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The Zacks Analyst Blog Highlights: JPM, JNJ, CVX and PG
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For Immediate Release
Chicago, IL –January 17, 2019 – Zacks.com announces the list of stocks featured in the Analyst Blog. Every day the Zacks Equity Research analysts discuss the latest news and events impacting stocks and the financial markets. Stocks recently featured in the blog include: JPMorgan Chase & Co. (JPM - Free Report) , Johnson & Johnson (JNJ - Free Report) , Chevron Corporation (CVX - Free Report) and The Procter & Gamble Company (PG - Free Report) .
Here are highlights from Thursday’s Analyst Blog:
4 Blue-Chip Stocks to Win Big on Phase-One Trade Deal
The United States and China have signed the much-anticipated phase-one trade deal. While Washington has pledged to cut some tariff on Chinese imports, Beijing has agreed to purchase more goods and services from America.
Although most of the details on the deal were known, the phase-one accord has lent the much-needed impetus to keep the nation’s longest economic expansion on track. Wall Street rallied following the first phase of the U.S.-China trade pact, with Dow Jones Industrial Average and S&P 500 closing at record highs.
More on the Phase-One Trade Deal
Per the deal details released by the office of the U.S. Trade Representative, Beijing has agreed to boost purchase of products and services from Washington by at least $200 billion in the next two years. For comparison purposes, the accord considered 2017 as the baseline.
China has pledged manufacturing purchases from the United States of an additional $77.7 billion in two years’ time. In 2020 and 2021, Beijing will buy an additional $32.9 billion and $44.8 billion of manufacturing products, respectively. Thus, the second-largest economy’s total imports of manufactured goods from America will total no less than $120.0 billion in 2020 and $131.9 billion in 2021. China’s manufacturing purchases are likely to comprise electrical equipment, pharmaceutical products, industrial machinery, vehicles, optical & medical instruments, aircraft, iron & steel, hardwood lumber, solar-grade polysilicon, and other goods.
As compared to a baseline of $9.1 billion in 2017, China has agreed to purchase additional energy products of at least $52.4 billion over two years. The deal also included $32 billion of additional U.S. agriculture products purchases over the time frame. From Washington, Beijing has decided to buy services of an additional $37.9 billion over the two years’ time.
Included in the phase-one accord, Washington will halve the tariff rate levied on Sep 1 on a list of Chinese goods, worth $120 billion, to 7.5%. Moreover, the United States indefinitely called off the Dec 15 implementation of 15% tariffs on $160 billion worth of China goods — comprising toys, laptops, cell phones and clothing. Beijing also suspended the retaliatory tariffs of 25% on American autos that were set to go into effect on the same day. However, to leverage negotiations for the second phase in 2020, the United States has kept its 25% duty on $250 billion worth of Chinese goods in place.
The agreement will also address some of the complaints made by America about the practices of intellectual property.
Favorable Labor Market
Although data from the Labor Department showed that the pace of hiring slowed last December, most of the economists believe that the job growth data was satisfactory enough to keep the nation’s longest economic expansion on track.
Moreover, the country’s jobless rate was at a 50-year low of 3.5% in December, per the closely-watched monthly employment report of the Labor Department.
Earnings to Bounce Back in 2020
After a disappointing 2019, we expect a rebound in earnings this year.
For the December quarter of 2019, S&P 500 is likely to have seen a year-over-year earnings decline of 3.2%. Notably, in the first and third quarter of 2019, the S&P 500 witnessed an earnings decline of 0.1% and 1.7%, respectively. In the second quarter of 2019, the index saw a marginal improvement of 0.6%. Thus, more-than-a-year-long trade spat that prompted the slowdown in the global economy has primarily hurt the companies’ overall business.
However, the historic phase-one deal has renewed investors’ hopes and spurred Wall Street. The corporate earnings picture is likely to recover in 2020 and we are expecting year-over-year earnings growth in the first, second, third and fourth quarter of 2020 to be much healthier at 3.8%, 3.6%, 7.7% and 11.2%, respectively.
Stocks to Make Merry
With Dow and S&P 500 closing at record highs on phase-one trade deal, the upward trend is likely to continue as a favorable labor market and expectations for healthy corporate earnings picture for 2020 have been acting as catalysts. Thus, to outdo market returns as well as take advantage of the aforesaid factors, we have used the Zacks Stock Screener to narrow down on blue-chip stocks, sporting either a Zacks Rank #1 (Strong Buy) or 2 (Buy). These companies also have a strong dividend yield, ensuring a regular income stream for investors. You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
Headquartered in New York, JPMorgan Chase & Co. is a leading financial services company. The Zacks Rank #2 stock beat the Zacks Consensus Estimate for earnings in the prior four quarters, the average positive earnings surprise being 9.6%. Over the past 30 days, the stock has witnessed positive earnings estimate revisions for 2020 and 2021. Moreover, the company has a dividend yield of 2.6%, compared with the S&P 500’s 1.7%.
Based in New Brunswick, NJ, Johnson & Johnson is primarily involved in manufacturing and selling healthcare products. The #2 Ranked company is likely to see earnings growth of 5% in 2020. The company’s current dividend yield is 2.6%.
Chevron Corporation, headquartered in San Ramon, CA, is a leading integrated energy player. In 2020, the Zacks #2 Ranked company is likely to see earnings growth of 5.1%. The company’s current dividend yield is 4.1%.
Headquartered in Cincinnati, OH, The Procter & Gamble Company provides branded consumer packaged goods to consumers. The #2 Ranked company is likely to see earnings growth of 9.3% in fiscal 2020. The company’s current dividend yield is 2.4%.
Free: Zacks’ Single Best Stock Set to Double
Today you are invited to download our latest Special Report that reveals 5 stocks with the most potential to gain +100% or more in 2020. From those 5, Zacks Director of Research, Sheraz Mian hand-picks one to have the most explosive upside of all.
This pioneering tech ticker had soared to all-time highs and then subsided to a price that is irresistible. Now a pending acquisition could super-charge the company’s drive past competitors in the development of true Artificial Intelligence. The earlier you get in to this stock, the greater your potential gain.
Past performance is no guarantee of future results. Inherent in any investment is the potential for loss. This material is being provided for informational purposes only and nothing herein constitutes investment, legal, accounting or tax advice, or a recommendation to buy, sell or hold a security. No recommendation or advice is being given as to whether any investment is suitable for a particular investor. It should not be assumed that any investments in securities, companies, sectors or markets identified and described were or will be profitable. All information is current as of the date of herein and is subject to change without notice. Any views or opinions expressed may not reflect those of the firm as a whole. Zacks Investment Research does not engage in investment banking, market making or asset management activities of any securities. These returns are from hypothetical portfolios consisting of stocks with Zacks Rank = 1 that were rebalanced monthly with zero transaction costs. These are not the returns of actual portfolios of stocks. The S&P 500 is an unmanaged index. Visit http://www.zacks.com/performance for information about the performance numbers displayed in this press release.
Past performance is no guarantee of future results. Inherent in any investment is the potential for loss. This material is being provided for informational purposes only and nothing herein constitutes investment, legal, accounting or tax advice, or a recommendation to buy, sell or hold a security. No recommendation or advice is being given as to whether any investment is suitable for a particular investor. It should not be assumed that any investments in securities, companies, sectors or markets identified and described were or will be profitable. All information is current as of the date of herein and is subject to change without notice. Any views or opinions expressed may not reflect those of the firm as a whole. Zacks Investment Research does not engage in investment banking, market making or asset management activities of any securities. These returns are from hypothetical portfolios consisting of stocks with Zacks Rank = 1 that were rebalanced monthly with zero transaction costs. These are not the returns of actual portfolios of stocks. The S&P 500 is an unmanaged index. Visit http://www.zacks.com/performance for information about the performance numbers displayed in this press release.
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The Zacks Analyst Blog Highlights: JPM, JNJ, CVX and PG
For Immediate Release
Chicago, IL –January 17, 2019 – Zacks.com announces the list of stocks featured in the Analyst Blog. Every day the Zacks Equity Research analysts discuss the latest news and events impacting stocks and the financial markets. Stocks recently featured in the blog include: JPMorgan Chase & Co. (JPM - Free Report) , Johnson & Johnson (JNJ - Free Report) , Chevron Corporation (CVX - Free Report) and The Procter & Gamble Company (PG - Free Report) .
Here are highlights from Thursday’s Analyst Blog:
4 Blue-Chip Stocks to Win Big on Phase-One Trade Deal
The United States and China have signed the much-anticipated phase-one trade deal. While Washington has pledged to cut some tariff on Chinese imports, Beijing has agreed to purchase more goods and services from America.
Although most of the details on the deal were known, the phase-one accord has lent the much-needed impetus to keep the nation’s longest economic expansion on track. Wall Street rallied following the first phase of the U.S.-China trade pact, with Dow Jones Industrial Average and S&P 500 closing at record highs.
More on the Phase-One Trade Deal
Per the deal details released by the office of the U.S. Trade Representative, Beijing has agreed to boost purchase of products and services from Washington by at least $200 billion in the next two years. For comparison purposes, the accord considered 2017 as the baseline.
China has pledged manufacturing purchases from the United States of an additional $77.7 billion in two years’ time. In 2020 and 2021, Beijing will buy an additional $32.9 billion and $44.8 billion of manufacturing products, respectively. Thus, the second-largest economy’s total imports of manufactured goods from America will total no less than $120.0 billion in 2020 and $131.9 billion in 2021. China’s manufacturing purchases are likely to comprise electrical equipment, pharmaceutical products, industrial machinery, vehicles, optical & medical instruments, aircraft, iron & steel, hardwood lumber, solar-grade polysilicon, and other goods.
As compared to a baseline of $9.1 billion in 2017, China has agreed to purchase additional energy products of at least $52.4 billion over two years. The deal also included $32 billion of additional U.S. agriculture products purchases over the time frame. From Washington, Beijing has decided to buy services of an additional $37.9 billion over the two years’ time.
Included in the phase-one accord, Washington will halve the tariff rate levied on Sep 1 on a list of Chinese goods, worth $120 billion, to 7.5%. Moreover, the United States indefinitely called off the Dec 15 implementation of 15% tariffs on $160 billion worth of China goods — comprising toys, laptops, cell phones and clothing. Beijing also suspended the retaliatory tariffs of 25% on American autos that were set to go into effect on the same day. However, to leverage negotiations for the second phase in 2020, the United States has kept its 25% duty on $250 billion worth of Chinese goods in place.
The agreement will also address some of the complaints made by America about the practices of intellectual property.
Favorable Labor Market
Although data from the Labor Department showed that the pace of hiring slowed last December, most of the economists believe that the job growth data was satisfactory enough to keep the nation’s longest economic expansion on track.
Moreover, the country’s jobless rate was at a 50-year low of 3.5% in December, per the closely-watched monthly employment report of the Labor Department.
Earnings to Bounce Back in 2020
After a disappointing 2019, we expect a rebound in earnings this year.
For the December quarter of 2019, S&P 500 is likely to have seen a year-over-year earnings decline of 3.2%. Notably, in the first and third quarter of 2019, the S&P 500 witnessed an earnings decline of 0.1% and 1.7%, respectively. In the second quarter of 2019, the index saw a marginal improvement of 0.6%. Thus, more-than-a-year-long trade spat that prompted the slowdown in the global economy has primarily hurt the companies’ overall business.
However, the historic phase-one deal has renewed investors’ hopes and spurred Wall Street. The corporate earnings picture is likely to recover in 2020 and we are expecting year-over-year earnings growth in the first, second, third and fourth quarter of 2020 to be much healthier at 3.8%, 3.6%, 7.7% and 11.2%, respectively.
Stocks to Make Merry
With Dow and S&P 500 closing at record highs on phase-one trade deal, the upward trend is likely to continue as a favorable labor market and expectations for healthy corporate earnings picture for 2020 have been acting as catalysts. Thus, to outdo market returns as well as take advantage of the aforesaid factors, we have used the Zacks Stock Screener to narrow down on blue-chip stocks, sporting either a Zacks Rank #1 (Strong Buy) or 2 (Buy). These companies also have a strong dividend yield, ensuring a regular income stream for investors. You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
Headquartered in New York, JPMorgan Chase & Co. is a leading financial services company. The Zacks Rank #2 stock beat the Zacks Consensus Estimate for earnings in the prior four quarters, the average positive earnings surprise being 9.6%. Over the past 30 days, the stock has witnessed positive earnings estimate revisions for 2020 and 2021. Moreover, the company has a dividend yield of 2.6%, compared with the S&P 500’s 1.7%.
Based in New Brunswick, NJ, Johnson & Johnson is primarily involved in manufacturing and selling healthcare products. The #2 Ranked company is likely to see earnings growth of 5% in 2020. The company’s current dividend yield is 2.6%.
Chevron Corporation, headquartered in San Ramon, CA, is a leading integrated energy player. In 2020, the Zacks #2 Ranked company is likely to see earnings growth of 5.1%. The company’s current dividend yield is 4.1%.
Headquartered in Cincinnati, OH, The Procter & Gamble Company provides branded consumer packaged goods to consumers. The #2 Ranked company is likely to see earnings growth of 9.3% in fiscal 2020. The company’s current dividend yield is 2.4%.
Free: Zacks’ Single Best Stock Set to Double
Today you are invited to download our latest Special Report that reveals 5 stocks with the most potential to gain +100% or more in 2020. From those 5, Zacks Director of Research, Sheraz Mian hand-picks one to have the most explosive upside of all.
This pioneering tech ticker had soared to all-time highs and then subsided to a price that is irresistible. Now a pending acquisition could super-charge the company’s drive past competitors in the development of true Artificial Intelligence. The earlier you get in to this stock, the greater your potential gain.
See 5 Stocks Set to Double>>
Media Contact
Zacks Investment Research
800-767-3771 ext. 9339
support@zacks.com
http://www.zacks.com
Past performance is no guarantee of future results. Inherent in any investment is the potential for loss. This material is being provided for informational purposes only and nothing herein constitutes investment, legal, accounting or tax advice, or a recommendation to buy, sell or hold a security. No recommendation or advice is being given as to whether any investment is suitable for a particular investor. It should not be assumed that any investments in securities, companies, sectors or markets identified and described were or will be profitable. All information is current as of the date of herein and is subject to change without notice. Any views or opinions expressed may not reflect those of the firm as a whole. Zacks Investment Research does not engage in investment banking, market making or asset management activities of any securities. These returns are from hypothetical portfolios consisting of stocks with Zacks Rank = 1 that were rebalanced monthly with zero transaction costs. These are not the returns of actual portfolios of stocks. The S&P 500 is an unmanaged index. Visit http://www.zacks.com/performance for information about the performance numbers displayed in this press release.
Media Contact
Zacks Investment Research
800-767-3771 ext. 9339
support@zacks.com
http://www.zacks.com
Past performance is no guarantee of future results. Inherent in any investment is the potential for loss. This material is being provided for informational purposes only and nothing herein constitutes investment, legal, accounting or tax advice, or a recommendation to buy, sell or hold a security. No recommendation or advice is being given as to whether any investment is suitable for a particular investor. It should not be assumed that any investments in securities, companies, sectors or markets identified and described were or will be profitable. All information is current as of the date of herein and is subject to change without notice. Any views or opinions expressed may not reflect those of the firm as a whole. Zacks Investment Research does not engage in investment banking, market making or asset management activities of any securities. These returns are from hypothetical portfolios consisting of stocks with Zacks Rank = 1 that were rebalanced monthly with zero transaction costs. These are not the returns of actual portfolios of stocks. The S&P 500 is an unmanaged index. Visit http://www.zacks.com/performance for information about the performance numbers displayed in this press release.