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4 Growth Stocks to Take Advantage of the November Rally
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Traditionally, the stock market in the United States tends to remain volatile during the late summer months due to a dearth of economic reports and earnings to spur a rally.
This year, the stock market, after peaking in July, failed to maintain the momentum. Major bourses, in reality, recorded three consecutive monthly losses in October, the longest such declining streak since March 2020.
Relatively high Treasury yields, along with tensions in the Middle East, resulted in choppier trading sessions, especially last month when the major indexes gave up most of their gains notched earlier this year.
However, the month of November has been historically strong for stocks since 1950, per LPL Financial. The broader S&P 500 has only declined once in November in the past 11 years, while the 30-stock Dow has advanced more than 1% on average in November for the last 100 years, according to Bespoke Investment Group.
Additionally, Ryan Detrick of the Carson Group found out that the S&P 500 always tends to gain in November after declining in the prior three-month period. Lest we forget that investors do tend to sell in May only to come back in October to take advantage of the year-end upward wave.
And things this year already seem to look encouraging for the stock market heading into mid-November. Last week, U.S. stocks ended on a positive note, and major indexes remain in the green month to date as Treasury yields stabilized. The Treasury yield continues to trade below the 5% mark it had breached last month.
U.S. stocks are also gaining this month as the Federal Reserve recently hinted that it is done with hiking interest rates since such aggressive monetary policy has been able to put downward pressure on inflation.
Most of the market participants now expect the Fed the keep rates unchanged in December as they did in their latest policy meeting. Needless to say, a pause in the benchmark lending rate will boost consumer spending, won’t increase the cost of borrowing, and help the economy grow.
Talking about the economy, the third quarter GDP has expanded at the fastest annual rate in almost two years, banking on an uptick in consumer outlays. And with things looking promising for the economy vis-à-vis the stock market this November, it’s wise for investors to buy stocks that can make the most of the upward rally.
American Eagle Outfitters is a specialty retailer of casual apparel, accessories, and footwear for men and women. American Eagle Outfitters, currently, has a Zacks Rank #1 and a Growth Score of A.
The Zacks Consensus Estimate for its current-year earnings has moved up 7.3% over the past 60 days. AEO’s expected earnings growth rate for the current year is 36.1%.
Abercrombie & Fitch operates as a specialty retailer of premium, high-quality casual apparel for men, women and kids. Abercrombie & Fitch, currently, has a Zacks Rank #2 and a Growth Score of A.
The Zacks Consensus Estimate for its current-year earnings has moved up 1.6% over the past 60 days. ANF’s expected earnings growth rate for the current year is 1,672%.
Cardinal Health is a nationwide drug distributor and provider of services to pharmacies, healthcare providers and manufacturers. Cardinal Health, currently, has a Zacks Rank #2 and a Growth Score of A.
The Zacks Consensus Estimate for its current-year earnings has moved up 2.6% over the past 60 days. CAH’s expected earnings growth rate for the current year is 17.8%.
Runway Growth Finance is an externally managed business development company. Runway Growth Finance, currently, has a Zacks Rank #2 and a Growth Score of A.
The Zacks Consensus Estimate for its current-year earnings has moved up 4.2% over the past 60 days. RWAY’s expected earnings growth rate for the current year is 34.9%.
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4 Growth Stocks to Take Advantage of the November Rally
Traditionally, the stock market in the United States tends to remain volatile during the late summer months due to a dearth of economic reports and earnings to spur a rally.
This year, the stock market, after peaking in July, failed to maintain the momentum. Major bourses, in reality, recorded three consecutive monthly losses in October, the longest such declining streak since March 2020.
Relatively high Treasury yields, along with tensions in the Middle East, resulted in choppier trading sessions, especially last month when the major indexes gave up most of their gains notched earlier this year.
However, the month of November has been historically strong for stocks since 1950, per LPL Financial. The broader S&P 500 has only declined once in November in the past 11 years, while the 30-stock Dow has advanced more than 1% on average in November for the last 100 years, according to Bespoke Investment Group.
Additionally, Ryan Detrick of the Carson Group found out that the S&P 500 always tends to gain in November after declining in the prior three-month period. Lest we forget that investors do tend to sell in May only to come back in October to take advantage of the year-end upward wave.
And things this year already seem to look encouraging for the stock market heading into mid-November. Last week, U.S. stocks ended on a positive note, and major indexes remain in the green month to date as Treasury yields stabilized. The Treasury yield continues to trade below the 5% mark it had breached last month.
U.S. stocks are also gaining this month as the Federal Reserve recently hinted that it is done with hiking interest rates since such aggressive monetary policy has been able to put downward pressure on inflation.
Most of the market participants now expect the Fed the keep rates unchanged in December as they did in their latest policy meeting. Needless to say, a pause in the benchmark lending rate will boost consumer spending, won’t increase the cost of borrowing, and help the economy grow.
Talking about the economy, the third quarter GDP has expanded at the fastest annual rate in almost two years, banking on an uptick in consumer outlays. And with things looking promising for the economy vis-à-vis the stock market this November, it’s wise for investors to buy stocks that can make the most of the upward rally.
Such stocks are American Eagle Outfitters (AEO - Free Report) , Abercrombie & Fitch (ANF - Free Report) , Cardinal Health (CAH - Free Report) and Runway Growth Finance Corp. (RWAY - Free Report) , which carry a Zacks Rank #1 (Strong Buy) or 2 (Buy) and have a Growth Score of A or B, a combination that offers the best opportunities in the growth investing space. You can see the complete list of today’s Zacks Rank #1 stocks here.
American Eagle Outfitters is a specialty retailer of casual apparel, accessories, and footwear for men and women. American Eagle Outfitters, currently, has a Zacks Rank #1 and a Growth Score of A.
The Zacks Consensus Estimate for its current-year earnings has moved up 7.3% over the past 60 days. AEO’s expected earnings growth rate for the current year is 36.1%.
Abercrombie & Fitch operates as a specialty retailer of premium, high-quality casual apparel for men, women and kids. Abercrombie & Fitch, currently, has a Zacks Rank #2 and a Growth Score of A.
The Zacks Consensus Estimate for its current-year earnings has moved up 1.6% over the past 60 days. ANF’s expected earnings growth rate for the current year is 1,672%.
Cardinal Health is a nationwide drug distributor and provider of services to pharmacies, healthcare providers and manufacturers. Cardinal Health, currently, has a Zacks Rank #2 and a Growth Score of A.
The Zacks Consensus Estimate for its current-year earnings has moved up 2.6% over the past 60 days. CAH’s expected earnings growth rate for the current year is 17.8%.
Runway Growth Finance is an externally managed business development company. Runway Growth Finance, currently, has a Zacks Rank #2 and a Growth Score of A.
The Zacks Consensus Estimate for its current-year earnings has moved up 4.2% over the past 60 days. RWAY’s expected earnings growth rate for the current year is 34.9%.