For Immediate Release
Chicago, IL - January 18, 2016 - 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 Amazon.com, Inc. ( AMZN ), Delta Air Lines, Inc. ( DAL ), Gilead Sciences Inc. ( GILD ), Citrix Systems, Inc. ( CTXS ) and Motorola Solutions, Inc. ( MSI ).
Today, Zacks is promoting its ''Buy'' stock recommendations. Get #1Stock of the Day pick for free .
Here are highlights from Friday's Analyst Blog:
5 Strong Growth S&P 500 Stocks to Buy on the Selloff
The S&P 500 posted its worst-ever five-day start to a year in 2016. China's sluggish economic growth and slump in crude oil prices adversely affected the index. The S&P 500's year-to-date return has fallen 6%. The index's dismal performance came in after it had snapped a multi-year winning streak to end in the red in 2015.
The index has now entered "correction" territory, with the S&P 500 closing at its lowest level on Wednesday since Sep 29, 2015. Hence, it will be prudent to invest in growth stocks which should get a lift once the index recognizes their full potential. Moreover, the index had already gained momentum on Thursday boosted by a rebound in oil prices.
Let's now look into the factors that dented the S&P 500 recently:
Weak Chinese Economic Data
S&P 500 started 2016 on a disastrous note after weak Chinese economic data stoked fears about global growth prospects. China manufacturing purchasing managers' index declined to 48.2 in December from 48.6 in November, according to Caixin Media Co. The index fell below 50 for the 10th straight month. Any reading below 50 indicates contraction in manufacturing activity. The People's Bank of China responded to this dismal data by injecting short-term funds worth 130 billion yuan ($19.9 billion) into the country's financial system in order to stimulate its ailing economy.
However, a second batch of dismal Chinese economic data renewed fresh concerns about decelerating growth in the world's second largest economy, which eventually had a negative impact on the S&P 500. According to Caixin Media Co. and research firm Markit, the Caixin China services purchasing managers' index dropped to 50.2 in December from 51.2 in November. The reading was a hair's breadth from 50 that separates expansion from contraction.
Additionally, Beijing's move to allow the yuan to fall further against the dollar last Thursday raised concerns about capital flight and the health of the world's second largest economy.
Chinese Equities Fall
The People's Bank of China's downward adjustment to the yuan resulted in a steep fall in Chinese equities. China's stock markets had halted trading after only 30 minutes on Thursday last week, the shortest trading day in its 25-year history. Trading was stopped after the newly installed circuit breaker system was triggered for the second time by the China Securities Regulatory Commission.
The system was activated by sharp moves in an index. While a 5% move resulted in a 15-minute halt to trading, a 7% move resulted in trading being stopped for the rest of the session. China's securities regulator decided to suspend the circuit breaker as the newly installed mechanism was criticized for escalating volatility rather than fixing it.
Persistent Rout in Oil Prices
Global oil prices took a beating after bearish economic data from China raised concerns about demand for oil in an already oversupplied market. Rise in crude stockpiles along with jump in gasoline and distillate supplies also had a negative impact on oil prices.
The U.S. Energy Information Administration reported that crude inventories increased by 200,000 barrels for the week ending Jan 8. Additionally, gasoline supplies increased by 8.4 million barrels and distillate stockpiles rose 6.1 million barrels last week. Separately, fundamental factors including a stronger dollar and concerns that Iran may add its barrels to a glutted global market also continued to weigh on oil prices.
5 Stocks to Buy as S&P 500 Enters Correction Territory
The S&P 500 remained in "correction" mode as oil prices sagged to new lows and hammered energy stocks. The index dropped 2.5% on Wednesday, its biggest one-day percentage drop since September. This loss has taken the S&P 500's decline since last year's high beyond 10%, the commonly accepted definition of correction.
Meanwhile, all is not that gloomy since the broader markets made a comeback yesterday, banking on a rebound in oil prices. Oil prices gained after some players covered short positions. The S&P 500 climbed above its key technical level of 1,900 with 11 out of 12 sectors of the S&P 500 ending in the green. Since the long term seems to bode well for stocks after the initial jitters, it will be a wise move to invest in growth stocks. Moreover, by purchasing stocks right after a dip, investors are essentially buying shares at a discount.
With the help of our new style score system , we have short-listed Zacks Rank #1 (Strong Buy) and Zacks Rank #2 (Buy) stocks with a Growth Style Score of 'A' or 'B' that hold immense growth potential despite declining in recent weeks. Our research shows that stocks with a Growth Style Score of 'A' or 'B' when combined with a favorable Zacks Rank offer the best investment opportunities in the growth investing space.
Amazon.com, Inc. ( AMZN ) seeks to be the world's most customer-centric company, where customers can find and discover anything they may want to buy online. AMZN is poised to grow despite declining 9.9% in the past four weeks. AMZN has a Zacks Rank #2 (Buy) and Growth Style Score of 'A'.
Delta Air Lines, Inc. ( DAL ) provides scheduled air transportation for passengers and cargo worldwide. DAL is positioned to grow despite declining 9.7% in the past four weeks. DAL has a Zacks Rank #1 (Strong Buy) and Growth Style Score of 'B'.
Gilead Sciences Inc. ( GILD ) a biopharmaceutical company, discovers, develops, and commercializes medicines. GILD is poised to grow despite declining 7.4% in the past four weeks. GILD has a Zacks Rank #1 (Strong Buy) and Growth Style Score of 'B'.
Citrix Systems, Inc. ( CTXS ) provides virtualization, mobility management, networking and Software as Service solutions worldwide. CTXS is positioned to grow despite declining 10.7% in the past four weeks. CTXS has a Zacks Rank #1 (Strong Buy) and Growth Style Score of 'B'.
Motorola Solutions, Inc. ( MSI ) provides mission-critical communication infrastructure, devices, software, and services in North America, Latin America, the Asia Pacific, the Middle East, Europe, and Africa. MSI is positioned to grow despite declining 7.4% in the past four weeks. MSI has a Zacks Rank #1 (Strong Buy) and Growth Style Score of 'B'.
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