For Immediate Release
Chicago, IL – March 11, 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: The Buckle, Inc.
BKE, Chipotle Mexican Grill, Inc. CMG, Co-Diagnostics, Inc. CODX, Moderna, Inc. ( MRNA Quick Quote MRNA - Free Report) and Regeneron Pharmaceuticals, Inc. REGN. Here are highlights from Tuesday’s Analyst Blog: 5 Stocks to Win Big from Trump's Economic Stimulus
After a brutal Monday, it’s widely expected that stocks will rebound on Tuesday. After all, Bespoke Investment Group strategists have found out that the broader S&P 500, after declining more than 5% on a Monday, has gained an average 4.2% on the following day since 1952. And this time around, the case for a rebound is even stronger, thanks to President Trump’s initiative to provide financial relief to workers as well as business houses affected by the coronavirus outbreak.
Trump is expected to meet both House and Senate leaders today to discuss an economic stimulus package that includes payroll tax cuts and substantial relief for American wage earners. Trump said that “the main thing here is we are taking care of the American public, and we’re taking care of the American economy.” In fact, such tax reliefs will certainly put more money into consumers’ wallets, which will lead to more consumption and in turn boost the economy.
And consumer discretionary companies in particular are well poised to grow on signs of renewed strength in consumer spending. Lest we forget, Americans have braved the virus scare and their confidence continues to grow. According to the Conference Board, its index of consumer confidence rose to 130.7 in February from 130.4 in the preceding month. To top it, the so-called future expectations index, based on consumers’ outlook for income, business and labor market conditions over the next six months, climbed from 101.4 to 107.8, the highest since last July.
We have, thus, selected two consumer discretionary stocks —
The Buckle, Inc. and Chipotle Mexican Grill, Inc. — which should certainly make meaningful portfolio additions. Retailer of casual apparel, footwear, and accessories, The Buckle has a Zacks Rank #1 (Strong Buy). The Zacks Consensus Estimate for its current-year earnings has moved up 2% over the past 60 days. The company’s expected earnings growth rate for the current quarter and year is 4.8% and 4.6%, respectively. You can see the complete list of today’s Zacks #1 Rank stocks here.
Chipotle Mexican Grill has a Zacks Rank #2 (Buy). The Zacks Consensus Estimate for its current-year earnings has moved 3.2% north over the past 60 days. The company’s expected earnings growth rate for the current quarter and year is 11.5% and 31.4%, respectively.
By the way, tax cut reliefs followed Trump’s signing of an $8.3-billion spending package last month to stimulate the economy. The emergency fund will be used to help treat and slow down the impact of the coronavirus on the economy. The package in particular will help companies that are involved in research and development of vaccines for the deadly virus as well as those that are aiming to prevent the rapid spread of the virus. Notable among them are
Co-Diagnostics, Inc., Moderna, Inc. and Regeneron Pharmaceuticals, Inc..
Molecular diagnostics company Co-Diagnostics has introduced an easier-to-use molecular diagnostic test known as the Logix Smart Coronavirus COVID-19 test. The company has received a CE mark approval from the European Union to make the test commercially available.
With the outbreak spreading rapidly, the need for molecular diagnostic tests will increase, and in turn, boost Co-Diagnostics’ revenues. The company currently has a Zacks Rank #2. The Zacks Consensus Estimate for its next-year earnings has moved up 66.7% over the past 60 days. What’s more, the company’s expected earnings growth rate for the next quarter is 44.4%.
Clinical stage biotechnology company, Moderna has manufactured a new vaccine for coronavirus treatment. Unlike DNA-based treatments, Moderna focuses on developing mRNA treatments, which should help in treating the virus better.
Moderna, by the way, has been pretty impressive. After getting to know the virus’ genetic composition, it took the company less than two months to develop the vaccine. Moderna currently has a Zacks Rank #2. The Zacks Consensus Estimate for its current-year earnings has moved up 6.2% over the past 60 days. The company’s expected earnings growth rate for the current and next quarter is 7.5% and 9.8%, respectively.
Based on Ebola knowledge, Regeneron Pharmaceuticals is making a vaccine to tackle COVID-19. Regeneron’s initiative to prepare such a potent weapon helped its shares increase leaps and bounds this year, especially when compared to the mere 2.5% it brought in over the last 12 months.
Regeneron currently possesses a Zacks Rank #1. The Zacks Consensus Estimate for its current-year earnings has moved up 7.1% over the past 60 days. The company’s expected earnings growth rate for the current and next quarter is 37.1% and 16.5%, respectively.
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