For Immediate Release
Chicago, IL – January 03, 2017 – 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 PureFunds ISE Junior Silver ETF (AMEX: SILJ – Free Report ), Teck Resources Limited ( NYSE: TECK – Free Report ), PowerShares Dynamic Semiconductors Fund ( AMEX: PSI – Free Report ), Advanced Micro Devices Inc. ( Nasdaq: AMD – Free Report ) and First Trust RBA American Industrial Renaissance ETF ( Nasdaq: AIRR – Free Report ).
Today, Zacks is promoting its ''Buy'' stock recommendations. Get #1Stock of the Day pick for free .
Here are highlights from Friday’s Analyst Blog:
4 Market-Beating Sector ETFs & Stocks of 2016
After a tumultuous ride in early 2016, U.S. stocks made an impressive comeback overcoming all economic and political challenges and with high optimism. This is especially thanks to encouraging macro trends and investors’ increased appetite for riskier assets (read: S&P 500 On A Bull Run: Bet on Leveraged ETFs for 2017 ).
The U.S. economy is clearly on a solid footing buoyed by an impressive labor market, rising wages, slowly rising inflation, and increasing consumer spending. Americans have an optimistic view about the economy with confidence hitting the highest level since 2001 heading into the New Year. Additionally, the combination of other factors like return to the earnings growth era, the jump in oil price, the Trump effect and the rise in interest rates added to the strength.
In particular, Trump has promised to accelerate economic growth, spend big on infrastructure, reduce regulations, cut taxes and create more jobs in the country. These have instilled confidence in the market. As a result, the S&P 500 is up 10% while the blue chip index Dow Jones has moved higher by nearly 14%.
While many corners of the equity world have seen a torrid run, a few sectors have given incredible performances, easily crushing the broader markets. Below, we have highlighted four sectors and their related ETFs & stocks that have been the year’s star performers and could be better plays in the New Year (see: all the Categories ETF here ).
The materials sector got a bump from rebounding commodity prices, positive developments in China, pick-up in global manufacturing activities and improving global trends. Additionally, Trump’s pro-growth policies to revive U.S. manufacturing and rehabilitate the country’s aging infrastructure added to its strength. The President-elect has proposed to spend a trillion dollars on infrastructure by rebuilding highways, bridges, hospitals and other infrastructure projects over 10 years.
PureFunds ISE Junior Silver ETF ( AMEX: SILJ – Free Report ) : This product provides a true small cap play on the silver mining space by tracking the ISE Junior Silver (Small Cap Miners/Explorers) Index. Holding 24 stocks in its basket, the fund is heavily concentrated on the top three firms that collectively make up for 39.8% of assets while other firms hold less than 6% share. Canadian firms take the lion’s share at 81%, while the U.S., Peru and United Kingdom take the reminder. The fund has managed assets worth $47.3 million and trades in a good volume of more than 225,000 shares a day. It charges 69 bps in annual fees and has gained about 149.3%. (read: 6 Top Performing Stocks of the Best ETF of 2016 ).
Teck Resources Limited ( NYSE: TECK – Free Report ) : Based in Vancouver, Canada, Teck Resources is engaged in the exploration, development and production of natural resources in the Americas, the Asia Pacific, and Europe. The stock saw huge an earnings estimate revision of $1.05 for this year over the past 60 days, with an expected growth rate of a whopping 532%. The stock has surged 426.4% this year and has a solid Zacks Rank #1 (Strong Buy) with a VGM Style Score of B.
After a lackluster first half of 2016, the technology sector has managed to perform well thanks to improving industry fundamentals, investors’ drive for cheaper valuation and renewed focus on growth stocks even after Trump’s proposed policies hit the sector hard. In particular, semiconductor stocks remained unscathed by the Trump fears given that they are cyclical and tend to move higher with the market rallies. Ongoing consolidations, emerging technologies and impressive earnings from leaders in the industry added to the strength (read: Will Semiconductor ETFs Repeat This Year's Success in 2017? ).
PowerShares Dynamic Semiconductors Fund ( AMEX: PSI – Free Report ) : The product, with AUM of $132.1 million and average daily volume of around 37,000 shares, gained about 45.1% this year. This ETF tracks the Dynamic Semiconductor Intellidex Index, which selects stocks on a variety of investment criteria: price momentum, earnings momentum, quality, management action and value. In total, the fund holds a small basket of 30 securities with none holding more than 5.6% share. The product charges a fee of 63 bps a year and has a Zacks ETF Rank of 2 or ‘Buy rating with a High risk outlook.
Advanced Micro Devices Inc. ( Nasdaq: AMD – Free Report ) : Based in Sunnyvale, California, Advanced Micro Devices is a leading semiconductor company engaged in innovative products and technologies. The stock saw a positive earnings estimate revision from a loss of 27 cents to a loss of 24 cents for this year over the past 90 days with an expected growth rate of 61.3%. It has a solid Zacks Rank #2 with a VGM Style Score of C. Shares of AMD have risen 303.8% this year.
The industrial sector has been on tear on a recovering manufacturing industry and a push from manufacturing reshoring. This trend is likely to continue under Trump presidency because he pledges to cut taxes, boost fiscal spending and be stricter about outsourcing. These should provide a boost to industrial stocks. He is highly expected to bring the lost U.S. manufacturing jobs back to the country.
First Trust RBA American Industrial Renaissance ETF ( Nasdaq: AIRR – Free Report ) : The ETF offers exposure to the small and mid cap securities in the industrial and community banking sectors by tracking the Richard Bernstein Advisors American Industrial Renaissance Index. Holding 43 stocks in its basket, the fund is pretty well spread across components with none holding more than 3.76% share. In terms of industrial exposure, engineering and construction and industrial engineering take the top two spots with a combined 58% of the portfolio. The product has $139.7 million in AUM and trades in a lower volume of around 61,000 shares per day on average. It charges 70 bps in fees and expenses and is up 44.5% so far this year. The fund has a Zacks ETF Rank of 2 with a High risk outlook (read: 4 Under-the-Radar ETFs Soaring High After Trump Win ).
Today, Zacks is promoting its ''Buy'' stock recommendations. Get #1 Stock of the Day pick for free .
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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.
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PF ISE-JS SC ME (SILJ): ETF Research Reports
TECK RESOURCES (TECK): Free Stock Analysis Report
PWRSH-DYN SEMI (PSI): ETF Research Reports
ADV MICRO DEV (AMD): Free Stock Analysis Report
FT-RBA AMER IND (AIRR): ETF Research Reports
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