It’s been a topsy-turvy journey for the U.S. stock market so far in 2020. Wall Street experienced its fastest bear market in history on Mar 23, followed by one of the best 100-day comebacks on record. However, lately, the broader market has been facing significant risks, including trade tensions with China and election-led uncertainty.
Most importantly, coronavirus cases are on the rise, with hopes for the much-needed economic stimulus starting to fade until the outcome of the upcoming presidential election. These factors have, to some extent, dashed hopes of economic recovery and weighed on the stock market, with economically-sensitive sectors in the S&P 500 taking a beating on Oct 26.
In the United States, new cases of the coronavirus infection hit record levels. According to data from Covid Tracking Project, quoted in
The Wall Street Journal
, 41,753 people were hospitalized on Oct 25, followed by 41,882 in the previous day. Particularly, in El Paso, Texas, hospitalization due to the coronavirus infection jumped to 853 in the past three-week period, compelling the government to ask residents to stay at home. But not just in the United States, te virus has started to spread in Europe, with fresh cases being reported in Spain and Italy. Both the countries have now imposed tighter restrictions to curb the spread of the virus.
Meanwhile, yesterday, House Speaker Nancy Pelosi confirmed that there are yet no signs of a fiscal package and it seems that the implementation of the stimulus measures might remain stalled till the elections.
But there’s nothing to worry about for investors. Historically, the stock market has actually done well during the eight calendar days heading into the presidential elections. According to CFRA’s Sam Stovall, chief investment strategist, as quoted in a
article, the S&P 500 has on average increased 2.5% in the eight days till election since 1944. What’s more, September has been a dismal month for stocks, with the S&P 500 down nearly 3.9%. Interestingly, the S&P 500 has actually gained in October after it dropping a minimum of 3.5% in September, per Dow Jones Market Data, as quoted in a
But not just historical data, there are positive factors that should eventually help the stock market scale northward into year-end. Despite the odds, the economy is widely expected to have expanded at a healthy pace in the third quarter, with consumers remaining confident about business prospects, labor market strength and overall economic outlook in the near term (read more:
US Consumers Gain Confidence in Economy: 5 Winners
5 Stocks to Buy for the 8-Day Run-Up to Election and Beyond
As the broader market is expected to do well heading into the election day and in all probability beyond that, it’s prudent to invest in stocks that are set to gain in the near future. These stocks flaunt a Zacks Rank #1 (Strong Buy) and a Growth Score of A. Our research shows that stocks with a
of A when combined a Zacks Rank #1 offer the best opportunities in the growth investing space. Here’re the picks –
Beacon Roofing Supply, Inc.
BECN Quick Quote BECN - Free Report
) is the largest distributor of residential and non-residential roofing materials in the United States. The Zacks Consensus Estimate for its current year earnings has moved up 9.4% over the past 60 days. The company’s expected earnings growth rate for the December quarter is 34.4%.
1800 FLOWERS.COM, Inc.
FLWS Quick Quote FLWS - Free Report
) is a leading e-commerce provider of floral products and gifts, in terms of number of customers and revenues. The Zacks Consensus Estimate for its current-year earnings has climbed 31.7% over the past 60 days. The company’s expected earnings growth rate for the December quarter is 14.3%.
RH Quick Quote RH - Free Report
) is a leading luxury retailer in the home furnishing space. The Zacks Consensus Estimate for its current-year earnings has risen 46.8% over the past 60 days. The company’s expected earnings growth rate for the current and next quarter is 89.6% and 36.6%, respectively. You can see
the complete list of today’s Zacks #1 Rank stocks here.
Zoom Video Communications, Inc
ZM Quick Quote ZM - Free Report
) provides a video-first communications platform. The Zacks Consensus Estimate for its current-year earnings has moved 95.3% north over the past 60 days. The company’s expected earnings growth rate for the current and next quarter is 733.4% and 313.3%, respectively.
Sportsmans Warehouse Holdings, Inc.
SPWH Quick Quote SPWH - Free Report
) is an outdoor sporting goods retailer. The Zacks Consensus Estimate for its current-year earnings has risen 70.3% over the past 60 days. The company’s expected earnings growth rate for the current and next quarter is 104% and 23.8%, respectively.
Just Released: Zacks’ 7 Best Stocks for Today
Experts extracted 7 stocks from the list of 220 Zacks Rank #1 Strong Buys that has beaten the market more than 2X over with a stunning average gain of +24.5% per year.
These 7 were selected because of their superior potential for immediate breakout.