Zacks Analyst Blog Highlights: Vertex Pharmaceuticals Inc., Marten Transport, Nucor, Seagate Technology and Sanderson Farms
For immediate release
Chicago, IL – January 26, 2022 – Zacks.com announces the list of stocks featured in the analyst blog. Every day, Zacks Equity Research analysts discuss the latest news and events impacting stocks and financial markets. Stocks recently featured in the blog include: Vertex Pharmaceuticals Inc. VRTX, Marten Transport MRTN, Nucor NUE, Seagate Technology STX and Sanderson Farms SAFM.
Here are the highlights from Tuesday’s analyst blog:
5 Buy-Ranked Stocks Likely to Beat Earnings This Week
Earnings season is closely watched on Wall Street because that’s when investors have access to management input, helping them decide which stocks to buy and which to sell. This is to project the future performance of the company in the context of its most recent quarterly performance.
And it’s not just about performance either. Management’s comments also include their analysis of what happened during the quarter. So, for example, lower than expected orders would be negative on the face of it, but management might give us reasons such as orders pushed back to the next quarter rather than cancellations, which wouldn’t necessarily be as negative. Likewise, higher-than-expected orders may not be as significant as they seem, as there may have been pullbacks starting in the next quarter.
Today, most investors worry about the impact of supply chain and labor issues, which inflate costs and affect margins. Firms have varying degrees of pricing power to pass it on to customers. They can therefore be impacted to varying degrees. Management’s comments will help us understand how the situation is developing for each company and the outlook will give us an idea of what the immediate future holds.
In normal situations, there is a direct reaction to this news in the form of stock price movements. Thus, prices could rise when things look good for the company and go in the opposite direction when there are negative surprises or other disappointing factors. But the resurgence of the virus and the Fed’s decision to raise interest rates are also important considerations in this earnings season. There is therefore not always a positive correlation between results and prices.
This makes predicting an outcome a little less fruitful because there are fewer opportunities to discover information. The Zacks Earnings Surprise Prediction (ESP), in combination with the Zacks Ranking, does the job regardless. And here are some examples you might want to take a look at-
Vertex Pharmaceuticals Inc.
Vertex Pharmaceuticals discovers, develops and commercializes small molecule drugs targeting serious diseases with a particular focus on cystic fibrosis (CF).
Vertex’s No. 2 ranking (buy) and ESP earnings of 4.98% indicate an earnings overrun when the company releases its report on Jan. 26. Historically, there appears to have been little correlation between earnings results and stock prices, although its value and growth scores of Bs make it a relatively safe name for investment.
Marten Transport offers truck, dedicated and intermodal trucking services with a focus on the distribution of food and other consumer packaged goods that require a temperature controlled or insulated environment.
Marten Transport’s No. 2 ranking along with its ESP earnings of 1.89% indicate it will beat earnings when it reports after the bell today. But if you were hoping to pick up the stock on the chance that there was a positive reaction, you better keep in mind that he almost never reacted positively to positive surprises. On the other hand, since it also got an A for value and growth, it seems like a relatively safe bet right now.
Nucor is a leading producer of various forms of structural steel, sheet steel, beams, bars, joists and other steel products.
Nucor shares carry a Zacks Rank #1 (Strong Buy), which together with ESP earnings of 0.0% indicates the company will post a positive surprise when it reports on Jan. 27. In 2021, stocks reacted to earnings news although there was more negative reaction to misfires than positive reaction to beats. But since it got a B for growth and value, it looks like a relatively safe game.
Seagate, the second largest manufacturer of hard disk drives (HDDs) in the United States, also develops other electronic data storage products such as solid-state drives (SSDs) and hybrid solid-state drives (SSHDs). ).
Given that Seagate shares carry a Zacks Rank No. 2 and its ESP earnings are 0.0%, the company has a reasonable chance of beating estimates when it reports Jan. 26. Seagate has a relatively strong history of posting positive surprises, but the reaction to those surprises has been a bit erratic. But given its value score of B and growth score of A, Seagate seems like a relatively safe stock to invest in.
Poultry processing company Sanderson Farms produces and distributes fresh, frozen and minimally prepared chicken products, which are then sold to retailers, distributors, casual dining operators and frozen chicken stockists for export.
Sanderson Farms’ Zacks #1 ranking and 0.0% PSE point to an earnings overshoot when the company reports Jan. 27. In 2021, investors barely responded to its huge positive surprises, so let’s see what they do this year. It should be noted, however, that shares of Sanderson Farms are relatively safe as they have an A rating for value and growth.
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From thousands of stocks, 5 Zacks experts have each picked their favorite to skyrocket by +100% or more in the coming months. Of these 5, Research Director Sheraz Mian selects one to have the most explosive advantage of all.
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The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.