SPECIAL NOTE: The January episode of the Zacks Ultimate Strategy Session is now available for viewing! Tune in to this "must-see" event when Sheraz Mian, Tracey Ryniec, Brian Bolan and Kevin Cook discussed the investment landscape from most every angle. Don't miss your chance to hear:
• Sheraz and Brian Agree to Disagree on the outlooks for oil prices going forward
• Kevin and Tracey answer your questions in Zacks Mailbag
• Sheraz and Brian choose one portfolio to give feedback for improvement
• And much more
Simply log on to Zacks.com and view the January episode here. And please let us know what you think of the new format. Email all feedback to mailbag@zacks.com.
There was no late-day reversal on Wednesday. In fact, it was just the opposite. The major indices started the day on positive ground and continued to move higher throughout most of the session. By the closing bell, stocks were again at fresh records and the Dow closed above a new milestone.
“Yesterday’s news, which involved Steve Bannon bringing down Trump, a government shutdown on Friday and a crypto sell off, all faded away,” said Jeremy in Counterstrike. “Another three days of calm markets and we will enter the longest stretch ever without a 5% correction in the S&P 500.”
The Dow briefly crossed above 26,000 yesterday before the sharp sell-off. Today, it moved past the mark again and closed with more than 100 points to spare. The index jumped 1.25% (or more than 320 points) to 26,115.7. It closed above 25,000 for the first time ever on January 4, which means it is up more than 1,000 points in just under two weeks. The NASDAQ advanced 1.03% to 7298.3 and the S&P increased 0.94% to 2802.6. Once again, the indices are back at all-time highs.
In the portfolios, Home Run Investor picked up a healthcare stock that brings some diversification to the portfolio, while Momentum Trader added an oil-related name that appears on its way to new highs. Learn more about these buys in the highlights section below, as well as some big winners for a couple other portfolios.
Today's Portfolio Highlights:
Counterstrike: Ralph Lauren Corp. (NYSE:RL) slipped all the way to a Zacks Rank #5 (Strong Sell), so Jeremy was looking for a good time to shed this apparel giant. Today’s nearly 1.5% gain in the stock provided the perfect opportunity. The editor sold RL on Wednesday and secured an 11.2% profit in just about six weeks.
Home Run Investor: When it comes to Molina Health (MOH), it’s a tale of two years. The Zacks Consensus Estimate sees a stiff loss for 2017, but that’s expected to flip to a gain of $3.17 in 2018. Needless to say, Brian Bolan is focused on where this multi-state health care organization is going...rather than where it’s been. Plus, the stock recorded a positive earnings surprise of 44% in its most recent quarterly report. The editor thinks MOH is on a roll, so he added it on Wednesday. In addition to its potential moving forward, the stock also offers the portfolio some diversification. Read the complete commentary for more.
Momentum Trader: Shares of Marathon Oil Corp (NYSE:MRO) have pulled back slightly of late, which gave Dave a chance to add this E&P company before an expected breakout to new highs. The editor bought the stock on Wednesday with a 12.5% allocation. He expects MRO to break above $19 soon. To make room, Dave also sold Beacon Roofing (BECN) for a nice little gain of nearly 3%. Read the full write-up for more.
Healthcare Innovators: Kevin isn’t the only one that considers Juno Therapeutics (JUNO) to be one of the most innovative companies in the immune-oncology space. Biotech drugmaker Celgene (NASDAQ:CELG) also thinks a lot of the company, which is why it’s in talks to buy JUNO according to the Wall Street Journal. Plus, a brokerage analyst just stated that this approximately $69 stock would be worth around $110 in a takeover. The news sent shares rocketing higher by nearly 52% on Wednesday, which means the portfolio easily had the top performer of the day.
Have a Good Evening,
Jim Giaquinto
One More Thing...
Zacks EVP Kevin Matras has a solid track record of finding stocks that he believes have the potential to double, including lesser-known names and well-known names alike. It is a profitable exercise which is why he’s now revealing not only the #1 stock in his personal portfolio, but explains why more of his money is riding on it than any other in our Special Report, The #1 Stock in My Personal Portfolio. Log on to Zacks.com to read it now.
Recommendations from Zacks' Private Portfolios:
Believe it or not, this article is not available on the Zacks.com website. The commentary is a partial overview of the daily activity from Zacks' private recommendation services. If you would like to follow our Buy and Sell signals in real time, we've made a special arrangement for readers of this website. Starting today you can see all the recommendations from all of Zacks' portfolios absolutely free for 7 days. Our services cover everything from value stocks and momentum trades to insider buying and positive earnings surprises (which we've predicted with an astonishing 80%+ accuracy). Click here to "test drive" Zacks Ultimate for FREE >>
Zacks Investment Research