The Zacks Analyst Blog Highlights General Mills, Worthington Industries, The Greenbrier, The PNC Financial Services and GasLog Partners
For Immediate Release
Chicago, IL – July 6, 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: General Mills Inc. GIS, Worthington Industries Inc. WOR, The Greenbrier Companies Inc. GBX, The PNC Financial Services Group Inc. PNC and GasLog Partners LP GLOP.
Here are highlights from Wednesday’s Analyst Blog:
5 Stocks in Focus Based on Recent Dividend Hikes
U.S. stock markets had a dream rally in the first half of 2023 after a disappointing 2022. Wall Street achieved several milestones in the first half of this year. The broad-market index — the S&P 500 — formed a new bull market during this period. The S&P 500 and the Nasdaq Composite recorded their best first-half since 2019 and 1983, respectively. The Dow relatively lagged. Yet, the blue-chip index managed to finish the first half in green.
Despite these fabulous performances, we are not out of the woods. On Jun 14, in his post-FOMC meeting statement, Fed Chairman Jerome Powell said that the central bank has decided to keep the Fed fund rate unchanged at the existing rate of 5-5.25%.
However, Powell also mentioned that more rate hikes are likely this year. The Fed's current "dot-plot" shows that the mean expectation of officials is for another 50-basis point raise in the benchmark interest rate. This implies two more rate hikes of 25 basis points each within 2023.
The terminal interest rate is at present 5.6%, instead of the 5.125%, anticipated after the May FOMC meeting. No rate cut is expected this year. The first cut in interest rate may be delayed till 2025.
At present, the CME FedWatch assigned an 87.5% probability to a Fed fund rate hike of 25 basis points in the July FOMC meeting. Only, 12.5% of respondents think the lending rate will remain the same.
Stocks in Focus
At this stage, dividend-paying stocks should be in demand as investors try to safeguard their portfolios. We believe that one should consider stocks that have recently raised their dividend payments. Five such companies are - General Mills Inc., Worthington Industries Inc., The Greenbrier Companies Inc., The PNC Financial Services Group Inc. and GasLog Partners LP.
General Mills has gained from its Accelerate strategy, which is highlighted by its key priorities. These include competing efficiently, investing in Holistic Margin Management and Strategic Revenue Management initiatives and reshaping the portfolio.
GIS' recent portfolio reshaping actions are likely to drive growth, though the net impact is likely to hurt fiscal 2023 profits. In the fiscal year, management expects a rise in the cost of goods sold. That said, saving and pricing actions should favor the company. General Mills currently carries a Zacks Rank #3 (Hold).
On Jun 28, 2023, General Mills declared that its shareholders would receive a dividend of $0.59 per share on Aug 1, 2023. It has a dividend yield of 2.9%. Over the past five years, GIS has increased its dividend three times, and its payout ratio presently stays at 50% of earnings. Check GIs' dividend history here.
Worthington Industries is North America's premier, value-added steel processor, providing customers with wide ranging capabilities, products and services for a variety of markets including automotive, construction and agriculture. WOR is also the leading global supplier of pressure tanks and cylinders.
WOR manufactures a host of pressure cylinders for industrial gas and cryogenic applications, oil and gas equipment, transportation and alternative fuel storage, and consumer brand retail products, including Bernzomatic, Coleman and Balloon Time. Worthington Industries currently sports a Zacks Rank #1 (Strong Buy). You can see the complete list of today's Zacks #1 Rank stocks here.
On Jun 28, 2023, Worthington Industries declared that its shareholders would receive a dividend of $0.32 per share on Sep 29, 2023. It has a dividend yield of 1.9%. Over the past five years, WOR has increased its dividend six times, and its payout ratio presently stays at 21% of earnings. Check WOR's dividend history here.
The Greenbrier Companies is a leading supplier of transportation equipment and services to the railroad and related industries. GBX's manufacturing segment produces double-stack intermodal railcars, conventional railcars and marine vessels, and performs repair and refurbishment activities for both intermodal and conventional railcars.
GBX is also engaged in complementary leasing and services activities. Greenbrier Europe is an end-to-end freight railcar manufacturing, engineering and repair business with operations in Poland & Romania that serves customers across Europe and the Middle East. The Greenbrier Companies currently carries a Zacks Rank #2 (Buy).
On Jun 29, 2023, The Greenbrier Companies declared that its shareholders would receive a dividend of $0.30 per share on Aug 8, 2023. It has a dividend yield of 2.8%. Over the past five years, GBX has increased its dividend two times, and its payout ratio presently stays at 42% of earnings.Check GBX's dividend history here.
The PNC Financial stands solid from the balance-sheet perspective. Total loans and deposits have witnessed a four-year (2018-2022) CAGR of 9.6% and 13%, respectively. The rising trend continued sequentially in first-quarter 2023 in terms of loans and deposits. With decent pipelines, PNC is well poised for loan balance growth in 2023. PNC expects loans to rise 1-3% in 2023.
PNC remains committed to strengthening its business through strategic acquisitions. Also, sound capital deployment activities, backed by decent liquidity, may boost investors' confidence in the stock. The PNC Financial currently carries a Zacks Rank #3.
On Jul 3, 2023, The PNC Financial declared that its shareholders would receive a dividend of $1.55 per share on Aug 5, 2023. It has a dividend yield of 4.9%. Over the past five years, PNC has increased its dividend four times, and its payout ratio presently stays at 41% of earnings. Check PNC's dividend history here.
GasLog Partners owns, operates and acquires LNG carriers with multi-year charters. GLOP charges customers for the transportation of their LNG using its LNG carriers. GLOP currently carries a Zacks Rank #3.
On Jul 3, 2023, GasLog Partners declared that its shareholders would receive a dividend of $3.28 per share on Jul 12, 2023. It has a dividend yield of 0.5%. Over the past five years, GasLog Partners has increased its dividend two times, and its payout ratio presently stays at 2% of earnings. Check GLOP's dividend history here.
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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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The PNC Financial Services Group, Inc (PNC) : Free Stock Analysis Report
Worthington Industries, Inc. (WOR) : Free Stock Analysis Report
General Mills, Inc. (GIS) : Free Stock Analysis Report
Greenbrier Companies, Inc. (The) (GBX) : Free Stock Analysis Report
GasLog Partners LP (GLOP) : Free Stock Analysis Report
