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The Zacks Analyst Blog Highlights: Jabil, Manulife, Fidelity National, NortonLifeLock and Thor

Zacks Equity Research
·7 min read

For Immediate Release

Chicago, IL – October 6, 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 Jabil Inc. JBL, Manulife Financial Corp. MFC, Fidelity National Financial Inc. FNF, NortonLifeLock Inc. NLOK and Thor Industries Inc. THO.

Here are highlights from Monday’s Analyst Blog:

Must-Buy Stocks on the Dip for a Likely Volatile October

The volatility that was seen in September, Wall Street is likely to continue this month. The factors that led to severe volatility last month are present in October too. Moreover, the news of President Donald Trump getting infected with the novel coronavirus last week made market participants all the more jitter.

Lack of Good News in Market

Since last month, the market is suffering from the absence of good news to boost investors' morale. Notably, stock price reflects market participants' expectations from the economy, various sectors and industries, and individual companies. Therefore, the lack of good news always dampens investors' sentiment, resulting in the market's decline.

The two major concerns of the market are the persisting spike in new coronavirus cases in several parts of the United States and the uncertainty over the new fiscal stimulus. In fact, the COVID -19 infection of President Trump raises concerns about key decisions regarding the country's security, economic and political affairs, specifically, regarding his ongoing election campaign. Additionally, conflicting news on the availability of a vaccine for coronavirus made the situation worse.

A series of economic data for August and September clearly showed that the pace of U.S. economic recovery has slowed in the absence of a fresh trench of fiscal stimulus.

The first round of the $2.2 trillion fiscal stimulus injected by the Trump administration terminated in July. Uncertainty regarding the new stimulus owing to conflicting views of Republicans and Democrats on the size and scope of the package is undoubtedly taking a toll on the economy.

Moreover, the U.S. presidential election scheduled on Nov 3 is less than a month away. Historically, stock markets have remained volatile in the month before the election. Market participants generally choose to hold cash instead of investing in risky assets like equities while assessing the economic and financial consequences of the election result.

Possible Drivers of October

First, a Congressional settlement for the second round of the coronavirus-aid package will immediately boost investors' confidence in risky assets like equities. Notably, the latest Conference Board data revealed that Americans expressed their highest level of confidence in the economy in September since March.

Second, in its latest projection on Oct 1, the Atlanta Fed estimated 34.6% growth for third-quarter U.S. GDP, up from 32% projected on Sep 25. Furthermore, projections for U.S. corporate earnings for third-quarter and full-year 2020 are rising since early July, indicating growing corporate profits.

The earnings trend is likely to improve going forward as large parts of the U.S. economy have started coming out of the pandemic-driven lockdown. Since the coronavirus-led lockdowns in March, the U.S. economy is operating at a sub-optimal level. The reopening of the economy will limit the stock market's downside potential.

Our Top Picks

At this stage, it will be prudent to invest in stocks with a Zacks Rank #1 (Strong Buy) that are also trading at a huge discount to their 52-week high prices. We have narrowed down our search to five such stocks all of which are regular dividend payers. Dividends will act as income streams in case of a market downturn. You can see the complete list of today’s Zacks #1 Rank stocks here.

Jabil Inc. provides manufacturing services and solutions worldwide. It operates in two segments, Electronics Manufacturing Services and Diversified Manufacturing Services.

The company has an expected earnings growth rate of 39.3% for the current year (ending August 2021). The Zacks Consensus Estimate for the current year has improved by 14.1% over the last 30 days. The stock is currently trading at a 28.6% discount to its 52-week high price. The company has a current dividend yield of 0.93%.

Manulife Financial Corp. provides financial advice, insurance, and wealth and asset management solutions for individuals, groups, and institutions in Asia, Canada, and the United States.

Although the company's current-year expected earnings growth rate is negative, it has an estimated earnings growth rate of 11.8% for next year. The Zacks Consensus Estimate for the current-year has improved 2.1% in the last 30 days. The stock is currently trading at a 49.6% discount to its 52-week high price. The company has a current dividend yield of 5.89%.

Fidelity National Financial Inc. provides various insurance products in the United States. It operates through Title, and Corporate and Other segments.

The company has an expected earnings growth rate of 15.6% for the current year. The Zacks Consensus Estimate for the current year has improved by 38.5% over the last 60 days. The stock is currently trading at a 49.1% discount to its 52-week high price. The company has a current dividend yield of 3.99%.

NortonLifeLock Inc. is one of the leading providers of cyber security solutions. It is known for some of the popular brands in security and utilities, including Norton Anti-Virus, Norton Internet Security and Norton System Works.

The company has an expected earnings growth rate of 47.8% for the current year (ending March 2021). The Zacks Consensus Estimate for the current year has improved by 20.9% over the last 60 days. The stock is currently trading at a 39.6% discount to its 52-week high price. The company has a current dividend yield of 2.43%.

Thor Industries Inc. designs, manufactures, and sells recreational vehicles (RV) and related parts and accessories in the United States, Canada and Europe. It is the largest manufacturer of RVs in the world.

The company has an expected earnings growth rate of 38.6% for the current year (ending July 2021). The Zacks Consensus Estimate for the current year has improved by 12.7% over the last 7 days. The stock is currently trading at a 21.4% discount to its 52-week high price. The company has a current dividend yield of 1.60%.

5 Stocks Set to Double

Each was hand-picked by a Zacks expert as the #1 favorite stock to gain +100% or more in 2020. Each comes from a different sector and has unique qualities and catalysts that could fuel exceptional growth.

Most of the stocks in this report are flying under Wall Street radar, which provides a great opportunity to get in on the ground floor.

Today, See These 5 Potential Home Runs >>

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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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Manulife Financial Corp (MFC) : Free Stock Analysis Report
 
Jabil, Inc. (JBL) : Free Stock Analysis Report
 
Thor Industries, Inc. (THO) : Free Stock Analysis Report
 
Fidelity National Financial, Inc. (FNF) : Free Stock Analysis Report
 
NortonLifeLock Inc. (NLOK) : Free Stock Analysis Report
 
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