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Skip the Market Blip, Ride Next Rally With 4 Buy-Rated Picks
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Major U.S. indices, namely the Dow Jones Industrial, the S&P 500 and the Nasdaq witnessed a sharp sell-off yesterday amid worries of a second wave of coronavirus infection and the Federal Reserves’ gloomy GDP and unemployment outlook.
All the three indices fell more than 5%, marking the worst slump since Mar 16, 2020, per Dow Jones data. Since Jun 8, the Dow Jones Industrial, the S&P 500 and the Nasdaq have declined 8.9%, 7.1% and 4.4%, respectively.
Markedly, coronavirus cases registered a spike in states like Texas, California and Florida, post reopening of the economy. To date, the pandemic has infected more than $2 million people in the United States with the death toll rising to 113,820, per John Hopkins university data.
Moreover, the Fed now expects GDP to shrink 6.5% in 2020 and the unemployment rate to scale to 9.3%, much higher than 3.5% at the end of 2019.
Markets Likely to Rebound on Fed Support, Reopening of Economy
The sharp sell-off somewhat cooled off the overheated markets, which are now expected to witness recovery. All three index futures rose on Jun 12.
Notably, the central bank vowed to keep the benchmark short-term rates near zero level through 2022 and will continue to buy bonds to maintain low borrowing rates. Further, Fed chairman Jerome Powell stated that the central bank’s primary focus is to revive job growth.
Notably, the latest job report released on Jun 5 showed an addition of 2.5-million in payrolls in May. Moreover, the unemployment rate slid from 14.7% to 13.3%. Additionally, 1.5 million laid-off workers applied for unemployment sops last week, which marked the 10th straight week of decline.
Further, reopening of the economy is already benefiting coronavirus-hit sectors like airlines, retailers, hotels and restaurants, theme parks and cruise line operators. Even in the event of another COVID-19 wave, treasury secretary Steven Mnuchin believes, the United States shouldn’t shut down the economy again.
Market Mess Breeds Buy the Dips Opportunity
Here we pick four stocks that have declined in the past week, which we see as promising buying options given their strong fundamentals, prospects and optimism over a swift U.S. economic revival.
The Zacks proprietary methodology suggests stocks with such a perfect mix of elements offer solid investment opportunities.
Notably, each of these stocks has a market cap of more than $5 billion and has outperformed the S&P 500 composite on a year-to-date basis.
Year-to-Date Performance
Top Bets
Fortinet (FTNT - Free Report) dominates the Unified Threat Management (UTM) space, which is one of the fastest-evolving segments in the network security space. This Zacks Rank #1 company is benefiting from rising cyber-attack risks that are propelling demand for its FortiMail platform.
Fortinet has a VGM Score of B. The Zacks Consensus Estimate for 2020 earnings stands at $2.81 per share, having moved 2.2% north over the past 30 days.
Fortinet has a market cap of $22.25 billion. Shares have been down 3.7% in the past week.
Quest Diagnostics (DGX - Free Report) received emergency use authorization (EUA) for its self-collection COVID-19 test kit from the FDA in May. The $15.29-billion worth company intends to make more than half-a-million test kits to be available by June-end. Notably, Quest Diagnostics launched its SARS-CoV-2 RT-PCR test service on Mar 9 and already performed nearly 1 million tests across the United States, per the company’s Apr 22 update.
Quest Diagnostics currently has a Zacks Rank of 2 and a VGM Score of A. The consensus mark for its 2020 earnings has climbed 27.7% to $5.62 per share over the past 30 days. Shares have slipped 4.3% in the past week.
Okta (OKTA - Free Report) is benefiting from robust demand for identity management services globally, triggered by coronavirus-induced work-from-home wave. Notably, Okta Identity Cloud platform offers a suite of applications that manage and secure identities. The company has a market cap of $22.61 billion.
Okta currently carries a Zacks Rank #2 and a VGM Score of B. The Zacks Consensus Estimate for fiscal 2021 is pegged at a loss of 19 cents per share, having narrowed from a loss of 35 cents in the past 30 days. Shares have decreased 7.1% in the past week.
Repligen Corporation (RGEN - Free Report) is progressing well with its filtration and chromatography product franchisees. Based on the strength of these two businesses, this Zacks #2 Ranked company reiterated its revenue guidance for the full year.
Repligen has a VGM Score of B and a market cap of $6.28 billion. The consensus mark for its fiscal 2020 earnings stands at $1.13 per share, having moved 1.8% north over the past 30 days. Shares have been down 5.6% in the past week.
Biggest Tech Breakthrough in a Generation
Be among the early investors in the new type of device that experts say could impact society as much as the discovery of electricity. Current technology will soon be outdated and replaced by these new devices. In the process, it’s expected to create 22 million jobs and generate $12.3 trillion in activity.
A select few stocks could skyrocket the most as rollout accelerates for this new tech. Early investors could see gains similar to buying Microsoft in the 1990s. Zacks’ just-released special report reveals 8 stocks to watch. The report is only available for a limited time.
Image: Bigstock
Skip the Market Blip, Ride Next Rally With 4 Buy-Rated Picks
Major U.S. indices, namely the Dow Jones Industrial, the S&P 500 and the Nasdaq witnessed a sharp sell-off yesterday amid worries of a second wave of coronavirus infection and the Federal Reserves’ gloomy GDP and unemployment outlook.
All the three indices fell more than 5%, marking the worst slump since Mar 16, 2020, per Dow Jones data. Since Jun 8, the Dow Jones Industrial, the S&P 500 and the Nasdaq have declined 8.9%, 7.1% and 4.4%, respectively.
Markedly, coronavirus cases registered a spike in states like Texas, California and Florida, post reopening of the economy. To date, the pandemic has infected more than $2 million people in the United States with the death toll rising to 113,820, per John Hopkins university data.
Moreover, the Fed now expects GDP to shrink 6.5% in 2020 and the unemployment rate to scale to 9.3%, much higher than 3.5% at the end of 2019.
Markets Likely to Rebound on Fed Support, Reopening of Economy
The sharp sell-off somewhat cooled off the overheated markets, which are now expected to witness recovery. All three index futures rose on Jun 12.
Notably, the central bank vowed to keep the benchmark short-term rates near zero level through 2022 and will continue to buy bonds to maintain low borrowing rates. Further, Fed chairman Jerome Powell stated that the central bank’s primary focus is to revive job growth.
Notably, the latest job report released on Jun 5 showed an addition of 2.5-million in payrolls in May. Moreover, the unemployment rate slid from 14.7% to 13.3%. Additionally, 1.5 million laid-off workers applied for unemployment sops last week, which marked the 10th straight week of decline.
Further, reopening of the economy is already benefiting coronavirus-hit sectors like airlines, retailers, hotels and restaurants, theme parks and cruise line operators. Even in the event of another COVID-19 wave, treasury secretary Steven Mnuchin believes, the United States shouldn’t shut down the economy again.
Market Mess Breeds Buy the Dips Opportunity
Here we pick four stocks that have declined in the past week, which we see as promising buying options given their strong fundamentals, prospects and optimism over a swift U.S. economic revival.
Moreover, these stocks carry a favorable combination of a VGM Score of A or B and a Zacks Rank #1 (Strong Buy) or 2 (Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.
The Zacks proprietary methodology suggests stocks with such a perfect mix of elements offer solid investment opportunities.
Notably, each of these stocks has a market cap of more than $5 billion and has outperformed the S&P 500 composite on a year-to-date basis.
Year-to-Date Performance
Top Bets
Fortinet (FTNT - Free Report) dominates the Unified Threat Management (UTM) space, which is one of the fastest-evolving segments in the network security space. This Zacks Rank #1 company is benefiting from rising cyber-attack risks that are propelling demand for its FortiMail platform.
Fortinet has a VGM Score of B. The Zacks Consensus Estimate for 2020 earnings stands at $2.81 per share, having moved 2.2% north over the past 30 days.
Fortinet has a market cap of $22.25 billion. Shares have been down 3.7% in the past week.
Quest Diagnostics (DGX - Free Report) received emergency use authorization (EUA) for its self-collection COVID-19 test kit from the FDA in May. The $15.29-billion worth company intends to make more than half-a-million test kits to be available by June-end. Notably, Quest Diagnostics launched its SARS-CoV-2 RT-PCR test service on Mar 9 and already performed nearly 1 million tests across the United States, per the company’s Apr 22 update.
Quest Diagnostics currently has a Zacks Rank of 2 and a VGM Score of A. The consensus mark for its 2020 earnings has climbed 27.7% to $5.62 per share over the past 30 days. Shares have slipped 4.3% in the past week.
Okta (OKTA - Free Report) is benefiting from robust demand for identity management services globally, triggered by coronavirus-induced work-from-home wave. Notably, Okta Identity Cloud platform offers a suite of applications that manage and secure identities. The company has a market cap of $22.61 billion.
Okta currently carries a Zacks Rank #2 and a VGM Score of B. The Zacks Consensus Estimate for fiscal 2021 is pegged at a loss of 19 cents per share, having narrowed from a loss of 35 cents in the past 30 days. Shares have decreased 7.1% in the past week.
Repligen Corporation (RGEN - Free Report) is progressing well with its filtration and chromatography product franchisees. Based on the strength of these two businesses, this Zacks #2 Ranked company reiterated its revenue guidance for the full year.
Repligen has a VGM Score of B and a market cap of $6.28 billion. The consensus mark for its fiscal 2020 earnings stands at $1.13 per share, having moved 1.8% north over the past 30 days. Shares have been down 5.6% in the past week.
Biggest Tech Breakthrough in a Generation
Be among the early investors in the new type of device that experts say could impact society as much as the discovery of electricity. Current technology will soon be outdated and replaced by these new devices. In the process, it’s expected to create 22 million jobs and generate $12.3 trillion in activity.
A select few stocks could skyrocket the most as rollout accelerates for this new tech. Early investors could see gains similar to buying Microsoft in the 1990s. Zacks’ just-released special report reveals 8 stocks to watch. The report is only available for a limited time.
See 8 breakthrough stocks now>>