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Iamgold, Scotts Miracle-Gro, Burlington Stores, Target and Dollar General highlighted as Zacks Bull and Bear of the Day

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For Immediate Release

Chicago, IL - June 26, 2017 - Zacks Equity ResearchIamgold Corporation (NYSE: IAG - Free Report ) as the Bull of the Day, Scotts Miracle-Gro (NYSE: SMG - Free Report ) as the Bear of the Day. In addition, Zacks Equity Research provides analysis on Burlington Stores Inc. (NYSE: BURL - Free Report ), Target Corporation (NYSE: TGT - Free Report ) and Dollar General Corporation (NYSE: DG - Free Report ).

Here is a synopsis of all five stocks:

Bull of the Day :

Your tech-heavy portfolio probably needs a little bit of insurance and with the market bumping up against new highs now is a great time to add it. Iamgold Corporation (NYSE: IAG - Free Report ) is a Zacks Rank #1 (Strong Buy) and carries a Growth Style Score of "A" which is just what I normally like to see. Let's take a look at why this is a Zacks Rank #1 (Strong Buy) in today's Bull of the Day.

Insurance Play

Maybe you have been riding the wave of higher tech stock prices over the last several weeks. Maybe you are seeing the run now take place in biotech names as well. And just maybe all that speculation in the market tells you that an insurance play for about 5% of your portfolio makes sense. This is just that sort of stock!

Description

IAMGOLD Corp is an international gold exploration and mining company based in Canada. It holds a 38% stake in the Sadiola Gold Mine and a 40% stake in the Yatela Gold Mine. Both are located in Mali, West Africa. Measured and indicated resources at Sadiola and Yatela are 5.5 million ounces of gold (including reserves of 5.2 million ounces). Inferred resources are 5.9 million ounces. IAMGOLD is actively exploring highly prospective ground in Africa and South America.

Earnings

The last four earnings reports have seen two beats and two meets. The beats, however, have been huge but most of that is due to the small base.

Estimate Revisions

Estimates for this year are moving in the right direction with the Zacks Consensus Estimate moving from a loss of about a nickel to a loss of two cents. Next year, the Zacks Consensus Estimate shows this company turning the corner into profitability. If we are still in this stock in 1Q18, it should lift considerably as it will be posting positive earnings.

Valuation

Without positive earnings, we do not have a PE ratio to fall back on. Instead, we have to look to the price to book and price to sales to get a better idea of where we stand. The price to book for this gold miner is 1.06x so the value-minded investors have to like that. The price to sales multiple of 2.4x is also nice and low. The key here will be growth and can they deliver more than expected in terms of ounces. That is hard to know, but keep in mind that we are using this stock as a defensive tool as well.

The Best & Worst of Zacks

Today you are invited to download the full, up-to-the-minute list of 220 Zacks Rank #1 "Strong Buys" free of charge. From 1988 through 2015 this list has averaged a stellar gain of +25% per year. Plus, you may download 220 Zacks Rank #5 "Strong Sells." Even though this list holds many stocks that seem to be solid, it has historically performed 6X worse than the market.

See these critical buys and sells free >>

Bear of the Day :

It is officially summer and that means you are spending a little more time on your lawn and your flowers... or are you? A recent miss by Scotts Miracle-Gro (NYSE: SMG - Free Report ) makes me feel like the wetter than normal spring meant a slow start to planting season. Let's take a look at the recent quarter and what the expectations have adjusted to. When there is a miss like this, the negative revision to earnings estimates is the majority of the reason this stock slipped to a Zacks Rank #5 (Strong Sell) and is the Bear of the Day today.

Recent Miss

On May 2, the company posted earnings per share of $2.78, but that was $0.15 below the Zacks Consensus Estimate of $2.93. That translates to a 5.1% negative earnings surprise.

Description

The Scotts Miracle-Gro Company, through its wholly-owned subsidiary, The Scotts Company LLC, is the world's largest marketer of branded consumer products for lawn and garden care, with products for professional horticulture as well. The Company's brands are the most recognized in the industry. In the U.S., the Company's Scotts, Miracle-Gro, Ortho and Smith & Hawken brands are market-leading in their categories, as is the consumer Roundup brand, which is marketed in North America and most of Europe exclusively by Scotts and owned by Monsanto. In the U.S. the Company operates Scotts LawnService0, the second largest residential lawn care service business. In Europe, the Company's brands include Weedol, Pathclear, Evergreen, Levington, Miracle-Gro, KB, Fertiligene and Substral. Its customers include home improvement centers, mass merchandisers, warehouse clubs, hardware chains, independent hardware stores, nurseries, food and drug stores, commercial nurseries and greenhouses, and specialty crop growers.

Earnings

The last four earnings reports have hit or miss, with the company beating the Zacks Consensus Estimate two times and missing the mark two times as well.

Estimate Revisions

Estimates for this year are moving in the wrong direction with the Zacks Consensus Estimate moving from $4.30 90 days ago to the current level of $4.14. The same can be said of the 2018 Zacks Consensus Estimate which moved from $4.80 to $4.60 over the same time period.

This move lower in earnings estimates is the key reason why this stock is now a Zacks Rank #5 (Strong Sell) as well as the reason for it being the Bear of the Day today.

The Best & Worst of Zacks

Today you are invited to download the full, up-to-the-minute list of 220 Zacks Rank #1 "Strong Buys" free of charge. From 1988 through 2015 this list has averaged a stellar gain of +25% per year. Plus, you may download 220 Zacks Rank #5 "Strong Sells." Even though this list holds many stocks that seem to be solid, it has historically performed 6X worse than the market.

See these critical buys and sells free >>

Additional Content

These 3 Discount Stores are Booming Despite the Retail Slump

As we are all aware the Retail-Wholesale sector is no longer a bed of roses. In fact, the sector has been struggling with soft store and mall traffic trends and a tough retail landscape, due to the change in consumer shopping preferences and the rise of competition with pure-play eCommerce names like Amazon.com Inc. (AMZN).

Not only this, the players in the sector have also been hit hard by major economic challenges like the strong U.S. dollar, volatile commodity costs and global uncertainty. The volatility in U.S. dollar for quite some time now has been hurting retailers with worldwide operations.

This scenario has largely weighed on the performance of retailers, particularly Apparel and Department Stores. In a bid to stay in the rat race and be ahead of the curve, these retailers are heavily investing in building upon its eCommerce and omni-channel functionalities. At the same time, they remain focused on optimizing store fleet and are eventually cutting down upon brick-and-mortar store counts. Also, these companies have taken up an aggressive remodeling of stores to attract traffic.

Some retailers that are concentrating on optimizing store fleet include Macy's Inc. (M) and American Eagle Outfitters Inc. (AEO) and J. C. Penney Company Inc. (JCP). Further, DICK'S Sporting Goods Inc. (DKS) also announced plans to bring a slowdown in its store growth plan.

However, the game is still not over for this resilient sector, which is placed at the bottom 19% of the Zacks Sector Rank (13 out of 16). The sector still holds potential given the favorable economic indicators including decelerating unemployment rate and gradual housing market recovery. Apart from uplifting the economy, these factors play a key role in reviving consumer confidence that should improve consumer spending.

Notably, the Retail-Wholesale sector has outperformed the S&P 500 year to date. The sector registered growth of 17% while the S&P 500 index gained 9.2%.

While most industries under the Retail sector have been in the red, there is one industry that is booming - the Discount Stores. In such a volatile background, let's see what makes the Discount Stores stand out.

Why Discount Stores are Performing Well?

Well, actually it is not surprising that the Discount Stores are doing well. Yes, the unique off-price model of these stores makes it a favorite shopping place for today's value focused customers, particularly millennials. These stores offer attractive discounts, selling products at lower and reasonable prices when compared with traditional retail outlets. Further, these stores can easily adjust or slash price to react to a situation due to efficient distribution methods. This makes Discount Stores attractive destinations for customers in all economic scenarios.

These factors have kept the Discount Store format shielded from the current turmoil in the retail segment. Notably, the Retail-Discount Stores industry is at the top 38% of the Zacks Sector Rank (97 out of 256).

This calls for investing in the Retail-Discount Stores space. Here we have highlighted three Discount Stores stocks with a favorable combination of a Zacks Rank #1 (Strong Buy) or #2 (Buy) and a VGM Score of "A" or "B". These stocks are backed by sound fundamentals, surging share price and a track record of better-than-expected results.

First on the list is Burlington Stores Inc. (NYSE: BURL - Free Report ), with a long-term earnings growth rate of 15.9% and a VGM Score of "A". The stock increased about 32.8% in the past one year, outperforming the Zacks categorized Retail-Discount Stores industry that declined 8.3%. This retailer of branded apparel delivered an average positive earnings surprise of 22.6% in the trailing four quarters and flaunts a Zacks Rank #2. You can see the complete list of today's Zacks #1 Rank stocks here .

Another lucrative option is Target Corporation (NYSE: TGT - Free Report ), which has a long-term earnings growth rate of 5.4% and a VGM Score of "A". This general merchandise retailer delivered an average positive earnings surprise of 16.5% in the trailing four quarters and carries a Zacks Rank #2. We note that in the last three months, the stock has declined 4.6%, narrower than the Zacks categorized Retail-Discount Stores industry's fall of 6.1%.

Investors can count on Dollar General Corporation (NYSE: DG - Free Report ), a discount retailer providing various consumable products in the southern, southwestern, midwestern, and eastern U.S. The stock has a long-term earnings growth rate of 10.6%. Further, the company posted an average positive earnings surprise of 1.4% in the trailing four quarters and has a VGM Score of "A". In the last three months, this Zacks Rank #2 stock has exhibited a bullish run and advanced roughly 2.4%, while the Zacks categorized Retail-Discount Stores industry lost 6.1%.

The Best & Worst of Zacks

Today you are invited to download the full, up-to-the-minute list of 220 Zacks Rank #1 ""Strong Buys"" free of charge. From 1988 through 2015 this list has averaged a stellar gain of +25% per year. Plus, you may download 220 Zacks Rank #5 ""Strong Sells."" Even though this list holds many stocks that seem to be solid, it has historically performed 6X worse than the market. See these critical buys and sells free >>

Get today's Zacks #1 Stock of the Day with your free subscription to Profit from the Pros newsletter:

About the Bull and Bear of the Day

Every day, the analysts at Zacks Equity Research select two stocks that are likely to outperform (Bull) or underperform (Bear) the markets over the next 3-6 months.

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 analyst 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 >>.

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Iamgold Corporation (IAG): Free Stock Analysis Report

Scotts Miracle-Gro Company (The) (SMG): Free Stock Analysis Report

Burlington Stores, Inc. (BURL): Free Stock Analysis Report

Target Corporation (TGT): Free Stock Analysis Report

Dollar General Corporation (DG): Free Stock Analysis Report

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Zacks Investment Research

The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.


The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

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