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.
3 Funds to Buy on Solid Rebound in Consumer Confidence
Read MoreHide Full Article
Americans are regaining their confidence in the economy amid persisting concerns over inflation and rate cuts. Consumer confidence took a hit in the past three months but encouraging economic data has made Americans optimistic about the present and future business conditions.
The Conference Board reported on May 28 that the consumer confidence index raced to 102 in May from an upwardly revised 95.7 in April and was also way above the consensus estimate of a decline to 95.9 from the initially reported reading of 97.
The Present Situation Index, which measures consumers' assessment of current business and labor market conditions, increased to 143.1 in May from 140.6 in April. Additionally, the Expectations Index, which reflects consumers' short-term outlook for income, business and labor market conditions, jumped to 74.6 in May from 68.8 in April.
Signs of cooling inflation in April were mainly behind consumers regaining faith in the nation’s economy. The consumer price index fell for the first time in April after increasing in the first three months of the year.
Although inflation is still quite higher than the Federal Reserve’s 2% target, consumers are optimistic once again that the central bank could soon start interest rate cuts.
3 Best Choices
Given this scenario, we have selected three mutual funds with significant exposure to the retail and discretionary sectors. The funds carry either a Zacks Mutual Fund Rank #1 (Strong Buy) or 2 (Buy) and are poised to gain from the above factors. Moreover, these funds have encouraging three and five-year returns. Additionally, the minimum initial investment is within $5000.
We expect these funds to outperform their peers in the future. Remember, the goal of the Zacks Mutual Fund Rank is to guide investors in identifying potential winners and losers. Unlike most fund-rating systems, the Zacks Mutual Fund Rank is not just focused on past performance but also the likely future success of the fund.
The question here is: why should investors consider mutual funds? Reduced transaction costs and diversification of portfolio without several commission charges that are associated with stock purchases are primarily why one should be parking money in mutual funds (read more: Mutual Funds: Advantages, Disadvantages, and How They Make Investors Money).
Fidelity Select Leisure Portfolio (FDLSX - Free Report) fund invests the majority of its assets in common stocks of companies principally engaged in the design, production, or distribution of goods or services in the leisure industries. FDLSX uses the fundamental analysis of factors such as each issuer's financial condition and industry position, as well as market and economic conditions, for its decisions.
Fidelity Select Leisure & Entertainment fund has a history of positive total returns for more than 10 years. Specifically, FDLSX has returned nearly 11.9% over the past five-year period. FDLSX has a Zacks Mutual Fund Rank #1 and an annual expense ratio of 0.73%.
To see how this fund performed compared to its category, and other 1 and 2 Ranked Mutual Funds, please click here.
Fidelity Select Retailing Portfolio (FSRPX - Free Report) fund aims for capital appreciation. FSRPX invests a large portion of its assets in common stocks of companies engaged in merchandising finished goods and services, primarily to individual consumers.
Fidelity Select Retailing Portfolio fund has a history of positive total returns for more than 10 years. Specifically, FSRPX has returned nearly 11% over the past five-year period. Fidelity Select Retailing Portfolio fund has a Zacks Mutual Fund Rank #1 and an annual expense ratio of 0.72%.
To see how this fund performed compared to its category, and other 1 and 2 Ranked Mutual Funds, please click here.
Fidelity Select Consumer Staples Portfolio (FDFAX - Free Report) fund aims for capital growth. FDFAX invests the majority of its assets in securities of companies primarily engaged in manufacturing, marketing, or distribution of consumer staples products. Fidelity Select Consumer Staples Portfolio fund invests in both U.S. and non-U.S. issuers.
Fidelity Select Consumer Staples Portfolio has a history of positive total returns for more than 10 years. Specifically, FDFAX has returned 7.9% over the past five years. FDFAX has a Zacks Mutual Fund Rank #2 and an annual expense ratio of 0.72%.
To see how this fund performed compared to its category, and other 1 and 2 Ranked Mutual Funds, please click here.
Want key mutual fund info delivered straight to your inbox?
Zacks' free Fund Newsletter will brief you on top news and analysis, as well as top-performing mutual funds, each week. Get it free >>
See More Zacks Research for These Tickers
Normally $25 each - click below to receive one report FREE:
Image: Bigstock
3 Funds to Buy on Solid Rebound in Consumer Confidence
Americans are regaining their confidence in the economy amid persisting concerns over inflation and rate cuts. Consumer confidence took a hit in the past three months but encouraging economic data has made Americans optimistic about the present and future business conditions.
The Conference Board reported on May 28 that the consumer confidence index raced to 102 in May from an upwardly revised 95.7 in April and was also way above the consensus estimate of a decline to 95.9 from the initially reported reading of 97.
The Present Situation Index, which measures consumers' assessment of current business and labor market conditions, increased to 143.1 in May from 140.6 in April. Additionally, the Expectations Index, which reflects consumers' short-term outlook for income, business and labor market conditions, jumped to 74.6 in May from 68.8 in April.
Signs of cooling inflation in April were mainly behind consumers regaining faith in the nation’s economy. The consumer price index fell for the first time in April after increasing in the first three months of the year.
Although inflation is still quite higher than the Federal Reserve’s 2% target, consumers are optimistic once again that the central bank could soon start interest rate cuts.
3 Best Choices
Given this scenario, we have selected three mutual funds with significant exposure to the retail and discretionary sectors. The funds carry either a Zacks Mutual Fund Rank #1 (Strong Buy) or 2 (Buy) and are poised to gain from the above factors. Moreover, these funds have encouraging three and five-year returns. Additionally, the minimum initial investment is within $5000.
We expect these funds to outperform their peers in the future. Remember, the goal of the Zacks Mutual Fund Rank is to guide investors in identifying potential winners and losers. Unlike most fund-rating systems, the Zacks Mutual Fund Rank is not just focused on past performance but also the likely future success of the fund.
The question here is: why should investors consider mutual funds? Reduced transaction costs and diversification of portfolio without several commission charges that are associated with stock purchases are primarily why one should be parking money in mutual funds (read more: Mutual Funds: Advantages, Disadvantages, and How They Make Investors Money).
Fidelity Select Leisure Portfolio (FDLSX - Free Report) fund invests the majority of its assets in common stocks of companies principally engaged in the design, production, or distribution of goods or services in the leisure industries. FDLSX uses the fundamental analysis of factors such as each issuer's financial condition and industry position, as well as market and economic conditions, for its decisions.
Fidelity Select Leisure & Entertainment fund has a history of positive total returns for more than 10 years. Specifically, FDLSX has returned nearly 11.9% over the past five-year period. FDLSX has a Zacks Mutual Fund Rank #1 and an annual expense ratio of 0.73%.
To see how this fund performed compared to its category, and other 1 and 2 Ranked Mutual Funds, please click here.
Fidelity Select Retailing Portfolio (FSRPX - Free Report) fund aims for capital appreciation. FSRPX invests a large portion of its assets in common stocks of companies engaged in merchandising finished goods and services, primarily to individual consumers.
Fidelity Select Retailing Portfolio fund has a history of positive total returns for more than 10 years. Specifically, FSRPX has returned nearly 11% over the past five-year period. Fidelity Select Retailing Portfolio fund has a Zacks Mutual Fund Rank #1 and an annual expense ratio of 0.72%.
To see how this fund performed compared to its category, and other 1 and 2 Ranked Mutual Funds, please click here.
Fidelity Select Consumer Staples Portfolio (FDFAX - Free Report) fund aims for capital growth. FDFAX invests the majority of its assets in securities of companies primarily engaged in manufacturing, marketing, or distribution of consumer staples products. Fidelity Select Consumer Staples Portfolio fund invests in both U.S. and non-U.S. issuers.
Fidelity Select Consumer Staples Portfolio has a history of positive total returns for more than 10 years. Specifically, FDFAX has returned 7.9% over the past five years. FDFAX has a Zacks Mutual Fund Rank #2 and an annual expense ratio of 0.72%.
To see how this fund performed compared to its category, and other 1 and 2 Ranked Mutual Funds, please click here.
Want key mutual fund info delivered straight to your inbox?
Zacks' free Fund Newsletter will brief you on top news and analysis, as well as top-performing mutual funds, each week. Get it free >>