Analysts Offer Insights on Services Companies: Zumiez Inc (NASDAQ: ZUMZ) and Nexstar (NASDAQ: NXST)

There’s a lot to be optimistic about in the Services sector as 2 analysts just weighed in on Zumiez Inc (NASDAQ: ZUMZ) and Nexstar (NASDAQ: NXST) with bullish sentiments.

Zumiez Inc (NASDAQ: ZUMZ)

In a report released today, Jeff Van Sinderen from B.Riley FBR assigned a Buy rating to Zumiez Inc (NASDAQ: ZUMZ), with a price target of $27.50. The company’s shares opened today at $23.95, close to its 52-week high of $26.30.

Van Sinderen said:

“Zumiez (ZUMZ) reports 1Q results AMC on 6/7. Given comps, total sales and upwardly revised guidance metrics for 1Q, provided with the company’s April sales report AMC on 5/9, we are publishing an early earnings preview. April comps came in +1.7% vs. our -6% estimate and +7.8% LY . Drivers of the comp were primarily increased transactions, partly offset by a decline in dollars per transaction with UPT down, partially offset by AUR up. Men’s, women’s and footwear (running 16% of sales vs. 22% historically) were the best performing categories, while hard goods and accessories continued to lag. We would point out that footwear has been running positive for approximately two quarters, after a multi-year “dry spell.” “Mapril” comps were +7.9% vs. +3.9% LY .”

According to TipRanks.com, Sinderen is ranked 0 out of 5 stars with an average return of -3.5% and a 45.3% success rate. Sinderen covers the Services sector, focusing on stocks such as Tilly’s Inc, Kirkland’s, and JC Penney.

Zumiez Inc has an analyst consensus of Moderate Buy, with a price target consensus of $28.

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Nexstar (NASDAQ: NXST)

In a report released yesterday, Barton Crockett from B.Riley FBR assigned a Buy rating to Nexstar (NASDAQ: NXST), with a price target of $99. The company’s shares opened today at $63.40.

Crockett commented:

“Nexstar’s (Buy, $99 PT) 1Q18 earnings report pre-open seemed to be fine and overall in line with consensus views, which to us seems at odds with a 12% decline in the shares over the last three months (versus a 2% rise in the S&P 500). The report bolsters our view that the share weakness is more a reflection of sentiment for the sector than anything happening at Nexstar, which is upping cash returns, including share repurchase.”

According to TipRanks.com, Crockett is a 4-star analyst with an average return of 4.6% and a 56.3% success rate. Crockett covers the Services sector, focusing on stocks such as Liberty Media Corporation Series A Liberty SiriusXM Common Stock, Qurate Retail Group Inc, and Sirius XM Holdings Inc.

Currently, the analyst consensus on Nexstar is Strong Buy and the average price target is $94.20, representing a 48.6% upside.

In a report issued on May 2, Benchmark Co. also maintained a Buy rating on the stock with a $94 price target.

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