The Panic Has Been Postponed

Profit from the Pros The Panic Has Been Postponed Kevin Cook here for Reity... Just when headline-driven investors were ready to throw their portfolios out the window as the Trump Rally careened off the road into the infrastructure ditch, the panic subsided and growth-hungry investors came looking for their favorite stocks in the wreckage. Now, we could still get that 5-6% correction below S&P 2300, where the 200-day is lining up with a "bench" of support above 2250. And I still think it will be a mini-panic to buy. Until then, let's keep things in perspective. Economy humming? Check. Earnings growth? Check. Policy grid-lock? Good enough. Now we just have to check valuation and relative strength. The S&P index is trading near 18 times forward EPS estimates for this year. Inside the index, Consumer Staples and Discretionary are 19-20X (yikes!) while Finance and Healthcare remain attractive at 13.5X and 15.7X. Energy remains expensive at over 25X while Industrials and Materials are no bargains either at 17.7X each. The Growth Sector (I mean Tech) is trading 18.4X. Where Will the Money Rotate? For some perspective on where we've come from since the election, Finance is only up 4% in the past six months and 24% in the past year. The bulk of that return came in the week after Trump's victory. Without Dodd-Frank regulation reform, banks will give back more of that gain, but not all. And I would expect the money to flow to Healthcare and Tech primarily because that's where the earnings growth is. Industrials and Staples are no slouches for growth either, but they are well fully-valued for their growth. Bottom line: Yes, it's one of those times where Cooker say "Prepare your buy lists and BTD (buy the dips)!" I suggest starting with [Zacks Premium Screens]( where you can choose from dozens of predefined screens strategically created to beat the market. Select the ones that match your personal trading style and even modify them with dozens more custom parameters. And Happy BTD! Best, Kevin Cook Senior Stock Strategist, Zacks Investment Research Sponsor [Massive Insider Opportunity About to End]( Suddenly, 3 key insiders bought over 30,000 shares of their company just a few days ago. They already receive stock options as part of their compensation, but they're scooping up even more on the open market. This kind of "cluster buy" can only mean one thing: Those "in-the-know" expect a major price jump. Don't miss your chance to make the most of this and a handful of other compelling opportunities. Check Zacks' insider portfolio before it closes to public entry Sunday, May 21. [See insider trades now >>]( Most Popular Articles from Zacks.com [Value Stock or Value Trap?]( Tracey tells you how not to get fooled by value trap stocks on this week's podcast. [Read More »]( [Winning With Option Volatility]( Kevin Matras talks about volatility and how to use it to your advantage through options. [Read More »]( [The Guide to REIT Investing in a Rising Rate Environment]( Many assume that rate hikes are bad news for REITs, but is that always the case? [Read More »]( [Hit The Gas Or Pump The Brakes With These Car Stocks]( A look a few car stocks that have solid Zacks Ranks and a few names that have the worst Zacks Rank. [Read More »]( [Aggressive Growth Rank Buys]( Good earnings from a specialty retailer and a car sales web service hit the radar screen this week. [Read More »]( Sponsor [Increase Investment Returns with Free Zacks' Portfolio Tracker]( Follow your investments easily in one place. Get free email updates that alert you to major events affecting your stocks and funds, including timely recommendation changes, earnings announcements and, most importantly, earnings estimate revisions. [Click to Learn More>>]( [Bull of the Day: Kelly Services (KELYA)]( The stock broke out to new highs in the face of an abysmal market. [Read More »]( [New Zacks Strong Buys for May 19th]( Here are 5 stocks added to the Zacks Rank #1 (Strong Buy) List today. [Read More »]( [Customize Your Profit from the Pros Delivery]( Connect with Us: [Facebook]( [Twitter]( [StockTwits]( Contact Info: Phone: 1.800.767.3771 ext. 9339 Email: [support@zacks.com](emailto:support@zacks.com) [Terms]( | [Privacy]( | [Unsubscribe]( [Zacks] You are registered to receive this "Profit From The Pros" e-mail newsletter at {EMAIL}