A fifth straight weekly drop in jobless claims and the Fed’s confidence in the economy’s ability to handle certain recurring issues have driven the major stock indexes lately. Given this backdrop, we think it could be wise to bet on Lee Enterprises (LEE), Educational Development (EDUC), Lifeway Foods (LWAY), and Friedman Industries (FRD) because these companies each possess a solid combination of value and quality. These stocks are also rated ‘Strong Buy’ in our proprietary rating system. Let’s discuss.For the third consecutive session, the major stock market indexes closed at record highs. The nation’s weekly jobless claim declined to 269,000 last week, versus a 275,000 estimate, which could be viewed as another indication of steady economic recovery. Jim Paulsen, chief investment strategist for the Leuthold Group, said “Fundamentals are probably at the epicenter of why the stock market keeps rising.”
While supply chain constraints and inflation remain concerns for investors, the central bank said it would begin to slow its bond-buying program later this month, indicating that the economy can now handle an unwinding of pandemic stimulus.
Against this backdrop, we think it could be wise to bet on Lee Enterprises, Incorporated (LEE), Educational Development Corporation (EDUC), Lifeway Foods, Inc. (LWAY), and Friedman Industries, Incorporated (FRD). These stocks can be fairly described as no-brainers, given their solid combination of value and quality. Also, these four stocks are rated ‘Strong Buy’ in our proprietary POWR Ratings system.