Zacks.com featured highlights include American Axle, Dana, AMC, Centene and Archer Daniels

For Immediate Release

Chicago, IL – July 19, 2024 – Stocks in this week’s article are American Axle AXL, Dana DAN, AMC Entertainment AMC, Centene CNC and Archer Daniels ADM.

5 Broker-Loved Stocks to Keep Tabs On as Inflation Cools

The southward movement in inflation witnessed since April is certainly a welcome sign. The consumer price index reading for June declined for the first time in more than four years on a month-on-month basis. The easing inflationary pressure has given rise to hopes of a rate cut as early as September.

The AI rally and a good start to the second-quarter earnings season represent further tailwinds. Given this brightening scenario, investors would like to design a winning portfolio of broker-friendly stocks for impressive returns. Brokers are deemed to be experts in the field of investing. Stocks such as American Axle, Dana, AMC Entertainment, Centene and Archer Daniels are currently favored by brokers.

We have designed a screen to shortlist stocks based on improving broker recommendations and upward revisions in earnings estimates over the past four weeks. Also, since the price/sales ratio is a strong complementary valuation metric in the presence of broker information, it has been included. The price/sales ratio takes care of the company’s top line, making the strategy a well-rounded one.

Here are five of the 10 stocks that made it through the screen:

American Axle is a supplier of driveline and drivetrain systems, modules, and components for the automotive market. American Axle’s efforts to diversify its business, products and customer base are generating impressive results. Optimization of its portfolio via buyouts is enhancing the firm’s position.

The Zacks Consensus Estimate for AXL’s 2024 earnings is currently pegged at 40 cents per share, indicating a 5.3% upward revision over the past 60 days. AXL’s earnings surpassed estimates in three of the last four quarters (missing the mark once). The average beat is 404.7%. American Axle currently sports a Zacks Rank #1 (Strong Buy).

You can see the complete list of today’s Zacks #1 Rank stocks here

Dana Incorporated is a provider of power-conveyance and energy-management solutions for vehicles and machinery in North America, Europe, South America, and the Asia Pacific. The company is headquartered in Maumee, OH.

DAN currently carries a Zacks Rank #2 (Buy). The Zacks Consensus Estimate for DAN’s 2025 earnings has been revised upward over the past 60 days by 32.1%.

AMC Entertainment is benefiting from enhanced food and beverage offerings at concession stands and Dine-In theaters, along with the expansion of theater locations across the United States, Europe and the Middle East.

Shares of this Zacks Rank #3 (Hold) company have gained more than 28% in the past six months. In 2024, the company’s earnings are expected to witness growth of 64.6% from the 2023 actuals.

Centene witnessed an uptick in revenues on strength in the Medicare and Medicaid businesses. A well-diversified healthcare suite and solid nationwide presence have fetched multiple contract wins and deal renewals for CNC. This Zacks Rank #3 health insurer follows an inorganic growth route, which, in turn, bolsters its capabilities and provides an opportunity to boost top-line growth.

The Zacks Consensus Estimate for Centene’s 2024 earnings is currently pegged at $6.80 per share, indicating a 1.8% rise from the year-ago reported figure. CNC’s earnings surpassed estimates in each of the last four quarters, with the average beat being 10.5%.

Archer Daniels is based in Chicago, IL. This agricultural product company’s leadership in critical global trends, such as flexitarian diets, nutrition and sustainable materials, has contributed to its momentum. Its focus on investing in assets and technological capabilities to serve customers efficiently is likely to be a significant growth driver. Solid demand, improved productivity and product innovations have been driving growth of this Zacks Rank #3 company.

The Zacks Consensus Estimate for Archer Daniels’ 2024 earnings has inched up 1.1% in the past 30 days to $5.56 per share. ADM delivered an earnings surprise of 7.9%, on average, in the trailing four quarters. The company has gained 11.1% in the past month.

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For the rest of this Screen of the Week article please visit Zacks.com at: https://www.zacks.com/stock/news/2304153/5-broker-loved-stocks-to-keep-a-tab-on-as-inflation-cools

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