For Immediate Release
Chicago, IL – June 19, 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: Tesla, Inc. TSLA, Fortinet, Inc. FTNT, West Pharmaceutical Services, Inc. WST, DexCom, Inc. DXCM and Tractor Supply Co. TSCO.
Here are highlights from Thursday’s Analyst Blog:
5 Best Stocks from 100 Days of Coronavirus
The year started on a positive note for the stock market, with the Dow Jones Industrial Average rising more than 25%. Despite the coronavirus outbreak at the start of this year, stocks scaled higher with the blue-chip index finishing at an all-time high on Feb 12. The broader S&P 500 and the tech-laden Nasdaq also hit their respective peaks on Feb 19.
But when the crisis soon took the shape of a pandemic, disrupting supply chains and weighing on corporate profits, the U.S. stock market took a severe beating, with the S&P 500 plunging 34% through Mar 23 from its all-time closing high of 3,386.15 achieved on Feb 19.
Since the WHO declared the outbreak as a pandemic on Mar 11, the United States has seen more than 100,000 deaths and its economy has completely shuttered. In fact, the National Bureau of Economic Research, on Jun 8, stated that the longest economic expansion in the history of the United States came to an abrupt end in February after the economy plunged into recession.
It comes as no surprise that the coronavirus outbreak played a huge part in dragging down economic growth in February, before dealing a massive blow in March.
Nonetheless, Jun 19 will officially mark 100 days of the coronavirus outbreak since the WHO declaration. But, if this entire period is considered, the stock market has done reasonably well, with the Dow breezing past its coveted 26,000 mark, the S&P 500 surpassing the 3,000 mark and the Nasdaq topping its previous all-time high in intra-day trade on Jun 6.
The stock market got its mojo back as the economy showed signs of rapid recovery from the coronavirus crisis. May’s stunning jobs as well as retail sales report has already set the stage for V-shaped economic recovery, which many economists had earlier doubted.
The Bureau of Labor Statistics confirmed that America regained 2.5 million jobs last month, in contrast to economists’ expectations of job losses of 7.25 million. The unemployment rate, by the way, came in at 13.3%, whereas economists anticipated the jobless rate at 19% versus April’s 14.7%.
Similarly, sales at U.S. retailers rose 17.7% last month, the biggest monthly jump ever. May’s retail sales figure easily surpassed analysts’ expectations of an 8.5% increase. Notably, retail sales account for just under a third of GDP and May’s bounce back will invariably lead to an upward revision of second-quarter GDP.
Meanwhile, the breathtaking stock market rebound suggested that many market pundits are betting that the stimulus measures from the government and Fed will continue to help the economy go from strength to strength.
The government had approved more than a trillion-dollar relief plan that will directly benefit American consumers, especially small business houses. It will also help the struggling U.S. airline industry, which took a serious beating due to travel restrictions and cancellations. At the same time, the Trump administration is pushing for an almost $1-trillion infrastructure bill to revive the world’s largest economy.
The Fed, in the meantime, trimmed borrowing costs and pumped billions of dollars into the banking system to sustain the credit flow. Policy makers unanimously trimmed benchmark federal funds rate a full percentage point to a range of zero to 0.25%.
Additionally, the Fed said that it would expand the scope of its $750-billion emergency corporate debt loan facility by buying a broad and diversified portfolio of debt issued by individual corporates. In that way, more money will flow into big businesses at a time when the financial system is under considerable pressure, courtesy of the pandemic.
What’s more, Americans are now mostly optimistic about their future conditions amid gradual re-opening of the economy, even though some worry about a second wave of coronavirus outbreak as lockdown measures ease.
From an investment standpoint, nevertheless, let’s look at the top-performing stocks that made the most of the rebound in the stock market amid the coronavirus pandemic that resulted in bouts of volatility. These stocks possess a Zacks Rank #1 (Strong Buy) or 2 (Buy).
Tesla, Inc. designs, develops, manufactures, leases, and sells electric vehicles, and energy generation and storage systems. The company saw its shares move 53.7% north from Mar 11 through Jun 17. In fact, the company’s expected earnings growth rate for the current year is more than 100%. Tesla currently carries a Zacks Rank #2.
Fortinet, Inc. is a provider of network security appliances and Unified Threat Management (UTM) network security solutions. The company saw its shares climb 49.3% from Mar 11 through Jun 17. What’s more, the company’s expected earnings growth rate for the current year is 13.8%. Fortinet currently flaunts a Zacks Rank #1.
West Pharmaceutical Services, Inc. manufactures and sells containment and delivery systems for injectable drugs and healthcare products. The company saw its shares move up 47.2% from Mar 11 through Jun 17. In fact, the company’s expected earnings growth rate for the current year is 11.4%. West Pharmaceutical Services currently flaunts a Zacks Rank #1. You can see the complete list of today’s Zacks #1 Rank stocks here.
DexCom, Inc. is a medical device company focused on the design, development and commercialization of continuous glucose monitoring systems (CGM). The company saw its shares climb 44.4% from Mar 11 through Jun 17. Actually, the company’s expected earnings growth rate for the current year is 21.2%. DexCom currently has a Zacks Rank #2.
Tractor Supply Co. is the largest retail farm and ranch store chain in the United States. The company saw its shares rise 43.5% from Mar 11 through Jun 17. In fact, the company’s expected earnings growth rate for the current year is 19%. Tractor Supply currently flaunts a Zacks Rank #2.
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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/performancefor information about the performance numbers displayed in this press release.
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DexCom, Inc. (DXCM) : Free Stock Analysis Report
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