2019 Starts Off in the Green
The January episode of the Zacks Ultimate Strategy Session will be available for viewing no later than Wednesday, January 9. Kevin Matras, Tracey Ryniec, Ryan McQueeney and Kevin Cook cover the investment landscape from several angles in this popular event.
Don’t miss your chance to hear:
• Tracey and Ryan Agree to Disagree whether Apple is “doomed” going forward given the decline in iPhone sales and lack of visionary leadership
• Kevin M. answers your questions ranging from current market conditions, general investing wisdom, usage of the Zacks Rank or any resources of Zacks.com and more in Zacks Mailbag
• Kevin C. and Ryan choose one portfolio to give feedback for improvement. No need to send us personal information such as dollar value of holdings. Simply email us with all of the tickers you own.
• And much more
Remember, we need your input. Please submit your questions for Zacks Mailbag and Portfolio Makeover by tomorrow morning, January 3. Email now to mailbag@zacks.com.
Then log on to Zacks.com and bookmark this page.
The New Year kicked off on Wednesday with another volatile yet ultimately positive session, along with the first really big story of 2019.
Investors have been buying dips ever since the steep Christmas Eve selloff, which is something we weren’t seeing throughout most of December. That resilience continued today. The Dow recovered from a plunge of approximately 400 points this morning to finish with a gain of 0.08% (or about 18 points) to 23,346.24.
The other major indices followed suit after soft opens. The NASDAQ finished with a gain of 0.46% to 6665.94 and the S&P advanced 0.13% to 2510.03.
2018 is finally over! It turned out to be much more disappointing than we could have ever imagined. We were still expecting a positive performance as late as September, but the selloffs in October and December spoiled everything. The S&P and Dow each dropped more than 5%, while the NASDAQ slipped approximately 4%.
It might have been even worse, but good old St. Nick decided to finally show up on the day after Christmas. In fact, we’re still in a Santa Claus Rally since it historically encompasses the first two trading days of January along with the last five of December. But that could be put to the test tomorrow.
It didn’t take long for 2019 to see its first major story, as the once unstoppable Apple lowered its Q1 guidance amid weak iPhone sales in China. It now expects revenue of $84 billion instead of $89 billion to $93 billion as previously anticipated. Shares are down more than 7% afterhours as of this writing.
The decline of the FAANGs was one of the biggest stories of 2018. These names seemed bulletproof for years as they led the bull market higher and higher… and none more so than Apple. Therefore, the big story tomorrow will be how much this surprising news impacts the market.
Today's Portfolio Highlights:
Zacks Top 10 Stocks: It's the first trading day of the New Year, so it's time for a fresh Top 10 stocks for 2019! Last year, this service returned more than 12% through December 19th, while the S&P dropped 8.2%. Sheraz Mian expects more volatility in the market this year, though the economy should remain strong. He has picked 10 stocks that offer a blend of defense and thematic offense. The picks in this portfolio are expected to be held all year, though the editor could change any position if the outlook turns negative. Discover the 2019 list in the complete commentary.
TAZR Trader: The CRISPR company with the best risk-reward prospects right now is Editas Medicine (EDIT), which this portfolio took a loss on in October when the correction really started taking hold. But now, the stock is a Zacks Rank #1 (Strong Buy) and is at a great entry point near a $1 billion market cap, especially after conquering the competition in the CRISPR patent wars. Kevin bought a starter position in EDIT on Wednesday and would add if the stock re-tests its recent lows. The company recently enjoyed a favorable nod from the FDA to proceed with clinical trials for its blindness treatment, in partnership with Allergan. Read the complete commentary for a lot more on this new addition.
Stocks Under $10: On a day when the market struggled to finish on positive ground, WideOpenWest (WOW) jumped more than 5%. It wasn’t that long ago when this smaller cable operator was at $12 and, therefore, out of this portfolio’s parameters. But these days it’s around $7.50 after the correction, so Brian Bolan decided to pick it up. He likes its three straight quarters of positive earnings surprises, as well as its status as a Zacks Rank #2 (Buy) and its solid Zacks Style Scores. The editor wouldn’t be surprised to see WOW climb back from its recent dip, but he also thinks it could be an attractive buyout candidate for one of the bigger players. Read the complete commentary for more on this new addition.
All the Best,
Jim Giaquinto
P.S. Kevin Cook has just released a brand-new special report exclusively for Zacks Ultimate members. It's called Century of Biology: 7 Biotech Stocks to Buy Now.
The Biotechnology space is producing ground-breaking treatments for diseases like cancer and muscular dystrophy. In this new report, Cook reveals 7 stocks positioned for strong upsides in 2019 and beyond. In fact, research indicates these companies may give investors the chance to grow their wealth faster than any other stocks in the market.
The recent correction has created some very attractive entry points, so now is a perfect time to check these stocks out.
Click here to download >>
Recommendations from Zacks' Private Portfolios:
Believe it or not, this article is not available on the Zacks.com website. The commentary is a partial overview of the daily activity from Zacks' private recommendation services. If you would like to follow our Buy and Sell signals in real time, we've made a special arrangement for readers of this website. Starting today you can see all the recommendations from all of Zacks' portfolios absolutely free for 7 days. Our services cover everything from value stocks and momentum trades to insider buying and positive earnings surprises (which we've predicted with an astonishing 80%+ accuracy). Click here to "test drive" Zacks Ultimate for FREE >>
Zacks Investment Research
