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The Zacks Analyst Blog Highlights: The Home Depot Inc., Emerson Electric Co., salesforce.com inc., Lowe's Companies Inc. and Marvell Technology Inc.
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For Immediate Release
Chicago, IL – January 4, 2022 – 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: The Home Depot Inc. (HD - Free Report) , Emerson Electric Co. (EMR - Free Report) , salesforce.com inc. (CRM - Free Report) , Lowe's Companies Inc.(LOW - Free Report) and Marvell Technology Inc. (MRVL - Free Report) .
Here are highlights from Monday’s Analyst Blog:
3 Reasons Why Wall Street Bulls Will Roar in 2022
Wall Street successfully defeated the pandemic with astonishing performances in 2020 and 2021. Despite this achievement, a section of market participants is concerned about 2022 due to soaring inflation, the possibility of the Fed hiking interest rate and the resurgence of various coronavirus variants. Stretched valuation of U.S. stocks is another headwind.
Nevertheless, we have identified three reasons that may help to continue Wall Street’s rally in 2022. Consequently, it will be prudent to invest in U.S. corporate giants with a favorable Zacks Rank to tap the market rally. Here are five of them — The Home Depot Inc., Emerson Electric Co., salesforce.com inc., Lowe's Companies Inc. and Marvell Technology Inc.
Omicron Likely to Bring the End of Pandemic
Global financial markets have been suffering from severe volatility since Black Friday of 2021, following the emergence of the new coronavirus variant — Omicron — in South Africa. However, as the days progressed, it has become clearer to medical scientists and doctors that Omicron is much less severe than the previous coronavirus variants like Alpha, Delta and Delta+.
By the end of 2021, most countries reported that Omicron is quickly replacing Delta as the dominant coronavirus variant meaning both hospitalization and casualties will reduce to a great extent. Several major pharmaceutical and biotech firms have stated that the pandemic will gradually reduce to an endemic like flu virus by 2023.
Moreover, several new and modified vaccines are now quickly available to protect from the new coronavirus variant. The FDA authorization of the coronavirus treatment pill is an exemplary medical development. Medical science was not this advanced even just two years ago.
Robust U.S. Economy to Drive Stock Markets
In 2022, the largest driver of the U.S. stock markets will be the nation’s strong economic fundamentals. We expect the U.S. economy to become fully operational as the pandemic is expected to reach its peak this winter. Several major investment bankers and money managers have already started removing pandemic-related adjustments from their financial models.
A section of investors is concerned that soaring inflation, termination of monetary stimulus and possible rate hikes will be headwinds in 2022. However, a good thing for higher inflation is that consumer demand, the largest driver of the GDP, remained rock solid. Both consumer confidence and consumer sentiment index for December clearly showed the strong faith of Americans in the country’s economy.
The U.S. economy will get more upside from the government’s infrastructure spending. On Nov 15, President Joe Biden signed a bipartisan infrastructure bill of $550 billion in addition to the previously approved funds of $450 billion for five years. Total spending may go up to $1.2 trillion if the plan is extended to eight years.
The infrastructure development project will be a major catalyst for the U.S. stock markets in 2022. Various segments of the economy such as basic materials, industrials, utilities and telecommunications will benefit immensely with more job creation for the economy.
Moreover, the White House has put pressure on Congress to quickly pass legislation providing $52 billion to help computer chip manufacturers and ease the shortage of the components vital to many industries.
Globally U.S. Stock Markets Are the Best
The U.S. stock markets are the best destination for investors. During the post-recession era, overall returns of U.S. stocks were nearly four times higher than the rest of the world. After successfully recovering from the great recession, Wall Street recovered overwhelmingly from the trade-related assault of 2018.
But the real surprise came in pandemic-affected 2020 and 2021. The major stock indexes — the Dow, the S&P 500 and the Nasdaq Composite — rallied 7.3%, 16.3% and 43.6%, respectively, in 2020 and 18.7%, 26.9% and 21.4%, respectively, in 2021. In 2021, the market’s benchmark – the S&P 500 Index – recorded 70 all-time highs, second only to 1995 when the broad-market index posted 77 all-time highs.
The gigantic size of the U.S. economy has given it a clear upper hand over European and emerging markets. Furthermore, technological innovation and superiority have always been strong pillars of U.S. economic strength.
How to Pick the Right Stocks
At this stage, several stocks look attractive for future growth. However, selecting three criteria will make the task easy. First, select U.S. corporate bigwigs (market capital > $50 billion) which have a well-established business model and globally acclaimed brand recognition.
Second, look for stocks that have strong growth potential for 2022 and have seen positive earnings estimate revisions in the past 60 days. Third, pick stocks that sport a Zacks Rank #1 (Strong Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.
The Home Depot, Emerson Electric, salesforce.com, Lowe's Companies and Marvell Technology are the five stocks that fulfill these criteria.
Zacks Top 10 Stocks for 2022
In addition to the investment ideas discussed above, would you like to know about our 10 top picks for the entirety of 2022?
From inception in 2012 through November, theZacks Top 10 Stocks gained an impressive +962.5% versus the S&P 500’s +329.4%. Now our Director of Research is combing through 4,000 companies covered by the Zacks Rank to handpick the best 10 tickers to buy and hold. Don’t miss your chance to get in on these stocks when they’re released on January 3.
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/performancefor information about the performance numbers displayed in this press release.
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The Zacks Analyst Blog Highlights: The Home Depot Inc., Emerson Electric Co., salesforce.com inc., Lowe's Companies Inc. and Marvell Technology Inc.
For Immediate Release
Chicago, IL – January 4, 2022 – 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: The Home Depot Inc. (HD - Free Report) , Emerson Electric Co. (EMR - Free Report) , salesforce.com inc. (CRM - Free Report) , Lowe's Companies Inc.(LOW - Free Report) and Marvell Technology Inc. (MRVL - Free Report) .
Here are highlights from Monday’s Analyst Blog:
3 Reasons Why Wall Street Bulls Will Roar in 2022
Wall Street successfully defeated the pandemic with astonishing performances in 2020 and 2021. Despite this achievement, a section of market participants is concerned about 2022 due to soaring inflation, the possibility of the Fed hiking interest rate and the resurgence of various coronavirus variants. Stretched valuation of U.S. stocks is another headwind.
Nevertheless, we have identified three reasons that may help to continue Wall Street’s rally in 2022. Consequently, it will be prudent to invest in U.S. corporate giants with a favorable Zacks Rank to tap the market rally. Here are five of them — The Home Depot Inc., Emerson Electric Co., salesforce.com inc., Lowe's Companies Inc. and Marvell Technology Inc.
Omicron Likely to Bring the End of Pandemic
Global financial markets have been suffering from severe volatility since Black Friday of 2021, following the emergence of the new coronavirus variant — Omicron — in South Africa. However, as the days progressed, it has become clearer to medical scientists and doctors that Omicron is much less severe than the previous coronavirus variants like Alpha, Delta and Delta+.
By the end of 2021, most countries reported that Omicron is quickly replacing Delta as the dominant coronavirus variant meaning both hospitalization and casualties will reduce to a great extent. Several major pharmaceutical and biotech firms have stated that the pandemic will gradually reduce to an endemic like flu virus by 2023.
Moreover, several new and modified vaccines are now quickly available to protect from the new coronavirus variant. The FDA authorization of the coronavirus treatment pill is an exemplary medical development. Medical science was not this advanced even just two years ago.
Robust U.S. Economy to Drive Stock Markets
In 2022, the largest driver of the U.S. stock markets will be the nation’s strong economic fundamentals. We expect the U.S. economy to become fully operational as the pandemic is expected to reach its peak this winter. Several major investment bankers and money managers have already started removing pandemic-related adjustments from their financial models.
A section of investors is concerned that soaring inflation, termination of monetary stimulus and possible rate hikes will be headwinds in 2022. However, a good thing for higher inflation is that consumer demand, the largest driver of the GDP, remained rock solid. Both consumer confidence and consumer sentiment index for December clearly showed the strong faith of Americans in the country’s economy.
The U.S. economy will get more upside from the government’s infrastructure spending. On Nov 15, President Joe Biden signed a bipartisan infrastructure bill of $550 billion in addition to the previously approved funds of $450 billion for five years. Total spending may go up to $1.2 trillion if the plan is extended to eight years.
The infrastructure development project will be a major catalyst for the U.S. stock markets in 2022. Various segments of the economy such as basic materials, industrials, utilities and telecommunications will benefit immensely with more job creation for the economy.
Moreover, the White House has put pressure on Congress to quickly pass legislation providing $52 billion to help computer chip manufacturers and ease the shortage of the components vital to many industries.
Globally U.S. Stock Markets Are the Best
The U.S. stock markets are the best destination for investors. During the post-recession era, overall returns of U.S. stocks were nearly four times higher than the rest of the world. After successfully recovering from the great recession, Wall Street recovered overwhelmingly from the trade-related assault of 2018.
But the real surprise came in pandemic-affected 2020 and 2021. The major stock indexes — the Dow, the S&P 500 and the Nasdaq Composite — rallied 7.3%, 16.3% and 43.6%, respectively, in 2020 and 18.7%, 26.9% and 21.4%, respectively, in 2021. In 2021, the market’s benchmark – the S&P 500 Index – recorded 70 all-time highs, second only to 1995 when the broad-market index posted 77 all-time highs.
The gigantic size of the U.S. economy has given it a clear upper hand over European and emerging markets. Furthermore, technological innovation and superiority have always been strong pillars of U.S. economic strength.
How to Pick the Right Stocks
At this stage, several stocks look attractive for future growth. However, selecting three criteria will make the task easy. First, select U.S. corporate bigwigs (market capital > $50 billion) which have a well-established business model and globally acclaimed brand recognition.
Second, look for stocks that have strong growth potential for 2022 and have seen positive earnings estimate revisions in the past 60 days. Third, pick stocks that sport a Zacks Rank #1 (Strong Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.
The Home Depot, Emerson Electric, salesforce.com, Lowe's Companies and Marvell Technology are the five stocks that fulfill these criteria.
Zacks Top 10 Stocks for 2022
In addition to the investment ideas discussed above, would you like to know about our 10 top picks for the entirety of 2022?
From inception in 2012 through November, theZacks Top 10 Stocks gained an impressive +962.5% versus the S&P 500’s +329.4%. Now our Director of Research is combing through 4,000 companies covered by the Zacks Rank to handpick the best 10 tickers to buy and hold. Don’t miss your chance to get in on these stocks when they’re released on January 3.
Be First To New 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/performancefor information about the performance numbers displayed in this press release.