5 Top-Ranked S&P 500 Stocks To Buy In Q3

The S&P 500 index closed at 3,130.01 on Jul 2, up 0.5% on the day. Markedly, the index surged 42.8% from its March 23 low of 2,191.86 and the benchmark grew 20% in the second quarter.

The index’s rally has been primarily driven by unprecedented government stimulus, reopening of U.S. and global economies post-coronavirus-induced lockdowns and shelter-in-place guidelines, and improving consumer confidence.

Notably, the Conference Board’s Consumer Confidence Index rose to 98.1 in June, rebounding from May’s reading of 85.9 and April’s 85.7. This is the index’s largest jump since 2011, which however is much lower than its average reading of about 126 in 2019.

Moreover, the Expectations Index that evaluates how Americans view their next six months in terms of income, business and labor market conditions increased from 97.6 in May to 106 in June.

Further, a steady decline in jobless claims reflects improving conditions in the U.S. labor market. The Bureau of Labor Statistics June jobs report showed that 4.8 million jobs were added to the economy. The unemployment rate declined to 11.1% from 13.3% in May, which, however, is much higher than 3.5% at the end of 2019.

The S&P’s upbeat momentum is expected to continue in the second half, driven by the growing optimism over steady economic revival.

Additionally, the Trump administration’s draft proposal of a $1-trillion stimulus plan to strengthen infrastructure, including roads, bridges, and 5G, is expected to help the economy revive.

Although resurgence in coronavirus infection is worrying, the chances of another nationwide lockdown is minimal, which should boost investor optimism.

Here we discuss five S&P 500 stocks that have shown great resilience amid the pandemic. Apart from having solid fundamentals, these stocks have a favorable combination of a Growth Score of A or B and a Zacks Rank #1 (Strong Buy). 

Notably, each of these stocks has a market cap of more than $10 billion.

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