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Zacks Market Edge Highlights: Exxon, Diageo, GlaxoSmithKline, Micron And AMN

Published 04/11/2018, 09:35 PM
Updated 07/09/2023, 06:31 AM
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For Immediate Release

Chicago, IL – April 12, 2018 – Zacks Market Edge is a podcast hosted weekly by Zacks Stock Strategist Tracey Ryniec. Every week, Tracey will be joined by guests to discuss the hottest investing topics in stocks, bonds and ETFs and how it impacts your life. To listen to the podcast, click here: (https://www.zacks.com/stock/news/298742/what-all-investors-should-know-about-trade-deficits-and-recessions)

What All Investors Should Know About Trade Deficits and Recessions

Welcome to Episode #126 of the Zacks Market Edge Podcast.

Every week, host and Zacks stock strategist, Tracey Ryniec, will be joined by guests to discuss the hottest investing topics in stocks, bonds and ETFs and how it impacts your life.

In this episode, Tracey is joined by John Blank, Zacks Chief Equity Strategist and the Editor of the Large Cap Trader newsletter, to discuss the economic issues facing investors right now including the trade deficit and trade war talk and worries about a recession.

Are All Trade Deficits “Bad”?

John, a PhD economist, discusses why we have trade deficits in the first place.

If you’re wondering what all the fuss is about, it’s worth tuning in to get some straight economic talk on trade deficits, what fuels them, and how they can be dealt with.

We’ll Get a Recession Soon Right?

There have been a lot of doom and gloomers on Twitter in 2018. The longer the US economy goes without a recession, and it has now been 9 years, the louder the bears get that one is imminent.

And that means stock investors should also be paying attention because historically the stock market has corrected during recessions.

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Signals of a Coming Recession

Because investors don’t want to be caught with their hands in the cookie jar at the start of a recession, they have been trying to gauge when the next recession may hit.

There are a lot of different “signals” out there but one that Tracey recently saw on Twitter was the Federal Reserve Bank of St. Louis FRED chart of the Passenger Car Registrations for the US.

John discusses what he thinks about “signals” and then gives his #1 recessionary signal that all investors should know.

Investment Ideas for 2018

What stocks are John and Tracey looking at as the first quarter earnings season gets underway?

1. Exxon Mobil Corp. (NYSE:XOM) , the energy giant, trades with a forward P/E of just 15.5 with WTI crude near 3-year highs. Earnings are expected to rise 33.7% in 2018. It also pays a dividend yielding 4.1%.

2. Diageo (LON:DGE) plc (NYSE:DEO) is one of the world’s largest producers of spirits. It owns Smirnoff, Johnnie Walker, Baileys and Guinness brands, among others. Earnings are expected to rise 18.8% in fiscal 2018 and it too pays a dividend, yielding 2.4%.

3. GlaxoSmithKline plc (NYSE:GSK) is a London-based drug company with a forward P/E of just 13.7. It pays a juicy dividend, currently yielding 6.3%.

4. Micron Technology (NASDAQ:MU) continues to be dirt cheap. The semiconductor maker is trading with a forward P/E of just 4.3. Are investors missing the story here?

5. AMN Healthcare (NYSE:AMN) is a mid-cap medical staffing company. Tracey likes it as it is likely immune from any trade war worries. Earnings are expected to jump 27% in 2018. Shares recently hit 5-year highs.

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What else should you know about investing in volatile times?

Tune in to this week’s podcast to find out.

Breaking News: Cryptocurrencies Now Bigger than Visa

The total market cap of all cryptos recently surpassed $700 billion – more than a 3,800% increase in the previous 12 months. They’re now bigger than Morgan Stanley (NYSE:MS), Goldman Sachs (NYSE:GS) and even Visa! The new asset class may expand even more rapidly in 2018 as new investors continue pouring in and Wall Street becomes increasingly involved.

Zacks’ has just named 4 companies that enable investors to take advantage of the explosive growth of cryptocurrencies via the stock market.

Click here to access these stocks. >>

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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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GlaxoSmithKline plc (GSK): Free Stock Analysis Report

Diageo plc (DEO): Free Stock Analysis Report

AMN Healthcare Services Inc (AMN): Free Stock Analysis Report

Exxon Mobil Corporation (XOM): Free Stock Analysis Report

Micron Technology, Inc. (MU): Free Stock Analysis Report

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