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The Zacks Analyst Blog Highlights Atmos Energy, CenterPoint Energy, NiSource, Lifeway Foods and MGP Ingredients
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For Immediate Release
Chicago, IL – January 8, 2024 – 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: Atmos Energy (ATO - Free Report) , CenterPoint Energy (CNP - Free Report) , NiSource (NI - Free Report) , Lifeway Foods (LWAY - Free Report) and MGP Ingredients (MGPI - Free Report) .
Here are highlights from Friday’s Analyst Blog:
5 Top Defensive Stocks to Counter Market Upheavals in 2024
Regrettably, the Santa Claus rally didn't happen this time on Wall Street. The Santa Claus rally period includes the last five trading sessions of a calendar year and the first two trading sessions of the new year. During this stretch, since 1950, the broader S&P 500 Index has registered an average gain of 1.3% and has ended 78% of the time in the green in the past 75 years, according to the Dow Jones Market Data.
However, this time, the Santa Claus rally from Dec 22 to Jan 3 saw the average return of the S&P 500 declining 0.9%.It's the worst Santa Claus rally period since 2015-2016, per the Dow Jones Market Data.The tech-laden Nasdaq also fell 2.5% over the same period as investors seem to have lost interest in last year's mega-cap tech winners. The Nasdaq also closed lower on Jan 4 and declined for the fifth successive trading session, its longest losing streak since October 2022.
This is not at all encouraging for the stock market. Historically, a no-Santa Claus rally generally preceded a bear market, when stocks tend to hit significantly low prices. To top it off, vagueness related to the Federal Reserve's intention to trim interest rates has somehow dampened investors' sentiment as well. The recent minutes from the Federal Open Market Committee have shown that officials were not sure when to cut interest rates and have kept the option to hike rates if inflation spikes again.
Needless to say, interest rate hikes raise borrowing costs, hamper consumer spending, and disrupt economic growth vis-à-vis the stock market's upward trajectory. Talking about the economy, the Conference Board has already projected a mild recession during the first half of 2024. After all, the Leading Economic Index (LEI) dropped for the 20th consecutive month in November, its longest declining streak since the Great Recession. The LEI tends to indicate a possible economic downturn (read more: 3 Top Dividend Aristocrats to Buy Ahead of 2024).
Further, if geopolitical tensions again rise in the presidential election year, 2024 will be tumultuous for the U.S. economy. The global economy isn't out of the woods, and that could easily derail growth in the United States. China's economy is already in the doldrums, given the mayhem in its real-estate sector and ever-increasing local government debt.
Hence, with Wall Street plagued with a slew of uncertainties this year, it's prudent for investors to place bets on defensive players like Atmos Energy, CenterPoint Energy, NiSource, Lifeway Foods and MGP Ingredients for a steady stream of income.
These companies are non-cyclical, or in other words, the demand for their products and services is not impacted by the disturbances in the stock market. They belong to the utilities and consumer staples sectors. After all, it's impossible to live without water, electricity, food, and gas, to name a few.
The defensive stocks boast a Zacks Rank #1 (Strong Buy) or 2 (Buy) and a VGM Score of A or B. Here, V stands for Value, G for Growth and M for Momentum and 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 Rank #1 stocks here.
Atmos Energy is engaged in regulated natural gas distribution and storage business. ATO currently has a Zacks Rank #2 and a VGM Score of B. The Zacks Consensus Estimate for its current-year earnings has increased 1.2% over the past 60 days. The company's expected earnings growth for the current year is 7.2%.
CenterPoint Energy provides electric transmission & distribution, natural gas distribution and competitive natural gas sales and services operations. CNP currently has a Zacks Rank #2 and a VGM Score of B. The Zacks Consensus Estimate for its current-year earnings has increased 0.7% over the past 90 days. The company's expected earnings growth for the current year is 8.7%.
NiSource provides natural gas, electricity and other products and services in the United States. NI currently has a Zacks Rank #2 and a VGM Score of B. The Zacks Consensus Estimate for its current-year earnings has increased 0.6% over the past 60 days. The company's expected earnings growth for the current year is 8.8%.
Lifeway Foods produces Kefir, a drinkable product, but distinct from yogurt. LWAY currently has a Zacks Rank #1 and a VGM Score of A. The Zacks Consensus Estimate for its current-year earnings has increased 16.7% over the past 60 days. The company's expected earnings growth for the current year is 1,066.7%.
MGP Ingredients produces distillery products for the packaged goods industry. MGPI currently has a Zacks Rank #2 and a VGM Score of B. The Zacks Consensus Estimate for its current-year earnings has increased 0.9% over the past 60 days. The company's expected earnings growth for the current year is 14.2%.
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 Atmos Energy, CenterPoint Energy, NiSource, Lifeway Foods and MGP Ingredients
For Immediate Release
Chicago, IL – January 8, 2024 – 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: Atmos Energy (ATO - Free Report) , CenterPoint Energy (CNP - Free Report) , NiSource (NI - Free Report) , Lifeway Foods (LWAY - Free Report) and MGP Ingredients (MGPI - Free Report) .
Here are highlights from Friday’s Analyst Blog:
5 Top Defensive Stocks to Counter Market Upheavals in 2024
Regrettably, the Santa Claus rally didn't happen this time on Wall Street. The Santa Claus rally period includes the last five trading sessions of a calendar year and the first two trading sessions of the new year. During this stretch, since 1950, the broader S&P 500 Index has registered an average gain of 1.3% and has ended 78% of the time in the green in the past 75 years, according to the Dow Jones Market Data.
However, this time, the Santa Claus rally from Dec 22 to Jan 3 saw the average return of the S&P 500 declining 0.9%.It's the worst Santa Claus rally period since 2015-2016, per the Dow Jones Market Data.The tech-laden Nasdaq also fell 2.5% over the same period as investors seem to have lost interest in last year's mega-cap tech winners. The Nasdaq also closed lower on Jan 4 and declined for the fifth successive trading session, its longest losing streak since October 2022.
This is not at all encouraging for the stock market. Historically, a no-Santa Claus rally generally preceded a bear market, when stocks tend to hit significantly low prices. To top it off, vagueness related to the Federal Reserve's intention to trim interest rates has somehow dampened investors' sentiment as well. The recent minutes from the Federal Open Market Committee have shown that officials were not sure when to cut interest rates and have kept the option to hike rates if inflation spikes again.
Needless to say, interest rate hikes raise borrowing costs, hamper consumer spending, and disrupt economic growth vis-à-vis the stock market's upward trajectory. Talking about the economy, the Conference Board has already projected a mild recession during the first half of 2024. After all, the Leading Economic Index (LEI) dropped for the 20th consecutive month in November, its longest declining streak since the Great Recession. The LEI tends to indicate a possible economic downturn (read more: 3 Top Dividend Aristocrats to Buy Ahead of 2024).
Further, if geopolitical tensions again rise in the presidential election year, 2024 will be tumultuous for the U.S. economy. The global economy isn't out of the woods, and that could easily derail growth in the United States. China's economy is already in the doldrums, given the mayhem in its real-estate sector and ever-increasing local government debt.
Hence, with Wall Street plagued with a slew of uncertainties this year, it's prudent for investors to place bets on defensive players like Atmos Energy, CenterPoint Energy, NiSource, Lifeway Foods and MGP Ingredients for a steady stream of income.
These companies are non-cyclical, or in other words, the demand for their products and services is not impacted by the disturbances in the stock market. They belong to the utilities and consumer staples sectors. After all, it's impossible to live without water, electricity, food, and gas, to name a few.
The defensive stocks boast a Zacks Rank #1 (Strong Buy) or 2 (Buy) and a VGM Score of A or B. Here, V stands for Value, G for Growth and M for Momentum and 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 Rank #1 stocks here.
Atmos Energy is engaged in regulated natural gas distribution and storage business. ATO currently has a Zacks Rank #2 and a VGM Score of B. The Zacks Consensus Estimate for its current-year earnings has increased 1.2% over the past 60 days. The company's expected earnings growth for the current year is 7.2%.
CenterPoint Energy provides electric transmission & distribution, natural gas distribution and competitive natural gas sales and services operations. CNP currently has a Zacks Rank #2 and a VGM Score of B. The Zacks Consensus Estimate for its current-year earnings has increased 0.7% over the past 90 days. The company's expected earnings growth for the current year is 8.7%.
NiSource provides natural gas, electricity and other products and services in the United States. NI currently has a Zacks Rank #2 and a VGM Score of B. The Zacks Consensus Estimate for its current-year earnings has increased 0.6% over the past 60 days. The company's expected earnings growth for the current year is 8.8%.
Lifeway Foods produces Kefir, a drinkable product, but distinct from yogurt. LWAY currently has a Zacks Rank #1 and a VGM Score of A. The Zacks Consensus Estimate for its current-year earnings has increased 16.7% over the past 60 days. The company's expected earnings growth for the current year is 1,066.7%.
MGP Ingredients produces distillery products for the packaged goods industry. MGPI currently has a Zacks Rank #2 and a VGM Score of B. The Zacks Consensus Estimate for its current-year earnings has increased 0.9% over the past 60 days. The company's expected earnings growth for the current year is 14.2%.
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.