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5 Stocks From Top-Ranked Industries Ready to Explode in 2019

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As we get ready to welcome 2019, apprehensions about expected global economic slowdown and persisting uncertainties surrounding trade the United States-China trade war are looming over the Wall Street and creating volatility in the financial markets.

Many economists believe that 2019 will be full of hurdles and the U.S. economy may witness a slowdown or recession. Some economists predict that the U.S. GDP growth is likely to decelerate over the next few quarters, which will make the economy vulnerable to external shocks.

Adding to the concern is the United States-China trade tensions that are elevating stock market volatility in the near term. Washington and Beijing have agreed not to levy further tariffs or retaliation till March 2019. However, many experts believe that the mutually agreed timeframe is not adequate to enable a comprehensive trade pact between the two biggest economies. Hence, the trade woes are likely to dent investors’ sentiments.

Many economists also believe that the trade war is already affecting the U.S. economy. The imposition of tariffs on Chinese goods by the U.S. administration and Beijing’s tit-for-tat actions are likely to mar U.S. GDP growth. Investors may expect to witness continued negotiations or even a deal to roll back tariffs. However, absence of new threats from either side is likely to cheer the Wall Street.

Billionaire investor, Paul Tudor Jones, recently stated that the stock market is likely to become more volatile in 2019 and stocks could dip as much as 15% from current levels before bottoming out.

Along with these factors, there is also an apprehension that the U.S. Federal Reserve will continue to hike interest rates next year. As such, it will be difficult for businesses to borrow from the market that will lead to tight financial conditions.

Top-Ranked Industries Stocks to Boost Portfolio Returns

Given the current stock market volatility and mostly downbeat outlook for 2019, it will be prudent for investors to take precautions and include stocks in the portfolio that are fundamentally solid and belong to top-ranked industries. This is important as a rising tide will elevate all boats in an industry, as there can be broad trends in a segment that boost securities across the board.
 
We have employed the Zacks Stocks Screener to find five stocks from top-ranked industries (top 10%) that are poised to performance well in 2019. Our back-testing shows that the top 50% of the Zacks ranked industries outperforms the bottom 50% by a factor of more than two-to-one.

Moreover, we have refined the screening to include our style score system to single out the stocks which can aid you in beating the market. Our research shows that stocks with a VGM Score of A or B when combined with a Zacks Rank #1 (Strong Buy) or #2 (Buy), offer the best upside potential.

Also, we have picked stocks that have recently projected upside in the Zacks Consensus Estimate for 2019 earnings.

Casey's General Stores, Inc. (CASY - Free Report)

This company along with subsidiaries, operates convenience stores and belongs to the Retail - Convenience Stores industry, which holds a rank of 2 out of more than 250 industries (top 1%). The stock currently sports a Zacks Rank #1 and has a VGM score of A. Earnings estimates for 2019 have moved up 5.2% in the past 60 days to $4.89 per share. You can see the complete list of today’s Zacks #1 Rank stocks here.

FUJIFILM Holdings Corporation (FUJIY - Free Report)



This is a leading global producer of photographic imaging products that belongs to the Semiconductor Equipment - Photomasks industry, which ranks 17 (or Top 7%). The stock currently sports a Zacks Rank #1 and has a VGM score of A. Earnings estimates for 2019 rose 2.5% in the past 60 days to $2.87 per share.

Atkore International Group Inc. (ATKR - Free Report)

This electrical raceway products manufacturing and distributing company belongs to the Wire and Cable Products industry that ranks 10 (or top 4%). The stock also sports a Zacks Rank #1 and has a VGM score of B. Earnings estimates for 2019 have moved up 3.6% in the past 60/30 days to $3.20 per share.  

General Motors Company (GM - Free Report)



This is a leading global automotive company that belongs to our Automotive - Domestic industry and has a rank of 16 (or Top 7%). The stock carries a Zacks Rank #2 and has a VGM score of A. Earnings estimates for 2019 have jumped 3.7% in the past 60 days to $5.82 per share.   

 

Cintas Corporation (CTAS - Free Report)

This company provides specialized services to all types of businesses throughout North America and belongs to the Uniform and Related industry that ranks 10 (or Top 4%). The stock carries a Zacks Rank #2 and has a VGM score of B. Earnings estimates for 2019 inched up 1.4% in the past 60 days to $7.34 per share.

Cintas Corporation Price and Consensus

 

Cintas Corporation Price and Consensus | Cintas Corporation Quote

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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