Core Insights - Value investing focuses on identifying undervalued assets with long-term growth potential, emphasizing intrinsic value and fundamental analysis over short-term market fluctuations [1] - Earnings yield is a key metric for assessing undervalued stocks, calculated by dividing annual earnings per share (EPS) by market price per share, serving as the inverse of the price-to-earnings (P/E) ratio [1] - A higher earnings yield compared to the 10-year Treasury yield indicates a stock is undervalued, while a lower yield suggests overvaluation [2] Screening Criteria - The primary screening criterion is an earnings yield greater than 10%, supplemented by estimated EPS growth greater than or equal to the S&P 500, average daily volume of at least 100,000, and a current price of $5 or more [3] - Stocks with a Zacks Rank of 1 (Strong Buy) or 2 (Buy) are expected to outperform peers in various market conditions [3] Selected Stocks - **Hanesbrands Inc. (HBI)**: Expected earnings growth of 666.7% in 2024 and 54% in 2025, with a Zacks Rank 1 and a Value Score of A [4] - **American Axle & Manufacturing Holdings, Inc. (AXL)**: Projected earnings growth of 544% in 2024 and 115% in 2025, also holding a Zacks Rank 1 and a Value Score of A [5] - **Futu Holdings Limited (FUTU)**: Anticipated earnings growth of 19.4% in 2024 and 19% in 2025, with a Zacks Rank 1 and a Value Score of B [6] - **Navigator Holdings Limited (NVGS)**: Expected earnings growth of 27.4% in 2024 and 37% in 2025, maintaining a Zacks Rank 1 and a Value Score of B [6] - **SM Energy Company (SM)**: Projected earnings growth of 24% in 2024 and 22% in 2025, with a Zacks Rank 1 and a Value Score of A [7]

Economic Overview - Small-cap stocks have gained momentum due to declining inflation rates and soft economic data, particularly strong labor market indicators, which have increased expectations for interest rate cuts [1] - The Russell 2000 index surged 3.5% to close at 2,263.67, marking its highest level since January 2022, while the S&P 600 advanced 3.6% to close at 1,418.30, reaching a 52-week high [2] Inflation Data - The consumer price index (CPI) decreased by 0.1% month-over-month in June, contrasting with a consensus estimate of a 0.1% increase, marking the first monthly decline since May 2020 [3] - Year-over-year, CPI increased by 3%, the lowest level in over three years, down from 3.3% in May [3] - The core CPI rose by 0.1% month-over-month in June, lower than the expected 0.2%, with a year-over-year increase of 3.3%, the smallest since April 2021 [3] Federal Reserve Insights - Fed Chairman Jerome Powell indicated that the central bank may implement interest rate cuts before inflation reaches the target of 2%, suggesting a proactive approach to monetary policy [5] - Current benchmark interest rates are between 5.25% and 5.5%, the highest in 23 years, with a 100% probability of a 25 basis points rate cut in September according to the CME FedWatch tool [6] Investment Opportunities - Five small-cap stocks have been identified with strong growth potential for the remainder of 2024, all having positive earnings estimate revisions in the last 60 days and a Zacks Rank 1 (Strong Buy) [7] Company Highlights - **American Axle & Manufacturing Holdings Inc. (AXL)**: Expected revenue growth of 3.1% and earnings growth of over 100% for the current year, with a 5.3% improvement in earnings estimates over the last 60 days [8] - **Enviri Corp. (NVRI)**: Anticipates revenue growth of 17.4% and earnings growth of over 100% for the current year, with earnings estimates improving by more than 100% in the last 60 days [9] - **Groupon Inc. (GRPN)**: Expected revenue growth of 1.3% and earnings growth of over 100% for the current year, with a significant improvement in earnings estimates over the last seven days [10] - **BJ's Restaurants Inc. (BJRI)**: Expected revenue growth of 1.1% and earnings growth of 65.9% for the current year, with a 1.6% improvement in earnings estimates over the last 60 days [11] - **GeneDx Holdings Corp. (WGS)**: Expected revenue growth of 18.9% and earnings growth of 82.3% for the current year, with earnings estimates improving by more than 100% in the last 60 days [11]

Here at Zacks, we focus on our proven ranking system, which places an emphasis on earnings estimates and estimate revisions, to find winning stocks. But we also understand that investors develop their own strategies, so we are constantly looking at the latest trends in value, growth, and momentum to find strong companies for our readers.Of these, value investing is easily one of the most popular ways to find great stocks in any market environment. Value investors use tried-and-true metrics and fundamental a ...

Momentum investing is essentially the opposite of the tried-and-tested Wall Street adage -- "buy low and sell high." Investors following this investing style typically avoid betting on cheap stocks and waiting long for them to recover. They believe instead that one could make far more money in lesser time by "buying high and selling higher."Everyone likes betting on fast-moving trending stocks, but it isn't easy to determine the right entry point. These stocks often lose momentum when their future growth po ...

Market Overview - The U.S. stock market has experienced a significant bull run over the past 18 months, with the Dow, S&P 500, and Nasdaq Composite increasing by 4.2%, 17.6%, and 24.8% year to date, respectively [1] - The S&P 400, which focuses on mid-cap stocks, is up 4.2%, while the Russell 2000, representing small-cap stocks, has only gained 0.8%, and the S&P 600 is down 2.3% year to date [1] Small Business Sentiment - High inflation and interest rates continue to impact U.S. small businesses, with 24% of respondents in the CNBC|SurveyMonkey Small Business Survey believing inflation has peaked, down from 29% in the previous quarter [1] - In the second quarter, 75% of respondents expect inflation to rise, an increase from 69% in the previous quarter [2] - Small Business Confidence remains stable at 47% in the second quarter, consistent with the first quarter and slightly above the 46% reported in the same quarter last year [3] - The NFIB Small Business Optimism Index rose to 91.5 in June from 90.5 in May, marking the highest reading this year but still below the 50-year average of 98 [3] Company Highlights - **American Axle & Manufacturing Holdings Inc. (AXL)**: Expected revenue growth of 3.1% and earnings growth of over 100% for the current year, with a 5.3% improvement in earnings estimates over the last 60 days [4][5] - **EverQuote Inc. (EVER)**: Anticipates revenue growth of 33.9% and earnings growth of over 100% for the current year, with a 25% increase in earnings estimates over the last 60 days [5] - **The Gorman-Rupp Co. (GRC)**: Expected revenue growth of 5.9% and earnings growth of 21.2% for the current year, with a 7.1% improvement in earnings estimates over the last 60 days [6] - **Root Inc. (ROOT)**: Projects revenue growth of over 100% and earnings growth of 60.6% for the current year, with a 16.2% increase in earnings estimates over the last 30 days [7] - **Enviri Corp. (NVRI)**: Expected revenue growth of 17.4% and earnings growth of over 100% for the current year, with earnings estimates improving by more than 100% over the last 60 days [8]

The proven Zacks Rank system focuses on earnings estimates and estimate revisions to find winning stocks. Nevertheless, we know that our readers all have their own perspectives, so we are always looking at the latest trends in value, growth, and momentum to find strong picks.Of these, value investing is easily one of the most popular ways to find great stocks in any market environment. Value investors rely on traditional forms of analysis on key valuation metrics to find stocks that they believe are underva ...

Arrow Exploration Corp (TSX-V:AXL, AIM:AXL, OTC:CSTPF) this week reported impressive results from the first horizontal well on the Ubaque formation at the Carrizales Norte field in the Tapir block in Colombia that exceeded expectations. On the Carrizales Norte "B" pad, the new well, CNB HZ-1, is flowing at a restricted rate of 3,150 barrels a day gross and 1,575 net to Arrow with less than 1% water cut while still recovering load fluid.  CEO Marshall Abbott sat down with Proactive to discuss the achievement ...

Calgary, Alberta--(Newsfile Corp. - June 21, 2024) - Arrow Exploration Corp. (AIM: AXL) (TSXV: AXL) ("Arrow" or the "Company"), the high-growth operator with a portfolio of assets across key Colombian hydrocarbon basins, has been notified that, for estate planning purposes, Gage Jull, Executive Chairman, and Joe McFarlane, Chief Financial Officer, have transferred the following number of common shares of nil par value from sole accounts into joint accounts with their respective spouses:Gage Jull - 5,993,50 ...

Core Viewpoint - American Axle & Manufacturing (AXL) has been upgraded to a Zacks Rank 1 (Strong Buy) due to an upward trend in earnings estimates, indicating a positive earnings outlook that could lead to increased stock price [1][2]. Earnings Estimate Revisions - For the fiscal year ending December 2024, American Axle is expected to earn $0.40 per share, reflecting a significant change of 544.4% from the previous year's reported number [5]. - Over the past three months, the Zacks Consensus Estimate for American Axle has increased by 25.3%, showcasing a steady rise in analysts' earnings estimates [5]. Zacks Rating System - The Zacks rating system classifies stocks into five groups based on earnings estimates, with Zacks Rank 1 stocks historically generating an average annual return of +25% since 1988 [4]. - The upgrade to Zacks Rank 1 places American Axle in the top 5% of Zacks-covered stocks, indicating a strong potential for near-term stock price movement [7]. Market Dynamics - The correlation between changes in earnings estimates and stock price movements is strong, with institutional investors using these estimates to determine fair value, which influences their buying and selling decisions [3][6]. - The Zacks rating system maintains a balanced approach, ensuring that only the top 20% of stocks based on earnings estimate revisions receive favorable ratings, positioning American Axle as a solid candidate for market-beating returns [6].

Core Viewpoint - The article emphasizes the importance of value investing and highlights specific companies, American Axle & Manufacturing Holdings (AXL) and BorgWarner (BWA), as strong value stock picks based on their financial metrics [1][2][3] Company Analysis American Axle & Manufacturing Holdings (AXL) - AXL has a Zacks Rank of 1 (Strong Buy) and an A grade for Value [2] - The stock's Forward P/E ratio is 14.79, lower than the industry's average of 15.51 [2] - AXL's P/B ratio is 1.42, which is attractive compared to the industry's average P/B of 1.90 [2] - Over the past year, AXL's Forward P/E has ranged from a high of 36.52 to a low of -50.32, with a median of 16.16 [2] - The P/B ratio has fluctuated between a high of 1.73 and a low of 1.22, with a median of 1.42 [2] BorgWarner (BWA) - BWA is rated 2 (Buy) with a Value grade of A [2] - The stock is currently trading at a Forward P/E of 8.05, significantly lower than the industry's average of 15.51 [3] - BWA's PEG ratio is 0.79, compared to the industry's average PEG ratio of 0.71 [3] - The Forward P/E for BWA has ranged from a high of 10.16 to a low of 7.25, with a median of 8.57 [3] - BWA's P/B ratio is 1.31, which is also lower than the industry's average P/B of 1.90 [3] - The P/B ratio has varied from a high of 1.56 to a low of 1.14, with a median of 1.31 over the past year [3] Investment Outlook - Both AXL and BWA are identified as potentially undervalued stocks with strong earnings outlooks, making them attractive options for value investors [3]