For immediate release
Chicago, IL – July 8, 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: Greif, Inc. GEF and Phillips 66 PSX.
Here are highlights from Thursday’s analyst blog:
What to buy when the markets are selling
In theory, most of us know that we’re supposed to sell when everyone else is buying and buy when they’re selling. At least that’s how long-term investors are known to trade successfully. Day traders might do the opposite: ride the wave in a rising market and cut losses in a falling market. And there are a number of strategies in between.
But when inflation isn’t expected to improve anytime soon, when every analyst and their grandmother tells you that corporate earnings are about to shrink, when the size of your own portfolio has shrunk dangerously, and when prices gasoline and supermarkets tell you that you have to be careful, losing your temper is natural. But that doesn’t mean you have to give in to feeling.
There’s no one right way to deal with uncertainty, so your personal situation plays a big role. How much can you reasonably save? How long are you willing to stay invested? Are you able to take calculated risks? And so on.
Regardless of your answers to the questions above, one factor that should play a role in the selection process is assessment. In a bear market, many stocks (even growth stocks) fall below their intrinsic value. So there are more choices. If the stock you’re watching is still expensive, it might be a good idea to wait. After all, we are going to see more rate hikes. And the results season should be without interest. So lots of opportunities to push back further.
It also doesn’t hurt to pick stocks that pay a dividend. Even if you make a mistake in the selection process (as we all do sometimes), the dividend is a bit like a buffer. Take the money or reinvest it, depending on your needs.
One way to pick stocks based on the dividends they pay is to divide the annual dividend by the price you pay. So, for example, if you pay $100 for a stock and the dividend is $5, you get a return of 5/100, or 5%. Naturally, the higher the return, the more likely you are to win.
Generally, it is the most mature companies that pay a dividend. And this is the type of business you better choose. Because if you want your revenue stream to sustain over a longer period of time, it makes sense to select companies that have been around longer and therefore have more experience in downturns.
They are also likely to be more disciplined in their approach to generating revenue and returning shareholder value. Here are some examples-
Greif, Inc. has a Zacks #1 rating (strong buy) and value, growth, and momentum scores of A, B, and B, respectively (so good, whatever your risk appetite).
The container – paper and packaging industry to which Greif belongs is among the 26% of industries ranked by Zacks, which increases the possibility of its upside potential. You can see more details about why this industry is so attractive in this article.
Analysts are also bullish on its outlook, raising their estimates for 2022 and 2023 by 17% and 7%, respectively, over the past 30 days.
The stock is trading at 8.04X forward earnings, 0.46X forward sales and a PEG of 0.87. All of these numbers compare favorably to the S&P 500 as well as its own median level over the past year. The shares are therefore rather cheap.
Greif’s dividend yields 3.00%.
Another stock that looks pretty good based on these criteria is Phillips 66. The stock carries a Zacks rank of No. 1 and has value, growth, and momentum scores of B, A, and A, respectively.
There is a very good reason why the Oil and Gas – Refining and Marketing industry to which it belongs is currently in the top 2% of Zacks ranked industries. Oil prices are still very high.
Although recent swings have raised concerns about investing in the sector (as economic downturns usually drag oil down), there is currently significant unmet demand, particularly in Europe. With Russian production on the way out, OPEC production insufficient to fill the void and winter storage on everyone’s mind, it doesn’t look like demand will drop any time soon.
Revisions to analysts’ estimates support this thesis. Phillips’ estimate for 2022 is on a steady upward trajectory for a combined 45% increase over the past 60 days. The 2023 estimate moves in a similar fashion, up 15%.
The stock trades at a forward P/E of 7.13X, a P/S of 0.28X and a PEG of 0.62, all of which are below the S&P 500 and the respective median levels of the past year. .
Phillips’ dividend yields 4.88%.
Zacks names ‘only one best choice for doubling up’
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.
It’s a little-known chemical company that’s up 65% year-on-year, but still very cheap. With relentless demand, rising earnings estimates for 2022 and $1.5 billion for stock buybacks, retail investors could step in at any time.
This company could rival or surpass other recent Zacks stocks that are expected to double, such as Boston Beer Company which jumped +143.0% in just over 9 months and NVIDIA which jumped +175.9% in one. year.
Free: See our best stock and our 4 finalists >>
Zacks Investment Research
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Past performance is not indicative of future results. The potential for loss is inherent in any investment. This document is provided for informational purposes only and nothing herein constitutes investment, legal, accounting or tax advice, or a recommendation to buy, sell or hold any security. No recommendation or advice is given as to whether any investment is suitable for any particular investor. It should not be assumed that investments in the securities, companies, sectors or markets identified and described have been or will be profitable. All information is current as of the date hereof and is subject to change without notice. The views or opinions expressed may not reflect those of the company as a whole. Zacks Investment Research does not engage in investment banking, market making or asset management of securities. These returns come from hypothetical portfolios composed of stocks with Zacks Rank = 1 that have been rebalanced monthly without transaction fees. These are not the returns of actual stock portfolios. The S&P 500 is an unmanaged index. Visit https://www.zacks.com/performance for more information on the performance figures displayed in this press release.
Just Released: Zacks Top 10 Stocks for 2022
In addition to the investment ideas discussed above, would you like to know our top 10 picks for all of 2022?
From its creation in 2012 to 2021, the Zacks Top 10 Stocks portfolios gained an impressive +1,001.2% vs. +348.7% for the S&P 500. Now our research director has combed through 4,000 companies covered by the Zacks Ranking and selected the top 10 tickers to buy and keep. Don’t miss your chance to enter…because the sooner you do, the better your chances of winning.
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Greif, Inc. (GEF): Free Stock Analysis Report
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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.