The Zacks Analyst Blog Highlights: EGain, Shoe Carnival, Kirkland Lake, Griffon And DSW

For Immediate Release

Chicago, IL –March 5, 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: eGain Corp. (NASDAQ:EGAN) , Shoe Carnival (NYSE:CCL), Inc. (NASDAQ:SCVL) , Kirkland Lake Gold Ltd. (TO:KL) , Griffon Corp. (NYSE:GFF) and DSW Inc. (NYSE:DSW) .

Here are highlights from Monday’s Analyst Blog:

Bull Market Approaches 10 Years: 5 Winning Stocks

The great bull market is on the verge of celebrating its 10th anniversary by the end of this week. Its expiration was foreseen in December, but, an array of positive developments propelled stock prices northward yet again.

The United States and China are nearing a deal, stabilized interest rates and rising consumer confidence are certainly providing the required momentum to stocks. Needless to say, March has historically been a great month to buy equities.

This calls for investing in some rock-solid stocks that have not only outperformed in the current bull market but also have scope to scale higher.

US and China Are Close to a Trade Deal

Both Beijing and Washington near a deal that could lift almost all U.S. tariffs on $200 billion worth of Chinese goods as long as China promises to protect intellectual property rights and buy significant number of American products. By the way, the United States has made it clear that China shouldn’t bring World Trade Organization cases in response to U.S. tariffs, according to people familiar with the negotiations.

Zhang Yesui, a spokesman for the National People’s Congress, recently told reporters in Beijing that U.S. and Chinese officials “have conducted fruitful and intensive consultations and made important progress on many issues of common concern.”

Such a positive update, no doubt, encouraged Wall Street. After all, several companies have been concerned that the trade war has been affecting revenues and eating into their profit margins.

A Dovish Fed

Remember, fears over gradual rate hikes by the Fed resulting in an imminent recession were among the primary factors that dragged the markets down last December. However, recently, the Fed did say that they will be “patient” with further rate hikes this year.

With less than three weeks to go before the FOMC’s next meeting scheduled on Mar 20, the CME Fed Watch tool shows that the probability of rates remaining unchanged at 225 to 250 basis points or 2.25%-2.50% is 98.7%.

Fed’s dovish stance helped the broader market chug along. And why not? Hike in rates increases the cost of lending money from financial institutions for small and medium business houses. This in turn could harm their businesses.

Consumer Confidence Rebounds

Things are also looking up on the economic front as well. Consumers’ assessment of current conditions improved and expectations about the future strengthened, indicating sturdy economic growth. In fact, consumer confidence bounced back in February on a healthy labor market and an end to the U.S. government’s longest shutdown in history.

According to the Conference Board, the consumer confidence index climbed to 131.4 this month from a revised 121.7 in January. The key economic indicator that measures attitudes on future economic prospects exceeded analysts’ expectations of a 124.7 reading and has rebounded after three straight months of declines.

Consumers’ optimism was largely driven by strength in the labor market. According to the Bureau of Labor Statistics, the economy added 304,000 new jobs in January, exceeding analysts’ estimates of around 172,000.

December’s job additions, in the meanwhile, were revised down from 312,000 jobs to 222,000, while November’s rose from 176,000 to 196,000. Nonetheless, the average for the last three months is now 241,000 jobs, marking one of the best stretches during an economic expansion dating back nine-and-a-half years ago. By the way, employment gains in 2018 turned out to be the strongest in the last three years.

Top 5 Gainers

Courtesy of possibilities of a U.S.-China trade deal, a dovish Fed and more confident Americans, we are about to experience a 10-year bull run this March. In fact, March has been the second strongest month for stocks both over the past 10 and 20 years period, per LPL Financial Research.

Banking on such positives, we have selected five solid stocks that have outdone in the current bull market and have scope to gain further. Lest we forget, investors who have been riding this bull market have reaped some impressive returns during that time. The S&P 500, for instance, has soared an incredible 312%.

Nonetheless, the stocks that are selected flaunt a Zacks Rank #1 (Strong Buy). You can seeZacks Investment Research

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Written By: Zacks Investment Research