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Zacks Market Edge Highlights: CVS, Union Pacific, Facebook, Microsoft and Thor Industries
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For Immediate Release
Chicago, IL – Dec 20, 2017 – Zacks Market Edge is a podcast hosted weekly by Zacks Stock Strategist Tracey Ryniec. Every week, Tracey will be joined by guests to discuss the hottest investing topics in stocks, bonds and ETFs and how it impacts your life. To listen to the podcast, click here: (https://www.zacks.com/stock/news/286461/2018-outlook-how-should-you-invest)
2018 Outlook: How Should You Invest?
Welcome to Episode #112 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.
In this episode, Tracey is joined by John Blank, Zacks Chief Equity Strategist, to discuss the state of the economy, what could happen now that the US has gotten the largest corporate tax cut in history, the odds of a recession, the possibility of the treasury yields inverting and whether inflation will rear its head in the new year.
Tracey and John have talked about the recession odds before on prior podcasts. Early in 2017, they said there were no signs of a recession.
Is that true today, heading into 2018?
Yield Inversion in 2018?
And what about the worries over the 2 and 10-year treasury yields inverting?
Many, including Minneapolis Fed President Neel Kashkari, are fretting as those yields flatten. Over the last 50 years, inverting treasury yields have signaled a recession 100% of the time.
Yet John believes it could be different this time.
Find out why on the podcast.
How Investors Can Play the Corporate Tax Cuts
Will these massive corporate tax cuts really juice the US economy?
John, who has a PhD in economics, explains what happens when businesses get an infusion of cash.
If you’re trying to invest in the “winners” of the corporate tax cuts, you should check out a few of these names.
Stocks for the Corporate Tax Cuts
1. CVS (CVS - Free Report) has already said it was one of the largest payers of corporate taxes in America. Last year, it paid $3.3 billion with an effective tax rate of 38.4%. What will CVS do with all the cash it sees from the cuts?
2. Union Pacific (UNP - Free Report) is also one of the big cap corporate winners. Last year, it paid an effective tax rate of 37.4%, or $4.7 billion. Will it invest the cash in new technology, new rails, or new equipment? Or will it show up in a higher dividend or a share buyback?
3. Facebook paid an effective tax rate of just 18.3% last year, or $2.3 billion. Therefore, it’s unlikely to see any real impact directly from the cuts themselves.
4. Microsoft (MSFT - Free Report) , on the other hand, had an effective tax rate of 34.1% but it only paid $1.9 billion. It already has $138 billion in cash on hand so a tax cut is, basically, meaningless.
5. Thor Industries (THO - Free Report) is a mid-cap maker of RVs and trailers. Last year, it paid an effective tax rate of 32%, or $182 million. What will Thor do with the extra cash? Smaller companies might be more likely to add employees or build new factories.
There’s a lot of unknowns with the corporate tax cuts simply because they’ve never happened before. Even economists have no idea what will happen in boardrooms with management.
Additionally, the cuts may help those who didn’t have as easy access to capital, as some of the large caps have.
Where should you be placing your investing bets in 2018?
Find out more on this week’s podcast.
[In full disclosure, Tracey owns shares of FB in her personal portfolio mentioned in this podcast.]
Looking for Stocks with Skyrocketing Upside?
Zacks has just released a Special Report on the booming investment opportunities of legal marijuana.
Ignited by new referendums and legislation, this industry is expected to blast from an already robust $6.7 billion to $20.2 billion in 2021. Early investors stand to make a killing, but you have to be ready to act and know just where to look.
Zacks.com is a property of Zacks Investment Research, Inc., which was formed in 1978. The later formation of the Zacks Rank, a proprietary stock picking system; continues to outperform the market by nearly a 3 to 1 margin. The best way to unlock the profitable stock recommendations and market insights of Zacks Investment Research is through our free daily email newsletter; Profit from the Pros. In short, it's your steady flow of Profitable ideas GUARANTEED to be worth your time! Click here for your free subscription to Profit from the Pros.
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.
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 https://www.zacks.com/performance for information about the performance numbers displayed in this press release.
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Zacks Market Edge Highlights: CVS, Union Pacific, Facebook, Microsoft and Thor Industries
For Immediate Release
Chicago, IL – Dec 20, 2017 – Zacks Market Edge is a podcast hosted weekly by Zacks Stock Strategist Tracey Ryniec. Every week, Tracey will be joined by guests to discuss the hottest investing topics in stocks, bonds and ETFs and how it impacts your life. To listen to the podcast, click here: (https://www.zacks.com/stock/news/286461/2018-outlook-how-should-you-invest)
2018 Outlook: How Should You Invest?
Welcome to Episode #112 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.
In this episode, Tracey is joined by John Blank, Zacks Chief Equity Strategist, to discuss the state of the economy, what could happen now that the US has gotten the largest corporate tax cut in history, the odds of a recession, the possibility of the treasury yields inverting and whether inflation will rear its head in the new year.
Tracey and John have talked about the recession odds before on prior podcasts. Early in 2017, they said there were no signs of a recession.
Is that true today, heading into 2018?
Yield Inversion in 2018?
And what about the worries over the 2 and 10-year treasury yields inverting?
Many, including Minneapolis Fed President Neel Kashkari, are fretting as those yields flatten. Over the last 50 years, inverting treasury yields have signaled a recession 100% of the time.
Yet John believes it could be different this time.
Find out why on the podcast.
How Investors Can Play the Corporate Tax Cuts
Will these massive corporate tax cuts really juice the US economy?
John, who has a PhD in economics, explains what happens when businesses get an infusion of cash.
If you’re trying to invest in the “winners” of the corporate tax cuts, you should check out a few of these names.
Stocks for the Corporate Tax Cuts
1. CVS (CVS - Free Report) has already said it was one of the largest payers of corporate taxes in America. Last year, it paid $3.3 billion with an effective tax rate of 38.4%. What will CVS do with all the cash it sees from the cuts?
2. Union Pacific (UNP - Free Report) is also one of the big cap corporate winners. Last year, it paid an effective tax rate of 37.4%, or $4.7 billion. Will it invest the cash in new technology, new rails, or new equipment? Or will it show up in a higher dividend or a share buyback?
3. Facebook paid an effective tax rate of just 18.3% last year, or $2.3 billion. Therefore, it’s unlikely to see any real impact directly from the cuts themselves.
4. Microsoft (MSFT - Free Report) , on the other hand, had an effective tax rate of 34.1% but it only paid $1.9 billion. It already has $138 billion in cash on hand so a tax cut is, basically, meaningless.
5. Thor Industries (THO - Free Report) is a mid-cap maker of RVs and trailers. Last year, it paid an effective tax rate of 32%, or $182 million. What will Thor do with the extra cash? Smaller companies might be more likely to add employees or build new factories.
There’s a lot of unknowns with the corporate tax cuts simply because they’ve never happened before. Even economists have no idea what will happen in boardrooms with management.
Additionally, the cuts may help those who didn’t have as easy access to capital, as some of the large caps have.
Where should you be placing your investing bets in 2018?
Find out more on this week’s podcast.
[In full disclosure, Tracey owns shares of FB in her personal portfolio mentioned in this podcast.]
Looking for Stocks with Skyrocketing Upside?
Zacks has just released a Special Report on the booming investment opportunities of legal marijuana.
Ignited by new referendums and legislation, this industry is expected to blast from an already robust $6.7 billion to $20.2 billion in 2021. Early investors stand to make a killing, but you have to be ready to act and know just where to look.
See the pot trades we're targeting>>
Tracey Ryniec manages the Insider Trader and Value Investor portfolios at Zacks.com. She hosts 2 weekly podcasts: Zacks Market Edge Podcast and the Value Investor Podcast. You can also catch her on Twitter at @TraceyRyniec.
About Zacks
Zacks.com is a property of Zacks Investment Research, Inc., which was formed in 1978. The later formation of the Zacks Rank, a proprietary stock picking system; continues to outperform the market by nearly a 3 to 1 margin. The best way to unlock the profitable stock recommendations and market insights of Zacks Investment Research is through our free daily email newsletter; Profit from the Pros. In short, it's your steady flow of Profitable ideas GUARANTEED to be worth your time! Click here for your free subscription to Profit from the Pros.
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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 https://www.zacks.com/performance for information about the performance numbers displayed in this press release.