For Immediate Release
Chicago, IL – April 10, 2017 –Zacks Equity Research highlights Radiant Logistics (NYSEMKT: RLGT – Free Report ) as the Bull of the Day, Valspar Corporation (NYSE: VAL – Free Report ) as the Bear of the Day. In addition, Zacks Equity Research provides analysis on Raytheon (NYSE: RTN – Free Report ), Rolls Royce Holdings (OTCMKTS: RYCEY – Free Report ) and Huntington Ingalls (NYSE: HII – Free Report ).
Here is a synopsis of all five stocks:
Radiant Logistics (NYSEMKT:RLGT – Free Report ) rallied on Friday with volume that was approaching twice the normal amount. Before the close I looked back at the last five trading days and I saw this stock up ~13% for the week, but that should be no surprise for a stock that has a Zacks Rank #1 (Strong Buy) and a Growth Style Score of ‘A.’ Today, RLGT is the Bull of the Day.
Low Priced Mover
I recently published a strategy piece that talks about using a wider net to catch more winners. You can read more about that here: https://www.zacks.com/stock/news/255761/a-wider-net-catches-more-winners?cid=EC-EFA-255761-FA1-A - and I bring that up because this stock would fall in that net. It is a low priced stock that has the growth and the Zacks Rank that we are looking for.
Description
Radiant Logistics, Inc. operates as a third-party logistics company, providing multi-modal transportation and logistics services.
Earnings
The earnings history for RLGT isn’t the greatest I have ever seen, but I love what the most recent report looked like. The company reported EPS of $0.10 when the Zacks Consensus Estimate was calling for only a penny. That 9 cent beat was good for a 900% positive earnings surprise.
The topline came in ahead of expectations by $9M or about 5% ahead of expectations. The end result of such a solid beat was the stock launching higher by 19% in the session following the release.
The Valspar Corporation (NYSE:VAL – Free Report ) has missed the Zacks Consensus Estimate in four of the last five quarters and a recent decline in earnings estimates has pushed the Zacks Rank down to the lowest rating. Today VAL is the Bear of the Day.
Description
Valspar is a global leader in the paint and coatings industry.
Acquisition
The company announced that it was going to be acquired bySherwin-Williams ( SHW – Free Report ) for $113 per share or about $11.3B on March 21, 2016.
Earnings Misses
The company has missed the Zacks Consensus Estimate in four of the last five quarters including two straight misses. The most recent miss came on March 8 with the company reporting earnings of $0.52 when the Zacks Consensus was calling for $0.74.
Estimates
The 2017 Zacks Consensus Estimate has slide from $5.29 in November to $4.92 in February and is now at $4.49.
There has been a similar move in 2018 projections even as the company will likely be part of SHW by then. Still, those moves lower in earnings estimates are what drive the Zacks Rank.
Additional content:
What Does This Syrian Missile Strike Mean for Stocks?
In the last few days, we have had a set of players make moves inside the new U.S. administration. And that is playing out in the arena of foreign affairs today.
Last week, the U.S. Secretary of State, a former oil company CEO, stated that Syria’s fate was going “to be decided by the Syrian people.” Unfortunately, that was diplomatic language interpreted by the dictator Assad as a green light. He went ahead and issued the order for an egregious chemical weapons air strike on his own people.
At the same time this was happening, the new head of the National Security Council, H.R. McMaster, won an important battle to staff that critical function with its standard role players. This took that internal White House function up in importance -- and immediately restored a more traditional tone to this nation’s foreign policymaking.
Today, we woke to the good news of a targeted strike on the Syrian air base that had sent the planes to do the chemical weapons strike.
This is a measured, immediate military response that will now undergird a fresh round of behind the scenes diplomacy, both by the U.S. and its allies.
All of this is, in fact, good news.
Which is why the U.S. and global stock markets sold off in a knee jerk reaction at first. But by early morning, had recovered to trading flat. That says traders are comfortable with the approach taken by the U.S., which is clearly being directed by the newly reconstituted National Security Council; and the former Marine at the head of the Defense Department, James Mattis.
Today, we also got a muddle-through print on the U.S. nonfarm jobs reports. A +98K monthly number sounds low. But it came tied to a 4.5% unemployment rate. While a lagging indicator, this was showing more underlying progress is being made by the U.S. economy. All in all, a mixed bag of data is no “new” news on the macro front. Again, we see no response from the broader stock market.
In sum, I think traders and equity investors generally -- and frankly U.S. citizens and citizens of the world -- should breathe a big sigh of relief. The new inexperienced President has taken the right steps here. He has been guided by the experienced hands, who are now fully empowered, and being listened to.
That is all good news, coming from this economist.
My more specific stock picks for looking into trading activity, on this moment of foreign affairs—
Note first: In this Syrian air strike, two U.S. warships located in the eastern Mediterranean launched 59 Tomahawk cruise missiles. So these 3 stocks are worth looking into:
(1) Raytheon (NYSE:RTN – Free Report ) currently makes these missiles. There will be a need for re-supply of the missiles shot. The stock was up about +1% intraday.
(2) Take a look at Rolls Royce Holdings (OTCMKTS: RYCEY – Free Report ), which is a higher Zacks #2 Ranked (BUY) competitor, based in the U.K. It is also a sound long-term play, with a Zacks VGM score of A. The U.K. typically follows the U.S. in on these types of missions. The stock was up +0.8% intraday.
(3) A final stop may be Huntington Ingalls (NYSE: HII – Free Report ). They are the primary building of U.S. warships, like the ones that shot the Tomahawk missile. This stock was up +2.0% intraday.
That says it all. The U.S. Navy may be the biggest winner here.
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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Continuous analyst coverage is provided for a universe of 1,150 publicly traded stocks. Our analysts are organized by industry which gives them keen insights to developments that affect company profits and stock performance. Recommendations and target prices are six-month time horizons.
Strong Stocks that Should Be in the News
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Radiant Logistics, Inc. (RLGT): Free Stock Analysis Report
Valspar Corporation (The) (VAL): Free Stock Analysis Report
Raytheon Company (NYSE:RTN
Huntington Ingalls Industries, Inc. (HII): Free Stock Analysis Report
Rolls-Royce (LON:RR
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