For Immediate Release
Chicago, IL – November 6, 2019 – 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: Cintas Corp. CTAS, Sleep Number Corp. SNBR, Agnico Eagle Mines Ltd. AEM and Square Inc. SQ.
Here are highlights from Tuesday’s Analyst Blog:
4 Sectors Set to Surge in November: Stocks to Buy
Wall Street climbed to a record high in recent session and the trend is likely to continue this month given solid momentum and a historical outperformance. A better-than-expected earnings season, easing policies, renewed trade deal optimism and a solid jobs report are boosting investors’ sentiment. Notably, the S&P 500 is heading for its best performance since 2013, having gained more than 20% this year (read: S&P 500 at Record High: 6 ETF Winners of Last Week).
If history is any guide, the major bourses are set to hit a new record in November. This is because November has been among the best months for markets over the past decade. According to a CNBC analysis of Kensho, all the three major indices have traded positively 80% of the time in November since 2009. On average, the S&P 500 gained 1.8%, while the Nasdaq was up more than 1.6% and the Dow Jones Industrial Average rose 2%. Per CFRA, November is the third-best month for the S&P 500, with 1.3% gain, on average, two-third of the time since World War II.
November marks the start of the best six months for the Dow Jones and the S&P 500, and the best eight-month period for the Nasdaq, according to Almanac, citing “fourth-quarter cash inflows from institutions.” Additionally, November has been the third-best month for the Dow since 1950 and the Nasdaq since 1971. The month has also been the second best for the S&P 500 for nearly 70 years and the small-capitalization Russell 2000 Index since 1979.
Moreover, seasonality plays a vital role in the stock market surge during the six-month period from November to April. Cyclical stocks from consumer discretionary, industrials, financials, and technology tend to benefit the most. Per a CNBC analysis of Kensho, industrials, consumer discretionary and materials gained 3.33%, 3.13% and 2.71%, respectively, on average, over the past decade. This is especially true as investors look for more growth rather than being defensive when cyclical trading starts. This suggests that investors should buy stocks during this bustling time in the market.
As a result, we have highlighted one stock from each of the four sectors that could make a great play for investors. We have used a Growth Score of A, a top-ranked Zacks industry (top 45%) and an estimated double-digit earnings growth for the current year (see: all the Top Ranked ETFs).
Cintas Corp.:Based in Cincinnati, OH, Cintas Corporation provides specialized services to businesses of all types throughout North America. The company has an estimated earnings growth rate of 12.76% for fiscal year (ending May 2020). The stock has a Zacks Rank #2.
Sleep Number Corp.:Based in Minneapolis, MN, Sleep Number provides sleep solutions and services in the United States. It designs, manufactures, markets, retails, and services beds, bases, and bedding accessories under the Sleep Number name. The stock has an estimated earnings growth rate of 36.46% for this year and carries a Zacks Rank #2 (read: ETFs in Focus as US Consumer Confidence Drops in October).
Agnico Eagle Mines Ltd.:Based in Toronto, Canada, Agnico Eagle Mines is a gold producer with mining operations in Canada, Mexico and Finland, and exploration activities in Canada, Europe, Latin America and the United States. The stock has an estimated earnings growth of 168.57% for this year and has a Zacks Rank #1. You can see the complete list of today’s Zacks #1 Rank stocks here.
Square Inc.:Based in San Francisco, CA, Square offers financial and marketing services through its comprehensive commerce ecosystem that helps sellers to start, run and grow their businesses. The stock has an estimated earnings growth of 63.83% for this year and sports a Zacks Rank #1.
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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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Square, Inc. (SQ) : Free Stock Analysis Report
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Sleep Number Corporation (SNBR) : Free Stock Analysis Report
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