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The Zacks Analyst Blog Highlights: Group 1, Pilgrim's Pride, Enova, Third Point and ADTRAN

Zacks Equity Research
Zacks.com featured highlights include: Lithia Motors, OUTFRONT, Lockheed, Maximus and Microsoft

For Immediate Release

Chicago, IL –June 12, 2019 – 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: Group 1 Automotive Inc. GPI, Pilgrim's Pride Corp. PPC, Enova International Inc. ENVA, Third Point Reinsurance Ltd. TPRE and ADTRAN Inc. ADTN.

Here are highlights from Tuesday’s Analyst Blog:

Why You Should Buy Growth Stocks Now

After logging in the worst May since 2010, Wall Street staged a nice comeback at the start of June primarily on the hopes of monetary easing policies though the U.S.-China trade spat and global growth concerns linger.

Fed Chair Powell, who suspended the three-year monetary policy tightening program this year, last week signaled rate cuts if needed. The latest weak job data has stirred speculation on interest rate cuts. Lower rates would make borrowings cheaper, providing a boost to both investment in new projects and repayment of higher-rate debt. As such, it would lead to strong economic growth and is thus a boon for the stock market (read: ETFs Set to Soar on Rate Cuts Signal).

Additionally, the rally came after President Trump suspended the planned tariffs against Mexico. A slew of mergers and acquisitions is also driving stocks higher this month.

Given the return of bullish trends, nothing seems a better strategy than growth. This is especially true, as growth stocks refer to high-quality stocks that are likely to witness revenue and earnings increase at a faster rate than the industry average. These stocks harness their momentum in earnings to create a positive bias in the market, resulting in rocketing share prices. As such, growth stocks tend to outperform during an uptrend.

However, it is worth noting that these stocks with growth characteristics that have comparatively higher P/B, P/S and P/E ratios and exhibit a higher degree of volatility when compared to value stocks.

Given this, we have highlighted five growth stocks that have a top Zacks Rank #1 (Strong Buy), suggesting their outperformance.

Stocks to Buy

Here, in addition to a top Zacks Rank, we have used several other criteria like a Growth Score of A, positive earnings estimate revision for this year, double-digit estimated earnings growth for this year, and a solid Zacks Industry Rank. You can see the complete list of today’s Zacks #1 Rank stocks here.

Group 1 Automotive Inc.

This Fortune 500 automotive retailer is a leading operator in the automotive retailing industry. Group 1 has grown to become the third largest dealership group.

Market Cap: $1.4 billion

This Year Estimated Earnings Growth: 14.14%

Zacks Industry Rank: Top 1%

Pilgrim's Pride Corp.

It is one of the largest chicken companies in the United States, Mexico and Puerto Rico.

Market Cap: $6.7 billion

This Year Estimated Earnings Growth: 43%

Zacks Industry Rank: Top 2%

Enova International Inc.

It is a provider of online financial services that offers loans to customers in the United States and in the United Kingdom, Australia and Canada (read: ETFs to Win After Soft May Jobs Data).

Market Cap: $781.4 million

This Year Estimated Earnings Growth: 30.6%

Zacks Industry Rank: Top 4%

Third Point Reinsurance Ltd.

This property and casualty reinsurance company is engaged in underwriting property, auto, workers compensation and crop quota share contracts for insurance and reinsurance companies.

Market Cap: $973.1 million

This Year Estimated Earnings Growth: 193.3%

Zacks Industry Rank: Top 18%

ADTRAN Inc.

It is a leading global provider of networking & communications equipment, with an 18-year history of profitability & a portfolio of more than one thousand four hundred solutions for use in the last mile of today's telecommunications networks.

Market Cap: $790.8 million

This Year Estimated Earnings Growth: 197.1%

Zacks Industry Rank: Top 27%

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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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Group 1 Automotive, Inc. (GPI) : Free Stock Analysis Report
 
ADTRAN, Inc. (ADTN) : Free Stock Analysis Report
 
Enova International, Inc. (ENVA) : Free Stock Analysis Report
 
Pilgrim's Pride Corporation (PPC) : Free Stock Analysis Report
 
Third Point Reinsurance Ltd. (TPRE) : Free Stock Analysis Report
 
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