For Immediate Release
Chicago, IL – November 22, 2016 – 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 SkyWest Inc. (Nasdaq:(SKYW - Free Report) –Free Report), Sanderson Farms Inc. (Nasdaq:(SAFM - Free Report) –Free Report), USD Partners LP (NYSE:(USDP - Free Report) –Free Report), Hormel Foods Corporation (NYSE:(HRL - Free Report) –Free Report) and Cheesecake Factory Inc. (Nasaq:(CAKE - 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:
Stocks to Shower Big Gains for Thanksgiving Week
Thanksgiving week is here and history shows that this holiday-shortened week is a bullish feast for stock investors –– even those with low volumes. According to research firm Bespoke, the average return of the S&P 500 has been 0.81% during Thanksgiving week over the past 20 years and the week is positive 60% of the time.
Kensho, a tool designed to quantify historical market events, depicts that the S&P 500 posted an average return of 1% during the week of Thanksgiving. As per Schaeffer's Investment Research , the S&P 500 index has been positive 68% of the time with average returns of 0.64% over the past 50 years. In particular, U.S. stocks have generated average gains of 0.32% over the three days until Wednesday before Turkey Day, closing positive 82% of the time.
Thanksgiving Never Better than This Year
Thanksgiving could not come better than this, indicating huge optimism for stocks. Notably, the major benchmarks are currently within the striking distance from their record highs. This is because the U.S. stock market has been steadily rising this month after the unexpected election of Donald Trump (read: Trump Drives Dow to Record High: ETFs in Focus).
Trump’s proposal of expansive government spending, lesser financial regulation and increased prospects of tax cuts would boost economic growth as well as increase inflation and interest rates. In particular, the Fed in its latest testimony hinted at a sooner-than-expected rates hike (might be in December) given the U.S. economy has been on a solid footing with an improving housing market, rising consumer prices and a more robust labor market. These should be enough for the economy to withstand an increase in interest rates. All these have set the stage for the rally in stocks for the coming weeks.
Food, Beverage & Transportation: Hot Spots
While many corners of the stock world will see a rally, food and beverage, and transportation stocks will likely take charge. According to the latest data from the American Farm Bureau Federation, the average cost of serving 10 people for Thanksgiving is expected to drop 24 cents from last year to $49.87 thanks to declining farm prices including the most happening food ––turkey.
According to travel service provider AAA, thanksgiving holiday travel is expected to hit the levels not seen in nine years buoyed by lower gas prices. As many as 48.7 million Americans will travel through roads and skies this Thanksgiving holiday period (Nov 23-Nov 27). Out of these, 43.5 million Americans will take long car trips (up 1.9% from last year), 3.7 million will fly (up 1.6%) and the rest will travel by bus and train (up less than 1%).
Notably, a report from the U.S. airlines group, Airlines for America (A4A), shows that about 27.3 million passengers would fly over the 12-day Thanksgiving holiday travel period (Nov 18-Nov 29), up 2.5% from last year (read: If Oil Continues to Soar, These 7 ETFs May Fall).
While there are several stocks that could spike on Thanksgiving, we have outlined those that have seen their rank rising to #1 (Strong Buy) or #2 (Buy) in the past week due to the event.
SkyWest Inc. (Nasdaq: (SKYW - Free Report) – Free Report)
This Utah-based company operates a regional airline in the United States. The stock, with a market cap of $1.87 billion, was upgraded to a Zacks Rank #1 and has a VGM Style Score of A.
Sanderson Farms Inc. (Nasdaq: (SAFM - Free Report) – Free Report)
This Mississippi-based company is a fully integrated poultry processing company engaged in the production, processing, marketing and distribution of fresh and frozen chicken products. The stock has a Zacks Rank #1 with a VGM Style Score of A and has a market cap of $1.85 billion.
USD Partners LP (NYSE: (USDP - Free Report) – Free Report)
This Texas-based company acquires, develops and operates energy-related rail terminals and other midstream infrastructure assets and businesses in the United States and Canada. With a market cap of $190 million, USDP has a Zacks Rank #1 and a VGM Style Score of A.
Hormel Foods Corporation (NYSE: (HRL - Free Report) – Free Report)
This Minnesota-based company is a multinational manufacturer and marketer of high-quality, brand-name food and meat products worldwide. It has a Zacks Rank #2 and a VGM Style Score of B. Market cap of HRL is $19.02 billion.
The Cheesecake Factory Inc. (Nasaq: (CAKE - Free Report) – Free Report)
This California-based company operates full-service and casual dining restaurants primarily in the United States. With a market cap of $2.74 billion, the stock has a Zacks Rank #2 and a VGM Style Score of A (read: How Does Q3 Earnings Taste to Restaurant ETF?).
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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.
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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.
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