This article has already been saved in your Saved Items
AAPL
-2.29%
Add to/Remove from Watchlist
Add to Watchlist
Add Position
Position added successfully to:
AMKR
+2.21%
Add to/Remove from Watchlist
Add to Watchlist
Add Position
Position added successfully to:
AVID
0.00%
Add to/Remove from Watchlist
Add to Watchlist
Add Position
Position added successfully to:
CNR_OLD
+0.00%
Add to/Remove from Watchlist
Add to Watchlist
Add Position
Position added successfully to:
TPH
-2.96%
Add to/Remove from Watchlist
Add to Watchlist
Add Position
Position added successfully to:
ENVA
+0.65%
Add to/Remove from Watchlist
Add to Watchlist
Add Position
Position added successfully to:
Over the past three months, stocks have taken a severe beating as investors remained apprehensive regarding the coronavirus pandemic, and its subsequently impact on corporate earnings and global economic growth. The pandemic has compelled several nations to resort to prolonged lockdown, which may result in both big and small companies defaulting as they grapple to survive a revenue slump.
But as investors try to make sense of the coronavirus-induced business slowdown, US Senate leaders have reached a historic agreement with the Trump administration to rescue American taxpayers and businesses ravaged by the deadly pandemic.
After days of marathon negotiations, the White House and the Senate struck a deal for rescue package worth $2 trillion, which stands out to be the biggest congressional bailout in US history. And it was certainly the need of the hour as intensifying coronavirus crisis overwhelmed the healthcare system and grinded the economy to a halt.
Senate majority leader Mitch McConnell said that “at last, the Senate has reached a bipartisan agreement on a historic relief package for this pandemic.” He further added that it’s a “wartime level of investment into our nation.”
So, what’s in the deal? At least $250 billion are expected to be set aside for direct payments to individuals and $350 billion to be provided to small business houses as loans. Nearly $500 billion to be set aside for distressed companies and $250 billion for unemployment insurance benefits.
The deal also prohibited bailed-out airlines to buy back stocks, or issuing any bonuses to chief executive officers. Further, the bill prohibits President Trump, Vice President Mike Pence and other members of the Congress from receiving any kind of government aids.
The landmark agreement is expected to inject enough cash to bolster the economy, and provide the required liquidity and help stabilize the financial markets. The Fed has also stepped up and unleashed an array of stimulus measures to date. The central bank said that it would buy an unlimited amount of Treasurys and mortgage-backed securities to stem the economic damage from the coronavirus outbreak.
The Fed, by the way, has already trimmed borrowing costs and pumped billions of dollars into the banking system to sustain the credit flow. Policy makers unanimously agreed to trim benchmark federal funds rate a full percentage point to a range of zero to 0.25%. Earlier this month, in a rare inter-meeting move, the Fed cut its benchmark interest rate by half a percentage point to a range of 1-1.25%.
5 Best Stocks to Buy on Stimulus Measures
US lawmakers’ agreement on a sweeping stimulus package designed to curb the economic fallout from the coronavirus-induced public health crisis will certainly help fundamentally sound stocks stay afloat. Thus, investing in some of them seems prudent.
These stocks flaunt a Zacks Rank #1 (Strong Buy) and a VGM Score of A. Here V stands for Value, G for Growth and M for Momentum and the score is a weighted combination of these three metrics. Such a score allows you to eliminate the negative aspects of stocks and select winners. You can see the complete list of today’s Zacks #1 Rank stocks here.
Avid Technology, Inc. (NASDAQ:AVID) develops and sells software, hardware, and integrated solutions for video and audio content creation. The Zacks Consensus Estimate for its current-year earnings has moved up 6.2% over the past 60 days. The company’s expected earnings growth rate for the next quarter and current year is 600% and 68.6%, respectively.
Amkor Technology, Inc. (NASDAQ:AMKR) provides outsourced semiconductor packaging and test services. The Zacks Consensus Estimate for its current-year earnings has moved up 25% over the past 60 days. The company’s expected earnings growth rate for the current quarter and year is 550% and 78.6%, respectively.
TRI Pointe Group, Inc. (NYSE:TPH) engages in design, construction, and sale of single-family detached and attached homes. The Zacks Consensus Estimate for its current-year earnings has moved up 6.8% over the past 60 days. The company’s expected earnings growth rate for the next quarter and current year is 88.9% and 6.8%, respectively.
Cornerstone Building Brands, Inc. (NYSE:CNR) designs, engineers, manufactures, and markets external building products. The Zacks Consensus Estimate for its current-year earnings has moved up 3.6% over the past 60 days. The company’s expected earnings growth rate for the current quarter and year is 21.4% and 46.2%, respectively.
Enova International, Inc. (NYSE:ENVA) provides online financial services. The Zacks Consensus Estimate for its current-year earnings has moved up 7.9% over the past 60 days. The company’s expected earnings growth rate for the current quarter and year is 21.6% and 13.7%, respectively.
More Stock News: This Is Bigger than the iPhone!
It could become the mother of all technological revolutions. Apple (NASDAQ:AAPL) sold a mere 1 billion iPhones in 10 years but a new breakthrough is expected to generate more than 27 billion devices in just 3 years, creating a $1.7 trillion market.
Zacks has just released a Special Report that spotlights this fast-emerging phenomenon and 6 tickers for taking advantage of it. If you don't buy now, you may kick yourself in 2020.
Home Depot’s (NYSE:HD) Q4 2024 report and guidance for 2025 have plenty to be unhappy about, but the simple truth is that this company turned a corner in 2024. It is on track for...
Nvidia is scheduled to release its Q4 earnings report at 4:20PM ET on Wednesday. A call with CEO Jensen Huang is set for 5:00PM ET.
The chipmaker’s results will serve as a...
Warren Buffett has always critiqued airline stocks for being overly capital-intensive, exhibiting low growth, and relying heavily on cyclical consumer travel patterns—further...
5 Big Winners On Historic $2 Trillion Coronavirus Stimulus
Add a Comment
Comment Guidelines
We encourage you to use comments to engage with other users, share your perspective and ask questions of authors and each other. However, in order to maintain the high level of discourse we’ve all come to value and expect, please keep the following criteria in mind:
Enrichthe conversation, don’t trash it.
Stay focused and on track. Only post material that’s relevant to the topic being discussed.
Be respectful. Even negative opinions can be framed positively and diplomatically. Avoid profanity, slander or personal attacks directed at an author or another user. Racism, sexism and other forms of discrimination will not be tolerated.
Use standard writing style. Include punctuation and upper and lower cases. Comments that are written in all caps and contain excessive use of symbols will be removed.
NOTE: Spam and/or promotional messages and comments containing links will be removed. Phone numbers, email addresses, links to personal or business websites, Skype/Telegram/WhatsApp etc. addresses (including links to groups) will also be removed; self-promotional material or business-related solicitations or PR (ie, contact me for signals/advice etc.), and/or any other comment that contains personal contact specifcs or advertising will be removed as well. In addition, any of the above-mentioned violations may result in suspension of your account.
Doxxing. We do not allow any sharing of private or personal contact or other information about any individual or organization. This will result in immediate suspension of the commentor and his or her account.
Don’t monopolize the conversation. We appreciate passion and conviction, but we also strongly believe in giving everyone a chance to air their point of view. Therefore, in addition to civil interaction, we expect commenters to offer their opinions succinctly and thoughtfully, but not so repeatedly that others are annoyed or offended. If we receive complaints about individuals who take over a thread or forum, we reserve the right to ban them from the site, without recourse.
Only English comments will be allowed.
Any comment you publish, together with your investing.com profile, will be public on investing.com and may be indexed and available through third party search engines, such as Google.
Perpetrators of spam or abuse will be deleted from the site and prohibited from future registration at Investing.com’s discretion.
Your ability to comment is currently suspended due to negative user reports. Your status will be reviewed by our moderators.
Please wait a minute before you try to comment again.
Thanks for your comment. Please note that all comments are pending until approved by our moderators. It may therefore take some time before it appears on our website.
Trump, Pence, and Congress are not the only ones that can't receive aid, it encompasses much more than just them. When bias is displayed in an article, it undermines any good work you have put into it and negates the recommendations. Furthermore, if the article shows bias it makes one wonder how else you are being misleading and questions motive.
Add a Comment
We encourage you to use comments to engage with other users, share your perspective and ask questions of authors and each other. However, in order to maintain the high level of discourse we’ve all come to value and expect, please keep the following criteria in mind:
Enrich the conversation, don’t trash it.
Stay focused and on track. Only post material that’s relevant to the topic being discussed.
Be respectful. Even negative opinions can be framed positively and diplomatically. Avoid profanity, slander or personal attacks directed at an author or another user. Racism, sexism and other forms of discrimination will not be tolerated.
Perpetrators of spam or abuse will be deleted from the site and prohibited from future registration at Investing.com’s discretion.