For Immediate Release
Chicago, IL – March 5, 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: Amkor Technology, Inc. AMKR, SolarEdge Technologies, Inc. SEDG, Ultra Clean Holdings, Inc. UCTT, La-Z-Boy Incorporated LZB and SYNNEX Corporation SNX.
Here are highlights from Wednesday’s Analyst Blog:
5 of the Best Stocks to Buy After Super Tuesday
The U.S. stock market is usually on a topsy-turvy ride around Super Tuesday — the presidential primary election day. Since 1980, the broader S&P 500 has either risen 2% or fallen 2.6%, on average, in the three weeks surrounding Super Tuesday.
And things have been quite drab for the market before Super Tuesday. Anxiety over the spread of coronavirus across the globe sent stocks spiraling down, compelling several well-known companies like Apple, Nike, United Airlines and Mastercard to issue earnings and revenue warnings. By the way, the count of infected people continues to rise even as countries take stringent measures to contain the contagion. The WHO believes that the outbreak has the potential to become a pandemic.
But now, things are certainly looking up for the market on a slew of Democratic primary victories by former Vice President Joe Biden on Super Tuesday. Biden has won in Virginia, Massachusetts, North Carolina, Alabama, Oklahoma, Arkansas, Tennessee and Minnesota. This followed Biden’s strong win in South Carolina last Saturday.
Economists now believe that Biden’s win has staved off “America’s nightmare” in case Bernie Sanders had won. Biden is more known for his moderate views, unlike the self-described democratic socialist Sanders.
Sanders’ policies haven’t been positive for stocks. He has favored Medicare for all, and wanted to abolish private insurance as well as regulations in the field of environment and banking. Needless to say, these policies are particularly negative for sectors, including healthcare, energy and financials. RBC Capital Markets added that investors see a bearish or very bearish outcome for 79% of the industries, provided Sanders win.
Andrew Brenner, head of International Fixed Income at National Alliance Securities, summed up by saying that “while we think the markets have been focusing on the virus and the outlook for the rest of the year, the Super Tuesday results had a positive effect on markets.” He added that “we think Biden will be better for markets than Sanders.”
But it’s just not Biden’s strong show that will push stocks higher. The strength in the domestic economy is also boosting investors’ sentiment. Both domestic manufacturing and service activities picked up recently, and the labor market continues to be strong, a tell-tale sign that the economy is doing well despite the coronavirus onslaught.
According to the Institute of Supply Management, its manufacturing index climbed to 50.9 in January from an upwardly revised 47.8 in December. The index scaled beyond the 50 mark, which separates expansion from contraction. The non-manufacturing index in the meantime came in at 55.5 for January, topping analysts’ estimate of 55.
The United States also added a massive 225,000 jobs in January, way higher than analyst expectations of 160,000 jobs, per the Labor Department. The unemployment rate, in the meantime, continues to be near a 50-year low. Further, wage growth has improved. Average hourly earnings rose 3.1% in January.
Here’re 5 Stocks to Win Big After Super Tuesday
With Biden’s win minimizing risks to markets and the domestic economy remaining in pretty good shape, stocks are expected to scale north in the near term. We have, thus, selected five such stocks that have the potential to gain. These stocks flaunt a Growth Score of A along with a Zacks Rank #1 (Strong Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.
Amkor Technology, Inc. provides outsourced semiconductor packaging and test services. The Zacks Consensus Estimate for its current-year earnings has advanced 25% over the past 60 days. The company’s expected earnings growth rate for current quarter, next quarter and current year is 550%, 475% and 78.6%, respectively.
SolarEdge Technologies, Inc. develops, and sells direct current optimized inverter systems. The Zacks Consensus Estimate for its current-year earnings has moved up 10.6% over the past 60 days. The company’s expected earnings growth rate for the current and next quarter is 100% and 47.9%, respectively. The company is projected to report earnings growth of 27% for the current year.
Ultra Clean Holdings, Inc. manufactures, and tests production tools, modules, and subsystems. The Zacks Consensus Estimate for its current-year earnings has risen 35% over the past 60 days. The company’s expected earnings growth rate for current quarter, next quarter and current year are all more than 100%.
La-Z-Boy Incorporated mostly distributes and retails upholstery furniture products. The Zacks Consensus Estimate for its current-year earnings has moved 4.4% north over the past 60 days. The company’s expected earnings growth rate for the current and next quarter is 7.8% and 11.9%, respectively. In fact, the company is expected to record earnings growth of 10.3% in the current year.
SYNNEX Corporation provides business process services. The Zacks Consensus Estimate for its current-year earnings has climbed 5.8% over the past 60 days. The company’s expected earnings growth rate for the current and next quarter is 10.6% and 11.5%, respectively. The company is also expected to report earnings growth of 5.4% for the current year.
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