11.01.2021 Zacks.
com
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Contents
Overview
Baidu (BIDU)
FedEx (FDX)
JPMorgan Chase & Co. (JPM)
Rocket Companies (RKT)
Construction Partners (ROAD)
Sterling Construction (STRL)
Williams-Sonoma, Inc. (WSM)
Note to Reader
What To Do Next
Overview
The predictive ability of the Zacks Rank cannot be denied. In fact, since 1988, if
you invested in Zacks Rank #1 stocks, you would have averaged a gain of
+24.8% per year.*
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Now, in this report, you'll receive highlights on 7 stocks from the more than 200
companies that compose the coveted Zacks #1 Rank List. Remember only 5% of
all stocks covered by the proprietary Zacks Rank system have the promise and
potential to beat the market in the next 30 days like these Strong Buy stocks.
Inside this report, you'll discover the company financials, earnings data and
analysis of these 7 promising companies.
Baidu
(BIDU)
Baidu (BIDU) announced its
Q3 report last month, which
inspired analysts to raise
estimates and upgrade their
outlooks as several
business transitions were
gaining traction.
Earlier this month, the stock
went on a 5-day tear,
breaking above $150 and surging to $186 in big volume. The big catalyst on
Dec 15 that moved shares 14% from $163 to $186 was a story in Reuters about
Baidu in talks with several electric vehicle (EV) manufacturers in China to build
their own next-gen EVs.
Since Baidu has deep experience with both artificial intelligence (AI) systems and
ADAS (advanced driver assistance systems) that supply Volkswagen, Toyota and
Ford; the speculation about the company making a deeper push into the auto
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industry really ignited some investor interest. Bottom line on Baidu: The
transformation into an AI powerhouse is real and streaming/social deals won't
determine the fortunes of BIDU.
And now would you like to see all of today's Zacks Rank #1 Strong Buys?
Click here »
FedEx
(FDX)
FedEx (FDX) is the leader in
global express delivery
services with massive
expansionary opportunities
as businesses go online.
The company has healthy-
looking financials with
more than $8.3 billion in
cash & equivalents, swelling
free-cash-flows, which topped $1 billion in each of the past two quarters, and a
debt-to-total capital of 53%.
The company has an enormous amount of financial flexibility for organic growth
projects and synergy-driving acquisitions. Sixteen out of 21 analysts are calling
FDX a buy with no sell ratings. FedEx has some strong tailwinds going into
2021, including continued growth opportunities from TNT Express and its
synergy-driving integration, the e-commerce explosion, as well as a resurgence
in B2B operations as the economy comes back to normality.
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And now would you like to see all of today's Zacks Rank #1 Strong Buys?
Click here »
JPMorgan
Chase & Co.
(JPM)
JPMorgan Chase & Co. (JPM)
is a global financial services
firm with assets of $3.2
trillion. It operates in
investment banking,
financial services for small
businesses and consumers,
commercial banking,
financial transaction processing and asset management.
On Oct 13, JPMorgan reported its third quarter results and blew by the Zacks
Consensus Estimate by 24.3%. It reported earnings of $2.92 versus the Zacks
Consensus of $2.35. The company saw revenue of $29.9 billion, which was flat
year over year.
JPMorgan is scheduled to report its fourth quarter results on Jan 15, 2021. It is
among the Dow components that leads off earnings season every quarter.
Analysts are getting bullish heading into the report. Over the last month, they
raised 2020 full year estimates and Q4 estimates. But analysts are getting
bullish about 2021 as well. It's also encouraging that estimates are being raised
just ahead of the next earnings report.
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And now would you like to see all of today's Zacks Rank #1 Strong Buys?
Click here »
Rocket
Companies
(RKT)
Rocket Companies (RKT) is
a holding company
consisting of personal
finance and consumer
service brands.
The company went public in
August and saw a quick
rally in share price, but has since retreated to just barely above the offering
price of $18/share. Despite the fact that the housing market is extremely
healthy and historically low interest rates mean that there are millions of
customers who would benefit from refinancing, investors are giving RKT a 12-
month forward P/E Ratio of just 6X. That's much lower than the S&P 500 at 28X.
Earnings estimates have been rising lately. The continued growth in the housing
markets and opportunities to refinance existing properties to save money will
keep mortgage customers showing up. In an environment in which people prefer
online transactions to those that are conducted in-person, an efficient operation
like Rocket ought to thrive. With a rock-bottom valuation and a sustainable and
scalable advantage over old-fashioned lenders, Rocket Companies is poised to
exceed expectations for the foreseeable future.
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And now would you like to see all of today's Zacks Rank #1 Strong Buys?
Click here »
Constructio
n Partners
(ROAD)
Construction Partners
(ROAD), a civil
infrastructure company,
engages in the construction
and maintenance of
roadways across Alabama,
Florida, Georgia, North
Carolina, and South
Carolina.
The company, through its subsidiaries, provides various products and services
to public and private infrastructure projects, with a focus on highways, roads,
bridges, airports, and commercial and residential developments.
The reason for its status as a Zacks Rank #1 (Strong Buy) lies in the recent
upside earnings estimate revisions coming from analysts on Wall Street. Over the
last 30 days, four analysts have increased their earnings estimates for the
current year, while one analyst has increased estimates for next year. The bullish
sentiment has pushed up our Zacks Consensus Estimate for the current year
from 80 cents to 91 cents while next year's number has gone from 91 cents to
$1.04.
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And now would you like to see all of today's Zacks Rank #1 Strong Buys?
Click here »
Sterling
Constructio
n
(STRL)
Sterling Construction (STRL)
is a construction name that
engages in heavy civil
construction, specialty
services, and residential
construction activities
primarily in the southern United States.
The last four quarters have seen two beats and two misses. The last two
quarters were the beats… and they were bigger than the misses.
There is a 17% average positive earnings surprise over the last year. The full year
earnings number has moved from $1.50 to $1.55. Next year is looking at $1.88
with an 8 cent increase over the last 60 days. The Zacks Rank is most heavily
impacted by the increase or decrease of the annual earnings estimates.
Operating margins are steadily improving for STRL, but they are somewhat thin.
If we see margin expansion, this stock could run.
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And now would you like to see all of today's Zacks Rank #1 Strong Buys?
Click here »
Williams-
Sonoma,
Inc.
(WSM)
Williams-Sonoma, Inc.
(WSM) is a multi-channel
specialty retailer of
premium quality home
products. Its brand
portfolio consists of Pottery
Barn, West Elm, Pottery Barn Kids & Teen, Mark and Graham, and the namesake
Williams-Sonoma.
Last month, the company posted better-than-expected third quarter results.
Total comparable sales jumped 24.4% and e-commerce sales, which now make
up roughly half of the company's revenue, jumped 49% (and contributed almost
70% of total sales). Overall revenue increased 22.4% to $1.77 billion, and
adjusted EPS of $2.56 easily beat expectations of $1.53.
For the current fiscal year, eight analysts have revised their bottom-line estimate
upwards in the last 60 days, and the Zacks Consensus Estimate has moved up
from $6.38 per share to $8.19 per share. Earnings are expected to see double-
digit growth for the current fiscal year, up nearly 70%. Looking ahead, WSM
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declined to give guidance for the current holiday quarter, but still expects
annual revenue growth in the mid to high single digits.
And now would you like to see all of today's Zacks Rank #1 Strong Buys?
Click here »
Note to Reader
In addition to our 7 Best, you can see each day's full,
updated list of 220 Zacks Rank #1 Strong Buy stocks
free of charge.
This is the list that has more than doubled the S&P 500 from January 1, 1988
through November 30, 2020 with an average gain of +24.8% per year. It's a
great place to start your stock search. Plus you can also access our full list of
must-avoid Strong Sells and other private research not available on [Link].
See the stocks free »
What To Do Next
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In addition to the hand-selected picks included in
this special report, you can move yourself way ahead
of the crowd in any market environment with the
following:
As part of this free report, you will now receive our free daily e-newsletter,
Profit from the Pros. Each morning, Executive Vice President Kevin Matras will
summarize the market, what it means for investors and what to do next. Plus
you get links to articles featuring some of our top stock, ETF and mutual fund
recommendations. Be sure to look for it in your email inbox before the
markets open every day.
Now you should bookmark our homepage to take advantage of one of the
most complete investment websites around.
Go there now: [Link]
Disclaimer
Copyright 2021 Zacks Investment Research
This Special Report has not been authorized, sponsored, or otherwise approved or endorsed by the
companies represented herein. Each of the company names represented herein are trademarks of JPMorgan
Chase & Co.; FedEx Corporation; Rock Holdings Inc.; Baidu, Inc.; Construction Partners Inc.; Sterling
Construction Company Inc.; Williams-Sonoma, Inc.
[Link] provides investment resources and informs you of these resources, which you may choose to
use in making your own investment decisions. Zacks is providing information on this resource to you
subject to the Zacks "Terms and Conditions of Service" disclaimer. [Link]/disclaimer.
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*Past performance is no guarantee of future results. Inherent in any investment is the potential for loss.
This material is being provided for informational purposes only and nothing herein constitutes investment,
legal, accounting or tax advice, or a recommendation to buy, sell or hold a security. No recommendation or
advice is being given as to whether any investment is suitable for a particular investor. It should not be
assumed that any investments in securities, companies, sectors or markets identified and described were or
will be profitable. All information is current as of the date of herein and is subject to change without notice.
Any views or opinions expressed may not reflect those of the firm as a whole. Zacks Investment Research is
not a licensed securities dealer, broker or US investment adviser or investment bank. The Zacks #1 Rank
Performance covers a period beginning on January 1, 1988 to November 30, 2020. These returns are from
hypothetical portfolios consisting of stocks with Zacks Rank #1 that were rebalanced monthly (see
additional details regarding rebalancing below) with zero transaction costs. These are not the returns of
actual portfolios of stocks. Zacks Rank #1 stock-rating system returns are computed monthly based on the
beginning of the month and end of the month Zacks Rank #1 stock prices plus any dividends received
during that particular month. A simple, equally-weighted average return of all Zacks Rank #1 stocks is
calculated to determine the monthly return. The monthly returns are then compounded to arrive at the
annual return. Only Zacks Rank #1 stocks included in Zacks hypothetical portfolios at the beginning of each
month are included in the return calculations. Zacks Rank #1 stocks can, and often do, change throughout
the month. Certain Zacks Rank #1 stocks for which no month-end price was available, pricing information
was not collected, or for certain other reasons have been excluded from these return calculations. The S&P
500 is an unmanaged index. Visit [Link]/performance for information about the performance
numbers displayed above.
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