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Plus 5 New Strong Buys for Today
Kevin Matras   
Profit from the Pros
By Kevin Matras
Executive Vice President
Zacks Investment Research

Stocks Soar On Strong Economic Outlook And Earnings

Stocks rebounded yesterday and then some. And the major indexes are within striking distance of being up for the week. If so, that would make it 5 weeks in a row.

The theme of a strengthening economy continues to underpin stocks.

That was underscored with yesterday's MBA Mortgage Applications report which showed the composite index up 8.6% (with purchases up 6.0% and refi's up 10.0%).

We'll get another look at the economy today with Weekly Jobless Claims, Existing Home Sales, the Chicago Fed National Activity Index, the Kansas City Fed Manufacturing Index, and the Leading Indicators report.

The stellar earnings season so far is also fueling stocks.

We'll get another 218 companies reporting earnings between today and tomorrow. And another 994 next week. Earnings season is always an exciting time since stocks typically go up during earnings season.

We expect to hear more on the proposed $2.25 trillion infrastructure package, and the corporate tax hikes to pay for it. Same for the proposed $1 trillion 'families plan' package to be unveiled later this month, and the individual tax hikes to pay for that one. There's no timeline for further details on either of those, but we assume we'll get more info on those before the scheduled State of the Union address on April 28th.

In the meantime, keep your eye on the big picture. There will be bumps along the way. But the US is poised for the fastest growth rate in 36 years. Near zero intertest rates are here for the foreseeable future. And record pent-up demand is soon to meet a record amount of stimulus money.

This is history in the making.

And expectations are that we could be at the beginning of a multiyear boom.

To learn how to take full advantage of it, be sure to read my latest commentary...

The Coming Economic Boom and What It Means for Stocks


Kevin Matras

Executive Vice President, Zacks Investment Research


10 Cheap Stocks to Buy Now

The P/E ratios of most S&P 500 companies look very expensive and the market continues to regularly hit new all-time highs, it's very difficult to find cheap stocks to buy now.

This goes for both share price, since most stocks are trading higher on a per-share basis, and valuation relative to earnings. Right now, the typical S&P 500 company is trading at about 22.5 times forward-looking earnings. Historically, S&P 500 companies have traded at about 15 times earnings in more normal markets.

While the S&P 500 as a whole is expensive, there are still a handful undervalued stocks that are trading at less than $10.00 per share. Opportunities for value exist if you know where to look. Putting together a list of cheap stocks to buy now requires looking into some smaller, riskier, unloved or undiscovered parts of the market.

Some of these companies are great ideas because they're too small and too risky to attract the interest of most mutual funds and professional money managers. Others have been beat up by the market after a period of slowing earnings and profits, but are now working to turn around and bounce back.

Each of these 10 stock picks all share a common characteristic, a super-low share price of $10.00 or less.

Click Here to View These 10 Stocks

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Bull of the Day: Pioneer Natural Resources (PXD)

The oil companies are still dirt cheap. Read More »

New Zacks Strong Buys for April 22nd

Here are 5 stocks added to the Zacks Rank #1 (Strong Buy) List today. Read More »


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