The Zacks Analyst Blog Highlights: Boston Beer Co, Generac, L Brands, Ubiquiti and PerkinElmer
For Immediate Release
Chicago, IL – December 7, 2020 – 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: The Boston Beer Co. Inc. SAM, Generac Holdings Inc. GNRC, L Brands Inc. LB, Ubiquiti Inc. UI and PerkinElmer Inc. PKI.
Here are highlights from Friday’s Analyst Blog:
5 Mid-Cap Stocks that Became Top Large-Caps Amid Pandemic
The U.S. stock market has performed fairly well year to date despite the coronavirus onslaught over the last few months. The Dow slipped to bear territory on Mar 11 and was joined by the S&P 500 and the Nasdaq Composite a day later. The Market downtrend continued till Mar 23 when all three major stock indexes slumped.
Wall Street has witnessed a V-shaped recovery since Mar 23 barring fluctuations in September and October, which helped it to exit the coronavirus-induced short bear market and form a new bull market. This impressive turnaround was predominantly driven by astonishing growth of large-cap technology stocks.
However, a closer look at the market reveals that apart from large-cap stocks, mid caps too contributed significantly to the market's turnaround. The three large-cap centric indexes — the Dow, the S&P 500 and the Nasdaq Composite — have rallied 64.5%, 67.3% and 86.6%, respectively, so far since Mar 23. Likewise, the mid-cap specific S&P 400 Index appreciated 80.8% during the same period.
Meanwhile, in the due course of the S&P 400 Index's fabulous performance in the past eight and half months, several mid-cap companies (market capital > $1 billion but < $10 billion) have become large caps (market capital > $10 billion). We have selected five of such stocks that also have a top Zacks Rank.
All these stocks had market capital in the range of $4.5 billion to $8.5 billion during Mar 11 - 12, when Wall Street entered the bear market. At present, the market capital of these stocks is in the range of $11 billion to $18 billion. Investment in these stocks is likely to prove profitable in the near future.
Wall Street Momentum Likely to Continue Despite Pandemic
Although coronavirus-induced woes are persisting in the United States, causing occasional market fluctuations, the overall movement of Wall Street is likely to remain northbound. At least three potential vaccine candidates for COVID-19 have been backed by impressive late-stage clinical trial data and are lined up for emergency authorization from the FDA.
The availability of a vaccine in the near future will be a game changer in 2021 as it will reopen the U.S. economy or at least a large part of it. On Dec 2, the U.K. government approved the first-ever coronavirus vaccine in the world. The vaccine has been developed by Pfizer and BioNTech. Nationwide deployment of the same will start next week.
On Dec 1, a bipartisan group of lawmakers proposed a $908 billion fresh coronavirus-aid package. On Dec 2, House Majority Leader, Steny Hoyer, said Congress hoped to reach an agreement on a scaled-back coronavirus-aid package over the weekend and vote on it next week.
The major components of the proposed bipartisan relief bill includes $160 billion for state, local and tribal governments, $180 billion for additional unemployment insurance, and $288 billion as support to small businesses including the Paycheck Protection Program.
Our Top Picks
We have narrowed our search to five mid-cap stocks that have become large caps during the coronavirus hit past eight and a half months. All these stocks have strong growth potential and have witnessed robust earnings estimate revisions over the past 30 to 60 days. Each of our picks carries a Zacks Rank #1 (Strong Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.
The Boston Beer Co. produces and sells alcohol beverages primarily in the United States. Apart from its flagship Samuel Adams Boston Lager beer, it offers various beers, hard ciders and hard seltzers under the Samuel Adams, Twisted Tea, Angry Orchard Hard Cider and Truly Hard Seltzer brands.
The company has an expected earnings growth rate of 63% for the current year. The Zacks Consensus Estimate for its current-year earnings has improved 21.2% over the past 60 days. The stock price has soared 154.2% during Mar 10 to Dec 3.
Generac Holdings designs, manufactures, and sells power generation equipment, energy storage systems, and other power products for the residential and light commercial and industrial markets worldwide.
The company has an expected earnings growth rate of 22.3% for the current year. The Zacks Consensus Estimate for its current-year earnings has improved 6.2% over the past 60 days. The stock price has rallied 92.1% during Mar 10 to Dec 3.
L Brands operates as a specialty retailer of women's intimate and other apparel, personal care, and beauty and home fragrance products. It operates in three segments: Victoria's Secret, Bath & Body Works, and Victoria's Secret and Bath & Body Works International.
The company has an expected earnings growth rate of 0.5% for the current year (ending January 2021). The Zacks Consensus Estimate for its current-year earnings has moved up 81.1% over the past 30 days. The stock price has jumped 84.7% during Mar 10 to Dec 3.
Ubiquiti offers a comprehensive portfolio of networking products and solutions for service providers and enterprises. The company has an expected earnings growth rate of 33.3% for the current year (ending June 2021). The Zacks Consensus Estimate for its current-year earnings has risen 25.1% over the past 30 days. The stock price has climbed 85.2% during Mar 10 to Dec 3.
PerkinElmer provides products, services and solutions to the diagnostics, life sciences, and applied services markets worldwide. It operates in two segments, Discovery & Analytical Solutions and Diagnostics.
The company has an expected earnings growth rate of 73.7% for the current year. The Zacks Consensus Estimate for its current-year earnings has climbed 4.7% over the past 30 days. The stock price has surged 74.9% during Mar 10 to Dec 3.
5 Stocks Set to Double
Each was hand-picked by a Zacks expert as the #1 favorite stock to gain +100% or more in 2020. Each comes from a different sector and has unique qualities and catalysts that could fuel exceptional growth.
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 >>
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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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PerkinElmer, Inc. (PKI) : Free Stock Analysis Report
The Boston Beer Company, Inc. (SAM) : Free Stock Analysis Report
Generac Holdings Inc. (GNRC) : Free Stock Analysis Report
L Brands, Inc. (LB) : Free Stock Analysis Report
Ubiquiti Inc. (UI) : Free Stock Analysis Report
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