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The Zacks Analyst Blog Highlights: Delta Apparel, SpartanNash, Tyson Foods and Superior Industries International

For Immediate Release

Chicago, IL – April 05, 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 Delta Apparel Inc. (DLA), SpartanNash Company (SPTN), Tyson Foods Inc. (TSN) and Superior Industries International Inc. (SUP).

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Here are highlights from Monday’s Analyst Blog:

Top Grade Stocks to Buy for Q2

After a dismal start to the year, the broader market started taking a dramatic turn in mid-February when the major benchmarks posted significant gains led by a strong rally in crude and encouraging economic data.

The Dow Jones Industrial Average (DJI) and the Standard & Poor’s 500 (S&P 500) have improved significantly from the Feb 11 level – the day when the Dow plummeted to its lowest level since Feb 6, 2014 and the S&P 500 fell to its lowest level since Apr 11, 2014. Since then, the Dow and the S&P 500 have improved 13.6% and 13.3%, respectively.

Investors can make the most of this upsurge with high growth potential stocks that are presently undervalued. These stocks have been on an uptrend over the past few weeks or months. But will the momentum last? Considering the market mayhem in the first quarter, we can safely say that these stocks have the potential to add value for investors in the ongoing quarter too.

Let’s have a look at the factors that will boost the market in Q2:

Crude Rise

Crude prices made a strong resurgence since the second half of February. This was one of the most important drivers of the quarter’s market surge. The West Texas Intermediate (WTI) crude futures are currently up around 41% from the 12-year low of $26.21 touched in February. The impressive upside came on the back of improving demand/supply dynamics, which are rebuilding investors’ confidence in the rebalancing of the oil market.

Most importantly, the major oil producing companies will be meeting on Apr 17 to discuss an oil production freeze to boost oil prices. Meanwhile, Iran, which was previously unwilling to enter into any such agreement, recently expressed interest in joining the meeting. Hence, we can expect the current momentum in oil price to continue in the second quarter too.

Upbeat Economic Data

Manufacturing in the U.S. expanded for the first time in six months in March, fueled by a surge in new orders. The outlook for manufacturing looks encouraging, thanks to the moderating of dollar strength and the recent rise in oil prices.

Moreover, the U.S. economy created a total of 242,000 jobs in February, significantly beating the consensus estimate of 194,000. The tally was also considerably higher than January’s upwardly revised figure of 172,000. Meanwhile, the unemployment rate in February was in line with the consensus estimate and January’s level of 4.9%.

Additionally, the “third” estimate by the Bureau of Economic Analysis showed that the fourth-quarter output of goods and services increased at an annual rate of 1.4%, more than the consensus estimate of a 1% rise. In fact, fourth-quarter GDP data was revised upward from the previously estimated 1% increase.

On top of that, personal spending increased 0.1% in February, in line with both the consensus estimate and January’s revised reading. Also, personal income increased 0.2%, exceeding the consensus estimate. Furthermore, the personal consumption expenditure price index (PCE) rose 0.2% in February after remaining unchanged in January. Notably, core PCE increased 1.7% in the last 12 months.

Housing recovery also gained pace. The majority of the housing-related indicators of March revealed a quickened pace of growth. Construction spending increased to its highest level since Jan 2007. Housing starts increased 5.2% from January to a five-month high in February. Meanwhile, new home sales rose in line with the consensus estimate. Pending home sales also increased to a seven-month high.

4 Stocks Ready to Rise in Q2

Banking on these upbeat economic data, the broader market is expected to continue its bull run. Moreover, the Federal Reserve’s dovish stance – of keeping interest rates on hold – also charged up investors. Moreover, China’s stimulus measures raised further hopes of a much-stable global economy that would in turn contain volatility in the broader markets.

On this optimistic note, it will be prudent to invest in stocks having significant growth potential. With the help of our new style score system, we have identified four stocks that look great from the Value, Growth and Momentum standpoint. These stocks have a Zacks Rank #1 (Strong Buy) and are braced with a VGM Score of ‘A’. The stocks also rallied considerably in the last 12 weeks.

Delta Apparel Inc. (DLA): Greenville, SC-based Delta Apparel is a designer and manufacturer of headwear products along with unique active wear clothing for the global market. The company gained more than 40% over the past three months.

SpartanNash Company (SPTN): Grand Rapids, MI-based SpartanNash is a leading retailer and grocery distributer in the U.S. SpartanNash jumped 38.1% in the last 12 weeks.

Tyson Foods Inc. (TSN): Headquartered in AR, Tyson Foods was founded in 1935. It produces, distributes and markets chicken, beef, pork, prepared foods and allied products. The firm surged 29% in the prior three months.

Superior Industries International Inc. (SUP): Founded in 1957, Superior Industries International gained 22.2% in the last three weeks. It is one of the world’s largest designers and manufacturers of cast aluminum road wheels for the automotive industry.

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DELTA APPAREL (DLA): Free Stock Analysis Report
 
SPARTAN NASH CO (SPTN): Free Stock Analysis Report
 
TYSON FOODS A (TSN): Free Stock Analysis Report
 
SUPERIOR INDS (SUP): Free Stock Analysis Report
 
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