Zacks.com featured highlights Cimpress, GigaCloud, AZZ, Pangaea Logistics and Photronics
For Immediate Release
Chicago, IL – February 6, 2024 – Stocks in this week’s article are Cimpress plc CMPR, GigaCloud Technology Inc. GCT, AZZ Inc. AZZ, Pangaea Logistics Solutions Ltd. PANL and Photronics Inc. PLAB.
5 Stocks with Recent Price Strength to Enhance Your Portfolio
Wall Street ended January in a zigzag fashion after an astonishing rally in 2023. The first half of last month was marred by volatility as market participants remained uncertain about when the Fed would start interest rate cuts.
However, the situation changed in the second half following the release of several strong economic data and steadily falling inflation data. However, U.S. stock markets tumbled on the last day of January after the Fed denied the possibility of the first rate cut in March.
Meanwhile, Wall Street managed to maintain its northward journey in January. The three major stock indexes — the Dow, the S&P 500 and the Nasdaq Composite — advanced 1.2%, 1.6% and 1%, respectively.
This momentum is likely to continue as robust nonfarm payrolls of January, solid consumer spending in December, and an improving manufacturing index in January eliminated market participants’ concerns of a near-term recession.
On the other hand, in December, core PCE inflation — Fed’s most favorite inflation gauge — increased 0.2% month over month and 2.9% annually. The annual rate of increase in December was the slowest since March 2021.
As a result, several stocks have shown price strength. We have selected five stocks likely to gain in the near term on the back of a favorable Zacks Rank. These companies are — Cimpress plc, GigaCloud Technology Inc., AZZ Inc., Pangaea Logistics Solutions Ltd. and Photronics Inc.
Here’s How We Arrived at the Picks
We have primarily targeted stocks that have freshly been on a bull run. Stocks seeing price strength recently have a high chance of carrying the momentum forward.
If a stock is continuously witnessing an uptrend, there must be a solid reason or it would have probably crashed. So, looking at stocks capable of beating the benchmark that they have set for themselves seems rational.
However, recent price strength alone cannot create magic. Therefore, other relevant parameters are needed to create a successful investment strategy.
Here’s how you should create the screen to shortlist the current as well as the potential winners.
Let’s discuss five out of these 11 stocks:
Cimpress has benefitted from the strength across the Vista, National Pen and Upload & Print segments. CMPR’s Vista unit is being aided by an increase in the customer count along with the continued increase of revenue per customer. Significant growth in the e-commerce channel is driving the National Pen segment. Increasing order rate is aiding the National Pen segment.
CMPR’s investments in product innovation augur well for long-term growth. The company’s focus on cost-control measures is supporting its margin performance. Cimpress’ bullish guidance for fiscal 2024 holds promise. Also, CMPR’s business restructuring action is likely to improve customer value and operational efficiency over the long term.
The stock price of Cimpress has jumped 24.1% in the past four weeks. It has an expected earnings growth rate of more than 100% for the current year. The Zacks Consensus Estimate for current-year earnings has improved 0.3% over the last 60 days.
GigaCloud Technology is a pioneer of global end-to-end B2B e-commerce solutions for large parcel merchandise. GCT’s marketplace seamlessly connects manufacturers, primarily in Asia, with resellers, primarily in the United States, Asia and Europe, to execute cross-border transactions.
The stock price of GigaCloud Technology has climbed 22.1% in the past four weeks. It has an expected earnings growth rate of 26.3% for the current year. The Zacks Consensus Estimate for current-year earnings has improved 13.8% over the last 30 days.
AZZ is a global provider of metal coating services, welding solutions, specialty electrical equipment and highly engineered services to the markets of power generation, transmission, distribution and industrial in protecting metal and electrical systems used to build and enhance the world's infrastructure.
AZZ Metal Coatings is a leading provider of metal finishing solutions for corrosion protection, including hot dip galvanizing to the North American steel fabrication industry. AZZ Energy is dedicated to delivering safe and reliable transmission of power from generation sources to end customers, and automated weld overlay solutions for corrosion and erosion mitigation to critical infrastructure in the energy markets worldwide.
The stock price of AZZ has surged 13.9% in the past four weeks. It has an expected earnings growth rate of 9.1% for the current year (ending February 2025). The Zacks Consensus Estimate for current-year earnings has improved 4.2% over the last 30 days.
Pangaea Logistics provides seaborne drybulk transportation services. PANL provides logistics services to a broad base of industrial customers who require the transportation of a wide variety of dry bulk cargoes, including grains, pig iron, hot-briquetted iron, bauxite, alumina, cement clinker, dolomite, and limestone. Pangaea Logistics provides dry bulk cargo transportation services for steel, aluminum, energy, agricultural, and other sectors.
The stock price of Pangaea Logistics has rallied 12.2% in the past four weeks. It has an expected earnings growth rate of 25.8% for the current year. The Zacks Consensus Estimate for current-year earnings has improved 19.6% over the last 30 days.
Photronics is engaged in the manufacture and sale of photomask products and services in the United States, Taiwan, Korea, Europe, China, and internationally. PLAB offers photomasks that are used in the manufacture of integrated circuits and flat panel displays and to transfer circuit patterns onto semiconductor wafers, FDP substrates, and other types of electrical and optical components.
The stock price of Photronics has advanced 5.5% in the past four weeks. PLAB has an expected earnings growth rate of 27.5% for the current year (ending October 2024). The Zacks Consensus Estimate for current-year earnings has improved 15.6% over the last 60 days.
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AZZ Inc. (AZZ) : Free Stock Analysis Report
Photronics, Inc. (PLAB) : Free Stock Analysis Report
Cimpress plc (CMPR) : Free Stock Analysis Report
Pangaea Logistics Solutions Ltd. (PANL) : Free Stock Analysis Report
GigaCloud Technology Inc. (GCT) : Free Stock Analysis Report
