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The Zacks Analyst Blog Highlights: Tesla, FedEx, General Motors, Deere & Co and Lennar

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Zacks Equity Research
·7 min read
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For Immediate Release

Chicago, IL – January 21, 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: Tesla, Inc. TSLA, FedEx Corporation FDX, General Motors Company GM, Deere & Company DE and Lennar Corporation LEN.

Here are highlights from Wednesday’s Analyst Blog:

Top 5 Growth Picks on Expectations of Higher Fiscal Stimulus

Wall Street closed higher on Tuesday, a day before President elect Joe Biden formally takes charge as the next U.S. President. Last week was a disappointing one as the three major stock indexes — the Dow, the S&P 500 and the Nasdaq Composite — posted their worst weekly performance since the week ended Oct 30.

Investors' confidence was boosted by positive signals for higher fiscal stimulus and a faster nationwide vaccination process. Meanwhile, Wall Street is maintaining its northbound journey after finishing an impressive 2020 defying the pandemic.

At this stage, it will be prudent to invest in growth stocks with a favorable Zacks Rank. Notably, growth investors are primarily focused on stocks with aggressive earnings or revenue growth, which should propel their stock price higher in the future. Higher fiscal stimulus and vaccination processes are likely to drive the overall growth of the economy.

Expectations for Higher Fiscal Stimulus

On Jan 19, during her Senate confirmation hearing, Janet Yellen, President-elect Joe Biden's designated nominee for Treasury Secretary and a former chairperson of the Federal Reserve, said that with interest rates at historic lows, the best way to counter the coronavirus-led economic devastations is to inject a big relief package although that will increase the U.S. debt burden.

On Jan 14, President elect Joe Biden proposed a  new $1.9 trillion coronavirus-aid package called "American Rescue Plan." The proposed plan will include increasing direct payments to $2,000 from the existing $600 and supplemental unemployment benefits to $400 per week through September. The proposal also mentions that the minimum wage rate would be hiked to $15 per hour and moratoriums on eviction and foreclosure on mortgages would be extended to Sep 30.

The plan will include $20 billion for a national vaccination program, $50 billion for COVID testing, and $350 billion aid to state and local governments. In addition, the plan will provide $130 billion for reopening of schools, $35 billion for higher education and $5 billion for a "Hardest Hit Education Fund."

Faster Vaccination Process

On Jan 19, Dr. Rochelle Walensky, Biden's nominee to Head the Centers for Disease Control and Prevention, expressed her confidence that the country has enough COVID-19 vaccine doses to meet the Trump administration's goal of immunizing 100 million people in 100 days despite a slower-than-expected rollout.

Our Top Picks

We have narrowed down our search to five large-cap (market capital > $10 billion) stocks as these companies have an established business model and a solid brand value.

These stocks have strong growth potential for 2021 and witnessed robust earnings estimate revisions in the last 7 to 30 days. Each of our picks carries a Zacks Rank #1 (Strong Buy) and has a Growth Score A. You can see the complete list of today's Zacks #1 Rank stocks here.

Tesla has acquired substantial market share within the electric car segment. Strong performance and impressive design of the firm's products are ramping up sales volumes. Increasing Model 3 delivery, which forms a major chunk of the automaker's overall deliveries, is aiding the company's top line. Along with Model 3, Model Y is contributing to its revenues.

The company has an expected earnings growth rate of 60.4% for the current year. The Zacks Consensus Estimate for current-year earnings has improved 1.1% over the last 7 days. It has a long-term (3-5 years) growth rate of 37.5% compared with 9.1% of the benchmark S&P 500 Index.

FedEx is the leader in global express delivery services. It provides a broad portfolio of transportation, e-commerce and business services through companies competing collectively, operating independently and managed collaboratively, under the FedEx brand.

The company has an expected earnings growth rate of 81.5% for the current year (ending May 2021). The Zacks Consensus Estimate for current-year earnings has improved 10.5% over the last 30 days. It has a long-term growth rate of 12% compared with 9.1% of the benchmark S&P 500 Index.

General Motors designs, builds, and sells cars, trucks, crossovers and automobile parts worldwide. It operates through the GM North America, GM International, Cruise and GM Financial segments.

The company has an expected earnings growth rate of 23.9% for the current year. The Zacks Consensus Estimate for current-year earnings has improved 0.7% over the last 7 days. It has a long-term growth rate of 9.9% compared with 9.1% of the benchmark S&P 500 Index.

Deere & Co. manufactures and distributes farm equipment worldwide. It operates through three segments: Agriculture and Turf, Construction and Forestry, and Financial Services.

The company has an expected earnings growth rate of 50.9% for the current year (ending October 2021). The Zacks Consensus Estimate for current-year earnings has improved 16.3% over the last 7 days. It has a long-term growth rate of 16% compared with 9.1% of the benchmark S&P 500 Index.

Lennar operates as a homebuilder primarily under the Lennar brand in the United States. It operates through Homebuilding East, Homebuilding Central, Homebuilding Texas, Homebuilding West, Financial Services, Multifamily, and Lennar Other segments.

The company has an expected earnings growth rate of 8.3% for the current year (ending November 2021). The Zacks Consensus Estimate for current-year earnings has improved 6.6% over the last 30 days. It has a long-term growth rate of 8.7% compared with 9.1% of the benchmark S&P 500 Index.

Breakout Biotech Stocks with Triple-Digit Profit Potential

The biotech sector is projected to surge beyond $775 billion by 2024 as scientists develop treatments for thousands of diseases. They're also finding ways to edit the human genome to literally erase our vulnerability to these diseases.

Zacks has just released Century of Biology: 7 Biotech Stocks to Buy Right Now to help investors profit from 7 stocks poised for outperformance. Our recent biotech recommendations have produced gains of +50%, +83% and +164% in as little as 2 months. The stocks in this report could perform even better.

See these 7 breakthrough stocks now>>

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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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