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For Immediate Release
Chicago, IL – February 9, 2021 – 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: CoreLogic, Inc. CLGX, Cincinnati Bell Inc. CBB, Black Knight Financial Services, Inc. BKI, The Blackstone Group Inc. BX and CACI International, Inc. CACI.
Here are highlights from Monday’s Analyst Blog:
Things Perk Up for Service Side of the US Economy: 5 Picks
The U.S. economy had to bear the brunt of the coronavirus pandemic last year, with the service side of the economy taking a severe beating. The virus outbreak led to business restrictions and shutdown measures, impacting restaurants and bars. In fact, consumers stayed away from venues that generally attract crowds. As a result, the pandemic compelled people to spend more on goods than services.
But now things have started to look up for the beleaguered service sector. This is primarily because of the breakthrough in the vaccine front, which many believe if properly distributed, will eventually control the outbreak and bolster the economy. What's more, the Biden administration promised further stimulus packages to lift the economy, which gave a jump-start to service providers early in 2021.
No doubt, businesses are in good health this year compared to last year, and service companies have started off well with many remaining optimistic about an even better performance in the near future. The non-manufacturing index of the Institute of Supply Management (ISM) jumped to 58.7% in January from 57.7% in December, a two-year high.
In fact, the non-manufacturing index is at present above its pre-pandemic level. Also, it's in expansionary mode since any reading above 50% signifies growth. Actually, any reading above 55% predominantly indicates broad strength, as mentioned in a MarketWatch article.
The ISM further added that the new orders index climbed to a six-month high of 61.8% last month compared to a reading of 58.6% in December. Notably, the measure of new orders for materials increased for the eighth successive month.
By the way, an uptick in new orders helped business activities to pick up. ISM's business activity index, in January, registered 59.9% growth of 59.9% even though it's a drop of 0.6% from the prior month.
Nonetheless, measures of employment, a significant part of the survey, rose last month following a contraction in December. ISM's employment index of the service sector was 55.2% in January versus 48.7% in December. This was also the highest reading in almost a year and showed that service-oriented companies hired employees last month as several government curbs were lifted.
Lastly, Anthony Nieves, Chair of the ISM Services Business Survey Committee, said that "there was continued growth in the services sector for the month of January. Respondents' comments are more optimistic about business conditions and the economy."
Similarly, another survey on service side of the economy was also strong in January. According to IHS Markit, it's U.S. Services Purchasing Managers' Index came in at 58.3 last month, up from 54.8 in December, as quoted in a Morningstar article.
The report further stated that demand for new orders increased as service-oriented businesses returned back to normal, and service providers exhibited enough confidence about future business prospects as well.
US Service Sector Growth Accelerates: 5 Big Gainers
The aforesaid data, without any doubt, showed that this year, the U.S. service side of the economy is already up and running. Thus, placing bets on solid stocks from the said sector seems judicious at this moment. We have, thus, selected five such stocks that might make meaningful additions to your portfolio. These stocks at present flaunt a Zacks Rank #2 (Buy). You can see the complete list of today's Zacks #1 Rank (Strong Buy) stocks here.
CoreLogic is a leading provider of property information, analytics, and data-enabled software platforms and services. The Zacks Consensus Estimate for its current-year earnings has risen5.5% over the past 60 days. The company's expected earnings growth rate for the current year is 35.7%.
Cincinnati Bell is a full-service regional provider of data and voice communications services over wireline and wireless networks. The Zacks Consensus Estimate for its current-year earnings has moved up11% over the past 60 days. The company's expected earnings growth rate for the current year is 15.7%.
Black Knight Financial Services operates through the Technology and Data and Analytics business segments. The technology segment, in particular, offers software and hosting solutions which support loan servicing, loan origination and settlement services. The Zacks Consensus Estimate for its current-year earnings has climbed0.5% over the past 60 days. The company's expected earnings growth rate for the current year is 4%.
Blackstone Group is an asset manager of alternative investments and a provider of financial advisory services. The Zacks Consensus Estimate for its current-year earnings has moved11.6% up over the past 60 days. The company's expected earnings growth rate for the current year is 20%.
CACI International provides information solutions and services in North America and internationally. The Zacks Consensus Estimate for its current-year earnings has moved2% north over the past 60 days. The company's expected earnings growth rate for the current year is 20.2%.
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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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Blackstone Group IncThe (BX) : Free Stock Analysis Report
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