For Immediate Release
Chicago, IL - May 9, 2018 - 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 Huntsman Corporation HUN , Louisiana-Pacific Corporation LPX , Bunge Limited BG , ADT Inc. ADT and American Equity Investment Life Holding Company AEL .
Here are highlights from Tuesday's Analyst Blog:
5 Top-Ranked Momentum Stocks for a Market Rebound
Though volatility will continue to play foul with Wall Street, the recent surge in oil prices and tech sector renewed some confidence in the riskier assets.
Crude oil topped the $70-per-barrel mark for the first time since November 2014 thanks to Iran sanction worries, falling Venezuela production, historic output cut deal and higher demand. The rally in the commodity has spread major optimism in the energy sector, pushing many stocks to new highs.
Meanwhile, the technology sector has been powered by a spate of earnings releases from the major players, especially Apple. This is because shares of AAPL are riding higher at the fastest pace in over nine years, logging in the longest six-day winning streak since Mar 17, 2009, skyrocketing 14.1%. The stock has scaled multiple highs surpassing $185 for the first time on May 7 and is heading toward a record trillion-dollar market value.
Additionally, stronger-than-expected earnings are providing the biggest catalyst. Notably, Q1 earnings season is on track to record its best quarter in seven years with earnings expected to be up 23.2% on revenue growth of 8.7%. This is much higher than 13.4% earnings growth and 8.1% revenue growth recorded in Q4.
Given the positive developments, momentum investing would be a winning strategy for those seeking higher returns in a short spell. This is because the strategy looks to fetch profits from buying hot stocks that have shown an uptrend over the past few weeks or months.
How to Pick Right Stocks?
Handpicking momentum stocks has now become a fairly simple task thanks to the Zacks Momentum Score which indicates the favorable time to enter a stock to take advantage of the momentum with the highest probability of success. Our research shows that stocks with a Momentum Style Score of A or B when combined with a Zacks Rank #1 (Strong Buy) or 2 (Buy) offer the best upside potential with a stronger momentum effect.
Hence, we have used the Zacks Stock Screener to find out the best stocks in the momentum space. The parameters include a Momentum Score of A, and a Zacks Rank #1 or 2. Further, we have narrowed down the list to locate stocks with below-industry P/E and P/B ratios, and a top Zacks industry rank (top 40%).
Here are the five picks:
Based in The Woodlands, TX, Huntsman is among the world's largest global manufacturers of differentiated and commodity chemical products for a variety of industrial and consumer applications. You can see the complete list of today's Zacks #1 Rank stocks here .
Zacks Rank: #1
Market Cap: $7.07 billion
Zacks Industry Rank: Top 10%
P/E: 9.51 versus industry average of 13.98
P/B: 1.87 versus industry average of 2.61
Based in Nashville, TN, Louisiana-Pacific manufactures building products primarily for use in new home construction, repair and remodeling, and outdoor structures, as well as light industrial and commercial construction applications.
Zacks Rank: #1
Market Cap: $4.1 billion
Zacks Industry Rank: Top 5%
P/E: 9.73 versus industry average of 20.37
P/B: 2.44 versus industry average of 2.85
Based in White Plains, NY, Bunge is an integrated global agribusiness and food company spanning the farm-to-consumer food chain.
Zacks Rank: #2
Market Cap: $9.92 billion
Zacks Industry Rank: Top 24%
P/E: 14.28 versus industry average of 17.39
P/B: 1.48 versus industry average of 1.98
Based in Boca Raton, FL, ADT provides security and automation solutions for homes and businesses in the United States and Canada.
Zacks Rank: #2
Market Cap: $6.05 billion
Zacks Industry Rank: Top 9%
P/E: 9.93 versus industry average of 14.81
P/B: 1.84 versus industry average of 2.45
American Equity Investment Life Holding Company
Based in West Des Moines, IA, American Equity provides life insurance products and services in the United States.
Zacks Rank: #2
Market Cap: $2.63 billion
Zacks Industry Rank: Top 31%
P/E: 8.62 versus industry average of 9.34
P/B: 1.04 versus industry average of 1.09
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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 Louisiana-Pacific Corporation (LPX): Free Stock Analysis Report Huntsman Corporation (HUN): Free Stock Analysis Report American Equity Investment Life Holding Company (AEL): Free Stock Analysis Report Bunge Limited (BG): Free Stock Analysis Report ADT Inc. (ADT): Free Stock Analysis Report To read this article on Zacks.com click here. Zacks Investment Research