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The Zacks Analyst Blog Highlights: Eagle Bulk Shipping, Build-A-Bear Workshop, Genco Shipping & Trading, Bluegreen Vacations and Alpha and Omega Semiconductor

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For Immediate Release

Chicago, IL – September 17, 2021 – 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: Eagle Bulk Shipping Inc. (EGLE - Free Report) , Build-A-Bear Workshop, Inc. (BBW - Free Report) , Genco Shipping & Trading Limited (GNK - Free Report) , Bluegreen Vacations Holding Corporation and Alpha and Omega Semiconductor Limited (AOSL - Free Report) .

Here are highlights from Thursday’s Analyst Blog:

These Hidden Gems Have Surged in the Past Month

Volatility has shown up again on Wall Street after an impressive rally in the first eight months of the year. Month to date, the three major large-cap-centric indexes — the Dow, the S&P 500 and the Nasdaq Composite — are in negative territory. The small-cap-specific indexes — the Russell 2000 and the S&P 600 — have dropped 1.7% and 2.4%, respectively, month to date.

While market participants are predominantly concerned about the performance of large-cap stocks, several small-cap stocks have surged in the past month defying market volatility. A handful of these stocks sport a Zacks Rank #1 (Strong Buy) with solid upside left. At this stage, investment in these stocks should be prudent in the near future.

Small Business Optimism Rebounds in August

On Sep 14, the National Federation of Independent Business (NFIB) reported that its Small Business Optimism Index rose 0.4 points in August to reach 100.1 from 99.7 in July. Market participants were expecting this index to pullback to 99 on average. Five out of 10 sub-components of the index rose last month while four fell and one remained unchanged with the previous month.

The faster-than-expected reopening of the U.S. economy buoyed by the nationwide deployment of COVID-19 vaccines and massive pent-up demand for both intermediary and final products ramped up small business activities.

However, a shortage of skilled manpower and prolonged disturbance in the supply-chain system took a tool on small business operators. The percentage of firms with unfilled job openings increased by one point to a record high 50%. The percentage of firms planning to hire more manpower advanced five points to a record-high 32%.

Importance of Small Businesses

Small businesses create a significant number of jobs in the U.S. economy. More than 50% of the newly created jobs in the private sector originate here. These people constitute a large part of customers for big businesses.

Moreover, small companies are a major part of the supply chain management systems of large companies for innovative and technologically superior inputs. Additionally, small businesses more often than not form a vital cog in corporate America's customer base.

Given their small-scale of operations, small businesses are generally cash-starved. These organizations operate on a thin profit margin and most new businesses are yet to achieve profitability. Consequently, the reopening of the economy immensely benefited small businesses.

Moreover, the Fed is unlikely to hike the benchmark interest rate from its current range of 0-0.25% before late 2023. Small businesses depend extensively on easy access to credit at a cheap rate in order to expand their operations. Therefore, the central bank's decision to pursue easy monetary policies will significantly benefit small businesses.

Our Top Picks

We have narrowed down our search to five small business (market capital < 1 billion) operators that have surged in the past month with moe upside left for the rest of 2021. These stocks have seen positive earnings estimate revisions within the last 60 days. Each of our picks sports a Zacks Rank #1 (Strong Buy). You can see the complete list of today's Zacks #1 Rank stocks here.

Eagle Bulk Shipping is engaged in the ocean transportation of dry bulk cargoes worldwide. It owns, charters, and operates dry bulk vessels that transport a range of bulk cargoes, including iron ore, coal, grains, fertilizers, steel products, petcoke, cement and forest products.

The company has an expected earnings growth rate of more than 100% for the current year. The Zacks Consensus Estimate for current-year earnings improved 27.8% over the last 60 days. The stock price has jumped 21% in the past month.

Build-A-Bear Workshop operates as a multi-channel retailer of plush animals and related products. It operates through three segments: Direct-to-Consumer, International Franchising, and Commercial.

The company has an expected earnings growth rate of more than 100% for the current year (ending January 2022). The Zacks Consensus Estimate for current-year earnings improved 73.1% over the last 30 days. The stock price has climbed 20.7% in the past month.

Genco Shipping & Trading is engaged in the ocean transportation of dry bulk cargoes worldwide. The company, through the ownership and operation of dry bulk carrier vessels, transports iron ore, coal, grains, steel products, and other dry-bulk cargoes.

The company has an expected earnings growth rate of more than 100% for the current year. The Zacks Consensus Estimate for current-year earnings improved 4.7% over the last 7 days. The stock price has rallied 20.4% in the past month.

Bluegreen Vacations Holding Corp. operates as a vacation ownership company. It markets and sells vacation ownership interests and manages resorts in leisure and urban destinations, including Orlando, Las Vegas, Myrtle Beach, Charleston and New Orleans, and others.

The company has an expected earnings growth rate of more than 100% for the current year. The Zacks Consensus Estimate for current-year earnings improved 91.5% over the last 60 days. The stock price has appreciated 20% in the past month.

Alpha and Omega Semiconductor designs, develops, and supplies power semiconductor products for computing, consumer electronics, communication, and industrial applications in Hong Kong, China, South Korea, the United States, and internationally.

The company has an expected earnings growth rate of 16.4% for the current year (ending June 2022). The Zacks Consensus Estimate for current-year earnings improved 19.2% over the last 60 days. The stock price has advanced 10.3% in the past month.

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