Extending last month’s historic rally, Wall Street has been hitting a series of record highs to start December. The four indices — the S&P 500, the Dow Jones Industrial Average, the tech-heavy Nasdaq Composite and the small-cap Russell 2000 — closed at new highs at the same day for the first time since January 2018, according to Dow Jones Market Data.
The latest rally has been powered by the encouraging development in coronavirus vaccines and hopes of their availability soon. This is especially true as a vaccine will end the economic crisis and result in swift recovery. Additionally, the latest jobs data for November revealed the slowest U.S. jobs growth in six months that has raised expectations for a new fiscal relief bill to help revive the coronavirus-hit economy. In China, a recent survey revealed that the factory sector accelerated at the fastest pace in a decade in November. This suggests that the world’s second-largest economy has recovered to the pre-pandemic levels. Several other countries also reported sharp upticks in factory activity. Further, the potential for a divided Congress with President-elect Biden and better-than-expected earnings have been fueling growth in the stocks. A divided government is favorable for the economy, as there will be lesser chances of major tax increases and tighter regulations. The prospect of Biden’s smooth transition to the White House has also been driving the stocks higher. Given this, we have highlighted five stocks that led the astounding rally over the past month. These stocks have a solid Zacks Rank #1 (Strong Buy) or 2 (Buy) and will continue to outperform to end the year given their superior fundamentals. You can see . the complete list of today’s Zacks #1 Rank stocks here Mogo Inc. ( MOGO Quick Quote MOGO - Free Report) – Up 146.3% This financial technology company provides financial health apps to consumers with solutions to manage and control their finances. It saw positive earnings estimate revision of 4 cents over the past 30 days for this year and has an estimated earnings growth rate of 43.5%. The stock carries a Zacks Rank #2 and Growth Score of B. Rayonier Advanced Materials Inc. ( RYAM Quick Quote RYAM - Free Report) – Up 90.2% It operates as a global supplier of cellulose specialties products, a natural polymer for the chemical industry. The stock saw solid earnings estimate revision of 67 cents over the past month for this year and has estimated earnings growth of 91.7%. Rayonier Advanced Materials carries a Zacks Rank #2 and Growth Score of B. HighPoint Resources Corporation – Up 83.4% This exploration and production company is focused on the development of oil and natural gas assets primarily in the Denver-Julesburg Basin of Colorado. The stock saw robust earnings estimate revision of $1.25 over the past month for this year and has an estimated earnings growth rate of 167.5%. It has a Zacks Rank #1 and Growth Score of B. Himax Technologies Inc. ( HIMX Quick Quote HIMX - Free Report) – Up 80.2% This company designs, develops and markets semiconductors that are critical components of flat panel displays. The stock saw positive earnings estimate revision of 8 cents over the past month for this year and has estimated earnings growth of 457.1%. Himax Technologies has a Zacks Rank #2 and Growth Score of A. Aviat Networks Inc. ( AVNW Quick Quote AVNW - Free Report) – Up 76.9% This company is a global supplier of wireless network solutions and network management software, backed by a suite of professional services and support. It saw positive earnings estimate revision of 45 cents in a month for fiscal year (ending June 2021). The company has estimated earnings growth of 95.4%. The stock has a Zacks Rank #1 and Growth Score of A. Breakout Biotech Stocks with Triple-Digit Profit Potential
The biotech sector is projected to surge beyond $775 billion by 2024 as scientists develop treatments for thousands of diseases. They’re also finding ways to edit the human genome to literally erase our vulnerability to these diseases. Zacks has just released Century of Biology: 7 Biotech Stocks to Buy Right Now to help investors profit from 7 stocks poised for outperformance. Our recent biotech recommendations have produced gains of +50%, +83% and +164% in as little as 2 months. The stocks in this report could perform even better.
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