4 stocks ranked by buy that climbed more than 20% in the past week
The market remains on its toes as investors digest the ton of information that is now reaching us.
Perhaps most important in all of this is the rise in bond yields. The rise in yields is negative for stocks because they are considered risk-free investments. So when yields rise, it makes more sense for investors to get into safe bonds rather than risky stocks. Equities must therefore generate returns that are much higher than those returns to continue to attract investors.
But yields are increasing due to both growth and inflation. When they rise as a result of growth, cyclicals (sectors that rise and fall with the business cycle) generally do well. This is because in a growth environment, they generate greater cash flow and are able to pay more dividends, which provides a certain buffer to these stocks, i.e. makes them less risky. Restaurants, hotels, consumer discretionary, furniture, high-end / specialty retailers, automotive, etc. are part of this group.
Also, under inflationary conditions, investors need higher yields to offset the impact of inflation, so they would take money out of bonds, which would increase yields. Rising energy prices are a major cause of inflation. Oil is hitting $ 75 a barrel (WTI) or $ 79 (Brent) and natural gas prices are also on the rise.
We envision a much more expensive heating this winter, both for commercial operations and for individuals. This situation will not change anytime soon. In reality, Goldman Sachs sees Brent oil hit $ 90 by the end of the year due to the disruption of production due to Hurricane Ida.
So deciding on the right strategy is trickier now because we have a bit of both. And especially when you consider that the rising fuel costs will add to the rising input costs, making everything much more expensive for the consumer (when companies are able to transfer the surplus, as they do. ‘have done so far). There is also the concern that we are heading for higher taxes, but maybe that will last for a while.
More immediate is the conversation around the debt ceiling and what could happen if it is not raised (it has always been raised in the past and likely will be raised again) and the chances of a government shutdown. . It is unlikely to have a significant impact on stocks, but could increase volatility in the short term.
So there is too much going on at the moment. And it’s probably a good idea to look for safer bets with more or less regular earnings growth trends and an added dividend.
But in case you’re still looking for some outperforming products in the market, here are a few that really picked up over the last week. Take a look here-
Condor Hospitality Trust, Inc. CDOR
Condor Hospitality Trust, based in Norfolk, Va., Is a self-managed real estate investment trust specializing in the investment and ownership of upscale and upscale, premium brand select service, extended stay and limited service in the metropolitan top 100. Statistical areas, especially the top 20.
Condor’s hotels are franchised by a number of the industry’s most trusted brand families, including Hilton, Marriott and InterContinental Hotels. It currently has 15 hotels in 8 states.
On Thursday, the company struck a deal with affiliates of Blackstone Real Estate Partners to sell its entire hotel portfolio for $ 305 million. Since 60% of shareholders have already agreed to back the deal, there is no chance of a reversal.
Blackstone also assumes no debt, so the amount payable to shareholders will be payable after fulfilling legal obligations and paying related costs and expenses. The Board also approved the liquidation of the company pending shareholder approval.
The stocks have a Zacks Rank # 2 (Buy). The company had reported very strong results as a reopening coin with the only analyst covering the name also enthusiastically increasing estimates. And the projected double-digit revenue and profit likely helped the company close the deal. Shares have risen 25.9% over the past week.
Corvus Pharmaceuticals, Inc. CRVS
Corvus Pharmaceuticals, based in Burlingame, California, is involved in the development and commercialization of immuno-oncology therapies that harness the immune system to attack cancer cells. Its products include CPI-444, the adenosine production inhibitor, adenosine A2B antagonist and interleukin-2 (IL-2) inducible T kinase inhibitors (ITK).
Corvus is developing mupadolimab as a therapeutic for oncological indications as well as infectious diseases, including COVID-19. On Wednesday, the company published the results of the candidate’s Phase 3 clinical trial of COVID 19. A group of 40 patients received mupadolimab at doses of 2 mg / kg and 1 mg / kg and compared to a placebo.
The test established a dose-response relationship on the endpoint of time to respiratory failure or death, with no reported adverse events. The 2 mg / kg cohort was also shown to elicit an antiviral response in all variants tested, including delta.
Richard A. Miller, MD, Co-Founder, President and CEO of Corvus said, âCombined with the results of our previous Phase 1 trial in 29 patients, we believe there is growing evidence that mupadolimab could become a universal treatment for viral diseases, with the ability to treat immune evasion of variants. We plan to assess our next steps with mupadolimab for COVID-19 as we continue to analyze trial data and explore partnership opportunities to continue its development as a therapeutic. “
After three-quarters of lost earnings, the No.2-ranked company finally beat estimates in the last quarter. Analysts expect the loss per share to decline significantly in 2021 and again in 2022. Shares jumped 27.8% last week.
Covenant Logistics Group, Inc. CVLG
Covenant Logistics Group, based in Chattanooga, Tennessee, offers a portfolio of transportation and logistics services through its subsidiaries. The company’s services include the ability to load trucks on asset-based expedited, dedicated and irregular routes, as well as light warehousing, transportation management and freight brokerage. It also has a second-hand equipment sales and rental activity.
Its clients include transportation companies, such as parcel forwarders, part-lot carriers and third-party logistics providers, as well as traditional full-lot customers such as manufacturers, retailers and food and beverage shippers. . As of December 31, 2020, it operated 2,461 tractors and 5,647 trailers.
Zacks # 1 (Strong Buy) ranked CVLG stocks have grown steadily over the past year and are up 97.1% year to date. Last week’s 21.7% appreciation was a continuation of that trend and may have been spurred on by a Cowen analyst who raised the estimated price target based on CVLG’s pricing power.
The trucking industry is currently experiencing huge demand as traditional manufacturers and retailers react to the reopening, even though last mile e-commerce demand remains high. As drivers are scarce, trucking companies are also limited in capacity. A combination of these factors is responsible for the pricing power.
And so we see that CVLG has beaten estimates at high double-digit rates in each of the last two quarters. It is expected to increase revenues by 18.2% and profits by 217.6% this year and there is more growth expected for next year. Its estimates are also on an upward trajectory.
Herc Holdings Inc. HRI
Herc Holdings, headquartered in Bonita Springs, Fla., Through its subsidiary Herc Rentals, is a full-service rental provider in the areas of commercial and residential construction, industry and manufacturing, refineries and petrochemicals, civil infrastructure, automotive, government and municipalities, energy, sanitation, emergency response, facilities, entertainment and agriculture. It operates primarily in North America.
On its analyst day last week, the No.1-ranked company raised its 2021 Adjusted EBITDA expectations from $ 840 million to $ 870 million to $ 870 million to $ 890 million. Even more encouraging was the 2022 Adjusted EBITDA forecast of $ 1.05 billion to $ 1.15 billion.
Naturally, this led to estimate revisions for both years. And so, Zacks’ consensus estimate for 2021 jumped 54 cents (7.6%) while the 2022 estimate jumped $ 3.26 (37.6%).
The economic recovery that we are seeing has been clearly positive for the company given the positive surprises it has recorded in each of the last four quarters, with an average of 120.4%.
Shares jumped 24.1% over the past week.
Price performance over one month
Image source: Zacks Investment Research
5 actions in the process of doubling
Each was selected by a Zacks expert as the # 1 favorite stock to earn + 100% or more in 2021. Previous recommendations climbed + 143.0%, + 175.9%, + 498.3% and + 673.0%.
Most of the stock in this report is flying under Wall Street’s radar, which provides a great opportunity to get into the ground floor.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.