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Welcome to Episode #368 of the Zacks Market Edge Podcast.
Every week, host and Zacks stock strategist, Tracey Ryniec, will be joined by guests to discuss the hottest investing topics in stocks, bonds and ETFs and how it impacts your life.
This week, Tracey is joined by Zacks Chief Equity Strategist, and economist, John Blank, to discuss their favorite topic: will there be a recession this year?
It has been a while since John sat down on the podcast to talk about the economy. He was last on in March 2023, when the banking crisis was ongoing. Back then, neither John nor Tracey saw an imminent recession. What about now?
Yes, or No, on a Recession This Year?
The employment data is still not signaling a recession. The latest BLS employment report, for June 2023, came in with a 3.6% unemployment rate and the weekly jobless claims continue to trend down, instead of move higher. The latest weekly jobless claims showed 221,000 initial claims, which is well under the 300,000+ that John says they must be at if a recession is looming.
Is the recession being pushed back into 2024 or maybe even beyond?
United Rentals is the largest equipment rental company in North America. Thanks to the infrastructure bill and the Chips Act, there’s a lot of construction going on. It could be a catalyst for United Rentals.
Shares of United Rentals are up 31.7% year-to-date and are near 5-year highs. But it’s still cheap, with a forward P/E of 11.7. United Rentals now pays a dividend, currently yielding 1.3%.
Herc Holdings is also an equipment rental company. Herc Holdings is expected to see double digit earnings growth in 2023 and 2024.
Shares of Herc Holdings are up just 0.7% year-to-date after selling off early in the year, but over the last 3 months, they’ve spiked 31.3%. Herc is still cheap with a forward P/E of 10.5. It also pays a dividend yielding 1.9%.
MasTec is a national infrastructure construction company operating in wind and solar farms, wireless, satellite communications and natural gas, among others.
Shares of MasTec have surged 43% in 2023 and are at 5-year highs. It now trades with a forward P/E of 27 but earnings are expected to jump 48.5% this year. It reports earnings on Aug 3, 2023.
International Paper is a $12.7 billion packaging company. It pays a big dividend, currently yielding 5.2%.
Shares of International Paper are up only 5.7% year-to-date. Earnings, however, are expected to fall 33% this year. Is it cheap? International Paper trades with a forward P/E of 16.9, which is below the average of the S&P 500, but a true value stock has a forward P/E under 15.
Whirlpool is a kitchen and laundry appliance manufacturer with iconic brands such as Whirlpool, KitchenAid and Maytag. Earnings soared during the pandemic as new home sales and home renovations boomed.
But earnings of Whirlpool are expected to fall 16.3% this year. Shares of Whirlpool are up just 2.9% year-to-date and are still down 34.3% over the 2-year stack. It’s cheap though. Whirlpool trades at 8.7x. It also pays a juicy dividend, yielding 4.9%.
Should Whirlpool be on your short list?
Will We See a Recession this Year?
Listen, or watch, this week’s podcast to find out. There’s now two ways to enjoy the podcast. You can watch the video podcast, as well as listen on our typical audio version. Enjoy.
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Will There be a Recession in 2023?
Welcome to Episode #368 of the Zacks Market Edge Podcast.
Every week, host and Zacks stock strategist, Tracey Ryniec, will be joined by guests to discuss the hottest investing topics in stocks, bonds and ETFs and how it impacts your life.
This week, Tracey is joined by Zacks Chief Equity Strategist, and economist, John Blank, to discuss their favorite topic: will there be a recession this year?
It has been a while since John sat down on the podcast to talk about the economy. He was last on in March 2023, when the banking crisis was ongoing. Back then, neither John nor Tracey saw an imminent recession. What about now?
Yes, or No, on a Recession This Year?
The employment data is still not signaling a recession. The latest BLS employment report, for June 2023, came in with a 3.6% unemployment rate and the weekly jobless claims continue to trend down, instead of move higher. The latest weekly jobless claims showed 221,000 initial claims, which is well under the 300,000+ that John says they must be at if a recession is looming.
Is the recession being pushed back into 2024 or maybe even beyond?
And if so, how do you invest right now?
5 Stocks to Keep on Your Watch List
1. United Rentals (URI - Free Report)
United Rentals is the largest equipment rental company in North America. Thanks to the infrastructure bill and the Chips Act, there’s a lot of construction going on. It could be a catalyst for United Rentals.
Shares of United Rentals are up 31.7% year-to-date and are near 5-year highs. But it’s still cheap, with a forward P/E of 11.7. United Rentals now pays a dividend, currently yielding 1.3%.
Should United Rentals be on your watch list?
2. Herc Holdings, Inc. (HRI - Free Report)
Herc Holdings is also an equipment rental company. Herc Holdings is expected to see double digit earnings growth in 2023 and 2024.
Shares of Herc Holdings are up just 0.7% year-to-date after selling off early in the year, but over the last 3 months, they’ve spiked 31.3%. Herc is still cheap with a forward P/E of 10.5. It also pays a dividend yielding 1.9%.
Should Herc Holdings be on your watch list?
3. MasTec, Inc. (MTZ - Free Report)
MasTec is a national infrastructure construction company operating in wind and solar farms, wireless, satellite communications and natural gas, among others.
Shares of MasTec have surged 43% in 2023 and are at 5-year highs. It now trades with a forward P/E of 27 but earnings are expected to jump 48.5% this year. It reports earnings on Aug 3, 2023.
Should MasTec be on your watch list?
4. International Paper Co. (IP - Free Report)
International Paper is a $12.7 billion packaging company. It pays a big dividend, currently yielding 5.2%.
Shares of International Paper are up only 5.7% year-to-date. Earnings, however, are expected to fall 33% this year. Is it cheap? International Paper trades with a forward P/E of 16.9, which is below the average of the S&P 500, but a true value stock has a forward P/E under 15.
Should International Paper be on your short list?
5. Whirlpool Corp. (WHR - Free Report)
Whirlpool is a kitchen and laundry appliance manufacturer with iconic brands such as Whirlpool, KitchenAid and Maytag. Earnings soared during the pandemic as new home sales and home renovations boomed.
But earnings of Whirlpool are expected to fall 16.3% this year. Shares of Whirlpool are up just 2.9% year-to-date and are still down 34.3% over the 2-year stack. It’s cheap though. Whirlpool trades at 8.7x. It also pays a juicy dividend, yielding 4.9%.
Should Whirlpool be on your short list?
Will We See a Recession this Year?
Listen, or watch, this week’s podcast to find out. There’s now two ways to enjoy the podcast. You can watch the video podcast, as well as listen on our typical audio version. Enjoy.