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S&P 500 Momentum to Continue on Stimulus Hopes: 4 Picks
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The S&P 500 index closed at a record high of 3,702.25 on Dec 8, up 0.3% on the day and 14.6%, year to date. This upbeat momentum is anticipated to continue on the rising optimism over further stimulus in the United States and positive vaccine data.
On Dec 8, Treasury Secretary Steve Mnuchin tweeted about a new stimulus package worth $916 billion that he has discussed with U.S. House of Representatives Speaker Nancy Pelosi. Markedly, the package is larger than the $908-billion bipartisan proposal.
Meanwhile, per a Reuters report, Nancy Pelosi said on Tuesday that she supports including another round of $1,200 direct payments for Americans in a fresh package, apart from the $908-billion bipartisan proposal.
The need for further stimulus has been increasing post the disappointing November job reports that reflected how the U.S. labor market is losing steam.
Per the U.S. Bureau of Labor statistics data, total non-farm payroll employment rose 245,000 in November, much slower compared with the 610,000 added in October. However, the unemployment rate fell to 6.7% in November compared with October’s 6.9%.
Meanwhile, the vaccines developed by Pfizer (PFE - Free Report) and its German partner BioNTech were found to have no new safety or efficacy by the U.S. FDA, paving the way for a fast emergency-use approval. Remarkably, on Dec 2, the Pfizer-BioNTech vaccine received the emergency-use approval in the U.K. and the first shots were administered on Dec 8.
Moderna has also filed an emergency-use authorization with the FDA for the coronavirus vaccine that it has co-developed with the National Institutes of Health. Additionally, Johnson & Johnson’s announcement that it could obtain the COVID-19 late-stage trial results by January, much earlier than previously expected, boosted markets.
With a number of vaccines lined up for the emergency-use approval, all focus will shift on the distribution of these vaccines that will likely help the economy revive quickly.
S&P 500 Stocks to Benefit
Here we discuss four S&P 500 stocks that have solid growth prospects. Apart from having robust fundamentals, these stocks have a favorable combination of a VGM Score of A or B and a Zacks Rank #1 (Strong Buy) or 2 (Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.
Per the Zacks proprietary methodology, stocks with such perfect mix of elements offer stellar investment opportunities.
These fundamentally robust stocks have returned more than 30% on a year-to-date basis. Moreover, each of these stocks has a market cap of more than $10 billion.
Year-to-Date Performance
Top Picks
L Brands is riding on its sustained focus on cost containment, inventory management, merchandise and speed-to-market initiatives. Furthermore, the company’s focus on tapping international markets provides long-term growth opportunities
L Brands currently flaunts a Zacks Rank of 1 and a VGM Score of A. The Zacks Consensus Estimate for this $11.19-billion company’s fiscal 2021 earnings is pegged at $2.30 per share, having moved 101.8% north in the past 60 days. For fiscal 2022, the consensus mark for earnings has moved up 33.8% to $2.81 per share over the same time frame.
Hologic (HOLX - Free Report) is benefiting from the increasing organic revenues. Growth in Diagnostic revenues, led by solid improvement in this Zacks Rank #1 company’s Molecular Diagnostics business, buoys optimism. In addition, the commercial availability of its Genius AI Detection technology strengthens Hologic’s foothold in the global Mammography Solutions business.
Hologic also has a VGM Score of A. The consensus mark for fiscal 2021 earnings is pegged at $6.36 per share, having been raised 49.6% in the past 60 days. For fiscal 2022, the consensus mark for earnings has moved up 16.7% to $4.27 per share during the same time frame.
Micron Technology (MU - Free Report) is gaining from solid demand for memory chips from cloud-computing providers and acceleration in 5G adoptions. This $81.91-billion company has been witnessing stronger memory-chip demand from PC manufacturers and data-center operators. Further, 5G adoption beyond mobile is likely to spur demand for memory and storage, particularly in IoT devices and wireless infrastructure.
Micron currently sports a Zacks Rank of 1 and has a VGM Score of B. The Zacks Consensus Estimate for fiscal 2021 earnings is pegged at $3.63 per share, having been revised 28.3% upward in 60 days’ time. For fiscal 2022, the consensus mark for earnings has moved 29.3% north to $6.48 per share over the same time frame.
Target Corporation (TGT - Free Report) is deploying resources to enhance its omni-channel capabilities, come up with new brands, refurbish stores and expand same-day delivery options to provide seamless shopping experience. Notably, the company has been making multiple changes to its business model to adapt and stay relevant in the ever-evolving retail landscape. These factors are expected to drive top-line growth.
Target carries a Zacks Rank of 2 and has a VGM Score of A, at present. The consensus mark for this $86.59-billion company’s fiscal 2021 earnings stands at $8.66 per share, having moved 21.1% north over the past 60 days. For fiscal 2022, the consensus mark for earnings has moved 8.6% upward to $8.35 per share over the same time frame.
More Stock News: This Is Bigger than the iPhone!
It could become the mother of all technological revolutions. Apple sold a mere 1 billion iPhones in 10 years but a new breakthrough is expected to generate more than 27 billion devices in just 3 years, creating a $1.7 trillion market.
Zacks has just released a Special Report that spotlights this fast-emerging phenomenon and 6 tickers for taking advantage of it. If you don't buy now, you may kick yourself in 2021.
Image: Bigstock
S&P 500 Momentum to Continue on Stimulus Hopes: 4 Picks
The S&P 500 index closed at a record high of 3,702.25 on Dec 8, up 0.3% on the day and 14.6%, year to date. This upbeat momentum is anticipated to continue on the rising optimism over further stimulus in the United States and positive vaccine data.
On Dec 8, Treasury Secretary Steve Mnuchin tweeted about a new stimulus package worth $916 billion that he has discussed with U.S. House of Representatives Speaker Nancy Pelosi. Markedly, the package is larger than the $908-billion bipartisan proposal.
Meanwhile, per a Reuters report, Nancy Pelosi said on Tuesday that she supports including another round of $1,200 direct payments for Americans in a fresh package, apart from the $908-billion bipartisan proposal.
The need for further stimulus has been increasing post the disappointing November job reports that reflected how the U.S. labor market is losing steam.
Per the U.S. Bureau of Labor statistics data, total non-farm payroll employment rose 245,000 in November, much slower compared with the 610,000 added in October. However, the unemployment rate fell to 6.7% in November compared with October’s 6.9%.
Meanwhile, the vaccines developed by Pfizer (PFE - Free Report) and its German partner BioNTech were found to have no new safety or efficacy by the U.S. FDA, paving the way for a fast emergency-use approval. Remarkably, on Dec 2, the Pfizer-BioNTech vaccine received the emergency-use approval in the U.K. and the first shots were administered on Dec 8.
Moderna has also filed an emergency-use authorization with the FDA for the coronavirus vaccine that it has co-developed with the National Institutes of Health. Additionally, Johnson & Johnson’s announcement that it could obtain the COVID-19 late-stage trial results by January, much earlier than previously expected, boosted markets.
With a number of vaccines lined up for the emergency-use approval, all focus will shift on the distribution of these vaccines that will likely help the economy revive quickly.
S&P 500 Stocks to Benefit
Here we discuss four S&P 500 stocks that have solid growth prospects. Apart from having robust fundamentals, these stocks have a favorable combination of a VGM Score of A or B and a Zacks Rank #1 (Strong Buy) or 2 (Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.
Per the Zacks proprietary methodology, stocks with such perfect mix of elements offer stellar investment opportunities.
These fundamentally robust stocks have returned more than 30% on a year-to-date basis. Moreover, each of these stocks has a market cap of more than $10 billion.
Year-to-Date Performance
Top Picks
L Brands is riding on its sustained focus on cost containment, inventory management, merchandise and speed-to-market initiatives. Furthermore, the company’s focus on tapping international markets provides long-term growth opportunities
L Brands currently flaunts a Zacks Rank of 1 and a VGM Score of A. The Zacks Consensus Estimate for this $11.19-billion company’s fiscal 2021 earnings is pegged at $2.30 per share, having moved 101.8% north in the past 60 days. For fiscal 2022, the consensus mark for earnings has moved up 33.8% to $2.81 per share over the same time frame.
Hologic (HOLX - Free Report) is benefiting from the increasing organic revenues. Growth in Diagnostic revenues, led by solid improvement in this Zacks Rank #1 company’s Molecular Diagnostics business, buoys optimism. In addition, the commercial availability of its Genius AI Detection technology strengthens Hologic’s foothold in the global Mammography Solutions business.
Hologic also has a VGM Score of A. The consensus mark for fiscal 2021 earnings is pegged at $6.36 per share, having been raised 49.6% in the past 60 days. For fiscal 2022, the consensus mark for earnings has moved up 16.7% to $4.27 per share during the same time frame.
Micron Technology (MU - Free Report) is gaining from solid demand for memory chips from cloud-computing providers and acceleration in 5G adoptions. This $81.91-billion company has been witnessing stronger memory-chip demand from PC manufacturers and data-center operators. Further, 5G adoption beyond mobile is likely to spur demand for memory and storage, particularly in IoT devices and wireless infrastructure.
Micron currently sports a Zacks Rank of 1 and has a VGM Score of B. The Zacks Consensus Estimate for fiscal 2021 earnings is pegged at $3.63 per share, having been revised 28.3% upward in 60 days’ time. For fiscal 2022, the consensus mark for earnings has moved 29.3% north to $6.48 per share over the same time frame.
Target Corporation (TGT - Free Report) is deploying resources to enhance its omni-channel capabilities, come up with new brands, refurbish stores and expand same-day delivery options to provide seamless shopping experience. Notably, the company has been making multiple changes to its business model to adapt and stay relevant in the ever-evolving retail landscape. These factors are expected to drive top-line growth.
Target carries a Zacks Rank of 2 and has a VGM Score of A, at present. The consensus mark for this $86.59-billion company’s fiscal 2021 earnings stands at $8.66 per share, having moved 21.1% north over the past 60 days. For fiscal 2022, the consensus mark for earnings has moved 8.6% upward to $8.35 per share over the same time frame.
More Stock News: This Is Bigger than the iPhone!
It could become the mother of all technological revolutions. Apple sold a mere 1 billion iPhones in 10 years but a new breakthrough is expected to generate more than 27 billion devices in just 3 years, creating a $1.7 trillion market.
Zacks has just released a Special Report that spotlights this fast-emerging phenomenon and 6 tickers for taking advantage of it. If you don't buy now, you may kick yourself in 2021.
Click here for the 6 trades >>