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The Zacks Analyst Blog Highlights: NCI Building Systems, Jabil Circuit, Insight Enterprises, Spark Energy and Fidelity Southern

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For Immediate Release

Chicago, IL - February 08, 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 NCI Building Systems, Inc. (NYSE: NCS - Free Report ), Jabil Circuit, Inc. (NYSE: JBL - Free Report ), Insight Enterprises, Inc. (NASDAQ: NSIT - Free Report ), Spark Energy, Inc. (NASDAQ: SPKE - Free Report ) and Fidelity Southern Corporation (NASDAQ: LION - Free Report ).

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

Here are highlights from Tuesday's Analyst Blog:

Fretting Over Trump's Policies? 5 Safe Value Bets

Though the earnings season is at its peak, President Donald Trump has been keeping investors busy elsewhere. Investors keenly await clarification on the timing and scope of Trump's business-friendly policies and how the administration will balance tax cuts and infrastructure outlays with protectionist trade policies. The President has also acted promptly on executive orders ranging from a temporary immigration ban to the withdrawal from landmark trade pacts.

Investors, in the meantime, also assign greater risk premiums to European countries where anti-establishment movements are gaining traction ahead of elections. Amid such apprehensions, it will be wise to invest in value stocks. Value investors look for times of uncertainty to pick stocks at a discount, which are fundamentally stable.

Travel Ban Triggers Uncertainty

Trump banned immigration from seven Muslim-majority countries, including legal residents and visa holders. 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. German chancellor Angela Merkel said that it is "not justified to put people from a specific background or faith under general suspicion", while French president Francois Hollande said that "withdrawal into oneself is a dead-end response".

Airlines bore the brunt as well as several airports across the country saw violent protests, disrupting operations to a great extent. Such an executive order on immigration, widely known as the "Muslim Ban", is being met with resistance by an increasing number of major tech firms.

Trade War Could Hit Economy

Investors, in the meanwhile, may ignore Trump's trade rhetoric at their own peril. The administration's pledge to protect U.S. industries and redefine currency relationships could lead to a trade war with dire consequences, eventually sparking a sell-off. In order to put "America First", Trump may retreat from global trade sending exporter's currency plummeting, curbing corporate revenues and destroying consumption.

Trump has withdrawn the U.S. from the Trans-Pacific Partnership and is mulling over the imposition of a border tax on imports. The administration had accused China, Mexico, Germany and Japan of keeping their currencies weak to gain trade advantages, which is irking even those who were bullish after the election.

Caution Spreads Amid Geopolitical Risks

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 upheavals 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.

5 Top Value Stocks to Buy Now

In a sign of how large the President's policies loom over the market, an analysis of FactSet data shows that one out of four companies were anxious about Trump's policies during their most recent earnings conference calls. Add to this more political disorder across Europe and we all know why investing in value stocks is judicious.

Value investors look at uncertain times as opportunities to pick up financial sound stocks at a discount. Such companies are well-established to do business even in the worst of times and are protected against market vagaries. Successful investors like Warren Buffett also recommend choosing stocks that are momentarily underpriced compared to the underlying value of the company, especially in an investment climate marked by skeptical investor behavior.

Thanks to our new style score system , we have been able to identify five solid value stocks. Such stocks boost a Value Style Score of 'A' and a Zacks Rank #1 (Strong Buy), which offers the best opportunities in the value investing space. You can see the complete list of today's Zacks #1 Rank stocks here.

NCI Building Systems, Inc. (NYSE: NCS - Free Report ) designs, engineers, manufactures and markets metal products for the nonresidential construction industry in North America. The company's expected earnings growth rate for the current year is 37.3%, higher than the industry's projected return of 18.5%. NCI Building Systems has a price-to-earnings ratio (P/E) of 16.46, compared with 18.40 for the industry.

Jabil Circuit, Inc. (NYSE: JBL - Free Report ) provides electronic manufacturing services and solutions. The company's expected earnings growth rate for the current year is 8.3%, more than the industry's projected return of 4.6%. Jabil Circuit has a price-to-earnings ratio (P/E) of 14.43, compared with 15.40 for the industry.

Insight Enterprises, Inc. (NASDAQ: NSIT - Free Report ) provides information technology (IT) hardware, software, cloud, and service solutions. The company's expected earnings growth rate for the current year is 15.4%, more than the industry's projected return of 10.6%. Insight Enterprises has a price-to-earnings ratio (P/E) of 13.21, compared with 15 for the industry.

Spark Energy, Inc. (NASDAQ: SPKE - Free Report ) operates as an independent retail energy services company in the U.S. The company's expected earnings growth rate for the current year is 25.5%, more than the industry's projected return of 4.9%. Spark Energy has a price-to-earnings ratio (P/E) of 9.47, compared with 14.3 for the industry.

Fidelity Southern Corporation (NASDAQ: LION - Free Report ) provides financial products and services for business and retail customers primarily in the metropolitan Atlanta market, and Jacksonville, Orlando, and Sarasota-Bradenton, Florida markets. The company's expected earnings growth rate for the current year is a steady 5.1%. Fidelity Southern has a price-to-earnings ratio (P/E) of 15.11, compared with 20.3 for the industry.

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

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

Jabil Circuit, Inc. (JBL): Get Free Report

Insight Enterprises, Inc. (NSIT): Get Free Report

Spark Energy, Inc. (SPKE): Get Free Report

Fidelity Southern Corporation (LION): Get Free 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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