Rate hike? Forget about it. These stocks are winners no matter what the Fed decides…
It was another strong week for the equity markets, as traders seem to have a sense of benign acceptance over the prospect of a summer rate hike by the Federal Reserve.
If the Fed does hike at either the June or July FOMC meeting, I think they’ll do so because they think the data is strong enough that the economy can withstand the increased cost of capital.
To me, the most encouraging thing about the market action this week (the S&P 500 spiked 2.28%) is that traders seem to have priced in that rate hike.
If this is the case, it means that markets are no longer scared of the next 25-basis-point bump in the federal funds rate. That augurs well for a continued bull market move, and for the stocks in my Next Week’s Winners advisory service.
As for those stocks, next week I have my eye on several companies blaring on my radar with a combination of strong earnings per share growth, strong relative share price performance, bullish technical chart patterns and positive “NewsQ.”
Here’s a sneak peek at two stocks set to surge in the face of a Fed rate hike.
NWW Preview Trade #1
This brick-and-mortar retailer isn’t your average storefront.
In fact, the company has found a way to beat online retailers like Amazon.com in this specialty field, and it’s done so via a combination of attractive locations, knowledgeable staff and the “hands-on” trial experience.
This company is doing so well of late that last week, it delivered blowout fiscal Q1 EPS that jumped 39% year-over-year to $1.45 a share, easily topping consensus estimates.
Sales also surged 24% to $1.07 billion, also way beyond expectations.
The Q1 results helped vault this stock some 9% in Friday trade, but I suspect that’s just the start of a new, long-term move toward further 52-week highs.
NWW Preview Trade #2
I love animals, and I love to pamper my many pets. Doing so via their nutritional needs is easy thanks to this gourmet pet food maker.
When it comes to my pets, this is an area where I spare no expense.
I know I’m not the only one, either, as this company’s demonstrated its ability to consistently grow its earnings per share so much that it has outpaced 95% of all other publicly traded companies in terms of current and annual EPS growth.
If you love your critters, and winning stocks, as much as I do, then you’ll want to make sure you find out more about this one by checking out my Next Week’s Winners advisory service, today!