We use cookies to understand how you use our site and to improve your experience. This includes personalizing content and advertising. To learn more, click here. By continuing to use our site, you accept our use of cookies, revised Privacy Policy and Terms of Service.
You are being directed to ZacksTrade, a division of LBMZ Securities and licensed broker-dealer. ZacksTrade and Zacks.com are separate companies. The web link between the two companies is not a solicitation or offer to invest in a particular security or type of security. ZacksTrade does not endorse or adopt any particular investment strategy, any analyst opinion/rating/report or any approach to evaluating individual securities.
If you wish to go to ZacksTrade, click OK. If you do not, click Cancel.
After a Sour August, Expect a Weak September: 5 Safe Picks
Read MoreHide Full Article
U.S. stocks have scaled upward for most of this year after last year’s selloff, confronting any hazards along the way. However, stocks were subject to bouts of volatility in August, with the major bourses ending in the red.
The comprehensive S&P 500 Index declined 1.8% in August, its first monthly slide since February, per FactSet data. Similarly, the 30-stock Dow slipped 2.4% in August, and the tech-laden Nasdaq dropped nearly 2.2%, its biggest monthly loss so far this year, added FactSet data.
The artificial intelligence-driven tech rally that primarily boosted the broader stock market for quite some time just fizzled out in August. Recently, one of the pioneers in artificial intelligence, NVIDIA Corporation’s (NVDA - Free Report) blowout quarterly earnings may have lifted investors’ sentiment, but the exuberance barely lasted after the Federal Reserve Chair Jerome Powell’s hawkish comments weighed on stocks (read more: Nvidia & 2 Other AI Stocks You'll Regret Not Buying Soon).
At the conference in Jackson Hole, Powell confirmed that even though inflationary pressure has eased, it’s not yet at an acceptable level. The central bank is willing to take any steps to bring down the inflation rate to its 2% target.
Meanwhile, the core personal consumption expenditure price index, the central bank’s favored gauge of inflation, rose 4.2% annually in July, up from the 4.1% increase in June. Thus, price pressures persist and may easily compel the Fed to further hike interest rates.
Per the CME’s FedWatch Tool, even though only 11% of market participants expect interest rates to increase by a 25-basis-point in September, 42% see a similar rate hike by the end of November. Now, a rate hike doesn’t bode well for stocks as it impacts economic growth by curtailing consumer outlays and increasing borrowing costs.
A dip in consumer confidence, by the way, has already raised fears about an imminent economic slump. The rise in gasoline prices has dented consumers’ sentiment, with the consumer confidence index declining to 106.1 in August from 114 in July (read more: Dip in Consumer Confidence Sparks Recession Fears: 3 Gainers).
To top it off, September is traditionally the worst month for the stock market. Per chief investment strategist at CFRA Research, Sam Stovall, the S&P 500 Index has delivered an average monthly negative return of 0.73% in September, since 1945. Also, the Nasdaq has recorded an average monthly negative return of 0.86% in September, since 1971, per CFRA Research.
Thus, with things not looking up for the stock market in September after a moribund August, it's prudent for astute investors to invest in safe stocks such as Centerspace (CSR - Free Report) , Magellan Midstream Partners , Invitation Home Inc. (INVH - Free Report) , Trinity Capital Inc. (TRIN - Free Report) and Runway Growth Finance Corp. (RWAY - Free Report) for a steady income.
These stocks are dividend payers, which means they have a solid business model that helps them stay afloat amid market volatility. These stocks have a low beta (ranges from 0 to 1), making them unfazed by market gyrations. They have a Zacks Rank #1 (Strong Buy) or 2 (Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.
Centerspace is a real estate development company. The company has a beta of 0.93 and a Zacks Rank #1.
CSR has a dividend yield of 4.5%. The Zacks Consensus Estimate for its current-year earnings has moved up 8.1% over the past 60 days. The company’s expected earnings growth rate for the current year is nearly 5%.
Magellan Midstream Partners is a master limited partnership that owns and operates a diversified portfolio of energy infrastructure assets. The company has a beta of 0.9 and a Zacks Rank #2.
MMP has a dividend yield of 6.3%. The Zacks Consensus Estimate for its current-year earnings has moved up 1.6% over the past 60 days. The company’s expected earnings growth rate for the current year is 12.1%.
Invitation Home provides real estate services. The company has a beta of 0.9 and a Zacks Rank #2.
INVH has a dividend yield of 3%. The Zacks Consensus Estimate for its current-year earnings has moved up 0.6% over the past 60 days. The company’s expected earnings growth rate for the current year is 7.2%.
Trinity Capital is an internally managed business development company. The company has a beta of 0.62 and a Zacks Rank #2.
TRIN has a dividend yield of 13.3%. The Zacks Consensus Estimate for its current-year earnings has moved up 1.9% over the past 60 days. The company’s expected earnings growth rate for the current year is 2.3%.
Runway Growth Finance is an externally managed business development company. The company has a beta of 0.76 and a Zacks Rank #2.
RWAY has a dividend yield of 12.3%. The Zacks Consensus Estimate for its current-year earnings has moved up 3.9% over the past 60 days. The company’s expected earnings growth rate for the current year is 29.5%.
Shares of Centerspace, Magellan Midstream Partners, Invitation Home, Trinity Capital and Runway Growth Finance have gained 10.3%, 32.3%, 15%, 34% and 12.5%, respectively, in the year-to-date period.
Image Source: Zacks Investment Research
See More Zacks Research for These Tickers
Normally $25 each - click below to receive one report FREE:
Image: Bigstock
After a Sour August, Expect a Weak September: 5 Safe Picks
U.S. stocks have scaled upward for most of this year after last year’s selloff, confronting any hazards along the way. However, stocks were subject to bouts of volatility in August, with the major bourses ending in the red.
The comprehensive S&P 500 Index declined 1.8% in August, its first monthly slide since February, per FactSet data. Similarly, the 30-stock Dow slipped 2.4% in August, and the tech-laden Nasdaq dropped nearly 2.2%, its biggest monthly loss so far this year, added FactSet data.
The artificial intelligence-driven tech rally that primarily boosted the broader stock market for quite some time just fizzled out in August. Recently, one of the pioneers in artificial intelligence, NVIDIA Corporation’s (NVDA - Free Report) blowout quarterly earnings may have lifted investors’ sentiment, but the exuberance barely lasted after the Federal Reserve Chair Jerome Powell’s hawkish comments weighed on stocks (read more: Nvidia & 2 Other AI Stocks You'll Regret Not Buying Soon).
At the conference in Jackson Hole, Powell confirmed that even though inflationary pressure has eased, it’s not yet at an acceptable level. The central bank is willing to take any steps to bring down the inflation rate to its 2% target.
Meanwhile, the core personal consumption expenditure price index, the central bank’s favored gauge of inflation, rose 4.2% annually in July, up from the 4.1% increase in June. Thus, price pressures persist and may easily compel the Fed to further hike interest rates.
Per the CME’s FedWatch Tool, even though only 11% of market participants expect interest rates to increase by a 25-basis-point in September, 42% see a similar rate hike by the end of November. Now, a rate hike doesn’t bode well for stocks as it impacts economic growth by curtailing consumer outlays and increasing borrowing costs.
A dip in consumer confidence, by the way, has already raised fears about an imminent economic slump. The rise in gasoline prices has dented consumers’ sentiment, with the consumer confidence index declining to 106.1 in August from 114 in July (read more: Dip in Consumer Confidence Sparks Recession Fears: 3 Gainers).
To top it off, September is traditionally the worst month for the stock market. Per chief investment strategist at CFRA Research, Sam Stovall, the S&P 500 Index has delivered an average monthly negative return of 0.73% in September, since 1945. Also, the Nasdaq has recorded an average monthly negative return of 0.86% in September, since 1971, per CFRA Research.
Thus, with things not looking up for the stock market in September after a moribund August, it's prudent for astute investors to invest in safe stocks such as Centerspace (CSR - Free Report) , Magellan Midstream Partners , Invitation Home Inc. (INVH - Free Report) , Trinity Capital Inc. (TRIN - Free Report) and Runway Growth Finance Corp. (RWAY - Free Report) for a steady income.
These stocks are dividend payers, which means they have a solid business model that helps them stay afloat amid market volatility. These stocks have a low beta (ranges from 0 to 1), making them unfazed by market gyrations. They have a Zacks Rank #1 (Strong Buy) or 2 (Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.
Centerspace is a real estate development company. The company has a beta of 0.93 and a Zacks Rank #1.
CSR has a dividend yield of 4.5%. The Zacks Consensus Estimate for its current-year earnings has moved up 8.1% over the past 60 days. The company’s expected earnings growth rate for the current year is nearly 5%.
Magellan Midstream Partners is a master limited partnership that owns and operates a diversified portfolio of energy infrastructure assets. The company has a beta of 0.9 and a Zacks Rank #2.
MMP has a dividend yield of 6.3%. The Zacks Consensus Estimate for its current-year earnings has moved up 1.6% over the past 60 days. The company’s expected earnings growth rate for the current year is 12.1%.
Invitation Home provides real estate services. The company has a beta of 0.9 and a Zacks Rank #2.
INVH has a dividend yield of 3%. The Zacks Consensus Estimate for its current-year earnings has moved up 0.6% over the past 60 days. The company’s expected earnings growth rate for the current year is 7.2%.
Trinity Capital is an internally managed business development company. The company has a beta of 0.62 and a Zacks Rank #2.
TRIN has a dividend yield of 13.3%. The Zacks Consensus Estimate for its current-year earnings has moved up 1.9% over the past 60 days. The company’s expected earnings growth rate for the current year is 2.3%.
Runway Growth Finance is an externally managed business development company. The company has a beta of 0.76 and a Zacks Rank #2.
RWAY has a dividend yield of 12.3%. The Zacks Consensus Estimate for its current-year earnings has moved up 3.9% over the past 60 days. The company’s expected earnings growth rate for the current year is 29.5%.
Shares of Centerspace, Magellan Midstream Partners, Invitation Home, Trinity Capital and Runway Growth Finance have gained 10.3%, 32.3%, 15%, 34% and 12.5%, respectively, in the year-to-date period.
Image Source: Zacks Investment Research