The historic slump in oil completely ruined the Wall Street’s rising euphoria. Investors fretted over possibilities that the plunge in crude would impact the oil and gas sector, adding to the recessionary fears sparked by the coronavirus outbreak.
But a new federal aid designed to support businesses is some relief. The Senate has lately passed a $484-billion package to pep up small business houses and hospitals devastated by the pandemic. Lest we forget, more than 22 million Americans have filled jobless claims. The bill was passed after two weeks of negotiations between the Republicans and Democrats the bill got passed, and now it is headed to the House, which aims to approve it by Apr 23.
So, what’s in the new relief bill? The earlier $349 billion as loans to small businesses in the Paycheck Protection Program ran dry in just two weeks. The lawmakers have thus decided to add another $310 billion to the fund. The new bill sets aside $60 billion for small lenders and credit unions that can allocate loans to small businesses. The bill also includes another $60 billion for Small Business Administration disaster assistance loans and grants.
Other measures that the bill includes are an additional $75 billion for hospitals and healthcare providers to meet coronavirus-related expenses, including buying additional protective gears and expanding the number of beds. The pandemic by the way has compelled many hospitals to suspend elective surgeries and procedures, resulting in financial losses. They had to trim employees’ wages and furlough workers.
Last but not the least, the bill would provide an additional $25 billion to expand coronavirus testing capacity, which several states are currently lacking in the United States. The relief amount will help states develop, administer and analyze tests as well as increase lab capacity.
The current relief bill is certainly the need of the hour as intensifying coronavirus crisis overwhelmed the healthcare system and grinded the economy to a halt. It follows the historic rescue package worth $2 trillion, which also had a positive impact on investors’ sentiment. The deal had set aside $250 billion for direct payments to individuals, $500 billion for distressed companies and $250 billion for unemployment insurance benefits.
And the landmark deal injected enough cash to bolster the economy, and provide the required liquidity and stability to financial markets. The Fed has also stepped up and unleashed an array of stimulus measures to date. The central bank trimmed borrowing costs and pumped billions of dollars into the banking system to sustain the credit flow. Policy makers unanimously agreed to trim benchmark federal funds rate a full percentage point to a range of zero to 0.25%.
5 Stocks to Make the Most of the Virus Relief Packages
U.S. lawmakers’ agreement on a sweeping stimulus package designed to curb the economic fallout from the coronavirus-induced public health crisis will certainly help Wall Street stay afloat. Thus, investing in solid stocks poised to gain in the near term seems prudent.
These stocks flaunt a Zacks Rank #1 (Strong Buy) and a
Growth Score of A. Here V stands for Value, G for Growth and M for Momentum and the score is a weighted combination of these three metrics. Such a score allows you to eliminate the negative aspects of stocks and select winners. You can see the complete list of today’s Zacks #1 Rank stocks here. Avid Technology, Inc. AVID develops and sells software, hardware, and integrated solutions for video and audio content creation. 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 quarter and year is 600% and 68.6%, respectively. Cornerstone Building Brands, Inc. CNR designs, engineers, manufactures, and markets external building products. The Zacks Consensus Estimate for its current-year earnings has risen 3.6% over the past 60 days. The company’s expected earnings growth rate for the current and next year is 46.2% and 33.3%, respectively. CURO Group Holdings Corp. CURO operates as a consumer finance company. It offers unsecured and secured instalment, open-end and single-pay loan services. The Zacks Consensus Estimate for its current-year earnings has advanced 6.4% over the past 60 days. The company’s expected earnings growth rate for the current quarter and year is 23.1% and 12%, respectively. Build-A-Bear Workshop, Inc. BBW is the leading and only national company providing a make your own stuffed animal interactive retail-entertainment experience. The Zacks Consensus Estimate for its current-year earnings has moved 22.2% north over the past 60 days. The company’s expected earnings growth rate for the current quarter and year is 50% and 450%, respectively. Regional Management Corp. ( RM Quick Quote RM - Free Report) is a diversified specialty consumer finance company engaged in providing loan products primarily to customers with limited access to consumer credit. The Zacks Consensus Estimate for its current-year earnings has moved up 1.5% over the past 60 days. The company’s expected earnings growth rate for the current quarter and year is 22.9% and 5.8%, respectively. 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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