Vive La Rally!
Zacks Investment Research | Apr 24, 2017 09:15PM ET
The U.S. market REALLY cared about the French presidential election this time. News that pro-EU centrist Emmanuel Macron won the first round sent the major indices sharply higher on Monday. He is now widely expected to win the run-off in two weeks against Marine Le Pen, a much more controversial candidate that would stoke markets’ fear of uncertainty.
Monday was another active session for the portfolios. Tazr had a double-digit winner, while RTA and Stocks Under $10 each bought positions during this rally. Finally, Black Box Trader swapped out four names in this week’s adjustment. Learn about all this and more in the highlights section below: Today's Portfolio Highlights:
TAZR Trader: Reitmeister Trading Alert: The editor wanted to get a little longer today on hopes of a new tax plan, though passage is uncertain at this time. Steve sold all of HDGE and bought a 7.1% allocation in AMC Entertainment (AMC). This pick increases RTA’s exposure to the strong U.S. consumer during a year that’s expected to be one of the best ever for blockbuster movie releases. AMC is increasing its market share through industry consolidation and has an average target price of $38 from analysts, which means there’s a lot of profit potential from its current price just below $31. The portfolio is now 45% long (but it’s really more like 65% to 75% long given all the beta). Read more in the full write-up. Stocks Under $10: You may remember that Mitek Systems (MITK) was a 30% winner for the portfolio last year, and Brian thinks it is set for a repeat performance…or better. It’s a tech company that services big financial institutions, so it should benefit from tax reform or deregulation. For right now though, it is a Zacks Rank #2 that reports on Thursday and has beaten expectations for 11 straight quarters. MITK is expecting revenue growth of 26% in fiscal 2017 and then 19% in fiscal 2018, along with earnings growth of 31% next year. Read the complete commentary for a lot more on this new addition (such as its limit) and be ready for another buy tomorrow.
The S&P jumped 1.08% today to 2374.2, while the Dow advanced 1.05% to 20,763.9 and the NASDAQ increased 1.24% to 5983.8. The market’s focus will return home for the rest of this week. President Trump has promised a look at his “massive” tax cut plan on Wednesday. If the market likes what it sees from POTUS, then the “Trump Trade” could be reignited. Plus, we’re also in the thick of earnings season.
Get The News You Want
Zacks Confidential: We’ve all heard the saying: “Sell in May and go away”. But is that old adage accurate? In this week’s Zacks Confidential, Jeremy Mullin explores this piece of advice as we quickly approach the month in question. Learn about five events that could have an impact next month and two stocks that should prosper: Time for Sell in May?
Black Box Trader:
All the Best,
Jim Giaquinto
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