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Chicago, IL – November 2, 2021 – Zacks.com announces the list of stocks featured on the Analysts Blog. Every day, Zacks Equity Research analysts discuss the latest news and events impacting stocks and financial markets. Stocks recently featured in the blog include: The Blackstone Group Inc. BX, Celanese Corp. CE, Continental Resources Inc. CLR, Xilinx Inc. XLNX and Bunge Limited BG.
Here are highlights from Monday’s analyst blog:
Best Momentum Picks For November After A Fabulous October
Wall Street had a fabulous October, more than offsetting the market turmoil in September. The three major stock indexes – the Dow, S&P 500 and Nasdaq Composite – rose 5.8%, 6.9% and 7.3% respectively. In September, these three indices fell by 4.3%, 4.8% and 5.3% respectively.
The S&P 500 and the Nasdaq Composite recorded the best month since November 2020 while the Dow recorded the best month since March 2021. In contrast, in September, the S&P 500 and the Nasdaq Composite recorded the worst monthly decline since March 2020 while the Dow recorded its worst monthly performance since October 2020.
October’s performance in the US stock markets was more appreciable as the month is historically known for its trading volatility. The momentum is expected to continue as we enter the 2021 holiday sale season.
First, a sharp reduction in new cases of the Delta variant will pave the way for strong holiday sales. On October 28, the FDA approved the COVID-19 vaccine developed by Pfizer and BioNTech for children aged 5 to 11. More than 28 million American children will now receive the vaccine.
Holiday retail sales are expected to increase this year, as predicted by several top researchers including Deloitte, Mastercard SpendingPulse, Bain and KPMG. Notably, consumer spending represents nearly 70% of US GDP.
Second, on October 28, President Joe Biden announced that he had reached an agreement with Senate Democrats on the outline of a $ 1.75 trillion social spending and climate bill. He called on House Democrats to vote for the $ 1 trillion infrastructure bill that has already passed the Senate.
Third, American consumers have regained confidence in the economy. The Conference Board reported that the U.S. Consumer Confidence Index climbed to 113.8 in October from 109.8 in September, beating the consensus estimate of 107.5. The index rebounded after three consecutive months of decline.
More importantly, the expectations sub-index (consumer outlook for income, business and labor market conditions for the next 6 months) improved to 91.3 in October from 86.7 in September.
Fourth, the struggling US labor market is gradually returning to normal. Weekly jobless claims have remained at a pandemic-era low for the past three months. Initial jobless claims have fallen below 300,000 in the last three reported weeks. This is the best level since March 14, 2020, just before the COVID-19 outbreak in the United States.
Fifth, a series of economic data for September, released in October, reaffirmed the strong fundamentals of the US economy. US PMIs for manufacturing and services, retail sales and durable goods orders beat consensus estimates.
Sixth, on October 29, the Atlanta Fed’s initial estimate predicted the U.S. economy to grow 6.6% in the fourth quarter of 2021 after rising 2% in the third quarter. US GDP grew 6.4% and 6.7%, respectively in the first and second quarters of this year. In addition, strong US corporate earnings in the first, second and third quarters bolstered market participants’ confidence in US equities.
Our top picks
At this point, we’ve narrowed down our search to six large-cap stocks (market capital> $ 10 billion) that are up sharply for the remainder of 2021. These stocks have had their earnings estimates revised in the past 7 days. , indicating that the market expects these companies to do well this year.
Each of our picks carries a Zacks Rank # 1 (strong buy) and has a Momentum Score of A. You can see The full list of today’s Zacks # 1 Rank stocks here.
The graph below shows the price performance of our five picks over the past month.
The Blackstone group remains well positioned to benefit from its fundraising capacity, revenue mix and inorganic expansion strategies. To provide ESG-focused investment opportunities, it signed an agreement to acquire Sphera, while the takeover of DCI will further strengthen its digital capabilities.
The company has an expected earnings growth rate of 63% for the current year. Zacks’ consensus estimate for current year earnings has improved 5.9% in the past 7 days.
Celanese Corp. remains focused on executing its productivity programs which include the implementation of a number of capital cost reduction projects. Cost savings through productivity actions and operational improvement are expected to support the company’s results in 2021.
The acquisitions of SO.F.TER., Nilit and Omni Plastics are also expected to generate results in its Engineered Materials business this year. The acquisition of Santoprene also strengthens its engineering solutions business. Celanese is poised to benefit from its expansion in emerging regions. His efforts to reduce debt are also auspicious.
The company has an expected profit growth rate of over 100% for the current year. Zacks’ consensus estimate for current year earnings has improved 4.5% in the past 7 days.
Continental resources explores, develops and produces crude oil and natural gas primarily in the northern, southern and eastern regions of the United States. It sells crude oil and natural gas to energy marketing companies, crude oil refining companies, and natural gas gathering and processing companies.
Continental Resources occupies a leading position in the Bakken region. In addition, operations in the SCOOP and STACK areas of Oklahoma generate huge profits for the company. Its net profit for this year is supported by increased production volumes and higher achievements in raw material prices.
The company has an expected profit growth rate of over 100% for the current year. Zacks’ consensus estimate for current year earnings has improved 3% in the past 7 days.
Xilinx designs and develops programmable devices and associated technologies around the world. Growing demand for its 16-nanometer UltraScale + family and Zynq platform will likely remain the primary growth drivers. In addition, an acceleration of the deployment of 5G in several regions remains a catalyst.
The strong momentum of the Vitis software development platform should play a driving role. In addition, the acquisition of Solarflare would generate additional revenues in the following quarters. The company has an expected profit growth rate of 32.8% for the current year (end of March 2022). Zacks’ consensus estimate for current year earnings has improved 10.2% in the past 7 days.
Bunge Ltd. is an agribusiness and food company worldwide. It operates in five segments: Agri-Food, Edible Oilseed Products, Milling Products, Sugar and Bioenergy, and Fertilizers. Bunge transforms, produces, moves, distributes and markets food on five continents.
The company has an expected profit growth rate of 25.7% for the current year. Zacks’ consensus estimate for current year earnings has improved 17.3% in the past 7 days.
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5 actions in the process of doubling
Each was selected by a Zacks expert as the # 1 favorite stock to earn + 100% or more in 2021. Previous recommendations climbed + 143.0%, + 175.9%, + 498.3% and + 673.0%.
Most of the stock in this report is flying under Wall Street’s radar, which provides a great opportunity to get into the ground floor.
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Blackstone Inc. (BX): Free Stock Analysis Report
Xilinx, Inc. (XLNX): Free Stock Analysis Report
Bunge Limited (BG): Free Stock Analysis Report
Celanese Corporation (CE): Free Stock Analysis Report
Continental Resources, Inc. (CLR): Free Stock Analysis Report
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