For Immediate Release
Chicago, IL – March 23, 2017 – 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 Castle Brands Inc. (NYSEMKT: ROX – Free Report ), Compañía Cervecerías Unidas S.A. (NYSE: CCU – Free Report ), Ambev S.A. (NYSE: ABEV – Free Report ) and Tsingtao Brewery Company Limited (OTCMKTS: TSGTY – Free Report ).
Today, Zacks is promoting its ''Buy'' stock recommendations. Get #1Stock of the Day pick for free .
Here are highlights from Wednesday’s Analyst Blog:
Ride Out Market Volatility with These 4 Beverage Stocks
CBOE Volatility Index (VIX), which measures investor perception of the market’s risk, saw a steep rise on Tuesday, escalating almost 10%. Major U.S. indices were also under tremendous pressure in yesterday’s trading session, due to a meaningful pullback in financials. The benchmark S&P 500 lost 1.24%, thereby breaking its 109-day streak of not losing 1% or more on a single day. The Dow and the Nasdaq also lost 1.14% and 1.83%, respectively.
Behind this volatility are growing concerns over economic disappointments from the Trump administration. Meanwhile, Federal Reserve’s relative conservative rate guidance has kept the financial stocks in check.
Importantly, blue chip companies were mostly down with few exceptions. The consumer staples sector in particular mitigated the downtrend to some extent. A key player in the space, Coca-Cola, rose 0.8% to $42.50, turning out to be the best-performing Dow component. Pepsi also lent support to the space, inching up 0.56%.
Given this widespread uncertainty, investors are wondering where to park their money. They can go for safer stocks considering that other economic indicators are coming in positive.
Favorable Economic Data
Consumer Confidence, a key determinant of the economy’s health, improved significantly in February, reaching its highest level since Jul 2001. According to the recent Conference Board data, the Consumer Confidence Index rose to 114.8 last month from January’s revised reading of 111.6. This indicates that consumers have given Trump’s revolutionary ideas the thumbs up.
Spiraling consumer confidence, an improving job scenario and rising wages are indicators of a stronger economy. Naturally, investing in consumer staples stocks is safer because of their defensive nature. In fact, these stocks have the potential to counter macroeconomic headwinds and seem quite reliable and attractive.
Within the consumer staples sector, Beverage-Alcoholic needs special mention, as it falls within the top 19% of the Zacks Industry Rank. The industry grew 9.2% in the last three months, faring a lot better than the 4.8% growth of the broader market (S&P 500).
This Beverage-Alcoholic industry has lower beta of 0.69 - less than 1 - ensuring less volatility.
4 Prominent Picks
It goes without saying that the Consumer Staples sector projects itself as a lucrative investment hub amid the current economic scenario. Here we have highlighted four beverage stocks that are ready to ride on the confidence exuded by the economy. These have a favorable combination of a Zacks Rank #1 (Strong Buy) or 2 (Buy) with lower market risks.
Castle Brands Inc. (NYSEMKT:ROX – Free Report ) develops, markets, imports and sells beverage alcohol products in the U.S. and other countries.
The stock climbed 68.1%, outperforming the Beverage-Alcoholic industry. The stock sports a Zacks Rank #2 and has a market beta of 0.61.
Castle Brands is expected to witness 150% growth in earnings per share this year.
Compañía Cervecerías Unidas S.A. (NYSE:CCU – Free Report ) operates as a beverage company principally in Chile, Argentina, Bolivia, Colombia, Paraguay, and Uruguay.
The stock carries a Zacks Rank #2 and has a market beta of 0.47. Compañía Cervecerías climbed 21.3% in the last three months, outperforming the Beverage-Alcoholic industry. You can see the complete list of today’s Zacks #1 Rank stocks here .
Ambev S.A. (NYSE:ABEV – Free Report ), through its subsidiaries, produces, distributes and sells beer, draft beer, soft drinks, other non-alcoholic beverages, malt and food in the Americas.
Ambev carries a Zacks Rank #2 and advanced 15.2% in the last three months, faring better than the Zacks categorized Beverage-Alcoholic industry. It also has a lower market beta of 0.69 and 3–5 year expected EPS growth rate of 7.23%.
Tsingtao Brewery Company Limited (OTCMKTS:TSGTY – Free Report ), together with its subsidiaries, engages in the production, distribution, wholesale, and retail sale of beer products primarily in the People's Republic of China.
The stock soared 23.4% in the last three months, outperforming the Beverage-Alcoholic industry. It also holds a Zacks Rank #2 and has a market beta of 0.64. Its 3–5 year expected EPS growth rate is pegged at 7.76%.
5 Trades Could Profit "Big-League" from Trump Policies
If the stocks above spark your interest, wait until you look into companies primed to make substantial gains from Washington's changing course.
Today Zacks reveals 5 tickers that could benefit from new trends like streamlined drug approvals, tariffs, lower taxes, higher interest rates, and spending surges in defense and infrastructure. See these buy recommendations now >>
Today, Zacks is promoting its ''Buy'' stock recommendations. Get #1 Stock of the Day pick for free .
About Zacks Equity Research
Zacks Equity Research provides the best of quantitative and qualitative analysis to help investors know what stocks to buy and which to sell for the long-term.
Continuous coverage is provided for a universe of 1,150 publicly traded stocks. Our analysts are organized by industry which gives them keen insights to developments that affect company profits and stock performance. Recommendations and target prices are six-month time horizons.
Strong Stocks that Should Be in the News
Many are little publicized and fly under the Wall Street radar. They're virtually unknown to the general public. Yet today's 220 Zacks Rank #1 "Strong Buys" were generated by the stock-picking system that has nearly tripled the market from 1988 through 2015. Its average gain has been a stellar +26% per year. See these high-potential stocks free >>.
Get the full Report on CCU - FREE
Get the full Report on ROX - FREE
Get the full Report on ABEV - FREE
Get the full Report on TSGTY - FREE
Follow us on Twitter: https://twitter.com/zacksresearch
Join us on Facebook: https://www.facebook.com/home.php#/pages/Zacks-Investment-Research/57553657748?ref=ts
Zacks Investment Research is under common control with affiliated entities (including a broker-dealer and an investment adviser), which may engage in transactions involving the foregoing securities for the clients of such affiliates.
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/performance for 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
Castle Brands, Inc. (ROX): Free Stock Analysis Report
Compania Cervecerias Unidas, S.A. (CCU): Free Stock Analysis Report
Ambev S.A. (ABEV): Free Stock Analysis Report
Tsingtao Brewery Co. (TSGTY): Free Stock Analysis Report
To read this article on Zacks.com click here.