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The Zacks Analyst Blog Highlights: Asbury Automotive, Agree Realty, Veoneer, Hawaiian Holdings and The Carlyle Group

Zacks Equity Research

For Immediate Release

Chicago, IL – October 17, 2019 – Zacks.com announces the list of stocks featured in the Analyst Blog. Every day the Zacks Equity Research analysts discuss the latest news and events impacting stocks and the financial markets. Stocks recently featured in the blog include: Asbury Automotive Group Inc. ABG, Agree Realty Corp. ADC, Veoneer Inc. VNE, Hawaiian Holdings Inc. HA and The Carlyle Group L.P. CG.

Here are highlights from Wednesday’s Analyst Blog:

5 Top Mid-Caps Set to Beat on Q3 Earnings

Investors across the world are rattled by an impending recession owing to the lingering trade conflict between the United States and China. Although the U.S. economy is still expanding, albeit at a slow pace, the economies of Eurozone and China are struggling.

Moreover, governments and central banks of several emerging market economies have undertaken a series of fiscal and monetary measures in order to boost their sagging economic conditions.    

At this juncture, investment in mid-cap stocks with a favorable Zacks Rank and positive earnings ESP is likely to be a good diversification strategy for near to long-term gains. Meanwhile, mid-cap stocks have rallied so far in 2019. The S&P 400 Mid-cap Index (SP400) has surged 15.2% year to date.

Why Mid-Cap Stocks?

Investment in mid-cap stocks is often recognized as a good portfolio diversification strategy. These stocks combine attractive attributes of both small and large-cap stocks. If the trade deal breaks down, mid-cap stocks will not be as susceptible to losses like their large-cap counterparts owing to less international exposure.

However, if the Wall Street bull run continues owing to an interim trade deal, Fed’s rate cut or strong economic data, these stocks will gain higher than small caps due to established management teams, a broad distribution network, brand recognition and ready access to capital markets.

5 Mid-Cap Stocks Poised to Beat Q3 Earnings Estimates

We have narrowed down our search to five mid-cap stocks. Each of these stocks carries a Zacks Rank # 2 (Buy) and has a positive Earnings ESP. You can see the complete list of today’s Zacks #1 Rank stocks here.

Our research shows that for stocks with the combination of a Zacks Rank #3 or better and a positive Earnings ESP, the chance of an earnings beat is as high as 70%. These stocks are expected to pop on their earnings release irrespective of market volatility.

Asbury Automotive Group Inc. operates as an automotive retailer in the United States. It offers a range of automotive products and services, including new and used vehicles; and vehicle repair and maintenance services, replacement parts, and collision repair services. The company has an Earnings ESP of +4.62% for third-quarter 2019.  

Asbury Automotive has an expected earnings growth rate of 7.8% and 10.8% for the current quarter and year, respectively. The Zacks Consensus Estimate for the current year improved 0.1% over the last 30 days. The company delivered positive earnings surprise in the last four quarters, with an average beat of 11.3%. Asbury Automotive is expected to release earnings results on Oct 22, before the opening bell.

Agree Realty Corp. is a self-administered, self-managed real estate investment trust which develops, acquires, owns and operates properties primarily leased to major national and regional retail companies under net leases. The company has an Earnings ESP of +1.32% for third-quarter 2019.  

Agree Realty has an expected earnings growth rate of 6.2% and 6.5% for the current quarter and year, respectively. The company delivered positive earnings surprise in three out of the last four quarters, with an average beat of 0.4%. Agree Realty is expected to release earnings results on Oct 21, after the closing bell.

Veoneer Inc. designs, develops, manufactures, and sells automotive safety electronic products in Asia, the Americas, and Europe. It operates in two segments, Electronics and Brake Systems. The company has an Earnings ESP of +7.14% for third-quarter 2019.  

The Zacks Consensus Estimate for the current quarter improved 2.8% over the last 30 days. The company delivered positive earnings surprise in two out of the last four quarters, with an average beat of 1.3%. Veoneer is expected to release earnings results on Oct 23, before the opening bell.

Hawaiian Holdings Inc. is engaged in providing scheduled air transportation of passengers and cargo in the United States and worldwide. The company has an Earnings ESP of +4.97% for third-quarter 2019.  

The Zacks Consensus Estimate for the current quarter and year improved 22.9% and 7.5%, respectively, over the last 30 days. The company delivered positive earnings surprise in the last four quarters, with an average beat of 8.1%. Hawaiian Holdings is expected to release earnings results on Oct 22, after the closing bell.

The Carlyle Group L.P. is a global alternative asset manager. It invests across four segments: Corporate Private Equity, Real Assets, Global Market Strategies and Fund of Funds Solutions in Africa, Asia, Australia, Europe, the Middle East, North America and South America. The company has an Earnings ESP of +5.26% for third-quarter 2019.  

The Carlyle Group has an expected earnings growth rate of 53.3% for the current quarter. The Zacks Consensus Estimate for the current quarter and year improved 0.7% and 1.2%, respectively, over the last 30 days. The company delivered positive earnings surprise in two out of the last four quarters, with an average beat of 9.5%. The Carlyle Group is expected to release earnings results on Oct 31, before the opening bell.

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Past performance is no guarantee of future results. Inherent in any investment is the potential for loss. This material is being provided for informational purposes only and nothing herein constitutes investment, legal, accounting or tax advice, or a recommendation to buy, sell or hold a security. No recommendation or advice is being given as to whether any investment is suitable for a particular investor. It should not be assumed that any investments in securities, companies, sectors or markets identified and described were or will be profitable. All information is current as of the date of herein and is subject to change without notice. Any views or opinions expressed may not reflect those of the firm as a whole. Zacks Investment Research does not engage in investment banking, market making or asset management activities of any securities. These returns are from hypothetical portfolios consisting of stocks with Zacks Rank = 1 that were rebalanced monthly with zero transaction costs. These are not the returns of actual portfolios of stocks. The S&P 500 is an unmanaged index. Visit https://www.zacks.com/performance for information about the performance numbers displayed in this press release.


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Hawaiian Holdings, Inc. (HA) : Free Stock Analysis Report
 
Asbury Automotive Group, Inc. (ABG) : Free Stock Analysis Report
 
The Carlyle Group L.P. (CG) : Free Stock Analysis Report
 
Agree Realty Corporation (ADC) : Free Stock Analysis Report
 
Veoneer, Inc. (VNE) : Free Stock Analysis Report
 
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