The Zacks Analyst Blog Highlights: Crocs, Universal Forest Products, CURO Group, Sterling Construction Company And Casella Waste Systems
Zacks Investment Research | Oct 29, 2019 11:03PM ET
For Immediate Release
Chicago, IL – October 30, 2019 – 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: Crocs Inc. (NASDAQ:CROX) , Universal Forest Products Inc. (NASDAQ:UFPI) , CURO Group Holdings Corp. (NYSE:CURO) , Sterling Construction Company Inc. (NASDAQ:STRL) and Casella Waste Systems Inc. (NASDAQ:CWST) .
Here are highlights from Tuesday’s Analyst Blog:
Forget a Recession: 5 Top Growth Picks to Tap the Wall Street Rally
The possibility of a recession, which created anxiousness in the stock investing circle, during the third quarter of 2019, has largely subsided. October, generally known as a tough month for Wall Street, has so far witnessed an impressive rally buoyed by positive development on the trade war front, better-than expected third-quarter earnings and the possibility of a third rate cut this month.
S&P 500 Hits New All-Time High
On Oct 28, the S&P 500 Index rose 0.6% to close at 3,039.42, surpassing its previous closing high of 3,027.98 recorded on Jul 26. The benchmark index also set a record intraday high of 3,044.08. Technology, Health care and communications services sectors primarily drove the S&P 500 Index to an all-time high.
Meanwhile, the tech-laden Nasdaq Composite increased 1% to end at 8,325.99 after touching its intra-day high of 8,335.56, outpacing its previous all-time high of 8,330.21 set on Jul 26. Moreover, the Dow advanced 0.5% to finish at 27,090.72. The blue-chip index is currently less than 1% away from its all-time high of 27,359.16, posted on Jul 15.
Possibility of U.S.-China Partial Trade Deal
On Oct 25, the Office of the U.S. Trade Representative stated that both the United States and China are moving closer to finalizing parts of the phase one trade deal. The deal is expected to be declared in mid-November after a meeting between President Donald Trump and Xi Jinping of China. Chinese state-run news agency Xinhua also confirmed that there has been some progress in trade negotiations.
Meanwhile, the U.S. government has refrained from hiking tariff rate to 30% from 25% on $250 billion of Chinese goods effective Oct 15. The Trump administration has also decided to stay away from imposing 10% tariff on $160 billion of fresh exports from China effective Dec 15, if the trade negotiations progress on the right path.
Better-Than-Expected Q3 Earnings
Third-quarter 2019 results so far have not been as disappointing as expected initially. However, overall earnings are still expected to dip. At present, total third-quarter earnings for the S&P 500 Index are expected to be down 3.3% from the prior-year period while revenues are expected to increase 4.1%.
This indicates improvement from an earnings decline of 5% on 4.2% higher revenues, expected at the beginning of the reporting cycle. Moreover, overall guidance is so far better-than-expected with no signs of a recession.
High Expectation for a Third Rate Cut in October
Market participants expect a 25 basis point rate cut by the Fed this month. As per CME FedWatch, more than 95% of respondents are looking for a third rate cut this year. The central bank has already reduced the benchmark lending interest rate by 50 basis points in two equal tranches in July and September. Rate cut happened for the first time in more than 11 years.
On Oct 8, Fed Chairman Jerome Powell gave signals of a possible third rate cut this month. He cited a slowdown in job growth rate and muted inflation along with global economic slowdown as primary reasons for a likely third rate cut this year in order to sustain U.S. economic expansion.
Our Top Picks
The U.S. economy is likely to maintain its long-term growth albeit at a slow pace. At this stage, investment in stocks with strong growth potential will be lucrative. We have narrowed down our search to five such stocks that have skyrocketed year to date. Our selection is backed by a Zacks Investment Research
Get The News You Want
Trading in financial instruments and/or cryptocurrencies involves high risks including the risk of losing some, or all, of your investment amount, and may not be suitable for all investors. Prices of cryptocurrencies are extremely volatile and may be affected by external factors such as financial, regulatory or political events. Trading on margin increases the financial risks.
Before deciding to trade in financial instrument or cryptocurrencies you should be fully informed of the risks and costs associated with trading the financial markets, carefully consider your investment objectives, level of experience, and risk appetite, and seek professional advice where needed.
Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. The data and prices on the website are not necessarily provided by any market or exchange, but may be provided by market makers, and so prices may not be accurate and may differ from the actual price at any given market, meaning prices are indicative and not appropriate for trading purposes. Fusion Media and any provider of the data contained in this website will not accept liability for any loss or damage as a result of your trading, or your reliance on the information contained within this website.
It is prohibited to use, store, reproduce, display, modify, transmit or distribute the data contained in this website without the explicit prior written permission of Fusion Media and/or the data provider. All intellectual property rights are reserved by the providers and/or the exchange providing the data contained in this website.
Fusion Media may be compensated by the advertisers that appear on the website, based on your interaction with the advertisements or advertisers.