Camtek and Dollar General have been highlighted as Zacks Bull and Bear of the Day
For Immediate Release
Chicago, IL – September 8, 2023 – Zacks Equity Research shares Camtek CAMT as the Bull of the Day and Dollar General DG as the Bear of the Day. In addition, Zacks Equity Research provides analysis on RTX Corp. (RTX), Lockheed Martin LMT and General Dynamics GD.
Here is a synopsis of all five stocks:
Bull of the Day:
Technical pressures in the market have brought out the sellers. The narrative of higher for longer has the market worried. A second wave of inflation has investors worried. It's partially to blame for the recent selling. I welcome opportunities like this because it puts great stocks on sale. One way to find these stocks is by leaning on the time-tested strength of our Zacks Rank. Stocks in the good graces of our Zacks Rank have the best earnings trends.
One such stock is today's Bull of the Day Camtek. Camtek Ltd., together with its subsidiaries, develops, manufactures, and sells inspection and metrology equipment for the advanced interconnect packaging, memory, complementary metal oxide semiconductor image sensors, micro-electro mechanical systems, radio frequency, and other segments of the semiconductor industry.
The stock is in the Electronics – Measuring Instruments industry which ranks in the Top 11% of our Zacks Industry Rank. The stock is currently a Zacks Rank #1 (Strong Buy). The reason for the favorable rank is that over the last sixty days, five analysts have increased their earnings estimates for the current year and next year. The bullish sentiment has pushed up our Zacks Consensus Estimates for the current year from $1.70 to $1.86 while next year's number is up from $1.90 to $2.24.
A quick look at the Price, Consensus and EPS Surprise Chart reveals just how bullish analysts have been. Several earnings beats in a row have created a ton of momentum. You can also see the year-over-year jump in growth numbers after earnings dipped into the start of this year. Since then, estimates have gone in a singular direction...up.
Bear of the Day:
With the market unwinding, there are plenty of stocks that are coming under pressure. Selling is hitting many industries. There are some stocks out there which are more vulnerable than others. The most vulnerable stocks are those with the weakest earnings trends. One way to uncover this weakness is by checking out our Zacks Rank. Stocks which are lower Zacks Ranks have the weakest trends.
One such stock is today's Bear of the Day, Dollar General. Dollar General Corporation, a discount retailer, provides various merchandise products in the southern, southwestern, midwestern, and eastern United States. It offers consumable products, including paper and cleaning products, such as paper towels, bath tissues, paper dinnerware, trash and storage bags, disinfectants, and laundry products; packaged food comprising cereals, pasta, canned soups, fruits and vegetables, condiments, spices, sugar, and flour; and perishables that include milk, eggs, bread, refrigerated and frozen food, beer, and wine.
Dollar General is currently a Zacks Rank #5 (Strong Sell). The reason for the unfavorable rank is several analysts have cut their estimates. Over the last week, 13 analysts have cut their estimates for the current year while 12 have done so for next year. The bearish activity has dropped our Zacks Consensus Estimates for the current year from $10.08 to $8.82 while next year's is off from $10.97 to $9.64. The most recent earnings report coming in 36 cents shy of expectations is a big reason why.
The Retail – Discount Stores industry ranks in the Bottom 32% of our Zacks Industry Rank.
Additional content:
U.S. Pledges More Security Aid to Ukraine: 3 Stocks to Benefit
The U.S. Department of Defense (DoD) recently announced a new security package worth $175 million, offered by the Biden administration for Ukraine. Prior to this, in August 2023, the United States offered a $250 million aid to Ukraine, for supplying air defense and artillery munitions, mine-clearing equipment and medical vehicles.
The latest commitment made by President Biden takes the total security assistance provided by America to Ukraine to $43.7 billion since February 2022, following Russia's Ukrainian invasion. The new security package has currently put the spotlight on U.S. defense majors likeRTX Corp., Lockheed Martin and General Dynamics, which are expected to gain in the near term.
Details of the Package
The latest aid package marks the 46th tranche of equipment to be provided from DoD inventories for Ukraine, since August 2021. It is aimed to provide the Ukrainian Armed Forces with additional air defense equipment; artillery munitions; and anti-tank weapons, including depleted uranium rounds for previously committed Abrams tanks.
In particular, the $175 million package pledges to supply additional ammunition for High Mobility Artillery Rocket Systems (HIMARS) as well as 155mm and 105mm artillery rounds. This aid also includes delivering Tube-Launched, Optically-Tracked, Wire-Guided (TOW) missiles, Javelin systems, more than 3 million rounds of small arms ammunition and some more tactical equipment.
Defense Stocks to Gain
Considering the aforementioned discussion, it is quite obvious that U.S. defense contractors, particularly those manufacturing defense products pledged by America to Ukraine as part of the latest aid package, will gain substantially in the coming days. Also, their inherent growth prospects keep them on a prudent investor's watchlist.
RTX: It is a renowned radar and missile maker in the United States. The company's TOW missile is the long-range precision, heavy anti-tank and assault weapon system of choice for the U.S. Army Stryker, Bradley Fighting Vehicle, ITAS High-Mobility Multipurpose Wheeled Vehicle and Light Armored Vehicle-Anti-tank platforms. RTX is also the co-manufacturer of Javelin missile system, with this combat-proven weapon system having a reliability rate of more than 94%.
The company currently boasts a long-term earnings growth rate of 7.9%. The Zacks Consensus Estimate for RTX's 2023 sales implies an improvement of 9.9% from the 2022 reported figure. It carries a Zacks Rank #3 (Hold) at present.
Lockheed Martin: It is the largest defense contractor in the world, with its main areas of focus in defense, space, intelligence, homeland security and information technology, including cyber security. The company's HIMARS rocket launcher is a flexible, affordable and highly effective precision fires system designed to meet the demands of the modern battlefield. LMT is the other co-manufacturer of Javelin missile systems, which is the world's first one-man-portable, fire-and-forget, multipurpose missile system.
The company boasts a long-term earnings growth rate of 6.5%. The Zacks Consensus Estimate for LMT's 2023 sales implies an improvement of 0.9% from the 2022 reported figure. It currently holds a Zacks Rank #3. You can see the complete list of today's Zacks #1 Rank (Strong Buy) stocks here.
General Dynamics: It is a renowned manufacturer of land and expeditionary combat vehicles, armaments and munitions; shipbuilding and marine systems; and business aviation. The company's Abrams is the most advanced main battle tank, which sports features that are technologically advanced in communications, fire control and lethality, reliability, sustainment and fuel efficiency, along with upgraded armor. GD's Ordnance and Tactical Systems unit is one of the prime manufacturers of artillery rounds in the United States.
The company boasts a long-term earnings growth rate of 8.9%. The Zacks Consensus Estimate for GD's 2023 sales implies an improvement of 7.3% from the 2022 reported figure. It holds a Zacks Rank #3 at present.
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Lockheed Martin Corporation (LMT) : Free Stock Analysis Report
General Dynamics Corporation (GD) : Free Stock Analysis Report
Dollar General Corporation (DG) : Free Stock Analysis Report
Camtek Ltd. (CAMT) : Free Stock Analysis Report
RTX Corporation (RTX) : Free Stock Analysis Report
