The Zacks Analyst Blog Highlights: GATX, Lexmark International, Thor Industries, Tyson Foods and Insperity

For Immediate Release

Chicago, IL – March 22, 2016 – 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 the GATX Corp. (GMT), Lexmark International Inc. (LXK), Thor Industries Inc. (THO), Tyson Foods, Inc. (TSN) and Insperity, Inc. ( NSP).

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Here are highlights from Monday’s Analyst Blog:

5 Best Stocks to Buy for Dividend Growth

Who doesn’t want a portfolio that generates higher returns? However, markets have been on a roller coaster ride in the recent past – be it due to the flagging Chinese economy, weakness in the energy sector or a strong dollar. After meticulously analyzing the current economic scenario, the recent decision of the Federal Reserve not to go for a rate hike is a wise one.

So, the federal funds rate is left untouched at 0.25% to 0.50% for now, providing the stock market with the much-needed impetus. The Fed remains cautiously optimistic about the U.S. economy and as the situation improves worldwide, the U.S. will be ready to lead the squad. The economy is not in bad shape as some of the risk-averse investors perceive. The employment picture is good enough to clear the way and inflation is crawling toward the desired level.

The Fed now anticipates the U.S. economy to expand at a pace of 2.2% this year, marginally lower than 2.4% projected earlier, thanks to the recent turbulence. On the other hand, inflation is likely to hover around 1.2% by the end of the year, falling shy of the Fed’s target of 2%. The unemployment rate, which was 4.9% in February, is estimated to be 4.7% by the end of this year, 4.6% by 2017 and 4.5% by 2018.

While the global markets are trying hard to make their way out of the woods, domestic investors welcomed the Fed’s decision, which to an extent calms the jitters that rose, when discouraging retail sales data for February and a downward revision to January retail sales point to some degree surfaced. (Read: 5 Great Stocks to Buy Despite Weak Retail Sales ). Definitely, the eventful financial world might baffle you and your investment precision, so better to bet your bucks on safer counters.

Where Lies the Safe Haven?

Modest economic growth, impressive employment statistics, rebounding oil prices on renewed hope for an output freeze, and favorable manufacturing data are doing a commendable job in alleviating investors’ concerns. Yet any unprecedented macroeconomic headwind can make them impatient.

So be very careful when it comes to investments. You should diligently choose your portfolio of stocks that may give the best returns. The year so far has not been very investor friendly, and what the future has in store is hard to predict. But it's not impossible to locate greener pastures.

People looking for regular income from stocks are most likely to be inclined toward those companies that have a track of consistent and incremental dividend payments. They are safer bets, particularly in a low-rate environment, as they provide a cushion during economic uncertainties.

On that note, while building a portfolio, one should consider stocks with a favorable Zacks Rank #1 (Strong Buy), a 5-Year Historical Dividend Growth of at least 5% and a VGM Score of “A.” Here, V stands for Value, G for Growth and M for Momentum. The VGM score is simply a weighted combination of these parameters and is a comprehensive tool that allows investors to filter through the standard scoring system and better choose winning stocks.

5 Prominent Picks

GATX Corp. (GMT), which leases, operates, manages and remarkets assets in the rail and marine markets, is a solid bet with a Zacks Rank #1 and a VGM Score of “A.” Based in Chicago, IL, the company has a 5-Year Historical Dividend Growth Rate of 6.3%.

Investors can also count on Lexmark International Inc. (LXK), which develops, manufactures, and supplies printing, imaging, device management, managed print services (MPS), document workflow, and business process and content management solutions globally. This Lexington, KY-based Zacks Rank #1 company has a 5-Year Historical Dividend Growth Rate of 9.3% with a VGM Score of “A.”

We also suggest investing in Thor Industries Inc. (THO), which sports a Zacks Rank #1 and a VGM Score of “A.” This Elkhart, IN-based designer, manufacturer, and seller of a range of recreational vehicles, has a 5-Year Historical Dividend Growth Rate of 25.5%.

Another stock that investors may look forward to is Tyson Foods, Inc. ( TSN), carrying a Zacks Rank #1 and a VGM Score of “A.” This Springdale, AR-based food company worldwide has a 5-Year Historical Dividend Growth Rate of 26.7%.

Last but not least is Insperity, Inc. (NSP), provider of an array of human resources and business solutions to help enhance the performance for small- and medium-sized businesses. The company carries a Zacks Rank #1 and a VGM Score of “A.” This Kingwood, TX-based company has a 5-Year Historical Dividend Growth Rate of 8.5%.

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GATX CORP (GMT): Free Stock Analysis Report
 
LEXMARK INTL (LXK): Free Stock Analysis Report
 
THOR INDS INC (THO): Free Stock Analysis Report
 
TYSON FOODS A (TSN): Free Stock Analysis Report
 
INSPERITY INC (NSP): Free Stock Analysis Report
 
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