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Wall Street to Get Its Mojo Back: Here're the Big Winners

Tirthankar Chakraborty
·5 mins read

As the coronavirus pandemic raged through the U.S. economy, nearly 22 million Americans have filed for jobless claims so far this month, erasing a decade of job additions. The spread of the virus has disrupted supply chains, and compelled businesses to shut down operations and lay off workers. Protective measures including lockdowns and stay-at-home orders have impacted a series of restaurants, hotels and other businesses.

With the surge in unemployment, there will certainly be a decline in consumer outlays, which may further hamper economic growth. As a result, distinguished economists are contemplating a recession in the near term, which doesn’t bode well for the stock market as well.

However, President Trump recently issued a new set of guidelines to the states aimed at easing social distancing measures and reopening parts of the country to jump-start economic growth. This will provide the much-needed shot in the arm for the stock market.

The White House has given all the 50 governors outlines regarding a three-phase approach to gradually restore parts of public life, including schools, malls and restaurants. The first stage allows reopening of businesses and places of worship provided social distancing and sanitization measures are strictly maintained. Non-essential travel should be minimized and employers should encourage telework whenever possible.

During the second phase, schools and youth activities may recommence with “moderate physical distancing protocols.” Inpatient elective surgeries may also resume under phase two. By the way, in both these phases, elderly people with serious health conditions or pre-existing diseases should continue to stay at home.

Under phase three, restrictions will be significantly relaxed, with visits to senior care facilities and hospitals allowed to begin again. Moreover, people may begin visiting restaurants, bars, movie theaters, sporting venues and places of worship while maintaining “limited physical distancing protocols.”

Notably, each phase of the plan requires a 14-day period of “downward trajectory” of coronavirus cases in order to move on to the next phase. Vice President Mike Pence, in the meanwhile, said that the guidelines to lift restrictions could be implemented state or country-wise.

But the positive news doesn’t end at Trump’s initiative to reopen parts of the United States. It’s quite evident that for the markets to bounce back, the development of a coronavirus vaccine or treatment is of utmost importance. In fact, Trump signed a $8.3-billion spending package aimed at helping companies that are involved in research and development of vaccines for the deadly virus as well as those that are aiming to prevent its rapid spread.

And investors are now undoubtedly drawing a modicum of hope amid progress toward a treatment for the coronavirus. University of Chicago Medicine researchers said that they have seen “rapid recoveries” among 125 COVID-19 patients taking Gilead Sciences Inc.’s GILD experimental drug remdesivir. The drug was consumed as part of a clinical trial. The result no doubt brought a bit of a euphoria among investors since there are no vaccines for the fatal illness at present (read more: 4

Top Biotech Stocks to Buy in the Time of Coronavirus).

5 of the Best Growth Stocks to Buy Right Away

Thanks to Trump’s plans to reopen U.S. states to Gilead’s coronavirus treatment, investors pin hopes on a Wall Street recovery. And with the broader market poised to gain in the near future, it seems prudent to narrow down on stocks with solid growth prospects. These stocks sport a Zacks Rank #1 (Strong Buy) along with Growth Score of A. You can see the complete list of today’s Zacks #1 Rank stocks here.

CURO Group Holdings Corp. CURO provides consumer finance to a range of underbanked consumers. The Zacks Consensus Estimate for its current-year earnings has moved up 6.4% over the past 60 days. The company’s expected earnings growth rate for the current quarter and year is 23.1% and 12%, respectively. In fact, the company’s projected earnings growth rate for the next year is 8.8%.

Enphase Energy, Inc. ENPH designs, develops, manufactures, and sells home energy solutions for the solar photovoltaic industry. The Zacks Consensus Estimate for its current-year earnings has moved up 18.8% over the past 60 days. The company’s expected earnings growth rate for the current quarter and year is 55.6% and 26.3%, respectively. In fact, the company’s projected earnings growth rate for the next year is 15.8%.

Regional Management Corp. RM provides various instalment loan products, primarily to customers with limited access to consumer credit. The Zacks Consensus Estimate for its current-year earnings has moved 1.5% north over the past 60 days. The company’s expected earnings growth rate for the current quarter and year is 22.9% and 5.8%, respectively. In fact, the company’s projected earnings growth rate for the next year is 15.2%.

eXp World Holdings, Inc. EXPI provides cloud-based real estate brokerage services. The Zacks Consensus Estimate for its current-year earnings has moved up more than 100% over the past 60 days. The company’s expected earnings growth rate for the current quarter and next year is 150% and 2,000%, respectively.

Gibraltar Industries, Inc. ROCK manufactures and distributes building products for the renewable energy, conservation, residential, industrial, and infrastructure markets. The Zacks Consensus Estimate for its current-year earnings has moved up 6% over the past 60 days. The company’s expected earnings growth rate for the current quarter and year is 12.3% and 16.7%, respectively. In fact, the company’s projected earnings growth rate for the next year is 7.3%.

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Click to get this free report Gilead Sciences, Inc. (GILD) : Free Stock Analysis Report Enphase Energy, Inc. (ENPH) : Free Stock Analysis Report Gibraltar Industries, Inc. (ROCK) : Free Stock Analysis Report Regional Management Corp. (RM) : Free Stock Analysis Report Exp World Holdings, Inc. (EXPI) : Free Stock Analysis Report CURO Group Holdings Corp. (CURO) : Free Stock Analysis Report To read this article on Zacks.com click here.