Wall Street is witnessing wild swings this month on escalation in trade tensions, which has raised global growth worries once again and triggered sharp selloffs. This is especially true given that Trump raised the previously delayed tariffs on Chinese goods worth $200 billion effective May 10 midnight and then blacklisted Chinese firm Huawei Technologies and 26 of its affiliates, forbidding it from doing business with American companies effective May 17.
Though a temporary 90-day exemption has been granted to Huawei, a trade deal between the United States and China is far from reality. Additionally, fear of a no-deal Brexit has risen, giving investors another reason to be cautious. Further, the latest weak service sector data, which shows that growth surprisingly slowed in May to a three-year low, also weighed on sentiments. Given the bearish trends, the three major indices, namely the S&P 500, the Dow Jones and the Nasdaq Composite Index, have shed at least 4% this month and are poised to further drop in the week ahead. If the losses hold over the next several trading sessions of this month, Wall Street may post the first loss for the month of May in seven years, according to Dow Jones Market Data. VIDEO
Nevertheless, a strong economy bodes well for the stock market. The U.S. economy added jobs for 103 consecutive months, representing the longest-ever streak of job creation. The unemployment rate has dropped to 3.6% — the lowest in nearly 50 years — while wages rose at an annual rate of 3.2% in April, the ninth consecutive month of more than 3% growth. The American economy expanded at a faster-than-expected rate of 3.2% in the first quarter of 2019, marking the best GDP growth to start the year since 2015.
Americans are also feeling optimistic with consumer sentiment hovering at a 15-year high in early May. Additionally, a surge in oil price and the Fed’s decision of not raising interest rates this year after seven hikes over the past two years are favoring consumers. The combination of these factors continued to keep the momentum in the stock market alive. While a number of stocks have incurred heavy losses so far this month, a few are still shining and enjoying their ascent. Below we have highlighted five such stocks from the S&P 500 Index that are trading in green. These have a solid Zacks Rank #1 (Strong Buy) or 2 (Buy), and a VGM Score of A or B, suggesting their continued outperformance. You can see . the complete list of today’s Zacks #1 Rank stocks here Harris Corporation ( HRS - Free Report) – Up 13.2% This is a leading technology innovator that solves government and commercial customers' mission-critical challenges in the United States and internationally. It witnessed solid earnings estimate revision of 18 cents for this fiscal (ending June 2019) over the past month and has an expected growth rate of 25.4%. Harris Corporation has a Zacks Rank #2 and a VGM Score of B. American International Group, Inc. ( AIG - Free Report) – Up 9.8% It is the leading international insurance organization with operations in more than one hundred thirty countries and jurisdictions. The company saw robust earnings estimate revision of 56 cents for this year in the past month and is expected to generate whopping earnings growth of 323.9%. The stock has a Zacks Rank #2 and VGM Score of B. Tyson Foods Inc. ( TSN - Free Report) – Up 8.9% This is the world's largest processor and marketer of chicken, beef and pork, and is the second-largest food company in the Fortune 500. It saw positive earnings estimate revision of 6 cents for fiscal (ending September 2019) in a past month but is expected to register earnings decline of 2.8%. TSN carries a Zacks Rank #2 and has a VGM Score of B. WellCare Health Plans Inc. ( WCG - Free Report) – Up 6.2% This company focuses exclusively on providing government-sponsored managed care services, primarily through Medicaid, Medicare Advantage and Medicare Prescription Drug Plans, to families, children, seniors and individuals with complex medical needs. The stock saw positive earnings estimate revision of 37 cents for this year over the past month and has an estimated growth rate of 26.6%. The stock has a Zacks Rank #2 and a VGM Score of B. Broadridge Financial Solutions Inc. ( BR - Free Report) – Up 4.1% This is a global fintech leader, providing investor communications and technology-driven solutions to banks, broker-dealers, mutual funds and corporate issuers globally. It witnessed positive earnings estimate revision of 3 cents for te fiscal (ending June 2019) in a month and has an expected growth rate of 11%. Broadridge Financial has a Zacks Rank #2 and a VGM Score of B. Looking for Stocks with Skyrocketing Upside? Zacks has just released a Special Report on the booming investment opportunities of legal marijuana. Ignited by new referendums and legislation, this industry is expected to blast from an already robust $6.7 billion to $20.2 billion in 2021. Early investors stand to make a killing, but you have to be ready to act and know just where to look. See the pot trades we're targeting>>