For immediate release
Chicago, IL – May 25, 2022 – Zacks.com announces stock listing and featured in analyst blog. Every day, Zacks Equity Research analysts discuss the latest news and events impacting stocks and financial markets. Stocks recently featured in the blog include: SilverBow Resources Inc. SBOW, Hudson Technologies Inc. HDSN, Intrepid Potash Inc. IPI, Pangea Logistics Solutions Ltd. PANL and Civeo Corp. CVEO.
Here are the highlights from Tuesday’s analyst blog:
5 hidden gems that are flying high despite market bloodshed
Wall Street has been reeling from high volatility since the start of 2022 after finishing impressively in the last two years marked by the coronavirus. Small business operators have suffered the most during the pandemic. The nightmare of these companies continues this year as well due to record inflation, a higher interest rate regime and the ongoing Russian-Ukrainian war.
Nonetheless, despite various hurdles, several small-cap stocks (market capital SilverBow Resources Inc., Hudson Technologies Inc., Intrepid Potash Inc., Pangea Logistics Solutions Ltd. and Civeo Corp.
The major problem for small businesses in the United States is runaway inflation, which is currently at its highest level in 40 years. The global collapse of supply chain systems due to the pandemic and labor shortages has hurt these companies the most. Small businesses are unable to pass on the full increase in input costs to their final products, which deteriorates their financial situation.
China has yet to fully recover from the resurgence of COVID-19. Moreover, the protracted war between Russia and Ukraine has made inflation worse. Commodity prices, especially crude oil and natural gas, remain high due to the war.
What is even more painful is that together Ukraine and Russia were the largest wheat exporters in the world. Food inflation jumped after several Asian and African countries decided to ban exports of agricultural and poultry products.
The Fed has already raised the benchmark lending rate by 75 basis points and given a clear indication of two more rate hikes of 50 basis points each in June and July. The central bank ended the $120 billion monthly quantitative easing program in March and will begin to reduce its balance sheet by $9 trillion from June.
Market participants expect the Fed to adopt a tougher strategy to fight inflation. On May 12, Fed Chairman Jerome Powell admitted that he could give no guarantees for a soft landing for the economy under a regime of higher interest rates.
Small businesses operate with a low profit margin and most new businesses will take time to break even. Moreover, these companies have no geographical diversification and are dependent on American consumers.
5 high-flying small caps despite the obstacles
We narrowed our research to five small-cap stocks that have delivered double-digit year-to-date returns, contrary to the southward movement of all major indexes. These stocks have positive growth potential for 2022 and have seen strong earnings estimate revisions over the past 30 days. Finally, each of our picks carries a Zacks rank #1 (Strong Buy). You can see the full list of today’s Zacks #1 Rank stocks here.
Hudson Technologies is a leading provider of innovative solutions to recurring problems in the refrigeration industry. HDSN’s proprietary RefrigerantSide Services increase operating efficiency and energy savings, and remove moisture, oils and other contaminants commonly found in the refrigeration circuits of large comfort cooling and process refrigeration systems. Additionally, Hudson Technologies sells refrigerants and provides traditional recovery services to the commercial and industrial air conditioning and refrigeration markets.
HDSN expects earnings growth of more than 100% for the current year. Zacks’ consensus estimate for its current-year earnings has improved 76.9% over the past 30 days. The stock price is up 120% since the start of the year.
Pangea Logistics operates as a global logistics company. PANL provides dry bulk shipping services. Pangea Logistics provides logistics services to a broad base of industrial customers who require the transportation of a wide variety of dry bulk cargoes including grain, pig iron, hot briquetted iron, bauxite, alumina, cement clinker, dolomite and limestone.
PANL forecasts profit growth of 18.4% for the current year. Zacks’ consensus estimate for its current-year earnings has improved 32.5% over the past 30 days. The share price has jumped 75.4% since the start of the year.
SilverBow Resources is engaged in the exploration, development and production of oil and gas properties. SBOW’s major projects include the Eagle Ford, Burr Ferry, South Bearhead Creek and Lake Washington fields. SilverBow Resources Inc.
SilverBow Resources expects earnings growth of 97.7% for the current year. Zacks’ consensus estimate for its current-year earnings has improved 10.8% over the past 30 days. The stock price is up 60.6% since the start of the year.
Fearless Potash is the largest potash producer in the United States and is engaged in the production and marketing of potash and langbeinite, another potassium-containing mineral. IPI has five active potash production facilities – three in New Mexico and two in Utah.
Intrepid Potash forecasts earnings growth of over 100% for the current year. Zacks’ consensus estimate for its current-year earnings has improved 34% over the past 30 days. The share price has jumped 50.6% since the start of the year.
Civeo is a leading provider of long-term and temporary remote site accommodation, logistics and facility management services. CVEO operates in active oil, coal, natural gas and iron ore producing regions, including Canada, Australia and the United States.
Civeo expects earnings growth of more than 100% for the current year. Zacks’ consensus estimate for its current-year earnings has improved 68.8% over the past 30 days. The share price is up 42.5% since the start of the year.
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Past performance is not indicative of future results. The potential for loss is inherent in any investment. This document is provided for informational purposes only and nothing herein constitutes investment, legal, accounting or tax advice, or a recommendation to buy, sell or hold any security. No recommendation or advice is given as to whether any investment is suitable for any particular investor. It should not be assumed that investments in the securities, companies, sectors or markets identified and described have been or will be profitable. All information is current as of the date hereof and is subject to change without notice. The views or opinions expressed may not reflect those of the company as a whole. Zacks Investment Research does not engage in investment banking, market making or asset management of securities. These returns come from hypothetical portfolios composed of stocks with Zacks Rank = 1 that have been rebalanced monthly without transaction fees. These are not the returns of actual stock portfolios. The S&P 500 is an unmanaged index. Visit https://www.zacks.com/performance for more information on the performance figures displayed in this press release.
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