The Zacks Analyst Blog Highlights: Azul, Best Buy, Chipotle Mexican Grill, D.R. Horton And Metropolitan Bank

For Immediate Release

Chicago, IL – March 27, 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: Azul S.A. (NYSE:AZUL) , Best Buy Co., Inc. (NYSE:BBY) , Chipotle Mexican Grill, Inc. (NYSE:CMG) , D.R. Horton, Inc. (NYSE:DHI) and Metropolitan Bank Holding Corp. (NYSE:MCB) .

Here are highlights from Thursday’s Analyst Blog:

5 Beaten-Down Stocks to Buy on Coronavirus Relief Package

America’s economic growth significantly has been significantly impacted by the coronavirus outbreak, with many expecting the country’s GDP to contract in the first two quarters this year. The coronavirus pandemic has wreaked havoc on the society, and dragged the stock market into bear territory. Many companies are anticipated to go bankrupt, and the current lockdown is certainly causing disruptions across multiple sectors.

Domestic and international flights have been cancelled, and many routes are shut down to curb the spread of the deadly virus. Thus, airlines are among the hardest hit by the coronavirus pandemic. Retailers primarily selling discretionary items are also among the biggest losers. In fact, retailers have not just been hit by the lockdown but also the economy, which is heading for a recession. It’s obvious that in such a scenario, consumers won’t be spending much, which will ultimately weigh on discretionary players.

In fact, in a shutdown economy businesses that involve congregating large number of people will also take a beating. Notable among them are restaurants. As for the housing sector, increasing job losses, due to the shutdown, are few to take advantage of the current low interest rate to buy homes.

Financials haven’t been spared either. Amid a low interest rate environment, and a weak economy that the extended lockdown would create, banks and other financial institutions are likely to bleed. But let’s admit stocks from these battered sectors will certainly gain traction in the near term, primarily due to the recent fiscal stimulus package.

The Senate unanimously passed the coronavirus relief package by a vote of 96-0. And airlines, in particular, will receive almost $60 billion in financial assistance as part of the Senate’s relief package. The bipartisan coronavirus aid package offers $25 billion in loans for passenger airlines, and $4 billion for cargo airlines. Passenger airlines also get $25 billion to pay workers through September, and cargo airlines get an additional $4 billion. Needless to say, that such stimulus initiative will certainly help airlines stay afloat.

In the rescue package worth $2 trillion, at least $250 billion is expected to be set aside for direct payments to individuals, and another $250 billion for unemployment benefits. Such measures should pep up consumer spending levels, and in turn buoy consumer discretionary companies including retailers.

The deal also focuses on providing $350 billion to small business houses as loans. Lest we forget that most of the restaurant stocks are small businesses. And finally, the relief package sets aside nearly $500 billion for distressed companies. This should benefit hard-hit sectors including construction and financials.

Housing, in itself, is expected to boom this year and millennials will act as the key catalysts. Most of these individuals will turn 30 next year and consider buying their first home. In fact, millennials are expected to take half of all mortgages this year, surpassing both Generation X and Baby Boomers, per Zacks Investment Research

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Written By: Zacks Investment Research