The Zacks Analyst Blog Highlights Axcelis Technologies, Arch Resources, Casey's General Stores, W.W. Grainger and Halliburton
For Immediate Release
Chicago, IL – February 3, 2023 – 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: Axcelis Technologies ACLS, Arch Resources ARCH, Casey's General Stores CASY, W.W. Grainger GWW and Halliburton HAL.
Here are highlights from Thursday’s Analyst Blog:
Wall Street Buoys Up on Fed’s Slow Rate Hike: 5 Growth Picks
U.S. stocks bounced back to end higher on Feb 2 after the Federal Reserve slowed the rate hike in its latest policy meeting while giving hints that only a few more rate increases are required to fight inflation. While the Dow and the S&P 500 reversed their earlier slide during the trading session to end in the green, the Nasdaq ended at its highest level since mid-September, per the Dow Jones Market Data.
The Fed recently approved a 0.25 percentage points hike in the benchmark interest rate, taking it to a target range of 4.5-4.75%. It’s the highest since October 2007. But the quarter-point rate hike is smaller than the half-point increase in December, which followed four jumbo-sized 75-basis-point increases successively last year.
The Fed’s latest rate hike aligned with market expectations and assured investors that the central bank may not aggressively tighten its monetary policy this year, the way it did last year.The Fed slowed the rate hike as inflation started to show signs of cooling off. Fed Chair Jerome Powell too acknowledged that the disinflationary process has already begun.
The consumer price index increased by 6.5% on an annual basis in December, but that was less than November’s over-over-year increase of 7.1%. It was also the smallest 12-month increase since October 2021, added the U.S. Bureau of Labor Statistics.Similarly, the producer price index increased by 6.2% year over year in December, down from November’s annual jump of 7.3%, added the Labor Department.
Supply-chain disruptions due to demand-supply disparity during pandemic times are now ebbing; hence, price pressures are also decreasing. Additionally, the steady decline in gasoline prices gave households much-needed relief, and the decline in energy prices slowed down the broader increase in wholesale prices in the United States.
Nonetheless, with inflation waning vis-à-vis a less aggressive Fed, the stock market is surely poised to scale upward. After all, aggressive tightening measures like rate hikes impact consumer outlays, raise the cost of borrowing, hamper economic growth, and drag the stock market down. By the way, the stock market is coming off a strong January. Thus, it's prudent for investors to place their bets on growth stocks as of now.
We have, therefore, highlighted five stocks that carry a Zacks Rank #1 (Strong Buy) or 2 (Buy), and have a Growth Score of A or B, a combination that offers the best opportunities in the growth investing space. You can see the complete list of today’s Zacks Rank #1 stocks here.
Axcelis Technologies is a leading producer of ion implantation equipment used in the fabrication of semiconductors. ACLS has a Zacks Rank #1 and a Growth Score of A.
The Zacks Consensus Estimate for its current-year earnings has moved up 8.5% over the past 60 days. The company’s expected earnings growth rate for the current year is 80.9%.
Arch Resources is one of the largest coal producers in the United States. ARCH has a Zacks Rank #1 and a Growth Score of A.
The Zacks Consensus Estimate for its current-year earnings has moved up 0.3% over the past 60 days. The company’s expected earnings growth rate for the current year is 152.3%.
Casey's General Stores operates convenience stores under the Casey's and Casey's General Store names in 16 Midwestern states. CASY has a Zacks Rank #2 and a Growth Score of A.
The Zacks Consensus Estimate for its current-year earnings has moved up 3.3% over the past 60 days. The company’s expected earnings growth rate for the current year is 18.4%.
W.W. Grainger is a broad-line, business-to-business distributor of maintenance, repair and operating products and services. GWW has a Zacks Rank #2 and a Growth Score of B.
The Zacks Consensus Estimate for its current-year earnings has moved up 0.1% over the past 60 days. The company’s expected earnings growth rate for the current year is 48.5%.
Halliburton is one of the largest oilfield service providers in the world. HAL has a Zacks Rank #2 and a Growth Score of A.
The Zacks Consensus Estimate for its current-year earnings has moved up 4% over the past 60 days. The company’s expected earnings growth rate for the current year is 43.7%.
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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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Halliburton Company (HAL) : Free Stock Analysis Report
W.W. Grainger, Inc. (GWW) : Free Stock Analysis Report
Axcelis Technologies, Inc. (ACLS) : Free Stock Analysis Report
Casey's General Stores, Inc. (CASY) : Free Stock Analysis Report
Arch Resources Inc. (ARCH) : Free Stock Analysis Report
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