For Immediate Release
Chicago, IL – January 04, 2015 – 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 Dyax (DYAX), Eagle Pharmaceuticals (EGRX), Globant (GLOB), Smith & Wesson Holding (SWHC) and Activision Blizzard ( ATVI).
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Here are highlights from Thursday’s Analyst Blog:
Best Stocks to Ring Out the Old, Ring in the New
Let’s face it: 2015 has not been the best of years. The enormous six-year bull run was reined in, as a vicious cycle of seemingly never-ending woes kept Wall Street under pressure.
It all started with the collapse in oil prices. Then came the instability in Greece, global growth concerns and the uncertainty of the Fed rate hike. Persistent weakness in China and the slump in commodities aggravated the situation.
Additionally, the U.S. economy, which was growing at the fastest rate in over a decade in 2014, cooled off substantially this year. While solid job growth, gradually rising inflation, a recovering housing market, robust auto industry and cheap fuel were definitely driving growth, persistent weakness in manufacturing activity, plunging oil prices, and shaky consumer confidence posed threats to economic expansion.
The setback has been more prominent in the small-cap and mid-cap space with the Russell 2000 index tumbling 4.6% and S&P Mid Cap 400 plunging 2.7% in the year. The large-cap space has delivered mixed performances. While the Dow Jones Industrial Average lost 1.2%, S&P 500 was relatively flat and the Nasdaq Composite was up nearly 7%.
In spite of the overall weakness in the broader markets, let’s not forget that the Federal Reserve displayed enough confidence in the U.S. economy to go ahead with a unanimous decision to raise rates after almost a decade. Winners were also to be seen scattered across the equity universe. They not only topped the market but also look good going into the New Year, We have highlighted the best stocks of 2015 sporting either a Zacks Rank #1 (Strong Buy) or #2 (Buy) and backed with a solid industry Rank.
The above table clearly demonstrates the sectors that were the clear winners in 2015. Medical (healthcare), technology, and consumer discretionary were on top and their stocks mainly outperformed the others this year.
Healthcare Wins Back Investor Confidence
After a stellar run, the healthcare sector was badly hammered in September, wiping out all the gains it made early in the year after the Democratic presidential candidate Hillary Clinton tweeted about "price gouging" that led to fears of heightened government regulation or pricing interference in the near future. However, the sector made a robust comeback after the brutal sell-off, thanks to attractive valuations, strong earnings growth and encouraging industry trends.
Most of the real stars are from the biotech corner of the healthcare space. In particular, Dyax (DYAX) more than doubled in 2015. Meanwhile, Eagle Pharmaceuticals ( EGRX), a specialty pharmaceutical company focused on critical care and oncology areas, saw a nearly five-fold price increase.
Technology Firing on All Cylinders
The technology sector has been riding high this year on gradually improving global IT spending, a strengthening economy and better job prospects. Growing demand for novel and advanced technologies such as cloud computing, big data, smartphones, high-speed fiber networks, and the Internet of Things are fueling growth across the sector.