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The Zacks Analyst Blog Highlights: Cedar Fair L.P., Marathon Oil Corp., Allison Transmission Holdings Inc., Nutrien Ltd. and Genuine Parts Co

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·9 min read
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For Immediate Release

Chicago, IL – February 16, 2022 – 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: Cedar Fair L.P. FUN, Marathon Oil Corp. MRO, Allison Transmission Holdings Inc. ALSN, Nutrien Ltd. NTR and Genuine Parts Co. GPC.

Here are highlights from Tuesday’s Analyst Blog:

5 Must-Buy Stocks Ahead of Q4 Earnings Results This Week

We are in the second half of the fourth-quarter 2021 earnings season as more than half of the companies have already released their financial numbers. So far this reporting cycle, earnings results have come in well above initial expectations. Earnings momentum is likely to remain high in the rest of the reporting period.

This week, nearly 600 companies are slated to report earnings results. At this stage, it will be prudent to invest in stocks with a favorable Zacks Rank that are set to beat on earnings results. Five of them are Cedar Fair L.P., Marathon Oil Corp., Allison Transmission Holdings Inc., Nutrien Ltd. and Genuine Parts Co.

Solid Fourth-Quarter Earnings So Far

As of Feb 9, 317 S&P 500 companies reported fourth-quarter 2021 results. Total earnings of these companies are up 30.8% year over year on 16.1% higher revenues with 77.9% beating EPS estimates and 76.3% surpassing revenue estimates.

Total fourth-quarter earnings of the market's benchmark — the S&P 500 Index — are projected to climb 30.6% from the same period last year on 14.7% higher revenues following 41.4% year-over-year earnings growth on 17.4% higher revenues in the third quarter, 95% year-over-year earnings growth on 25.3% higher revenues in the second quarter and 49.3% year-over-year earnings growth on 10.3% higher revenues in first-quarter 2021.

The first three quarters of last year were favorably impacted since the preceding quarters of the year before that were affected by pandemic-induced lockdowns and restrictions. However, the U.S. economy started reopening at a slow pace since the beginning of the fourth quarter of 2020.

Our Top Picks

We have narrowed our search to five stocks that will release fourth-quarter earnings results this week. Each of these stocks carries either a Zacks Rank#1 (Strong Buy) or 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 (Hold) or better and a positive Earnings ESP, the chance of an earnings beat is as high as 70%. These stocks are anticipated to appreciate after their earnings releases. You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.

Cedar Fair owns and operates amusement and water parks, and complementary resort facilities in the United States and Canada. FUN owns and operates five amusement parks: Cedar Point, Knott's Berry Farm, Dorney Park & Wildwater Kingdom, Valleyfair, and Worlds of Fun/Oceans of Fun. Cedar Fair also owns and operates the Cedar Point Marina, one of the largest full-service marinas on the Great Lakes.

Zacks Rank #1 FUN has an Earnings ESP of +6.02%. It has an expected earnings growth rate of more than 100% for the current year. The Zacks Consensus Estimate for current-year earnings improved 7.1% over the last 30 days.

Cedar Fair recorded earnings surprises in three of the last four reported quarters, with an average beat of 16.5%. FUN is set to release earnings results on Feb 16, before the opening bell.

Marathon Oil is a leading oil and natural gas exploration and production company with operations in the United States and Africa. MRO’s robust operational metrics suggest strong long-term cash flows that should support a higher price for its shares. The wells drilled by Marathon Oil have extremely low oil price breakeven costs and need oil prices of just $35 a barrel to be profitable.

MRO continues to cut down costs substantially and is striving to achieve a 30% decrease in production and G&A costs in 2021 compared to the 2019 levels. Furthermore, Marathon Oil’s significant debt maturities will mostly fall after 2025 and there does not appear much risk here.

Zacks Rank #1 MRO has an Earnings ESP of +4.66%. It has an expected earnings growth rate of 97.3% for the current year. The Zacks Consensus Estimate for current-year earnings improved 23.5% over the last 30 days.

Marathon Oil recorded earnings surprises in the last four reported quarters, with an average beat of 37.4%. MRO is set to release earnings results on Feb 16, after the closing bell.

Allison Transmission is a manufacturer of fully-automatic transmissions for medium and heavy-duty commercial and heavy-tactical U.S. defense vehicles. Strategic buyouts of Walker Die, C&R Tool & Engineering, Vantage Power, Off-Highway transmission portfolio of AVTEC and AxleTech’s electric vehicle systems division are set to boost ALSN’s long-term prospects.

Allison Transmission's diverse revenue sources, especially the defense end market, provide a hedge against economic disruptions. Recent partnerships with Zhongtong, New Flyer, Jing-Jin and ElDorado among others, offer growth visibility.

Zacks Rank #2 Allison Transmission has an Earnings ESP of +1.44%. It has an expected earnings growth rate of 26.5% for the current year. ALSN recorded earnings surprises in two out of the last four reported quarters, with an average beat of 3.9%. Allison Transmission is set to release earnings results on Feb 16, after the closing bell.

Nutrien is a leading integrated provider of crop inputs and services. NTR is expected to gain from higher demand for crop nutrients. Strong grower economics and higher crop prices are driving fertilizer demand globally.  Demand for phosphate and potash is expected to remain strong this year.

Demand for nitrogen fertilizer also remains healthy in North America, Brazil and India. Higher selling prices for crop nutrients are also expected to drive Nutrien’s sales and margins. Acquisitions have also strengthened NTR’s foothold in the growing Brazilian agricultural market. Nutrien is also expected to benefit from its cost-reduction initiatives in the potash business.

Zacks Rank #1 NTR has an Earnings ESP of +2.61%. It has an expected earnings growth rate of 55.8% for the current year. The Zacks Consensus Estimate for current-year earnings improved 4.3% over the last 30 days.

Nutrien recorded earnings surprises in three out of the last four reported quarters, with an average beat of 73.5%. NTR is set to release earnings results on Feb 16, after the closing bell.

Genuine Parts distributes automotive and industrial replacement parts and materials, and business products across the globe. Genuine Parts’ strategic buyouts to improve product offerings and expand geographical footprint are commendable and is boosting its growth.

GPC’s growing omnichannel capabilities and efforts to strengthen retail positioning through enhanced merchandising and inventories bodes well. Genuine Parts’ upwardly revised 2021 outlook generates optimism. Steady dividend growth and robust buyback program have enhanced investors’ confidence.

Zacks Rank #2 GPC has an Earnings ESP of +4.87%. It has an expected earnings growth rate of 10.4% for the current year. The Zacks Consensus Estimate for current-year earnings improved 0.7% over the last 30 days.

Genuine Parts recorded earnings surprises in three out of the last four reported quarters, with an average beat of 16%. GPC is set to release earnings results on Feb 17, before the opening bell.

Stay on top of upcoming earnings announcements with the Zacks Earnings Calendar.

Zacks Names "Single Best Pick to Double"

From thousands of stocks, 5 Zacks experts each have chosen their favorite to skyrocket +100% or more in months to come. From those 5, Director of Research Sheraz Mian hand-picks one to have the most explosive upside of all.

It’s a little-known chemical company that’s up 65% over last year, yet still dirt cheap. With unrelenting demand, soaring 2022 earnings estimates, and $1.5 billion for repurchasing shares, retail investors could jump in at any time.

This company could rival or surpass other recent Zacks’ Stocks Set to Double like Boston Beer Company which shot up +143.0% in little more than 9 months and NVIDIA which boomed +175.9% in one year.

Free: See Our Top Stock and 4 Runners Up >>

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Zacks Investment Research

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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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Marathon Oil Corporation (MRO) : Free Stock Analysis Report
 
Genuine Parts Company (GPC) : Free Stock Analysis Report
 
Allison Transmission Holdings, Inc. (ALSN) : Free Stock Analysis Report
 
Cedar Fair, L.P. (FUN) : Free Stock Analysis Report
 
Nutrien Ltd. (NTR) : Free Stock Analysis Report
 
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