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The Zacks Analyst Blog Highlights: Mohawk Industries, Ethan Allen Interiors, Rocky Brands, Standard Motor Products and MarineMax

Zacks Equity Research
·8 min read

For Immediate Release

Chicago, IL – November 4, 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: Mohawk Industries, Inc. MHK, Ethan Allen Interiors Inc. ETH, Rocky Brands, Inc. RCKY, Standard Motor Products, Inc. SMP and MarineMax, Inc. HZO.

Here are highlights from Tuesday’s Analyst Blog:

5 Election-Proof Stocks to Pick Up Now

As the country moves through Election Day, investors are busy future-proofing their portfolios.

Although polls indicate a Biden victory, an Electoral College win for Trump can’t be ruled out. Yet. Whether victory goes to Trump or Biden, the markets are bound to react. Whether there will be a bigger reaction to a Trump victory because of his stand on the burning issues of virus control, China, taxation, etc or whether there will be a bigger reaction to a Biden win because of his stand on the environment, healthcare, etc still remains an open question.

And the fact that all the major indexes were in the black yesterday, doesn’t mean that it’s going to be a trend.

Also, while the election is a big piece of the current uncertainty, it isn’t the only one. Hopes regarding a second stimulus keep waxing and waning and it’s clear that certain segments of the economy like airlines, hotels and smaller restaurants are taking it on the chin. It’s going to be hard to stay in business (for those that haven’t already bowed out) unless there’s more money coming in.

That’s especially true because fresh infections and partial lockdowns are back and this may be something we have to learn to live with considering that a “cure” may not be available any time soon.

But this is also the holiday quarter. So things may not be as bad as feared. Because despite all the tensions and the possibility that consumers will buy less than in other years, it is still going to be a relatively good quarter.

Third quarter results so far and subsequent estimate revision trends are also encouraging.

Of the 320 S&P 500 members or the 64% of the index’s total membership that had reported as of Oct 30, earnings are down 7.2% from the same period last year on 4.3% lower revenues. 86.6% of these companies beat EPS estimates and 77.8% beat revenue estimates.

This also led to revisions in fourth quarter earnings growth estimates. Earnings are now expected to be down 11.7% from last year, compared to an expected decline of 12.4% on Oct 14 and expected decline of 14.4% back in July.

For full-year 2020, total earnings for the S&P 500 index are currently expected to be down 19.1% on 4.4% lower revenues. There is expected to be a snap back in 2021 with revenue growth of 7.5% and earnings growth of 23.5%.

So things are turning out to be better than hoped and estimates continue to move up. Additionally, leading market indicators and GDP growth are also encouraging. From what I can tell at this point, U.S. stocks remain a good place to park your money.

So with the understanding that Zacks Rank #1 (Strong Buy) stocks offer upside in the near term, that stocks belonging in the top 50% of Zacks-ranked industries outperform the bottom 50%, that a Zacks Momentum Score of A indicates further chances of upside while attractive Value and/or Growth stocks also increases these chances, here are a few stocks you may want to add to your portfolio-

Mohawk Industries

Mohawk Industries is a leading global manufacturer of flooring products for residential and commercial users. Its product range includes carpets, rugs, ceramic tiles, laminates, wood, stone and vinyl flooring. It has operations in Australia, Brazil, Canada, Europe, India, Malaysia, Mexico, New Zealand, Russia and the U.S.

Zacks Rank #1

Value Score A

Growth Score C

Momentum Score A

Industry: Textile - Home Furnishing (top 10%)

The company beat third-quarter revenue and earnings estimates by 2.9% and 41.1%, respectively.

The Zacks Consensus Estimate for the December quarter jumped 15 cents (7.5%) seven days ago. The estimate for 2020 and 2021 also moved up by a respective 30 cents and 43 cents.

Ethan Allen Interiors

Ethan Allen offers free interior design services to its clients and sells a full range of furniture products and decorative accessories through ethanallen.com and a network of the design centers within the U.S. and internationally.

Zacks Rank #1

Value Score B

Growth Score A

Momentum Score A

Industry: Retail - Home Furnishings (top 15%)

The company met third-quarter revenue estimates while beating earnings estimates by 2.9%.

The Zacks Consensus Estimate for the December quarter increased by 6 cents seven days ago and another 4 cents since. The estimate for 2021 (ending in June) jumped 58 cents (101.8%) seven days ago and by another 3 cents since. The estimate for 2022 jumped 42 cents (44.2%) seven days ago and another couple of cents since then.

Rocky Brands

Rocky Brands is a leading designer, manufacturer and marketer of premium quality footwear and apparel under a portfolio of well recognized brand names including Rocky Outdoor Gear, Georgia Boot, Durango, Lehigh, as well as the licensed brand, Dickies.

Zacks Rank #1

Value Score B

Growth Score C

Momentum Score A

Industry: Shoes and Retail Apparel (top 15%)

The company beat third-quarter revenue and earnings estimates by 11.9% and 79.3%, respectively.

The Zacks Consensus Estimate for the December quarter jumped 24 cents (41.4%) in the last seven days. The estimate for 2020 and 2021 also moved up by a respective 70 cents and 35 cents.

Standard Motor Products

Standard Motor Products is one of the leading manufacturers, distributors and marketers of premium automotive replacement parts for engine management and temperature control systems. It mainly focuses on the heavy-duty industrial and the original equipment market.

Zacks Rank #1

Value Score C

Growth Score A

Momentum Score A

Industry: Automotive - Replacement Parts (top 9%)

The company beat third-quarter revenue and earnings estimates by 4.8% and 69.2%, respectively.

The Zacks Consensus Estimate for the December quarter increased 7 cents (11.9%) in the last seven days. The estimate for 2020 and 2021 also moved up 48 cents and 17 cents, respectively.

MarineMax

MarineMax is the nation's largest recreational boat and yacht retailer with many premium brands.

Zacks Rank #1

Value Score A

Growth Score A

Momentum Score A

Industry: Retail - Miscellaneous (top 25%)

The company beat third-quarter revenue and earnings estimates by 16.4% and 190.2%, respectively.

The Zacks Consensus Estimate for the December quarter increased by 2 cents seven days ago and another 22 cents (66.7%) over the next few days. The estimate for 2021 (ending in September) increased by 6 cents seven days ago and jumped $1.01 since then. The estimate for 2021 also moved up by 11 cents seven days ago and $1.89 since then.

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Media Contact

Zacks Investment Research

800-767-3771 ext. 9339

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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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Mohawk Industries, Inc. (MHK) : Free Stock Analysis Report
 
MarineMax, Inc. (HZO) : Free Stock Analysis Report
 
Standard Motor Products, Inc. (SMP) : Free Stock Analysis Report
 
Ethan Allen Interiors Inc. (ETH) : Free Stock Analysis Report
 
Rocky Brands, Inc. (RCKY) : Free Stock Analysis Report
 
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