Zacks Analyst Blog Highlights Asbury Automotive Group, Arcos Dorados Holdings, Fluor and Cushman & Wakefield

For immediate release

Chicago, IL – March 18, 2022 – Zacks.com announces the list of stocks featured in the 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 Asbury Automotive Group Inc. ABG, Arcos Dorados Holdings Inc. ARCO, Fluor Corp. FLR and Cushman & Wakefield CWK.

Here are highlights from Thursday’s analyst blog:

These 4 growth stocks are ripe for the picking

Growth stocks are more risky. You must pay today at the risk of paying later. Okay, all investments are a bit like that, but that’s Continued like that for growth stocks.

And why is it like this?

This is because the same increase from a smaller base is a larger percentage increase. For example, 2/10 is 20% while 2/100 is 2%. Conversely, the larger the revenue or profit base you use, the more difficult it is to generate substantial growth rates. This is the law of large numbers.

So, in general, it’s smaller companies that generate higher growth rates. Which means it’s worth getting in as soon as possible. And it could be when the business is still playing around with an idea rather than making real money. He might still be young; he might lack experience; and he could fight to survive.

So balancing the risk with the potential reward is what we need to do.

Over the past two decades, technology companies have demonstrated that not all growth comes from new ventures. They also showed that growth can come from growth – in pretty incredible ways. But due to the unprecedented deployment of digital infrastructure over the past two years, we should be looking at less heat this year.

This does not mean, of course, that all technology is bad or not worth investing in. Technology, as a whole, is what we Homework But in this market, where the flow of negative news has become the norm and where uncertainties and fears loom (including the fear of a possible recession), there may be an opportunity to invest in sectors other than technology. And always ride the wave of growth.

The Zacks Style Score system provides ratings for each stock’s value, growth, and momentum potential. So, if we are looking for growth stocks, we could benefit immensely from checking a stock’s growth score. Combining this with the Zacks ranking, which also captures recent revisions to estimates (amongst other things), gives us a pretty good idea of ​​the kind of areas we should be investing in.

If we further refine our search to consider only stocks that have positive earnings growth rates, we will further increase our chances of picking winners. Indeed, it is normal for a company in the growth phase to invest heavily in its future growth.

This can have a negative impact on his income. But the result of all these investments is seen in its ability to increase its income. We therefore want to bet on a stock whose earnings are increasing.

And finally, don’t forget to check the rating. Even though we had a catastrophic start to the year and some stocks lost 30%, 50% or even 70% of their value, it should not be taken for granted that the one on which we set our sights had a similar course. destiny. So this too needs to be checked.

Below is a list of companies that exhibit strong growth characteristics while maintaining a reasonable or low valuation.

Asbury Automotive Group Inc.

As one of the largest automotive retailers in the United States, Asbury Automotive provides customers with new and used vehicles and related finance and insurance, vehicle maintenance and repair services, spare parts and service contracts. Used vehicles are also auctioned off at other dealerships.

Asbury shares carry a Zacks Rank #1 (Strong Buy), Growth Score A and VGM Score A, which means that on the face of it, it’s a good investment. Its estimated revenue growth of 68% in 2022 remains in positive territory. The company is also expected to increase its profits by 25.1% this year.

The trend of estimate revisions is impressive. The Zacks consensus estimate for 2022 is up $4.30, or 14.4% over the past 30 days, while the estimate for 2023 is up $3.88, or 14%.

A price-to-sales ratio of less than 1 indicates the stock is trading at a discount to its potential sell-off, while a price-to-earnings growth ratio of less than 1 indicates that a company’s earnings are undervalued. In the case of Asbury, the P/S ratio is 0.44 while the PEG ratio is 0.29.

The shares are therefore clearly worth buying.

Arcos DoradosHoldings Inc.

Arcos Dorados is a McDonald’s franchisee with the exclusive right to own, operate and franchise McDonald’s restaurants in 20 countries and territories in Latin America and the Caribbean.

Arcos carries a Zacks Rank #2 (Buy), Growth Score A and VGM Score A.

Analysts currently expect its revenue to grow 35.0% in 2022 and 9.2% in 2023. Its earnings are expected to grow 120.8% in 2022 and 148.9% in 2023.

And that follows a 6 cent (66.7%) increase in its 2022 revenue estimate for 2022 and a 5 cent (15.6%) increase in its 2023 revenue estimate over the past 30 days. .

All of this is available at an attractive valuation (P/S of 0.62 and PEG of 0.80).

FluorineCorp.

Fluor provides engineering, procurement, construction and maintenance (EPCM) services through a number of subsidiaries. It also provides operation and maintenance services to large industrial customers. As of the first quarter of 2021, Fluor operates through four business segments: Energy Solutions, Urban Solutions, Mission Solutions and Other with customers in a wide range of industries, including chemicals, energy, construction, l mining, life sciences, staffing services and government.

With a Zacks Rank #1, Growth Score A, and VGM Score A, Fluor is an attractive stock.

Analysts expect Fluor to deliver revenue and profit growth of 10% and 42.6% this year and another 7% and 33.6% in 2023.

They have therefore increased their 2022 revenue estimate by 22 cents (19.6%) over the past 30 days and their 2023 revenue estimate by 3 cents (1.7%) over the same period.

Additionally, the valuation looks cheap with sells at 0.32X and PEG at 0.62.

Cushman and Wakefield

Cushman & Wakefield plc is a real estate services company. It acquires and develops commercial properties and provides real estate leasing, facilities management, tenant representation and appraisal services.

Cushman & Wakefield is another solid growth stock, thanks to its Zacks No. 1 ranking, growth score of A, and VGM score of A.

Analysts are betting that the company will generate revenue growth of 8.2% in 2022 and 5.8% in 2023 and earnings growth of 18.6% in 2022 and 6.6% in 2023. They noted their 2022 earnings estimates of 35 cents (16.9%) in the past 30 days and their 2023 revenue estimates of 28 cents (12.2%).

The P/S ratio of 0.48 and the PEG ratio of 0.83 are other buying incentives.

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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. To visit https://www.zacks.com/performance for more information on the performance figures displayed in this press release.

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Fluor Corporation (FLR): Free Stock Analysis Report

Asbury Automotive Group, Inc. (ABG): Free Inventory Analysis Report

Arcos Dorados Holdings Inc. (ARCO): Free Stock Analysis Report

Cushman & Wakefield PLC (CWK): Free Stock Analysis Report

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