U.S. Markets closed

The Zacks Analyst Blog Highlights: Western Digital, Magna International, Nucor, Sony and Caterpillar

Zacks Equity Research
Wells Fargo (WFC) takes another step toward its impressive cost-cutting target by restructuring the company's wealth and investment management segment.

For Immediate Release

Chicago, IL – May 22, 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 Western Digital Corporation WDC, Magna International Inc. MGA, Nucor Corporation NUE, Sony Corporation SNE and Caterpillar Inc. CAT.

Here are highlights from Monday’s Analyst Blog:

Grab 5 Cheap Large-Cap Stocks on Eased U.S.-China Trade Fear

Trade worries between the United States and China, which cast a pall on Wall Street for months, have eased. This is especially true as the world’s largest economies dropped their tariff threats and set up a framework for addressing potential trade imbalances in the future.

The Latest Development

Beijing has agreed to substantially reduce America's massive trade deficit with China but did not commit any specific amount. The Trump administration wanted to slash the deficit by $200 billion. China has promised to purchase more U.S. goods and services that would support growth and employment in the United States and increase U.S. agriculture and energy exports.

The U.S. Treasury Secretary Steven Mnuchin expects a big increase of 35-45% in domestic farm sales to China for this year and a doubling in sales of U.S. energy products to the Chinese market increasing energy exports by $50-$60 billion in the next three to five years. Morgan Stanley estimates it could take up to three years to increase Chinese purchases of U.S. goods by $60-$90 billion, with a rise in agricultural imports in the near term followed by energy.

Though the talks are in the initial stage, it has cooled down tensions, which have heightened since the Trump administration proposed tariffs of $50 billion on Chinese goods and threatened to extend the levies to an additional $150 billion. China retaliated with its own measures targeting U.S. agriculture.

Market Impact

The news has injected fresh optimism into the markets, giving a fresh lease of life to the stocks. Dow futures rose 0.9% while the S&P 500 futures rose 0.6% at the time of writing. The smooth trading is likely to continue in the normal trading session and investors should cash in the opportunity to buy the stocks that are cheap relative to the S&P 500 and have a Zacks Rank #1 (Strong Buy) or #2 (Buy). 

Further, we screened for the ones that have solid VGM Score of A or B, a double-digit estimated earnings growth rate for this year and a top-ranked Zacks industry (top 50%).

Western Digital Corporation – P/E Ratio: 6.33

This California-based company designs, develops, manufactures and markets a broad line of hard drives featuring leading-edge technology. It has an expected earnings growth of 59.41% for fiscal year (ending June 2018) and belongs to a top-ranked Zacks industry (top 4%). The stock carries a Zacks Rank #1 and has a VGM Score of A. You can see the complete list of today’s Zacks #1 Rank stocks here.

Magna International Inc. - P/E Ratio: 9.46

This Canada-based company is an independent supplier of original equipment components, assemblies, modules and systems and related tooling for cars and light trucks. It has an expected earnings growth rate of 17.28% for this year. Magna International has a Zacks Rank #2 and a VGM Score of A. It further falls into a top-ranked Zacks industry (top 24%).

Nucor Corporation – P/E Ratio: 11.19   

This North Carolina-based company manufactures and sells steel and steel products in the United States and internationally. It has an expected earnings growth of 66.95% for this year and belongs to a top-ranked Zacks industry (top 14%). The stock carries a Zacks Rank #2 and has a VGM Score of B.

Sony Corporation – P/E Ratio: 11.54

This Japan-based company develops and manufactures consumer and industrial electronic equipment. The stock is expected to generate earnings growth of 27.96% for fiscal year (ending March 2019). SNE has a Zacks Rank #2 and a VGM Score of A. It belongs to the top-ranked Zacks industry (top 6%).

Caterpillar Inc. – P/E Ratio: 14.53

This Illinois-based company is a manufacturer of construction and mining equipment, diesel and natural gas engines, industrial gas turbines and diesel-electric locomotives. Its earnings are expected to grow 53.78% for this year. The stock has a Zacks Rank #1 and a VGM Score of A. It falls under a top-ranked Zacks industry (top 15%).

Looking for Stocks with Skyrocketing Upside?

Zacks has just released a Special Report on the booming investment opportunities of legal marijuana. Ignited by new referendums and legislation, this industry is expected to blast from an already robust $6.7 billion to $20.2 billion in 2021. Early investors stand to make a killing, but you have to be ready to act and know just where to look.

See the pot trades we're targeting>>

Media Contact

Zacks Investment Research

800-767-3771 ext. 9339

support@zacks.com                                      

https://www.zacks.com                                                   

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.


Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report
 
Western Digital Corporation (WDC) : Free Stock Analysis Report
 
Sony Corporation (SNE) : Free Stock Analysis Report
 
Magna International Inc. (MGA) : Free Stock Analysis Report
 
Caterpillar Inc. (CAT) : Free Stock Analysis Report
 
Nucor Corporation (NUE) : Free Stock Analysis Report
 
To read this article on Zacks.com click here.
 
Zacks Investment Research