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Will There Be a Recession in 2024?

  • (1:30) - Breaking Down The Economy Heading Into The End of The Year

  • (10:00) - Is The Slow Down Here With People Having A Hard Time Finding Jobs?

  • (16:30) - Using Economic Data To Understand What Is Happening Within Industries

  • (24:00) - John Blanks Top Picks To Keep On Your Radar

  • (30:10) - What Are Some Other Areas Your Should Have On Your Watchlist For 2024?

  • (39:30) - Episode Roundup: SIG, ULTA, SAIC, HALO, ANTE, LLY, PFE, ALB

  • Podcast@zacks.com

 

Welcome to Episode #383 of the Zacks Market Edge Podcast.

Every week, host and Zacks stock strategist, Tracey Ryniec, will be joined by guests to discuss the hottest investing topics in stocks, bonds, and ETFs and how it impacts your life.

This week, Tracey is joined by Zacks Chief Equity Strategist and editor of the Large Cap Trader, John Blank, to discuss the outlook for 2024.

Every year, in December, Tracey and John discuss whether or not a recession is coming. In 2022, they had some great analysis with John recommending investors buy the Invesco QQQ ETF because “it sold off the worst, and it will come back the first.” QQQ is up 35% year-to-date.

But what should investors do next year, now that the growth stocks have rebounded?

5 Stocks: Put These on Your Shortlist, or Not?

1. Science Applications International Corp. (SAIC)

SAIC just reported earnings and beat and raised. John Blank owns SAIC in his Large Cap Trader portfolio. The shares of SAIC spiked on the earnings news and are now up 16.8% year-to-date.

SAIC trades at 18.4x and pays a dividend yielding 1.1%. It’s a Zacks Rank #2 (Buy).

Should SAIC be on your shortlist for 2024?

2. Arista Networks, Inc. (ANET)

Arista Networks is in cloud networking. Shares of Arista Networks are up 75.7% year-to-date.

It’s not cheap, with a forward P/E of 32.8. Arista Networks does not pay a dividend. Scared it’s too expensive? John Blank says to wait for a pullback as an entry point.

Arista Networks is a Zacks Rank #2 (Buy) stock.

Should Arista Networks be on your shortlist for 2024?

3. Eli Lilly and Co. (LLY)

Eli Lilly was featured on this podcast a year ago. At that time, Tracey thought it was too expensive. Shares were trading at 47x.

In Dec 2023, shares are even more expensive, with a forward P/E of 89. Eli Lilly is up another 61% this year.

Eli Lilly is a Zacks #3 (Hold) stock.

Is Eli Lilly too hot to handle in 2024?

4. Pfizer Inc. (PFE)

Tracey and John discussed Pfizer on last year’s podcast. At that time, it was cheap with a forward P/E of just 7.

In 2023, shares of Pfizer have plunged, falling 43% year-to-date. It’s no longer as cheap, however, with a forward P/E of 19.

Pfizer is paying the big dividend, though, currently yielding 5.6%.

But is Pfizer a value, or a trap, in 2024?

5. Signet Jewelers Ltd. (SIG)

Signet is the largest retailer of diamond jewelry in the world. It recently reported earnings and said it saw sequential improvement in engagement trends.

Signet shares have surged 40% year-to-date but are still cheap. It trades with a forward P/E of just 9. Signet also pays a dividend, currently yielding 1%.

Should a retailer like Signet be on your short list in 2024, even if a recession is coming?

What Else do you Need to Know About the Outlook for 2024?  

Tune into this week’s podcast to find out.

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

Pfizer Inc. (PFE) : Free Stock Analysis Report

Eli Lilly and Company (LLY) : Free Stock Analysis Report

Signet Jewelers Limited (SIG) : Free Stock Analysis Report

Science Applications International Corporation (SAIC) : Free Stock Analysis Report

Arista Networks, Inc. (ANET) : Free Stock Analysis Report

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Zacks Investment Research