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3 S&P 500 Stocks to Buy as the Index Sees Best Day Since March
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Major three U.S. benchmarks rallied on Oct 14, with the broader S&P 500 registering its best performance in more than seven months. The S&P 500 increased 1.7% to close at 4438.26 during yesterday’s trading session, its largest one-day percentage jump since Mar 5, citing a Wall Street Journal article. The rally among U.S. stocks was broad-based, with all sectors in the S&P 500 finishing in the green.
For quite some time, the stock market was subjected to bouts of volatility. After all, investors were concerned that mounting inflation might compel consumers to spend less, which doesn’t bode well for the economy vis-à-vis the stock market. Supply chain disruptions and increased energy prices raised concerns about an imminent increase in the cost of essential goods and services. Notably, the Fed’s preferred gauge of measuring inflation witnessed its biggest jump in 30 years on a yearly basis in August.
No doubt, such concerns compelled investors to pull back from stocks. However, a series of tailwinds helped the stock market bounce back and scale northward on Oct 14. Predominantly strong third-quarter earnings results from banks as well as healthcare companies bolstered investors’ sentiments. From Bank of America to Citi group to Morgan Stanley to Walgreens Boots Alliance to UnitedHealth, all posted upbeat earnings results that mostly topped estimates. Banks, in particular, gained from a rebounding economy, while trading and deals helped them garner profits.
Adding to optimism was a positive economic report and inflation data that helped soothed fears over the possibility of higher interest rates. Weekly jobless claims numbers recently came in lower than anticipated, indicating that the labor market has been strong for the time being. Last week, U.S. jobless claims were 293,000, down from 329,000 the week before, and it’s also for the first time that the number of weekly jobless claims fell below the 300,000 mark during the pandemic, as mentioned in a CNBC article.
By the way, the producers’ price index for the month of September came in lighter than expected. The producer price index increased 0.5% in September but was less than economists’ expectations of an increase of 0.6% and below August’s 0.7% rise, as mentioned in the Wall Street Journal article. Notably, a slower-than-expected rise in wholesale prices instilled some optimism among investors that the Fed may not aggressively hike rates in the near term. Lest we forget, it’s the Fed’s initiative to maintain its accommodative monetary policy that helped the economy along with the broader stock market gain traction amid the pandemic.
Thus, thanks to such positive developments, it’s widely expected that the S&P 500 has not only registered a record jump yesterday but will continue to scale northward. Thus, investing in growth-oriented stocks listed in the S&P 500 that can make the most of the bullish trend seems prudent at the moment. We have, thus, selected three such stocks that flaunt a Zacks Rank #1 (Strong Buy) and a Growth Score of A. You can seethe complete list of today’s Zacks #1 Rank stocks here.
Best Buy Co., Inc. (BBY - Free Report) is a multinational specialty retailer of consumer electronics, home office products, entertainment software, communication, food preparation, wellness, heath, security, appliances and related services. The Zacks Consensus Estimate for its current-year earnings has climbed 17.3% over the past 60 days. The company’s expected earnings growth rate for the current year is 26.2%.
The Gap, Inc. (GPS - Free Report) is a premier international specialty retailer offering diverse clothing, accessories, and personal care products. The Zacks Consensus Estimate for its current-year earnings has climbed 24.2% over the past 60 days. The company’s expected earnings growth rate for the current year is 204.7%.
Tesla, Inc. (TSLA - Free Report) has evolved into a dynamic technology innovator. It has transformed the EV market how Amazon changed the retail landscape and Netflix revolutionized entertainment. The Zacks Consensus Estimate for its current-year earnings has advanced 5.1% over the past 60 days. The company’s expected earnings growth rate for the current year is 77.6%.
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3 S&P 500 Stocks to Buy as the Index Sees Best Day Since March
Major three U.S. benchmarks rallied on Oct 14, with the broader S&P 500 registering its best performance in more than seven months. The S&P 500 increased 1.7% to close at 4438.26 during yesterday’s trading session, its largest one-day percentage jump since Mar 5, citing a Wall Street Journal article. The rally among U.S. stocks was broad-based, with all sectors in the S&P 500 finishing in the green.
For quite some time, the stock market was subjected to bouts of volatility. After all, investors were concerned that mounting inflation might compel consumers to spend less, which doesn’t bode well for the economy vis-à-vis the stock market. Supply chain disruptions and increased energy prices raised concerns about an imminent increase in the cost of essential goods and services. Notably, the Fed’s preferred gauge of measuring inflation witnessed its biggest jump in 30 years on a yearly basis in August.
No doubt, such concerns compelled investors to pull back from stocks. However, a series of tailwinds helped the stock market bounce back and scale northward on Oct 14. Predominantly strong third-quarter earnings results from banks as well as healthcare companies bolstered investors’ sentiments. From Bank of America to Citi group to Morgan Stanley to Walgreens Boots Alliance to UnitedHealth, all posted upbeat earnings results that mostly topped estimates. Banks, in particular, gained from a rebounding economy, while trading and deals helped them garner profits.
Adding to optimism was a positive economic report and inflation data that helped soothed fears over the possibility of higher interest rates. Weekly jobless claims numbers recently came in lower than anticipated, indicating that the labor market has been strong for the time being. Last week, U.S. jobless claims were 293,000, down from 329,000 the week before, and it’s also for the first time that the number of weekly jobless claims fell below the 300,000 mark during the pandemic, as mentioned in a CNBC article.
By the way, the producers’ price index for the month of September came in lighter than expected. The producer price index increased 0.5% in September but was less than economists’ expectations of an increase of 0.6% and below August’s 0.7% rise, as mentioned in the Wall Street Journal article. Notably, a slower-than-expected rise in wholesale prices instilled some optimism among investors that the Fed may not aggressively hike rates in the near term. Lest we forget, it’s the Fed’s initiative to maintain its accommodative monetary policy that helped the economy along with the broader stock market gain traction amid the pandemic.
Thus, thanks to such positive developments, it’s widely expected that the S&P 500 has not only registered a record jump yesterday but will continue to scale northward. Thus, investing in growth-oriented stocks listed in the S&P 500 that can make the most of the bullish trend seems prudent at the moment. We have, thus, selected three such stocks that flaunt a Zacks Rank #1 (Strong Buy) and a Growth Score of A. You can see the complete list of today’s Zacks #1 Rank stocks here.
Best Buy Co., Inc. (BBY - Free Report) is a multinational specialty retailer of consumer electronics, home office products, entertainment software, communication, food preparation, wellness, heath, security, appliances and related services. The Zacks Consensus Estimate for its current-year earnings has climbed 17.3% over the past 60 days. The company’s expected earnings growth rate for the current year is 26.2%.
The Gap, Inc. (GPS - Free Report) is a premier international specialty retailer offering diverse clothing, accessories, and personal care products. The Zacks Consensus Estimate for its current-year earnings has climbed 24.2% over the past 60 days. The company’s expected earnings growth rate for the current year is 204.7%.
Tesla, Inc. (TSLA - Free Report) has evolved into a dynamic technology innovator. It has transformed the EV market how Amazon changed the retail landscape and Netflix revolutionized entertainment. The Zacks Consensus Estimate for its current-year earnings has advanced 5.1% over the past 60 days. The company’s expected earnings growth rate for the current year is 77.6%.