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The Zacks Analyst Blog Highlights IJJ, XLY, XLF, IWN and SMH
Read MoreHide Full Article
For Immediate Release
Chicago, IL – December 27, 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. ETFs recently featured in the blog include: iShares S&P Mid-Cap 400 Value ETF (IJJ - Free Report) , Consumer Discretionary Select Sector SPDR ETF (XLY - Free Report) , Financial Select Sector SPDR ETF (XLF - Free Report) , iShares Russell 2000 Value ETF (IWN - Free Report) and VanEck Semiconductor ETF (SMH - Free Report) .
Here are highlights from Tuesday’s Analyst Blog:
5 Top-Ranked ETFs to Tap Amid Ongoing Santa Rally
We are currently amidst the famous Santa Claus rally. Notably, the Santa Claus Rally refers to the jump in stock prices in the week between Christmas and New Year's Day. There are several factors behind this surge, including "tax considerations, happiness around Wall Street, people investing their Christmas bonuses and the fact that the pessimists are usually on vacation this week," as per Investopedia.
Will Santa Propel Wall Street to New Heights This Year?
The U.S. stock market is approaching record highs as 2023 comes to a close. Recent inflation data indicates progress toward the Fed's 2% target, with the core Personal Consumption Expenditures Price Index showing a 3.2% increase year-over-year in November.
However, when analyzed on a six-month annualized basis, core PCE inflation was at 1.9% in November, suggesting that the Fed is close to its goal, which may lead to interest rate cuts. Recession indicators are minimal, and interest rates have decreased from their recent highs. The Dow Jones Industrial Average and S&P 500 are on the verge of reaching record levels, and the Nasdaq Composite has seen a substantial increase of over 40% this year.
Some Fed officials have attempted to counter expectations of rate cuts, but the relatively low inflation numbers have fueled expectations that rates will be cut significantly in the coming year. This expectation has supported the stock market's rally in 2023.
While AI-related hype dominated the beginning of the year, the latter half of 2023 has been characterized by concerns about interest rates. An autumn decline in the stock market coincided with a surge in Treasury yields, but recent data and Fed forecasts have alleviated many of these concerns, per Yahoo Finance.
Looking ahead to 2024, forecasts have already been adjusted to reflect expectations of easing inflation, continued economic growth, and rate cuts by the Fed. A "soft landing" scenario has become the consensus, driving the market higher as the year concludes. All these factors should materialize a solid Santa rally this year.
ETFs to Tap
Below we highlight a few ETFs that have a Zacks Rank #1 (Strong Buy), Price as a % of 52-week High-Low range is greater than 90% (meaning they are hovering around an one-year high), P/E less than 26.57X (which is the current P/E of S&P 500) and a beta greater than one.
iShares S&P Mid-Cap 400 Value ETF
The underlying S&P MidCap 400 Value Index measures the performance of the mid-capitalization value sector of the U.S. equity market. It is a subset of the S&P MidCap 400 and consists of those stocks in the S&P MidCap 400 exhibiting the strongest value characteristics.
Price as a % of 52-week High-Low range: 91.19%
P/E: 12.23X
Beta: 1.18X
Consumer Discretionary Select Sector SPDR ETF
The underlying Consumer Discretionary Select Sector Index seeks to provide an effective representation of the consumer discretionary sector of the S&P 500 Index..
Price as a % of 52-week High-Low range: 96.50%
P/E: 24.29X
Beta: 1.19X
Financial Select Sector SPDR ETF
The underlying Financial Select Sector Index seeks to provide an effective representation of the financial sector of the S&P 500 Index.
Price as a % of 52-week High-Low range: 96.51%
P/E: 14.40X
Beta: 1.08X
iShares Russell 2000 Value ETF
The underlying Russell 2000 Value Index measures the performance of the small-capitalization value sector of the U.S. equity market.
Price as a % of 52-week High-Low range: 97.04%
P/E: 7.87X
Beta: 1.16X
VanEck Semiconductor ETF
The underlying MVIS US Listed Semiconductor 25 Index tracks the overall performance of companies involved in semiconductor production and equipment.
Price as a % of 52-week High-Low range: 98.94%
P/E: 25.87X
Beta: 1.33X
(Disclaimer: This article has been written with the assistance of Generative AI. However, the author has reviewed, revised, supplemented, and rewritten parts of this content to ensure its originality and the precision of the incorporated information.)
Want key ETF info delivered straight to your inbox?
Zacks' free Fund Newsletter will brief you on top news and analysis, as well as top-performing ETFs, each week.
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 IJJ, XLY, XLF, IWN and SMH
For Immediate Release
Chicago, IL – December 27, 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. ETFs recently featured in the blog include: iShares S&P Mid-Cap 400 Value ETF (IJJ - Free Report) , Consumer Discretionary Select Sector SPDR ETF (XLY - Free Report) , Financial Select Sector SPDR ETF (XLF - Free Report) , iShares Russell 2000 Value ETF (IWN - Free Report) and VanEck Semiconductor ETF (SMH - Free Report) .
Here are highlights from Tuesday’s Analyst Blog:
5 Top-Ranked ETFs to Tap Amid Ongoing Santa Rally
We are currently amidst the famous Santa Claus rally. Notably, the Santa Claus Rally refers to the jump in stock prices in the week between Christmas and New Year's Day. There are several factors behind this surge, including "tax considerations, happiness around Wall Street, people investing their Christmas bonuses and the fact that the pessimists are usually on vacation this week," as per Investopedia.
Will Santa Propel Wall Street to New Heights This Year?
The U.S. stock market is approaching record highs as 2023 comes to a close. Recent inflation data indicates progress toward the Fed's 2% target, with the core Personal Consumption Expenditures Price Index showing a 3.2% increase year-over-year in November.
However, when analyzed on a six-month annualized basis, core PCE inflation was at 1.9% in November, suggesting that the Fed is close to its goal, which may lead to interest rate cuts. Recession indicators are minimal, and interest rates have decreased from their recent highs. The Dow Jones Industrial Average and S&P 500 are on the verge of reaching record levels, and the Nasdaq Composite has seen a substantial increase of over 40% this year.
Some Fed officials have attempted to counter expectations of rate cuts, but the relatively low inflation numbers have fueled expectations that rates will be cut significantly in the coming year. This expectation has supported the stock market's rally in 2023.
While AI-related hype dominated the beginning of the year, the latter half of 2023 has been characterized by concerns about interest rates. An autumn decline in the stock market coincided with a surge in Treasury yields, but recent data and Fed forecasts have alleviated many of these concerns, per Yahoo Finance.
Looking ahead to 2024, forecasts have already been adjusted to reflect expectations of easing inflation, continued economic growth, and rate cuts by the Fed. A "soft landing" scenario has become the consensus, driving the market higher as the year concludes. All these factors should materialize a solid Santa rally this year.
ETFs to Tap
Below we highlight a few ETFs that have a Zacks Rank #1 (Strong Buy), Price as a % of 52-week High-Low range is greater than 90% (meaning they are hovering around an one-year high), P/E less than 26.57X (which is the current P/E of S&P 500) and a beta greater than one.
iShares S&P Mid-Cap 400 Value ETF
The underlying S&P MidCap 400 Value Index measures the performance of the mid-capitalization value sector of the U.S. equity market. It is a subset of the S&P MidCap 400 and consists of those stocks in the S&P MidCap 400 exhibiting the strongest value characteristics.
Price as a % of 52-week High-Low range: 91.19%
P/E: 12.23X
Beta: 1.18X
Consumer Discretionary Select Sector SPDR ETF
The underlying Consumer Discretionary Select Sector Index seeks to provide an effective representation of the consumer discretionary sector of the S&P 500 Index..
Price as a % of 52-week High-Low range: 96.50%
P/E: 24.29X
Beta: 1.19X
Financial Select Sector SPDR ETF
The underlying Financial Select Sector Index seeks to provide an effective representation of the financial sector of the S&P 500 Index.
Price as a % of 52-week High-Low range: 96.51%
P/E: 14.40X
Beta: 1.08X
iShares Russell 2000 Value ETF
The underlying Russell 2000 Value Index measures the performance of the small-capitalization value sector of the U.S. equity market.
Price as a % of 52-week High-Low range: 97.04%
P/E: 7.87X
Beta: 1.16X
VanEck Semiconductor ETF
The underlying MVIS US Listed Semiconductor 25 Index tracks the overall performance of companies involved in semiconductor production and equipment.
Price as a % of 52-week High-Low range: 98.94%
P/E: 25.87X
Beta: 1.33X
(Disclaimer: This article has been written with the assistance of Generative AI. However, the author has reviewed, revised, supplemented, and rewritten parts of this content to ensure its originality and the precision of the incorporated information.)
Want key ETF info delivered straight to your inbox?
Zacks' free Fund Newsletter will brief you on top news and analysis, as well as top-performing ETFs, each week.
Get it free >>
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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.