Amid global growth slowdown concerns, the S&P 500 has hit new highs on strong optimism over easing money policies. Fed Chair Jerome Powell in the latest FOMC meeting hinted at future rate cuts. It removed the word “patient” from its updated policy statement and said it would act “as appropriate" in order to sustain an economic expansion that has lasted nearly 10 years.
The latest weak job data and subdued inflation along with trade tensions stirred speculation on interest rate cuts. Lower interest rates will keep borrowing cost down, thereby resulting in higher consumer spending and rise in economic activities. Further, the possibility of rate cuts has put pressure on the U.S. dollar, making dollar-denominated products cheaper for foreign buyers and raising demand for American products. The expectation of the resumption of trade talks between the United States and China later this month has added to the strength. Further, recovery in the U.S. housing market, oil price surge and waves of deal activities are also driving the bulls lately. All these developments have rekindled investors’ confidence into the U.S. economy and stock market. VIDEO
While there are winners from various corners of the space, we have highlighted stocks that have shown strong momentum so far this year and have a solid Zacks ETF Rank #1 (Strong Buy) or 2 (Buy). Below we have presented a bunch of those that have easily led the way on the S&P 500 Index in the first half, gaining more than 45%, and will continue to outperform heading into the second half. You can see
. the complete list of today’s Zacks #1 Rank stocks here Xerox Corporation ( XRX Quick Quote XRX - Free Report) – Up 76.9% With a market cap of $7.85 billion, Xerox is the world's leading enterprise for business process and document management. The stock saw positive earnings estimate revision of 13 cents for this year over the past three months with an expected earnings growth rate of 12.43%. It has a Zacks Rank #2 and VGM Score of A. Anadarko Petroleum Corporation APC – Up 59.4% It is one of the world's largest independent oil and gas exploration and production companies. The stock saw solid earnings estimate revision of 99 cents for this year over the past three months with an expected earnings growth rate of 19.03%. Anadarko Petroleum has a market cap of $35.1 billion and sports a Zacks Rank #1. It flaunts a solid VGM Score of B. Copart Inc. CPRT – Up 55% It is a global leader in online vehicle auctions. The stock saw solid earnings estimate revision of 6 cents for the full fiscal year (ending July 2019) over the past three months with an expected earnings growth rate of 27.7%. CPRT has a market cap of $13 billion and carries a Zacks Rank #2. Its VGM Score currently stands at B. Celgene Corporation CELG – Up 52.6% This is a global biopharmaceutical company engaged in the discovery, development and commercialization of innovative therapies for the treatment of cancer and immune-inflammatory related diseases. The stock saw positive earnings estimate revision of a penny for this year over the past two months and has an expected growth rate of 20.9%. It has a Zacks Rank #2 and VGM Score of A. Celgene Corporation has a market cap of $69 billion. Tyson Foods Inc. TSN – Up 45.6% This is the world's largest processor and marketer of chicken, beef and pork, the second-largest food company in the Fortune 500 and a member of the S&P 500. With a market cap of $28.4 billion, the stock witnessed negative earnings estimate revision of 6 cents for the year (ending September 2019) in the past three months. It has an estimated earnings decline of 3.1%. The stock has a Zacks Rank #2 and VGM Score of A. Today's Best Stocks from Zacks Would you like to see the updated picks from our best market-beating strategies? From 2017 through 2018, while the S&P 500 gained +15.8%, five of our screens returned +38.0%, +61.3%, +61.6%, +68.1%, and +98.3%. This outperformance has not just been a recent phenomenon. From 2000 – 2018, while the S&P averaged +4.8% per year, our top strategies averaged up to +56.2% per year. See their latest picks free >>