UBER - Diagnosing the Economy Ahead of World Health Day: 6 Picks | Benzinga
After wrapping up a robust first quarter on strong corporate profits, enthusiasm around AI and hopes that the Fed will cut rates, Wall Street's rally fizzled out to start Q2 on uncertainty over the timing of rate cuts.
Let us examine the health of the U.S. economy ahead on the World Health Day and bring to investors' attention the key developments and some solid picks for a robust investment portfolio.
Similar to the six vital nutrients required for good health, six pillars support the economy. Here, we have picked six essential market nutrients in the form of sectors and then zeroed in on stocks that have a Zacks Rank #1 (Strong Buy) or 2 (Buy) and a higher market cap in their respective sectors using the Zacks Stock Screener. Other parameters considered include a VGM Score of B or better, positive current-year earnings estimate revisions over the past 30 or 60 days, positive current-year EPS growth, and a place in a top-ranked Zacks industry (in the top 45%).
Vitamins: Consumer Sector
The consumer sector has been enjoying strong optimism led by stronger spending power, wage growth and a lower unemployment rate. The potential rate cuts will lead to reduced borrowings, thereby increasing consumer spending. It will also lead to higher demand for all types of products and services in the economy, taking the consumer sector higher. This will continue to give the economy its regular dose of vitamins.
Within this sector, Lancaster Colony Corporation (NASDAQ: LANC), a manufacturer and marketer of specialty food products for the retail and foodservice markets, is a great pick for investors.
This Zacks Rank #2 company saw a positive earnings estimate revision of 21 cents over the past 60 days for this fiscal year (ending June 2024). It has an expected earnings growth rate of 34%. Lancaster Colony belongs to a top-ranked Zacks industry (top 28%) and has a VGM Score of B, suggesting its potential for solid growth in the months ahead. The stock has gained about 22% over the past three months.
Proteins: Financial Sector
Like protein, the financial sector, helps in carrying out a huge array of functions through its banks and financial institutions. The sector facilitates growth in ...