For Immediate Release
Chicago, IL – March 28, 2023 – 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: Alliance Resource Partners L.P. ARLP, RPC Inc. RES, Crawford & Co. (CRD.A), Universal Insurance Holdings Inc. UVE and Wabash National Corp. WNC.
Here are highlights from Monday’s Analyst Blog:
5 Dividend-Paying Growth Stocks to Buy for a Stable Portfolio
Wall Street ended last week on a positive note despite severe volatility. The three major stock indexes — the Dow, the S&P 500 and the Nasdaq Composite — were up 1.2%, 1.4% and 1.7%, respectively. U.S. stock markets moved northward, defying the banking sector turmoil across the globe and the threat of a recession.
Meanwhile, in its March FOMC meeting, the Fed raised the benchmark interest rate by 25 basis points to the range of 4.75% to 5%. This is the highest level of the Fed fund rate since late 2007. However, Fed Chairman Jerome Powell signaled that the rate hike cycle is approaching its end.
Fed’s latest projection shows that the terminal interest rate at the end of 2023 will be 5.125%. This implies that just one more 25 basis-point hike in the benchmark lending rate will complete this cycle. Although no rate cut is anticipated in 2023, Powell signaled that the Fed fund rate will be reduced by 0.8% in 2024 and another 1.2% cut is expected in 2025.
At this stage, it will be prudent to invest in growth stocks that pay regular dividend to strengthen one’s portfolio.
Our Top Picks
We have narrowed our search to five growth stocks that have solid upside left for 2023. These stocks have also witnessed positive earnings estimate revisions in the last 60 days. Each of our picks carries a Zacks Rank #1 (Strong Buy) and has a Growth Score A. You can see the complete list of today’s Zacks #1 Rank stocks here.
Alliance Resource Partners L.P. is a diversified natural resource company that produces and markets coal primarily to utilities and industrial users in the United States. ARLP operates through four segments: Illinois Basin Coal Operations, Appalachia Coal Operations, Oil & Gas Royalties, and Coal Royalties.
Alliance Resource produces a range of thermal and metallurgical coal with sulfur and heat contents. ARLP operates seven underground mining complexes in Illinois, Indiana, Kentucky, Maryland, Pennsylvania, and West Virginia. In addition, Alliance Resource leases land and operates a coal loading terminal on the Ohio River at Mt. Vernon, IN, and buys and resells coal.
ARLP has expected revenue and earnings growth rates of 20.2% and 38.7%, respectively, for the current year. The Zacks Consensus Estimate for current-year earnings has improved 8.4% over the last 30 days. Alliance Resource has a current dividend yield of 14.5%.
RPC Inc. provides a range of oilfield services and equipment for the oil and gas companies involved in the exploration, production, and development of oil and gas properties. RES operates through the Technical Services and Support Services segments. RES operates in the United States, Africa, Canada, Argentina, China, Mexico, Latin America, the Middle East, and internationally.
RPC has expected revenue and earnings growth rates of 26.9% and 67.7%, respectively, for the current year. The Zacks Consensus Estimate for current-year earnings has improved 2.6% over the last 60 days. RPC has a current dividend yield of 2.1%.
Crawford & Co. is the world's largest independent provider of diversified services to insurance companies, self-insured corporations, and governmental entities. CRD.A provides claims management and outsourcing solutions for carriers, brokers, and corporations in the United States, the United Kingdom, Europe, Canada, Australia, Asia, and Latin America. Crawford operates through four segments: North America Loss Adjusting, International Operations, Broadspire, and Platform Solutions.
CRD.A has expected revenue and earnings growth rates of 4.2% and 24.3%, respectively, for the current year. The Zacks Consensus Estimate for current-year earnings has improved 13% over the last 30 days. Crawford has a current dividend yield of 3%.
Universal Insurance Holdings Inc. operates as an integrated insurance holding company in the United States. UVE is engaged in insurance underwriting, distribution and claims settlement. Universal Insurance generates revenues from the collection and investment of premiums.
UVE’s agency operations which include Universal Florida Insurance Agency and U.S. Insurance Solutions Inc. generate income from policy fees, commissions, premium financing referral fees and the marketing of ancillary services.
Universal Insurance has expected revenue and earnings growth rates of 9% and more than 100%, respectively, for the current year. The Zacks Consensus Estimate for current-year earnings has improved 22.5% over the last 30 days. UVE has a current dividend yield of 3.5%.
Wabash National Corp. is one of the leading manufacturers of semi-trailers in North America. WNC designs, manufactures, and distributes connected solutions for the transportation, logistics, and distribution industries primarily in the United States. WNC operates through two segments, Transportation Solutions and Parts & Services.
Wabash National specializes in the design and production of dry freight vans, refrigerated vans, flatbed trailers, drop deck trailers, and intermodal equipment. Its innovative core products are sold under the DuraPlate, ArcticLite, and Eagle brand names.
WNC has expected revenue and earnings growth rates of 13.1% and 28.9%, respectively, for the current year. The Zacks Consensus Estimate for current-year earnings has improved 3.9% over the last 30 days. WNC has a current dividend yield of 1.3%.
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Past performance is no guarantee of future results. Inherent in any investment is the potential for loss. This material is being provided for informational purposes only and nothing herein constitutes investment, legal, accounting or tax advice, or a recommendation to buy, sell or hold a security. No recommendation or advice is being given as to whether any investment is suitable for a particular investor. It should not be assumed that any investments in securities, companies, sectors or markets identified and described were or will be profitable. All information is current as of the date of herein and is subject to change without notice. Any views or opinions expressed may not reflect those of the firm as a whole. Zacks Investment Research does not engage in investment banking, market making or asset management activities of any securities. These returns are from hypothetical portfolios consisting of stocks with Zacks Rank = 1 that were rebalanced monthly with zero transaction costs. These are not the returns of actual portfolios of stocks. The S&P 500 is an unmanaged index. Visit https://www.zacks.com/performance for information about the performance numbers displayed in this press release.
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