Send me real-time posts from this site at my email
Zacks

The Zacks Analyst Blog Highlights: The Clorox Company, MGP Ingredients, Middlesex Water, Baidu and Alibaba

For Immediate Release

Chicago, IL – May 26, 2020 – 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: The Clorox Company CLX, MGP Ingredients, Inc. MGPI, Middlesex Water Co. MSEX, Baidu, Inc. BIDU and Alibaba Group Holding Ltd. BABA.

Here are highlights from Friday’s Analyst Blog:

Renewed U.S.-China Tensions Put These 3 Safe Stocks on Top

Wall Street is losing steam, owing to new tensions between the United States and China amid the coronavirus pandemic. While renegotiation of the phase one trade deal signed in January this year remains a debate, the Senate’s new bill has created another. In such a scenario, it would be prudent to take a look at safe stocks.

US Holds Beijing Accountable for the Pandemic

On May 21, White House economic adviser Larry Kudlow said that the U.S.-China Phase 1 trade agreement was intact and doesn't require renegotiation. However, he made it clear that he wasn’t happy with China’s response to the pandemic. Earlier, President Donald Trump had said that China must be held accountable for the virus’ spread. Kudlow’s words only reflected Trump’s.

The rising tension between the two countries made its way to the financial markets on May 21. The broader S&P 500 index lost 0.8% to close at 2,948.51, the Dow Jones Industrial Average declined 0.4% to hit 24,474.12 and the tech-laden Nasdaq Composite lost 1% to close Thursday’s trading session at 9,284.88. A major reason for this decline was also a new legislation passed by the Senate earlier this week.

Senate’s New Bill Could Drop Chinese Companies from US Markets

In a surprising move, the U.S. Senate approved a new legislation on May 20 that could potentially delist nearly 800 Chinese companies from U.S. stock exchanges. Simply put, these companies can may no longer benefit from American investments.

Some of the companies under fire are Chinese search engine leader Baidu, Inc. and ecommerce giant Alibaba Group Holding Ltd., among others.

The Holding Foreign Companies Accountable Act was submitted by Senator John Kennedy for unanimous consent. The bill was approved without objection. The new legislation was co-sponsored by Democratic Senator Chris Van Hollen of Maryland and Republican Senator Kevin Cramer of North Dakota.

The new legislation came after the Trump administration made its stand clear on stringent watch over Chinese companies. On May 19, Larry Kudlow told Fox Business Network that “we have to” seek for more accountability from Chinese companies listed on major U.S. stock exchanges.

Kudlow further said that this was necessary for investor protection and national security since many of these companies have “had scandals” and were responsible for investors’ loss. This was due to the companies’ lack of transparency, which, in turn, was largely because of the Chinese government, which forbids that kind of directness.

Of course, now it remains to be seen whether the bill is approved by the Democratic-controlled House of Representatives before it can be approved by President Donald Trump to be signed into law.

3 Stocks to Grab Right Now

In a scenario such as this, one can never go wrong with betting on safe stocks. These are those companies that are afloat even in difficult times because of the nature of their products and/or services.

For example, stocks belonging to the consumer staples and utility industries are ideal to invest in right now, as these seldom witness a decline in the demand for their goods and services. After all, food and essential products will always be in demand and utility services such as water and gas are necessary products for sustenance.

We have therefore chosen three safe stocks that could help one’s portfolio be immune to any upcoming market gyrations. All of these stocks carry a Zacks Rank #1 (Strong Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.

The Clorox Company is a manufacturer and marketer of consumer and professional products. The Zacks Consensus Estimate for the company’s current-year earnings has moved 8% north in the past 60 days. The Clorox Company’s expected earnings growth rate for the current year is 9%.

MGP Ingredients, Inc. is a producer and supplier of distilled spirits, specialty wheat proteins and starch food ingredients. The Zacks Consensus Estimate for the company’s current-year earnings has moved 19.7% north in the past 60 days. MGP Ingredients’ expected earnings growth rate for the current year is 7.1%.

Middlesex Water Co. is an owner and operator of regulated water utility and wastewater systems. The Zacks Consensus Estimate for the company’s current-year earnings has moved 1% north in the past 60 days. Middlesex Water Company’s expected earnings growth rate for the current year is 2.5%.

Today's Best Stocks from Zacks

Would you like to see the updated picks from our best market-beating strategies? From 2017 through 2019, while the S&P 500 gained and impressive +53.6%, five of our strategies returned +65.8%, +97.1%, +118.0%, +175.7% and even +186.7%.

This outperformance has not just been a recent phenomenon. From 2000 – 2019, while the S&P averaged +6.0% per year, our top strategies averaged up to +54.7% per year.

See their latest picks free >>

Media Contact

Zacks Investment Research

800-767-3771 ext. 9339

support@zacks.com                                   

http://www.zacks.com                                                 

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 http://www.zacks.com/performancefor information about the performance numbers displayed in this press release.


Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report
 
Baidu, Inc. (BIDU): Free Stock Analysis Report
 
The Clorox Company (CLX): Free Stock Analysis Report
 
Middlesex Water Company (MSEX): Free Stock Analysis Report
 
Alibaba Group Holding Limited (BABA): Free Stock Analysis Report
 
MGP Ingredients, Inc. (MGPI): Free Stock Analysis Report
 
To read this article on Zacks.com click here.
 
Zacks Investment Research

Welcome! Is it your First time here?

What are you looking for? Select your points of interest to improve your first-time experience:

Apply & Continue