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The Zacks Analyst Blog Highlights: MercadoLibre, TJX Companies and BASF
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For Immediate Release
Chicago, IL – August 24, 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: MercadoLibre, Inc. (MELI - Free Report) , The TJX Companies, Inc. (TJX - Free Report) and BASF SE (BASFY - Free Report) .
Here are highlights from Monday’s Analyst Blog:
The Uneven Economic Development Indicator: Global Week Ahead
Late August is here.
That means the Jackson Hole symposium will keep the cable news shows focused on macro discussion in the last couple days of the Global Week Ahead.
The Kansas City Fed has announced it will host its 2021 Economic Policy Symposium, "Macroeconomic Policy in an Uneven Economy,"virtually on Friday, Aug. 27th.
The program's full agenda will be available at the external link www.KansasCityFed.org at 7 p.m. CT/8 p.m. ET on Wednesday Aug. 26th.
Each year since 1978, the Federal Reserve Bank of Kansas City has sponsored a symposium on an important economic issue facing the U.S. and world economies.
The Federal Reserve Bank of Kansas City's Economic Policy Symposium in Jackson Hole, Wyoming, is one of the longest-standing central banking conferences in the world.
The event brings together economists, financial market participants, academics, U.S. government representatives and news media to discuss long-term policy issues of mutual concern.
The Kansas City Fed selects the symposium topic each year and asks experts to write papers on related subtopics. To date, more than 150 authors have presented papers on topics such as inflation, labor markets and international trade.
Continuing with past practice, conference papers and other materials will be posted as they are presented during the event.
Next are Reuters' five world market themes, reordered for equity traders—
(1) Fed Taper Hand-Wringing Will Pick Up at Jackson Hole
Fronted by Jerome Powell, the great and good of the central banking world gather at Jackson Hole, Wyoming, from Thursday to Saturday.
The big question for the Federal Reserve Chair: When is taper time?
The Fed is expected to outline taper plans in September, but markets are hoping for signals from Powell at the annual research conference on the trajectory of the $120 billion-a-month asset purchase program.
Easy-money policies have buttressed equities, and any inklings about Fed plans to dial back could cause ructions, with July minutes having just provided a taste of that.
Policymakers looked far from united in their views.
But the prospect of stimulus being reduced when the spread of the Delta coronavirus variant and supply chain issues loom over a recovery that has started to look tired has spooked markets.
(2) The German Election, the Bundestag, Is September 25th
The past few national elections in Germany have been rather unexciting affairs. But a shift indicated in recent opinion polls suggests the one on Sept. 26 could prove different.
The center-left Social Democrats have overtaken the Greens and are closing the gap with Chancellor Angela Merkel's conservative Christian Democrats.
That means for the first time this year, a two-way coalition between her conservatives and the Greens, one anticipated outcome, is forecast to be narrowly short of a majority of seats.
If that turns out to be the case, Europe's biggest economy could be set for months of uncertainty; analysts note the range of possible three-way coalition tie-ups is much wider than in the past. Don't be surprised if markets pay more attention to Germany in the coming days.
(3) Have Eurozone PMIs Peaked, Implying Peak GDP Growth?
It's been a good few months for European stocks.
Since March 2020, they've climbed more than 70%, hitting a record high in recent days thanks to accelerating growth and falling interest rates. European PMIs rose to a 20-year high and inflation-adjusted bond yields are at record lows.
But there are headwinds in the form of rising prices, supply chain issues, labor shortages and the Delta variant.
PMIs in the region over the next few days will show just how strong those might be.
(4) Watch China for Weak Macro Data and Policy Responses
In recent weeks data for China's export growth, factory output and retail sales have all missed forecasts as COVID-19 outbreaks dampened demand at home and abroad.
Industrial profits due Friday may find some relief in the recent retreat of commodity prices. But it's clear the world's second-biggest economy now faces challenges and not all of them can be dismissed by investors as short-term distortions.
Policymakers have tried to help by cutting bank reserve requirements to boost lending, and they have also attempted to soothe worries about scattergun crackdowns.
But that has yet to calm equity markets, which have shed about $1 trillion in value since February and still seem in search of stable flows.
(5) Afghanistan Pullout Headlines
The aftershocks of the rapid fall of Afghanistan to Taliban insurgents will continue to be felt in the days ahead. There is little doubt as to the humanitarian impact of the crisis. The longer-term fallout for the region's economy and global markets is less certain — as is Washington's international role.
President Biden has seen his approval ratings drop to record lows, possibly making it harder for him to push through his agenda.
The relationship between the U.S. and Britain — Washington's staunchest European ally — looks under strain with Westminster lawmakers voicing unusual dissent.
Vice President Kamala Harris' visit to Singapore and Vietnam in the coming days is aimed at countering China's growing influence.
But she will also have to contend with the Afghanistan crisis, which has left allies questioning the credibility of U.S. foreign policy promises.
Top Zacks #1 Rank (STRONG BUY) Stocks
(1) MercadoLibre: This is the Internet commerce darling of Latin America. I see an unbelievable $1,786 share price. This gives the stock a $88.8B market cap. I see a Zacks Value score of F (no surprise there!), a Zacks Growth score of A, and a Zacks Momentum score of A.
(2) TJX Companies: Surprised to see an in-store discount retailer on our #1 list? Don't be. This is a $74 stock with a market cap of $89.3B. I see a Zacks Value score of F, a Zacks Growth score of D, and a Zacks Momentum score of B.
(3) BASF: This is the big German chemical firm. I see a low $19 share price, making for a $69.7B market cap. There is a Zacks Value score of C, a Zacks Growth score of D, and a Zacks Momentum score of D. When do the chemical stocks turn around? We shall see.
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: MercadoLibre, TJX Companies and BASF
For Immediate Release
Chicago, IL – August 24, 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: MercadoLibre, Inc. (MELI - Free Report) , The TJX Companies, Inc. (TJX - Free Report) and BASF SE (BASFY - Free Report) .
Here are highlights from Monday’s Analyst Blog:
The Uneven Economic Development Indicator: Global Week Ahead
Late August is here.
That means the Jackson Hole symposium will keep the cable news shows focused on macro discussion in the last couple days of the Global Week Ahead.
The Kansas City Fed has announced it will host its 2021 Economic Policy Symposium, "Macroeconomic Policy in an Uneven Economy," virtually on Friday, Aug. 27th.
The program's full agenda will be available at the external link www.KansasCityFed.org at 7 p.m. CT/8 p.m. ET on Wednesday Aug. 26th.
Each year since 1978, the Federal Reserve Bank of Kansas City has sponsored a symposium on an important economic issue facing the U.S. and world economies.
The Federal Reserve Bank of Kansas City's Economic Policy Symposium in Jackson Hole, Wyoming, is one of the longest-standing central banking conferences in the world.
The event brings together economists, financial market participants, academics, U.S. government representatives and news media to discuss long-term policy issues of mutual concern.
The Kansas City Fed selects the symposium topic each year and asks experts to write papers on related subtopics. To date, more than 150 authors have presented papers on topics such as inflation, labor markets and international trade.
Continuing with past practice, conference papers and other materials will be posted as they are presented during the event.
All papers are available online here.
Next are Reuters' five world market themes, reordered for equity traders—
(1) Fed Taper Hand-Wringing Will Pick Up at Jackson Hole
Fronted by Jerome Powell, the great and good of the central banking world gather at Jackson Hole, Wyoming, from Thursday to Saturday.
The big question for the Federal Reserve Chair: When is taper time?
The Fed is expected to outline taper plans in September, but markets are hoping for signals from Powell at the annual research conference on the trajectory of the $120 billion-a-month asset purchase program.
Easy-money policies have buttressed equities, and any inklings about Fed plans to dial back could cause ructions, with July minutes having just provided a taste of that.
Policymakers looked far from united in their views.
But the prospect of stimulus being reduced when the spread of the Delta coronavirus variant and supply chain issues loom over a recovery that has started to look tired has spooked markets.
(2) The German Election, the Bundestag, Is September 25th
The past few national elections in Germany have been rather unexciting affairs. But a shift indicated in recent opinion polls suggests the one on Sept. 26 could prove different.
The center-left Social Democrats have overtaken the Greens and are closing the gap with Chancellor Angela Merkel's conservative Christian Democrats.
That means for the first time this year, a two-way coalition between her conservatives and the Greens, one anticipated outcome, is forecast to be narrowly short of a majority of seats.
If that turns out to be the case, Europe's biggest economy could be set for months of uncertainty; analysts note the range of possible three-way coalition tie-ups is much wider than in the past. Don't be surprised if markets pay more attention to Germany in the coming days.
(3) Have Eurozone PMIs Peaked, Implying Peak GDP Growth?
It's been a good few months for European stocks.
Since March 2020, they've climbed more than 70%, hitting a record high in recent days thanks to accelerating growth and falling interest rates. European PMIs rose to a 20-year high and inflation-adjusted bond yields are at record lows.
But there are headwinds in the form of rising prices, supply chain issues, labor shortages and the Delta variant.
PMIs in the region over the next few days will show just how strong those might be.
(4) Watch China for Weak Macro Data and Policy Responses
In recent weeks data for China's export growth, factory output and retail sales have all missed forecasts as COVID-19 outbreaks dampened demand at home and abroad.
Industrial profits due Friday may find some relief in the recent retreat of commodity prices. But it's clear the world's second-biggest economy now faces challenges and not all of them can be dismissed by investors as short-term distortions.
Policymakers have tried to help by cutting bank reserve requirements to boost lending, and they have also attempted to soothe worries about scattergun crackdowns.
But that has yet to calm equity markets, which have shed about $1 trillion in value since February and still seem in search of stable flows.
(5) Afghanistan Pullout Headlines
The aftershocks of the rapid fall of Afghanistan to Taliban insurgents will continue to be felt in the days ahead. There is little doubt as to the humanitarian impact of the crisis. The longer-term fallout for the region's economy and global markets is less certain — as is Washington's international role.
President Biden has seen his approval ratings drop to record lows, possibly making it harder for him to push through his agenda.
The relationship between the U.S. and Britain — Washington's staunchest European ally — looks under strain with Westminster lawmakers voicing unusual dissent.
Vice President Kamala Harris' visit to Singapore and Vietnam in the coming days is aimed at countering China's growing influence.
But she will also have to contend with the Afghanistan crisis, which has left allies questioning the credibility of U.S. foreign policy promises.
Top Zacks #1 Rank (STRONG BUY) Stocks
(1) MercadoLibre: This is the Internet commerce darling of Latin America. I see an unbelievable $1,786 share price. This gives the stock a $88.8B market cap. I see a Zacks Value score of F (no surprise there!), a Zacks Growth score of A, and a Zacks Momentum score of A.
(2) TJX Companies: Surprised to see an in-store discount retailer on our #1 list? Don't be. This is a $74 stock with a market cap of $89.3B. I see a Zacks Value score of F, a Zacks Growth score of D, and a Zacks Momentum score of B.
(3) BASF: This is the big German chemical firm. I see a low $19 share price, making for a $69.7B market cap. There is a Zacks Value score of C, a Zacks Growth score of D, and a Zacks Momentum score of D. When do the chemical stocks turn around? We shall see.
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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.