For Immediate Release
Chicago, IL – July 2, 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: Enbridge Inc. ENB, GoDaddy Inc. GDDY, Dropbox, Inc. DBX and Ericsson ERIC.
Here are highlights from Wednesday’s Analyst Blog:
4 Stocks to Snap Up from Wall Street's Best Quarter in Decades
Wall Street ended the June quarter with record gains in more than two decades despite the coronavirus pandemic dealing a huge blow to global business activities. Only three months back, investors were fretting over the stock market loss in value of roughly 35% by major indexes in less than six weeks, thanks to the outbreak.
Notably, the rally has slowed down lately since the market is bracing for the second wave of coronavirus. Precisely, although the market is likely to be choppy through the second half of 2020, there will be opportunities to make money if well-researched investment strategies are adopted.
Best Performance in 2 Decades
The S&P 500 recently finished the June quarter with almost 20% gain, marking the best quarter since 1998. With the biggest percentage gain in more than two decades, the index rose 515.70 points to close at 3100.29 on Jun 30. The Dow Jones Industrial Average advanced 18% in the second quarter to record the best quarter since 1987. The tech-laden Nasdaq has performed even better, improving 31% in the quarter.
The unprecedented stimulus package worth $1.6 trillion from the Federal Reserve and Congress has partly backed the rally of the indexes. The increase in trading among individual investors has also attributed to the stock market’s record gain. Notably, availability of more time, since people are mostly working from home owing to the pandemic, along with zero commission trading has lured newbies into the stock market.
Choppy Trading Ahead
Coming to the second half of 2020, most traders foresee choppiness since things are mostly uncertain in the stock market, at least for now. Two of the factors that are making investors difficult to gauge the future course of the stock market are the November presidential election and the pandemic. Notably, most investors believe that the coronavirus woes are going to outweigh the presidential election, at least till October 2020, unless we get an effective coronavirus vaccine before that.
With widespread uncertainties ahead, it would be wise to consider rebalancing portfolios every few weeks. Also, most analysts are of the view that it has been difficult to value a particular stock since many companies are not providing earnings guidance.
Stocks to Buy
Now, for selecting stocks we need to consider the sectors that have outperformed the S&P 500 index in the second quarter. The top two sectors that surpassed the index are Energy and Technology. In the June quarter, the sectors gained 32.3% and 27.6%, respectively, as compared to the index’s 20% rise.
For picking stocks, we will also consider low beta securities (beta <1) since the market is likely to be extremely volatile through the second half of this year. Beta indicates the volatility of a particular stock with respect to the market. In other words, beta measures the extent of stock price movement relative to the market.
Since it is not an easy job to select stocks considering these parameters, we have employed our proprietary Stock Screener. We have shortlisted four stocks with beta ranging from 0 to 1 and with a Zacks Rank #1 (Strong Buy) or 2 (Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.
Headquartered in Calgary, Alberta, Enbridge Inc. is a leading midstream energy infrastructure provider in North America and belongs to the Energy sector. The stock, with a Zacks Rank #2, generates stable fee-based revenues since it has a giant network of pipeline assets, transporting roughly 25% of crude volumes being produced in North America.
Based in Scottsdale, AZ, GoDaddy Inc. is an Internet domain registrar and web hosting company that sells e-business related software and services. The Zacks #2 Ranked stock belongs to the Technology sector and has an estimated earnings growth of 26.8% in 2020.
Dropbox, Inc., headquartered in San Francisco, CA, allows users to use its platform so that they can store and share files. The stock, with a Zacks Rank of 1, belongs to theTechnology sector and is likely to see earnings growth of 50% in 2020.
Ericssonis a leading provider of communication technology solutions. In 2020 and 2021, the #2 Ranked stock is likely to see earnings growth of 363% and 29%, respectively.
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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.
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Enbridge Inc (ENB) : Free Stock Analysis Report
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