Quantcast

The Zacks Analyst Blog Highlights: Camden National, Meridian, Oaktree Capital, OP and SJW


Shutterstock photo

For Immediate Release

Chicago, IL - May 8, 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: Camden National Corp. CAC , Meridian Bancorp Inc. EBSB ,Oaktree Capital Group LLC OAK , OP Bancorp OPBK and SJW Group SJW .

Here are highlights from Tuesday's Analyst Blog:

U.S.-China Trade Conflict Intensifies: How to Invest

After an impressive bull run in the first four months of this year, it seems volatility is once again ready to rear its ugly face in Wall Street. Trade-related tensions between the United States and China escalated for the first time in 2019 following a tweet by President Trump on May 5, hinting at more tariffs on China. However, the market recovered partially as negotiations are still going.

Notably, trade-related tensions and the Fed's aggressive monetary stance were largely blamed for severe market volatility in 2018 which resulted in Wall Street's weakest performance in a decade. Although the Fed adopted a dovish stance since the beginning of 2019, trade spat heightened yet again when it was finally moving toward mutual agreement.

Trade Tensions Escalate

On May 5, President tweeted that the U.S. government will increase tariffs from 10% to 25% on $200 billion of Chinese goods effective May 10. Already, $25 billion Chinese exports are facing 25% tariff in the United States. Moreover, Trump also threatened to impose 25% tariff on additional $325 billion of Chinese goods any time soon.

U.S. officials accuse China of "erosion of commitments"  and said China is backtracking on commitments which it made during the negotiation process. U.S. officials are worried of a change in tone of Chinese delegations over the weekend.

U.S. Treasury Secretary Steven Mnuchin blamed China of denying clear commitments on some key trade issues which could completely alter the trade deal. Notably, the trade deal was expected to materialize by the end of this week.

Meanwhile, on May 6, CNBC reported that China hasn't cancelled the next round of negotiations as reported earlier. Chinese vice premier Liu He will lead a short delegation instead of a 100-member strong team to Washington later this week.

Effects of Tariffs

Per the Office of the U.S. Trade Representative, the country imported $539.5 billion of goods from China in 2018. U.S. trade deficit with China was at $419.2 billion last year. Therefore, virtually all Chinese goods will face U.S. tariffs if Trump administration levied duties on all proposed items.

Investment management firm Morgan Stanly estimated a 0.3% drop in Chinese GDP and 8-12% erosion of emerging markets valuation if the United States hiked tariffs. Barclays predicted that new tariffs will hurt 3-5% of Chinese exports and 0.5% of its GDP.

The United States will also bear the brunt of tariffs. China is the largest trading partner of the United States. A weak economy in China, the largest market for high-tech products, will generate headwinds for U.S. technology companies.

Moreover, China plays the role of a low-cost supplier of intermediary products and other inputs to high-tech U.S. industries. Tariffs will raise the cost of these products making it very difficult for businesses to formulate long-term plans.

How to Invest?

Further delay in forming a trade deal between the two largest trading nations of the world will result in market volatility. The situation can become worse if the tariff war escalates further. Notably, the IMF has reduced its global growth projection primarily owing to the U.S.-China trade spat.

At this juncture, it will be prudent to invest in high-yielding low-beta stocks, with a favorable Zacks Rank to keep one's portfolio safe from day-to-day market fluctuations. The beta is equal to 1, which means that the stock is as volatile as the market. So, a stock is relatively more volatile if it has beta greater than 1 and less volatile if beta is less than 1. High dividend will give more protection to your portfolio on the market's downslide.

We have narrowed down our search to five such stocks, each carrying a Zacks Rank #1 (Strong Buy). You can see the complete list of today's Zacks #1 Rank stocks here .

Camden National Corp. provides commercial and consumer banking products and services to consumer, institutional, municipal, non-profit, and commercial customers. It has a beta of 0.80 and a dividend yield of 2.58%. It has expected earnings growth of 10.6% for the current year. The Zacks Consensus Estimate for the current year has improved by 5.6% over the last 30 days.

Meridian Bancorp Inc. provides financial services to individuals and businesses. It has a beta of 0.53 and a dividend yield of 1.60%. It has expected earnings growth of 18.9% for the current year. The Zacks Consensus Estimate for the current year has improved by 5% over the last 30 days.

Oaktree Capital Group LLC operates as a global investment management firm that focuses on alternative markets. It has a beta of 0.54 and a dividend yield of 6.03%. It has expected earnings growth of 31.6% for the current year. The Zacks Consensus Estimate for the current year has improved by 3.3% over the last 30 days.

OP Bancorp operates as the bank holding company for Open Bank that provides banking products and services in California. It has a beta of 0.78 and a dividend yield of 1.90%. It has expected earnings growth of 16.9% for the current year. The Zacks Consensus Estimate for the current year has improved by 22.4% over the last 30 days.

SJW Group engages in the production, purchase, storage, purification, distribution, wholesale and retail sale of water in the United States. It has a beta of 0.06 and a dividend yield of 1.95%. It has expected earnings growth of 29.1% for the current year. The Zacks Consensus Estimate for the current year has improved by 11.4% over the last 60 days.

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>>

Media Contact

Zacks Investment Research

800-767-3771 ext. 9339

support@zacks.com

http://www.zacks.com

Past performance is no guarantee of future results. Inherent in any investment is the potential for loss . This material is being provided for informational purposes only and nothing herein constitutes investment, legal, accounting or tax advice, or a recommendation to buy, sell or hold a security. No recommendation or advice is being given as to whether any investment is suitable for a particular investor. It should not be assumed that any investments in securities, companies, sectors or markets identified and described were or will be profitable. All information is current as of the date of herein and is subject to change without notice. Any views or opinions expressed may not reflect those of the firm as a whole. Zacks Investment Research does not engage in investment banking, market making or asset management activities of any securities. These returns are from hypothetical portfolios consisting of stocks with Zacks Rank = 1 that were rebalanced monthly with zero transaction costs. These are not the returns of actual portfolios of stocks. The S&P 500 is an unmanaged index. Visit http://www.zacks.com/performance for information about the performance numbers displayed in this press release.


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

SJW Group (SJW): Free Stock Analysis Report

Camden National Corporation (CAC): Free Stock Analysis Report

Oaktree Capital Group, LLC (OAK): Free Stock Analysis Report

Meridian Bancorp, Inc. (EBSB): Free Stock Analysis Report

OP Bancorp (OPBK): Free Stock Analysis Report

To read this article on Zacks.com click here.

Zacks Investment Research

The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.





This article appears in: Investing , Stocks
Referenced Symbols: SJW , CAC , OAK , EBSB , OPBK



More from Zacks.com

Subscribe







Zacks.com
Contributor:

Zacks.com

Equity Research












Research Brokers before you trade

Want to trade FX?