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This is not a great time for the market.

As if trade war tensions weren’t enough, investors are now concerned that there’s a recession on the horizon. That’s because the yields on five-year bonds recently dropped below the two year maturities, a condition called yield inversion where fears of a weaker long-term outlook pull more money into short term bonds.

Luckily, experts are less pessimistic: “An inverted yield curve is often associated with the anticipation of a recession which may be why investors are nervous about it but I’m not convinced this is what’s going on,” says Craig Erlam of forex brokerage firm OANDA.

Fed officials consider the 3-month/10-year comparison to be more indicative of a recession and these rates remain far apart. Still, they are monitoring the situation and will take necessary tightening measures if required.

Interestingly enough, as companies and individuals fret over the impact of U.S. tariffs on prices, this is actually an offsetting factor as it has the effect of increasing consumption.

So let’s not pull ourselves down over the possibilities of some future negative outcome and look for opportunities in this market. And of those opportunities there are many:  

Ring Energy, Inc. (REI - Free Report)

Based in Tulsa, U.S., Ring Energy, Inc. is engaged in the exploration and development of oil and gas primarily in Texas and Kansas.

Zacks Rank #1 (Strong Buy)

VGM Score B

Industry: Oil & Gas – E&P [Industry Rank 30, or top 12%]

Forward 12 months P/E 5.17X (industry 11.80X)

Last EPS surprise 280%

Current quarter EPS increase in last 4 weeks 42.37%

Current year EPS increase in last 4 weeks 52.97%

Stone Energy Corporation (TALO - Free Report)

Based in Houston, Texas, Talos Energy LLC engages in exploration, development and production of oil and natural gas properties. It operates primarily in the Gulf of Mexico and in the shallow waters off the coast of Mexico. Talos Energy LLC, formerly known as Stone Energy Corporation, is.

Zacks Rank #1

VGM Score B

Industry: Oil & Gas – E&P [Industry Rank 30, or top 12%]

Forward 12 months P/E 8.47X (industry 11.80X)

Last EPS surprise 480%

Current quarter EPS increase in last 4 weeks 23.38%

Current year EPS increase in last 4 weeks 30.09%

Crescent Point Energy Corporation (CPG - Free Report)

Headquartered in Calgary, Canada, Crescent Point Energy Corp. is engaged in the acquisition, exploration and development of oil and natural gas properties in Western Canada. The company's operations are with respect to light and medium oil and natural gas assets strategically focused in core areas in southern Saskatchewan and central and southern Alberta.

Zacks Rank #2 (Buy)

VGM Score A

Industry: Oil & Gas – E&P [Industry Rank 30, or top 12%]

Forward 12 months P/E 9.89X (industry 11.80X)

Last EPS surprise 1000%

Current quarter EPS increase in last 4 weeks 300%

Current year EPS increase in last 4 weeks 144.07%

Xcel Brands, Inc (XELB - Free Report)

Headquartered in New York, Xcel Brands, Inc. operates as a brand management company. It is focused on the acquisition, design, licensing, marketing and retail sales of consumer brands like the Isaac Mizrahi and Judith Ripka brands across the retail categories of apparel, footwear and sporting goods. Its two segments are Design and Licensing, while licenses brands and design services to wholesale manufacturers for a fee and Retail, which operates both brick-&-mortar stores and an ecommerce platform.

Zacks Rank #2

VGM Score A

Industry: Retail – Apparel & Shoes [Industry Rank 89, or top 35%]

Forward 12 months P/E 3.4X (industry 11.80X)

Last EPS surprise 60%

Current quarter EPS increase in last 4 weeks 20%

Current year EPS increase in last 4 weeks 29.03%

Geo Group Inc (The) (GEO - Free Report)

Headquartered in Boca Raton, Florida, the GEO Group, Inc. is an equity real estate investment trust. It specializes in the design, development, financing and operation of correctional, detention and community reentry facilities with operations in the U.S., Australia, South Africa and the UK.

Zacks Rank #1

VGM Score A

Industry: REIT & Equity Trust – Other [Industry Rank 104, or top 41%]

Forward 12 months P/E 8.04X (industry 15.80X)

Last EPS surprise 42.55%

Current quarter EPS increase in last 4 weeks 32.32%

Current year EPS increase in last 4 weeks 35.44%

Limbach Holdings, Inc. (LMB - Free Report)

Headquartered in Pittsburgh, Pennsylvania, Limbach Holdings, Inc. engineers, constructs and services the mechanical, plumbing, air conditioning, heating, building automation, electrical and control systems in buildings.

Zacks Rank #1

VGM Score B

Industry: Building Products – Maintenance Service [Industry Rank 107, or top 42%]

Forward 12 months P/E 9.15X (industry -1.10X)

Last EPS surprise 411.11%

Current quarter EPS increase in last 4 weeks 22.58%

Current year EPS increase in last 4 weeks 35.67%

                     

You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.

 

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