Month: December 2017

Small-cap stocks, which were the laggards in the first half of the year, staged a nice comeback in the second half on tax reform optimism and accelerating economy. Tax Reform After struggling its way out from the House and the Senate, the tax bill finally got through Congress and the White House with President Donald Trump’s signature. The corporate tax cut from 35% to 21% is a big boon to small-cap stocks. […]

The semiconductor industry has been one of the outperformers of 2017. Notably, the iShares PHLX Semiconductor ETF SOXX , which represents semiconductor stocks, has witnessed a year-to-date (YTD) gain of approximately 38.9%, while the Technology Select Sector SPDR ETF XLK , which represents the overall technology sector, has returned 32.6% during the same time period. This gain is way higher than the YTD returns of 19.7% and 28.9%, respectively clocked by the S&P 500 and Nasdaq Composite […]

Insys Therapeutics, Inc. 's INSY shares increased more than 15% on Dec 26 after the company announced that its investigational cannabidiol (CBD) oral solution has been granted a fast track designation by the FDA for treatment of Prader-Willi syndrome. The company plans to move the candidate into clinical development late in the first quarter of 2018. […]

On Dec 26, we issued an updated research report on Citrix Systems, Inc . CTXS . The stock has been downgraded to a Zacks Rank #4 (Sell) from a Zacks Rank #3 (Hold). […]

The U.S. apparel industry, one of the largest in the global market, is segregated by Zacks in Retail – Apparel and Shoes and Textile – Apparel . The basic difference in this classification is that the first one includes apparel retailers, while the second comprises apparel manufacturers. […]

Zions Bancorporation ZION seems to be a solid bet now, based on strong fundamentals and good growth prospects. Easing margin pressure, restructuring initiatives and efficient cost control position the company well for growth. […]

The chapter of 2017 is about to conclude, and it reads as an eventful year for stock market based on encouraging economic indicators and improved corporate results. Before we kick off 2018, retailers have some more good news to cheer about. The latest addition to the streak of encouraging economic indicators is the holiday season sales data from Nov 1 to Dec 24, 2017, reflecting an increase in consumer spending […]

The infamous medical device excise tax will be back in effect starting Jan 1, 2018. The 2.3% medical device tax dealt a heavy blow to the U.S. MedTech space, since its enactment in 2013. […]

The Hershey Company’s HSY cost-cutting initiatives and productivity investments serve as effective hedges to a weak top-line performance. The company has been witnessing sluggish sales growth owing to changing consumer shopping habits, intense competition from the broader snacking environment in the United States and soft international sales. In 2016, sales increased a meager 0.7%, while the first nine months of 2017 saw a rise of only 1.9% […]

Integrated energy stocks have been flying high on elevated oil prices, driven by robust global demand and tight supplies. The resurgence in oil prices on the one hand and strong cash flow from operations on the other helped the sector. Riding on the momentum, shares of oil majors such as Chevron Corporation CVX and Royal Dutch Shell plc RDS.A hit their 52-week high levels on Tuesday. […]

We find Alamo Group, Inc. ALG a solid choice for investors seeking exposure in the machinery space. […]

In a bid to revive its declining business beleaguered Mallinckrodt plc MNK announced plans to acquire Sucampo Pharmaceuticals SCMP . Details of the Deal Mallinckrodt, will commence a cash tender offer to purchase the outstanding shares of Sucampo's common stock for $18.00 per share. The total transaction value, including Sucampo's debt is approximately $1.2 billion. […]

On Dec 26, we issued an updated research report on Washington Federal WAFD . The company is well positioned to benefit from continued improvement in loan balances and a rising rate scenario. […]

From the vast universe of investment management stocks, today we chose AllianceBernstein Holding L.P. AB for you to consider. The company offers a profitable investment opportunity based on steady earnings growth and strong fundamentals. […]

The last week saw gambling industry players Penn National Gaming Inc. PENN and Boyd Gaming Corporation BYD announcing buyouts. […]

Cboe Global Markets, Inc. CBOE remains well-poised for growth, banking on strength in proprietary products and solid market position. This Zacks Rank #3 (Hold) options exchange bears immense potential owing to a few good growth drivers. […]

The rising interest-rate environment and an aging real estate cycle have taken a toll on the performance of real estate investment trusts (REIT) in 2017. In fact, since the beginning of the year through Dec 22, 2017, the industry has underperformed the broader market, as indicated by the FTSE/NAREIT All REITs Index’s total return of 7.7% over this time frame versus the S&P 500’s 22.2% gain. In addition, the Fed’s recent decision to hike benchmark interest rates by a quarter point to a target range of 1.25-1.5% along with the tax reforms remain the biggest near-term challenges for REITs heading into 2018 […]