Advertisement
U.S. markets closed
  • S&P 500

    5,254.35
    +5.86 (+0.11%)
     
  • Dow 30

    39,807.37
    +47.29 (+0.12%)
     
  • Nasdaq

    16,379.46
    -20.06 (-0.12%)
     
  • Russell 2000

    2,124.55
    +10.20 (+0.48%)
     
  • Crude Oil

    83.11
    -0.06 (-0.07%)
     
  • Gold

    2,254.80
    +16.40 (+0.73%)
     
  • Silver

    25.10
    +0.18 (+0.74%)
     
  • EUR/USD

    1.0793
    0.0000 (-0.00%)
     
  • 10-Yr Bond

    4.2060
    +0.0100 (+0.24%)
     
  • dólar/libra

    1.2636
    +0.0014 (+0.11%)
     
  • USD/JPY

    151.2160
    -0.1560 (-0.10%)
     
  • Bitcoin USD

    69,804.48
    -1,359.38 (-1.91%)
     
  • CMC Crypto 200

    885.54
    0.00 (0.00%)
     
  • FTSE 100

    7,952.62
    +20.64 (+0.26%)
     
  • Nikkei 225

    40,369.44
    +201.37 (+0.50%)
     

The Zacks Analyst Blog Highlights: Unilever, Associated British Foods, RELX, Pearson and BT Group

For Immediate Release

Chicago, IL – May 11, 2017 – Zacks.com announces the list of stocks featured in the Analyst Blog. Every day the Zacks Equity Research analysts discuss the latest news and events impacting stocks and the financial markets. Stocks recently featured in the blog include Unilever PLC (NYSE: UL – Free Report ), Associated British Foods plc (OTCMKTS: ASBFY – Free Report ), RELX PLC (NYSE: RELX – Free Report ), Pearson plc (NYSE: PSO – Free Report ) and BT Group plc (NYSE: BT – Free Report ).

Today, Zacks is promoting its ''Buy'' stock recommendations. Get #1Stock of the Day pick for free .

Here are highlights from Wednesday’s Analyst Blog:

Britain's Economy Recovers: 5 Stock Picks

Even as the country was preparing for national elections and the commencement of Brexit talks, Britain’s rate of growth slowed sharply in the first quarter. This could not have come at a worse time since it was economic resilience which had bolstered the country in the aftermath of last year’s surprise Brexit vote.

However, data released immediately after the GDP report depict a brighter economic picture. Gains in manufacturing, services and construction signal all-around economic improvements. Additionally, a closer look at GDP data indicates that the situation is not as bad as it seems. This is why it makes good sense to invest in British stocks at this time.

Data on Services, Manufacturing, Construction Improve

Last week, data released by IHS Markit showed that its services PMI for Britain increased from the level of 55.0 recorded in March to 55.8 in April. This was the sharpest pace of growth experienced in four months and is well ahead of the pace experienced for much of last year. According to some economists, this level of services growth is consistent with a quarterly pace of 0.7%, well above the 0.3% pace experienced in the first quarter.

This was the third in a series of positive reports about the economy released last week. The manufacturing sector expanded at its fastest pace in three years in April and exceeded most expectations. The IHS Markit CIPS manufacturing PMI increased from 54.2 to 57.3 in April. Data from IHS Markit also showed that the pace of hiring increased even as companies boosted production levels.

Additionally, construction growth for the country touched its highest level in four months. IHS Markit’s construction PMI increased from 52.2 in March to 53.1 in April. Construction also reported a pickup in hiring even as April’s expansion was attributed to an increase in civil engineering and residential construction activity.

Is Q1 GDP Data Really Disappointing?

At first glance, the first quarter GDP release seems rather dismal. Not only was the quarterly expansion of 0.3% a decline from the preceding quarter’s figure of 0.7%, it also came in below most forecasts, which were hovering around 0.4%. But the situation is not as bad as it seems. Firstly, the annual rate of growth was recorded at 2.1%, which is only a shade below the official projection of 2.2%.

Additionally, real incomes experienced an increase while production and manufacturing expanded at a pace which exceeded the rate of overall growth. Additionally, late Easter holidays may have led to problems in adjustment, which in turn led to the government reporting a smaller GDP increase. Despite this factor, expenditure on food and beverages moved higher.

Our Choices

A succession of economic reports released last week indicates that the health of Britain’s economy has improved. Improvements have been witnessed across services, manufacturing and construction, which implies that better times are ahead for the economy.

Picking British stocks looks like a prudent option at this point. However, picking winning stocks may prove to be difficult.

This is where our VGM score comes in. Here V stands for Value, G for Growth and M for Momentum and the score is a weighted combination of these three scores. Such a score allows you to eliminate the negative aspects of stocks and select winners. However, it is important to keep in mind that each Style Score will carry a different weight while arriving at a VGM score.

Unilever PLC (NYSE:UL – Free Report ) is world leader in the FMCG industry.

Unilever has a Zacks Rank #1 (Strong Buy) and a VGM Score of A. The company has expected earnings growth of 17.3% for the current year. Its earnings estimate for the current year has improved by 10.4% over the last 30 days.

Associated British Foods plc (OTCMKTS:ASBFY – Free Report ) is a diversified international food, ingredients and retail group.

Associated British Foods has a VGM Score of B. The company has expected earnings growth of 10% for the current year. Its earnings estimate for the current year has improved by 4.8% over the last 30 days. The stock has a Zacks Rank #1(Strong Buy). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.

RELX PLC (NYSE:RELX – Free Report ) is engaged in providing information and analytics solutions on a global basis.

RELX has a Zacks Rank #2 (Buy) and a VGM Score of A. Its earnings estimate for the current year has improved by 1.5% over the last 30 days.

Pearson plc (NYSE:PSO – Free Report ) is a provider of educational materials and learning systems on a global basis.

Pearson has a Zacks Rank #2 and a VGM Score of A. The forward price-to-earnings (P/E) ratio for the current financial year (F1) is 14.85, lower than the industry average of 17.50. Its earnings estimate for the current year has improved by 2.4% over the last 30 days.

BT Group plc (NYSE:BT – Free Report ) is one of the world's leading providers of communications services and solutions.

BT Group has a Zacks Rank #2 and a VGM Score of B. The company has expected earnings growth of 3.3% for the current year. Its earnings estimate for the current year has improved by 2.2% over the last 30 days. The stock has a P/E (F1) of 10.71, lower than the industry average of 16.20.

Zacks' Hidden Trades

While we share many recommendations and ideas with the public, certain moves are hidden from everyone but selected members of our portfolio services. Would you like to peek behind the curtain today and view them?

Starting now, for the next month, I invite you to follow all Zacks' private buys and sells in real time from value to momentum...from stocks under $10 to ETF to option movers...from insider trades to companies that are about to report positive earnings surprises (we've called them with 80%+ accuracy). You can even look inside portfolios so exclusive that they are normally closed to new investors.

Click here for Zacks' secret trade>>

Today, Zacks is promoting its ''Buy'' stock recommendations. Get #1 Stock of the Day pick for free .

About Zacks Equity Research

Zacks Equity Research provides the best of quantitative and qualitative analysis to help investors know what stocks to buy and which to sell for the long-term.

Continuous 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

Many are little publicized and fly under the Wall Street radar. They're virtually unknown to the general public. Yet today's 220 Zacks Rank #1 "Strong Buys" were generated by the stock-picking system that has nearly tripled the market from 1988 through 2015. Its average gain has been a stellar +26% per year. See these high-potential stocks free >>.

Get the full Report on UL - FREE

Get the full Report on ASBFY - FREE

Get the full Report on RELX - FREE

Get the full Report on PSO - FREE

Get the full Report on BT - FREE

Follow us on Twitter: https://twitter.com/zacksresearch

Join us on Facebook: https://www.facebook.com/home.php#/pages/Zacks-Investment-Research/57553657748?ref=ts

Zacks Investment Research is under common control with affiliated entities (including a broker-dealer and an investment adviser), which may engage in transactions involving the foregoing securities for the clients of such affiliates.

Media Contact

Zacks Investment Research

800-767-3771 ext. 9339

support@zacks.com

https://www.zacks.com/

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 does not engage in investment banking, market making or asset management activities of any securities. These returns are from hypothetical portfolios consisting of stocks with Zacks Rank = 1 that were rebalanced monthly with zero transaction costs. These are not the returns of actual portfolios of stocks. The S&P 500 is an unmanaged index. Visit https://www.zacks.com/performance for information about the performance numbers displayed in this press release.


Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report
 
Unilever PLC (UL): Free Stock Analysis Report
 
Associated British Foods PLC (ASBFY): Free Stock Analysis Report
 
RELX PLC (RELX): Free Stock Analysis Report
 
Pearson, PLC (PSO): Free Stock Analysis Report
 
BT Group PLC (BT): Free Stock Analysis Report
 
To read this article on Zacks.com click here.
 
Zacks Investment Research

Advertisement