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The Zacks Analyst Blog Highlights NVIDIA, Centerspace, Magellan Midstream Partners, Invitation Home, Trinity Capital and Runway Growth Finance
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For Immediate Release
Chicago, IL – September 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: NVIDIA Corporation's (NVDA - Free Report) , Centerspace (CSR - Free Report) , Magellan Midstream Partners , Invitation Home Inc. (INVH - Free Report) , Trinity Capital Inc. (TRIN - Free Report) and Runway Growth Finance Corp. (RWAY - Free Report) .
Here are highlights from Friday’s Analyst Blog:
After a Sour August, Expect a Weak September: 5 Safe Picks
U.S. stocks have scaled upward for most of this year after last year's selloff, confronting any hazards along the way. However, stocks were subject to bouts of volatility in August, with the major bourses ending in the red.
The comprehensive S&P 500 Index declined 1.8% in August, its first monthly slide since February, per FactSet data. Similarly, the 30-stock Dow slipped 2.4% in August, and the tech-laden Nasdaq dropped nearly 2.2%, its biggest monthly loss so far this year, added FactSet data.
The artificial intelligence-driven tech rally that primarily boosted the broader stock market for quite some time just fizzled out in August. Recently, one of the pioneers in artificial intelligence, NVIDIA Corporation's blowout quarterly earnings may have lifted investors' sentiment, but the exuberance barely lasted after the Federal Reserve Chair Jerome Powell's hawkish comments weighed on stocks (read more: Nvidia & 2 Other AI Stocks You'll Regret Not Buying Soon).
At the conference in Jackson Hole, Powell confirmed that even though inflationary pressure has eased, it's not yet at an acceptable level. The central bank is willing to take any steps to bring down the inflation rate to its 2% target.
Meanwhile, the core personal consumption expenditure price index, the central bank's favored gauge of inflation, rose 4.2% annually in July, up from the 4.1% increase in June. Thus, price pressures persist and may easily compel the Fed to further hike interest rates.
Per the CME's FedWatch Tool, even though only 11% of market participants expect interest rates to increase by a 25-basis-point in September, 42% see a similar rate hike by the end of November. Now, a rate hike doesn't bode well for stocks as it impacts economic growth by curtailing consumer outlays and increasing borrowing costs.
A dip in consumer confidence, by the way, has already raised fears about an imminent economic slump. The rise in gasoline prices has dented consumers' sentiment, with the consumer confidence index declining to 106.1 in August from 114 in July (read more: Dip in Consumer Confidence Sparks Recession Fears: 3 Gainers).
To top it off, September is traditionally the worst month for the stock market. Per chief investment strategist at CFRA Research, Sam Stovall, the S&P 500 Index has delivered an average monthly negative return of 0.73% in September, since 1945. Also, the Nasdaq has recorded an average monthly negative return of 0.86% in September, since 1971, per CFRA Research.
Thus, with things not looking up for the stock market in September after a moribund August, it's prudent for astute investors to invest in safe stocks such as Centerspace, Magellan Midstream Partners, Invitation Home Inc., Trinity Capital Inc. and Runway Growth Finance Corp. for a steady income.
These stocks are dividend payers, which means they have a solid business model that helps them stay afloat amid market volatility. These stocks have a low beta (ranges from 0 to 1), making them unfazed by market gyrations. They have a Zacks Rank #1 (Strong Buy) or 2 (Buy). You can see the complete list of today's Zacks #1 Rank stocks here.
Centerspace is a real estate development company. The company has a beta of 0.93 and a Zacks Rank #1.
CSR has a dividend yield of 4.5%. The Zacks Consensus Estimate for its current-year earnings has moved up 8.1% over the past 60 days. The company's expected earnings growth rate for the current year is nearly 5%.
Magellan MidstreamPartners is a master limited partnership that owns and operates a diversified portfolio of energy infrastructure assets. The company has a beta of 0.9 and a Zacks Rank #2.
MMP has a dividend yield of 6.3%. The Zacks Consensus Estimate for its current-year earnings has moved up 1.6% over the past 60 days. The company's expected earnings growth rate for the current year is 12.1%.
Invitation Home provides real estate services. The company has a beta of 0.9 and a Zacks Rank #2.
INVH has a dividend yield of 3%. The Zacks Consensus Estimate for its current-year earnings has moved up 0.6% over the past 60 days. The company's expected earnings growth rate for the current year is 7.2%.
Trinity Capital is an internally managed business development company. The company has a beta of 0.62 and a Zacks Rank #2.
TRIN has a dividend yield of 13.3%. The Zacks Consensus Estimate for its current-year earnings has moved up 1.9% over the past 60 days. The company's expected earnings growth rate for the current year is 2.3%.
Runway Growth Finance is an externally managed business development company. The company has a beta of 0.76 and a Zacks Rank #2.
RWAY has a dividend yield of 12.3%. The Zacks Consensus Estimate for its current-year earnings has moved up 3.9% over the past 60 days. The company's expected earnings growth rate for the current year is 29.5%.
Shares of Centerspace, Magellan Midstream Partners, Invitation Home, Trinity Capital and Runway Growth Finance have gained 10.3%, 32.3%, 15%, 34% and 12.5%, respectively, in the year-to-date period.
Why Haven't You Looked at Zacks' Top Stocks?
Since 2000, our top stock-picking strategies have blown away the S&P's +6.2 average gain per year. Amazingly, they soared with average gains of +46.4%, +49.5% and +55.2% per year. Today you can access their live picks without cost or obligation.
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 NVIDIA, Centerspace, Magellan Midstream Partners, Invitation Home, Trinity Capital and Runway Growth Finance
For Immediate Release
Chicago, IL – September 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: NVIDIA Corporation's (NVDA - Free Report) , Centerspace (CSR - Free Report) , Magellan Midstream Partners , Invitation Home Inc. (INVH - Free Report) , Trinity Capital Inc. (TRIN - Free Report) and Runway Growth Finance Corp. (RWAY - Free Report) .
Here are highlights from Friday’s Analyst Blog:
After a Sour August, Expect a Weak September: 5 Safe Picks
U.S. stocks have scaled upward for most of this year after last year's selloff, confronting any hazards along the way. However, stocks were subject to bouts of volatility in August, with the major bourses ending in the red.
The comprehensive S&P 500 Index declined 1.8% in August, its first monthly slide since February, per FactSet data. Similarly, the 30-stock Dow slipped 2.4% in August, and the tech-laden Nasdaq dropped nearly 2.2%, its biggest monthly loss so far this year, added FactSet data.
The artificial intelligence-driven tech rally that primarily boosted the broader stock market for quite some time just fizzled out in August. Recently, one of the pioneers in artificial intelligence, NVIDIA Corporation's blowout quarterly earnings may have lifted investors' sentiment, but the exuberance barely lasted after the Federal Reserve Chair Jerome Powell's hawkish comments weighed on stocks (read more: Nvidia & 2 Other AI Stocks You'll Regret Not Buying Soon).
At the conference in Jackson Hole, Powell confirmed that even though inflationary pressure has eased, it's not yet at an acceptable level. The central bank is willing to take any steps to bring down the inflation rate to its 2% target.
Meanwhile, the core personal consumption expenditure price index, the central bank's favored gauge of inflation, rose 4.2% annually in July, up from the 4.1% increase in June. Thus, price pressures persist and may easily compel the Fed to further hike interest rates.
Per the CME's FedWatch Tool, even though only 11% of market participants expect interest rates to increase by a 25-basis-point in September, 42% see a similar rate hike by the end of November. Now, a rate hike doesn't bode well for stocks as it impacts economic growth by curtailing consumer outlays and increasing borrowing costs.
A dip in consumer confidence, by the way, has already raised fears about an imminent economic slump. The rise in gasoline prices has dented consumers' sentiment, with the consumer confidence index declining to 106.1 in August from 114 in July (read more: Dip in Consumer Confidence Sparks Recession Fears: 3 Gainers).
To top it off, September is traditionally the worst month for the stock market. Per chief investment strategist at CFRA Research, Sam Stovall, the S&P 500 Index has delivered an average monthly negative return of 0.73% in September, since 1945. Also, the Nasdaq has recorded an average monthly negative return of 0.86% in September, since 1971, per CFRA Research.
Thus, with things not looking up for the stock market in September after a moribund August, it's prudent for astute investors to invest in safe stocks such as Centerspace, Magellan Midstream Partners, Invitation Home Inc., Trinity Capital Inc. and Runway Growth Finance Corp. for a steady income.
These stocks are dividend payers, which means they have a solid business model that helps them stay afloat amid market volatility. These stocks have a low beta (ranges from 0 to 1), making them unfazed by market gyrations. They have a Zacks Rank #1 (Strong Buy) or 2 (Buy). You can see the complete list of today's Zacks #1 Rank stocks here.
Centerspace is a real estate development company. The company has a beta of 0.93 and a Zacks Rank #1.
CSR has a dividend yield of 4.5%. The Zacks Consensus Estimate for its current-year earnings has moved up 8.1% over the past 60 days. The company's expected earnings growth rate for the current year is nearly 5%.
Magellan MidstreamPartners is a master limited partnership that owns and operates a diversified portfolio of energy infrastructure assets. The company has a beta of 0.9 and a Zacks Rank #2.
MMP has a dividend yield of 6.3%. The Zacks Consensus Estimate for its current-year earnings has moved up 1.6% over the past 60 days. The company's expected earnings growth rate for the current year is 12.1%.
Invitation Home provides real estate services. The company has a beta of 0.9 and a Zacks Rank #2.
INVH has a dividend yield of 3%. The Zacks Consensus Estimate for its current-year earnings has moved up 0.6% over the past 60 days. The company's expected earnings growth rate for the current year is 7.2%.
Trinity Capital is an internally managed business development company. The company has a beta of 0.62 and a Zacks Rank #2.
TRIN has a dividend yield of 13.3%. The Zacks Consensus Estimate for its current-year earnings has moved up 1.9% over the past 60 days. The company's expected earnings growth rate for the current year is 2.3%.
Runway Growth Finance is an externally managed business development company. The company has a beta of 0.76 and a Zacks Rank #2.
RWAY has a dividend yield of 12.3%. The Zacks Consensus Estimate for its current-year earnings has moved up 3.9% over the past 60 days. The company's expected earnings growth rate for the current year is 29.5%.
Shares of Centerspace, Magellan Midstream Partners, Invitation Home, Trinity Capital and Runway Growth Finance have gained 10.3%, 32.3%, 15%, 34% and 12.5%, respectively, in the year-to-date period.
Why Haven't You Looked at Zacks' Top Stocks?
Since 2000, our top stock-picking strategies have blown away the S&P's +6.2 average gain per year. Amazingly, they soared with average gains of +46.4%, +49.5% and +55.2% per year. Today you can access their live picks without cost or obligation.
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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.