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The Zacks Analyst Blog Highlights: Health Insurance Innovations, BioTelemetry, Solaredge Technologies, Aaron's And Petmed Express

Published 08/21/2017, 10:07 PM
Updated 07/09/2023, 06:31 AM
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For Immediate Release

Chicago, IL – August 22, 2017 – 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 Health Insurance Innovations Inc(NASDAQ: (NASDAQ:HIIQ) – Free Report), BioTelemetry, Inc. (NASDAQ: (NASDAQ:BEAT) – Free Report), Solaredge Technologies Inc (NASDAQ: (NASDAQ:SEDG) – Free Report), Aaron's, Inc. (NYSE: (NYSE:AAN) – Free Report) and Petmed Express Inc (NASDAQ: (NASDAQ:PETS) – Free Report).

Today, Zacks is promoting its ''Buy'' stock recommendations. Get #1Stock of the Day pick for free.

Here are highlights from Friday’s Analyst Blog:

Trump, Terror Hint at Market Pullback: 5 Ultra-Safe Picks

Investors seem to be getting increasingly anxious about President Trump’s capability to push through his pro-business agenda. The backlash following his remarks on the violent protests in Charlottesville, which also led to the exodus of business executives from his prominent councils, aggravated matters. In the wake of these, Trump’s senior adviser Steve Bannon’s dismissal from the White House raised hue and cry among the Republican congress men. Heightened terror fears added to the malaise after several lives were lost after a van plowed into a crowd in Barcelona.

Such developments compelled U.S. stock benchmarks to close lower, while a measure of market volatility scaled higher. Some strategists also believe that the market is now the most expensive since 2003, which might result in further selloffs.

Thanks to the bearish trends, investing in stocks unperturbed by market gyrations seems to be a prudent choice.

Increased Volatility Indicate Bearish Market Prospects

Lately, there has been a lot of evidence that volatility is making a comeback. The so-called “fear-index”, the CBOE Volatility Index (VIX), has climbed around 50% so far this month. And if it remains so till the end of this month, it will be the highest one-month percentage increase since August 2015. The VIX is already up 10% on a year-to-date basis. Thanks to such an upward trajectory, the VIX’s 10-day moving average has crossed its 100-day moving average, a sign of further spike in volatility and stock market decline.

Skittish investors have already left Wall Street in fears of additional pullbacks. The Dow Jones and the S&P 500 booked the second straight weekly loss, with the blue-chip index suffering its steepest two-week percentage decline since mid-September 2016. The tech-heavy Nasdaq Composite, in the meanwhile, logged its fourth straight weekly loss, its longest losing weekly streak since May 2016.

Anxiety Increases Over Trump’s Unpopularity

U.S. equities closed off session lows after Steve Bannon left the administration. The departure of Bannon exposed a lot of disagreement in the Trump-era Republican Party. Such differences are hampering Trump administration’s efforts to kick-start the pro-economic policies. Needless to say, Trump’s promises on deregulation, trimming taxes and increasing infrastructure outlays, did, help the broader markets gain traction and climb to record highs this year.

Bannon’s departure may offer some clarity concerning the balance of power in the White House, but, the timing was disastrous. Republican congress leaders are seriously frayed following Trump’s abstruse remarks on the white supremacist rally in Charlottesville that resulted in the death of a counter-protester at the hands of a suspected Nazi sympathizer. In fact, he added to the woes of his own administration by saying “both sides” are liable for the bloodshed.

The real estate magnets’ approval rating has tanked to a record low as his words and actions continue to rattle investors. Several top executives have already parted ways with Trump and have condemned his confrontational response to the Charlottesville incident.

Terror Concerns Linger

Stocks witnessed an extended slide after terrorists struck a crowded tourist street. A van, last week, went through a crowd of tourists in Barcelona, killing at least 13. Such a dastardly act was followed by a second attack in Cambrils, where police said they had shot five terrorists. Both the incidents have claimed the lives of at least 14, with 130 others severely injured.

Travel and leisure stocks took a beating along with banks, while industries across the board were caught in the downturn. Such unfortunate events remind us that the geopolitical risks still pose a threat, with nerves still raw from the escalated tensions in North Korea.

Bet on These 5 Safe Stocks Now

Concerns about Trump administration’s policy paralysis are weighing on stocks, while intensified terror is adding to the malaise. The market, in the meanwhile, is now more expensive that it has been since the dot-com era, a reason for further pullbacks. According to a report by Bank of America (NYSE:BAC), the S&P 500’s forward price-earnings ratio touched its highest level in thirteen and a half years, last month (read more: 5 Great Value Picks for the World's Priciest Market).

With the markets apprehending a healthy pullback, investing in stocks that are immune to market gyrations seems judicious. The best way to go about doing this is by creating a portfolio of low-beta stocks, which are inherently less volatile than the markets they trade in. In this case, a low beta ranges from 0 to 1.

These stocks also boast a Zacks Rank #1 (Strong Buy) or 2 (Buy) and have yielded positive returns in the last four weeks, when the broader markets mostly ended in the red.

Health Insurance Innovations Inc(NASDAQ:HIIQFree Report) is a developer, distributor and cloud-based administrator of individual and family health insurance plans and supplemental products. The company has a Zacks Rank #1 and a beta of 0.68. The company has given a solid return of 19.1% in the last four weeks. In fact, the company has outperformed the industry on a year-to-date basis (+85.4% vs +8.5%).

Health Insurance Innovations’ expected growth rate for the current and next quarters are 13.3% and 14.3%, respectively.

BioTelemetry, Inc.(NASDAQ:BEATFree Report) provides cardiac monitoring, cardiac monitoring device manufacturing, and centralized cardiac core laboratory services. The company has a Zacks Rank #2 and a beta of 0.76. The company has given a steady return of 2% in the last four weeks. In fact, the company has outperformed the industry on a year-to-date basis (+59.8% vs +13.6%).

BioTelemetry’s expected growth rate for the current and next quarters are almost 31% and 47.8%, respectively.

Solaredge Technologies Inc(NASDAQ:SEDGFree Report) designs, develops, and sells direct current (DC) optimized inverter systems for solar photovoltaic (PV) installations in the United States and internationally. The company has a Zacks Rank #1 and a beta of 0.04. The company has given a solid return of 19.7% in the last four weeks. In fact, the company has outperformed the industry on a year-to-date basis (+115.3% vs +15.3%).

Solaredge Technologies’ expected growth rate for the current and next quarters are 2.4% and 10.9%, respectively. You can see the complete list of today’s Zacks #1 Rank stocks here.

Aaron's, Inc.(NYSE:AANFree Report) is an omnichannel provider of lease-purchase solutions. The company has a Zacks Rank #1 and a beta of 0.17. The company has given a solid return of 10.1% in the last four weeks. In fact, the company has outperformed the industry on a year-to-date basis (+36.1% vs +19.2%).

Aaron's expected growth rate for the current and next quarters are 10.7% and 10.3%, respectively.

Petmed Express Inc(NASDAQ:PETSFree Report) and its subsidiaries, doing business as 1-800-PetMeds, operates as a pet pharmacy in the United States. The company has a Zacks Rank #2 and a beta of 0.99. The company has given a solid return of 13.6% in the last four weeks. In fact, the company has outperformed the industry on a year-to-date basis (+92% vs +19.2%).

Petmed Express’s expected growth rate for the current and next quarters are 25% and 16.7%, respectively.

About Zacks Equity Research

Zacks Equity Research provides the best of quantitative and qualitative analysis to help investors know what stocks to buy and which to sell for the long-term.

Continuous coverage is provided for a universe of 1,150 publicly traded stocks. Our analysts are organized by industry which gives them keen insights to developments that affect company profits and stock performance. Recommendations and target prices are six-month time horizons.

Strong Stocks that Should Be in the News

Many are little publicized and fly under the Wall Street radar. They're virtually unknown to the general public. Yet today's 220 Zacks Rank #1 "Strong Buys" were generated by the stock-picking system that has nearly tripled the market from 1988 through 2015. Its average gain has been a stellar +26% per year.See these high-potential stocks free >>.

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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/performancefor information about the performance numbers displayed in this press release.



PetMed Express, Inc. (PETS): Free Stock Analysis Report

Aaron's, Inc. (AAN): Free Stock Analysis Report

Health Insurance Innovations, Inc. (HIIQ): Free Stock Analysis Report

BioTelemetry, Inc. (BEAT): Free Stock Analysis Report

SolarEdge Technologies, Inc. (SEDG): Free Stock Analysis Report

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