The Zacks Analyst Blog Highlights: Avis Budget, Cardtronics, BG Staffing And Kforce
Zacks Investment Research | May 21, 2018 07:52AM ET
For Immediate Release
Chicago, IL – May 21, 2018 – 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 Avis Budget Group, Inc. (NASDAQ:CAR) , Cardtronics plc (NASDAQ:CATM) , BG Staffing, Inc. (NYSE:BGSF) and Kforce, Inc. (NASDAQ:KFRC) .
Here are highlights from Friday’s Analyst Blog:
Non-Manufacturing Clocks 99th Straight Month of Growth: 4 Solid Picks
Economic activity in the non-manufacturing sector expanded in April as the NMI measured by The Institute of Supply Management (ISM) touched 56.81%. This was the 99th straight month of expansion with all 18 non-manufacturing industries reporting growth. Any reading above 50 indicates that the said sector is expanding.
April NMI was lower than the consensus estimates of 58.1% and the March figure of 58.8%. The slowdown was mainly due to trade war worries that made suppliers across the globe nervous. Trump’s decision to postpone the imposition of steel and aluminum tariffs has somewhat eased such concerns.
Business Activity, New Orders & Employment Rise
The ISM Business Activity Index registered growth of 59.1% in April, growing for the 105th consecutive month. All the 15 industries reported an increase in business activity for April driven by strength in overall business activity.
The index for New Orders jumped to 60% in the month, marking the 87th straight month of increase and that too at an accelerated rate compared with March. The surge was driven by large clients onboarding or existing clients adding new work.
Employment Index surged to 53.6%, expanding for the 50th month on the trot. While the economy continued to create new jobs, a tight labor market compelled companies to pay higher to attract and retain employees.
The Service Sector Stands to Gain
The long streak of expansion indicates that the broader economy is on track for steady growth this year. The non-manufacturing sector accounts for nearly 90% of the economy. The business services sector is gaining strength because it is firmly tied to non-manufacturing activities and the broader economy. Healthy economic growth leads to higher corporate profits.
Top 4 Gainers
Given the promising developments in the service sector, investors may consider buying sound stocks from the space. We have selected four stocks that should make meaningful additions to your portfolio. These stocks carry a Zacks Rank #1 (Strong Buy) or 2 (Buy). You can see Zacks Investment Research
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