The Dow Jones Industrial Average (DJIA) has risen for four successive days, marking the longest winning streak in more than 30 days. This indicates positive investor sentiments, aided primarily by the promising progress in coronavirus vaccine study. Increased U.S. industrial production also added to the optimism.
Promising Vaccine Study
Moderna MRNA has inched closer to a coronavirus vaccine, setting the stage for phase 3 trial by July-end, as suggested by a new study. The new details of the phase 1 study of the company’s experimental coronavirus vaccine showed that the vaccine induced desired neutralizing antibodies in 100% of the participants who were evaluated.
Notably, no serious side effects were reported by the participants through the study period, signifying that the vaccine was well tolerated and safe. Dr Anthony Fauci, director of the National Institute of Allergy and Infectious Diseases, appreciated the study and added that the data from the phase 1 trial has established the fact that the candidate is well capable of inducing sufficient neutralizing antibodies.
It is widely expected that the results from the large study will come out by 2020-end.
Sign of Economic Recovery
Industrial production in the United States increased 5.4% in June following the improvement of 1.4% in May, according to the Federal Reserve statistical release. Thus, U.S. manufacturing has increased for two months in a row after declining 12.7% in April. Notably, the rise in industrial production was higher than the expectations of most economists.
Importantly, social-distancing measures were eased and people returned to work as factories in the United States reopened in May and June. This has helped industrial production recover from its record decline in April.
Stocks in the Spotlight
With the string of positive developments aiding the stock market rally, it will be wise for the investors to invest in growth stocks. Growth stocks usually grow at a rate higher than the market’s average. Hence, we have shortlisted four stocks that flaunt a Zacks Rank #1 (Strong Buy) and possess a Growth Score of A. You can see the complete list of today’s Zacks #1 Rank stocks here.
BJ’s Wholesale Club Holdings, Inc. BJ: BJ’s Wholesale is an operator of membership warehouse clubs, primarily in the U.S. East Coast. Notably, this Westborough, MA-headquartered company’s expected EPS growth rate for the next five years is 13.5%, which compares favorably with the industry's 12.3%.
Asbury Automotive Group, Inc. ABG is a leading automotive retailer in the domestic market. The stock is likely to see earnings growth of 2.9% and 22.7% in 2020 and 2021, respectively. The company, headquartered in Duluth, GA, has also beat the Zacks Consensus Estimate in three of the past four reported quarters.
DCP Midstream, LP DCP has operating interests in midstream energy infrastructures spreading across the United States. The partnership has witnessed no revisions in the Zacks Consensus Estimate for 2020 bottom line in the past 30 days. For 2021, the partnership has seen upward revisions for the consensus estimate of earnings over the same period.
Based in Covington, LA, Pool Corporation POOL is among the largest distributors of swimming pool supplies in the world. In the past 60 days, the company has seen upward revisions of the Zacks Consensus Estimate for 2020 and 2021 earnings.
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Click to get this free report BJs Wholesale Club Holdings, Inc. (BJ) : Free Stock Analysis Report Moderna, Inc. (MRNA) : Free Stock Analysis Report Pool Corporation (POOL) : Free Stock Analysis Report Asbury Automotive Group, Inc. (ABG) : Free Stock Analysis Report DCP Midstream Partners, LP (DCP) : Free Stock Analysis Report To read this article on Zacks.com click here. Zacks Investment Research