Zacks.com featured highlights Clearfield, DHT Holdings, AerSale, Leonardo DRS and NOW
For Immediate Release
Chicago, IL – December 16, 2022 – Stocks in this week’s article are Clearfield, Inc. CLFD, DHT Holdings, Inc. DHT, AerSale Corp. ASLE, Leonardo DRS, Inc. DRS and NOW Inc. DNOW.
5 Stocks to Watch Amid Crisis as Analysts Initiate Coverage
Recession fears have been dominating the stock market headlines of late, resulting in accelerated selloffs. Market pundits and investors are of the opinion that the Federal Reserve’s increasingly hawkish stance can push the U.S. economy into deep recession. Now, as the stock markets are experiencing record levels of volatility, investors may look for stocks that recently received new analyst coverage.
The logic behind this is that analysts don’t add a stock to their coverage randomly. New coverage on a stock is usually the result of huge investor focus on it or its promising prospects.
Clearfield, Inc., DHT Holdings, Inc., AerSale Corp., Leonardo DRS, Inc. and NOW Inc. are a few stocks that have witnessed new analyst coverage lately. These, therefore, are expected to attract investor attention.
Interestingly, stocks typically see an incremental upward price movement with new analyst coverage compared to what they witness with the continuation of existing analyst coverage. Of course, the price movement depends on the recommendations from the new analysts. Positive recommendations — Buy and Strong Buy — lead to a significant positive incremental price reaction than Strong Sell, Sell or Hold recommendations.
Moreover, if an analyst gives a new recommendation on a company that has limited or no analyst coverage, investors start paying more attention to it. As analysts almost always initiate coverage with a positive recommendation. Also, any new information attracts portfolio managers to build a position in the stock.
However, one should preferably look for the average change in broker recommendation rather than a single recommendation change. Then again, an upgrade, an initiation or even increased coverage is equally important.
Below, we have selected five stocks that have seen increased analyst coverage over the last few weeks.
Clearfield: Headquartered in Minneapolis, MN, Clearfield designs and manufactures the FieldSmart fiber management platform, which includes its latest generation Fiber Distribution System and Fiber Scalability Center.
CLFD currently carries a Zacks Rank #1. The stock has gained 25.2% year to date (YTD) against the industry’s 26.5% decline. Earnings estimates for fiscal 2023 have increased to $4.95 per share from $3.60 per share over the past 30 days. The estimated figure implies 39.4% growth from the year-ago period. You can see the complete list of today’s Zacks #1 Rank stocks here.
DHT Holdings: Based in Hamilton, Bermuda, DHT owns and operates crude oil tankers primarily in Monaco, Singapore and Norway.
DHT currently carries a Zacks Rank #2 (Buy). The stock has gained 81.9% YTD compared with the industry’s 18.5% rise. Earnings estimates for 2023 have increased to $1.17 per share from $1.06 per share over the past 30 days. The estimated figure indicates 431.8% growth from the year-ago period.
AerSale: This Coral Gables, FL-based company provides integrated, diversified aviation aftermarket products and services for aircraft owners and operators to realize savings in the operation, maintenance and monetization of their aircraft, engines and components.
ASLE currently carries a Zacks Rank #3 (Hold). The stock has declined 13.1% YTD against the industry’s 4.8% rise. Nonetheless, earnings estimates for 2023 have increased to $1.17 per share from $1.11 per share over the past 30 days. The estimated figure calls for 3.8% growth from the year-ago period.
Leonardo DRS: Based in Arlington, VA, DRS provides defense products and technologies in the land, air, sea, space, cyber and security, and commercial domains for military applications.
DRS currently carries a Zacks Rank #3. The stock has gained 25.8% YTD compared with the industry’s 4.8% rise. Earnings are expected to witness 2,100% growth from the year-ago period.
NOW Inc.: Headquartered in Houston, TX, DNOW distributes downstream energy and industrial products for petroleum refining, chemical processing, LNG terminals, power generation utilities, and industrial manufacturing operations in the United States, Canada and internationally.
DNOW currently carries a Zacks Rank #3. The stock has gained 47.2% YTD compared with the industry’s 11.9% rise. Earnings estimates for 2023 have increased to 94 cents per share from 87 cents per share over the past 60 days. The estimated figure calls for 5.1% growth from the year-ago period.
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For the rest of this Screen of the Week article please visit Zacks.com at: https://www.zacks.com/stock/news/2028998/5-stocks-to-watch-amid-crisis-as-analysts-initiate-coverage
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DHT Holdings, Inc. (DHT) : Free Stock Analysis Report
NOW Inc. (DNOW) : Free Stock Analysis Report
Clearfield, Inc. (CLFD) : Free Stock Analysis Report
AerSale Corporation (ASLE) : Free Stock Analysis Report
Leonardo DRS, Inc. (DRS) : Free Stock Analysis Report
