For Immediate Release
Chicago, IL – August 29, 2016 – Zacks Equity Research highlights Lantheus Holdings (LNTH) as the Bull of the Day and POSCO ( PKX) as the Bear of the Day. In addition, Zacks Equity Research provides analysis on Tempur Sealy International (TPX), Tyson Foods (NYSE:TSN) ( TSN) and Clorox Company (NYSE:CLX) (CLX).
Here is a synopsis of all five stocks:
Lantheus Holdings (LNTH) isn't exactly a household name. In fact, I am betting that this stock is flying well under the radar for most investors. There are a few things that stick out to me for this play as a good long term investment and there are a few that are more short term in nature. Either way you cut it LNTH is looking good to me.
First let me list the positives I see with this stock and then we can go over the normal attributes that have made this Zacks Rank #1 (Strong Buy) stock the Bull of the Day.
Why I Like It
This is a small cap stock in a "risk on" environment.
Small cap stocks have been out-performing of late.
Revenue trends are pointing to continued sequential growth.
5 straight beats of the Zacks Consensus Estimate.
Room for multiple expansion (trades at 14x forward earnings as compared to 22x industry average).
Follow Brian Bolan on twitter at @BBolan1 and on StockTwits at the same address.
The Recent Numbers
LNTH beat the Zacks Consensus Estimate of $0.06 when it reported $0.24 in the first week of August. This $0.18 beat was good for a 300% positive earnings surprise.
The topline was also impressive with the company delivering $78M in sales when the Zacks Consensus Estimate was looking for $73M. That $5M beat was good for a 7.25% positive revenue surprise.
I mentioned the idea of sequential revenue growth as one of the reasons I like this stock. Last year the company recorded revenues of $75M in the March quarter and then posted $73M in the June quarter. That isn't what gets me excited and isn't growth, it is contraction. This year the March quarter saw $76M while the June quarter was $78M. So where there was contraction last year, this year we have expansion.
Description
LNTH is in the medical products industry and they sell products in the diagnostic imaging space. Roughly half the sales come from DEFINITY which helps doctors when looking at echocardiograms. The basic idea is the aging population is going to the doctor’s office a lot more and this helps identify problems, or rather, show that there aren’t health problems (hopefully).
POSCO (PKX) is formerly known as Pohang Iron & Steel Company and is now a Zacks Rank #5 (Strong Sell) and is the Bear of the Day.
Description
POSCO, formerly known as Pohang Iron & Steel Company Ltd., manufactures hot and cold rolled steel products, heavy plate and other steel products for the construction and shipbuilding industries.
Estimates
The Zacks Consensus Estimate has been falling over the last few months. The FY16 estimate stood at $3.59 in June and dropped in July to $3.24.
Next year has also seen a move lower in estimates with the 2017 Zacks Consensus Estimate moving from $5.33 in June to the current level of $4.83.
Additional content:
3 “Boring” Stocks to Buy Right Now
Part of the reason why we always seem to be talking about certain companies is the excitement that comes from their innovation and design. However, these factors simply don’t guarantee performance. Sometimes the best stocks are the boring ones.
With that said, I set out to find some of these boring stocks on the Zacks Stock Screener. I wanted to find stocks with strong Zacks Ranks, strong Style Scores, and other signs of being able to outperform the market soon. Unfortunately, our Stock Screener doesn’t have a “Boring” filter, but I used my own judgement while parsing through the results.
Using this technique, I was able to find a few stocks with solid metrics that wouldn’t typically get investors riled up. Check out these three “boring” stocks below:
1. Tempur Sealy International (TPX)
I wanted to put this one first because it’s the easiest of the boring-related jokes to make. Tempur Sealy, a leading developer of mattresses and bedding products, is so boring it will literally put you to sleep! In all seriousness, I mean no disrespect to Tempur Sealy. This Zacks Rank #1 (Strong Buy) crushed our earnings estimate by over 35% last quarter, and analysts have been scrambling to adjust their future estimates upwards.
The Zacks Consensus Estimate for Tempur Sealy’s current-quarter earnings has gained eight cents in the past 30 days. With a VGM score of “B” and a position in the top 30% of the Zacks Industry Rank, this stock promises to provide excitement by way of profits!
2. Tyson Foods (TSN)
Tyson Foods is the world’s largest fully-integrated producer of chicken and poultry-based food products. Although I am personally a big chicken eater, I will be the first to admit that there are very few foods less exciting than bland, white chicken. Nevertheless, Tyson Foods currently holds a Zacks Rank #1 (Strong Buy) and the company is potentially looking at earnings growth of 43% this year.
This stock has been on fire lately, with shares gaining over 41% on the year. On top of this, Tyson has a VGM score of “A” and it falls into a category of food producers that currently sits in the top 6% of the Zacks Industry Rank.
3. Clorox Company (CLX)
Although the Clorox Company is one of the most recognizable names in its industry, at its core it’s still basically a soap company. Clorox is best known for its namesake bleach and cleaning products, and the company owns other household brands such as Pine-Sol, Burt’s Bees, and Formula 409.
Nevertheless, Clorox should be exciting to investors right now. It is currently a Zacks Rank #2 (Buy) after seeing eight positive earnings estimate revisions within the past 30 days. In that time, the Zacks Consensus Estimate for its full-year earnings has gained 23 cents and currently reflects growth of 12% year-over-year.
Bottom Line
Yes, I know… gizmos and gadgets and crazy technology is fun. That’s why we all want to invest in self-driving cars and whatever the next Silicon Valley startup is. Sometimes, however, we have to invest in the boring stuff because it’s going to make us money. Regardless of what these companies do, they are doing it well right now, and all of these stocks could very well be headed for further success.
About the Bull and Bear of the Day
Every day, the analysts at Zacks Equity Research select two stocks that are likely to outperform (Bull) or underperform (Bear) the markets over the next 3-6 months.
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LANTHEUS HLDGS (LNTH): Free Stock Analysis Report
POSCO-ADR (PKX): Free Stock Analysis Report
TEMPUR SEALY (TPX): Free Stock Analysis Report
TYSON FOODS A (TSN): Free Stock Analysis Report
CLOROX CO (CLX): Free Stock Analysis Report
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