I thought an interesting little piece would be to investigate
what industries are
on the move
in Zacks Industry Ranking terms this week. What I have here
are four industries that have the
highest recent movement
up in Zacks Industry Ranks.
I found two broad macro top-down trends are alive and well
here, kicking up a lot of dust inside the Zacks Industry
Ranks. What this means? These industries earnings
estimate revisions are rising much more rapidly than other
industries.
TOP-DOWN TREND #1.
With North American oil and gas production rising on the
back of new technologies, it makes a lot of sense to invest
in companies driving the fresh oil and gas production
growth.
One company highlighted is in Electronic Measuring Instruments
industry. It is involved in the sophisticated electronic
acquisition and monitoring of oil and gas wells. Related to
this fresh production growth trend is a strong Zacks Industry
Rank for the Biofuels industry. One company highlight is a
Biofuels company that can convert carbon-bearing gas, liquids,
and solids into usable hydrocarbons using a proprietary
technology.
What this tells us? If you are looking for an investible
Energy sector play, look into the companies that supply the
sophisticated know-how and technology that is driving the fresh
growth in N. American production.
A. Strong Energy Industry - Electronic Measuring
Instruments
Rising +117 in the last week. Now Zacks Ranked 47
th
out of 265 industries.
Company Highlight: Geospace Technologies Corporation
(Zacks Rank #1) is engaged in the designing and manufacturing of
scientific instrumentation and equipment used in
the acquisition and processing of seismic data, as well as in
the characterization and monitoring of producing oil and gas
reservoirs.
The Company also manufactures and distributes thermal imaging
equipment and dry thermal film products. Geospace's seismic
products consist of land and marine nodal seismic data
acquisition systems; multi-component geophones and hydrophones;
seismic leader wires; geophone string and acquisition system
connectors; seismic telemetry cables; marine seismic cable
retrieval and steering devices; and data acquisition systems. It
also designs and manufactures non-seismic products, including
industrial products, offshore cables, thermal printing equipment
and film.
B. Strong Energy Industry - Biofuels
Rising +83 in the last week. Now Zacks Ranked 100
th
out of 265 industries.
Company Highlight: Rentech, Inc. (Zacks #1 Rank) has developed
and owns a proprietary and patented gas-to-liquids process that
converts carbon bearing gases, liquids and solids into
valuable liquid hydrocarbon products.
The technology works with various feedstocks, including natural
gas and industrial off-gas, heavy crude oil and refinery
byproducts, and coal and petroleum coke, among other
carbon-bearing materials.
TOP-DOWN TREND #2.
The second trend is good old-fashioned consumption
growth. We see that in the cool days of November, a
fresh produce maker is making a strong rise. And
look at a company marketing and distributing over-the-counter
drugs, personal care, and household cleaning products in the
U.S. and Canada.
What this tells us? If you are looking for a fresh Consumer
play, focus on something with broad appeal that can track the
strong movement in overall U.S. consumption growth and the
improvement in U.S. consumer confidence.
A. Strong Consumer Products Industry -
Agricultural Operations
Rising +112 in the last week. Now Zacks Ranked 66
th
out of 265 industries.
Company Highlight: Fresh Del Monte Produce Inc. (Zacks
#1 Rank, with an Outperform rating) is a world leader in the
production, distribution and marketing of fresh produce.
The products are marketed throughout the world under the
DEL MONTE brand name, which is a widely recognized symbol of
product quality and reliability. The major products are
bananas, pineapples, deciduous fruit and melons. The
deciduous fruit the company sells includes primarily grapes,
plums, nectarines, peaches, apricots, cherries, apples, pears and
citrus.
B. Strong Consumer Products Industry -
Miscellaneous Discretionary
Rising +66 in the last week. Now Zacks Ranked 105
th
out of 265 industries.
Company Highlight: Prestige Brands Holdings (Zacks #1
Rank) is a
marketer and distributor of brand name over- the-counter
drug, personal care and household cleaning products
sold throughout the United States and Canada. Key brands include
Compound W wart remover, Chloraseptic sore-throat relief
products, New-Skin liquid bandage, Clear eyes and Murine eye and
ear care products, Little Remedies pediatric over-the-counter
healthcare products, Cutex nail polish remover, Comet and Spic
& Span household cleaner and several other well-recognized
brands.
FRESH DEL MONTE (FDP): Free Stock Analysis
Report
GEOSPACE TEC CP (GEOS): Free Stock Analysis
Report
PRESTIGE BRANDS (PBH): Free Stock Analysis
Report
RENTECH INC (RTK): Free Stock Analysis Report
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