Zacks.com releases the latest list of Zacks Rank Buy Stocks. Everyday on Zacks.com, four stocks are selected based on how well they match the criteria for the four main schools of investing: Aggressive Growth, Growth & Income, Momentum and Value. The four Zacks Rank Buy stocks highlighted today are Unilever plc (NYSE: UL), Parker-Hannifin Corp. (NYSE: PH), Commscope Inc. (NYSE: CTV), and Celanese Corp. (NYSE: CE).
Stocks ranked #1 (Strong Buy) by Zacks have produced an average annual return of +31.8% since inception in 1988. During the 2000-2002 bear market, Zacks #1 Rank stocks gained 43.8% while the S&P 500 tumbled 37.6%. To see the full Zacks #1 Rank (Strong Buy) List, or the rank for any other stock, visit: http://at.zacks.com/?id=88
Here is a synopsis of today’s Zacks Rank Buy Stocks:
Aggressive Growth – Unilever plc (NYSE: UL)
Unilever’s earnings estimates have been on the rise, especially over the past month. During that time period, this year's estimates have risen 13 cents to $1.81 per share, while next year's numbers have increased 21 cents to $1.91 per share. The stock is attractively valued at 15.2x next year's estimates, slightly below the company's projected long-term growth rate of 16%.
Growth & Income – Parker-Hannifin Corp. (NYSE: PH)
There are several positive factors impacting Parker Hannifin's business segments, including margin improvement from increased volume, strategic procurement, pricing, and lean manufacturing efforts undertaken by the company. The company's cash flow position remains healthy and its balance sheet is extremely strong, with a very low net debt/capitalization ratio (23.8%).
Momentum – Commscope Inc. (NYSE: CTV)
Commscope Inc., a Zacks #1 Rank Stock, is up 40% for the year. With the stock trading at 52-week highs on stronger than average volume, further upside is likely. Also, the revised guidance, upward earnings revisions, and analyst upgrade should reinforce the underlying trend. Furthermore, CTV has experienced strong increases in on-balance-volume, which together with higher prices, is typically a bullish signal.
Value – Celanese Corp. (NYSE: CE)
Celanese Corporation, a Zacks #1 Rank Stock, has beat analyst expectations, raised guidance, and announced a debt restructuring and share buyback. These developments have allowed the stock to return over 16% for the year, well above the market averages. In addition, CE continues to trade at multiples well below both the overall market and its respective industry, despite superior profitability.
Truly taking advantage of the Zacks Rank requires the understanding of how it works. The free special report, “Zacks Rank Guide: Harnessing the Power of Earnings Estimate Revisions,” provides an insightful background about this wealth-building tool. Download your free copy of the report now to prosper in the years to come by visiting http://at.zacks.com/?id=93.
About the Zacks Rank
Since 1988, the Zacks Rank has proven that “Earnings estimate revisions are the most powerful force impacting stock prices.” A $10,000 investment in the Zacks Rank list made in 1988 would now be worth $1.77 million – equivalent to a 31.8% annualized return! During the 2000-2002 bear market, Zacks #1 Rank stocks gained 43.8%, while the S&P 500 tumbled 37.6%. Also note that the Zacks Rank system has just as many Strong Sell recommendations (Rank #5) as Strong Buy recommendations (Rank #1). Since 1988, Zacks Rank #5 stocks have underperformed the S&P 500 by 143.6% annually (+4.8% vs. +11.8%). Thus, the Zacks Rank system allows investors to truly manage portfolio trading effectively.
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(a) The S&P 500 Index ("S&P 500") is a well-known, unmanaged index of the prices of 500 large-company common stocks selected by Standard & Poor's. The S&P 500 includes the reinvestment of all dividends, no transaction costs, and represents the gross returns before management fees.
Disclaimer: Past performance does not guarantee future results. Investors should always research companies and securities before making any investments. Nothing herein should be construed as an offer or solicitation to buy or sell any security.