ETFs & Stocks Set To Soar On October Job Data

iShares Russell 2000 Growth ETF (IWO - Free Report)

Small-cap stocks are the biggest beneficiaries as these are closely tied to the improving health of American economy. Honing in on the growth ones within this market cap would be the winning bet as small-cap growth stocks outperform during a trending market (a market characterized by a prolonged uptrend). As such, IWO’s exposure to a broad basket of 1,162 companies whose earnings are expected to grow at an above-average rate relative to the market makes it an excellent choice. It is one of the popular and liquid ETFs in the small-cap space with AUM of $8.8 billion and average trading volume of 498,000 shares a day. The fund charges 24 bps in annual fees from investors and has a Zacks ETF Rank #2.

iShares Currency Hedged MSCI EAFE ETF (HEFA - Free Report)

The strength in the greenback would compel investors to recycle their portfolio into the currency-hedged ETFs. For those seeking exposure to the developed market, HEFA could be an intriguing pick. HEFA targets the developed international stock market with no currency risk and tracks the MSCI EAFE 100% Hedged to USD Index. It has AUM of $4.5 billion and trades in solid volume of 1.2 million shares. The fund charges 36 bps in fees per year from investors and has a Zacks ETF Rank #3.

Stocks to Consider

Though several sectors will benefit from healthy hiring, the direct beneficiary is the staffing industry. This industry is well positioned at least for the near term given its superb Zacks Industry Rank (in the top 35%) at the time of writing. Investors seeking to ride out the optimism could look at a few stocks having a Zacks Rank #1 (Strong Buy), 2 or 3 and a Growth Style Score of A using the Zacks Stock Screener.

On Assignment Inc. (ASGN - Free Report)

Based in California, On Assignment is a leading nationwide provider of temporary scientific professionals to laboratories in the biotechnology, pharmaceutical, food and beverage, chemical, and environmental industries. The stock is expected to post earnings at a growth rate of 14.15% year over year for this year. It has a Zacks Rank #3 and a Growth Style Score of A.

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Disclosure: Zacks.com contains statements and statistics that have been obtained from sources believed to be reliable but are not guaranteed as to accuracy or completeness. References to any specific ...

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