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The Zacks Analyst Blog Highlights: Petrobras, Korea Electric Power, Taiwan's Chungwa Telecom, Gilead Sciences and Celgene

Zacks Equity Research

For Immediate Release

Chicago, IL – March 01, 2016 – 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 Petrobras (PBR.A), Korea Electric Power (KEP), Taiwan’s Chungwa Telecom (CHT), Gilead Sciences (GILD) and Celgene (CELG).

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Here are highlights from Monday’s Analyst Blog:

Worry More or Worry Less? Global Week Ahead

In the Global Week Ahead, fresh U.S. facts won’t add to worry about a U.S. recession. U.S. jobs additions look robust to the negative challenges they face.

Traders, worry instead over China manufacturing PMIs early on...

  1. China PMIs for manufacturing should tack around 49.6. This is not new bad news, just a new version of old bad news. PMI manufacturing data for China -- out on Tuesday -- will likely not be helping an oil price recovery or a global stock recovery.
  2. U.S. payroll data -- put out privately by ADP on Wednesday and officially by the U.S. government on Friday — looms as the biggest headliner. U.S. jobs numbers always are, with each turn to a new month. Consensus calls for a bounce back to +195K, up from +151K last month.

Bullish traders? You should sleep well next weekend. Solid U.S. jobs additions are likely to sooth nerves on Friday. A strong wage inflation reading is the spoiler. The Fed may use inflating wages as a signal to earlier rate hikes.

Bears? You can growl about the state of China and grant us downside volatility on the way there. A China PMI upside surprise would be a true Bear slayer.

Last Friday, the S&P 500 options volatility index (VIX) finished February just below 20. Where does it end this Friday, the 1st week of March? That’s the most prescient tell to watch on stock prices. The most recent VIX bounce up was a lower high, not a higher high.

My guess is oil prices drive share prices more than anything else, once again.

Looking for an incredibly cheap $2.40 a share top Zacks Rank large cap? There is one.

The now just $16 billion in market cap Brazilian state-owned oil company Petrobras ( PBR.A) looks tagged for a clearance sale. The stock is also a Zacks #1 Rank (Strong Buy) this week.

Yes, Brazil is on fire, Yes, Petrobras is at the center of the political corruption scandal down there. Yes, oil prices may go down from here. But look at that $2.40 a share price. It is screaming value!

On Wednesday, the Brazilian economy should sink to a -6% annual GDP growth rate. How much worse can it get?

If you want to stay defensive instead, state electric utilities of Korea Electric Power (KEP) and Taiwan’s Chungwa Telecom ( CHT) flash up as Zacks Rank #1 stock picks.

A share niche that looks attractive to me this week is large-cap U.S. biotechs.

We have both Gilead Sciences (GILD) and Celgene ( CELG) in the Zacks Rank #1 lists. Gilead has a B for Zacks Value but a C for Growth. Celgene has a D for Zacks Value but a higher B for Growth.

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About Zacks Equity Research

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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.

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PETROBRAS-ADR P (PBR.A): Free Stock Analysis Report
KOREA ELEC PWR (KEP): Free Stock Analysis Report
CHUNGHWA TELECM (CHT): Free Stock Analysis Report
GILEAD SCIENCES (GILD): Free Stock Analysis Report
CELGENE CORP (CELG): Free Stock Analysis Report
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