For Immediate Release
Chicago, IL – Jan 15, 2018 – Zacks.com announces the list of stocks featured in the Analyst Blog. Every day the Zacks Equity Research analysts discuss the latest news and events impacting stocks and the financial markets. Stocks recently featured in the blog include Guggenheim S&P SmallCap 600 Pure Value ETF RZV, Guggenheim S&P MidCap 400 Pure Value ETF RFV, Bill Barrett Corporation (NYSE:BBG) , AK Steel Holdings (NYSE:AKS) and Huntsman Corporation (NYSE:HUN) .
Today, Zacks is promoting its ''Buy'' stock recommendations. Get #1Stock of the Day pick for free.
Here are highlights from Friday’s Analyst Blog:
Bet Big on a Rising Market with High Beta ETFs & Stocks
Wall Street has been on the second-longest Bull Run in U.S. history with no signs of a slowdown, and dodged all the ills of economy and politics. After logging its best year since 2013, the S&P 500 had the best start in many years with the longest winning streak since 1964 in the first six trading sessions. After dropping in the seventh session, it resumed its rally and hit a fresh high in the latest session (read: Top-Ranked ETFs Crushing the S&P 500 to Start 2018).
The strong momentum seen in 2017 has carried over into this year with higher optimism for a new tax structure, bizarre jump in oil prices, rounds of upbeat economic data and another strong quarter for corporate earnings. Manufacturing activity, as measured by the Institute for Supply Management, increased more than expected in December with the second-highest reading in six years. Construction spending hit record highs in November with broad-based gains in both private and public outlays.
The market is expecting that companies will come up with big gains in earnings and increased estimates for this year driven by tax cut savings. The S&P 500 companies are projected to grow earnings by about 8.8% according to the Earnings Trends while it is expected to grow 11% per the earnings factsheet (read: 4 ETFs & Stocks from Favorite Sectors for Q4 Earnings).
While every corner of the market is enjoying the ascent, high-beta stocks and ETFs are outperforming.
Why?
Beta measures the price volatility of the stocks or funds relative to the overall market. It has a direct relationship to market movements. A beta of more than 1 indicates that the price tends to move higher than the broader market and is extremely volatile while a beta of less than 1 indicates that the price of the stock or fund is less volatile than the market.
That said, high-beta stocks seek to capitalize on continued growth with market-beating returns. This is because when markets soar, high-beta stocks experience larger gains than the broader market counterparts and thus, outpace their rivals. However, these exhibit a higher level of volatility.
Given the bullishness in the economy and earnings, investors could find the following ETFs and stocks intriguing options:
ETF Picks
Using our database, we have chosen ETFs that are not confined to a specific sector or industry but offer exposure to the broad stock market. Additionally, these have AUM of at least $50 million to ensure better tradability and liquidity.
Guggenheim S&P SmallCap 600 Pure Value ETF
This fund provides pure exposure to the small-cap value segment of the U.S. equity market by tracking the S&P SmallCap 600 Pure Value Index.
Zacks Rank: #3 (Hold)
Beta: 1.37
AUM: $184.1 million
Expense Ratio: 0.35%
YTD Performance: 3.4%
Oppenheimer Small Cap Revenue ETF
This product offers exposure to securities of the S&P SmallCap 600 but is weighted by revenues instead of market capitalization.
Zacks Rank: #3
Beta: 1.30
AUM: $521.2 million
Expense Ratio: 0.39%
YTD Performance: 3.3%
Guggenheim S&P MidCap 400 Pure Value ETF
This product offers exposure to the mid-cap value segment of the U.S. equity market by tracking the S&P Midcap 400 Pure Value Index (read: An ETF Retirement Portfolio for 2018).
Zacks Rank: #3
Beta: 1.28
AUM: $121.4 million
Expense Ratio: 0.35%
YTD Performance: 4.5%
Guggenheim S&P 500 Pure Value ETF
This product tracks the S&P 500 Pure Value Index and provides exposure to the pure value stocks in the large-cap segment.
Zacks Rank: #3
Beta: 1.23
AUM: $938.8 million
Expense Ratio: 0.35%
YTD Performance: 4.7%
Vanguard Russell 2000 Growth Index ETF
This fund offers exposure to the growth segment of the U.S. small cap market by tracking the Russell 2000 Growth Index (read: Best Small-Cap ETFs of 2017 with Huge Upside in 2018).
Zacks Rank: #2 (Buy)
Beta: 1.23
AUM: $231 million
Expense Ratio: 0.20%
YTD Performance: 3.5%
Stocks Picks
For stocks, we have chosen those that have a top Zacks Rank #1 (Strong Buy) or 2 and a VGM Style Score of B or better along with high beta.
Bill Barrett Corporation
Based in Denver, CO, Bill Barrett is an independent energy company engaged in acquiring, exploring, and developing oil and natural gas resources in the United States (read: Oil Sees Strong Start to 2018 in 4 Years: ETFs to Play).
Zacks Rank: #2
VGM Style Score: A
Beta: 3.60
Market Cap: $350.9 million
YTD Performance: 4.5%
AK Steel Holdings
Based in West Chester, OH, AK Steel is a leading producer of flat-rolled carbon, stainless, electrical steel products and stainless tubular steel products that are used in automotive, appliance, construction and manufacturing markets.
Zacks Rank: #2
VGM Style Score: B
Beta: 2.90
Market Cap: $1.7 billion
YTD Performance: 13.8%
Huntsman Corporation
Based in The Woodlands, TX, Huntsman is among the world's largest global manufacturers of differentiated and commodity chemical products for a variety of industrial and consumer applications. You can see the complete list of today’s Zacks #1 Rank stocks here.
Zacks Rank: #1
VGM Style Score: A
Beta: 2.85
Market Cap: $7.4 billion
YTD Performance: 2.4%
American Equity Investment Life Holding Company
Based in West Des Moines, IA American Equity Investment develops and sells fixed index and fixed rate annuity products in the United States.
Zacks Rank: #1
VGM Style Score: A
Beta: 2.55
Market Cap: $2.8 billion
YTD Performance: 6.8%
Triton International Limited
Based in Hamilton, Bermuda, Triton International Limited offers acquisition, leasing, re-leasing, and sale of intermodal container.
Zacks Rank: #2
VGM Style Score: A
Beta: 2.71
Market Cap: $3.09 billion
YTD Performance: 6.1%
Bottom Line
Given the bullish trends, high-beta products will continue to generate outsized returns in the coming weeks and is suitable for risk tolerance investors given its volatile nature.
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Past performance is no guarantee of future results. Inherent in any investment is the potential for loss. This material is being provided for informational purposes only and nothing herein constitutes investment, legal, accounting or tax advice, or a recommendation to buy, sell or hold a security. No recommendation or advice is being given as to whether any investment is suitable for a particular investor. It should not be assumed that any investments in securities, companies, sectors or markets identified and described were or will be profitable. All information is current as of the date of herein and is subject to change without notice. Any views or opinions expressed may not reflect those of the firm as a whole. Zacks Investment Research does not engage in investment banking, market making or asset management activities of any securities. These returns are from hypothetical portfolios consisting of stocks with Zacks Rank = 1 that were rebalanced monthly with zero transaction costs. These are not the returns of actual portfolios of stocks. The S&P 500 is an unmanaged index. Visit https://www.zacks.com/performance for information about the performance numbers displayed in this press release.
Huntsman Corporation (HUN): Free Stock Analysis Report
GUGG-SP 600 PV (RZV): ETF Research Reports
GUGG-SP 400 PV (RFV): ETF Research Reports
Bill Barrett Corporation (BBG): Free Stock Analysis Report
AK Steel Holding Corporation (AKS): Free Stock Analysis Report
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