For immediate release
Chicago, IL – March 1, 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: Trane Technologies plc TT, Verisk Analytics, Inc. VRSK and The Interpublic Group of Companies, Inc. IPG.
Here are the highlights from Monday’s analyst blog:
3 business services stocks with impressive dividend yields
the Business services The sector has gained momentum thanks to the gradual resumption of business activities, increased adoption and success of the work-from-home model, increased demand for risk mitigation and consulting services, and expertise in improving operational efficiency and reducing costs. Providers of essential and non-deferrable services, such as waste removal and building maintenance, remained resilient to pandemic-induced disruptions.
Due to its broadly diversified nature, the sector has been greatly aided by the recovery of the economy, manufacturing and non-manufacturing strength, and increased vaccination campaigns. While the Omicron and Delta variant cases have raised concerns lately, the strength in manufacturing and services has acted as a tailwind for the sector, which is a major beneficiary of the wider economy. Notably, the Institute for Supply Management measured that the manufacturing PMI and the services PMI reached the 20and consecutive month of expansion in January.
Meanwhile, a steady recovery is evident from the latest GDP figure for the fourth quarter of 2021, which according to the “second” estimate released by the Bureau of Economic Analysis, grew at an annual rate of 7%, higher than the 2.3% growth observed in the third quarter of 2021.
Given the favorable trends mentioned above, a few business service companies such as Trane Technologies plc, Verisk Analytics, Inc. andThe Interpublic, Inc. group of companies chose to reward their shareholders with higher dividends. We believe that consistency in rewarding shareholders through the payment of dividends or share buybacks not only builds investor confidence, but also has a positive impact on a company’s earnings per share.
All three stocks currently carry a Zacks rank of No. 3 (Hold). You can see the full list of today’s Zacks #1 Rank (Strong Buy) stocks here.
3 companies that have rewarded shareholders
Trane Technology: This Ireland-based company raised its quarterly dividend rate by 14%, from 59 cents per share to 67 cents per share. The enhanced dividend will be paid on March 31, 2022 to shareholders of record at the close of business on March 4.
Trane Technologies remains focused on improving the quality of its products and services and on operational efficiency in order to achieve sustainable improvement in profits and cash flow. It prioritizes operating system improvement and innovation through business transformation initiatives and prudent investment. Trane has a history of buying back stock and paying dividends regularly.
The Zacks consensus estimate for Trane Technologies 2022 EPS has risen 0.4% over the past 90 days. The company’s expected earnings growth rate for the year is 15.6%. Additionally, it has a long-term (three to five year) expected earnings growth rate of 18.6%. The company has a surprise on earnings for the last four quarters of 16.1% on average.
Trane Technologies plc price-consensus-eps-surprise-chart | Trane Technologies plc Quote
Verisk: This New Jersey-based data analytics solutions provider increased its quarterly dividend by 6.9%, from 29 cents per share to 31 cents per share. The enhanced dividend will be paid on March 31, 2022 to shareholders of record on March 15, 2022.
Strength in all segments helped Verisk’s top line. The company has a robust growth strategy that focuses on organic growth, product development and acquisitions. Verisk’s expertise in providing predictive data analytics and decision support solutions gives it an edge over its competitors. The company has acquired and invested in companies around the world to expand its data and analytics capabilities. Organic growth within the business, lower interest expense, effective tax rate and average number of shares contributed to Verisk’s bottom line.
The Zacks consensus estimate for Verisk’s 2022 EPS has risen 0.8% over the past 90 days. The company’s expected earnings growth rate for the year is 11.3%. Additionally, it has a long-term (three to five year) expected earnings growth rate of 12%. Verisk shares are up 7.5% over the past year.
Verisk Analytics, Inc. price-consensus-eps-surprise-chart | Quote from Verisk Analytics, Inc.
interpublic: This New York-based advertising and marketing services provider announced a 7% dividend hike, raising its quarterly cash dividend from 27 cents per share to 29 cents.
Interpublic’s digital capabilities, diverse workforce and geographic reach provide a distinctive competitive advantage. It has acquired and invested in companies around the world, in order to expand its product portfolio and adapt to rapidly changing marketing services and media perspectives. The favorable impact of organic net revenues and foreign exchange movements helped Interpublic’s turnover.
The Zacks consensus estimate for Interpublic’s 2022 EPS is up 1.5% over the past 90 days. The company’s expected earnings growth rate for the year is 3.5%. Additionally, it has a long-term (three to five year) expected earnings growth rate of 11.8%. The company has a four-quarter earnings surprise of 66.9% on average. Shares of Interpublic are up 39.9% over the past year.
Interpublic Group of Companies, Inc. The price-consensus-eps-surprise-chart | Interpublic Group of Companies, Inc. The citation
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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.
Zacks names ‘only one best choice for doubling up’
From thousands of stocks, 5 Zacks experts have each picked their favorite to skyrocket by +100% or more in the coming months. Of these 5, Research Director Sheraz Mian selects one to have the most explosive advantage of all.
It’s a little-known chemical company that’s up 65% year-on-year, but still very cheap. With relentless demand, rising earnings estimates for 2022 and $1.5 billion for stock buybacks, retail investors could step in at any time.
This company could rival or surpass other recent Zacks stocks which are expected to double, such as Boston Beer Company which jumped +143.0% in just over 9 months and NVIDIA which jumped +175.9% in one. year.
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Interpublic Group of Companies, Inc. The (IPG): Free Stock Analysis Report
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Trane Technologies plc (TT): Free Inventory Analysis Report
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