For Immediate Release
Chicago, IL - December 27, 2016 - Today, Zacks Investment Ideas feature highlights Features: S&P 500 ETF(NYSEARCA: SPY - Free Report ) , Western Digital(NASDAQ: WDC - Free Report ) , E*Trade Financial(NASDAQ: ETFC - Free Report ) and Goldman Sachs(NYSE: GS - Free Report ) .
3 STOCKing Stuffers for 2017
The market has been a bit naughty at times this year, but it will certainly finish out in the nice column. The S&P 500 ETF(NYSEARCA: SPY - Free Report ) is up an impressive 10% this year, while the Dow looks to eclipse the 20,000 mark before years end.
Markets sold off violently last January, but all signs point to continued momentum and a strong start to the year. Investors should look to benefit from solid returns if they stick with high ranked stocks with earnings growth and technical strength. Below are three Zacks Rank #1 (Strong Buy) stocks to buy as we head into the New Year.
Western Digital(NASDAQ: WDC - Free Report ) develops, manufactures, and sells data storage devices and solutions worldwide. The company's hard drives are designed for the desktop PC market and the high-end hard drive market and, recently, for the emerging market for hard drives specially designed for audio-visual applications, such as new video recording devices. The company was founded in 1970, is based in Irvine, California and now has over 72,000 employees.
Western Digital has a market cap of $20 Billion with a Forward PE of 13. The stock sports Zacks Style Scores of "B" in Value and "C" in Growth. The company sits in an industry ranked 20 out of 265 (Top 8%) of the Zacks Industry Rank and pays a 2.9% dividend.
Last quarter's earnings have put a charge into the stock. Since the report back in October analysts have been raising estimates and price targets. Fiscal year 2017 has seen estimates revised 17% higher over the last two months, from $4.63 to $5.43.
E*Trade Financial(NASDAQ: ETFC - Free Report ) is a Zacks Rank #1 (Strong Buy) that financial services company and an online broker age. E*Trade was founded in 1982 and is based in New York, New York. It has a market cap of $9.6 billion with a forward PE of 19.
The company sits in an industry ranked 40 out of 265 (Top 15%) of the Zacks Industry Rank. And its Sector Rank is in the top 13%, or 2 out of 16. The stock sports Zacks Style Scores of "C" in Value and "A" in Momentum. Growth is an issue for the company so the challenge is to find ways to become more profitable. The recent rise in interest rates will help.
The next couple quarters show moderate ticks up in estimates revisions. The current quarter has seen a 10% jump over the last 90 days, while next quarters has fallen. Keep in mind that the next couple quarters won't be in a factor in what drives the stock. What will matter is the actions taken by the Trump Administration that will help the company down the road.
In anticipation of that, analyst will start taking estimates higher on the longer time frames. For now 2017 is looking pretty good, with a 4.5% tick higher over the last 90 days.
Goldman Sachs(NYSE: GS - Free Report ) is a Zacks Rank #1 (Buy) that is a global investment banking and securities firm, providing a full range of investing, advisory and financing services worldwide to a substantial and diversified client base. Their customers includes corporations, financial institutions, governments, and high net worth individuals.
The company has a market cap of $96 billion with a forward PE of 15. The stock sports Zacks Style Scores of "F" in both Growth and Value, but an "A" in Momentum. Goldman pays a dividend of 1.08% and has expected EPS growth of 11.5%.
Over the last two months, estimates for the current year have been revised 7% higher, from $14.33 to $15.38. Higher interest rates and the potential for a Dodd-Frank repeal have investors giddy for the stock.
Lookout for the year to start off right with a classic January effect. This is when smart money piles into stocks they think will outperform for the year. The effect typically lifts indexes in general, but investors will be better served if they stick to top ranked stocks.
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