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Stocks to Consider After Report Renews Investor Optimism

Christopher Vargas

The major indexes are up today after a report from Bloomberg News restored investor optimism surrounding the trade war between the US and China. The DJIA has risen over 150 points while the S&P 500 is up 0.9% and the NASDAQ Composite has gained over 1%. Wall Street has been waiting anxiously for tensions to ease between the world’s two largest economies after the US blacklisted 28 additional Chinese companies and exacerbated consumer sentiment.

With such a volatile October thus far and Q3 earnings season right around the corner, investors are looking for stocks that can get them through the uncertain times. Let’s take a look at a few stocks that may help steady the turbulent month that investors have faced.

WEC Energy Group WEC is a classic defensive move to make for investors who are wary of broader market trends. The stock boasts a respectable 2.51% dividend yield that has steadily increased over the past five years, and it also sports a beta ratio of 0.03 further cementing the stock’s capability to weather broader market volatility.

Earning estimates for the next quarter look solid for WEC; our consensus estimates forecast earnings to see a 13.85% increase to $0.74 per share and for net sales to hit $2.12 billion for a 2.13% jump. Full fiscal 2019 estimates call for WEC Energy to see a 5.39% climb in its bottom-line to $2.52 per share on the back of a 0.83% pop in revenue to $7.74 billion. WEC shares have risen 36.8% in 2019, and earnings estimate revisions have trended higher, giving the utility stock a Zacks Rank #2 (Buy).

Franco-Nevada Corporation FNV can be an option for those who are feeling less optimistic than most investors about where the broader market may be headed in the future. The gold mining stock has a beta ratio of -0.03 and pays out a dividend with a 1.04% yield that has consistently risen over the past five years.

Projections look stellar for the gold mining company as our current quarter consensus estimates expect earnings to surge 48.28% to $0.43 per share and for net sales to reach $215.19 million for a 26.14% rally. Fiscal 2019 figures also look strong; our estimates predict the company to see a 35.04% gain in earnings to $1.58 per share and for revenue to climb 22.37% to $799.29 million. Estimates have been revised higher across the board for FNV, giving it a Zacks Rank #1 (Strong Buy)

American Tower Corporation AMT is a REIT that is an owner and operator of wireless and broadcast communications infrastructure in several countries. The company’s focus on communication towers has driven the stock’s spectacular performance as the advancement of telecommunication technology has bolstered its sales. Cellphones have become an indispensable part of people’s daily life and with the upcoming implementation of 5G technology, REIT’s like AMT are in a position to reap the benefits.

The REIT sports a beta ratio of 0.44 and has a dividend yield of 1.68%, which is higher than the benchmark 10-year treasury note’s yield of 1.58%. Current quarter consensus estimates forecast the REIT to make a 5.95% rally in earnings to $1.96 per share and for revenue to increase 4.16% to $1.86 billion. The company has surpassed our earning estimates three out of the past four quarters for an average EPS surprise of 2.27%. AMT shares have soared 139.7% over the past five years, more than doubling the S&P 500’s 52.6% run. The stock is listed as a Zacks Rank #1 (Strong Buy).

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