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Wall Street Unfazed by Lingering Unease in Washington: 5 Picks

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US stocks by and large remained volatile in the last trading session highlighting the impact of the ongoing political turmoil in Washington, which has kept investors a little on edge. Political resentfulness between Democrats and Republicans following violence at Capitol Hill to certain extent weighed on market sentiment yesterday. But still, market participants seem much more interested in knowing the measures that the government would eventually take to pep-up the coronavirus-battered economy.

Investors, in fact, have chosen to sidestep political issues so far this year and instead remain hopeful regarding economic recovery at some point in time triggered by the rollout of the coronavirus vaccine candidate. It’s true that at present coronavirus cases continue to rise across the United States, and hospitalization rates are increasing at an alarming pace too but the vaccine rollout should certainly curb the spread of the deadly virus sooner than later. As a result, the stock market may face speed bumps at the beginning of the year but in due course it would be better for the economy vis-à-vis the stock market.

The broader market, by the way, is already off to a promising start, with the S&P 500 gaining 1.4% year-to-date. What’s more, the month of January marks good times for stock investors as well. After all, since 1954, the average-price only return for the S&P 500 came in at 1.05% in January, surpassing the average 0.67% return in the rest of the 11 months, as quoted in a MarketWatch article.

And it won’t be any different this time around. Investors remain sanguine about further additional stimulus measures by the government, and also expect the Fed to continue its accommodative monetary policy, which no doubt bodes well for the stock market’s upward trajectory. In fact, December’s weak jobs data has nothing but confirmed that new stimulus packages are unquestionably on the anvil. Additionally, corporate houses remain hopeful that they are going to rake in more profits this year compared to last year. Needless to say, the pandemic did squeeze corporate profits last year.

5 of the Best Growth Stocks to Buy Now

Expectations about further stimulus measures, Fed’s supportive stance, and vaccine rollout have helped Wall Street investors remain optimistic on the whole and look beyond the political unrest in Washington. Banking on such positives, the stock market is well-poised to gain in the long run. Thus, it’s imperative for investors to invest in stocks positioned to grow now.

Thanks to our style score system, we have been able to identify five growth stocks. Our research shows that stocks with a Growth Score of A or B when combined a Zacks Rank #1 (Strong Buy) or 2 (Buy) offer the best opportunities in the growth investing space.

Altus Midstream Company (ALTM - Free Report) is a pure-play, Permian Basin midstream C-corporation. The company, currently, has a Zacks Rank #1 and a Growth Score of B. The Zacks Consensus Estimate for its current year earnings increased 46% over the past 60 days. The company’s expected earnings growth rate for the current year is 364.4%.

The Chemours Company (CC - Free Report) is a leading provider of performance chemicals that are key ingredients in end-products and processes across a host of industries. The company, currently, has a Zacks Rank #1 and a Growth Score of B. The Zacks Consensus Estimate for its current year earnings increased 17.5% over the past 60 days. The company’s expected earnings growth rate for the current year is 55.8%.

D.R. Horton, Inc. (DHI - Free Report) is one of the leading national homebuilders, primarily engaged in the construction and sale of single-family houses both in the entry-level and move-up markets. The company, currently, has a Zacks Rank #1 and a Growth Score of B. The Zacks Consensus Estimate for its current year earnings increased 3.5% over the past 60 days. The company’s expected earnings growth rate for the current year is 25.1%. You can see the complete list of today’s Zacks #1 Rank stocks here.

DocuSign Inc. (DOCU - Free Report) provides e-signature solutions. The company offers services to mortgage, non-profit, government, real estate, insurance, technology and healthcare industries. It, currently, has a Zacks Rank #2 and a Growth Score of A. The Zacks Consensus Estimate for its current year earnings increased 34.5% over the past 60 days. The company’s expected earnings growth rate for the current year is 138.7%.

HarleyDavidson, Inc. (HOG - Free Report) manufactures and sells custom, cruiser, and touring motorcycles. The company, currently, has a Zacks Rank #1 and a Growth Score of B. The Zacks Consensus Estimate for its current year earnings increased 14.7% over the past 90 days. The company’s expected earnings growth rate for the current year is 279.7%.

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