New Strong Sell Stocks for July 3rd

Zacks has added Alliance Resource Partners (ARLP), B&G Foods (BGS), and Altice USA (ATUS) to its Strong Sell list, citing significant downward revisions in their current year earnings estimates, ranging from approximately 6% to 11.2% over the past 60 days. Conversely, Zacks also highlighted an unnamed chemical company as its "Single Best Pick to Double," noting its 65% gain last year, strong demand, soaring 2022 earnings estimates, and a $1.5 billion share repurchase program, positioning it for substantial upside comparable to past outperformers like NVIDIA.

Analysis

Zacks has downgraded Alliance Resource Partners (ARLP), B&G Foods (BGS), and Altice USA (ATUS) to a 'Strong Sell' rating, a move predicated on significant negative revisions to their current year earnings estimates over the last 60 days. The magnitude of these downward revisions is notable, with Altice USA's consensus estimate cut by 11.2%, Alliance Resource Partners' by 8.2%, and B&G Foods' by nearly 6%. This data points to a material deterioration in the near-term fundamental outlook for these companies across the natural resources, consumer staples, and communications sectors. In stark contrast, the report heavily promotes an unidentified chemical company as a top pick with potential for over 100% upside. The bullish thesis for this speculative opportunity is built on strong trailing performance (up 65% last year), soaring 2022 earnings estimates, and a substantial $1.5 billion share repurchase program, suggesting a combination of robust demand and shareholder-friendly capital allocation.

Key Decisions for Investors

• Investors with positions in ARLP, BGS, or ATUS should re-evaluate their holdings given the clear signal of deteriorating earnings momentum reflected in the recent significant downward estimate revisions.
• The 'Strong Sell' ratings on these three diverse companies underscore the importance of monitoring analyst earnings revisions as a leading indicator of potential stock underperformance.
• While the unnamed chemical company's profile is compelling, the recommendation is speculative and requires independent due diligence to identify the firm and validate the claims regarding its valuation and buyback program before any capital commitment.