5 Great S&P 500 Stocks To Buy In 2019

Labor Market Remains Solid

Probably the most positive aspect of this economic expansion is the robust state of the jobs market. The unemployment rate continues to inch lower while job additions remain strong. More importantly, wage growth, which was largely absent through this growth phase, was a significant feature of 2018.

Meanwhile, the jobs quits rate increased substantially last year. The resilience of the jobs market has raised the spending propensity of Americans. Retail sales increased 5% year over year this holiday season, per analysis released post-Christmas by MasterCard (MA - Free Report).

Trade Deal Around the Corner?

Possibly the biggest worry for investors last year was the trade tussle with China. A deal seemed elusive at most times despite promises by the Trump administration that crucial progress had been made on this front. Goldman Sachs expects more retaliatory tariff action this year.

However, the investment banking firm does concede that an agreement could be inked later this year. China’s economy and equity markets are starting to feel the pain of this lingering conflict. Trump tweeted on Saturday that he had held a fruitful telephonic discussion with President Xi. According to him, “big progress” was being made and a deal with China was “moving along very well”.

Our Choices

Despite the pessimism surrounding this year’s market prospects, things may not be as tricky as they seem. A robust economy and strong labor market will likely continue to fuel optimism. A trade deal with China may also be reached, providing much-awaited relief to investors.

In view of these factors, we have narrowed our search to the following S&P 500 stocks based on a good Zacks Rank and other relevant metrics.

TripAdvisor Inc. (TRIP - Free Report) is one of the largest online travel research companies in the world.

The company’s expected earnings growth for the current year is 57%. The Zacks Consensus Estimate for current-year earnings has improved 20.1% over the past 60 days. The stock rallied 54.3% in 2018. It sports a Zacks Rank #1 (Strong Buy).

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