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S&P 500 and Nasdaq in Green, Dow to Follow Suit: 5 Top Picks
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Wall Street's astonishing rebound from the coronavirus-induced bear market is gaining momentum by the day. On Jun 8, the S&P 500 became the second major stock index to reenter positive territory year to date. Notably, the Nasdaq Composite was the first major index to become positive year to date on May 7. Both the S&P 500 and the Nasdaq Composite entered the bear market on Mar 12.
Major Indexes Continue Dream Run
The three major stock indexes recorded their recent lows on Mar 23, after entering the bear market owing to coronavirus-led turmoil. SInce then, the market was on a sharp northbound trend, which helped all three indexes to exit the bear market on Apr 14.
On Jun 8, the S&P 500 closed at 3,232.39, marking its sixth positive finish in seven days. The benchmark index is now positive by 0.1% year to date. The index is currently 4.8% away from its all-time high registered on Feb 19. It rallied an impressive 47.5% during Mar 24 to Jun 8.
The Nasdaq Composite ended at 9,924.74, reflecting its sixth positive close in seven days. Jun 8 marked a fresh all-time high closing since Feb 19. Moreover, during intraday trading, the tech-laden index recorded a fresh all-time high of 9,927.13. The index is up 10.6% year to date. It rallied a remarkable 49.6% during Mar 24 to Jun 8.
The Dow finished at 27,572.44, its sixth straight positive close for the first time since Sep 13. The blue-chip index still needs to rally 3.4% to become green year to date. Moreover, the 30-stock index is 6.8% below its all-time high posted on Feb 12. It rallied a fabulous 51.8% during Mar 24 to Jun 8.
Market Rally Likely to Remain Firm
The U.S. economy is reopening systematically since late May. All 50 states have opened up in one form or the other after nearly two months of lockdowns to control the spread of the deadly virus. As the economy is reopening, various economic data are stabilizing.
Per the nonfarm payroll data of May released by the Department of Labor, the economy added historically high 2.5 million jobs. According to a large section of economists and financial experts, it looks that the coronavirus-induced devastation may be less severe than previously thought and consequently, recovery will be quicker-than-expected.
In addition to job data, growing consumer confidence and higher expectations for the next six months, better-than-expected ISM manufacturing and services index, and a solid increase in housing and vehicle sales clearly showed strong pent-up demand.
Moreover, business activities will increase steadily as more people are visiting restaurants, bars and shopping malls, and companies are opening their stores. Moreover, freight trucking activities are gathering pace and airlines are adding to their fleet.
Our Top Picks
At this stage, it will be prudent to invest in stocks of these three indexes with a favorable Zacks Rank. We narrowed down our search to five such stocks that popped more than 10% in the past month with strong growth potential and robust earnings estimate revisions in the last 7 to 30 days. Each of our picks carries either a Zacks Rank #1 (Strong Buy) or 2 (Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.
The chart below shows the price performance of our five picks in the past month.
H&R Block Inc. (HRB - Free Report) provides assisted income tax return preparation, do-it-yourself (DIY) tax, and virtual tax preparation services and products to the general public primarily in the United States, Canada and Australia. The Zacks Rank #1 company has an expected earnings growth rate of more than 100% for the current year (ending April 2021). The Zacks Consensus Estimate for the current year has improved by 9.2% over the past 7 days. The stock has rallied 23% in the past month.
eBay Inc. (EBAY - Free Report) is one of the largest online retailers in the world. It operates the marketplace and classifieds platforms that connect buyers and sellers worldwide enabling users to list, buy, sell and pay for items through various online, mobile and offline channels. The Zacks Rank #1 company has an expected earnings growth rate of 10.6% for the current year. The Zacks Consensus Estimate for the current year has improved by 0.6% over the past 7 days. The stock has advanced 15.6% in the past month.
Lowe's Companies Inc. (LOW - Free Report) is one of the world’s leading home improvement retailers, offering services to homeowners, renters and commercial business customers. The Zacks Rank #2 company has an expected earnings growth rate of 15.2% for the current year (ending January 2021). The Zacks Consensus Estimate for current-year earnings has improved by 1.5% over the past 7 days. The stock has appreciated 15.4% in the past month.
NextEra Energy Inc. (NEE - Free Report) generates, transmits, distributes, and sells electric power to retail and wholesale customers in North America. The company generates electricity through wind, solar, nuclear and natural gas-fired facilities. The Zacks Rank #2 company has an expected earnings growth rate of 8.2% for the current year. The Zacks Consensus Estimate for current-year earnings has improved by 0.1% over the past 30 days. The stock has surged 14.5% in the past month.
Tractor Supply Co. (TSCO - Free Report) is the largest retail farm and ranch store chain in the United States. It focuses on recreational farmers and ranchers as well as tradesmen and small businesses. The Zacks Rank #2 company has an expected earnings growth rate of 17.1% for the current year. The Zacks Consensus Estimate for current-year earnings has improved by 0.1% over the past 30 days. The stock has gained 12.1% in the past month.
Looking for Stocks with Skyrocketing Upside?
Zacks has just released a Special Report on the booming investment opportunities of legal marijuana.
Ignited by new referendums and legislation, this industry is expected to blast from an already robust $6.7 billion to $20.2 billion in 2021. Early investors stand to make a killing, but you have to be ready to act and know just where to look.
Image: Bigstock
S&P 500 and Nasdaq in Green, Dow to Follow Suit: 5 Top Picks
Wall Street's astonishing rebound from the coronavirus-induced bear market is gaining momentum by the day. On Jun 8, the S&P 500 became the second major stock index to reenter positive territory year to date. Notably, the Nasdaq Composite was the first major index to become positive year to date on May 7. Both the S&P 500 and the Nasdaq Composite entered the bear market on Mar 12.
Major Indexes Continue Dream Run
The three major stock indexes recorded their recent lows on Mar 23, after entering the bear market owing to coronavirus-led turmoil. SInce then, the market was on a sharp northbound trend, which helped all three indexes to exit the bear market on Apr 14.
On Jun 8, the S&P 500 closed at 3,232.39, marking its sixth positive finish in seven days. The benchmark index is now positive by 0.1% year to date. The index is currently 4.8% away from its all-time high registered on Feb 19. It rallied an impressive 47.5% during Mar 24 to Jun 8.
The Nasdaq Composite ended at 9,924.74, reflecting its sixth positive close in seven days. Jun 8 marked a fresh all-time high closing since Feb 19. Moreover, during intraday trading, the tech-laden index recorded a fresh all-time high of 9,927.13. The index is up 10.6% year to date. It rallied a remarkable 49.6% during Mar 24 to Jun 8.
The Dow finished at 27,572.44, its sixth straight positive close for the first time since Sep 13. The blue-chip index still needs to rally 3.4% to become green year to date. Moreover, the 30-stock index is 6.8% below its all-time high posted on Feb 12. It rallied a fabulous 51.8% during Mar 24 to Jun 8.
Market Rally Likely to Remain Firm
The U.S. economy is reopening systematically since late May. All 50 states have opened up in one form or the other after nearly two months of lockdowns to control the spread of the deadly virus. As the economy is reopening, various economic data are stabilizing.
Per the nonfarm payroll data of May released by the Department of Labor, the economy added historically high 2.5 million jobs. According to a large section of economists and financial experts, it looks that the coronavirus-induced devastation may be less severe than previously thought and consequently, recovery will be quicker-than-expected.
In addition to job data, growing consumer confidence and higher expectations for the next six months, better-than-expected ISM manufacturing and services index, and a solid increase in housing and vehicle sales clearly showed strong pent-up demand.
Moreover, business activities will increase steadily as more people are visiting restaurants, bars and shopping malls, and companies are opening their stores. Moreover, freight trucking activities are gathering pace and airlines are adding to their fleet.
Our Top Picks
At this stage, it will be prudent to invest in stocks of these three indexes with a favorable Zacks Rank. We narrowed down our search to five such stocks that popped more than 10% in the past month with strong growth potential and robust earnings estimate revisions in the last 7 to 30 days. Each of our picks carries either a Zacks Rank #1 (Strong Buy) or 2 (Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.
The chart below shows the price performance of our five picks in the past month.
H&R Block Inc. (HRB - Free Report) provides assisted income tax return preparation, do-it-yourself (DIY) tax, and virtual tax preparation services and products to the general public primarily in the United States, Canada and Australia. The Zacks Rank #1 company has an expected earnings growth rate of more than 100% for the current year (ending April 2021). The Zacks Consensus Estimate for the current year has improved by 9.2% over the past 7 days. The stock has rallied 23% in the past month.
eBay Inc. (EBAY - Free Report) is one of the largest online retailers in the world. It operates the marketplace and classifieds platforms that connect buyers and sellers worldwide enabling users to list, buy, sell and pay for items through various online, mobile and offline channels. The Zacks Rank #1 company has an expected earnings growth rate of 10.6% for the current year. The Zacks Consensus Estimate for the current year has improved by 0.6% over the past 7 days. The stock has advanced 15.6% in the past month.
Lowe's Companies Inc. (LOW - Free Report) is one of the world’s leading home improvement retailers, offering services to homeowners, renters and commercial business customers. The Zacks Rank #2 company has an expected earnings growth rate of 15.2% for the current year (ending January 2021). The Zacks Consensus Estimate for current-year earnings has improved by 1.5% over the past 7 days. The stock has appreciated 15.4% in the past month.
NextEra Energy Inc. (NEE - Free Report) generates, transmits, distributes, and sells electric power to retail and wholesale customers in North America. The company generates electricity through wind, solar, nuclear and natural gas-fired facilities. The Zacks Rank #2 company has an expected earnings growth rate of 8.2% for the current year. The Zacks Consensus Estimate for current-year earnings has improved by 0.1% over the past 30 days. The stock has surged 14.5% in the past month.
Tractor Supply Co. (TSCO - Free Report) is the largest retail farm and ranch store chain in the United States. It focuses on recreational farmers and ranchers as well as tradesmen and small businesses. The Zacks Rank #2 company has an expected earnings growth rate of 17.1% for the current year. The Zacks Consensus Estimate for current-year earnings has improved by 0.1% over the past 30 days. The stock has gained 12.1% in the past month.
Looking for Stocks with Skyrocketing Upside?
Zacks has just released a Special Report on the booming investment opportunities of legal marijuana.
Ignited by new referendums and legislation, this industry is expected to blast from an already robust $6.7 billion to $20.2 billion in 2021. Early investors stand to make a killing, but you have to be ready to act and know just where to look.
See the pot trades we're targeting>>