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The Zacks Analyst Blog Highlights: Archer-Daniels, Monster Beverage, Blue Apron, Calyxt and Ollie's
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For Immediate Release
Chicago, IL –December 17, 2018 – 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: Archer-Daniels-Midland Co. (ADM - Free Report) , Monster Beverage Corp. (MNST - Free Report) ,
Blue Apron Holdings Inc. , Calyxt Inc. and Ollie's Bargain Outlet Holdings Inc. (OLLI - Free Report) .
Here are highlights from Friday’s Analyst Blog:
5 Top Consumer Staples to Buy Stocks Amid a Volatile Market
Wall Street has witnessed a sharp decline in the second half of 2018 as a result of intensifying market turmoil. The broad-based market decline can be attributed to lingering tariff related conflicts with China, plummeting crude oil prices, several geopolitical problems and yield curve inversion of sovereign bonds.
The negative sentiment has dented investor confidence to such an extent that strong consumer spending and labor market data have failed to instill optimism. At this juncture, it will be prudent to invest in stocks from defensive industries like consumer staples with a favorable Zacks Rank and strong growth potential.
Wall Street Remains Lackluster in 2018
U.S. stocks have had a rough run so far in 2018 after providing fabulous returns in 2017. Out of three major stock market indexes, the Dow 30 and S&P 500 are currently in the negative territory with a decline of 0.5% and 0.9%, respectively, year to date. Only the Nasdaq Composite has gained 2.4% so far in 2018.
However, in the second half of 2018, the performances of these three indexes have been more disappointing. The Dow 30, S&P 500 and Nasdaq Composite declined 2.3%, 4.7% and 8.9%, respectively, erasing the gains of the first half of 2018.
US-China Trade War Yet to Resolve
An amicable solution to the trade related conflict between the United States-China following the Dec 1 meeting between President Trump and his Chinese counterpart Xi Jinping is yet to come by.
However, confusion has increased around China’s intentions of taking adequate measures to stop technology theft from the United States. Uncertainty also persists about the extent to which it will open up markets to U.S. companies and provide concessions to reduce trade imbalance between the two countries. Moreover, on Dec 9, U.S. Trade Representative Robert Lighthizer said that he considers Mar 1 "a hard deadline" to reach a deal with China, failing which, the tariff war is likely to go on.
Why Consumer Staples Stocks?
The consumer staples sector includes companies that provide necessities and products used in daily lives, which make them defensive in nature. With the companies providing necessary products, the consumer staples industry has always been the go-to place for investors who want to play it safe during extreme market fluctuations.
Consequently, adding stocks from the consumer staples basket usually lends more stability to portfolios in an uncertain market condition. Moreover, the sector remains a lucrative space for income-seeking investors given its strong dividend yield.
In the third quarter of 2018, all consumer staple companies within the S&P 500 index reported results with 8.9% year-over-year earnings growth on 0.9% revenue growth. Notably, in the past six months S&P 500’s Consumer Staple Select Sector SPDR (XLP) has gained 8.3%, trailing only Utilities Select Sector SPDR’s (XLU) gain of 16.1%.
Our Top Picks
Stock markets are likely to remain volatile in the near future due to trade concerns, geopolitical conflicts and interest rate movements. Consequently, investment in defensive sectors such as consumer staples will be fruitful.
Archer-Daniels-Midland Co.procures, transports, stores, processes, and merchandises agricultural commodities and products. The company has expected earnings growth rate of 46.5% for the current year. The Zacks Consensus Estimate for the current year has improved 3.8% over the past 60 days.
Monster Beverage Corp.develops, markets, sells, and distributes energy drink beverages, soda, and its concentrates in the United States and internationally. The company has expected earnings growth rate of 21.2% for the current year. The Zacks Consensus Estimate for the current year has improved 2.3% over the past 60 days.
Blue Apron Holdings Inc. provides recipes and fresh ingredients for making home cooking accessible. The company has expected earnings growth rate of 58.5% for the current year. The Zacks Consensus Estimate for the current year has improved 5.6% over the past 60 days.
Calyxt Inc.a consumer-centric food- and agriculture-focused company, develops healthier specialty food ingredients and food crops using gene-editing technology for plants in the United States. The company has expected earnings growth rate of 17% for the current year. The Zacks Consensus Estimate for the current year has improved 7.9% over the past 60 days.
Ollie's Bargain Outlet Holdings Inc.offers food products, housewares, books and stationery, bed and bath products, floor coverings, electronics, and toys, and other products. The company has expected earnings growth rate of 41.6% for the current year. The Zacks Consensus Estimate for the current year has improved 0.6% over the past 60 days.
In addition to the stocks discussed above, would you like to know about our 10 top tickers to buy and hold for the entirety of 2019?
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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The Zacks Analyst Blog Highlights: Archer-Daniels, Monster Beverage, Blue Apron, Calyxt and Ollie's
For Immediate Release
Chicago, IL –December 17, 2018 – 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: Archer-Daniels-Midland Co. (ADM - Free Report) , Monster Beverage Corp. (MNST - Free Report) ,
Blue Apron Holdings Inc. , Calyxt Inc. and Ollie's Bargain Outlet Holdings Inc. (OLLI - Free Report) .
Here are highlights from Friday’s Analyst Blog:
5 Top Consumer Staples to Buy Stocks Amid a Volatile Market
Wall Street has witnessed a sharp decline in the second half of 2018 as a result of intensifying market turmoil. The broad-based market decline can be attributed to lingering tariff related conflicts with China, plummeting crude oil prices, several geopolitical problems and yield curve inversion of sovereign bonds.
The negative sentiment has dented investor confidence to such an extent that strong consumer spending and labor market data have failed to instill optimism. At this juncture, it will be prudent to invest in stocks from defensive industries like consumer staples with a favorable Zacks Rank and strong growth potential.
Wall Street Remains Lackluster in 2018
U.S. stocks have had a rough run so far in 2018 after providing fabulous returns in 2017. Out of three major stock market indexes, the Dow 30 and S&P 500 are currently in the negative territory with a decline of 0.5% and 0.9%, respectively, year to date. Only the Nasdaq Composite has gained 2.4% so far in 2018.
However, in the second half of 2018, the performances of these three indexes have been more disappointing. The Dow 30, S&P 500 and Nasdaq Composite declined 2.3%, 4.7% and 8.9%, respectively, erasing the gains of the first half of 2018.
US-China Trade War Yet to Resolve
An amicable solution to the trade related conflict between the United States-China following the Dec 1 meeting between President Trump and his Chinese counterpart Xi Jinping is yet to come by.
However, confusion has increased around China’s intentions of taking adequate measures to stop technology theft from the United States. Uncertainty also persists about the extent to which it will open up markets to U.S. companies and provide concessions to reduce trade imbalance between the two countries. Moreover, on Dec 9, U.S. Trade Representative Robert Lighthizer said that he considers Mar 1 "a hard deadline" to reach a deal with China, failing which, the tariff war is likely to go on.
Why Consumer Staples Stocks?
The consumer staples sector includes companies that provide necessities and products used in daily lives, which make them defensive in nature. With the companies providing necessary products, the consumer staples industry has always been the go-to place for investors who want to play it safe during extreme market fluctuations.
Consequently, adding stocks from the consumer staples basket usually lends more stability to portfolios in an uncertain market condition. Moreover, the sector remains a lucrative space for income-seeking investors given its strong dividend yield.
In the third quarter of 2018, all consumer staple companies within the S&P 500 index reported results with 8.9% year-over-year earnings growth on 0.9% revenue growth. Notably, in the past six months S&P 500’s Consumer Staple Select Sector SPDR (XLP) has gained 8.3%, trailing only Utilities Select Sector SPDR’s (XLU) gain of 16.1%.
Our Top Picks
Stock markets are likely to remain volatile in the near future due to trade concerns, geopolitical conflicts and interest rate movements. Consequently, investment in defensive sectors such as consumer staples will be fruitful.
We have narrowed down our search to five consumer staples stocks each carrying a Zacks Rank #2 (Buy). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
Archer-Daniels-Midland Co.procures, transports, stores, processes, and merchandises agricultural commodities and products. The company has expected earnings growth rate of 46.5% for the current year. The Zacks Consensus Estimate for the current year has improved 3.8% over the past 60 days.
Monster Beverage Corp.develops, markets, sells, and distributes energy drink beverages, soda, and its concentrates in the United States and internationally. The company has expected earnings growth rate of 21.2% for the current year. The Zacks Consensus Estimate for the current year has improved 2.3% over the past 60 days.
Blue Apron Holdings Inc. provides recipes and fresh ingredients for making home cooking accessible. The company has expected earnings growth rate of 58.5% for the current year. The Zacks Consensus Estimate for the current year has improved 5.6% over the past 60 days.
Calyxt Inc.a consumer-centric food- and agriculture-focused company, develops healthier specialty food ingredients and food crops using gene-editing technology for plants in the United States. The company has expected earnings growth rate of 17% for the current year. The Zacks Consensus Estimate for the current year has improved 7.9% over the past 60 days.
Ollie's Bargain Outlet Holdings Inc.offers food products, housewares, books and stationery, bed and bath products, floor coverings, electronics, and toys, and other products. The company has expected earnings growth rate of 41.6% for the current year. The Zacks Consensus Estimate for the current year has improved 0.6% over the past 60 days.
In addition to the stocks discussed above, would you like to know about our 10 top tickers to buy and hold for the entirety of 2019?
These 10 are painstakingly handpicked from over 4,000 companies covered by the Zacks Rank. They are our primary picks poised to outperform in the year ahead. Be among the first to see the new Zacks Top 10 Stocks >>
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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 http://www.zacks.com/performance for information about the performance numbers displayed in this press release.