The market has a way of proving the majority wrong. Just when investors thought December wasn’t looking strong, the S&P 500 looks set to post a new all-time closing high in what is historically one of the most bullish seasonal periods of the year.
The S&P 500 had been getting repeatedly rejected over the past two months right around the 4715 price level as we can see below. A strong finish into today’s closing bell will signal a break above the trendline, which could lead to further strength as we head into the new year.
After skyrocketing more than 100% over the course of a month by early December, volatility has plunged back down to the range seen throughout the majority of the year. The VIX index, widely referred to as the ‘fear gauge’, is now down over 40% from the highs seen in the beginning of the month. As volatility has subsided and fears over the Omicron variant have receded, stocks look ready to continue their uptrend.
Rather than attempting to catch a falling knife from a beaten down tech stock, we recommend sticking with leaders that have held up well this year. The Zacks Agriculture – Products industry group is ranked within the top 7% of all 253 industry groups. This industry group has returned 26% on the year and we expect it to outperform the market over the next 3 to 6 months.
Historical research has illustrated that approximately half of a stock’s return is due to its industry grouping. By focusing on stocks within the top Zacks Ranked Industries, you can dramatically improve your stock-picking success.
The Zacks Agriculture – Products industry group also boasts projected EPS growth of 208.52%, far above the 21.15% for the S&P 500. Next, we’ll delve into three companies within this industry group that all sport a Zacks #1 Strong Buy ranking.
The Andersons, Inc. (ANDE - Free Report)
The Andersons is a global agricultural company operating in trade, ethanol, plant nutrient, and rail sectors. ANDE operates as a regional grain merchandiser with other diversified businesses such as turf production and general merchandise. Based in Maumee, Ohio, the Andersons maintain grain and production facilities throughout the Midwest and six retail locations in northern and Central Ohio.
Trading at a relatively undervalued 13.77 P/E, ANDE has proven that analyst earnings estimates have been far too conservative in the recent past. The company has posted a trailing four-quarter average earnings surprise of +293%. In November, ANDE reported EPS of $0.15, a +225% surprise over consensus. The stock is handily outperforming the market this year with a return of 58.5%.
Highest Returns for Any Asset Class
It’s not even close. Despite ups and downs, Bitcoin has been more profitable for investors than any other decentralized, borderless form of money.
No guarantees for the future, but in the past three presidential election years, Bitcoin’s returns were as follows: 2012 +272.4%, 2016 +161.1%, and 2020 +302.8%. Zacks predicts another significant surge in months to come.
Hurry, Download Special Report – It’s FREE >>
The market has a way of proving the majority wrong. Just when investors thought December wasn’t looking strong, the S&P 500 looks set to post a new all-time closing high in what is historically one of the most bullish seasonal periods of the year.
The S&P 500 had been getting repeatedly rejected over the past two months right around the 4715 price level as we can see below. A strong finish into today’s closing bell will signal a break above the trendline, which could lead to further strength as we head into the new year.
After skyrocketing more than 100% over the course of a month by early December, volatility has plunged back down to the range seen throughout the majority of the year. The VIX index, widely referred to as the ‘fear gauge’, is now down over 40% from the highs seen in the beginning of the month. As volatility has subsided and fears over the Omicron variant have receded, stocks look ready to continue their uptrend.
Rather than attempting to catch a falling knife from a beaten down tech stock, we recommend sticking with leaders that have held up well this year. The Zacks Agriculture – Products industry group is ranked within the top 7% of all 253 industry groups. This industry group has returned 26% on the year and we expect it to outperform the market over the next 3 to 6 months.
Historical research has illustrated that approximately half of a stock’s return is due to its industry grouping. By focusing on stocks within the top Zacks Ranked Industries, you can dramatically improve your stock-picking success.
The Zacks Agriculture – Products industry group also boasts projected EPS growth of 208.52%, far above the 21.15% for the S&P 500. Next, we’ll delve into three companies within this industry group that all sport a Zacks #1 Strong Buy ranking.
The Andersons, Inc. (ANDE - Free Report)
The Andersons is a global agricultural company operating in trade, ethanol, plant nutrient, and rail sectors. ANDE operates as a regional grain merchandiser with other diversified businesses such as turf production and general merchandise. Based in Maumee, Ohio, the Andersons maintain grain and production facilities throughout the Midwest and six retail locations in northern and Central Ohio.
Trading at a relatively undervalued 13.77 P/E, ANDE has proven that analyst earnings estimates have been far too conservative in the recent past. The company has posted a trailing four-quarter average earnings surprise of +293%. In November, ANDE reported EPS of $0.15, a +225% surprise over consensus. The stock is handily outperforming the market this year with a return of 58.5%.
Highest Returns for Any Asset Class
It’s not even close. Despite ups and downs, Bitcoin has been more profitable for investors than any other decentralized, borderless form of money.
No guarantees for the future, but in the past three presidential election years, Bitcoin’s returns were as follows: 2012 +272.4%, 2016 +161.1%, and 2020 +302.8%. Zacks predicts another significant surge in months to come.
Hurry, Download Special Report – It’s FREE >>
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