Investors have been keeping their eyes locked on the relationship between the US and China as the rhetoric spewing from the conflict has impacted the stock market for the over a year now. Tariffs have not only hurt China-exposed companies, but it has also had a negative impact on consumer confidence. The uncertainty that tariffs and the trade war had brought discouraged people from investing just up until recently.
However, when the two countries agreed to halt further tariffs at the G20 summit, it renewed investor optimism, fueling the stock market surge that resulted in the several all-time highs seen last week. The bullish conclusion for the stock market in the first half of the year has brought upon one question: Which stocks can carry these record performances into the second half of 2019? Let's examine some hot stocks that can potentially be the catalysts the stock market needs to sustain this period of record prolonged growth.
The Estee Lauder Companies
The Estee Lauder Companies EL is one of the world's leading manufacturers and marketers of skincare, makeup, fragrance, and hair care products. The company's products are sold in over 150 countries and territories. With millennial purchasing power increasing more and more as they become a principal component of the economy, companies like Estee Lauder can really thrive. EL is currently listed as a Zacks Rank #3 (Hold) and has some solid growth projections. Consensus Estimates are projecting for earnings to increase 9.22% on the back of a 5.88% revenue spike for the next quarter. Looking ahead to the full year outlook, the company's bottom line is expected to increase 15.52% to $5.21 a share. Not only has the company had a tremendous year individually but the broader cosmetic and toiletries market has also performed well, with EL up 45.3% and the market slightly trailing behind at 38.8%.
Starbucks SBUX is an additional stock that can cash in on the emergence of the millennial purchasing power. The coffee giant has been able to get back on its feet this year after three years of sideways trading. The company has been able to improve its loyalty rewards program, and has been able to land partnerships with Chinese companies such as Alibaba BABA . Starbucks is currently sitting at a Zacks Rank #2 (Buy) and has surged 39.7% year-to-date. Growth projections are looking solid for the company, as Consensus Estimates are calling for earnings to go up by 12.90% with a revenue increase of 5.13% next quarter. Double digi t earnings growth is forecasted through 2020. Furthermore, the company has been able to surpass our Consensus Estimates the past four reported quarters for an average EPS surprise of 7.73%. SBUX has solidified itself as a company to bet on in the second half of 2019 because it has proven itself to be able to dig out of stagnancy and thrive.
Chipotle CMG is a company that has been on an absolute tear in the first half of 2019, and is also a company that can use its contemporary approach to elevate it to the next level. The restaurant giant is a company that can capitalize on its popularity to sustain its outstanding growth. Chipotle is currently listed as a Zacks Rank #2 (Buy) and growth estimates are looking strong for next quarter. Consensus Estimates are currently calling for a bottom-line surge of 47.22% with a top line jump of 10.36% for next quarter. Double digit earnings and sales growth are projected through next year. In addition, CMG has been able to beat our Consensus Estimates the past four quarters with an average EPS surprise of 11.99%. Chipotle is a stock that has skyrocketed this year; it is currently up 76.7% year-to-date with things looking bright for the company in the second half of 2019.
Procter & Gamble
The Procter & Gamble Company PG is engaged in the manufacturing and sale of a range of branded consumer packaged goods. Procter & Gamble is a company that has been quietly putting together a solid year thus far. PG is currently sporting a Zacks Rank #2 (Buy) and has seen a price gain of 26% year-to-date. Consensus Estimates are forecasting for earnings to climb 8.04% while total sales should jump 4.12% next quarter. The full year outlook for earnings is also looking good, with Estimates calling for a 6.16% leap. PG has been able to consistently surpass our Consensus Estimates with an average EPS surprise of 3.11% over the last four quarters. Furthermore, the company has been able to see an EPS increase of 6% compared to the previous year.
Radical New Technology Creates $12.3 Trillion Opportunity
Imagine buying Microsoft stock in the early days of personal computers… or Motorola after it released the world's first cell phone. These technologies changed our lives and created massive profits for investors.
Today, we're on the brink of the next quantum leap in technology. 7 innovative companies are leading this "4th Industrial Revolution" - and early investors stand to earn the biggest profits.
See the 7 breakthrough stocks now>>
Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report Alibaba Group Holding Limited (BABA): Free Stock Analysis Report The Estee Lauder Companies Inc. (EL): Free Stock Analysis Report Starbucks Corporation (SBUX): Free Stock Analysis Report Chipotle Mexican Grill, Inc. (CMG): Free Stock Analysis Report Procter & Gamble Company (The) (PG): Free Stock Analysis Report To read this article on Zacks.com click here. Zacks Investment Research