For Immediate Release
Chicago, IL – June 17, 2020 – Zacks.com announces the list of stocks featured in the Analyst Blog. Every day the Zacks Equity Research analysts discuss the latest news and events impacting stocks and the financial markets. Stocks recently featured in the blog include: Boxlight Corp. BOXL, ChannelAdvisor Corp. ECOM, Vertex Pharmaceuticals Inc. VRTX, Murphy USA Inc. MUSA and Sprouts Farmers Market, Inc. SFM.
Here are highlights from Tuesday’s Analyst Blog:
Fed’s Bond-Buying Plan Eases Second-Wave Fears: 5 Picks
A selloff on Wall Street turned into a rally on Jun 15, with major benchmarks finishing in the green after the Federal Reserve took initiatives to keep credit flowing to corporate houses amid the coronavirus outbreak-led economic upheaval.
The broader S&P 500 ended almost 1% higher after spending most of the trading session in the negative territory, and has now gained considerably from its March lows. The index bounced back from last week’s sharpest weekly fall since the period ended Mar 20, per Dow Jones Market Data.
The Fed said that it would expand the scope of its $750-billion emergency corporate debt loan facility by buying a broad and diversified portfolio of debt issued by individual corporates. In that way, more money will flow into the hands of big businesses at a time when the financial system is going through high stress following the sharp decline in economic activities from the pandemic.
The Fed’s bond-buying program, also known as the Secondary Market Corporate Credit Facility, will buy newly-issued debts in the primary market, as well as debts that are being traded in the secondary market. The program, by the way, will begin purchases of up to $250 billion in individual corporate bonds from eligible issuers. And such individual bond-buying is expected to begin on Jun 16, according to New York Fed.
The central bank has already taken in up to $5.5 billion through its ETF purchases so far. Moreover, its Primary Market Corporate Credit Facility that aims at buying debts directly from firms is not yet operational and can take in roughly $500 billion of corporate debt.
Nonetheless, the Fed’s current move to ease path for corporate borrowing during the pandemic lifted investors’ sentiment and fueled optimism around rapid economic recovery. What’s more, the Fed’s program overshadowed concerns related to a resurgence of COVID-19 cases, both in China and the United States.
Beijing shut down its largest wholesale food market amid a sudden spike in coronavirus cases. Nearly 49 new coronavirus cases were confirmed recently, tracing to a wholesale market known for supplying meat and vegetables.
China on Jun 13 registered the highest uptick in coronavirus cases since mid-April, according to Bloomberg News citing National Health Commission data.
In the United States, a record number of new coronavirus cases have been reported in Alaska, Arizona, Arkansas, California, Florida, North Carolina, Oklahoma and South Carolina in the past three days. Many believe that the efforts to reopen the economy and phased restart of business activities may have led to the increase in infection cases.
5 Solid Choices
With the Fed announcing that it will buy corporate bonds to help an economy battered by the pandemic, the stock market has found a new lease of life.
Hence, it’s judicious to invest in stocks that can make the most of the positive sentiment in the broader market and scale upward in the near future. These stocks flaunt a Zacks Rank #1 (Strong Buy) and a Growth Score of A. You can see the complete list of today’s Zacks #1 Rank stocks here.
Boxlight Corp. is an education technology company that develops, sells, and services interactive classroom solutions. The Zacks Consensus Estimate for its current-year earnings has risen 33.3% over the past 60 days. The company’s expected earnings growth rate for the current and next quarter is 54.5% and 100%, respectively.
ChannelAdvisor Corp. provides software-as-a-service solutions in the United States. The Zacks Consensus Estimate for its current-year earnings has moved up 40.8% over the past 60 days. The company’s expected earnings growth rate for the current quarter and year is 220% and 72.5%, respectively.
Vertex Pharmaceuticals Inc. engages in developing and commercializing therapies for treating cystic fibrosis. The Zacks Consensus Estimate for its current-year earnings has climbed 17.2% over the past 60 days. The company’s expected earnings growth rate for the current quarter and year is 69.1% and 67.1%, respectively.
Murphy USA Inc. engages in the marketing of retail motor fuel products and convenience merchandise. The Zacks Consensus Estimate for its current-year earnings has moved 37.3% north over the past 60 days. The company’s expected earnings growth rate for the current quarter and year is 214.9% and 68.3%, respectively.
Sprouts Farmers Market, Inc. is a healthy grocery store that provides fresh, natural, and organic food products in the United States. The Zacks Consensus Estimate for its current-year earnings has moved 26.5% north over the past 60 days. The company’s expected earnings growth rate for the current quarter and year is 23.3% and 33.6%, respectively.
Just Released: Zacks’ 7 Best Stocks for Today
Experts extracted 7 stocks from the list of 220 Zacks Rank #1 Strong Buys that has beaten the market more than 2X over with a stunning average gain of +24.1% per year.
These 7 were selected because of their superior potential for immediate breakout.
See these time-sensitive tickers now >>
Zacks Investment Research
800-767-3771 ext. 9339
Past performance is no guarantee of future results. Inherent in any investment is the potential for loss. This material is being provided for informational purposes only and nothing herein constitutes investment, legal, accounting or tax advice, or a recommendation to buy, sell or hold a security. No recommendation or advice is being given as to whether any investment is suitable for a particular investor. It should not be assumed that any investments in securities, companies, sectors or markets identified and described were or will be profitable. All information is current as of the date of herein and is subject to change without notice. Any views or opinions expressed may not reflect those of the firm as a whole. Zacks Investment Research does not engage in investment banking, market making or asset management activities of any securities. These returns are from hypothetical portfolios consisting of stocks with Zacks Rank = 1 that were rebalanced monthly with zero transaction costs. These are not the returns of actual portfolios of stocks. The S&P 500 is an unmanaged index. Visit https://www.zacks.com/performancefor information about the performance numbers displayed in this press release.
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
Vertex Pharmaceuticals Incorporated (VRTX) : Free Stock Analysis Report
Murphy USA Inc. (MUSA) : Free Stock Analysis Report
Sprouts Farmers Market, Inc. (SFM) : Free Stock Analysis Report
ChannelAdvisor Corporation (ECOM) : Free Stock Analysis Report
Boxlight Corporation (BOXL) : Free Stock Analysis Report
To read this article on Zacks.com click here.
Zacks Investment Research