For Immediate Release
Chicago, IL - July 09, 2015 - 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. Mutual Funds recently featured in the blog include the Fidelity Select Retailing Portfolio ( FSRPX ), Cohen & Steers Real Estate Securities A ( CSEIX ), VALIC Company I Health Sciences ( VCHSX ) and Fidelity Select Medical Equipment & Systems ( FSMEX ).
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Here are highlights from Wednesday's Analyst Blog:
Investors Love These Mutual Fund Sectors
A study from Credit Suisse titled " Carving Up The Consensus: Comparing Hedge Fund, Mutual Fund, & Sell-Side Positioning By Industry Group, For US Large Cap & Small Cap " has presented an investors' love and hate list. The analyst team for the study was led by Lori Calvasina and Sara Mahaffy, which found out that food and staples retailing; real estate; and pharmaceuticals, biotech and life sciences were loved across groups in the large cap category. For the small cap consensus, banks, health care equipment and services, and software and services enjoyed positive views.
These sectors were the most loved as they had positive views for each of the three sub heads - Sell-Side Ratings Relative to Market, Mutual Fund Overweights and Hedge Fund Net Exposure.
Large-Cap Consensus Views
Food & Staples Retailing: The sector comes under the broader consumer staples or Retail industry. The consumer sector is currently experiencing a robust run. The consumer sector is having a good run on the back of moderate economic recovery, better job prospects, improved business and renewed optimism. Rising wages and cheaper fuel are the other positives. A decline in commodity prices also may improve profit margins for certain staples companies. (Read: 3 Funds to Buy as Consumer Sector Trends Up )
Fidelity Select Retailing Portfolio ( FSRPX ) invests a minimum of 80% of its assets in securities of firms involved in merchandising finished goods and services to consumers.
FSRPX currently carries a Zacks Mutual Fund Rank #1 (Strong Buy) . It has solid year-to-date and 1-year returns of 7% and 20.9%, FSRPX also boasts 3 and 5 year annualized returns of 22.4% and 24.1%. FSRPX has an annual expense ratio of 0.81%, lower than the category average of 1.48% and carries no sales load.
Real Estate: The Real Estate funds category was the second biggest gainer among the sector equity funds last year. However, the sector had a rough patch in 2015, until the latest batch of economic data renewed optimism. The Real Estate sector recently received a shot in the arm due to new home sales, construction spending and housing starts which revealed that the housing recovery is well and truly on track. Also, most of these have hit multi-year highs. (Read: Will Latest Data Help Real Estate Funds Rebound? )
Cohen & Steers Real Estate Securities A ( CSEIX ) seeks total return. CSEIX invests a large chunk of its assets in common stocks of companies whose operations are related to the real estate domain and REITs. The fund is expected to invest not more than 20% of its assets in non-U.S. companies including that from emerging economies.
CSEIX currently carries a Zacks Mutual Fund Rank #2 (Buy). Though the year-to-date return is a negative 1.8% now, its 1-year return and 3 and 5 year annualized returns are 9.7%, 11.4% and 15.8%. CSEIX has an annual expense ratio of 1.21%, lower than the category average of 1.34%.
Pharma, Biotech & Life Sciences : The Healthcare sector continues to be the best performer among all S&P sectors this year as well. M&As continue to play a major role in the pharma and biotech sector and are not showing any signs of slowing down. In-licensing activities and collaborations for the development of pipeline candidates have also increased significantly. Higher demand for medicines, government initiatives for healthcare, new patient population and increasing use of generics should help drive demand.
VALIC Company I Health Sciences ( VCHSX ) invests a majority of its assets in common stocks of healthcare products, medicine or life sciences related companies. VCHSX focuses mainly on investing in large and mid-cap companies. A maximum of 35% of VCHSX's assets is invested foreign companies.
VCHSX currently carries a Zacks Mutual Fund Rank #1 (Strong Buy). The year-to-date and 1-year returns are 20.4% and 40.7%, VCHSX also boasts 3 and 5 year annualized returns of 35.5% and 33.8%. VCHSX has an annual expense ratio of 1.11%, lower than the category average of 1.37% and carries no sales load.
Joining the Pharma, Biotech & Life Sciences sector from the broader Healthcare sector is Healthcare Equipment & Services. In this sphere, Fidelity Select Medical Equipment & Systems ( FSMEX ) is worth a look. FSMEX invests a major portion of its assets in common stocks of companies principally engaged in research, development, manufacture, distribution, supply, or sale of medical equipment and devices and related technologies. FSMEX offers dividends and capital gains twice a year in April and December.
FSMEX currently carries a Zacks Mutual Fund Rank #1 (Strong Buy). The year-to-date and 1-year returns are 8.6% and 20.1%, FSMEX also boasts 3 and 5 year annualized returns of 25.9% and 20.7%. FSMEX has an annual expense ratio of 0.77%, lower than the category average of 1.37% and carries no sales load.
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