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The Zacks Analyst Blog Highlights: NuStar Energy, Martin Midstream Partners, CVR Refining, CONSOL Coal Resources and AllianceBernstein Holding

Zacks Equity Research
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For Immediate Release

Chicago, IL – July 24, 2018 – 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 NuStar Energy L.P. NS, Martin Midstream Partners L.P. MMLP, CVR Refining, LP CVRR, CONSOL Coal Resources LP CCR and AllianceBernstein Holding L.P. AB.

Today, Zacks is promoting its ''Buy'' stock recommendations. Get #1Stock of the Day pick for free.

Here are highlights from Monday’s Analyst Blog:

Trade War Flares Up! Hedge with These Dividend Stocks

President Trump’s latest move has reignited fears about escalating tariff spats between the United States and its international counterparts. This has limited stock gains despite an earnings season that is shaping up quite well.

Trump is ready to impose tariffs on all imported Chinese goods and has stood by his resolve to levy duties on European automobile imports.

A full-fledged trade war could hurt business growth, spending and sentiments. In the wake of this, investing in companies that pay consistent dividends can make for wonderful investments. Such companies are financially stable and mature, and can generate steady cash flow irrespective of market conditions.

Trump Ups the Ante in the US-China Trade War

Trump recently said that he is willing to impose tariffs on all $505-billion Chinese goods imported to the United States. The President told CNBC’s Joe Kernen in a Squawk Box interview that “I’m ready to go to 500.” He added that he is not “doing this for politics. I’m doing this to do the right thing for our country. We have been ripped off by China for a long time, and I told that to President Xi.”.

Trump’s comments do reveal that he will push further to get Chinese tariff concessions, and a pledge from the Chinese officials to stop the alleged stealing of American technology.

The President had earlier accused the Asian nation for intellectual property theft and slapped 25% tariffs on about $34 billion of Chinese mechanical and technological products. This, in turn, irked the Chinese government which said it would hit back. China’s Commerce Ministry commented that “China is forced to strike back to safeguard core national interests and the interests of its people. It accused the United States of typical trade bullying”.

Trump Threatens Tariffs on European Car Imports

Trump, in the meantime, stood by his commitment to impose sweeping tariffs on imports of European cars and car parts. Tariffs worth around 50 billion euros a year may be levied on auto dealers and auto-parts manufacturers.

Trump warned “tremendous retribution” against the EU, especially regarding auto tariffs, provided his upcoming meeting with EU officials doesn’t yield any fruitful outcome. The EU, in the meanwhile, expressed concern that Trump’s initiative to extend his trade war to imported cars will have a negative impact on the global economy.

Capital Spending to Decline, Profit Margin Takes a Hit

The tit-for-tat trade tariffs being applied by the United States, Chinese government and the EU will affect capital outlays by American companies this year. Spending will reduce further next year, which may indicate the late-stage of the business cycle and eventually squeeze corporate profits.

Fitch Group Credit Officer for U.S. companies, Bill Warlick said that “the escalation of the trade dispute and the notable absence of constructive negotiations point to a continuation of trade-related uncertainty for U.S. businesses through the second half of the year.”

Fitch expects around 3% growth in aggregate capital spending this year, which will be half the growth recorded last year. The rating agency, in fact, fears that spending will be a negative 0.8% next year, mostly due to delays in capital projects.

Investors Remain Cautious on Trade War Fears

A closely watched survey of investor sentiment, by the way, showed a significant rebound in caution last week. According to the AAII Investor Sentiment Survey, nearly 34.7% of investors were optimistic about the U.S. stock market.

These investors expect stock prices to scale north in the next six months. But, the figures do represent a drop of 8.4% from the previous week. Such a decline was enough to pull the reading below its long-term average of 38.5%. 

Buy These 5 Dividend Stocks Now

With trade concerns plaguing investors’ minds, dividend paying stocks are tempting options at the moment. The best dividend stocks pay out a healthy yield and have strong prospects, and are less susceptible to market gyrations. Their large customer base, sustainable business model, long track of profitability and strong liquidity allow them to offer sizable yields on a regular basis, regardless of market direction.

While finding companies that offer these traits isn’t easy, they certainly do exist. To help you find these businesses, we have selected five dividend payers who have a Zacks Rank #1 (Strong Buy) or 2 (Buy).

NuStar Energy L.P. engages in the storage, and marketing of petroleum products in Texas. The company has a Zacks Rank #1. NuStar Energy has a dividend yield of 9.6%, while its five-year average dividend yield is 9.8%. The Zacks Consensus Estimate for its current-year earnings rose 0.6% in the last 60 days. The company’s projected earnings growth rate for the current year is 182.8% compared with the Oil and Gas - Production Pipeline - MLB industry’s estimated rally of 14.7%.

Martin Midstream Partners L.P. transports, stores, and markets petroleum products and by-products in the United States Gulf Coast region. The company has a Zacks Rank #2. Martin Midstream Partners has a dividend yield of 14.5%, while its five-year average dividend yield is pegged at 11.4%. The Zacks Consensus Estimate for its current-year earnings rose 1.6% in the last 60 days. The company’s projected earnings growth rate for the current year is 40.9% compared with the Transportation - Shipping industry’s projected rally of 8.5%.

CVR Refining, LP operates as an independent petroleum refiner and marketer of transportation fuels in the United States. The company sports a Zacks Rank #1. CVR Refining has a dividend yield of 8.8%, while its five-year average dividend yield is pegged at 11.5%. The Zacks Consensus Estimate for its current-year earnings rose 2.3% in the last 60 days. The company’s projected earnings growth rate for the current year is 263.3% compared with the Oil and Gas - Refining and Marketing - Master Limited Partnerships industry’s estimated rally of 13%. You can see the complete list of today’s Zacks #1 Rank stocks here.

CONSOL Coal Resources LP produces and sells high-Btu thermal coal in the Northern Appalachian Basin and the eastern United States. The company has a Zacks Rank #2. CONSOL Coal Resources has a dividend yield of 13.6%, while its five-year average dividend yield is 14%. The Zacks Consensus Estimate for its current-year earnings rose 7.8% in the last 60 days. The company’s projected earnings growth rate for the current year is 41.8% compared with the Coal industry’s estimated rally of 8.5%.

AllianceBernstein Holding L.P. is a publicly owned investment manager. The company has a Zacks Rank #2. AllianceBernstein has a dividend yield of 9.8%, while its five-year average dividend yield is 8.1%. The Zacks Consensus Estimate for its current-year earnings moved up 2.4% in the last 60 days. The company’s projected earnings growth rate for the current year is 13.1% compared with the Financial - Investment Management industry’s projected rally of 5.2%.

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About Zacks Equity Research

Zacks Equity Research provides the best of quantitative and qualitative analysis to help investors know what stocks to buy and which to sell for the long-term.

Continuous coverage is provided for a universe of 1,150 publicly traded stocks. Our analysts are organized by industry which gives them keen insights to developments that affect company profits and stock performance. Recommendations and target prices are six-month time horizons.

Strong Stocks that Should Be in the News

Many are little publicized and fly under the Wall Street radar. They're virtually unknown to the general public. Yet today's 220 Zacks Rank #1 "Strong Buys" were generated by the stock-picking system that has nearly tripled the market from 1988 through 2015. Its average gain has been a stellar +26% per year. See these high-potential stocks free >>.

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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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Martin Midstream Partners L.P. (MMLP) : Free Stock Analysis Report
CVR Refining, LP (CVRR) : Free Stock Analysis Report
Nustar Energy L.P. (NS) : Free Stock Analysis Report
AllianceBernstein Holding L.P. (AB) : Free Stock Analysis Report
CONSOL Coal Resources LP (CCR) : Free Stock Analysis Report
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