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The Zacks Analyst Blog Highlights: Exxon Mobil, Goldman Sachs, Bank of America, Lam Research Corp and Nucor Corp

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For Immediate Release

Chicago, IL – April 28, 2021 – 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: Exxon Mobil Corporation XOM, The Goldman Sachs Group Inc. GS, Bank of America Corporation BAC, Lam Research Corporation LRCX and Nucor Corporation NUE.

Here are highlights from Tuesday’s Analyst Blog:

Wall Street Soars in First 100 Days of New White House

Wall Street has witnessed a record-breaking rally during the first 100 days of Joe Biden's Presidency. On Apr 26, CNBC reported that the market's benchmark — the S&P 500 Index — has returned 24.1% during Biden's tenure, the highest in at least 75 years. Notably, the data was calculated from the close on election day to the close on day 100 of each presidency.

Positives in Biden's Tenure

It is noteworthy to say that Biden's 100 days in office were benefited by some major decisions taken much before his victory. The U.S. Congress had approved nearly $3 trillion of fiscal stimulus as coronavirus-aid before Biden took charge. The FDA had approved two COVID-19 vaccines.

Moreover, the Fed had reduced the benchmark interest rate to the lowest level of 0-0.25% in March 2020 and continued the $120 billion of bond buying per month to ensure adequate liquidity for the smooth functioning of the economy.

Additionally, in a massive development in August 2020, the central bank changed its practice to give more importance to unemployment over inflation. Fed chairman Jerome Powell reiterated that any inflation in 2021 will be transitory and that the existing benchmark interest rate will likely persist till 2023.

Finally, Wall Street's bull run has accelerated buoyed by  the Biden administration's $1.9 trillion fiscal stimulus that was injected in February. Per the new coronavirus-aid package, eligible U.S. citizens will receive a $1,400 check payment in addition to $1,400 for any dependent. Moreover, the extra amount in unemployment benefits of $300 a week will be available till Sep 6. The fresh stimulus significantly boosted consumer optimism.

Future Drivers

The FDA has approved three COVID-19 vaccines so far. The U.S. government has ramped up the nationwide COVID-19 vaccination on a priority basis. The speeding up of the process implies chances of a faster-than-expected reopening of the U.S. economy.

A series of recently released economic data like job market data, manufacturing and services index, vehicle sales and consumer satisfaction optimization indexes have clearly indicated that the U.S. economy is witnessing a strong recovery since the beginning of 2021. Furthermore, an estimated $1.5 - $1.8 trillion savings by Americans at the end of 2020 due to pandemic-related restrictions, will support strong pent-up demand.

Moreover, on Mar 31, President Joe Biden unveiled his $2.3 trillion infrastructure development plan that includes transport, drinking-water, broadband, manufacturing and construction infrastructure developments. Segments like basic materials, industrials and utilities will benefit immensely with more job creation for the economy.

Meanwhile, as of Apr 23, projections for total earnings of the S&P 500 companies in 2021 have jumped 27.5% year over year on 8.6% higher revenues. Moreover, projections for total earnings of these companies in 2022 are up 13.1% year over year on 6.3% higher revenues. Notably, total earnings of the same companies plummeted 13% year over year in 2020 on 1.8% lower revenues owing to the global outbreak of the deadly novel coronavirus.

Finally, according to several published reports, the U.S. economy is likely to grow by 6.5-7% in 2021, its highest rate in 33 years. On Apr 26, the Atlanta Fed's GDPNow tracker estimated that the U.S. GDP in the first quarter of 2021 will jump 8.2%.

Our Top Picks

We have narrowed down our search to five U.S. corporate bigwigs (market capital > 20 billion) as these companies have a well-established business model and powerful brand value. These stocks have strong upside potential for 2021 and witnessed robust earnings estimate revisions in the last 7 to 30 days.

Moreover, all these stocks have strong long-term (3-5) growth prospects and have provided more than 15% returns year to date. Also, these companies are regular dividend payers providing an important income stream during a market downturn. Finally, each of our picks carries a Zacks Rank #1 (Strong Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.

Exxon Mobil has an expected earnings growth rate of more than 100% for the current year. The company has a long-term growth rate of 9.5%. The Zacks Consensus Estimate for the current year has improved 2.2% over the last 7 days. The stock price of the company has climbed 35.1% year to date. The company has a current dividend yield of 6.3%.

The Goldman Sachs has an expected earnings growth rate of 81.5% for the current year. The company has a long-term growth rate of 25.6%. The Zacks Consensus Estimate for the current year has improved 48.8% over the last 30 days. The stock price of the company has advanced 30.2% year to date. The company has a current dividend yield of 1.5%.

Bank of America has an expected earnings growth rate of 61.5% for the current year. The company has a long-term growth rate of 7%. The Zacks Consensus Estimate for the current year has improved 3.8% over the last 7 days. It has a current dividend yield of 1.9% and the stock price has surged 30% year to date.

Lam Research has an expected earnings growth rate of 64% for the current year (ending June 2021). The company has a long-term growth rate of 32.8%. The Zacks Consensus Estimate for the current year has improved 5.4% over the last 7 days. The stock price of the company has jumped 36.2% year to date. The company has a current dividend yield of 0.8%.

Nucor has an expected earnings growth rate of more than 100% for the current year. The company has a long-term growth rate of 12%. The Zacks Consensus Estimate for the current year has improved 7.2% over the last 7 days. It has a current dividend yield of 2.1% and the stock price has appreciated 51.5% year to date.

Time to Invest in Legal Marijuana

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After a clean sweep of 6 election referendums in 5 states, pot is now legal in 36 states plus D.C. Federal legalization is expected soon and that could be a still greater bonanza for investors. Even before the latest wave of legalization, Zacks Investment Research has recommended pot stocks that have shot up as high as +285.9%

You’re invited to check out Zacks’ Marijuana Moneymakers: An Investor’s Guide. It features a timely Watch List of pot stocks and ETFs with exceptional growth potential.

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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/performance for information about the performance numbers displayed in this press release.


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Exxon Mobil Corporation (XOM) : Free Stock Analysis Report
 
The Goldman Sachs Group, Inc. (GS) : Free Stock Analysis Report
 
Bank of America Corporation (BAC) : Free Stock Analysis Report
 
Lam Research Corporation (LRCX) : Free Stock Analysis Report
 
Nucor Corporation (NUE) : Free Stock Analysis Report
 
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