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4 GARP Picks to Shield Your Portfolio from September Meltdown
The already muted month of September witnessed another day of Wall Street meltdown yesterday. The Dow Jones Industrial Average fell as much as 509.72 points or 1.8%. The S&P 500 and Nasdaq Composite dived 1.2% and 0.1%, respectively on Sep 21, lower than the previous day’s close. This was the fourth straight day of losses for the S&P 500.
Although technology stocks registered a last-hour rebound from their earlier week’s losses (primarily on growing positive market sentiment related to Microsoft’s plan of $7.5 billion acquisition of ZeniMax), they could not offset the collective sharp fall in stocks of major healthcare and financial benchmark participants yesterday.
The Economic Unrest at a Glance
The new wave of coronavirus cases in the United States following a rushed ‘unlocking’ and the forecast of a significant fall in global GDP in 2020 has pushed the market into sell territory so far in September. This has resulted in another slew of fresh layoffs.
The September data by the Department of Labor showed that from mid-March through late August, 59.3 million Americans filed for unemployment insurance. The number of insured unemployed workers was 13.3 million in late August. Though this was lower than the peak achieved in mid-May (25 million), the figure still exceeds the majority of market watchers’ initial projection as they had expected a faster broad-based recovery.
The Fed’s last-week’s economic outlook (that signaled that interest rates are likely to stay near zero through 2023) along with the grim pandemic scenario in Europe played a crucial role in dragging market sentiment down.
Added to this, the President’s recent plans to introduce a stimulus bill of a massive $1.5 trillion are also indicative that an economic recovery is unlikely any time soon. In this regard, we note that the International Monetary Fund’s (IMF) estimate about the coronavirus-induced cumulative stimulus package was $18 trillion globally for 2020. The United States’ already-running stimulus packages currently occupy 13.2% of its GDP. This is undoubtedly going to create further pressure on the Federal Reserve balance sheet.
The Contrary Story
Amid these, the U.S. Bureau of Labor Statistics’ September-released data was positive, claiming a 1.4% improvement in non-farm employment, reduction in the total number of unemployed Americans to 13.6 million and lowering of the unemployment rate to 8.4%.
Needless to say, the contrasting economic data has completely baffled the investment world.
Disclosure: Officers, directors and/or employees of Zacks Investment Research may own or have sold short securities and/or hold long and/or short positions in options that are mentioned in this material. An affiliated investment advisory firm may own or have sold short securities and/or hold long and/or short positions in options that are mentioned in this material.
About Screen of the Week
Zacks.com created the first and best screening system on the web earning the distinction as the "#1 site for screening stocks" by Money Magazine. But powerful screening tools is just the start. That is why Zacks created the Screen of the Week to highlight profitable stock picking strategies that investors can actively use.
Strong Stocks that Should Be in the News
Many are little publicized and fly under the Wall Street radar. They're virtually unknown to the general public. Yet today's 220 Zacks Rank #1 "Strong Buys" were generated by the stock-picking system that has more than doubled the market from 1988 through 2016. Its average gain has been a stellar +25% per year. See these high-potential stocks free >>.
Zacks Investment Research is under common control with affiliated entities (including a broker-dealer and an investment adviser), which may engage in transactions involving the foregoing securities for the clients of such affiliates.
Zacks.com provides investment resources and informs you of these resources, which you may choose to use in making your own investment decisions. Zacks is providing information on this resource to you subject to the Zacks "Terms and Conditions of Service" disclaimer. www.zacks.com/disclaimer.
Past performance is no guarantee of future results. Inherent in any investment is the potential for loss. This material is being provided for informational purposes only and nothing herein constitutes investment, legal, accounting or tax advice, or a recommendation to buy, sell or hold a security. No recommendation or advice is being given as to whether any investment is suitable for a particular investor. It should not be assumed that any investments in securities, companies, sectors or markets identified and described were or will be profitable. All information is current as of the date of herein and is subject to change without notice. Any views or opinions expressed may not reflect those of the firm as a whole. Zacks Investment Research does not engage in investment banking, market making or asset management activities of any securities. These returns are from hypothetical portfolios consisting of stocks with Zacks Rank = 1 that were rebalanced monthly with zero transaction costs. These are not the returns of actual portfolios of stocks. The S&P 500 is an unmanaged index. Visit http://www.zacks.com/performance for information about the performance numbers displayed in this press release.
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Zacks.com featured highlights include: DVA, LEN, PCAR and MAS
For Immediate Release
Chicago, IL – September 23, 2020 - Stocks in this week’s article are DaVita Inc. (DVA - Free Report) , Lennar Corp. (LEN - Free Report) , PACCAR Inc. (PCAR - Free Report) and Masco Corp. (MAS - Free Report) .
4 GARP Picks to Shield Your Portfolio from September Meltdown
The already muted month of September witnessed another day of Wall Street meltdown yesterday. The Dow Jones Industrial Average fell as much as 509.72 points or 1.8%. The S&P 500 and Nasdaq Composite dived 1.2% and 0.1%, respectively on Sep 21, lower than the previous day’s close. This was the fourth straight day of losses for the S&P 500.
Although technology stocks registered a last-hour rebound from their earlier week’s losses (primarily on growing positive market sentiment related to Microsoft’s plan of $7.5 billion acquisition of ZeniMax), they could not offset the collective sharp fall in stocks of major healthcare and financial benchmark participants yesterday.
The Economic Unrest at a Glance
The new wave of coronavirus cases in the United States following a rushed ‘unlocking’ and the forecast of a significant fall in global GDP in 2020 has pushed the market into sell territory so far in September. This has resulted in another slew of fresh layoffs.
The September data by the Department of Labor showed that from mid-March through late August, 59.3 million Americans filed for unemployment insurance. The number of insured unemployed workers was 13.3 million in late August. Though this was lower than the peak achieved in mid-May (25 million), the figure still exceeds the majority of market watchers’ initial projection as they had expected a faster broad-based recovery.
The Fed’s last-week’s economic outlook (that signaled that interest rates are likely to stay near zero through 2023) along with the grim pandemic scenario in Europe played a crucial role in dragging market sentiment down.
Added to this, the President’s recent plans to introduce a stimulus bill of a massive $1.5 trillion are also indicative that an economic recovery is unlikely any time soon. In this regard, we note that the International Monetary Fund’s (IMF) estimate about the coronavirus-induced cumulative stimulus package was $18 trillion globally for 2020. The United States’ already-running stimulus packages currently occupy 13.2% of its GDP. This is undoubtedly going to create further pressure on the Federal Reserve balance sheet.
The Contrary Story
Amid these, the U.S. Bureau of Labor Statistics’ September-released data was positive, claiming a 1.4% improvement in non-farm employment, reduction in the total number of unemployed Americans to 13.6 million and lowering of the unemployment rate to 8.4%.
Needless to say, the contrasting economic data has completely baffled the investment world.
For the rest of this Screen of the Week article please visit Zacks.com at: https://www.zacks.com/stock/news/1061730/4-garp-picks-to-shield-your-portfolio-from-september-meltdown
Disclosure: Officers, directors and/or employees of Zacks Investment Research may own or have sold short securities and/or hold long and/or short positions in options that are mentioned in this material. An affiliated investment advisory firm may own or have sold short securities and/or hold long and/or short positions in options that are mentioned in this material.
About Screen of the Week
Zacks.com created the first and best screening system on the web earning the distinction as the "#1 site for screening stocks" by Money Magazine. But powerful screening tools is just the start. That is why Zacks created the Screen of the Week to highlight profitable stock picking strategies that investors can actively use.
Strong Stocks that Should Be in the News
Many are little publicized and fly under the Wall Street radar. They're virtually unknown to the general public. Yet today's 220 Zacks Rank #1 "Strong Buys" were generated by the stock-picking system that has more than doubled the market from 1988 through 2016. Its average gain has been a stellar +25% per year. See these high-potential stocks free >>.
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Zacks.com provides investment resources and informs you of these resources, which you may choose to use in making your own investment decisions. Zacks is providing information on this resource to you subject to the Zacks "Terms and Conditions of Service" disclaimer. www.zacks.com/disclaimer.
Past performance is no guarantee of future results. Inherent in any investment is the potential for loss. This material is being provided for informational purposes only and nothing herein constitutes investment, legal, accounting or tax advice, or a recommendation to buy, sell or hold a security. No recommendation or advice is being given as to whether any investment is suitable for a particular investor. It should not be assumed that any investments in securities, companies, sectors or markets identified and described were or will be profitable. All information is current as of the date of herein and is subject to change without notice. Any views or opinions expressed may not reflect those of the firm as a whole. Zacks Investment Research does not engage in investment banking, market making or asset management activities of any securities. These returns are from hypothetical portfolios consisting of stocks with Zacks Rank = 1 that were rebalanced monthly with zero transaction costs. These are not the returns of actual portfolios of stocks. The S&P 500 is an unmanaged index. Visit http://www.zacks.com/performance for information about the performance numbers displayed in this press release.