Yahoo Finance The Zacks Analyst Blog Highlights EZCORP, American Superconductor, Byrna Technologies, Lifeway Foods and Willdan
For Immediate Release
Chicago, IL – September 24, 2024 – 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: EZCORP Inc. EZPW, American Superconductor Corp. AMSC, Byrna Technologies Inc. BYRN, Lifeway Foods Inc. LWAY and Willdan Group Inc. WLDN.
Here are highlights from Monday’s Analyst Blog:
Rate Cut to Significantly Benefit Small-Cap Stocks: 5 Top Picks
Last week, Wall Street cheered the Fed's decision to reduce the benchmark lending rate by 50 basis points. The latest "dot-plot" of the central bank has indicated another 50 basis-point interest rate cut this year. In addition, with the fundamentals of the U.S. economy remaining rock solid, fears of an imminent recession have evaporated.
A low-interest rate regime is likely to benefit small businesses the most. Consequently, investment in this space should be fruitful in the short-to-near term. We have narrowed our search to five such companies — EZCORP Inc., American Superconductor Corp., Byrna Technologies Inc., Lifeway Foods Inc. and Willdan Group Inc..
These companies have strong growth potential for the rest of 2024 and have seen positive earnings estimates in the last 60 days. Moreover, the stocks have surged year to date. Yet, they have a strong upside left in the short-term. Finally, each of our picks currently sports a Zacks Rank #1 (Strong Buy). You can see the complete list of today's Zacks #1 Rank stocks here.
Small-Caps to Benefit the Most
Since the onset of the COVID-19 pandemic in March 2020, small businesses have suffered a lot. During the pandemic era, the main concern was demand, as social distancing resulted in a slowdown in U.S. consumer spending, which hurt this segment. The global breakdown of supply-chain systems and the shortage of manpower affected these companies the most.
After the pandemic, the major issue for U.S. small businesses was galloping inflation. This space suffered significantly due to a higher interest rate regime. The companies operate on a thin profit margin, and most new businesses take time to achieve profitability.
Small businesses are unable to pass on the total hike in input costs to their final products, which takes a toll their financial condition. Moreover, these companies have no geographical diversification and depend on U.S. consumers.
Small-cap stocks are generally dependent on cheap sources of credit for their survival. Therefore, a gradual decline of the benchmark interest rate will help this space immensely.
5 Must-Buy Small Cap Stocks With Strong Price Upside
These 5 high-flying small-cap stocks have strong upside left in the short-term.
EZCORP Inc.
EZCORP provides pawn services in the United States and Latin America. EZPW operates through three segments — U.S. Pawn, Latin America Pawn, and Other Investments. EZPW offers pawn loans collateralized by tangible personal property, jewelry, consumer electronics, tools, sporting goods, and musical instruments. EZCORO also retails merchandise, primarily collateral forfeited from pawn lending operations and pre-owned merchandise purchased from customers.
In addition, EZPW provides EZ+, a web-based application that allows customers to manage their pawn transactions, layaways, and loyalty rewards online. Further, EZPW operates under the EZPAWN, Value Pawn & Jewelry, Empeño Fácil, Cash Apoyo Efectivo, GuatePrenda, and MaxiEfectivo brands.
Massive Price Upside Potential for EZPW Shares
EZCORP has an expected revenue and earnings growth rate of 7.6% and 8.9%, respectively, for next year (ending September 2025). The Zacks Consensus Estimate for next-year earnings has improved 8.9% over the last 60 days. In the short term, the stock price has a 47.5% upside from the current average target price of $16. The brokerage target price is currently in the range of $15-$17.
American Superconductor Corp.
American Superconductor provides megawatt-scale power resiliency solutions worldwide. AMSC operates through the Grid and Wind segments. The Grid segment of AMSC offers products and services enabling electric utilities, industrial facilities and renewable energy project developers to connect, transmit, and distribute power under the Gridtec Solutions brand.
The Wind segment of AMSC designs wind turbine systems and licenses these designs to third parties under the Windtec Solutions brand. It also supplies power electronics and software-based control systems, engineered designs, and support services; and provides customer support services to wind turbine manufacturers.
Robust Price Upside Potential for AMSC Stock
American Superconductor has an expected revenue and earnings growth rate of 41.6% and more than 100%, respectively, for the current year (ending March 2025). The Zacks Consensus Estimate for current-year earnings has improved more than 100% over the last 60 days. In the short term, the stock price has a 38.5% upside from the current average target price of $30.33. The brokerage target price is currently in the range of $29-$33.
Byrna Technologies Inc.
Byrna Technologies is a less-lethal self-defense technology company, engaged in the development, manufacture, and sale of less-lethal personal security solutions in the United States, South Africa, Europe, South America, Asia, and Canada. BYRN's products include handheld personal security devices and shoulder-fired launchers designed for use by consumers and professional security customers.
BYRN sells its products to the consumer market through its Byrna e-commerce store and Amazon storefront, Side Hustle dealer program, premier dealers, and a network of outdoor and sporting goods stores either directly or through distributors; and to the professional security market through Train the Trainer program.
BYRN Stock Offers Huge Price Upside Potential
Byrna Technologies has an expected revenue and earnings growth rate of 86.3% and more than 100%, respectively, for the current year (ending November 2024). The Zacks Consensus Estimate for current-year earnings has improved more than 100% over the last 30 days. In the short term, the stock price has a 28.9% upside from the current average target price of $19.42. The brokerage target price is currently in the range of $16.25-$25.
Lifeway Foods Inc.
Lifeway Foods produces and markets probiotic-based products in the United States and internationally. LWAY's primary product is drinkable kefir, a cultured dairy product in various organic and non-organic sizes, flavors, and types.
LWAY offers European-style soft cheeses, cream and other products, ProBugs, a line of kefir products designed for children, drinkable yogurt; and fresh made butter and sour cream. LWAY sells its products under the Lifeway, GlenOaks Farms, and Fresh Made brand names, as well as under private labels on behalf of customers primarily through direct sales force, brokers, and distributors.
Impressive Price Upside Potential for LWAY Shares
Lifeway Foods has an expected revenue and earnings growth rate of 24.8% and 32%, respectively, for the current year. The Zacks Consensus Estimate for current-year earnings has improved 23.8% over the last 60 days. In the short term, the stock price has a 21.6% upside from the current average target price of $26.50. The brokerage target price is currently in the range of $25-$28.
Willdan Group Inc.
Willdan Group provides professional, technical, and consulting services primarily in the United States. WLDN operates in two segments, Energy, and Engineering and Consulting. The Energy segment of WLDN offers comprehensive audits and surveys, program design and implementation, master planning, demand reduction, grid optimization, benchmarking analyses, design engineering, construction management, performance contracting, installation, alternative financing, measurement and verification services, and software and data analytics.
The Engineering and Consulting segment of WLDN provides building and safety, city engineering and code enforcement, development plan review and inspection, disaster recovery, geotechnical and earthquake engineering, planning and surveying, contract staff support, program and construction management, structural engineering, transportation and traffic engineering, and water resources services.
Solid Price Upside Potential for WLDN Shares
Willdan Group has an expected revenue and earnings growth rate of 29.5% and 20%, respectively, for the current year. The Zacks Consensus Estimate for current-year earnings has improved 12.3% over the last 60 days. In the short-term, the stock price has a 19.2% upside from the current average target price of $49. The brokerage target price is currently in the range of $47-$51.
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American Superconductor Corporation (AMSC) : Free Stock Analysis Report
EZCORP, Inc. (EZPW) : Free Stock Analysis Report
Lifeway Foods, Inc. (LWAY) : Free Stock Analysis Report
Willdan Group, Inc. (WLDN) : Free Stock Analysis Report
Byrna Technologies Inc. (BYRN) : Free Stock Analysis Report
