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The U.S. stock market moved higher on Nov 24 fueled by promising developments on the vaccine front. Notably, the Dow rallied 1.5% to close at a record high of 30,046.24 as positive news with regards to a COVID-19 vaccine will help in driving the much-needed economic recovery. Adding to the flurry of vaccine news, AstraZeneca PLC AZN announced in a press release that an interim analysis of clinical trials showed that its vaccine has resulted in an average efficacy of 70%.
Meanwhile, in a press release, Moderna, Inc. MRNA had stated that its vaccine candidate showed an efficacy rate of 94.5%. Moreover, Pfizer Inc. PFE and BioNTech SE BNTX recently announced in a press release that they would submit a request to the FDA for Emergency Use Authorization of their vaccine candidate, which was found to be 95% effective. The report also mentioned that this “will potentially enable use of the vaccine in high-risk populations in the U.S. by the middle to end of December 2020.” Following this development, U.S. officials also stated their plan to release 6.4 million doses of the vaccine nationwide as part of an initial distribution after the first vaccine is cleared for emergency use, as mentioned in a Reuters article.
Distribution and widespread usage of the vaccine will mean that gradually the economy will be able to open up completely. In fact, the economy has been witnessing a turnaround in recent months following the lockdown in the early part of the year. Reflective of this, there has been continuous expansion over the last few months in both manufacturing and service sector activities in the United States.
Notably, the Institute for Supply Management reported that the manufacturing purchasing manager’s index (“PMI”) expanded for the sixth consecutive month in October. Manufacturing PMI was reported at 59.3% compared to 55.4% in September. Meanwhile, the services PMI also expanded for the fifth successive month in October. Although the growth in the services PMI moderated in October compared to September, a reading of above 50 suggests an expansion in economic activity. The services PMI was reported at 56.6% in October compared to 57.8% reported in September.
5 Top Stocks to Invest in Now
The positive vaccine trials and request for emergency use authorization of the COVID-19 vaccine bode well for the U.S. economy. Coupled with that, continued expansion in manufacturing and service sectors also highlight the turnaround that the economy has been witnessing despite the challenges presented by the pandemic. Hence, it will be prudent now to invest in stocks with sound fundamentals which can make the most of this recovery going forward. Notably, we have selected five such stocks that carry a Zacks Rank #1 (Strong Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.
Altra Industrial Motion Corp. AIMC designs, produces and markets electromechanical power transmission motion control products in the United States. The Zacks Consensus Estimate for its current-year earnings increased 27.1% over the past 60 days. The company’s expected earnings growth rate for next year is 17.4%.
Deere & Company DE, along with its subsidiaries, manufactures and distributes various kinds of equipment in the United States, operating under the segments of agriculture and turf, construction and forestry, and financial services. The Zacks Consensus Estimate for its current-year earnings increased 4.3% over the past 60 days. The company’s expected earnings growth rate for next year is 38.4%.
EnPro Industries NPO designs, develops, manufactures and markets engineered industrial products in the United States. The Zacks Consensus Estimate for its current-year earnings increased 38.5% over the past 60 days. The company’s expected earnings growth rate for next year is 22.4%.
APi Group Corporation APG provides commercial life safety solutions and industrial specialty services in the United States, operating through the segments of safety services, specialty services and industrial services. The Zacks Consensus Estimate for its current-year earnings increased 11.8% over the past 60 days. The company’s expected earnings growth rate for next year is 26.3%.
TTEC Holdings, Inc. TTEC is a customer experience technology and services company which focuses on design, implementation, and delivery of transformative customer experience for various brands, in the United States. The Zacks Consensus Estimate for its current-year earnings increased 24.5% over the past 60 days. The company’s expected earnings growth rate for the current year is 58.7%.
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Deere & Company (DE) : Free Stock Analysis Report
AstraZeneca PLC (AZN) : Free Stock Analysis Report
Pfizer Inc. (PFE) : Free Stock Analysis Report
Moderna, Inc. (MRNA) : Free Stock Analysis Report
TeleTech Holdings, Inc. (TTEC) : Free Stock Analysis Report
EnPro Industries (NPO) : Free Stock Analysis Report
Altra Industrial Motion Corp. (AIMC) : Free Stock Analysis Report
BioNTech SE Sponsored ADR (BNTX) : Free Stock Analysis Report
APi Group Corporation (APG) : Free Stock Analysis Report
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