity to its market price, we get an idea of whether a company is under or overpriced. However, like P/E or P/S ratio, it is always better to compare P/B ratios within industries.
A P/B ratio of less than one means that the stock is trading at less than its book value or the stock is undervalued and, therefore, a good buy. Conversely, a stock with a ratio greater than one can be interpreted as being overvalued or relatively expensive.
For example, a stock with a P/B ratio of 2 means that we pay $2 for every $1 of book value. Thus, the higher the P/B, the more expensive the stock.
But there is a warning. A P/B ratio of less than one can also mean that the company is earning weak or even negative returns on its assets or that the assets are overstated, in which case the stock should be shunned because it may be destroying shareholder value. Conversely, the stock’s price may be significantly high — thereby pushing the P/B ratio to more than one — in the likely case that it has become a takeover target, a good enough reason to own the stock.
Moreover, the P/B ratio is not without limitations. It is useful for businesses like finance, investments, insurance and banking or manufacturing companies with many liquid/tangible assets on the books. However, it can be misleading for firms with significant R&D expenditure, high debt, service companies, or those with negative earnings.
In any case, the ratio is not particularly relevant as a standalone number. One should analyze other ratios like P/E, P/S and debt to equity before arriving at a reasonable investment decision.
Screening Parameters
Price to Book (common Equity) less than X-Industry Median: A lower P/B compared with the industry average implies that there is enough room for the stock to gain.
Price to Sales less than X-Industry Median: The P/S ratio determines how much the market values every dollar of the company’s sales/revenues — a lower ratio than the industry makes the stock attractive.
Price to Earnings using F(1) estimate less than X-Industry Median: The P/E ratio (F1) values a company based on its current share price relative to its estimated earnings per share — a lower ratio than the industry is considered better.
PEG less than 1: PEG links the P/E ratio to the future growth rate of the company. The PEG ratio portrays a more complete picture than the P/E ratio. A value of less than 1 indicates that the stock is undervalued, and investors need to pay less for a stock that has bright earnings growth prospects.
Current Price greater than or equal to $5: They must all be trading at a minimum of $5 or higher.
Average 20-Day Volume greater than or equal to 100,000: A substantial trading volume ensures that the stock is easily tradable.
Zacks Rank less than or equal to #2: Zacks Rank #1 (Strong Buy) or 2 (Buy) stocks are known to outperform irrespective of the market environment.
Value Score equal to A or B: Our research shows that stocks with a Value Score of A or B, when combined with a Zacks Rank #1 or 2, offer the best opportunities in the value investing space.
Here are five of the six stocks that qualified the screening:
Based in Vancouver, Canada, SSR Mining is a mining company focusing on the operation, development, exploration and acquisition of precious metal projects. The company primarily explores for gold, silver, and mineral properties. It principally serves electronics, coin fabrication, dentistry, jewelry, industrial, technology, pharmaceuticals and solar energy markets.
SSRM currently has a Zacks Rank #2 and a Value Score of A. Youcan see the complete list of today’s Zacks #1 Rank stocks here.
SSR Mining has a projected 3-5-year EPS growth rate of 17.69%.
AXIS Capital Holdings is the Bermuda-based holding company for the AXIS group of companies. The company provides a broad range of specialty insurance and reinsurance solutions to its clients on a worldwide basis through operating subsidiaries and branch networks based in Bermuda, the United States, Europe, Singapore, Canada, Latin America and the Middle East.
AXS presently has a Zacks Rank #2 and a Value Score of A. The company has a projected 3-5-year EPS growth rate of 27.82%.
Headquartered in Chattanooga, TN, Unum Group was created following the June 1999 merger of Provident Companies and Unum Corporation. Along with disability insurance, the company provides long-term care insurance, life insurance, employer- and employee-paid group benefits and related services.
UNM has a Zacks Rank #2 and a Value Score of A. UNM has a projected 3–5-year EPS growth rate of 8.0%.
Headquartered in Pennsylvania, EnerSys engages in manufacturing, marketing and distribution of various industrial batteries worldwide. It has a Zacks Rank #2 currently.
ENS has a Value Score of A. EnerSys has a projected 3–5-year EPS growth rate of 18.0%.
Haifa, Israel-based ZIM Integrated Shipping Services provides container shipping and related services, along with its subsidiaries. The company offers dry, reefer, project, out-of-gauge, breakbulk and dangerous cargo services, and inland transport services.
ZIM Integrated Shipping Services has a Zacks Rank #1 and a Value Score of A at present. ZIM has a projected 3-5-year EPS growth rate of 47.44%.
Get the remaining stock on the list and start putting this and other ideas to the test. It can all be done with the Research Wizard stock picking and back-testing software.
The Research Wizard is a great place to begin. It's easy to use. Everything is in plain language. And it's very intuitive. Start your Research Wizard trial today. And the next time you read an economic report, open up the Research Wizard, plug your finds in, and see what gems come out.
Click here to sign up for a free trial to the Research Wizard today.
Disclosure: Officers, directors and/or employees of Zacks Investment Research may own or have sold short securities and/or hold long and/or short positions in options that are mentioned in this material. An affiliated investment advisory firm may own or have sold short securities and/or hold long and/or short positions in options that are mentioned in this material.
Disclosure: Performance information for Zacks’ portfolios and strategies are available at: https://www.zacks.com/performance
Zacks Investment Research
In the equity market, investments need to be prudently hedged to overcome uncertainties and limit losses related to external shocks. A question that often arises is whether one should resort to a value strategy that seeks discounted stocks or opt for growth investing in times of extreme market instability. The investing track of Warren Buffett over the past few decades and his gradual shift from being a pure-play value investor to a GARP (growth at a reasonable price) investor might give us all the answers.
The GARP theory, while mixing the growth and value-investing principles, gives us a hybrid strategy showing whether or not the stocks are somewhat undervalued and have solid sustainable growth potential (Investopedia). Several stocks, which have surged significantly in the recent past, show an overwhelming success of this hybrid investing strategy over pure-play value and growth investments.
Here, we will discuss the success of five such stocks. These include Qifu Technology, Inc. QFIN, KT Corporation KT, Atour Lifestyle Holdings Limited ATAT and ZIM Integrated Shipping Services ZIM and H&R Block HRB.
More on GARP
GARP investing gives priority to one of the popular value metrics — the price/earnings growth (PEG) ratio. Although it is categorized under value investing, this strategy follows the principles of both growth and value investing.
The PEG ratio is defined as (Price/ Earnings)/Earnings Growth Rate
It relates the stocks’ P/E ratio with the future earnings growth rates.
While P/E alone gives an idea of stocks that are trading at a discount, PEG, while adding the growth element to it, helps identify stocks with solid future potential.
A lower PEG ratio, preferably less than 1, is always better for GARP investors.
Say, for example, if a stock's P/E ratio is 10 and the expected long-term growth rate is 15%, the company's PEG will come down to 0.66, a ratio indicating both undervaluation and future growth potential.
Unfortunately, this ratio is often neglected due to investors' limitations in calculating the future earnings growth rate of a stock.
There are some drawbacks to using the PEG ratio, though. It does not consider the very common situation of changing growth rates, such as the forecast of the first three years at a very high growth rate, followed by a sustainable but lower growth rate over the long term.
Hence, PEG-based investing can be even more rewarding if some other relevant parameters are also taken into consideration.
Zacks Screening Criteria
Here are the screening criteria for a winning strategy:
PEG Ratio less than X Industry Median
P/E Ratio (using F1) less than X Industry Median (For more accurate valuation purpose)
Zacks Rank of 1 (Strong Buy) or 2 (Buy) (Whether good market conditions or bad, stocks with a Zacks Rank #1 or #2 have a proven history of success.)
Market Capitalization greater than $1 Billion (This helps us to focus on companies that have strong liquidity.)
Average 20-day Volume greater than 50,000: A substantial trading volume ensures that the stock is easily tradable.
Percentage Change F1 Earnings Estimate Revisions (4 Weeks) greater than 5%: Upward estimate revisions add to the optimism, suggesting further bullishness.
Value Score of less than or equal to B: Our research shows that stocks with a Style Score of A or B, when combined with a Zacks Rank #1, 2 or 3 (Hold), offer the best upside potential.
Our Picks
Here are the five stocks out of the nine that qualified the screening:
Qifu Technology: It is a leading Credit-Tech platform in China. The company provides a comprehensive suite of technology services to assist financial institutions and consumers and SMEs in the loan lifecycle, ranging from borrower acquisition, preliminary credit assessment, fund matching and post-facilitation services.
QFIN stock can also be an impressive GARP investment pick with its Zacks Rank #2 and Value Score of A. Apart from a discounted PEG and P/E, Qifu Technology also has a solid long-term expected growth rate of 63.5%.
KT Corporation: It is the largest integrated telecom and digital platform service provider based in South Korea. Its principal services include mobile, Broadband, IPTV, B2B communications and fixed-line telephony.
KT has an impressive growth rate of 11.3% for the next five years. The stock currently has a Value Score of A and carries a Zacks Rank #2. You can see the complete list of today’s Zacks #1 Rank stocks here.
Atour: It is a leading hospitality and lifestyle company in China, with a distinct portfolio of lifestyle hotel brands. Atour is the leading upper midscale hotel chain in China and is the first Chinese hotel chain to develop a scenario-based retail business.
Atour carries a Zacks Rank of 2 and has a Value Score of A. ATAT has an impressive long-term expected growth rate of 33.7%.
ZIM: Israel-based ZIM is a leading global container liner shipping company with established operations in more than 90 countries, serving approximately 33,000 customers in over 300 ports worldwide. ZIM leverages digital strategies to provide customers with innovative seaborne transportation and logistics services and exceptional customer experience.
ZIM can also be an impressive value investment pick with its Zacks Rank #1 and a Value Score of A. Apart from a discounted PEG and P/E, the stock also has a solid long-term expected growth rate of 47.4%.
H&R Block: It is a leading provider of tax preparation services. The company provides assisted income tax return preparation, do-it-yourself (DIY) tax solutions, and other products and services associated with income tax return preparation in the United States, Canada and Australia.
HRB stock can be an impressive pick with its Zacks Rank #1 and a Value Score of B. Apart from a discounted PEG and P/E, H&R Block also has an impressive long-term historical growth rate of 15.5%.
You can get the rest of the stocks on this list by signing up now for your 2-week free trial to the Research Wizard and start using this screen in your own trading. Further, you can also create your own strategies and test them first before taking the investment plunge.
The Research Wizard is a great place to begin. It's easy to use. Everything is in plain language. And it's very intuitive. Start your Research Wizard trial today. And the next time you read an economic report, open up the Research Wizard, plug your finds in, and see what gems come out.
Click here to sign up for a free trial to the Research Wizard today.
Disclosure: Officers, directors and/or employees of Zacks Investment Research may own or have sold short securities and/or hold long and/or short positions in options that are mentioned in this material. An affiliated investment advisory firm may own or have sold short securities and/or hold long and/or short positions in options that are mentioned in this material.
Disclosure: Performance information for Zacks’ portfolios and strategies are available at: https://www.zacks.com/performance.
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
Zacks Investment Research
Friday, August 30, 2024
The Zacks Research Daily presents the best research output of our analyst team. Today's Research Daily features new research reports on 16 major stocks, including NVIDIA Corporation , AT&T Inc. and Lockheed Martin Corporation , as well as two micro-cap stocks Steel Partners Holdings L.P. and Natural Resource Partners L.P. . The Zacks microcap research is unique as our research content on these small and under-the-radar companies is the only research of its type in the country.
These research reports have been hand-picked from the roughly 70 reports published by our analyst team today.
You can see all of today’s research reports here >>>
NVIDIA shares have lost some ground following the beat-and-raise quarterly release on Wednesday, August 28th, with market participants seemingly shrugging the company's raised guidance. But this lack of stock market follow through for the shares could very well be a reflection of the stock's impressive gains over the past year rather than a comment on underlying busines trends.
The company is benefiting from the strong growth of artificial intelligence , high-performance and accelerated computing. The data center end-market business is benefiting from the growing demand for generative AI and large language models using graphic processing units (GPUs) based on NVIDIA Hopper and Ampere architectures.
A surge in hyperscale demand and higher sell-ins to partners across the Gaming and ProViz end markets following the normalization of channel inventory are acting as tailwinds. Collaborations with Mercedes-Benz and Audi are likely to advance its presence in the autonomous vehicles and other automotive electronics space.
However, its near-term prospects are likely to be hurt by softening IT spending amid macroeconomic headwinds. The United States and China’s tit-for-tat trade war is also a major concern.
(You can read the full research report on NVIDIA here >>>)
Shares of AT&T have outperformed the Zacks Wireless National industry over the year-to-date period (+23.4% vs. +21.7%). The company is expected to benefit from an integrated fiber expansion strategy that improves broadband connectivity, while steady 5G deployments are likely to boost end-user experience. The deployment of O-RAN architecture is likely to offer more flexibility, lower costs and monetize the network to reduce huge debt burden.
With a customer-centric business model, AT&T is witnessing healthy momentum in its postpaid wireless business with a lower churn rate and increased adoption of higher-tier unlimited plans. However, lower demand for legacy voice and data services is affecting revenues in the Business Wireline vertical.
Declining Mobility equipment sales are a concern. Fierce competition in a saturated wireless market will likely strain margins. A muted guidance for 2024 is worrisome while high debt burden remains a perennial problem.
(You can read the full research report on AT&T here >>>)
Lockheed Martin shares have outperformed the Zacks Aerospace - Defense industry over the past year (+29.1% vs. +1.9%). The company’s broad product offerings allow it to secure major defense contracts, which in turn boosts its backlog count. Lockheed remains the largest U.S. defense contractor with a steady order flow from its leveraged presence in the Army, Air Force, Navy and IT programs.
The solid U.S. defense budgetary provisions should boost its business. Its products also witness a strong international demand from the countries like Germany, Taiwan, Japan and Australia. Meanwhile, the company also holds a strong solvency position.
However, Lockheed is facing performance issues concerning some of its products that may affect its results. Shortage of skilled labor may adversely impact the company’s operating results. The sanctions imposed by China on Lockheed might also affect its business.
(You can read the full research report on Lockheed Martin here >>>)
Shares of Steel Partners’ have declined -2.5% over the year-to-date period against the Zacks Diversified Operations industry’s decline of -7%. This microcap company with market capitalization of $795.34 million reported strong financial results in second-quarter 2024, with revenues growing 6.4% year over year to $533.2 million and a 113.2% surge in net income to $124.9 million.
Revenues for the six months ended Jun 30, 2024 also increased by 6.7% to $1 billion. This growth reflects the company's effective diversification across its industrial and financial services segments. SPLP's operational efficiency is highlighted by a 15.7% adjusted EBITDA margin, up from 14.7% in second-quarter 2023.
Steel Partners’ balance sheet is robust, with $256.4 million in cash and a $112-million debt reduction in the first half of 2024, enhancing financial stability. Investments in the Supply Chain segment, which saw 192% in revenues for the six months ended Jun 30, 2024, position SPLP for long-term growth, particularly as global supply chains evolve.
(You can read the full research report on Steel Partners here >>>)
Natural Resource Partners’ shares have declined -0.4% over the year-to-date period against the Zacks Coal industry’s decline of -2.4%. This microcap company with market capitalization of $1.13 billion faces significant risks from its heavy reliance on coal royalties, with metallurgical coal accounting for 75% of second-quarter 2024 coal royalty revenues.
Weakened steel demand, particularly in China and Europe, is pressuring coal prices, potentially reducing NRP's cash flow. The secular decline in U.S. thermal coal demand, driven by environmental regulations and competition from natural gas, further threatens long-term revenues.
Additionally, a surge in Chinese soda ash production is depressing global prices, impacting NRP's profitability. Inflationary pressures, labor shortages, and high financing costs also pose challenges, while stringent environmental regulations and reliance on lessees increase operational risks. Overall, NRP's exposure to volatile coal markets and regulatory risks positions it in a challenging environment.
(You can read the full research report on Natural Resource Partners here >>>)
Other noteworthy reports we are featuring today include The Boeing Company , The Sherwin-Williams Company and MetLife, Inc. .
Director of Research
Sheraz Mian
Note: Sheraz Mian heads the Zacks Equity Research department and is a well-regarded expert of aggregate earnings. He is frequently quoted in the print and electronic media and publishes the weekly Earnings Trends and Earnings Preview reports. If you want an email notification each time Sheraz publishes a new article, please click here>>>
Today's Must Read
NVIDIA Rides on Strong Adoption of GPUs, Partnerships
AT&T Rides on Wireless Traction, Fiber Densification
Solid Orders Growth Aids Lockheed , Amid Labor Shortage
Featured Reports
Acquisitions and Cost Actions to Aid Sherwin-Williams
Per the Zacks analyst, the company's strategic acquisitions and cost-control initiatives will aid its performance amid headwinds from weak demand in Europe and China.
Strategic Efforts Aid MetLife , Pressure on EMEA Unit Ail
Per the Zacks analyst, several acquisitions and partnerships will continue to bolster the capabilities and global presence of MetLife. Pressure on the EMEA segment is a concern.
Grainger Gains from Solid Volume Amid Cost Woes
Per the Zacks analyst, Grainger is poised well to gain from the volume growth in its end markets. However, elevated costs and supply shortages will remain headwinds.
Biogen's New Drugs Skyclarys & Others Can Revive Growth
The Zacks analyst believes Biogen's new products like Leqembi for Alzheimer's disease, Skyclarys for Friedreich's ataxia and Zurzuvae for depression can help revive growth in the long term
Tractor Supply's Strategic Efforts Appear Encouraging
Per Zacks analyst, Tractor Supply is benefiting from its Life Out Here plan and Neighbor's Club program. Its 'ONETractor' strategy, aimed at connecting store and online shopping also is encouraging.
Diverse Workforce Aids Interpublic , Seasonality Ails
Per the Zacks analyst, creative and digital talent from diverse backgrounds increase Interpublic's organic growth. Seasonality has a major impact on its business in the first quarter.
Rising Loan Balance Aids BOK Financial Amid High Costs
Per the Zacks analyst, BOK Financial's top line continues to benefit from rising loan and deposit balances. Yet, ongoing investments in technology are set to keep the bottom line under pressure.
New Upgrades
Rising Air Traffic Aids Boeing , Labor Shortage Woes
Per the Zacks analyst, improving air passenger traffic as well as increasing fiscal defense budget are expected to boost Boeing's growth. Yet shortage of skilled labor remains a concern.
Solid Pipeline, Oncotype DX Growth Aid Exact Sciences
The Zacks analyst is impressed with Exact Sciences' key pipeline progress, including the next-generation Cologuard and Oncodetect MRD tests. International expansion of Oncotype DX looks promising.
AXIS Capital Set to Grow on Improved Portfolio Mix
Per the Zacks analyst, AXIS Capital continues to build on Specialty Insurance, Reinsurance plus Accident and Health. Improved portfolio mix and effective capital deployment should pave way for growth.
New Downgrades
ProPetro Margins Pressured by Lower Activity
The Zacks analyst believes that declining rig counts and heightened competition has suppressed ProPetro Holding's margins and profitability by lowering utilization rates.
UPS' Prospects Hurt by High Costs & Low Shipping Volumes
High labor expenses at UPS bother the Zacks analyst. The shipping volume-related crisis represents another headwind.
Dull U.S. Retail Pharmacy Arm, High Cost Irk Walgreens
The Zacks analyst is worried about Walgreen Boots' soft U.S. Retail Pharmacy arm steaming from an unfavorable consumer environment. Mounting costs and expenses are putting pressure on profitability.
Zacks Investment Research
Investors in SSR Mining Inc. SSRM need to pay close attention to the stock based on moves in the options market lately. That is because the Sep 20, 2024 $10 Put had some of the highest implied volatility of all equity options today.
What is Implied Volatility?
Implied volatility shows how much movement the market is expecting in the future. Options with high levels of implied volatility suggest that investors in the underlying stocks are expecting a big move in one direction or the other. It could also mean there is an event coming up soon that may cause a big rally or a huge sell-off. However, implied volatility is only one piece of the puzzle when putting together an options trading strategy.
What do the Analysts Think?
Clearly, options traders are pricing in a big move for SSR Mining shares, but what is the fundamental picture for the company? Currently, SSR Mining is a Zacks Rank #2 (Buy) in the Mining - Miscellaneous industry that ranks in the Bottom 27% of our Zacks Industry Rank. Over the last 30 days, one analyst has increased the earnings estimate for the current quarter, while none have revised their estimates downward. The net effect has taken our Zacks Consensus Estimate for the current quarter from 16 cents per share to 21 cents in that period.
Given the way analysts feel about SSR Mining right now, this huge implied volatility could mean there’s a trade developing. Oftentimes, options traders look for options with high levels of implied volatility to sell premium. This is a strategy many seasoned traders use because it captures decay. At expiration, the hope for these traders is that the underlying stock does not move as much as originally expected.
Looking to Trade Options?
Check out the simple yet high-powered approach that Zacks Executive VP Kevin Matras has used to close recent double and triple-digit winners. In addition to impressive profit potential, these trades can actually reduce your risk.
Click to see the trades now >>
Zacks Investment Research
It has been about a month since the last earnings report for Unum . Shares have lost about 4% in that time frame, underperforming the S&P 500.
Will the recent negative trend continue leading up to its next earnings release, or is Unum due for a breakout? Before we dive into how investors and analysts have reacted as of late, let's take a quick look at the most recent earnings report in order to get a better handle on the important drivers.
Unum Group Q2 Earnings Top Estimates, Revenues Rise Y/Y
Unum Group’s second-quarter 2024 operating net income of $2.16 per share beat the Zacks Consensus Estimate by 6.9%. The bottom line increased 4.8% year over year. The quarterly results reflected favorable recoveries in the group long-term disability product line, in-force block growth, higher sales, premium growth and improved persistency. Favorable benefit experience in the product lines also added to the upside.
Operational Update
Total operating revenues of Unum Group were $3.2 billion, up 4.2% year over year, driven by higher premium income, other income and improved net investment income. The top line beat the Zacks Consensus Estimate by 0.5%.
Premiums increased 4.7% from the prior-year quarter to $2.6 billion. The figure matched our estimate as well as the Zacks Consensus Estimate.
Total benefits and expenses increased 4.7% year over year to $2.7 billion, largely attributable to higher policy benefits, including remeasurement gain, commissions, interest and debt expense, amortization of deferred acquisition costs and other expenses. The figure matched our estimate.
Quarterly Segment Update
Unum U.S.: Premium income was $1.7 billion, up 5.5% year over year.
Adjusted operating income rose 4.2% year over year to $357.5 million. The Zacks Consensus Estimate was pegged at $357.2 million. Our estimate was $323.8 million.
Unum International: Premium income of $228.8 million increased 10.1% year over year. Adjusted operating income was $42.5 million, down 2.3% year over year. Our estimate was $37.4 million. The Unum U.K. line of business premium income was £151.8 million, up 6.1% from the year-ago quarter due to in-force block growth. Adjusted operating income, in local currency, of £32.5 million was down 5.2% from a year ago.
The benefit ratio was 69.5, which improved 280 basis points (bps) due to favorable recoveries in the group long-term disability product line. Sales increased 5.7% to £44.3 million. Persistency increased in the group long-term disability and group life product line but decreased in the supplemental line of business.
Colonial Life: Premium income increased 3.6% from the prior-year figure to $446.2 million due to higher prior period sales and favorable persistency.
Sales increased 0.7% from the year-ago figure to $122.9 million. Adjusted operating income increased 1.2% from the prior-year period to $116.9 million. Our estimate was $106.7 million while the Zacks Consensus Estimate was pegged at $118.1 million. Persistency was 78.2% in the first half of 2024, which expanded 70 bps year over year. The benefit ratio improved 50 bps year over year to 47.8, primarily due to favorable benefit experience in the life and accident, sickness and disability product lines.
Closed Block: Adjusted operating income was $51.6 million, which increased 0.7% year over year. Our estimate was $31.5 million, while the Zacks Consensus Estimate was $33.6 million.
Corporate: The segment incurred an adjusted operating loss of $45.3 million against $34.9 million earned in the year-ago quarter. The loss was primarily due to a decrease in net investment income, attributable to increased allocation to lines of business. Our estimate for loss was $44.8 million, while the Zacks Consensus Estimate was pegged at a loss of $44.5 million.
Capital Management
As of Jun 30, 2024, the weighted average risk-based capital ratio for the company’s traditional U.S. insurance companies was approximately 470%. Unum Group exited the second quarter of 2024 with liquidity worth $1.3 billion.
Book value per share grew 18.2% year over year to $47.06 as of Jun 30, 2024.
UNM bought back 3.5 shares for $179.8 million.
2024 Guidance
Riding on the solid first half of 2024, UNM increased the outlook for after-tax adjusted operating income per share to 10-15% from the earlier guidance of 7-9%.
How Have Estimates Been Moving Since Then?
In the past month, investors have witnessed an upward trend in fresh estimates.
VGM Scores
Currently, Unum has a poor Growth Score of F, however its Momentum Score is doing a lot better with a C. However, the stock was allocated a grade of A on the value side, putting it in the top quintile for this investment strategy.
Overall, the stock has an aggregate VGM Score of B. If you aren't focused on one strategy, this score is the one you should be interested in.
Outlook
Estimates have been trending upward for the stock, and the magnitude of these revisions looks promising. It comes with little surprise Unum has a Zacks Rank #2 (Buy). We expect an above average return from the stock in the next few months.
Performance of an Industry Player
Unum belongs to the Zacks Insurance - Accident and Health industry. Another stock from the same industry, Amerisafe , has gained 4.4% over the past month. More than a month has passed since the company reported results for the quarter ended June 2024.
Amerisafe reported revenues of $76.01 million in the last reported quarter, representing a year-over-year change of +3.4%. EPS of $0.58 for the same period compares with $0.73 a year ago.
Amerisafe is expected to post earnings of $0.56 per share for the current quarter, representing a year-over-year change of -8.2%. Over the last 30 days, the Zacks Consensus Estimate has changed -1.8%.
Amerisafe has a Zacks Rank #4 (Sell) based on the overall direction and magnitude of estimate revisions. Additionally, the stock has a VGM Score of F.
Zacks Investment Research
The Transportation group has plenty of great stocks, but investors should always be looking for companies that are outperforming their peers. Has Seanergy Maritime Holdings Corp been one of those stocks this year? By taking a look at the stock's year-to-date performance in comparison to its Transportation peers, we might be able to answer that question.
Seanergy Maritime Holdings Corp is one of 135 individual stocks in the Transportation sector. Collectively, these companies sit at #15 in the Zacks Sector Rank. The Zacks Sector Rank considers 16 different groups, measuring the average Zacks Rank of the individual stocks within the sector to gauge the strength of each group.
The Zacks Rank is a proven model that highlights a variety of stocks with the right characteristics to outperform the market over the next one to three months. The system emphasizes earnings estimate revisions and favors companies with improving earnings outlooks. Seanergy Maritime Holdings Corp is currently sporting a Zacks Rank of #1 (Strong Buy).
Over the past three months, the Zacks Consensus Estimate for SHIP's full-year earnings has moved 35.5% higher. This means that analyst sentiment is stronger and the stock's earnings outlook is improving.
Our latest available data shows that SHIP has returned about 37.9% since the start of the calendar year. In comparison, Transportation companies have returned an average of -3.9%. This means that Seanergy Maritime Holdings Corp is performing better than its sector in terms of year-to-date returns.
One other Transportation stock that has outperformed the sector so far this year is ZIM Integrated Shipping Services . The stock is up 115.1% year-to-date.
Over the past three months, ZIM Integrated Shipping Services' consensus EPS estimate for the current year has increased 323.9%. The stock currently has a Zacks Rank #1 (Strong Buy).
Looking more specifically, Seanergy Maritime Holdings Corp belongs to the Transportation - Shipping industry, a group that includes 43 individual stocks and currently sits at #139 in the Zacks Industry Rank. Stocks in this group have gained about 19.8% so far this year, so SHIP is performing better this group in terms of year-to-date returns. ZIM Integrated Shipping Services is also part of the same industry.
Investors interested in the Transportation sector may want to keep a close eye on Seanergy Maritime Holdings Corp and ZIM Integrated Shipping Services as they attempt to continue their solid performance.
Zacks Investment Research
White Label
Data API
Web Plug-ins
Poster Maker
Affiliate Program
The risk of loss in trading financial instruments such as stocks, FX, commodities, futures, bonds, ETFs and crypto can be substantial. You may sustain a total loss of the funds that you deposit with your broker. Therefore, you should carefully consider whether such trading is suitable for you in light of your circumstances and financial resources.
No decision to invest should be made without thoroughly conducting due diligence by yourself or consulting with your financial advisors. Our web content might not suit you since we don't know your financial conditions and investment needs. Our financial information might have latency or contain inaccuracy, so you should be fully responsible for any of your trading and investment decisions. The company will not be responsible for your capital loss.
Without getting permission from the website, you are not allowed to copy the website's graphics, texts, or trademarks. Intellectual property rights in the content or data incorporated into this website belong to its providers and exchange merchants.