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The Zacks Analyst Blog Highlights: FedEx, Deere & Co, D.R. Horton, Fortescue Metals and Fiat Chrysler
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For Immediate Release
Chicago, IL – December 30, 2020 – Zacks.com announces the list of stocks featured in the Analyst Blog. Every day the Zacks Equity Research analysts discuss the latest news and events impacting stocks and the financial markets. Stocks recently featured in the blog include: FedEx Corp. (FDX - Free Report) , Deere & Company (DE - Free Report) , D.R. Horton, Inc. (DHI - Free Report) , Fortescue Metals Group Ltd. (FSUGY - Free Report) and Fiat Chrysler Automobiles N.V. .
Here are highlights from Tuesday’s Analyst Blog:
5 Stocks Looking to Hit New Highs in 2021
What a year this has been.
After enduring one of the worst pandemics in the history of mankind, the equity markets have apparently become much more resilient as stocks continue to reach record levels defying all odds. The market bulls have truly put up a spectacular show.
On a year-to-date basis, the Dow has moved up 5.3%, the S&P 14.7%, the tech-heavy Nasdaq 41.9% and the small-cap Russell 2000 19.8%.
But the best part is that it looks like there is a lot more upside left as we enter the New Year.
What’s Driving the Rally
Wall Street has seen a fantastic rally since the March low.
The coronavirus pandemic triggered a deep economic downturn of uncertain duration. The Federal Reserve stepped in with a broad array of actions to limit the damage. This includes up to $2.3 trillion in lending to support households, employers, financial markets, and state and local governments.
The Fed kept its benchmark interest rate anchored near zero and promised to keep it there until the economy recovers. Though economic activity and employment levels are gradually on the way up, these remain well below their pre-pandemic levels. Nevertheless, a ramp-up in federal infrastructure spending as part of resurrecting the economy will likely help the market retain its mojo.
Looking Past the Pandemic
The vaccination process has kickstarted in the United States, with more than 2 million individuals having received the first of the two coronavirus vaccine shots. With the mass immunization process, the new year is likely to witness a corona-free world.
Moreover, outgoing President Donald Trump has signed a $900 billion pandemic relief package that will deliver long-sought cash to businesses and individuals. The bill also averts a partial federal government shutdown with a provision for $1.4 trillion to fund government agencies through September. Adding to it, the Democrats are promising more aid once President-elect Joe Biden assumes office, thereby aiming to assuage the fears of a rerun with the emergence of a new coronavirus variant.
The United Kingdom and the European Union struck a historic Brexit deal that cheered global markets. While most market experts remain bullish on the prospects of companies that do business with the region, they caution that any tangible benefit will be visible over the long term.
5 Promising Picks for 2021
Here we have selected five large-cap stocks that are expected to give pretty good returns to investors. These industry leaders are well positioned to hit several new highs in 2021, given the upbeat sentiment in the market. Keeping that in mind, one should have a buy-and-hold approach.
FedEx: Headquartered in Memphis, TN, FedEx provides customers and businesses worldwide with a broad portfolio of transportation, e-commerce and business services. The company has completed the acquisition of ShopRunner, the e-commerce platform that directly connects brands and merchants with online shoppers. FedEx Express, a subsidiary of FedEx and the world’s largest express transportation company, announced that operations are underway to transport Moderna’s COVID-19 vaccines for McKesson throughout the United States.
FedEx currently sports a Zacks Rank #1 (Strong Buy) and has a VGM Score of A. The company delivered a trailing four-quarter positive earnings surprise of 46.2%, on average. The Zacks Consensus Estimate for its next-year earnings has been revised 8.9% upward over the past 30 days. Year to date, the stock has gained 73.8% compared with 64.2% growth of the industry.
Deere & Co: Headquartered in Moline, IL, Deere is a world leader in providing advanced products, technology and services for customers whose work is revolutionizing agriculture and construction. John Deere, the flagship brand of Deere, has obtained 5G licenses in five counties in Iowa and Illinois as part of the Federal Communications Commission auction for the Citizens Broadband Radio Service 3.5 GHz spectrum. This will enable John Deere to accelerate the availability of 5G in its largest manufacturing facilities in North America.
Deere sports a Zacks Rank #1 and has a VGM Score of B. The company delivered a trailing four-quarter positive earnings surprise of 52.6%, on average. The consensus estimate for its next-year earnings has been revised 20.3% upward over the past 30 days. Year to date, the stock has returned 54.4% compared with 50.5% growth of the industry.
D.R. Horton: Based in Arlington, TX, D.R. Horton operates as a homebuilding company in East, Midwest, Southeast, South Central, Southwest and West regions in the United States. The company engages in the acquisition and development of land, and construction and sale of homes in 29 states and 88 markets under the names of D.R. Horton, America’s Builder, Express Homes, Emerald Homes and Freedom Homes.
D.R. Horton sports a Zacks Rank #1 and has a VGM Score of B. The company delivered a trailing four-quarter positive earnings surprise of 21.6%, on average. The consensus estimate for its next-year earnings has been revised 1.8% upward over the past 30 days. Year to date, the stock has moved up 33.5% compared with 26.9% growth of the industry.
Fortescue Metals Group: Headquartered in East Perth, Australia, Fortescue is engaged in the production and export of iron ore in the Pilbara region of Western Australia. The company also explores for copper and gold deposits. It is focused on achieving its vision of being the world’s safest, lowest cost and most profitable mining company. It is a major supplier to steel mills in Asia, primarily China.
Fortescue sports a Zacks Rank #1 and has a VGM Score of A. The consensus estimate for the company’s next-year earnings has been revised 21.9% upward over the past 30 days. Year to date, the stock has soared 143.1% compared with 26.7% growth of the industry.
Fiat Chrysler: Based in London, the United Kingdom, Fiat Chrysler is a global automaker that designs, engineers, manufactures and sells vehicles in a portfolio of exciting brands. The company operates through five segments — North America, LATAM, APAC, EMEA and Maserati. It also sells parts and services under the Mopar name and operates in the components and production systems sectors under the Comau and Teksid brands.
Fiat Chrysler sports a Zacks Rank #1 and has a VGM Score of A. The consensus estimate for the company’s next-year earnings has been revised 22.7% upward over the past 30 days. Year to date, the stock has added 22.5% compared with 15.6% growth of the industry.
Wrapping Up
Though investors have been encouraged by the development of coronavirus vaccines, the optimism has been dented to some extent by the discovery of the more contagious variant.
The market is expected to reflect the vaccine rollout in the first half of 2021. We believe that there will be a bull market correction in due course, and that could be a great opportunity for investors to average down their portfolio holdings.
For now, one cannot be oblivious to the ‘reasonably worrisome’ disconnect between the economy and the market. So make sure you are betting on the right stocks.
Happy New Year!
Zacks Top 10 Stocks for 2021
In addition to the stocks discussed above, would you like to know about our 10 top tickers for the entirety of 2021?
Past performance is no guarantee of future results. Inherent in any investment is the potential for loss. This material is being provided for informational purposes only and nothing herein constitutes investment, legal, accounting or tax advice, or a recommendation to buy, sell or hold a security. No recommendation or advice is being given as to whether any investment is suitable for a particular investor. It should not be assumed that any investments in securities, companies, sectors or markets identified and described were or will be profitable. All information is current as of the date of herein and is subject to change without notice. Any views or opinions expressed may not reflect those of the firm as a whole. Zacks Investment Research does not engage in investment banking, market making or asset management activities of any securities. These returns are from hypothetical portfolios consisting of stocks with Zacks Rank = 1 that were rebalanced monthly with zero transaction costs. These are not the returns of actual portfolios of stocks. The S&P 500 is an unmanaged index. Visit https://www.zacks.com/performance for information about the performance numbers displayed in this press release.
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The Zacks Analyst Blog Highlights: FedEx, Deere & Co, D.R. Horton, Fortescue Metals and Fiat Chrysler
For Immediate Release
Chicago, IL – December 30, 2020 – Zacks.com announces the list of stocks featured in the Analyst Blog. Every day the Zacks Equity Research analysts discuss the latest news and events impacting stocks and the financial markets. Stocks recently featured in the blog include: FedEx Corp. (FDX - Free Report) , Deere & Company (DE - Free Report) , D.R. Horton, Inc. (DHI - Free Report) , Fortescue Metals Group Ltd. (FSUGY - Free Report) and Fiat Chrysler Automobiles N.V. .
Here are highlights from Tuesday’s Analyst Blog:
5 Stocks Looking to Hit New Highs in 2021
What a year this has been.
After enduring one of the worst pandemics in the history of mankind, the equity markets have apparently become much more resilient as stocks continue to reach record levels defying all odds. The market bulls have truly put up a spectacular show.
On a year-to-date basis, the Dow has moved up 5.3%, the S&P 14.7%, the tech-heavy Nasdaq 41.9% and the small-cap Russell 2000 19.8%.
But the best part is that it looks like there is a lot more upside left as we enter the New Year.
What’s Driving the Rally
Wall Street has seen a fantastic rally since the March low.
The coronavirus pandemic triggered a deep economic downturn of uncertain duration. The Federal Reserve stepped in with a broad array of actions to limit the damage. This includes up to $2.3 trillion in lending to support households, employers, financial markets, and state and local governments.
The Fed kept its benchmark interest rate anchored near zero and promised to keep it there until the economy recovers. Though economic activity and employment levels are gradually on the way up, these remain well below their pre-pandemic levels. Nevertheless, a ramp-up in federal infrastructure spending as part of resurrecting the economy will likely help the market retain its mojo.
Looking Past the Pandemic
The vaccination process has kickstarted in the United States, with more than 2 million individuals having received the first of the two coronavirus vaccine shots. With the mass immunization process, the new year is likely to witness a corona-free world.
Moreover, outgoing President Donald Trump has signed a $900 billion pandemic relief package that will deliver long-sought cash to businesses and individuals. The bill also averts a partial federal government shutdown with a provision for $1.4 trillion to fund government agencies through September. Adding to it, the Democrats are promising more aid once President-elect Joe Biden assumes office, thereby aiming to assuage the fears of a rerun with the emergence of a new coronavirus variant.
The United Kingdom and the European Union struck a historic Brexit deal that cheered global markets. While most market experts remain bullish on the prospects of companies that do business with the region, they caution that any tangible benefit will be visible over the long term.
5 Promising Picks for 2021
Here we have selected five large-cap stocks that are expected to give pretty good returns to investors. These industry leaders are well positioned to hit several new highs in 2021, given the upbeat sentiment in the market. Keeping that in mind, one should have a buy-and-hold approach.
FedEx: Headquartered in Memphis, TN, FedEx provides customers and businesses worldwide with a broad portfolio of transportation, e-commerce and business services. The company has completed the acquisition of ShopRunner, the e-commerce platform that directly connects brands and merchants with online shoppers. FedEx Express, a subsidiary of FedEx and the world’s largest express transportation company, announced that operations are underway to transport Moderna’s COVID-19 vaccines for McKesson throughout the United States.
FedEx currently sports a Zacks Rank #1 (Strong Buy) and has a VGM Score of A. The company delivered a trailing four-quarter positive earnings surprise of 46.2%, on average. The Zacks Consensus Estimate for its next-year earnings has been revised 8.9% upward over the past 30 days. Year to date, the stock has gained 73.8% compared with 64.2% growth of the industry.
You can see the complete list of today’s Zacks #1 Rank stocks here.
Deere & Co: Headquartered in Moline, IL, Deere is a world leader in providing advanced products, technology and services for customers whose work is revolutionizing agriculture and construction. John Deere, the flagship brand of Deere, has obtained 5G licenses in five counties in Iowa and Illinois as part of the Federal Communications Commission auction for the Citizens Broadband Radio Service 3.5 GHz spectrum. This will enable John Deere to accelerate the availability of 5G in its largest manufacturing facilities in North America.
Deere sports a Zacks Rank #1 and has a VGM Score of B. The company delivered a trailing four-quarter positive earnings surprise of 52.6%, on average. The consensus estimate for its next-year earnings has been revised 20.3% upward over the past 30 days. Year to date, the stock has returned 54.4% compared with 50.5% growth of the industry.
D.R. Horton: Based in Arlington, TX, D.R. Horton operates as a homebuilding company in East, Midwest, Southeast, South Central, Southwest and West regions in the United States. The company engages in the acquisition and development of land, and construction and sale of homes in 29 states and 88 markets under the names of D.R. Horton, America’s Builder, Express Homes, Emerald Homes and Freedom Homes.
D.R. Horton sports a Zacks Rank #1 and has a VGM Score of B. The company delivered a trailing four-quarter positive earnings surprise of 21.6%, on average. The consensus estimate for its next-year earnings has been revised 1.8% upward over the past 30 days. Year to date, the stock has moved up 33.5% compared with 26.9% growth of the industry.
Fortescue Metals Group: Headquartered in East Perth, Australia, Fortescue is engaged in the production and export of iron ore in the Pilbara region of Western Australia. The company also explores for copper and gold deposits. It is focused on achieving its vision of being the world’s safest, lowest cost and most profitable mining company. It is a major supplier to steel mills in Asia, primarily China.
Fortescue sports a Zacks Rank #1 and has a VGM Score of A. The consensus estimate for the company’s next-year earnings has been revised 21.9% upward over the past 30 days. Year to date, the stock has soared 143.1% compared with 26.7% growth of the industry.
Fiat Chrysler: Based in London, the United Kingdom, Fiat Chrysler is a global automaker that designs, engineers, manufactures and sells vehicles in a portfolio of exciting brands. The company operates through five segments — North America, LATAM, APAC, EMEA and Maserati. It also sells parts and services under the Mopar name and operates in the components and production systems sectors under the Comau and Teksid brands.
Fiat Chrysler sports a Zacks Rank #1 and has a VGM Score of A. The consensus estimate for the company’s next-year earnings has been revised 22.7% upward over the past 30 days. Year to date, the stock has added 22.5% compared with 15.6% growth of the industry.
Wrapping Up
Though investors have been encouraged by the development of coronavirus vaccines, the optimism has been dented to some extent by the discovery of the more contagious variant.
The market is expected to reflect the vaccine rollout in the first half of 2021. We believe that there will be a bull market correction in due course, and that could be a great opportunity for investors to average down their portfolio holdings.
For now, one cannot be oblivious to the ‘reasonably worrisome’ disconnect between the economy and the market. So make sure you are betting on the right stocks.
Happy New Year!
Zacks Top 10 Stocks for 2021
In addition to the stocks discussed above, would you like to know about our 10 top tickers for the entirety of 2021?
These 10 are painstakingly hand-picked from over 4,000 companies covered by the Zacks Rank. They are our primary picks to buy and hold. Start Your Access to the New Zacks Top 10 Stocks >>
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Past performance is no guarantee of future results. Inherent in any investment is the potential for loss. This material is being provided for informational purposes only and nothing herein constitutes investment, legal, accounting or tax advice, or a recommendation to buy, sell or hold a security. No recommendation or advice is being given as to whether any investment is suitable for a particular investor. It should not be assumed that any investments in securities, companies, sectors or markets identified and described were or will be profitable. All information is current as of the date of herein and is subject to change without notice. Any views or opinions expressed may not reflect those of the firm as a whole. Zacks Investment Research does not engage in investment banking, market making or asset management activities of any securities. These returns are from hypothetical portfolios consisting of stocks with Zacks Rank = 1 that were rebalanced monthly with zero transaction costs. These are not the returns of actual portfolios of stocks. The S&P 500 is an unmanaged index. Visit https://www.zacks.com/performance for information about the performance numbers displayed in this press release.