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The Zacks Analyst Blog Highlights: Bluerock Residential Growth REIT, J & J Snack Foods, US Foods, Archer-Daniels-Midland Co and Comstock Mining

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For Immediate Release

Chicago, IL – June 15, 2021 – 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: Bluerock Residential Growth REIT, Inc. (BRG - Free Report) , J & J Snack Foods Corp. (JJSF - Free Report) , US Foods Holding Corp. (USFD - Free Report) , Archer-Daniels-Midland Company (ADM - Free Report) and Comstock Mining Inc. (LODE - Free Report) .

Here are highlights from Monday’s Analyst Blog:

Hot US Inflation a Boon for These 5 Stocks

Consumer prices are back in the news, with the pace of inflation touching a 13-year high last month as the U.S. economy recoups from the coronavirus-led drubbing it took last year. Per the Labor Department, as cited in a CNBC article, the consumer price index (CPI) that generally includes groceries, energy and housing costs, to name a few, jumped 5% in May from the same period a year ago. As surveyed by Dow Jones, economists had expected inflation to climb 4.7%, added the CNBC article.

Consumer prices, in fact, notched the biggest gain since the 5.3% jump in August 2008, which was just before the financial crisis that pushed the U.S. economy into a recession, the CNBC article further stated. Nonetheless, a record increase in prices of used vehicles including cars and trucks was primarily responsible for pushing the inflation rate higher last month.

The cost of food and groceries has picked up and most likely, the increase in cost will be passed on to consumers. Energy prices, by the way, have been bumping up inflation for quite some time but now, rent prices have also gone up. Rent prices, in particular, increased 0.2% last month, the largest uptick in more than a year, as mentioned in a MarketWatch article.

Prices actually increased across all sectors, thanks to the reopening of the U.S. economy and a considerable increase in the pace of vaccination. Notably, the government's massive stimulus measures and checks to millions of Americans pepped up the coronavirus-marred economy. Meanwhile, household furnishing cost, hotel cost and airline tickets continued to rise.

Thus, with the cost of living going up, returns get affected, something that doesn't bode well for investors. Another risk is that the Fed may hike rates in an inflationary environment, which tends to drag equities down.

In particular, growth stocks tend to get affected the most as inflation does have an impact on future cash flows. However, from an investment perspective, there are stocks that in reality benefit from a rise in inflation, which at present should be enticing enough for investors to watch out for.

Real estate, in particular, gains from a rise in inflation. Property prices tend to increase with rising inflation. Additionally, as property prices rise, rent increases, thereby resulting in higher rental income. In fact, as earlier mentioned, rent prices have already increased in May. Now, the best way to invest in real estate is through real estate investment trust (REIT).

Similarly, companies that are part of the consumer staples sector have pricing power or in other words, they can raise their prices with inflation, unlike other sectors. So, they comparatively stand to benefit from a rise in inflation.

Last but not least, gold doesn't lose value at times of higher inflation. In fact, demand for gold increases when inflation rises. By the way, gold can be invested by buying gold mining stocks. We have, hence, highlighted five noteworthy stocks from the aforesaid areas that stand to gain from a rise in inflation. These stocks currently flaunt a Zacks Rank #1 (Strong Buy) or 2 (Buy).

Bluerock Residential Growth REIT operates as a real estate investment trust. It acquires apartment properties in demographically attractive growth markets throughout the United States. The company currently has a Zacks Rank #2. The company's expected earnings growth rate for the next quarter and year is 6.3% and 17.9%, respectively.

J & J Snack Foods is an American manufacturer, marketer, and distributor of branded niche snack foods and frozen beverages for the food service and retail supermarket industries. The company currently has a Zacks Rank #1. The company's expected earnings growth rate for the current year is 113.5%. You can see the complete list of today's Zacks #1 Rank stocks here.

US Foods Holding is a foodservice distributor. The company currently has a Zacks Rank #1. The company's expected earnings growth rate for the current year is 1,677.8%.

Archer-Daniels-Midland Co. is one of the leading producers of food and beverage ingredients as well as goods made from various agricultural products. The company currently has a Zacks Rank #2. The company's expected earnings growth rate for the current year is 25.9%.

Comstock Mining, formerly known as GoldSpring, Inc., is a North American precious metals mining company, focused in Nevada, with property in the Comstock Lode District. The company currently has a Zacks Rank #2. The company's expected earnings growth rate for the current year is 1,050%.

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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.