10 Top-Ranked S&P 500 Stocks Outperforming In 2020
Zacks Investment Research | Jan 16, 2020 08:00PM ET
Extending last year’s rally, Wall Street has already hit a series of record highs this year, with the S&P 500 breaching the 3.300 level for the first time. The latest rally has been powered by Q4 earnings optimism and the initial U.S.-China trade deal.
Under the terms of the phase one trade deal, China has agreed to purchase an additional $200 billion ($52.4 billion worth of energy, $32 billion in agriculture, $37.9 billion in services and $77.7 billion of manufactured products) of U.S. goods and services over the next two years. In return, Washington has agreed to cut half the tariffs on $120 billion in Chinese products from 15% to 7.5%. Also, Senate approval of a new trade deal between the United States, Mexico and Canada supported the stocks.
The Fed’s accommodative interest rate policy and a resilient domestic economy have been driving stocks higher. Lower interest rates will keep borrowing costs down, thereby resulting in higher consumer spending and an upswing in economic activities. The U.S. economy has been witnessing steady growth backed by a strong job market, a recovering housing market and higher consumer confidence. A technology surge is also adding to the strength. Though Middle East tensions have resulted in some volatility in early 2020, it has abated for now.
That said, the rally has been broad based and there are winners across various corners of the space. We have highlighted stocks that have shown strong momentum to start 2020 and carry a Zacks ETF Rank #1 (Strong Buy) or 2 (Buy). Here are a bunch of those that are easily leading the way on the S&P 500 Index and should continue to outperform for the rest of the month given their superior fundamentals. You can see Original post
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