The Zacks Analyst Blog Highlights: Fulgent Genetics, Teekay Tankers, Ultra Clean, Boot Barn And Sonic Automotive
Zacks Investment Research | Dec 19, 2019 11:33PM ET
For Immediate Release
Chicago, IL – December 20, 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: Fulgent Genetics, Inc. (NASDAQ:FLGT) , Teekay Tankers Ltd. (NYSE:TNK) , Ultra Clean Holdings, Inc. (NASDAQ:UCTT) , Boot Barn Holdings, Inc. (NYSE:BOOT) and Sonic Automotive, Inc. (NYSE:SAH) .
Here are highlights from Thursday’s Analyst Blog:
Check These Movers & Shakers in the Market Ahead of 2020
The easing U.S.-China trade tensions and a generous interest rate cut by Federal Reserve helped major benchmarks’ rally in 2019. Here are five stocks that gained big this year and are poised to grow in 2020.
2019: Wall Street Sees Best Annual Gain Since 2013
Major benchmarks posted their sixth straight win before closing notches lower on Dec 18. But this rally is merely part of what the Wall Street has witnessed throughout the year in terms of records.
One of Wall Street’s major benchmarks, the S&P 500 Index rose to 3,198.25 an intraday record, hitting a fresh all-time high on Dec 17 and posting its longest winning streak since November. In fact, the S&P 500 crossed the coveted 3,000-point mark this year in intraday session on Jul 10. Notably, the index had hit 2,000 five years ago on Aug 26, 2014. The broader index has rallied 27.6% so far this year.
Coming to the tech-heavy Nasdaq composite, several record highs were made in the second half of this year. The index closed in positive territory, finishing at 8,827.73 on Dec 18, continuing with a six-day winning momentum on the trot. The tech-laden benchmark has increased 27.5% so far this year.
What’s more, both the S&P 500 and Nasdaq are on track to achieve the highest yearly draws since 2013. The broader index has risen 29.6% while the tech-laden Nasdaq has surged 38.32% year to date.
However, despite hitting the high notes, the Dow’s top-rated Boeing (NYSE:BA) was a big reason for the index’s underperformance in 2019. Boeing’s 737 MAX jetliner’s fallout had outshined the Dow’s stalwart as it is known to weigh the highest among the 30 stocks that make up the index. The Dow Jones Industrial Average has grown 23% so far this year
Rationale Behind the Rally
The second half of the year saw a series of events that provided an impetus to the Wall Street. The protracted trade war between the United States and China finally seem to subside. After imposing a series of higher tariffs on each other since 2018, both economic giants finally relented to a truce and agreed to ink a deal in mid-October.
In the beginning of the month, the United States cancelled levying higher tariffs scheduled for Oct 15 and initiated a “phase one” deal talk with China. Further, China agreed to purchase more agricultural products. The deal, however, is due to be signed in January 2020.
The Fed’s three consecutive rate cuts since July has kept the economy expanding for 11 years now. This rate reduction by the central bank erased nearly half of all the rate hikes in the past two years. The regulatory body is consistently reviewing the recession-fighting toolkit to shield the U.S. economy from further downturns and after the current year-end meeting, Fed announced that it will keep interest rates steady throughout next year.
The tech-laden Nasdaq seems to have benefited from the adoption of cloud computing and the rising infusion of AI. Additionally, innovation in electronic devices, especially in wearables, and smart-connectivity solutions gave a thrust to tech stocks.
Overall, the technology sector observed a substantial rise even after bearing the brunt from trade feuds. The Technology Select Sector SPDR Fund (XLK) has soared 45.2% so far this year.
Grab These 5 Stocks Now
Given the superb performance of the major indexes this year, we shortlisted five stocks that have outperformed the stock market in 2019 so far and are poised to beat the industry’s growth estimate next year. Moreover, these stocks flaunt a Zacks Rank #1 (Strong Buy). You can see Zacks Investment Research
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