U.S. Markets closed

The Zacks Analyst Blog Highlights: Korn/Ferry International, Cypress Semiconductor, SkyWest, eXp World Holdings and Advance Auto Parts

Zacks Equity Research
Weight Watchers (WTW) saw a big move last session, as its shares jumped more than 7% on the day, amid huge volumes.

For Immediate Release

Chicago, IL – August 22, 2018 – 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 Korn/Ferry International KFY, Cypress Semiconductor Corp. CY, SkyWest, Inc. SKYW, eXp World Holdings, Inc. EXPI and Advance Auto Parts, Inc. AAP.

Today, Zacks is promoting its ''Buy'' stock recommendations. Get #1Stock of the Day pick for free.

Here are highlights from Tuesday’s Analyst Blog:

Bull Market Hale & Hearty: 5 U.S. Stocks to Buy

The Dow is set to burst out of correction phase for the first time in more than six months. The broader S&P 500 and the tech-laden Nasdaq Composite, by the way, have already exited the correction territory, showing signs of renewed optimism on Wall Street.

The U.S. stock market, in fact, notched healthy gains this month, dismissing August’s reputation as a weak month for equities. US-China trade talk optimism along with robust earnings on promising fundamentals helped stocks scale up.

And now the bull market is about to become the longest in history, with optimistic investors arguing that it has miles to go. Given the bullishness, let’s invest in stocks that have not only outperformed in the current bull market but have also scope to scale higher.

Dow is Close to Exiting Correction Phase

So far, the Dow Jones Industrial Average has failed to trade 10% above the closing low of 23,533.20 touched on Mar 23. The Dow needs to close at 25,886.52 or higher to achieve such a feat. The blue-chip index needs around 0.5% to rise from the correction territory.

After gaining 89.37 points, or 0.4%, to 25,758.69 on Aug 20, the 30-stock gauge is just less than 130 points short of the coveted mark. Needless to say, this is Dow’s longest spell in the correction phase since 223 sessions in 1961, per Dow Jones Market Data.

Bull Market in Pink of Health

All three major bourses have rallied more than 1% month to date as the U.S. stock market is preparing for the longest bull run on record this week. But, this stellar upward journey raised doubts over whether the market’s momentum is about to lose steam.

However, the U.S. market still has plenty of upside. Bank of America’s technical research analyst Stephen Suttmeier said that the strength in the market’s breadth, as judged by a record high in the S&P 500’s NYSE Composite Advance-Decline line last week showed that stocks have more room to run.

The U.S. stock market’s comparative strength against the rest of the world is another argument in favor. After all, allocations to U.S. stocks climbed 10 percentage points to a net of 19% overweight, the highest since January 2015, according to the fund managers of Bank of America. This makes America the most-popular region to invest in for the first time in five years.

The volatility backdrop is promising as well. The Cboe Volatility Index at present is at 1.10, which is a key support level. And as long as it remains at or above such a level, the S&P 500 will be in a position to trade above 2,800 and scale higher levels, added Stephen Suttmeier.

US-China Trade Optimism

A recent spell of optimism around U.S. stocks has gained strength, partly on hopes that both the United States and China are laying the groundwork this week for ending a prolonged trade dispute that has threatened to disrupt economic progression and eventually squeeze corporate profits.

The planning requires a concerted effort by both sides to keep the spiraling trade issues at bay. Such issues have already involved billions of dollars in tariffs and come with a threat of hundreds of billions more.

Both the sides have agreed to conduct midlevel talks in Washington this week. A nine-member delegation from Beijing, including Vice Commerce Minister Wang Shouwen, will hold meetings with U.S. counterparts on Aug 22 and 23.

US Stocks Put Up Stellar Show

It may also be worth noting that U.S. stocks are poised to perform well, courtesy of robust earnings on the back of a solid labor market and rising consumer confidence.

Total second-quarter earnings of the 467 S&P 500 members that have reported so far are up 25.5% from the same period last year on 9.9% higher revenues, with 79.2% of the companies beating EPS estimates and 72.8% surpassing the revenue mark (read more: Strong Retail Sector Earnings Performance).

5 Best US Stocks to Invest In

Banking on such positives, we have selected five solid stocks that have outdone in the current bull market and have scope to gain further. These stocks carry a Zacks Rank #1 (Strong Buy) or 2 (Buy).

The search was also narrowed down with a VGM Score of A or B. Here V stands for Value, G for Growth and M for Momentum and the score is a weighted combination of these three metrics. Such a score allows you to eliminate the negative aspects of stocks and select winners.

Korn/Ferry International provides talent management solutions worldwide. The company has a Zacks Rank #2 and a VGM Score of B. The Zacks Consensus Estimate for its current-year earnings has moved up 0.3% in the last 60 days. The stock’s expected growth rate for the current year is 18.4%, more than the Staffing Firms industry’s rally of 11.3%. The company has given a superb return of 270.3% in the past 10 years.

Cypress Semiconductor Corp. designs, develops, manufactures, markets and sells embedded system solutions worldwide. The company has a Zacks Rank #2 and a VGM Score of A. The Zacks Consensus Estimate for its current-year earnings has jumped 7.2% in the last 60 days. The stock’s expected growth rate for the current year is 50.6%, way more than the Semiconductor - Communications industry’s rally of 6.7%. The company has given a solid return of 241.2% in the past decade.

SkyWest, Inc. operates a regional airline in the United States. The company has a Zacks Rank #1 and a VGM Score of B. The Zacks Consensus Estimate for its current-year earnings has improved 6% in the last 60 days. The stock’s expected growth rate for the current year is 43.4%, in contrast to the Transportation - Airline industry’s projected decline of 10.2%. The company has given a stellar return of 274.8% in the past 10 years. You can see the complete list of today’s Zacks #1 Rank stocks here.

eXp World Holdings, Inc. provides cloud-based real estate brokerage services for residential real estate market in the United states and Canada. The company has a Zacks Rank #2 and a VGM Score of B. The Zacks Consensus Estimate for its current-year earnings has soared 37% in the last 60 days. The stock’s expected growth rate for the current quarter is 60%, higher than the Internet - Services industry’s rally of 7.8%. The company has given a whopping return of 1,480% in the past decade.

Advance Auto Parts, Inc. provides automotive replacement parts, batteries, accessories, and maintenance items for domestic and imported cars, vans, sport utility vehicles, and light and heavy duty trucks. The company has a Zacks Rank #2 and a VGM Score of B. The Zacks Consensus Estimate for its current-year earnings has increased 1.9% in the last 60 days. The stock’s expected growth rate for the current year is 28.9%, better than the Automotive - Retail and Wholesale - Parts industry’s rally of 21.2%. The company has yielded an encouraging return of 305.6% in the past 10 years.

The Hottest Tech Mega-Trend of All

Last year, it generated $8 billion in global revenues. By 2020, it's predicted to blast through the roof to $47 billion. Famed investor Mark Cuban says it will produce ""the world's first trillionaires,"" but that should still leave plenty of money for regular investors who make the right trades early.

See Zacks' 3 Best Stocks to Play This Trend >>

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 >>.

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.

Media Contact

Zacks Investment Research

800-767-3771 ext. 9339

support@zacks.com

https://www.zacks.com/

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
 
SkyWest, Inc. (SKYW) : Free Stock Analysis Report
 
Cypress Semiconductor Corporation (CY) : Free Stock Analysis Report
 
Advance Auto Parts, Inc. (AAP) : Free Stock Analysis Report
 
Korn/Ferry International (KFY) : Free Stock Analysis Report
 
Exp World Holdings, Inc. (EXPI) : Free Stock Analysis Report
 
To read this article on Zacks.com click here.
 
Zacks Investment Research