3 ranks of Zacks # 1 with growth AND value
Wwhether it’s a business, job, relationship, or your favorite brand of toothpaste at the supermarket; no one likes to settle for something. This means we take less than the best… usually because it’s easy.
And when it comes to investing, it means we make less money than we could. If you want to invest in growth AND value… you should be able to! And Zacks can help.
We have a screen that not only helps you find high growth rates and low valuations, but also adds the power of Zacks Rank. This screen is ingeniously titled: Growth & Value Plus Zacks Rank # 1. Below are three actions that recently passed the test.
GPS from The Gap Inc.
The company name may be The Gap Inc. (GPS), but the real powerhouse these days is Old Navy. And the active women’s clothing brand Athleta is also starting to gain traction. These two brands led to a strong second quarter tax performance at the end of August, which included an enhanced full year outlook.
GPS is a leading international specialty retailer with more than 3,800 stores worldwide. Its four segments are Gap Global, Old Navy Global, Banana Republic Global and Other (which includes the aforementioned Athleta brand). Within the retail space – clothing and footwear, the company is in the Top 16% of the Zacks Industry ranking. Shares have climbed around 14% so far in 2021.
Earnings per share in its fiscal second quarter stood at 70 cents, which was nearly 50% above Zacks’ consensus estimate. Net sales of $ 4.2 billion exceeded our expectations of $ 4.17 billion and jumped 29% year-on-year. More impressively however, the result improved by 5% compared to the same period in 2019, which was pre-covid.
Comparable store sales increased 3% year over year and 12% compared to two years ago.
These annoying Old Navy ads really have to work, as this segment’s net sales jumped 21% in the quarter with lineup up 18% from 2019. Going forward, Old Navy has big hopes for its inclusive BODEQUALITY shopping experience, which is part of its power. Plan 2023 for long-term sustainable growth.
Athleta’s net sales climbed 35% with line-ups up 27% from 2019. GPS is also working to transform Banana Republic across a variety of factors including product mix. Sales were still down in the quarter, but improved from the first quarter of 2021.
GPS has worked hard to improve its marketing efforts, improve its brand management, and improve its technology. These factors paid off so much that the company raised its outlook for the entire year. He now expects Adjusted EPS of between $ 2.10 and $ 2.25 with net sales growing around 30% from 2020.
Zacks’ consensus estimate for this fiscal year (ending January 2022) is now $ 2.21, which is a 24.2% improvement over the past 60 days. The next fiscal year (ending January 2023) is now estimated at $ 2.65, up 20.5% over the same period and suggests a 20% improvement year over year.
Image source: Zacks Investment Research
Mosaic MOS company
In the age of artificial intelligence, 5G, the Internet of Things, blockchain and dozens of other technologies; it seems strange that something like fertilizer could be considered “hot”. And yet this space is in the top 6% of the Zacks industry rankings, as agricultural trends are expected to be strong going forward.
One of the biggest names in the space is The Mosaic Company (MOS), a leading producer and distributor of concentrated nutrients for phosphate and potash crops. Shares have risen more than 60% so far this year, and the company expects the second half of 2021 to be one of its best times in more than a decade.
In the second quarter, MOS reported earnings per share of $ 1.17, beating Zacks’ consensus estimate by more than 15%. It was the fifth consecutive quarter with a positive surprise. The average beat over the past four quarters is just under 43%, but that’s skewed a bit by a triple-digit surprise in the fourth quarter.
Net sales of $ 2.8 billion were actually a little below our expectations, but still jumped 37% year-over-year as higher prices offset lower prices. volumes. Net sales of Phosphates increased by 54%, while those of Potash increased by 19%. Volumes in both segments declined.
Going forward, MOS projects an improvement of $ 90 to $ 100 per tonne in the average realized price in the phosphate segment sequentially in the third quarter, while the potash segment is expected to have an improvement of $ 25 to $ 35 per tonne. .
Zacks’ consensus estimate for this year stands at $ 4.86, which has jumped 47.7% in the past two months. Expectations for next year are $ 4.68, which suggests a year-over-year decline. However, analysts have raised their expectations by around 43% in 60 days, so there is plenty of room for improvement before December 2022.
Image source: Zacks Investment Research
Best buy BBY
It’s scary to think of where this country would have been in this pandemic without the technology. It enabled millions of people to work from home and students to learn from home during an unprecedented shutdown. We were able to stay in close contact with our loved ones in quarantine. And technology has provided gaming and streaming options to keep the family occupied so you can have some sweet moments of solitude before resuming your government-mandated house arrest with these lovely people.
Under all of these circumstances, Best Buy (BBY) was there with the consumer electronics needed to get things done when Covid locked things down. The reliance on technology has led to 14 straight quarters of positive surprises for the company, including a beat of more than 56% in its recently released fiscal second quarter.
BBY is part of the Retail – Consumer Electronics space, which means it is in the top 13% of the Zacks Industry ranking. The company focused on developing its omnichannel capabilities, improving the supply chain, and cost containment efforts. It really pays off!
Earnings per share reached $ 2.98 in its fiscal second quarter, which was more than $ 1 above Zacks’ consensus estimate.
Business revenue jumped nearly 20% to $ 11.85 billion, from our expectations of $ 11.6 billion. Sales of Enterprise Comp increased by the same percentage. The main drivers of the quarter were IT, mobile phones, home theaters, appliances and services.
Best of all, BBY expects continued customer demand and strong momentum. In fact, he now sees comparable company sales increasing between 9% and 11% for fiscal 2022, compared to the previous outlook of 3% to 6%.
Zacks’ consensus estimate for this fiscal year (ending January 2022) is $ 9.95, which is up 16.9% in just two months. The expectation for next year (end of January 2023) is only $ 9.54, up 9.3% in two months but down year over year. However, there is a lot of time for this to improve as consumers are unlikely to throw away their computers, TVs, and gaming systems in the future.
Image source: Zacks Investment Research
Zacks names “the best single pick to double”
Among thousands of stocks, 5 Zacks experts each chose their favorite to soar + 100% or more in the coming months. Of these 5, research director Sheraz Mian chooses one to have the most explosive advantage of all.
You’ve known this company from its past glory days, but few would expect it to be ready for a monster turnaround. Fresh out of a successful repositioning and flush with A-List celebrity mentions, it could rival or overtake other recent Zacks stocks which are expected to double as Boston Beer Company which climbed + 143.0% in just a bit. more than 9 months and Nvidia which climbed + 175.9% in a year.
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