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4 S&P 500 Stocks to Buy This Coronavirus-Hit Earnings Season
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The S&P 500 has been witnessing turmoil over the past three months on account of the novel coronavirus (COVID-19) outbreak. Notably, the index has declined 11.8% on a year-to-date basis.
The imposition of lockdowns across the world in a bid to curb the spread of COVID-19 has been taking a toll on the world economy.
Consequently, the coronavirus pandemic has caused disruptions in major sectors and economic zones, which has resulted into a full-blown global crisis owing to slowdown in productions and operations, and sluggish spending patterns.
Nevertheless, the S&P 500 index experienced best weekly gains since 1974 last week when it surged 12.1% per CNBC report. Further, the index has returned 12.2% over the past one month.
In this regard, a number of stimulus measures announced by the Federal Reserve and other governments and central banks to counter the impact of coronavirus on the economy is a major positive. Especially, Fed’s financial commitment toward small and medium businesses is noteworthy.
Let’s look into the other positives that are expected to help the index to rebound in the near term.
Positive Trends Despite Coronavirus Scare
As a result of “The Great Lockdown” period, the adoption rate of Internet-based services and apps has been increasing rapidly over the past few weeks since people have been compelled to stay at home. Moreover, the work-from-home wave globally is bolstering demand for advanced technology-based virtual meeting and conference tools.
All these, in turn, are aiding growth in the high speed Internet services. Additionally, rising demand for robust communication networks is another positive.
Further, growing proliferation of AI technology and cloud computing products and services in managing this pandemic situation is a tailwind.
Apart from these, the adoption rate of streaming services for entertainment has also surged in this ‘stay at home’ scenario. This has created opportunities in the media and consumer discretionary sector.
Additionally, the digital healthcare service providers are gaining strong momentum in this lockdown situation.
Our Picks
Here, we pick four S&P 500 stocks with solid fundamentals that investors can consider this earnings season despite the coronavirus-led downturn.
Cardinal Health (CAH - Free Report) is benefiting from its tie-ups with CVS Health and PANTHERx Specialty Pharmacy. Further, strengthening Pharmaceutical Distribution and expanding Specialty Solutions customer base is driving growth in the Pharmaceutical segment.
Cardinal Health beat estimates in the trailing four quarters with a positive earnings surprise of 18.2%, on average.
Per the Zacks model, the combination of a positive Earnings ESP and a Zacks Rank #1, 2 (Buy) or 3 (Hold) increases the odds of an earnings beat.
DISH Network is gaining on DISH TV and Sling Tv’s programming package price hike, which is driving growth in its Pay-TV average revenue per user. Further, its efforts to diversify business from being a pure-play satellite-TV operator to an Internet TV operator are positives.
DISH beat estimates in two of the trailing four quarters. The company has a trailing four-quarter positive earnings surprise of 3.5%, on average.
Further, the company has an Earnings ESP of +5.46% and a Zacks Rank #2. You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.
Synopsys (SNPS - Free Report) is riding on rising demand for advanced technology, design, IP and security solutions. Further, strong momentum in Fusion Design Platform and Verification Continuum platform remains a key catalyst.
Synopsys beat estimates in the trailing four quarters with a positive earnings surprise of 6.3%, on average.
Further, the company has an Earnings ESP of +2.69% and a Zacks Rank #2.
T-Mobile US (TMUS - Free Report) is benefiting from strength in promotional activities, including growth in its Netflix offering, which is driving branded postpaid revenues. Further, rapid deployment of its 600 MHz spectrum remains a positive. Also, merger with Sprint bodes well for its 5G endeavors.
T-Mobile beat estimates in the trailing four quarters with a positive earnings surprise of 19.5%, on average.
Further, the company has an Earnings ESP of +2.25% and a Zacks Rank #2.
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.
Image: Bigstock
4 S&P 500 Stocks to Buy This Coronavirus-Hit Earnings Season
The S&P 500 has been witnessing turmoil over the past three months on account of the novel coronavirus (COVID-19) outbreak. Notably, the index has declined 11.8% on a year-to-date basis.
The imposition of lockdowns across the world in a bid to curb the spread of COVID-19 has been taking a toll on the world economy.
Consequently, the coronavirus pandemic has caused disruptions in major sectors and economic zones, which has resulted into a full-blown global crisis owing to slowdown in productions and operations, and sluggish spending patterns.
Nevertheless, the S&P 500 index experienced best weekly gains since 1974 last week when it surged 12.1% per CNBC report. Further, the index has returned 12.2% over the past one month.
In this regard, a number of stimulus measures announced by the Federal Reserve and other governments and central banks to counter the impact of coronavirus on the economy is a major positive. Especially, Fed’s financial commitment toward small and medium businesses is noteworthy.
Let’s look into the other positives that are expected to help the index to rebound in the near term.
Positive Trends Despite Coronavirus Scare
As a result of “The Great Lockdown” period, the adoption rate of Internet-based services and apps has been increasing rapidly over the past few weeks since people have been compelled to stay at home. Moreover, the work-from-home wave globally is bolstering demand for advanced technology-based virtual meeting and conference tools.
All these, in turn, are aiding growth in the high speed Internet services. Additionally, rising demand for robust communication networks is another positive.
Further, growing proliferation of AI technology and cloud computing products and services in managing this pandemic situation is a tailwind.
Apart from these, the adoption rate of streaming services for entertainment has also surged in this ‘stay at home’ scenario. This has created opportunities in the media and consumer discretionary sector.
Additionally, the digital healthcare service providers are gaining strong momentum in this lockdown situation.
Our Picks
Here, we pick four S&P 500 stocks with solid fundamentals that investors can consider this earnings season despite the coronavirus-led downturn.
Cardinal Health (CAH - Free Report) is benefiting from its tie-ups with CVS Health and PANTHERx Specialty Pharmacy. Further, strengthening Pharmaceutical Distribution and expanding Specialty Solutions customer base is driving growth in the Pharmaceutical segment.
Cardinal Health beat estimates in the trailing four quarters with a positive earnings surprise of 18.2%, on average.
Further, the company has an Earnings ESP of +0.89% and a Zacks Rank #1 (Strong Buy), which makes us reasonably confident about an earnings beat this time around. You can see the complete list of today’s Zacks #1 Rank stocks here.
Cardinal Health, Inc. Price and EPS Surprise
Cardinal Health, Inc. price-eps-surprise | Cardinal Health, Inc. Quote
Per the Zacks model, the combination of a positive Earnings ESP and a Zacks Rank #1, 2 (Buy) or 3 (Hold) increases the odds of an earnings beat.
DISH Network is gaining on DISH TV and Sling Tv’s programming package price hike, which is driving growth in its Pay-TV average revenue per user. Further, its efforts to diversify business from being a pure-play satellite-TV operator to an Internet TV operator are positives.
DISH beat estimates in two of the trailing four quarters. The company has a trailing four-quarter positive earnings surprise of 3.5%, on average.
Further, the company has an Earnings ESP of +5.46% and a Zacks Rank #2. You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.
DISH Network Corporation Price and EPS Surprise
DISH Network Corporation price-eps-surprise | DISH Network Corporation Quote
Synopsys (SNPS - Free Report) is riding on rising demand for advanced technology, design, IP and security solutions. Further, strong momentum in Fusion Design Platform and Verification Continuum platform remains a key catalyst.
Synopsys beat estimates in the trailing four quarters with a positive earnings surprise of 6.3%, on average.
Further, the company has an Earnings ESP of +2.69% and a Zacks Rank #2.
Synopsys, Inc. Price and EPS Surprise
Synopsys, Inc. price-eps-surprise | Synopsys, Inc. Quote
T-Mobile US (TMUS - Free Report) is benefiting from strength in promotional activities, including growth in its Netflix offering, which is driving branded postpaid revenues. Further, rapid deployment of its 600 MHz spectrum remains a positive. Also, merger with Sprint bodes well for its 5G endeavors.
T-Mobile beat estimates in the trailing four quarters with a positive earnings surprise of 19.5%, on average.
Further, the company has an Earnings ESP of +2.25% and a Zacks Rank #2.
T-Mobile US, Inc. Price and EPS Surprise
T-Mobile US, Inc. price-eps-surprise | T-Mobile US, Inc. Quote
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.
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