One thing I have always enjoyed about being both an economist
and a strategist is the chance to cross-pollinate my ideas. I
look to the economy, and then back at the thriving companies and
try to find the links. This is also a successful investing
In keeping with the holiday season, here are some current links
between the economy indicators that are spelling out spending
success and the industries and companies that are thriving.
First, the holiday season is all about consumers and consumption.
No surprise to see a jump in the Zacks industry Ranks for
Miscellaneous and Diversified Retailers, and for Retail and
Wholesale Building products. These are the places we are shopping,
for Christmas trees, sporting goods, things for our pets, and a
variety of other gifts for our homes.
And lo and behold, they also make great investing opportunities.
Our second stop for holiday season investment shopping turned out
to be communication components.
Communication components companies are not as visible and easily
understandable as retail firms. But investors don't have to
work too hard to understand that internet and wireless networks are
growing more and more important to the economy and to ourselves.
For example, consider
TESSCO Technologies Inc.
), a Zacks #1 Rank (Strong Buy) company based in Maryland. As
a leading provider of "Solutions That Make Wireless Work" and
"The Vital Link", this IT firm's marketing tells the story of the
communication components industry. TESS also pays a nice 3.4%
dividend yield, a rarity in the small cap IT space.
The top Zacks Ranked stocks in the communications components
industry are small or mid cap companies with growth
potential. TESS is $175M in market cap, NICE is $2B, and SEAC
All three stocks have Outperform ratings.
And lo and behold, these companies should make great current
investing opportunities too.
Happy investing to all of you!
TESSCO TECH INC (TESS): Free Stock Analysis
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