After a solid first quarter, Wall Street lost its sheen in the past couple of weeks on inflation worries and escalation in geopolitical tensions. The S&P 500 broke below the 5,100 level after capping the worst week since October 2023. All 11 major sectors in the S&P 500 closed in negative territory last week for the first time since September 2023.
Meanwhile, the Dow Jones suffered its biggest weekly percentage loss since March 2023, shedding 2.5%, while the Nasdaq Composite Index declined 0.6%. While many stocks have been hit badly over the past week, a few of them, with a solid Zacks Rank #1 (Strong Buy) or #2 (Buy) and a VGM Score of B or better, offer a good entry point. These are Globe Life Inc. (GL - Free Report) , Dell Technologies (DELL - Free Report) , Dream Finders Homes Inc. (DFH - Free Report) , Flywire Corporation (FLYW - Free Report) and Iqiyi Inc. (IQ - Free Report) . You can see the complete list of today’s Zacks #1 Rank stocks here.
Iran launched a barrage of missiles and drones on Israel over the weekend, heightening fears of a wider conflict in the Middle East. The conflict will lead to a spike in oil prices, which could flare up inflation, leading the Fed to go slow on rate cuts. Additionally, the bouts of upbeat economic data point to a stronger economy, dialing back expectations for rate cuts in the first half of this year.
Retail sales increased more than expected and consumer prices accelerated at a faster-than-expected pace in March, pushing inflation higher and dashing hopes that the Fed will be able to cut interest rates anytime soon. This has outlined the case for longer-than-expected higher rates.
Major bank earnings failed to impress Wall Street, leading to a broad decline in major bank shares last week. The three major banks — JPMorgan Chase & Co, Citigroup and Wells Fargo — disappointed investors. JPMorgan’s net interest income came in below analysts' expectations. Wells Fargo reported a 7% drop in profits, following a decline in net interest income caused by poor borrowing demand, while Citigroup experienced a loss following expenses on employee termination and deposit insurance.
Stocks to Buy
Globe Life (formerly known as Torchmark Corporation) is an insurance holding company for a group of insurance companies that primarily market individual life and supplemental health insurance to lower-middle to middle-income households throughout the United States. The stock has plunged 45.5% in the past week. Globe Life has an estimated earnings growth rate of 8.92% for this year and a Zacks Rank #2. It has a VGM Score of B.
Dell Technologies is a leading provider of servers, storage and PCs. It offers secure, integrated solutions that extend from the edge to the core to the cloud. The stock has lost about 11% in a week. Dell Technologies has an estimated growth rate of 7.15% for the fiscal year (ending Jan 2025). It currently has a Zacks Rank #1 and a VGM Score of A.
Dream Finders is a homebuilding company that operates principally in Florida, Texas, North Carolina, South Carolina, Georgia, Colorado, Virginia and Maryland. Its shares are down about 10% in a week. Dream Finders has an expected earnings growth rate of 23.66% for this year. It has a Zacks Rank #1 and a VGM Score of A.
Flywire Corporation is a payments enablement and software company. It combines its proprietary global payments network, next-gen payments platform and vertical-specific software to deliver the most important and complex payments for its clients and their customers. The stock has shed about 8.7% in a week. It has an estimated earnings growth rate of 171.4% for this year. FLYW has a Zacks Rank #2 and a VGM Score of B.
Iqiyi provides an online entertainment service. It offers movies, television dramas, variety shows and other video content. The stock has lost about 8% in a week. It has an estimated earnings growth rate of 14.6% for this year. Iqiyi has a Zacks Rank #2 at present and a VGM Score of A.
Infrastructure Stock Boom to Sweep America
A massive push to rebuild the crumbling U.S. infrastructure will soon be underway. It’s bipartisan, urgent, and inevitable. Trillions will be spent. Fortunes will be made.
The only question is “Will you get into the right stocks early when their growth potential is greatest?”
Zacks has released a Special Report to help you do just that, and today it’s free. Discover 5 special companies that look to gain the most from construction and repair to roads, bridges, and buildings, plus cargo hauling and energy transformation on an almost unimaginable scale.
Download FREE: How To Profit From Trillions On Spending For Infrastructure >>
After a solid first quarter, Wall Street lost its sheen in the past couple of weeks on inflation worries and escalation in geopolitical tensions. The S&P 500 broke below the 5,100 level after capping the worst week since October 2023. All 11 major sectors in the S&P 500 closed in negative territory last week for the first time since September 2023.
Meanwhile, the Dow Jones suffered its biggest weekly percentage loss since March 2023, shedding 2.5%, while the Nasdaq Composite Index declined 0.6%. While many stocks have been hit badly over the past week, a few of them, with a solid Zacks Rank #1 (Strong Buy) or #2 (Buy) and a VGM Score of B or better, offer a good entry point. These are Globe Life Inc. (GL - Free Report) , Dell Technologies (DELL - Free Report) , Dream Finders Homes Inc. (DFH - Free Report) , Flywire Corporation (FLYW - Free Report) and Iqiyi Inc. (IQ - Free Report) . You can see the complete list of today’s Zacks #1 Rank stocks here.
Iran launched a barrage of missiles and drones on Israel over the weekend, heightening fears of a wider conflict in the Middle East. The conflict will lead to a spike in oil prices, which could flare up inflation, leading the Fed to go slow on rate cuts. Additionally, the bouts of upbeat economic data point to a stronger economy, dialing back expectations for rate cuts in the first half of this year.
Retail sales increased more than expected and consumer prices accelerated at a faster-than-expected pace in March, pushing inflation higher and dashing hopes that the Fed will be able to cut interest rates anytime soon. This has outlined the case for longer-than-expected higher rates.
Major bank earnings failed to impress Wall Street, leading to a broad decline in major bank shares last week. The three major banks — JPMorgan Chase & Co, Citigroup and Wells Fargo — disappointed investors. JPMorgan’s net interest income came in below analysts' expectations. Wells Fargo reported a 7% drop in profits, following a decline in net interest income caused by poor borrowing demand, while Citigroup experienced a loss following expenses on employee termination and deposit insurance.
Stocks to Buy
Globe Life (formerly known as Torchmark Corporation) is an insurance holding company for a group of insurance companies that primarily market individual life and supplemental health insurance to lower-middle to middle-income households throughout the United States. The stock has plunged 45.5% in the past week. Globe Life has an estimated earnings growth rate of 8.92% for this year and a Zacks Rank #2. It has a VGM Score of B.
Dell Technologies is a leading provider of servers, storage and PCs. It offers secure, integrated solutions that extend from the edge to the core to the cloud. The stock has lost about 11% in a week. Dell Technologies has an estimated growth rate of 7.15% for the fiscal year (ending Jan 2025). It currently has a Zacks Rank #1 and a VGM Score of A.
Dream Finders is a homebuilding company that operates principally in Florida, Texas, North Carolina, South Carolina, Georgia, Colorado, Virginia and Maryland. Its shares are down about 10% in a week. Dream Finders has an expected earnings growth rate of 23.66% for this year. It has a Zacks Rank #1 and a VGM Score of A.
Flywire Corporation is a payments enablement and software company. It combines its proprietary global payments network, next-gen payments platform and vertical-specific software to deliver the most important and complex payments for its clients and their customers. The stock has shed about 8.7% in a week. It has an estimated earnings growth rate of 171.4% for this year. FLYW has a Zacks Rank #2 and a VGM Score of B.
Iqiyi provides an online entertainment service. It offers movies, television dramas, variety shows and other video content. The stock has lost about 8% in a week. It has an estimated earnings growth rate of 14.6% for this year. Iqiyi has a Zacks Rank #2 at present and a VGM Score of A.
Infrastructure Stock Boom to Sweep America
A massive push to rebuild the crumbling U.S. infrastructure will soon be underway. It’s bipartisan, urgent, and inevitable. Trillions will be spent. Fortunes will be made.
The only question is “Will you get into the right stocks early when their growth potential is greatest?”
Zacks has released a Special Report to help you do just that, and today it’s free. Discover 5 special companies that look to gain the most from construction and repair to roads, bridges, and buildings, plus cargo hauling and energy transformation on an almost unimaginable scale.
Download FREE: How To Profit From Trillions On Spending For Infrastructure >>
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