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Stimulus Package & Vaccine Rollout to Aid Recovery: 5 Picks
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The coronavirus pandemic has devasted economies globally. However, government’s relief packages and the speedy rollout of vaccines are constantly supporting economic recovery. President Joe Biden’s $1.9-trillion stimulus package is yet another fiscal aid that will support the economy on its path to recovery along with central banks’ near-zero interest rates. Meanwhile, more than 50 million people have so far been vaccinated in the United States and the decline in new COVID-19 cases signals faster return to normalcy and economic recovery.
Biden’s $1.9-Trillion Relief Package
On Mar 10, the U.S. House of Representatives gave the final nod to one of the largest economic aids in American history. Biden’s $1.9 trillion worth COVID-19 relief bill, also known as the American Rescue Plan Act of 2021, is not only a victory for the newly-inducted leader but the same will also support inflation for the world’s largest economy.
The massive stimulus package includes $400 billion for $1,400 direct payments to most American households, a $350-billion grant to the state and local governments, expansion of the child tax credit and an increased funding for vaccine distribution. The new bill is scheduled to be signed on Mar 12, before the current federal unemployment benefits expire on Mar 14.
Increase in direct payments to American households will attract a major portion of consumer spending. This, in turn, will support small businesses, especially restaurants and retailers that resumed business after restrictions were relaxed. Several states allowed the reopening of leisure and entertainment spaces with limited capacity on Apr 1.
Coronavirus Vaccine Rollout in Progress
Markets navigated a rollercoaster ride last year as the pharma giants tried to perfect the elixir to save millions of lives. There has been an impressive progress in coronavirus vaccine development and distribution in recent months. In the first week of March, the FDA granted an emergency use authorization to Johnson & Johnson's Janssen COVID-19 vaccine. This adds a third vaccine to the U.S. arsenal to fight the pandemic along with Moderna and Pfizer.
Johnson & Johnson developed the vaccine in partnership with Janssen Pharmaceuticals. Per the pharma bigwig, 20 million doses will be available by the end of March 2021. This could be adequate to fully vaccinate 20 million people as J&J’s vaccine is given as a single dose while Pfizer-BioNTech and Moderna are given two shots each, three to four weeks apart. Also, J&J’s vaccine does not need freezer storage, which gives it an upper hand when logistics are considered. It can be distributed easily in remote rural areas and underserved communities with limited access to healthcare and storage facilities.
Additionally, the Centers for Disease Control and Prevention (CDC) released a new guideline on Mar 8. According to a CNBC news report, CDC stated that people who are fully vaccinated against coronavirus can safely visit other fully vaccinated people and some who have not been vaccinated yet, without wearing masks or social distancing. As of the same day, 58.9 million people in America received at least one shot while 30.7 million people received two jabs, according to CDC.
Notably, Eli Lilly on Mar 10 reported that its combination antibody therapy to combat COVID-19 can reduce the risk of hospitalization and death by 87%. The combination therapy of two antibodies, namely bamlanivimab and etesevimab was conducted on more than 750 high-risk coronavirus patients.
Top 5 Picks
U.S. government’s fiscal stimulus and progress in vaccine rollout will surely support fast economic recovery. Here are five economically-sensitive stocks that are poised to grow, given such a scenario. All the stocks shortlisted below currently flaunt a Zacks Rank #1 (Strong Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.
Diamondback Energy, Inc. (FANG - Free Report) is an independent oil and natural gas company that focuses on acquisition, development, exploration, and exploitation of unconventional and onshore oil and natural gas reserves in the Permian Basin. The company’s expected earnings growth rate for the current year is 95.4% compared with the Zacks Oil and Gas - Exploration and Production - United States industry’s projected earnings growth of 8.3%. The Zacks Consensus Estimate for this company’s current-year earnings has been revised 37.2% upward over the past 60 days.
Capital One Financial Corporation (COF - Free Report) is an independent oil and natural gas company that focuses on acquisition, development, exploration, and exploitation of unconventional and onshore oil and natural gas reserves in the Permian Basin. The company’s expected earnings growth rate for the current year is more than 100% compared with the Zacks Financial - Consumer Loans industry’s projected earnings growth of 1.3%. The Zacks Consensus Estimate for this company’s current-year earnings has been revised 25.4% upward over the past 60 days.
Rent-A-Center, Inc. leases household durable goods to customers on a lease-to-own basis. The company’s expected earnings growth rate for the current year is 44.2% against the Zacks Consumer Services - Miscellaneous industry’s projected earnings decline of 3.5%. The Zacks Consensus Estimate for this company’s current-year earnings has been revised 36.8% upward over the past 60 days.
Rocky Brands, Inc. (RCKY - Free Report) designs, manufactures, and markets footwear and apparel under the Rocky, Georgia Boot, Durango, Lehigh and licensed Michelin brand names. The company’s expected earnings growth rate for the current year is 13.6% compared with the Zacks Shoes and Retail Apparel industry’s projected earnings growth of 13.1%. The Zacks Consensus Estimate for this company’s current-year earnings has been revised 25% upward over the past 60 days.
Matador Resources Company (MTDR - Free Report) , an independent energy company, engages in the exploration, development, production, and acquisition of oil and natural gas resources. The company’s expected earnings growth rate for the current year is more than 100% compared with the Zacks Oil and Gas - Exploration and Production - United States industry’s projected earnings growth of 8.3%. The Zacks Consensus Estimate for this company’s current-year earnings has been revised more than 100% upward over the past 60 days.
Breakout Biotech Stocks with Triple-Digit Profit Potential
The biotech sector is projected to surge beyond $775 billion by 2024 as scientists develop treatments for thousands of diseases. They’re also finding ways to edit the human genome to literally erase our vulnerability to these diseases.
Zacks has just released Century of Biology: 7 Biotech Stocks to Buy Right Now to help investors profit from 7 stocks poised for outperformance. Our recent biotech recommendations have produced gains of +50%, +83% and +164% in as little as 2 months. The stocks in this report could perform even better.
Image: Shutterstock
Stimulus Package & Vaccine Rollout to Aid Recovery: 5 Picks
The coronavirus pandemic has devasted economies globally. However, government’s relief packages and the speedy rollout of vaccines are constantly supporting economic recovery. President Joe Biden’s $1.9-trillion stimulus package is yet another fiscal aid that will support the economy on its path to recovery along with central banks’ near-zero interest rates. Meanwhile, more than 50 million people have so far been vaccinated in the United States and the decline in new COVID-19 cases signals faster return to normalcy and economic recovery.
Biden’s $1.9-Trillion Relief Package
On Mar 10, the U.S. House of Representatives gave the final nod to one of the largest economic aids in American history. Biden’s $1.9 trillion worth COVID-19 relief bill, also known as the American Rescue Plan Act of 2021, is not only a victory for the newly-inducted leader but the same will also support inflation for the world’s largest economy.
The massive stimulus package includes $400 billion for $1,400 direct payments to most American households, a $350-billion grant to the state and local governments, expansion of the child tax credit and an increased funding for vaccine distribution. The new bill is scheduled to be signed on Mar 12, before the current federal unemployment benefits expire on Mar 14.
Increase in direct payments to American households will attract a major portion of consumer spending. This, in turn, will support small businesses, especially restaurants and retailers that resumed business after restrictions were relaxed. Several states allowed the reopening of leisure and entertainment spaces with limited capacity on Apr 1.
Coronavirus Vaccine Rollout in Progress
Markets navigated a rollercoaster ride last year as the pharma giants tried to perfect the elixir to save millions of lives. There has been an impressive progress in coronavirus vaccine development and distribution in recent months. In the first week of March, the FDA granted an emergency use authorization to Johnson & Johnson's Janssen COVID-19 vaccine. This adds a third vaccine to the U.S. arsenal to fight the pandemic along with Moderna and Pfizer.
Johnson & Johnson developed the vaccine in partnership with Janssen Pharmaceuticals. Per the pharma bigwig, 20 million doses will be available by the end of March 2021. This could be adequate to fully vaccinate 20 million people as J&J’s vaccine is given as a single dose while Pfizer-BioNTech and Moderna are given two shots each, three to four weeks apart. Also, J&J’s vaccine does not need freezer storage, which gives it an upper hand when logistics are considered. It can be distributed easily in remote rural areas and underserved communities with limited access to healthcare and storage facilities.
Additionally, the Centers for Disease Control and Prevention (CDC) released a new guideline on Mar 8. According to a CNBC news report, CDC stated that people who are fully vaccinated against coronavirus can safely visit other fully vaccinated people and some who have not been vaccinated yet, without wearing masks or social distancing. As of the same day, 58.9 million people in America received at least one shot while 30.7 million people received two jabs, according to CDC.
Notably, Eli Lilly on Mar 10 reported that its combination antibody therapy to combat COVID-19 can reduce the risk of hospitalization and death by 87%. The combination therapy of two antibodies, namely bamlanivimab and etesevimab was conducted on more than 750 high-risk coronavirus patients.
Top 5 Picks
U.S. government’s fiscal stimulus and progress in vaccine rollout will surely support fast economic recovery. Here are five economically-sensitive stocks that are poised to grow, given such a scenario. All the stocks shortlisted below currently flaunt a Zacks Rank #1 (Strong Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.
Diamondback Energy, Inc. (FANG - Free Report) is an independent oil and natural gas company that focuses on acquisition, development, exploration, and exploitation of unconventional and onshore oil and natural gas reserves in the Permian Basin. The company’s expected earnings growth rate for the current year is 95.4% compared with the Zacks Oil and Gas - Exploration and Production - United States industry’s projected earnings growth of 8.3%. The Zacks Consensus Estimate for this company’s current-year earnings has been revised 37.2% upward over the past 60 days.
Capital One Financial Corporation (COF - Free Report) is an independent oil and natural gas company that focuses on acquisition, development, exploration, and exploitation of unconventional and onshore oil and natural gas reserves in the Permian Basin. The company’s expected earnings growth rate for the current year is more than 100% compared with the Zacks Financial - Consumer Loans industry’s projected earnings growth of 1.3%. The Zacks Consensus Estimate for this company’s current-year earnings has been revised 25.4% upward over the past 60 days.
Rent-A-Center, Inc. leases household durable goods to customers on a lease-to-own basis. The company’s expected earnings growth rate for the current year is 44.2% against the Zacks Consumer Services - Miscellaneous industry’s projected earnings decline of 3.5%. The Zacks Consensus Estimate for this company’s current-year earnings has been revised 36.8% upward over the past 60 days.
Rocky Brands, Inc. (RCKY - Free Report) designs, manufactures, and markets footwear and apparel under the Rocky, Georgia Boot, Durango, Lehigh and licensed Michelin brand names. The company’s expected earnings growth rate for the current year is 13.6% compared with the Zacks Shoes and Retail Apparel industry’s projected earnings growth of 13.1%. The Zacks Consensus Estimate for this company’s current-year earnings has been revised 25% upward over the past 60 days.
Matador Resources Company (MTDR - Free Report) , an independent energy company, engages in the exploration, development, production, and acquisition of oil and natural gas resources. The company’s expected earnings growth rate for the current year is more than 100% compared with the Zacks Oil and Gas - Exploration and Production - United States industry’s projected earnings growth of 8.3%. The Zacks Consensus Estimate for this company’s current-year earnings has been revised more than 100% upward over the past 60 days.
Breakout Biotech Stocks with Triple-Digit Profit Potential
The biotech sector is projected to surge beyond $775 billion by 2024 as scientists develop treatments for thousands of diseases. They’re also finding ways to edit the human genome to literally erase our vulnerability to these diseases.
Zacks has just released Century of Biology: 7 Biotech Stocks to Buy Right Now to help investors profit from 7 stocks poised for outperformance. Our recent biotech recommendations have produced gains of +50%, +83% and +164% in as little as 2 months. The stocks in this report could perform even better.
See these 7 breakthrough stocks now>>