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Zacks Investment Research | Dec 29, 2019 09:33PM ET
2019 has been a great year for Wall Street as major stock market indexes reached new highs and yielded solid returns on multiple occasions. While uncertainties surrounding the U.S.-China trade deal, global economic slowdown and Brexit worries were key concerns in 2019, macro-economic environment is likely to improve as we enter into a new decade.
Business sentiments and the prospects for a number of industries seem bright. Investors are likely to see changes from various macro factors, which include expected easing in monetary policy, rebound in oil markets and improving outlook in Europe.
The U.S.-China trade deal will continue to play a major role in 2020. The completion of the phase one of the deal is likely to improve business sentiments and expected to serve as a fundamental catalyst for global markets. The deal is expected to drive equity markets and will position the global economy on a growth trajectory.
After cutting its benchmark rates for the third time in October 2019, the U.S. Federal Reserve kept interest rates unchanged in its December meeting. Also, the central bank signaled that it may leave the rates on hold through next year. The Fed’s move augurs well for consumer confidence and expansion of economic activities in 2020.
Most importantly, the U.S. economy remains fundamentally stable. Courtesy of increasing consumer confidence, lower unemployment level and gradual wage growth, the economy and stock markets are well poised for growth in 2020.
Top-Ranked Industries Poised to Grow in 2020
A favorable job scenario, high consumer sentiment and easing monetary policy provides additional upside to a fundamentally sound U.S. economy. The momentum in the equity markets is also expected to continue next year.
Given these factors, it will be prudent for investors to add a few stocks in the portfolio that are fundamentally strong and belong to top-ranked industries. This is important because a rising tide will elevate all boats in an industry, as positive developments in the industry are likely to boost stocks across the board.
We have employed the Merck & Co., Inc. Quote
Sally Beauty Holdings, Inc. (NYSE:SBH) : The Denton, TX-based company is an international specialty retailer and distributor of professional beauty products. It belongs to the Sally Beauty Holdings, Inc. Quote
Acushnet Holdings Corp. (NYSE:GOLF) : The Fairhaven, MA-based company is a global leader in the designing, developing, manufacturing and distributing performance-driven golf products. It belongs to the Acushnet Holdings Corp. Quote
Zacks Top 10 Stocks for 2020
In addition to the stocks discussed above, would you like to know about our 10 top tickers for the entirety of 2020?
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These 10 are painstakingly hand-picked from over 4,000 companies covered by the Zacks Rank. They are our primary picks to buy and hold. Zacks Investment Research
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