The Zacks Analyst Blog Highlights Arm, Tokyo Electron and The Progressive

For Immediate Release

Chicago, IL - March 5, 2024 -
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: Arm Holdings PLC
ARM, Tokyo
Electron
TOELY and The
Progressive
PGR.

Here are highlights from Monday's
Analyst Blog:

New Non-Farm Payroll Number:
Global Week Ahead

In the Global Week Ahead, U.S. jobs
data, testimony by the Federal Reserve Chief, a key date in the
U.S. election calendar and President Joe Biden's State of the Union
address happen.

That's one side of the Atlantic. On
the other is an ECB meeting and U.K. budget.

Asia's not missing out, China's
annual parliament meeting takes place against a backdrop of pain in
the world's No.2 economy.

Next are Reuters' five world market themes, reordered for
equity traders--

(1) On Friday, traders get the latest U.S. nonfarm payroll
numbers for FEB.

U.S. earnings season is winding
down but investors don't have much down-time with a Congressional
testimony from Fed Chairman Jerome Powell on Wednesday and
Thursday, and February U.S. jobs data on Friday.

Excitement over AI's business
potential has helped drive stocks to fresh record highs, even as a
robust economy dampens rate cut bets.

Signs of continued jobs market
strength or a hawkish message from the Fed could make it harder for
investors to shrug off concerns about how higher-for-longer
interest rates could impact markets and the economy.

Among those effects is a rise in
Treasury yields -- potentially disruptive for stocks if it
continues. Ten-year yields are up 40 bps this year.

Economists polled by Reuters expect
the U.S. economy created 188,000 new jobs, after a blowout 353,000
jobs in January.

(2) On Thursday, the European Central Bank (ECB)
meets.

The ECB meets on Thursday and the
focus is on whether policy makers will repeat that it's too early
to discuss rate cuts or open the door to a move.

Rates have been on hold since
September and the ECB has pushed back on rate cut talk, insisting
that even if the next move is a reduction, that will be later than
traders anticipate.

Wage pressures, after all, remain
high -- even if they are easing.

So, having priced 150 bps worth of
rate cuts at the start of 2024, markets now expect roughly 90 bps
with a first move fully priced for June.

Pricing also suggests the ECB could
cut before the Fed does -- not surprising perhaps, given a
relatively weak Eurozone economy. The ECB typically moves after the
Fed.

(3) The Super Tuesday U.S. presidential primary.

It may be too early to properly
price and position for November's U.S. Presidential election, but
'Super Tuesday' will shine a light on the political divisions and
challenges facing America.

And the debt ceiling issue is back
as well. U.S. Congress on Thursday approved a short-term stopgap
measure to avert a partial federal government shutdown but only by
a week.

The Treasury market absorbed $169
billion of debt issuance this week with relative ease. But
polarized politics over the government's finances are a reminder
that the national debt is $34 trillion and counting, so Treasuries
could feel some heat.

In an election year, however,
aggressive fiscal consolidation is unlikely. Muddling through with
temporary spending measures is more likely.

Super Tuesday is the day in the
U.S. presidential primary cycle when the most states vote, with
Biden and Donald Trump expected to secure the Democratic and
Republican nominations.

(4) Where do Mainland China's policies and financial
markets go from here?

Hopes are high for fresh China
stimulus when the National People's Congress begins its annual
session on Tuesday, aimed at reviving a crumbling property sector,
and invigorating moribund consumers given the worst deflation since
the global financial crisis.

There's a lot more at stake than
meeting what will likely be another 5% economic growth target this
year.

Chinese stocks, have recovered from
five-year lows hit in early February, snapping a six-month losing
run with their best monthly performance since late 2022. The main
drivers have been state-led stock buying and tighter regulations on
short selling.

But it's hard to forget that the
slide to five-year lows were driven by dashed hopes for steps from
Beijing. That puts the market spotlight firmly on what comes out in
the days ahead.

(5) On Wednesday, the latest U.K. budget gets
presented.

British finance minister Jeremy
Hunt must find a way to cut taxes in Wednesday's budget to help
Prime Minister Rishi Sunak's bleak election prospects without
causing another upset in the bond markets.

Memories of former premier Liz
Truss's "mini-budget" crisis are still fresh and the fiscal outlook
has shown no improvement since then, leaving Hunt with little room
for maneuver when he stands before parliament on March 6.

But media speculation has focused
on possible income tax cuts or another reduction in social security
rates, and investors are expecting Hunt to use most, if not all, of
the fiscal "headroom" he has.

Zacks #1 Rank (STRONG BUY)
Stocks

I highlighted a 2 semi chip stocks
and a big P&C insurer on out #1 list this week.

(1) Arm Holdings PLC: This is a $141 stock with a
market cap of $145B in the Technology Services industry. I see a
Zacks Value score of F, a Zacks Growth score of B and a Zacks
Momentum score of D.

Arm Holdings Ltd. provides
processor designs and software platforms. Arm Holdings Limited is
based in Cambridge, UK.

(2) Tokyo Electron: This is a $124 stock with a
market cap of $117B in the Semiconductor Discretes industry. I see
a Zacks Value score of F, a Zacks Growth score of B, and a Zacks
Momentum score of C.

Tokyo Electron Ltd. is a company
mainly engaged in the manufacture and sale of electronic products
for industrial uses.

TOELY is the largest manufacturer
of IC and FPD production equipment in Japan and the third largest
in the world.

The Semiconductor Manufacturing
Equipment segment is engaged in the provision of coaters and
developers for wafer processing, plasma etching equipment, thermal
processing systems and others.

The Flat-panel Display (FPD)
Manufacturing Equipment segment is engaged in the provision of
coaters and developers for FPD manufacturing, plasma etching/ashing
apparatus and others.

The Electronic Component and
Information Communication Equipment segment provides semiconductor
products such as integrated circuits (ICs), computer and network
equipment and software. In addition, the Company is also involved
in logistics, facility management and insurance businesses.

(3) The Progressive: This is a $190 stock with a
market cap of $111B in the Property and Casualty Insurance
industry. I see a Zacks Value score of D, a Zacks Growth score of
B, and a Zacks Momentum score of A.

The Progressive Corporation is one
of the major auto insurers in the country. Progressive is a leading
independent agency writer of private passenger auto coverage, and
the market share leader for the motorcycle products since 1998.

Their Personal Lines segment writes
insurance for private passenger automobiles, recreational and other
vehicles. This business generally offers more than one program in a
single state, with each program targeted toward a specific
distribution channel, market, or customer group. Personal Lines
products comprise insurance for personal autos and special lines
products.

Their Commercial Lines segment
writes primary liability and physical damage insurance for
automobiles and trucks owned by small businesses. The Commercial
Lines business, which is primarily distributed through the
independent agency channel, operates in the business auto and
specialty truck markets.

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