For Immediate Release
Chicago, IL – May 5, 2023 – 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: Coty (
COTY Quick Quote COTY - Free Report) , Church & Dwight Co. ( CHD Quick Quote CHD - Free Report) , Hershey ( HSY Quick Quote HSY - Free Report) and Portland General Electric ( POR Quick Quote POR - Free Report) . Here are highlights from Thursday’s Analyst Blog: 4 Top Recession-Proof Stocks That Are Worth a Buy Right Away
Federal Reserve Chair Jerome Powell acknowledged in the recently concluded two-day policy meeting that the current banking turmoil in the United States has led to tighter credit conditions, and in all likelihood, may impact economic activities.
One of the most prominent lenders for tech start-ups, the Silicon Valley Bank’s fate was doomed following run-on deposits, which in due course curtailed its ability to raise fresh capital. The bank collapsed this month, leading to a contagion effect and the consequent shutting down of other prominent banks, such as Signature Bank and First Republic Bank.
While the banking crisis heightened worries about economic growth, the Fed’s tenth interest rate hike in a row in its latest meeting may further dent consumer outlays and undeniably increase the cost of borrowing. The Fed raised interest rates by another 25 basis points, taking the Fed’s funds rate to a range of 5-5.25%. This is, by the way, the highest target range since August 2007.
In reality, economic growth in the United States has already started to slow down. In the first three months of this year, economic growth weakened due to the Fed’s aggressive monetary policy and stubbornly high inflation. A decline in inventory investment on an expectation of weaker demand this year, in particular, slowed down economic growth.
According to the Commerce Department, gross domestic product (GDP) increased at an annualized pace of 1.1% in the first quarter, less than economists’ expectations of growth of 2%. Let us not forget, GDP had climbed 2.6% in the fourth quarter of last year.
What’s more, the Conference Board’s Leading Economic Index (LEI), known as the index of future economic activity, dropped to 108.4 in March from February’s revised reading of 109.7, its 12th successive monthly drop and also the lowest reading since November 2020.
Furthermore, a decline in orders of durable goods, a reduction in construction activities, and a freight recession of late all signify that the United States is worryingly close to a recession, something that doesn’t bode well for the stock market.
However, some stocks tend to do well amid economic downturns. These stocks are known for being recession-proof and belong to the consumer staples and utilities sectors. This is because the demand for personal care products, food, electricity, gas, and water remains unaltered under any economic situation since they all are essentials.
We have, thus, selected four stocks from the aforesaid areas that flaunt a Zacks Rank #1 (Strong Buy) or 2 (Buy). The search was also narrowed down with a
VGM Score of A or B. Here V stands for Value, G for Growth, and M for Momentum; the score is a weighted combination of these three metrics. Such a score allows you to eliminate the negative aspects of stocks and select winners. You can see . the complete list of today’s Zacks #1 Rank stocks here Coty manufactures, markets and distributes beauty products worldwide. The company, currently, has a Zacks Rank #1 and a VGM Score of B.
The Zacks Consensus Estimate for its next-quarter earnings has moved up 33.3% over the past 60 days. COTY’s expected earnings growth rate for the current year is 32.1%.
Church & Dwight Co. develops, manufactures, and markets a broad range of household, personal care, and specialty products. The company, currently, has a Zacks Rank #2 and a VGM Score of B.
The Zacks Consensus Estimate for its current-year earnings has moved up 0.6% over the past 60 days. CHD’s expected earnings growth rate for the current year is 4.4%.
Hershey manufactures pantry items like baking ingredients, toppings, and beverages; gum and mint refreshment products; snack bites and mixes, as well as spreads. The company, currently, has a Zacks Rank #2 and a VGM Score of B.
The Zacks Consensus Estimate for its current-year earnings has moved up 0.7% over the past 60 days. HSY’s expected earnings growth rate for the current year is 11%.
Portland General Electric is a vertically integrated electric utility that serves residential, commercial, and industrial customers in Oregon. The company, currently, has a Zacks Rank #2 and a VGM Score of B.
The Zacks Consensus Estimate for its current-year earnings has moved up 3.1% over the past 60 days. POR’s expected earnings growth rate for next year is 13.7%.
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. 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.