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5 Top Stocks to Snap Up in the New Bull Market

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Tirthankar Chakraborty
·5 min read
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It’s been a topsy-turvy ride for equities so far this year. Wall Street took a beating in March in the wake of government-imposed lockdowns, with the broader S&P 500 plunging 34% through Mar 23 from an all-time closing high of 3,386.15 achieved on Feb 19.

 

However, the bull market is now back and major benchmarks are poised to make it to fresh highs soon. To put things into perspective, the S&P 500 has now regained most of the losses incurred during the 33-day bear market. What’s more, the broader index is trading just 5.5% below its peak.

 

The Dow Jones Industrial Average recently breezed past the coveted 26,000 mark, while the teach-laden Nasdaq topped its previous all-time high in intra-day trade on Jun 5.

 

The stock market has got its mojo back as the economy is showing signs of rapid recovery from the coronavirus crisis. May’s stunning jobs report has already set the stage for a V-shaped economic recovery, which many economists had earlier doubted.

 

America regained 2.5 million jobs last month, in contrast to economists’ expectations of job losses of 7.25 million. Similarly, the unemployment rate came in at 13.3%, whereas economists anticipated the jobless rate at 19% versus April's 14.7%.

 

The Bureau of Labor Statistics confirmed that scores of people who had temporarily lost jobs amid the pandemic have returned to work. Employment rebounded at restaurants, construction sites, retail outlets and manufacturing units.

 

The economy’s rebound prospects bolstered after manufacturers showed signs of revival in May along with the service side of the economy.

 

Meanwhile, the breathtaking stock market rebound suggests that many market pundits are betting that the stimulus measures from the government and Fed will continue to help the economy go from strength to strength.

 

The government had approved more than a trillion-dollar relief plan that will directly benefit American consumers, especially small business houses. It will also help the struggling U.S. airline industry, which took a serious beating due to travel restrictions and cancellations.

 

The Fed, by the way, has trimmed borrowing costs and pumped billions of dollars into the banking system to sustain the credit flow. Policy makers unanimously agreed to trim benchmark federal funds rate a full percentage point to a range of zero to 0.25%.

 

Last but not the least, a steady slide in the U.S. dollar should get some credit for the stock market comeback. The ICE U.S. Dollar Index touched a three-year high in mid-March amid the pandemic. But now the index has fallen 5.9% from its peak and is just up 0.6% on a year-to-date basis. Notably, a weaker dollar is always encouraging for U.S. equities since it makes exports of American products cheaper to foreign buyers.

 

5 Best Stocks to Buy for the Brand New Bull Market

 

Given the aforesaid positives, the discussion on Wall Street has now shifted from whether the markets will retest the lows set on Mar 23 to what stock investors should be buying in the brand new bull market. We have thus selected five stocks that are positioned to capitalize on such positive developments and gain in the near future. These stocks also flaunt a Zacks Rank #1 (Strong Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.

 

Big Lots, Inc. BIG operates as a retailer in the United States. The company offers products under various merchandising categories. The Zacks Consensus Estimate for its current-year earnings has risen 48% over the past 60 days. The company’s expected earnings growth rate for the current quarter and year is 51% and 21%, respectively.

 

Donnelley Financial Solutions, Inc. DFIN operates as a risk and compliance solutions company. The Zacks Consensus Estimate for its current-year earnings has moved up 30.4% over the past 60 days. The company’s expected earnings growth rate for the next quarter and current year is 276.9% and 30.3%, respectively.

 

Great Lakes Dredge & Dock Corporation GLDD provides dredging services in the United States. The Zacks Consensus Estimate for its current-year earnings has climbed 23.3% over the past 60 days. The company’s expected earnings growth rate for the next quarter and current year is 21.4% and 23.3%, respectively.

 

The Hain Celestial Group, Inc. HAIN manufactures, markets, distributes, and sells organic and natural products. The Zacks Consensus Estimate for its current-year earnings has moved 8.2% north over the past 60 days. The company’s expected earnings growth rate for the next quarter and current year is 112.5% and 19.7%, respectively.

 

Murphy USA Inc. MUSA engages in the marketing of retail motor fuel products and convenience merchandise. The Zacks Consensus Estimate for its current-year earnings has advanced 46.7% over the past 60 days. The company’s expected earnings growth rate for the current year is 68.3%.

 

5 Stocks Set to Double

 

Each was hand-picked by a Zacks expert as the #1 favorite stock to gain +100% or more in 2020. Each comes from a different sector and has unique qualities and catalysts that could fuel exceptional growth.

 

Most of the stocks in this report are flying under Wall Street radar, which provides a great opportunity to get in on the ground floor.

 

Today, See These 5 Potential Home Runs >>


Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report
 
The Hain Celestial Group, Inc. (HAIN) : Free Stock Analysis Report
 
Big Lots, Inc. (BIG) : Free Stock Analysis Report
 
Great Lakes Dredge Dock Corporation (GLDD) : Free Stock Analysis Report
 
Murphy USA Inc. (MUSA) : Free Stock Analysis Report
 
Donnelley Financial Solutions Inc. (DFIN) : Free Stock Analysis Report
 
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