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The Zacks Analyst Blog Highlights: Best Buy, NCI Building Systems, Teck Resources, Children's Place and Rogers

For Immediate Release

Chicago, IL - February 02, 2017 - 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 Best Buy Co., Inc. (NYSE: BBY - Free Report ), NCI Building Systems, Inc. (NYSE: NCS - Free Report ), Teck Resources Limited (NYSE: TECK - Free Report ), Children's Place, Inc. (NASDAQ: PLCE - Free Report ) and Rogers Corporation (NYSE: ROG - Free Report ).

Today, Zacks is promoting its ''Buy'' stock recommendations. Get #1Stock of the Day pick for free.

Here are highlights from Wednesday's Analyst Blog:

5 Top Stocks for a Tricky February

There are signs that stocks, which have rallied on hopes that President Donald Trump's slew of policies will prove favorable for the Wall Street, may have to scale down from the recent highs. Trump's signing of an executive order to temporarily restrict immigration saw much of an uprising, eventually affecting stocks and bolstering traditionally safe heaven assets such as bonds and gold. In the wake of such widespread chaos, investors are bracing for more political upheavals across Europe.

The U.S. economy registered tepid growth during the last three months of 2016. Meanwhile, the gauge of consumer confidence retreated from its highest level in 15 years in the month of January. Consumer confidence data slipped from 113.3 in December to a reading of 111.8 in January. Notably, the month of February has traditionally seen weak numbers just after the election. In such a scenario, it is judicious to invest in stocks which have strong fundamentals, are protected against market vagaries and tend to increase capital value.

Trump's Stock-Market Honeymoon Ends

Market bulls argue that Trump's business-friendly policies focused on tax cuts, deregulation and infrastructure spending bode well for the economy, but, investors have got a whiff that the path higher will not be quite smooth. Investors haven't been able to recover from Trump's recent executive order to tighten immigration rules. The order will temporarily ban immigration into the U.S. of Iraqi, Syrian, Iranian, Sudanese, Libyan, Somali and Yemeni citizen while seeking "extreme vetting" procedures for those allowed to enter the nation. Trump has also pledged to "keep radical Islamic terrorists out of the United States of America".

This decision has drawn congressional criticism and widespread protests. These protectionist measures may also cloud the path for pro-business initiatives as several world and corporate leaders condemn the ban. Airlines bore the brunt as well as several airports across the country saw violent protests, disrupting operations to a great extent. Tech firms also faced obstacles in sourcing labor from foreign lands.

Geopolitical Risks Surface

While a highly polarized political environment and Trump's confrontational approach are expected to fuel volatility in the market, investors are also preparing for political cataclysms across Europe including French and German elections later this year.

French Socialist Member of Parliament and supporters have started to break ranks with their party after the primary election win of leftwing presidential nominee Benoît Hamon, offering support to independent candidate Emmanuel Macron. In Germany, Martin Schulz is to run as the Social Democrat candidate for chancellor after Sigmar Gabriel turned down the chance to oppose Angela Merkel in parliamentary election.

Domestic Growth Tepid

The U.S. economy, in the meanwhile, slowed down more than expected in the fourth quarter after a plunge in shipments of soyabeans affected exports. Annual growth failed to reach 3% for the 11th straight year, indicating the hurdles Trump administration faces to speed up expansion.

The fourth-quarter output of goods and services increased at a seasonally adjusted annual rate of 1.9% from the previous three months. It was lower than the consensus estimate of 2.2% growth. A widening of the foreign-trade deficit marred growth during the final three months of 2016. In the fourth quarter, exports fell 4.3%, the steepest decline since the first quarter of 2015.

February Weak in Post-Election Years

Seasonal patterns also support the notion of a downturn. February has been the weakest month for stocks over the past four decades, averaging just a 0.06% gain. In fact, in post-election years, February tends to be weaker. The average return has decreased 1.85% since 1977.

Lest we forget, markets have gone 74 days without a 1% daily decline, hence, the seasonality pattern increases the odds for a worse decline in February.

5 Best Stocks to Buy in February

Amid such uncertainties, it seems sensible to invest in companies that are well-established and financially sound and will continue to do business even in the worst of times. The best way to go about doing so is by creating a portfolio of Zacks Rank #1 (Strong Buy) stocks. You can see the complete list of today's Zacks #1 Rank stocks here.

We have selected five such stocks that also boast a VGM score of 'A.' Here V stands for Value, G for Growth and M for Momentum and the score is a weighted combination of these three metrics. Such a score allows you to eliminate the negative aspects of stocks and select winners.

Best Buy Co., Inc. (NYSE: BBY - Free Report ) operates as a retailer of technology products, services and solutions in the U.S. In the last one-year period, the company soared 59.4%. Best Buy's expected earnings growth rate for the current year is 17.74%, in contrast to the industry's projected negative return of 5.53%. The Zacks Consensus Estimate for its current year earnings rose 7.6% over the last 90 days.

NCI Building Systems, Inc. (NYSE: NCS - Free Report ) designs, engineers, manufactures and markets metal products for the nonresidential construction industry in North America. Over the last one year, the company rallied 54.6%. NCI Building Systems' expected earnings growth rate for the current year is 37.3%, more than the industry's projected return of 21.54%. The Zacks Consensus Estimate for its current year earnings climbed 8.9% over the last 90 days.

Teck Resources Limited (NYSE: TECK - Free Report ) explores, develops and produces natural resources in the Americas, the Asia Pacific, and Europe. In the last one-year period, the company skyrocketed 557.9%. Teck Resources' expected earnings growth rate for the current year is 177.47%, way ahead of the industry's estimated return of 67.68%. The Zacks Consensus Estimate for its current year earnings soared 92.9% over the last 90 days.

The Children's Place, Inc. (NASDAQ: PLCE - Free Report ) operates as a children's specialty apparel retailer. Over the last one year, the company has gained 49%. Children's Place's expected earnings growth rate for the current year is 43.67%, in contrast to the industry's projected negative return of 6.72%. The Zacks Consensus Estimate for its current year earnings climbed 10.2% over the last 90 days.

Rogers Corporation (NYSE: ROG - Free Report ) designs, develops, manufactures and sells engineered materials and components worldwide. In the last one-year period, the company climbed 68.4%. Rogers' expected earnings growth rate for the current year is 20.82%, higher than the industry's estimated return of 12.28%. The Zacks Consensus Estimate for its current year earnings rose 11.9% over the last 90 days.

Zacks' Top 10 Stocks for 2017

In addition to the stocks discussed above, would you like to know about our 10 finest buy-and-hold tickers for the entirety of 2017?

Who wouldn't? As of early December, the 2016 Top 10 produced 5 double-digit winners including oil and natural gas giant Pioneer Natural Resources which racked up a stellar +50% gain. The new list is painstakingly hand-picked from 4,400 companies covered by the Zacks Rank. Be among the very first to see it>>

Today, Zacks is promoting its ''Buy'' stock recommendations. Get #1 Stock of the Day pick for free .

About Zacks Equity Research

Zacks Equity Research provides the best of quantitative and qualitative analysis to help investors know what stocks to buy and which to sell for the long-term.

Continuous coverage is provided for a universe of 1,150 publicly traded stocks. Our analysts are organized by industry which gives them keen insights to developments that affect company profits and stock performance. Recommendations and target prices are six-month time horizons.

Strong Stocks that Should Be in the News

Many are little publicized and fly under the Wall Street radar. They're virtually unknown to the general public. Yet today's 220 Zacks Rank #1 "Strong Buys" were generated by the stock-picking system that has nearly tripled the market from 1988 through 2015. Its average gain has been a stellar +26% per year. See these high-potential stocks free >>.

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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 https://www.zacks.com/performance for information about the performance numbers displayed in this press release.

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Best Buy Co., Inc. (BBY): Free Stock Analysis Report

NCI Building Systems, Inc. (NCS): Free Stock Analysis Report

Teck Resources Ltd (TECK): Free Stock Analysis Report

Children's Place, Inc. (The) (PLCE): Free Stock Analysis Report

Rogers Corporation (ROG): Free Stock Analysis Report

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


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

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