The Zacks Analyst Blog Highlights Leidos, First American Financial, McKesson, The Gap and SkyWest

In This Article:

For Immediate Release

Chicago, IL – December 23, 2024 – 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: Leidos Holdings Inc. LDOS, First American Financial Corp. FAF, McKesson Corp. MCK, The Gap Inc. GAP and SkyWest Inc. SKYW.

Here are highlights from Friday’s Analyst Blog:

Buy 5 Value Stocks Amid Strong Near-Term Upside Potential

U.S. stock markets are experiencing volatility as we approach the end of 2024. On Dec 18, the Fed cut the Fed fund rate by another 25 basis points to complete the 2024 rate cut cycle with a full 1% deduction. However, the central bank indicated just two rate cuts of 25 basis points in 2025 instead of four suggested in September.

At this stage, investors should be prepared to minimize fluctuations in their portfolio and consequently rebalance it with suitable financial assets to maintain stability. It would be prudent to pick value stocks with a favorable Zacks Rank to cushion the portfolio and make some gains from the upside potential. These stocks could prove to be valuable once the rally resumes.

Five such stocks with a solid short-term price upside are: Leidos Holdings Inc., First American Financial Corp., McKesson Corp., The Gap Inc. and SkyWest Inc..

Volatility Likely to Persists

Wall Street's volatility is likely to continue in the near future as market participants remained concerned about highly overvalued U.S. equities as the bull run has been continuing since January 2023. Moreover, investors are uncertain regarding President-elect Donald Trump's economic policies.

Trump's popular policies like the reduction of corporate tax, deregulation and imposition of tariffs on foreign products are expected to boost economic growth, especially for the domestic industries. At the same time, these policies may lead to higher inflation rate, which will make it harder for the Fed's goal of a soft landing of the U.S. economy.

5 Value Stocks to Buy With Strong Short-Term Upside

These five value stocks have strong revenues and earnings potential in 2025 and have seen positive earnings estimate revisions in the last 60 days. Each of our picks sports a Zacks Rank #1 (Strong Buy) and a Value Score of A. You can see the complete list of today's Zacks #1 Rank stocks here.

Leidos Holdings Inc.

Leidos Holdings' defense solutions continue to witness increased contract wins from the Pentagon and other U.S. allies. These contract wins enhanced LDOS' bookings, which led to a solid backlog of $40.56 billion at the end of September 2024. Such a solid backlog bolsters its revenue growth prospects.