For Immediate Release
Chicago, IL – November 09, 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 ACCO Brands Corporation (NYSE:ACCO –Free Report),Norbord, Inc. (NYSE:OSB –Free Report),Sanderson Farms, Inc. (NASDAQ:SAFM –Free Report),Standard Motor Products Inc. (NYSE:SMP –Free Report) and TTM Technologies Inc. (NASDAQ:TTMI – 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:
5 Best Stocks to Buy After the Presidential Election
The 2016 Presidential election saw considerable character assassination and severing of diplomatic ties, making it one of the most action-packed events in the recent past. Republican candidate Donald Trump accused Democrat Hillary Clinton of being corrupt and requested voters to “deliver justice at the ballot box.” Clinton, on the other hand, got a clean chit from the FBI for the email controversy that had marred her campaign in recent times.
Meanwhile, apprehensions surrounding the elections are expected to dissipate once the U.S. gets a new president. And, as has been proven historically, markets will gain stability post elections which calls for investing in small-cap stocks that offer stellar returns, way more than their mid and large-cap counterparts.
FBI Clears Clinton
The FBI found no new evidence to warrant the charges against Clinton, a sign of relief for investors who see slim chances of a Trump presidency. While the Clinton camp was “glad” about the FBI decision, the bureau’s review was vehemently criticized by the Republicans.
According to the final Reuters/Ipsos States of the Nation project, Clinton has a whopping 90% chance of making it to the White House. The survey also mentioned that the wind might turn in favor of Trump only if there is an unlikely turnout of white, black and Hispanic voters in six or seven states (read more: Clinton's Odds of Winning Presidency High: Top 5 Picks ).
Small-Caps Best Buys, No Matter Who Wins
As U.S. presidential election is on a knife-edge, apprehension surrounding the outcome is looming large. But, once a new president is elected, the equity market will start performing well.
The year subsequent to the presidential election, is mostly a profitable one for the S&P 500. Only once in the last eight elections, the S&P 500 finished in the red. In the first year after the last eight elections, the S&P 500 had surged 19.4% on an average. Gains were also broad-based, with the tech-laden Nasdaq averaging a 19.36% gain in the year after the election. However, it is the Russell 2000 index of small-cap stocks that topped all of them, with an average gain of 20.2%. The following table compares all the three indices’ returns in years following elections:
As seen in the table, small-caps have outperformed the S&P 500 in five out of the last eight cycles, including the last four. If we streamline further, Russell 2000 value stocks have registered an average gain of 21.6% in the year following an election, while Russell 2000 Growth stocks clocked an average gain of 18.77%. In fact, small-cap growth stocks have posted 34% plus gains in the last two years following an election (read more: Portfolio Strategy for 2016 Presidential Election ).
5 Solid Choices
Both the categories of small-cap stocks are set to scale higher post the election. To top it, the broader markets may launch into a strong rally. A number of economic reports including positive employment report, productivity data, factory orders and the nonmanufacturing ISM survey largely underline solid economic growth.
We have, thus, selected five small-cap stocks that have tremendous financial strength and are also poised to grow in the near term. Such stocks have market-cap below $2 billion and boast a VGM score of ‘A’. Here V stands for Value, G for Growth and M for Momentum and the score is a weighted combination of these three metrics. Such a score allows you to eliminate the negative aspects of stocks and select winners. Such stocks also flaunt a Zacks Rank #1 (Strong Buy). You can see the complete list of today’s Zacks #1 Rank stocks here .
ACCO Brands Corporation (NYSE:ACCO – Free Report) manufactures, markets, and distributes office, school, and calendar products. The company has a price-to-earnings ratio of 12.59, compared with 15.20 for the industry. ACCO Brands’ estimated growth rate for the year following the election is pegged at 9.8%.
Norbord, Inc. (NYSE:OSB – Free Report) manufactures, sells, markets, and distributes wood-based panels for retail chains, contractor supply yards, and industrial customers. The company has a price-to-earnings ratio of 14.26, compared with the industry’s 20.30. Norbord’s estimated growth rate for the year following the election is 69.4%.
Sanderson Farms, Inc. (NASDAQ:SAFM – Free Report) is an integrated poultry processing company. The company has a price-to-earnings ratio of 10.73, compared with 14.60 for the industry. Sanderson Farms’ estimated growth rate for the year following the election stands at 4.6%.
Standard Motor Products Inc. (NYSE:SMP – Free Report) manufactures and distributes replacement parts for motor vehicles in the automotive aftermarket industry. The company has a price-to-earnings ratio of 16.39, compared with 19.60 for the industry. Standard Motor’s estimated growth rate for the year following the election is 14.6%.
TTM Technologies Inc. (NASDAQ:TTMI – Free Report), together with its subsidiaries, manufactures printed circuit boards (PCBs) worldwide. The company has a price-to-earnings ratio of 10.8, compared with the industry’s 14.20. The company’s estimated growth rate for the year following the election is 12.9%.
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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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ACCO BRANDS CP (ACCO): Free Stock Analysis Report
NORBORD INC (OSB): Free Stock Analysis Report
SANDERSON FARMS (SAFM): Free Stock Analysis Report
STANDARD MOTOR (SMP): Free Stock Analysis Report
TTM TECHNOLOGIE (TTMI): Free Stock Analysis Report
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