Wall Street Resumes Rally: 5 Triple-Play Miracle Stocks To Buy

Wall Street resumed its rally after a dull Wednesday, following Trump’s threat to slap 10% tariff on another $200 billion in Chinese goods. The tension seems to be cooling down now on signals that the United States and China are willing to restart their trade talks to evade a full-blown trade war.  

As such, the technology surge has propelled the NASDAQ to a record high powered by Facebook (FB - Free Report), Microsoft (MSFT - Free Report) and Amazon (AMZN - Free Report). The industrial sector has also bounced back with Boeing (BA - Free Report) and Caterpillar (CAT - Free Report) — the hardest hit by the recent trade dispute — rising the most.

Renewed optimism also came on high hopes for the Q2 earnings season. Earnings for the S&P 500 index are expected to grow 19.1% from the same period last year on 8.2% higher revenues. This would represent the third consecutive quarter of double-digit earnings growth, a trend that is currently expected to continue in the second half of the year. A strong economy and historic tax cuts will continue to drive earnings higher. Per Thomson Reuters, the S&P 500 companies are expected to post second-quarter profit growth of around 21%.

Further, rounds of upbeat data, signaling improving economic growth, have added to the bullish outlook for stocks. However, volatility and uncertainty will continue to show up as tariff threats are still in place.

In such a scenario, investors are looking for a portfolio that could offer outsized gains relative to the market. In fact, the stocks having a combination of value, growth, and momentum could be a winning strategy. This is because value offers exposure to inexpensive stocks undervalued by the market while growth investing harnesses its momentum in earnings to create a positive bias in the market, resulting in rocketing share prices.

Meanwhile, momentum investing fetches profits from buying hot stocks that have shown an uptrend in the past few weeks or months, and hence these stocks seem to be the major beneficiaries of the current market trend.

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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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