This is not unprecedented as can be seen from the annals of other countries. In Sweden, Australia and the Eurozone, rates were hiked just after the crisis of 2008. Now all of them have descended to historically low levels. Some market watchers believe that the first rate hike was poorly timed. As evidence of this, they point toward the response of the markets. Now, it is likely that a reversal could be in the cards. Some believe that this could happen in September, if the going gets tougher for the markets. But others think that the situation warrants near-term action. The gap between the junk bonds market and the S&P 500 is evidence that trouble is brewing, they believe. Our Choices What is clear from the observation of leading analysts and experts is that a near-term rate hike is unlikely. Instead, a change of course by the Fed later this year could be on the table. In this case, stocks which thrive in a regime of relatively lower interest rates are likely to be in focus. Utilities and Real Estate Investment Trusts (REITs) are two sectors which are likely to benefit even if rates are not revised further upward. Additionally, taking good metrics into account is crucial in this “stock picker’s” markets. We have narrowed down our search to the following stocks based on a good Zacks Rank and other relevant metrics. New Senior Investment Group Inc. SNR is a REIT focused on investing in senior housing properties located in the U.S. New Senior Investment Group has a Zacks Rank #1 (Strong Buy) and projected growth for the current year is 18%. The forward price-to-earnings ratio (P/E) for the current financial year (F1) is 5.99, lower than the industry average of 15.78. Its earnings estimate for the current year has improved 1% over the last 30 days. Hospitality Properties Trust HPT is a REIT which owns and leases hotels to unaffiliated hotel operators. Hospitality Properties has a Zacks Rank #2 (Buy) and expected earnings growth of 10.6% for the current year. It has a P/E (F1) of 6.28, lower than the industry average of 11.88. Its earnings estimate for the current year has improved 0.1% over the last 30 days. New Residential Investment Corp. NRZ is an REIT which concentrates on investing in, and actively managing, assets related to residential mortgages. New Residential Investment has a Zacks Rank #2 and expected earnings growth of 7.3% for the current year. It has a P/E (F1) of 5.18, lower than the industry average of 7.37. It has a PEG ratio of 0.60, lower than the industry average of 1.20. AGL Resources Inc. GAS is an energy services holding company whose principal business is gas distribution. AGL Resources has a Zacks Rank #2 and its estimated growth for the current year is 16.6%. Its earnings estimate for the current year has improved 0.5% over the last 30 days. Sempra Energy SRE is an energy services holding company involved in the sale, distribution, storage and transportation of electricity and natural gas. Sempra Energy has a Zacks Rank #1 and its projected growth for the current year is 7%, in line with the industry average. Its earnings estimate for the current year has improved 1.2% over the last 30 days. It has a PEG ratio of 2.15, lower than the industry average of 3.56. 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 >> 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 SEMPRA ENERGY (SRE): Free Stock Analysis Report AGL RESOURCES (GAS): Free Stock Analysis Report NEW RESID INV (NRZ): Free Stock Analysis Report HOSPITALITY PRP (HPT): Free Stock Analysis Report NEW SENIOR INV (SNR): Free Stock Analysis Report To read this article on Zacks.com click here. Zacks Investment Research
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