AdvanSix, Orion Group, Wipro, 360 DigiTech and Tokyo Electron highlighted as Zacks Bull and Bear of the Day

For Immediate Release

Chicago, IL – December 30, 2021 – Zacks Equity Research Shares of AdvanSix Inc. ASIX as the Bull of the Day, Orion Group Holdings, Inc. ORN as the Bear of the Day. In addition, Zacks Equity Research provides analysis on Wipro Limited WIT, 360 DigiTech, Inc. QFIN and Tokyo Electron Limited TOELY.

Here is a synopsis of all five stocks:

Bull of the Day:

With the market up at all-time highs, it can feel like any stock you pick can be a winner. If we had better breadth, that may be the case. But the reality is, stocks with the strongest earnings trends have the best chances of delivering long-term profits to investors. One way to uncover these stocks is by leaning on the time-tested strength of our Zacks Rank. Stocks in the good graces of our Zacks Rank have the strongest earnings trends. When analysts are steadily increasing their earnings estimates for a stock, that means they know something we don’t. They know the industries they cover inside and out and understand the future prospects.

My cheat sheet, the Zacks Rank, led me to today’s Bull of the Day, AdvanSix. AdvanSix Inc. manufactures and sells polymer resins in the United States and internationally. It offers Nylon 6, a polymer resin, which is a synthetic material used to produce fibers, filaments, engineered plastics and films. The company also provides caprolactam to manufacture polymer resins; ammonium sulfate fertilizers to distributors, farm cooperatives, and retailers; and acetone that are used in the production of adhesives, paints, coatings, solvents, herbicides, and other engineered plastic resins, as well as other intermediate chemicals.

AdvanSix is a Zacks Rank #1 (Strong Buy) in the Chemical – Specialty industry which ranks in the Bottom 32% of our Zacks Industry Rank. The reason for the favorable Zacks Rank is the positive earnings estimate revisions coming from analysts. Over the last sixty days, one analyst has increased their estimates for the current year while one has cut their number. Looking at next year, there has been a positive revision as well. The bullish moves have increased our Zacks Consensus Estimates for the current year from $4.27 to $4.83 while next year’s number is up from $4.10 to $5.02.

A series of earnings surprises to the upside have helped underpin the move higher. Over the last year, the stock has beat earnings each quarter by an average of 35 cents or 46%. The earnings streak now sits at four consecutive quarters of earnings beats.

Bear of the Day:

There are some industries which are absolutely on fire in this environment. The huge shift in economic behaviors following the pandemic has created amazing opportunities. However, there are some industries which are being left in the dust. One way to find industries to avoid is by looking at the Zacks Rank. Stocks with weak earnings trends will be on the lower end of our Zacks Rank. Get enough of these stocks in the same industry and you have an industry which falls down our Zacks Industry Rank.

Today’s Bear of the Day is a stock in the Building Products – Heavy Construction industry which ranks in the Bottom 9% of our Zacks Industry Rank. It’s Orion Group. Orion Group Holdings, Inc. operates as a specialty construction company in the building, industrial, and infrastructure sectors in the continental United States, Alaska, Canada, and the Caribbean Basin. It operates in two segments, Marine and Concrete. The company provides various marine construction services, including construction, restoration, dredging, maintenance, and repair of marine transportation facilities and pipelines, bridges and causeways, and marine environmental structures. Its marine transportation facility projects comprise public port facilities, cruise ship port facilities, private terminals, special-use navy terminals, recreational use marinas and docks, and other marine-based facilities.

It does not take an insider on Wall Street to understand why a stock like this is under pressure. The company counts cruise ship operator Carnival as one of its largest private customers and those private customers made up 39% of its marine segment revenues in 2020. With the world on hold, these projects took a back seat.

Over the last sixty days, analysts have cut their earnings estimates for the current quarter, next quarter and next year. The bearish sentiment has slashed our Zacks Consensus Estimate for next year from 44 cents to 21 cents. This year’s number is off from a 14-cent profit to a 25-cent loss. That current year number represents a large contraction in earnings from the year ago EPS number of 47 cents. The good news for long-term investors is that next year’s number represents a return to growth. Revenues, which contracted by 18.49% this year are slated to grow by 9.2% next year.

Additional content:

3 International Stocks that Crushed the U.S. Markets in 2021

It has been a great 2021 for Wall Street despite the deadly coronavirus wreaking havoc throughout the year. Not many had expected the markets’ bull run at the time of the COVID-19 outbreak last year, but stocks have managed to deliver more than expected in 2020 and 2021.

It is the same for a handful of international stocks, which have not only played a key role in the rally but also crushed the U.S. markets. Among these, three stocks like Wipro, 360 DigiTech and Tokyo Electron, have posted more-than-double returns compared to the S&P 500 Index year to date.

Surviving the COVID-19 Bloodbath

The year 2021 started with optimism surrounding the COVID-19 vaccine, which was in the making last year. The vaccine raised hopes after the virus battered industries and the overall global economy in 2020.

However, the announcement of vaccines was followed by yet another wave of coronavirus. The Delta variant was deadlier, resulting in more hospitalizations and deaths in the earlier half of the year. This saw many economies once again going into lockdowns.

On the other hand, the massive vaccination drive helped people protect themselves from contracting the virus and gave them due confidence. Economies started reopening, travel restrictions started being lifted and industries began getting back to performing at the optimum level, thus paving the way for economic recovery.

Markets Performed Despite Challenges

Investors weren’t confident about markets going on rally in 2021. The U.S. government gave away $3 trillion in stimulus to help the economy but at the same time growing pent-up demand sent general prices skyrocketing, thus resulting in soaring inflation across the globe.

Worries of growing inflation also saw central banks like the Fed and the European Commission roll back the fiscal stimulus to combat the coronavirus-led economic loss. This indicates that interest rates are likely to be raised in 2022, with many economies taking the first step already.

Also, the coronavirus massively affected the supply chain globally and the crisis is far from over, resulting in rising input costs for manufacturers and producers.

Despite all these, the global market has had an impressive 2021 and the rally is likely to continue next year. However, the International Monetary Fund has revised down its 2022 global economic growth by 0.1% to 4.9%.

Our Choices

We have narrowed our search to three international stocks that have returned more than double the S&P 500 Index in 2021 and promise to continue performing well in 2022.

Wipro provides comprehensive IT solutions and services, including systems integration, Information Systems outsourcing, package implementation, software application development and maintenance, and research and development services to corporations globally. WIT serves customers in various industry sectors and operates through three segments: IT Services, IT Products, and India State Run Enterprise Services.

Wipro’s expected earnings growth rate is 11.5% for the current year and 6.9% for next year. Shares of WIT have gained 70.4% year to date. Wipro carries a Zacks Rank #2 (Buy). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.

360 DigiTech provides a data-driven, technology-empowered digital platform. QFIN, through its subsidiaries, operates a digital consumer finance platform under the 360 Jietiao brand in the People's Republic of China. 360 DigiTech’s platform provides online consumer finance products to borrowers funded by institutional funding partners.

360 DigiTech’s expected earnings growth rate is 48.1% for the current year. The Zacks Consensus Estimate for current-year earnings has improved 6.5% over the past 60 days. Shares of QFIN have gained 86.7% year to date. 30 Digi Tech carries a Zacks Rank #2.

Tokyo Electron Ltd. is mainly engaged in the manufacture and sale of electronic products for industrial uses. TOELY is the largest manufacturer of IC and FPD production equipment in Japan and the third-largest in the world. Tokyo Electron also offers logistics, facility maintenance and insurance services.

Tokyo Electron’s expected earnings growth rate is 65.5% for the current year and 15.4% for next year. The Zacks Consensus Estimate for next-year earnings has improved 6.1% over the past 60 days. Shares of TOELY have gained 54.9% year to date. Tokyo Electron sports a Zacks Rank #1.

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