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Yahoo
31-05-2025
- Business
- Yahoo
Listen to the Market's Whispers: Buy on Upcoming Weakness
'Be fearful when others are greedy, and be greedy when others are fearful.' – Warren BuffettThe market rally off the April lows has been nothing short of extraordinary. In fact, it has been so swift and relentless that many investors have been caught off guard, with positioning far below where it likely should does that mean for stocks going forward?It means that even if we have some short-term downside (which appears to be the case amid rising treasury yields along with the recent U.S. credit rating downgrade), pullbacks are likely to be relatively shallow and short-lived as underexposed investors look to quickly buy any has been a bullish move reminiscent of the astonishing rally off the 2020 COVID-induced plunge. I have to admit, I wasn't expecting a 'V' shaped rally this time around. Still, we noted back in April that there was a large percentage of stocks in oversold territory. Combined with historically bearish sentiment along with a high level of fear, we had the recipe for a strong lockout rally to materialize – and that's exactly what we saw This Rally in PerspectiveA bit over a month ago, the S&P 500 was down over 15% on the year and narrowly avoided an official bear market (in fact, it closed down 19% from its highs and touched bear territory intraday). The Nasdaq officially entered by mid-May, the S&P 500 soared back into the green for 2025. It was the fastest recovery in over 40 years, with the index erasing its 15% YTD loss in less than six weeks. It's a good reminder that one of the worst mistakes we can make is to panic sell during times of market reached maximum headline fear in April as the tariff problem was covered extensively by financial media outlets. Markets have a habit of bottoming on maximum fear. What many weren't expecting were the positive headlines that would soon follow, helping to relieve some of the volatility that plagued markets in the first market is now telling us two things. First, it's to expect a quicker-than-anticipated resolution to the tariff issues and trade wars. And alongside that, the assumption is that inflation remains under control, which will allow the Fed to resume the rate-cutting process. This should provide a further tailwind to equity evidence is now pointing to the notion that this correction in the S&P 500 has come to an abrupt end. Let's take a look at a few reasons why the worst of the selling is likely behind . . .------------------------------------------------------------------------------------------------------Deadline Approaching: Zacks' 7 Best Stocks for JuneFrom 220 Zacks Rank #1 Strong Buy stocks, our experts hand-picked these 7 compelling companies as the most likely to spike NOW. While we can't guarantee 100% success, they are likely to jump sooner and climb higher than any others you could buy this distribution is limited, so don't miss out. The deadline is midnight Sunday, June 1st. Hurry – See Stocks Now >>------------------------------------------------------------------------------------------------------Three Motives to Buy on Weakness from HereBearish Sentiment Remains PrevalentDespite the latest rally, the bears won't give up. Most investors still remain bearish amid the recent volatility, so there's certainly fuel to push markets even higher in the coming start with consumers and individual investors. Consumer sentiment plunged in May as Americans grew more pessimistic about the inflation outlook. The latest University of Michigan consumer sentiment survey showed its sentiment index registered at 50.8, its second-lowest reading on record. Image Source: University of Michigan, Survey Research Center, Surveys of ConsumersAlong the same lines, the American Association of Individual Investors (AAII) – a nonprofit organization whose purpose is to educate individual investors – also conducts sentiment surveys. As recently as early May, the percentage of AAII investors spent 11 straight weeks with more than 50% bears, which marked a new record. Clearly, pervasive bearish sentiment has dominated the minds of individual about professional fund managers? The recently released Bank of America Global Fund Manager Survey showed the fifth-lowest level on record in terms of fund manager sentiment. Additionally, it showed a record number of participants who intend to cut U.S. equity survey also showed the largest two-month jump in cash since April 2020, along with the 4th highest recession expectations ever. Given this survey looks at managers who manage actual portfolios, this is a potential contrarian Index Completes RoundtripIn bull markets, spikes in the volatility (VIX) index typically represent great buying opportunities. Remember, it's not imperative for us to call the exact top in the VIX or the exact bottom in the market. We're not in the business of calling tops and bottoms, we're in the business of making money consistently and allowing gains to compound over the VIX index closes above the 50-price level for the first time in a cycle, it has likely been preceded by poor market performance driven by panic. We took a look at past instances in which the VIX closed above 50 and subsequently plunged to close back below 30. This indicator has been known as a 'bear market killer.' Image Source: Chart Courtesy of back to the early 2000s, the volatility index only experienced this exact type of movement two other times: following the Great Recession low in 2009, and after the COVID-19 bear market in 2020. Both instances marked an important bottom in the market. And looking out one year from the date the VIX closed back below 30, the S&P 500 rose +23.2% and +44.5% in those respective average drawdown after each signal was 3.55%, while the maximum drawdown was 3.75%. This tells us that it wouldn't be too shocking to see a bit of a retracement here, but any pullback should be relatively since then, the VIX has actually managed to close back below 20, marking the largest 6-week volatility crash in history. Looking at the 20 other biggest monthly declines in the VIX, the 1-year forward returns for the S&P 500 averaged more than +20%, telling us to keep an open mind about better-than-expected outcomes Remains on a Downward Trajectory To top it all off, inflation has remained tame this year even in the face of President Trump's tariffs. April's Consumer Price Index (CPI) report showed inflation pressures actually eased, despite it being the first month that many tariffs were in effect. Data from the Bureau of Labor Statistics showed that consumer prices increased just 2.3% over the prior year, below estimates of 2.4%. It marked the lowest annual increase since February 2021. Image Source: Zacks Research SystemOn a 'core' basis, which strips out volatile food and energy components, prices rose 2.8% over the past year, in line with a more dovish signal, Federal Reserve Bank of Cleveland President Beth Hammack recently indicated that policymakers could move forward with a rate cut in June if the data comes in as expected.'If we have clear and convincing data by June, then I think you'll see the committee move if we know which way is the right way to move at that point in time,' Hammack downward trend in inflation should prompt the Fed to resume the rate-cutting process, which will likely serve as another boost for stocks moving Thoughts These tailwinds are presenting a bullish setup for equities. Many individual stocks are now forming proper bases, another sign that this latest push higher has legs.I'll leave you with this. The S&P 500 has been in 11 bull markets (not including the current one) since 1949. The index hit a new high in January of 2024 following the inflation-induced bear market of 2022. Dating back to the 1950s, once those former highs were put in the rearview mirror, bull markets have lasted an average of another 4.5 overlooked fact suggests the potential for more gains ahead that could be substantial. Investors normally underestimate the length and magnitude of bull markets. It looks like this latest correction will turn out to be a great buying in my opinion, it's still early. Bearish investor sentiment, declining volatility, and a tame inflation trend suggest further gains are on the Advantage Today The time is now to get in (and not miss out) on more gains to has just released a brand-new Special Report, 7 Best Stocks for the Next 30 Days, and you're invited to be one of the first to see team of experts combed through the latest Zacks Rank #1 Strong Buys and handpicked seven exciting companies poised for significant price increases. They're likely to jump sooner and climb higher than any other stock you could buy this future success isn't guaranteed, recent winners have climbed +46.4%, +61.8% and +97.3% in just 30 days.¹Our latest picks could soar just as high, or higher, and you can see them for only $1. You'll also get 30-day access to all of Zacks' private portfolios for the same dollar.I encourage you to take advantage right away. The earlier you get in, the greater profits you stand to make. But don't delay. We're limiting the number of investors who share our 7 Best Stocks, so this opportunity will end midnight Sunday, June and check out Zacks' portfolios for just $1 >> Good Investing,Bryan Hayes, CFABryan Hayes, CFA, manages our Zacks Income Investor and Headline Trader portfolios. He employs a combination of fundamental and technical analysis and has developed a unique approach to selecting stocks with the best profit potential. You can also find him covering a host of investment topics for The results listed above are not (or may not be) representative of the performance of all selections made by Zacks Investment Research's newsletter editors and may represent the partial close of a position. Access grants you a comprehensive list of all open and closed trades. Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report This article originally published on Zacks Investment Research ( Zacks Investment Research Error in retrieving data Sign in to access your portfolio Error in retrieving data Error in retrieving data Error in retrieving data Error in retrieving data
Yahoo
30-05-2025
- Business
- Yahoo
3 Great Mutual Fund Picks for Your Retirement
There is never a wrong time to invest in mutual funds for retirement. So, if you're still looking for the best mutual funds, the Zacks Mutual Fund Rank can be a great guide. The easiest way to judge a mutual fund's quality over time is by analyzing its performance, diversification, and fees. Using the Zacks Mutual Fund Rank of over 19,000 mutual funds, we've identified three outstanding mutual funds that are ideally suited to help long-term investors pursue and achieve their retirement investing goals. Let's learn about some of Zacks' highest ranked mutual funds with low fees you may want to consider. If you are looking to diversify your portfolio, consider (CGNCX). CGNCX is part of the Large Cap Blend section, and these mutual funds most often invest in firms with a market capitalization of $10 billion or more. By investing in bigger companies, these funds offer more stability, and are often well-suited for investors with a "buy and hold" mindset. This fund is a winner, boasting an expense ratio of 1.12%, management fee of 0%, and a five-year annualized return track record of 9.93%. (JAGRX). Expense ratio: 0.67%. Management fee: 0.47%. JAGRX is a Large Cap Growth mutual fund, and these funds invest in many large U.S. firms that are projected to grow at a faster rate than their large-cap peers. This fund has managed to produce a robust 15.62% over the last five years. (JNUSX) is an attractive large-cap allocation. JNUSX is a Non US - Equity fund. Many of these funds like to allocate across emerging and developed markets, and will often focus on all cap levels. JNUSX has an expense ratio of 0.65%, management fee of 0.55%, and annual returns of 17.31% over the past five years. These examples highlight the fact that there are some astonishingly good mutual funds out there. If your advisor has you in the good ones, bravo! If not, you may need to have a talk. Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report Get Your Free (CGNCX): Fund Analysis Report Get Your Free (JAGRX): Fund Analysis Report Get Your Free (JNUSX): Fund Analysis Report This article originally published on Zacks Investment Research ( Zacks Investment Research
Yahoo
23-05-2025
- Business
- Yahoo
Jittery? Here's How to Profit from Today's Market
The Nasdaq entered a new bull market in a flash, soaring 24% from its early April lows, with the S&P 500 on the cusp (+17%).Plenty of investors missed this rally for various reasons, from attempting to call an exact bottom to waiting for the 'all clear' signal on the tariff front. Some investors might even have sold out of positions completely as fear ratcheted goal is not to shame the furious rebound over the last month and a half highlights two straightforward evergreen investing strategies: buy into weakness and stay exposed to the stock market no matter Into Weakness, Sell into Strength A stock market selloff is a chance to buy great stocks when they are 'on sale.' Many people who might rush to buy a car, TV, or fill-in-the-blank when they go on sale by 10%, 25%, or even 50% might hesitate to strike when stock prices buying stocks when they have dropped significantly makes even more sense because they are appreciating assets, unlike most things people buy on Buffett's mantra of being greedy when others are fearful, and fearful when others are greedy has transformed into a cliché because it's one of the most rewarding and proven investing close attention to long-term moving averages and other widely tracked technical indicators such as the Relative Strength Index help investors gauge when the market might be nearing a near-term peak or doesn't mean investors should play the market timing game. The goal is to take some profits when the stock market grows euphoric and buy into selloffs, while staying invested through thick and the Course Calling a precise bottom or top in real time is next to impossible even for hedge funds run by veteran traders and Ivy League mathematicians and computer scientists. This means few others should attempt to play the all-or-nothing market timing investors must take a simpler and more repeatable timing is even more dangerous because the best days and periods for the market often occur near the worst days, scaring away investors just before the next rally begins. Missing out on rebounds like the one we just had also cripples your long-term uncertain times, investors should remember that 'time in the market beats market timing.' Great long-term investors must buy into weakness, embracing near-term fears to seize fantastic buying opportunities across best-in-class stocks. If the stocks or ETFs you buy drop further, buy a little bit more (if you don't need that money anytime soon).Continued . . .------------------------------------------------------------------------------------------------------$1 for All Zacks' Long-Term Stock PicksFor the next 30 days you can see them all in real time – from Stocks Under $10 to Home Run Investor, from value stocks to ETFs to high-dividend tickers to the fabled Zacks Top 10. You can also access the easy-to-use professional quality research tools of Zacks Premium to find your own Today, download our Special Report, 5 Stocks Set to Double. We asked 5 of our top experts to each name their favorite single stock to potentially gain +100% or more in months to Enter Zacks 'Dollar Sale" >>------------------------------------------------------------------------------------------------------A Five-Year Stock Market Microcosm The past five-plus years have served as a compelling case study for why investors should stay invested amid market history also hammers home why investors should buy into weakness even if more pain comes in the short that investors are often most excited to buy stocks at levels that will soon be a near-term top and too nervous to pull the trigger at beaten-down levels that will mark a bottom (we all have horror stories on these fronts).The Nasdaq has climbed roughly 110% since the start of 2020, with the S&P 500 up 85%.These gains include the rapid COVID bear market, the prolonged 2022 bear market, and the huge selloff during the first quarter-plus of three selloffs, along with smaller drawdowns and market corrections along the way, represented wonderful buying might say they were only great chances to buy the dip in response, ask yourself why you are your goal to build wealth over a 30-, 40-, and 50-year period, or is it to take home huge, quick winners?Buying into weakness on best-in-class stocks and ETFs is a proven strategy to boost long-term wealth creation and bag quick, triple-digit might have horror stories about lost decades of investing. Yet, even buying during those doldrums paid off needs exposure to bonds, money market funds, and other asset classes. But there are few other ways to build wealth and beat inflation beyond investing in risk assets such as stocks and S&P 500 has averaged an annual return of roughly 10%, showcasing long-term growth through ups and downs. The benchmark index has jumped 12% in the past 12 months, including the selloff between late February and early April and the new bull one knows what's right around the corner on Wall Street and be wary of anyone claiming they everyone should remain exposed to the stock market at all times, selling into strength and buying into weakness along the to Do Right Now? We've opened up our , a bundle of our top subscription services for long-term investors. It's made for markets like the next 30 days for the total cost of only $1, you're welcome to catch all of the real-time buy and sell signals from all of our long-term investor portfolios, including…• Real-time buys, sells, and market commentary from Stocks Under $10, Home Run Investor, Value Investor, ETF Investor, Income Investor, and Zacks Top 10 Stocks.• Plus, you'll get full access to our powerful research, tools and analysis, including the Zacks #1 Rank List, Equity Research Reports, Zacks Earnings ESP Filter, Premium Screener and more, as part of Zacks portfolios have already closed 23 double and triple-digit wins in 2025. Even though we can't guarantee 100% success, recent gains reached as high as +169.9%, +198.4%, and even +263.2%.¹Bonus Report: Check out all our long-term stocks and you can also download our Special Report, 5 Stocks Set to Double. Five Zacks experts each name their favorite single stock to potentially gain +100% or more in months please don't wait – be sure to click below right now. This restricted $1 opportunity ends at midnight Sunday, May for and >>Good Investing,Benjamin Rains Ben is a Stock Strategist focusing on large-cap technology companies, consumer-facing stocks, and beyond. He's Editor of Alternative Energy Innovators and Marijuana Innovators, and invites you to sample the long-term Zacks Investor Collection for 30 days at a total cost of $1.¹ The results listed above are not (or may not be) representative of the performance of all selections made by Zacks Investment Research's newsletter editors and may represent the partial close of a position. Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report This article originally published on Zacks Investment Research ( Zacks Investment Research Sign in to access your portfolio
Epoch Times
23-05-2025
- Business
- Epoch Times
BJ's Wholesale Club Beats Earnings Estimates on Favorable Shopping Trends
Based on strong membership and digital sales growth, BJ's Wholesale Club Holdings, Inc. reported earnings for the first quarter of fiscal year 2025 that beat market estimates. Despite the challenging consumer environment, the company maintained its guidance for the rest of the year. On May 22, the operator of membership warehouse clubs in the eastern half of the United States reported adjusted earnings of $1.14 per diluted share for the quarter ended May 3, surpassing Zacks' average analyst estimate of 91 cents. Revenues were $5.15 billion, up 4.8 percent from a year earlier, due to an 8.1 percent rise in membership fee income and a 35 percent jump in digitally enabled comparable sales growth. 'We reported a strong start to the year, demonstrating the power of our model and continued momentum in our long-term growth priorities,' said Bob Eddy, chairman and CEO of BJ's Wholesale Club. 'Delivering great value is essential in today's environment, and I am proud of our team members who remain committed to caring for the families who depend on us.' BJ has been benefiting from several shopping trends, including the growing popularity of wholesale clubs and superstores. According to Related Stories 5/21/2025 5/21/2025 Another trend is the merging of online and offline sales, giving rise to a new channel known as 'digitally enabled sales.' Customers can place orders online and either pick them up at local stores or have them delivered to their homes the same day. This approach has helped traditional brick-and-mortar retailers compete more effectively with Amazon. Adding to these favorable retail trends is the application of membership fees, which allows wholesale club operators to target more affluent customers through market segmentation. In addition to boosting sales, these factors have helped wholesale clubs better allocate capital, creating superior returns for investors. According to data published by BJ Wholesale Club's return on invested capital (ROIC) was 10.44 percent, nearly twice the rate the company paid to raise capital in the markets. BJ's shares fell by 1.3 percent on May 22. The stock has been up 29.79 percent year to date, and 212 percent over the past five years, beating the S&P 500 Index, which is flat for the year and up by 98 percent over the same five-year period. Laura Felice, executive vice president and chief financial officer of BJ's Wholesale Club, sees the company continuing its growth path and maintaining its guidance for the rest of the year. 'As we look to fiscal 2025, we are confident in our team, our positioning in the marketplace, and the growth drivers that are within our control. We will remain focused on executing against our long-term priorities to drive continued traffic and market share gains,' she said. 'Based on what we know today, we are leaving our fiscal 2025 guidance unchanged and will continue to evaluate as the year progresses.' On March 6, the company's guidance for fiscal 2025 called for comparable club annual sales growth, excluding the impact of gasoline sales, in the range of 2.0 percent to 3.5 percent, and adjusted earnings per share in the range of $4.10 to $4.30. Meanwhile, the company remains on track to open 25 to 30 new clubs over the next two years as it updates and upgrades its business model. 'In the past several years, we've updated our clubs with the latest sign packages and invested to support our key growth initiatives, including digital and Fresh two-point zero,' Eddy said during the earnings conference call. 'We're also looking to identify relocation opportunities to better position our fleet for tomorrow.' Georgios Koimisis, a professor of economics and finance at Manhattan University, is skeptical about BJ's ability to continue its winning streak on Main Street and Wall Street. 'BJ's stock has outperformed the broader market this year,' he told The Epoch Times via email. 'However, while BJ's seems to be managing costs and profits well, it has not consistently grown sales beyond expectations.' Koimisis sees this situation worsening in the current environment of rising long-term interest rates and plunging consumer confidence. 'With growing economic uncertainty, any slowdown in consumer spending could shift focus from profits to sales performance, making sustained revenue growth a more important factor of investor confidence going forward,' he said.
Yahoo
21-05-2025
- Business
- Yahoo
Will Housing & Construction Related Stocks Surge This Summer?
With summer considered the prime season for construction, investors may be wondering if it's time to buy stocks that offer exposure to the housing market. To that point, homebuilder stocks are usually of interest, along with home improvement retailers such as Home Depot HD, which reported mixed Q1 results on Tuesday. Furthermore, spring and early summer are generally peak seasons for homebuying as more homes are listed for sale, giving buyers a wider selection to choose from. According to Zillow Z, late summer can offer better deals, as sellers may start lowering prices before the fall. However, while the summer is often the busiest time for homebuilders as well, high demand can drive up material costs. Of course, higher tariffs will also have an adverse effect in regard to rising material costs. This makes it a worthy topic, of which housing and construction-related stocks are worthy of investors' consideration as the summer approaches. Optimistically, Home Depot should be able to avoid a significant impact from tariffs, highlighting in its Q1 report that more than 50% of the company's supply purchases are sourced from the United States. Having a favorable global sourcing strategy, Home Depot's Q1 sales were up 9% year over year to $39.85 billion and topped estimates of $39.4 billion. That said, Q1 EPS of $3.56 dipped from $3.63 in the prior period and missed expectations of $3.59 per share. Still, Home Depot reaffirmed its fiscal 2025 guidance, expecting total sales growth of approximately 2.8%, which is roughly in line with Zacks' estimates (Current Year below). Based on Zacks' projections, Home Depot's total sales are forecasted to rise another 4% in FY26 to $171.4 billion. Home Depot stock currently lands a Zacks Rank #3 (Hold) and should remain a viable long-term investment going into the peak home improvement season, although better buying opportunities could still be ahead following the Q1 earnings miss. Image Source: Zacks Investment Research Notably, Zillow's latest home value and sales report from April suggests a mix of growth and challenges in the housing market. Zillow's latest forecast calls for home values to decrease by 1.9% this year from previous estimates of -0.6%, although existing home sales are expected to increase 3.3% to 4.2 million in 2025. Newly pending listing sales in April fell 2.5% from a year ago, despite lower average mortgage rates. New home listings did rise 7.6%, with Zillow stating sellers are more enthusiastic. Unfortunately, Zillow stock has a Zacks Rank #4 (Sell) based on a trend of declining earnings estimate revisions (EPS) over the last 60 days. Also, the volatility in mortgage rates will be something to keep an eye on, with Zillow expecting the average fixed 30-year rate to settle near 6.5% by year-end. Image Source: Federal Reserve Economic Data Among homebuilders, Dream Finders Homes DFH stock is standing out with a Zacks Rank #2 (Buy). While many homebuilders are struggling to meet their lofty growth expectations, the risk-to-reward looks favorable to invest in Dream Finders with DFH trading at $22 a share and just 7X forward earnings. Dream Finders' annual earnings are expected to dip 3% this year but are projected to rebound and rise 8% in FY26 to $3.49 per share, with single-digit sales growth on the horizon. Image Source: Zacks Investment Research Comfort Systems USA FIX and AAON Inc. AAON are worthy of consideration as providers and manufacturers of comprehensive heating and air conditioning systems. With the warmer months approaching, both sport a Zacks Rank #2 (Buy) and are expected to post considerable top and bottom-line growth in FY25 and FY26. Similarly, Limbach LMB is very intriguing as a provider of building systems and currently boasts a Zacks Rank #1 (Strong Buy) as EPS estimates have soared in the last two months. Limbach constructs and services mechanical, plumbing, air conditioning, electrical, and control systems. Thanks to their stellar expansion, Limbach, Comfort Systems, and AAON's stock have been three of the market's top performers in recent years, with LMB skyrocketing over +2000% in the last three years and FIX and AAON sitting on gains of more than +400% and +200%, respectively. Image Source: Zacks Investment Research For now, many of the renowned homebuilder stocks aren't as appealing even with peak construction season approaching, but there is still an abundance of opportunity in the broader housing market, with air conditioning and building systems providers standing out in particular. Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report The Home Depot, Inc. (HD) : Free Stock Analysis Report Zillow Group, Inc. (Z) : Free Stock Analysis Report AAON, Inc. (AAON) : Free Stock Analysis Report Comfort Systems USA, Inc. (FIX) : Free Stock Analysis Report Limbach Holdings, Inc. (LMB) : Free Stock Analysis Report Dream Finders Homes, Inc. (DFH) : Free Stock Analysis Report This article originally published on Zacks Investment Research ( Zacks Investment Research Error in retrieving data Sign in to access your portfolio Error in retrieving data Error in retrieving data Error in retrieving data Error in retrieving data
