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Your investments often seem to play games with you, sometimes making you feel like a fool and, at other times, a genius. As we enter the first trading day of April, let's see if there are any investments that won't let you down or make you feel foolish this month.
In any case, April is a seasonally strong month for stocks. A consensus carried out from 1950 to 2023 shows that April ended up offering positive stock returns in 52 years and negative returns in 22 years, per moneychimp.com, with an average return of positive 1.45%.
Investors should note that after a stellar start to 2024, the longevity of the Wall Street rally is now questionable. This is especially true given the fact that the U.S. economy has seen hot inflation numbers for the first two months of the year, which may deter the Fed from cutting rates soon.
But then, the S&P 500 has hit a record 20 times this year on the back of a secular bullish trend. The S&P 500 has also logged the fifth straight monthly advance — a signal that stocks may be on track for even further gains.
When we look at similar stretches throughout history in which the S&P 500 advanced five months in a row (from November through March), forward returns appear quite alluring — an average of 1.9% gains in April. About 81.8% times, the index moved higher in April.
Against this backdrop, investors can take a look at the below-mentioned stock choices. These stocks have a Zacks Rank #1.
Coinbase is the largest U.S. cryptocurrency exchange, trading some 50 different digital assets. The earnings estimate for the upcoming quarter has seen a jump from $0.34 to $0.54 in the past month.
Bitcoin has gained 15.3% in March. It had even surpassed the $73,000 level earlier in March. Several crypto stocks surged substantially last month. Before the bitcoin halving event, which is slated for late April, we may see a further run in various crypto stocks.
In fact, hedge fund manager Mark Yusko predicts that bitcoin will more than double this year to $150,000. “The big move happens post-halving,” said Yusko. “It starts to become more … parabolic toward the end of the year,” as quoted on CNBC. All these factors may boost COIN in the near term.
The Progressive Corporation is one of the major auto insurers in the country. The earnings estimate for the upcoming quarter has seen a rise of 12.7% to $2.92 in the past one month.
Cues of the steepening of the yield curve are a plus for insurance stocks. With the Fed likely to cut rates this year, short-term rates are likely to dive. Meanwhile, an improving economy and risk-on trade sentiments would push up long-term rates, resulting in higher interest rate margin. This situation is a plus for financial stocks.
Sunoco LP is a master limited partnership (MLP), yielding 5.59% annually. The earnings estimate for the upcoming quarter has seen a rise of 9.52% to $1.04 over the past month.
The year 2024 comes as a period of strong growth and high demand for the oil and gas industry. WTI crude prices have risen above the $80 mark owing to a combination of factors contributing to a tighter global supply. Also, if several economies, along with the United States, start cutting rates this year, the demand picture, too, may brighten up. The high-yielding nature of MLPs is yet another positive.
Dream Finders Homes Inc. is a homebuilding company. It operates principally in Florida, Texas, North Carolina, South Carolina, Georgia, Colorado, Virginia and Maryland.The earnings estimate for the upcoming quarter has seen a jump of 18.18% to $0.65 over the past month.
The U.S. homebuilding sector is showing signs of improvement. Increased sales, despite high home prices, are a positive indication for the business. Also, the housing market has now entered the key spring selling season, which is considered the peak time for home sellers. Normally, the season starts in March and lasts through May-June thanks to warmer weather after a chilly winter and buyers’ inclination to move to a new house before the next school calendar starts.
U.S. homebuilders are now feeling more confident than they have since last summer. Moreover, likely Fed rate cuts should drag down mortgage rates – another tailwind for the homebuilding space.
Abercrombie & Fitch Co. operates as a specialty retailer of premium, high-quality casual apparel for men, women, and kids through a network of approximately 759 stores across North America, Europe, Asia and the Middle East, as well as the e-commerce sites. The earnings estimate for the upcoming quarter has seen a jump from $0.61 to $1.50 in the past month.
U.S. economic growth is in solid shape. U.S. consumers continue to spend savings accumulated during the COVID-19 pandemic and due to easier financial conditions. The global economy, too, is showing signs of improvement. The OECD outlook projects global GDP growth of 2.9% in 2024 and a slight improvement to 3.0% in 2025.
Per OECD, developed economies, including Japan and Europe, are likely to see a notable jump in growth in 2025 from this year. Europe will see higher real income next year. Japan would likely see increased private consumption. All these factors would boost retail stocks like ANF.
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5 Stocks Not Likely to Fool You in April
Your investments often seem to play games with you, sometimes making you feel like a fool and, at other times, a genius. As we enter the first trading day of April, let's see if there are any investments that won't let you down or make you feel foolish this month.
These investments include Zacks Rank #1 (Strong Buy) stocks like Coinbase Global (COIN - Free Report) , The Progressive (PGR - Free Report) , Sunoco (SUN - Free Report) , Dream Finders Homes (DFH - Free Report) and Abercrombie & Fitch (ANF - Free Report) . You can see the complete list of today’s Zacks #1 Rank stocks here.
In any case, April is a seasonally strong month for stocks. A consensus carried out from 1950 to 2023 shows that April ended up offering positive stock returns in 52 years and negative returns in 22 years, per moneychimp.com, with an average return of positive 1.45%.
Investors should note that after a stellar start to 2024, the longevity of the Wall Street rally is now questionable. This is especially true given the fact that the U.S. economy has seen hot inflation numbers for the first two months of the year, which may deter the Fed from cutting rates soon.
But then, the S&P 500 has hit a record 20 times this year on the back of a secular bullish trend. The S&P 500 has also logged the fifth straight monthly advance — a signal that stocks may be on track for even further gains.
When we look at similar stretches throughout history in which the S&P 500 advanced five months in a row (from November through March), forward returns appear quite alluring — an average of 1.9% gains in April. About 81.8% times, the index moved higher in April.
Against this backdrop, investors can take a look at the below-mentioned stock choices. These stocks have a Zacks Rank #1.
Stock Picks
Coinbase Global (COIN - Free Report)
Coinbase is the largest U.S. cryptocurrency exchange, trading some 50 different digital assets. The earnings estimate for the upcoming quarter has seen a jump from $0.34 to $0.54 in the past month.
Bitcoin has gained 15.3% in March. It had even surpassed the $73,000 level earlier in March. Several crypto stocks surged substantially last month. Before the bitcoin halving event, which is slated for late April, we may see a further run in various crypto stocks.
In fact, hedge fund manager Mark Yusko predicts that bitcoin will more than double this year to $150,000. “The big move happens post-halving,” said Yusko. “It starts to become more … parabolic toward the end of the year,” as quoted on CNBC. All these factors may boost COIN in the near term.
The Progressive (PGR - Free Report)
The Progressive Corporation is one of the major auto insurers in the country. The earnings estimate for the upcoming quarter has seen a rise of 12.7% to $2.92 in the past one month.
Cues of the steepening of the yield curve are a plus for insurance stocks. With the Fed likely to cut rates this year, short-term rates are likely to dive. Meanwhile, an improving economy and risk-on trade sentiments would push up long-term rates, resulting in higher interest rate margin. This situation is a plus for financial stocks.
Sunoco (SUN - Free Report)
Sunoco LP is a master limited partnership (MLP), yielding 5.59% annually. The earnings estimate for the upcoming quarter has seen a rise of 9.52% to $1.04 over the past month.
The year 2024 comes as a period of strong growth and high demand for the oil and gas industry. WTI crude prices have risen above the $80 mark owing to a combination of factors contributing to a tighter global supply. Also, if several economies, along with the United States, start cutting rates this year, the demand picture, too, may brighten up. The high-yielding nature of MLPs is yet another positive.
Dream Finders Homes (DFH - Free Report)
Dream Finders Homes Inc. is a homebuilding company. It operates principally in Florida, Texas, North Carolina, South Carolina, Georgia, Colorado, Virginia and Maryland.The earnings estimate for the upcoming quarter has seen a jump of 18.18% to $0.65 over the past month.
The U.S. homebuilding sector is showing signs of improvement. Increased sales, despite high home prices, are a positive indication for the business. Also, the housing market has now entered the key spring selling season, which is considered the peak time for home sellers. Normally, the season starts in March and lasts through May-June thanks to warmer weather after a chilly winter and buyers’ inclination to move to a new house before the next school calendar starts.
U.S. homebuilders are now feeling more confident than they have since last summer. Moreover, likely Fed rate cuts should drag down mortgage rates – another tailwind for the homebuilding space.
Abercrombie & Fitch (ANF - Free Report)
Abercrombie & Fitch Co. operates as a specialty retailer of premium, high-quality casual apparel for men, women, and kids through a network of approximately 759 stores across North America, Europe, Asia and the Middle East, as well as the e-commerce sites. The earnings estimate for the upcoming quarter has seen a jump from $0.61 to $1.50 in the past month.
U.S. economic growth is in solid shape. U.S. consumers continue to spend savings accumulated during the COVID-19 pandemic and due to easier financial conditions. The global economy, too, is showing signs of improvement. The OECD outlook projects global GDP growth of 2.9% in 2024 and a slight improvement to 3.0% in 2025.
Per OECD, developed economies, including Japan and Europe, are likely to see a notable jump in growth in 2025 from this year. Europe will see higher real income next year. Japan would likely see increased private consumption. All these factors would boost retail stocks like ANF.