Back to top

The Zacks Analyst Blog Highlights: iShares Core S&P 500 ETF, iShares Gold ETF, Northrop Grumman, iShares Aerospace & Defense ETF and Deere

Read MoreHide Full Article

For Immediate Release

Chicago, IL – November 08, 2016 – 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 iShares Core S&P 500 ETF ( NYSEARCA:(IVV - Free Report) – Free Report ), iShares Gold ETF ( NYSEARCA:(IAU - Free Report) – Free Report ), Northrop Grumman ( NYSE:(NOC - Free Report) – Free Report ), iShares Aerospace & Defense ETF ( NYSEARCA:(ITA - Free Report) – Free Report ) and Deere ( NYSE:(DE - Free Report) – Free Report ) .

Today, Zacks is promoting its ''Buy'' stock recommendations. Get #1Stock of the Day pick for free.

Here are highlights from Monday’s Analyst Blog:

Clinton or Trump, These Stocks and ETFs Will Win

The presidential election is now just a day away and the tightening race has put investors on edge. The new email probe announced by the FBI added more uncertainty to the outcome and even though Hillary has been “cleared’ by them now, a lot of damage to her campaign has already been done.

Before the disclosure, Hillary Clinton had a comfortable lead over Trump in almost all polls but the lead has shrunk over the past few days and the latest Wall Street Journal/NBC survey shows Clinton leading Trump by just four points 44% to 40% nationally.

Many other polls also show Clinton ahead of Trump but the lead is within the margin of error. And, investors are also reluctant to rely on the polls after the Brexit vote. (Read: Clinton Gets Past FBI Investigation: ETFs in Focus )

The market had earlier priced in a Clinton victory but investors have become jittery as Trump started gaining in the homestretch of the presidential race.

That’s the main reason why stocks sold-off over the past few days. They are rallying today the FBI found no “wrongdoing” by Clinton.

Many nervous investors are hedging their portfolios for a possible sharp sell-off if Trump wins the election. (Read: ETFs to Watch if Trump Makes it to White House )

Some sectors will fare better under Hillary and others may prosper if Trump wins the election. So, it is time that the investors take a look at their portfolios and be prepared to realign their portfolios for the result of the election.

Clinton and Trump strongly disagree on most policy issues but there are a few issues that they actually agree on and those areas of the market will likely do well no matter what happens tomorrow.

Long-Term Winner: Broader Stock Market

Most analysts expect a big market sell-off if Trump wins and a moderate relief rally if Clinton wins. A sell-off could be an opportunity for long-term investors to buy high-quality stocks and ETFs.

Remember, the longer-term direction of the stock market will be determined by the economy and monetary policy. The US economic outlook has clearly been brightening of late and It appears likely now that earnings growth will be positive this quarter after five consecutive quarters of decline. (Read: 7 Inverse ETFs to Play Election Uncertainty )

Many statements/promises made by candidates on the campaign trail may just turn out to be campaign rhetoric and not be followed up by any policy imitative.

Even if Trump wins the election, it’s not going to be easy for him to get congressional support for building walls or blocking trade. The US constitution ensures limits on president’s freedom of action.

So, if you are a long-term investor, buy iShares Core S&P 500 ETF ( NYSEARCA:(IVV - Free Report) – Free Report ) , which is an ultra-cheap (expense ratio just 4 basis points) way of getting diversified exposure to all S&P 500 companies.


Most analysts agree that a Trump victory would be bullish for gold. Per HSBC, gold prices could surge to $1500 an ounce by the end of 2016, up ~16% from the current levels, if Trump wins the election. In addition to greater geopolitical risks that a Trump win entails, higher government spending and protectionist trade policies would also benefit the metal.

According to HSBC, a Clinton presidency would also benefit gold though to a lesser degree. They believe that Hillary also “taken a progressively more protectionist and less free trade stance” which could send gold to $1,400 by the end of this year.

Take a look at iShares Gold ETF ( NYSEARCA:(IAU - Free Report) – Free Report ) which provides a low-cost (expense ratio 25 basis) of gaining exposure to gold.

Infrastructure and Defense

Both Clinton and Trump have expressed enthusiasm for lifting defense spending. Take a look at top-ranked defense stocks like Northrop Grumman ( NYSE:(NOC - Free Report) – Free Report ) or ETFs like iShares Aerospace & Defense ETF ( NYSEARCA:(ITA - Free Report) – Free Report ).

Infrastructure spending may also get a boost no matter who occupies the White House next year. Hillary has a $275 billion plan to improve US infrastructure over the next five years. This included $25 billion to capitalize a federal infrastructure bank.

Trump has said he’ll spend more than $500 billion to rebuild infrastructure and will finance the spending with debt. His plan however lacks details.

Stocks like Deere ( NYSE:(DE - Free Report) – Free Report ) are worth a look.

Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report >>

Today, Zacks is promoting its ''Buy'' stock recommendations. Get #1 Stock of the Day pick for free.

About Zacks Equity Research

Zacks Equity Research provides the best of quantitative and qualitative analysis to help investors know what stocks to buy and which to sell for the long-term.

Continuous coverage is provided for a universe of 1,150 publicly traded stocks. Our analysts are organized by industry which gives them keen insights to developments that affect company profits and stock performance. Recommendations and target prices are six-month time horizons.

Strong Stocks that Should Be in the News

Many are little publicized and fly under the Wall Street radar. They're virtually unknown to the general public. Yet today's 220 Zacks Rank #1 "Strong Buys" were generated by the stock-picking system that has nearly tripled the market from 1988 through 2015. Its average gain has been a stellar +26% per year. See these high-potential stocks free >>.

Get the full Report on IVV - FREE

Get the full Report on IAU - FREE

Get the full Report on NOC - FREE

Get the full Report on ITA - FREE

Get the full Report on DE - FREE

Follow us on Twitter:

Join us on Facebook:

Zacks Investment Research is under common control with affiliated entities (including a broker-dealer and an investment adviser), which may engage in transactions involving the foregoing securities for the clients of such affiliates.

Media Contact
Zacks Investment Research

800-767-3771 ext. 9339

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 for information about the performance numbers displayed in this press release.

More from Zacks Press Releases

You May Like