For Immediate Release
Chicago, IL – February 18, 2020 – 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: ResMed Inc. (RMD - Free Report) , The Ensign Group, Inc. (ENSG - Free Report) , DaVita Inc. (DVA - Free Report) , KalVista Pharmaceuticals, Inc. (KALV - Free Report) and MEI Pharma, Inc. (MEIP - Free Report) .
Here are highlights from Friday’s Analyst Blog:
New COVID-19 Cases Increase: 5 Defensive Stocks to Buy
On Feb 11, China’s National Health Commission’s stated that the number of new, confirmed cases declined to 2,478 from 3,062. However, the very next day, 242 new deaths were reported, nearly double the previous day's toll. The number of confirmed new cases in Wuhan alone touched 14,840 as of Feb 12.
Officials adopted a new methodology for counting the number of infected people, which reflected the steep increase in death toll.
CDC Fears Covid-19 Could Spread in the U.S.
In the United States, 14 cases of Covid-19 have been reported so far. More than 600 people have been quarantined, after being flown out of China, a week before. On Feb 12, the Centers for Disease Control and Prevention (CDC) had warned that the virus can “likely” spread in America.
Dr. Nancy Messonnier, director of the CDC’s National Center for Immunization and Respiratory Diseases said the health officials “should be prepared for this new virus to take a foothold in the U.S." In fact, CDC is constantly communicating with and monitoring medical supplies manufacturers to make sure that there are enough masks and gloves in case of an outbreak.
Why Play Defensive?
With the rise in Covid-19 cases in Wuhan and China, airlines have canceled flights and schools have extended holidays for an indefinite period. Even though factories are reopening, the turnout is minimal as fears of virus spread remain a major concern.
The outbreak has disrupted trade and multi-national companies’ outlook. Companies have been forced to find alternatives and shift manufacturing to the United States and Mexico.
Hence, amid the current uncertainties and fear driven by the spread of Covid-19, investing in defensive stocks like healthcare can be beneficial. Defensive stocks provide stable returns regardless of market conditions. Demand for these products or services is constant irrespective of market gyrations as these cater to basic human necessities.
However, these stocks do not give high returns when the economy is expanding, compared to technology and cyclical sectors.
We are presenting five defensive stocks. What’s more, each of our picks sports a Zacks Rank #1 (Strong Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.
ResMed Inc.develops, manufactures, distributes, and markets medical devices and cloud-based software solutions that can help to diagnose, treat, and manage respiratory disorders. The company focuses on breathing, chronic obstructive pulmonary disease, neuromuscular disease, and other chronic diseases.
The company’s expected earnings growth rate for the current year is 17.9% against the Zacks Medical - Products industry’s projected earnings decline of 0.4%. The Zacks Consensus Estimate for the company’s current-year earnings has been revised 4.9% upward over the past 60 days.
The Ensign Group, Inc.provides health-care services in the post-acute care continuum and other ancillary businesses. The company’s expected earnings growth rate for the current quarter is 9.1% against the Zacks Medical - Nursing Homes industry’s projected earnings decline of more than 100%. The Zacks Consensus Estimate for the company’s current-year earnings has been revised 8.8% upward over the past 60 days.
DaVita Inc.provides outpatient, hospital inpatient, and home-based hemodialysis services. The company’s expected earnings growth rate for the current year is nearly 8% compared with the Zacks Medical - Outpatient and Home Healthcare industry’s projected earnings growth of 5.5%. The Zacks Consensus Estimate for the company’s current-year earnings has been revised 4.9% upward over the past 60 days.
KalVista Pharmaceuticals, Inc.is a clinical stage pharmaceutical company, which discovers, develops, and commercializes small molecule protease inhibitors. The company’s expected earnings growth rate for the current year is 18.1% compared with the Zacks Medical - Drugs industry’s projected earnings growth of 11.3%. The Zacks Consensus Estimate for the company’s current-year earnings has been revised 10.9% upward over the past 60 days.
MEI Pharma, Inc.is a late-stage pharmaceutical company, focused on the development of various therapies for the treatment of cancer. The company’s expected earnings growth rate for the current quarter is 11.8% against the Zacks Medical - Drugs industry’s projected earnings decline of more than 100%. The Zacks Consensus Estimate for the company’s current-year earnings has been revised 5.4% upward over the past 60 days.
5 Stocks Set to Double
Each was hand-picked by a Zacks expert as the #1 favorite stock to gain +100% or more in 2020. Each comes from a different sector and has unique qualities and catalysts that could fuel exceptional growth.
Most of the stocks in this report are flying under Wall Street radar, which provides a great opportunity to get in on the ground floor.
Today, See These 5 Potential Home Runs >>
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 http://www.zacks.com/performancefor information about the performance numbers displayed in this press release.