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Wall Street Books Best Week Since November: 5 Growth Picks
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The three major benchmarks opened lower on Jan 13 but, in due course, bounced back and finished the trading session in the green. The Dow, the S&P 500 and the Nasdaq notched their best weekly percentage gains in two months.
For the week, the tech-laden Nasdaq was the outperformer, surging 4.8%. The 30-stock Dow and the broader S&P 500 also advanced 2% and 2.7%, respectively, for the week. The Nasdaq and the S&P 500, too, booked their second successive positive week.
An encouraging reading on consumer sentiment in the United States lifted investors’ sentiment. The University of Michigan’s preliminary report showed that its consumer sentiment index increased to 64.6 in January from 59.7 in the prior month, its highest level since April. Moreover, the reading was more than analysts’ expectations of an increase to 60.7.
At the same time, the University of Michigan’s index that measures present economic conditions increased sharply to 68.6 this month from 59.4 in December. In reality, consumers’ assessment of economic conditions improved mostly due to easing inflation. Lest we forget, consumer sentiment had tanked for most of last year as inflation spiked to a record high and weighed on real income, impacting household’s living standards.
Nonetheless, consumer-price growth eased in December for the sixth straight month. The consumer price index (CPI) advanced 6.5% on a year-over-year basis last month, less than November’s annual increase of 7.1%, and well below June’s peak of 9.1%, per the U.S. Bureau of Labor Statistics.
Now, with inflation easing, market participants assume that the Federal Reserve will cut interest rates this year. The central bank, at present, is widely expected to hike interest rates by only a quarter of a percentage point in the February meeting. But that’s down from a 50 basis points increase in December, which followed a 75-basis points rate hike four times in a row.
Again, a less aggressive Fed bodes well for the stock market. This is because rate hikes last year had impacted market returns since they increased borrowing costs and curbed consumer outlays. Thus, with consumer sentiments improving amid falling inflation and fewer rate hike expectations, the stock market is surely poised to give better returns this year than last year.
Hence, investors should place their bets on growth stocks. We have, therefore, highlighted five stocks that carry a Zacks Rank #1 (Strong Buy) or 2 (Buy), and have a Growth Score of A or B, a combination that offers the best opportunities in the growth investing space. You can see the complete list of today’s Zacks Rank #1 stocks here.
AMN Healthcare Services (AMN - Free Report) is a travel healthcare staffing company. AMN has a Zacks Rank #2 and a Growth Score of A.
The Zacks Consensus Estimate for its current-year earnings has moved up 1.1% over the past 60 days. The company’s expected earnings growth rate for the current year is nearly 44%.
Clarivate (CLVT - Free Report) operates as an information services and analytics company. CLVT has a Zacks Rank #2 and a Growth Score of A.
The Zacks Consensus Estimate for its current-year earnings has moved up 1.3% over the past 60 days. The company’s expected earnings growth rate for the current year is 12.5%.
Core & Main (CNM - Free Report) is a specialized distributor of water, wastewater, storm drainage and fire protection products, and related services. CNM has a Zacks Rank #1 and a Growth Score of A.
The Zacks Consensus Estimate for its current-year earnings has moved up 10.8% over the past 60 days. The company’s expected earnings growth rate for the current year is 159%.
CRH (CRH - Free Report) manufactures cement, concrete products, aggregates, roofing, insulation, and other building materials. CRH has a Zacks Rank #1 and a Growth Score of B.
The Zacks Consensus Estimate for its current-year earnings has moved up 13.5% over the past 60 days. The company’s expected earnings growth rate for the current year is 19%.
Deere & Company (DE - Free Report) is the world’s largest producer of agricultural equipment, manufacturing agricultural machinery since 1837 under the iconic John Deere brand with its signature green and yellow color scheme. DE has a Zacks Rank #2 and a Growth Score of A.
The Zacks Consensus Estimate for its current-year earnings has moved up 4.8% over the past 60 days. The company’s expected earnings growth rate for the current year is 19.6%.
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Wall Street Books Best Week Since November: 5 Growth Picks
The three major benchmarks opened lower on Jan 13 but, in due course, bounced back and finished the trading session in the green. The Dow, the S&P 500 and the Nasdaq notched their best weekly percentage gains in two months.
For the week, the tech-laden Nasdaq was the outperformer, surging 4.8%. The 30-stock Dow and the broader S&P 500 also advanced 2% and 2.7%, respectively, for the week. The Nasdaq and the S&P 500, too, booked their second successive positive week.
An encouraging reading on consumer sentiment in the United States lifted investors’ sentiment. The University of Michigan’s preliminary report showed that its consumer sentiment index increased to 64.6 in January from 59.7 in the prior month, its highest level since April. Moreover, the reading was more than analysts’ expectations of an increase to 60.7.
At the same time, the University of Michigan’s index that measures present economic conditions increased sharply to 68.6 this month from 59.4 in December. In reality, consumers’ assessment of economic conditions improved mostly due to easing inflation. Lest we forget, consumer sentiment had tanked for most of last year as inflation spiked to a record high and weighed on real income, impacting household’s living standards.
Nonetheless, consumer-price growth eased in December for the sixth straight month. The consumer price index (CPI) advanced 6.5% on a year-over-year basis last month, less than November’s annual increase of 7.1%, and well below June’s peak of 9.1%, per the U.S. Bureau of Labor Statistics.
Now, with inflation easing, market participants assume that the Federal Reserve will cut interest rates this year. The central bank, at present, is widely expected to hike interest rates by only a quarter of a percentage point in the February meeting. But that’s down from a 50 basis points increase in December, which followed a 75-basis points rate hike four times in a row.
Again, a less aggressive Fed bodes well for the stock market. This is because rate hikes last year had impacted market returns since they increased borrowing costs and curbed consumer outlays. Thus, with consumer sentiments improving amid falling inflation and fewer rate hike expectations, the stock market is surely poised to give better returns this year than last year.
Hence, investors should place their bets on growth stocks. We have, therefore, highlighted five stocks that carry a Zacks Rank #1 (Strong Buy) or 2 (Buy), and have a Growth Score of A or B, a combination that offers the best opportunities in the growth investing space. You can see the complete list of today’s Zacks Rank #1 stocks here.
AMN Healthcare Services (AMN - Free Report) is a travel healthcare staffing company. AMN has a Zacks Rank #2 and a Growth Score of A.
The Zacks Consensus Estimate for its current-year earnings has moved up 1.1% over the past 60 days. The company’s expected earnings growth rate for the current year is nearly 44%.
Clarivate (CLVT - Free Report) operates as an information services and analytics company. CLVT has a Zacks Rank #2 and a Growth Score of A.
The Zacks Consensus Estimate for its current-year earnings has moved up 1.3% over the past 60 days. The company’s expected earnings growth rate for the current year is 12.5%.
Core & Main (CNM - Free Report) is a specialized distributor of water, wastewater, storm drainage and fire protection products, and related services. CNM has a Zacks Rank #1 and a Growth Score of A.
The Zacks Consensus Estimate for its current-year earnings has moved up 10.8% over the past 60 days. The company’s expected earnings growth rate for the current year is 159%.
CRH (CRH - Free Report) manufactures cement, concrete products, aggregates, roofing, insulation, and other building materials. CRH has a Zacks Rank #1 and a Growth Score of B.
The Zacks Consensus Estimate for its current-year earnings has moved up 13.5% over the past 60 days. The company’s expected earnings growth rate for the current year is 19%.
Deere & Company (DE - Free Report) is the world’s largest producer of agricultural equipment, manufacturing agricultural machinery since 1837 under the iconic John Deere brand with its signature green and yellow color scheme. DE has a Zacks Rank #2 and a Growth Score of A.
The Zacks Consensus Estimate for its current-year earnings has moved up 4.8% over the past 60 days. The company’s expected earnings growth rate for the current year is 19.6%.