【in the electric mist ending explained】3 Consumer Cyclical Mutual Funds to Grab in December
As we move into the last month of this in the electric mist ending explainedrocky year, investors may gear up to invest in some of the beaten-down sectors. Even as the coronavirus pandemic-led slump pushed major indexes to their record lows, the S&P 500, the Dow and the Nasdaq were back on track in November, registering more than a 10% gain. The Dow crossed the 30,000 point-mark last month and optimism about a coronavirus vaccine breakthrough cheered investors to hope for a faster economic recovery and growth.
Expectations of a COVID-19 vaccine discovery have given a new lease of life to the economy, helping beaten-down economically-sensitive cyclical stocks to gain traction.And since the mRNA-based technology used by Pfizer and Moderna claims to be about 95% effective, traders widely expect the pharmaceutical giants to begin emergency distribution of their respective vaccine candidates.
With the availability of the vaccine, the beaten-down travel and tourism stocks will also be able to make a comeback. Possibility of progress in the coronavirus vaccine and decline in cases brightens the prospects of travel, which in turn will drive demand for oil. Energy, especially oil, has been one of the biggest losers of this year. However, with brighter prospects, energy shares have now jumped more than 30% in November. Along with that, apparel stocks are recovering in the holiday season since vaccine hopes and return to normal lifestyle will increase consumer outlays.
However, traders are unsure about the performance of the stock market in the presidential transition phase. The Trump administration may blacklist some major China companies, CNOOC, an oil and gas giant, and SMIC, a chip manufacturer, among many others. This can dampen the U.S.-China trade relations, leading stocks to another roller-coaster ride. However, the vaccine breakthrough should have a subsequently positive impact on the economy and keep the northward trend on. Along with that, the market hopes that the economy will recover faster as the former Fed Chair Janet Yellen is expected to become the next Treasury Secretary. Yellen is expected to take unprecedented steps to provide support to the pandemic-hit economy.
Let’s also not forget the Santa Claus Rally. Like each year, despite the pandemic slump, the stock market may witness a sustained increase that occurs in the last week of December through the first two trading days in January. The rally has several explanations like tax considerations, a general feeling of optimism and happiness across Wall Street as well as the investing of holiday bonuses. This holiday tradition will certainly give beaten-down cyclical stocks a boost.
Story continues
3 Funds to Buy
Given the positive outlook for December, we have shortlisted three consumer cyclical funds that carry a Zacks Mutual Fund Rank #1 (Strong Buy) or #2 (Buy) and are poised to gain significantly. Moreover, these funds have encouraging year-to-date (YTD) returns. Additionally, the minimum initial investment is within $5000. We expect these funds to outperform peers in the future.
The question here is why should investors consider mutual funds? Reduced transaction costs and diversification of portfolio without several commission charges that are associated with stock purchases are primarily why one should be parking money in mutual funds (read more: Mutual Funds: Advantages, Disadvantages, and How They Make Investors Money).
Fidelity Select Automotive Portfolio
FSAVX fund aims for capital appreciation. This non-diversified fund invests majority of assets in common stocks of companies involved in the manufacture, marketing or sale of automobiles, trucks, specialty vehicles, parts, tires and related services.
This Sector - Other product has a history of positive total returns for over 10 years. Specifically, the fund has returned 12.6% and 10.2% over the past three and five years, respectively. To see how this fund performed compared to its category, and other #1 and 2 Ranked Mutual Funds, please click here.
FSAVX has a Zacks Mutual Fund Rank #1 and an annual expense ratio of 1.00%, which is below the category average of 1.22%
Fidelity Select Retailing Portfolio
FSRPX fund aims for capital appreciation. This non-diversified fund invests a large portion of its assets in the common stock of companies engaged in merchandising finished goods and services, primarily to individual consumers.
This Sector - Other product has a history of positive total returns for over 10 years. Specifically, the fund has returned 20.9% and nearly 16% over the past three and five-year period, respectively. To see how this fund performed compared to its category, and other #1 and 2 Ranked Mutual Funds, please click here.
FSRPX has a Zacks Mutual Fund Rank #1 and an annual expense ratio of 0.74%, which is below the category average of 1.22%.
Fidelity Select Leisure Portfolio
FDLSX fund aims for capital appreciation. This non-diversified fund invests majority of assets in common stocks of companies, principally engaged in the design, production, or distribution of goods or services in the leisure industries.
This Sector - Other product has a history of positive total returns for over 10 years. Specifically, the fund has returned 6.9% and 8.7% over the past three and five years, respectively. To see how this fund performed compared to its category, and other #1 and 2 Ranked Mutual Funds, please click here.
FDLSX has a Zacks Mutual Fund Rank #2 and an annual expense ratio of 0.76%, which is below the category average of 1.22%.
Want key mutual fund info delivered straight to your inbox?
Zacks’ free Fund Newsletter will brief you on top news and analysis, as well as top-performing mutual funds, each week.
Get it free >>
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
Get Your Free (FSRPX): Fund Analysis Report
Get Your Free (FDLSX): Fund Analysis Report
Get Your Free (FSAVX): Fund Analysis Report
To read this article on Zacks.com click here.
Zacks Investment Research
View comments
-
Data Gumbo Joins Blockchain In Transport AllianceAMG or BX: Which Is the Better Value Stock Right Now?Will Nordstrom's Growth Efforts Cushion the Stock in 2019?Is Advance Auto Parts (AAP) Stock Outpacing Its Retail-Wholesale Peers This Year?Fed virus-driven cut may test new approach to inflationBRIEF-Sanichi Technology Posts Qtrly Net Loss 10.9 Mln RGTUpcoming Deadline Reminder: The Schall Law Firm Encourages Investors in Arrival SA with Losses of $100,000 to Contact the FirmBest Buy deals on top-tier devices by Samsung, Sony and more are ushering in 2022 with huge savingsThis Alibaba Stock Correction Offers an Opportunity You Can’t RefuseDXP Enterprises, Inc. (NASDAQ:DXPE): Time For A Financial Health Check
下一篇:Stocks adding to biggest one day gain on stimulus hopes
- ·No matter how long you've been at this, your small business is now a startup
- ·Why Bank of America (BAC) Could Beat Earnings Estimates Again
- ·Alibaba Is Strong Enough to Face the Regulators, Says Analyst
- ·Big claims strain senior living market for U.S. insurers
- ·Lam Research (LRCX) Stock Moves -1.58%: What You Should Know
- ·Morning News Call - U.S., January 2
- ·BRIEF-Power Financial Group Says Wu William Wai Leung Has Resigned As Chief Executive Officer
- ·Rush to stockpile sweeps UK factories ahead of Brexit: PMI
- ·U.S. CDC reports 1,827,425 coronavirus cases
- ·Insperity (NSP) Stock Rises 66.1% in a Year: Here's Why
- ·Deutsche Bank finally reported an annual profit, but all anyone cares about are merger rumors
- ·Are Avenir Telecom S.A.’s (EPA:AVT) High Returns Really That Great?
- ·This Alibaba Stock Correction Offers an Opportunity You Can’t Refuse
- ·Earnings Beat: GEE Group, Inc. Just Beat Analyst Forecasts, And Analysts Have Been Updating Their Models
- ·Are You the Right Investor for U.S. Oil and Gas Royalty Trusts? In Depth Analysis of Expectations for Future Cash Flows Before an Investment Decision Is Required
- ·Insperity (NSP) Stock Rises 66.1% in a Year: Here's Why
- ·Moderna to supply 100 to 125 mln COVID-19 vaccine doses globally in first quarter
- ·January jobs report — What to know in markets Friday
- ·How Should Investors React To Colfax Corporation's (NYSE:CFX) CEO Pay?
- ·Our Take On XPD Soccer Gear Group Limited’s (ASX:XPD) CEO Salary
- ·Can Guess (GES) Keep the Earnings Surprise Streak Alive?
- ·We're Hopeful That Datasea (NASDAQ:DTSS) Will Use Its Cash Wisely
- ·Bitcoin – Holds on to $4,000 Levels as the Bears Make a Move
- ·Salin Bank Beefs Up Commercial Loan Banking Division
- ·Wall Street Week Ahead: Bond investors look for Fed to justify steepening yield curve
- ·What To Know Before Buying Canacol Energy Ltd (TSE:CNE) For Its Dividend
- ·Market Sentiment Improves As Investors Pin Hopes on G7 Action
- ·At S$0.22, Is Indofood Agri Resources Ltd. (SGX:5JS) Worth Looking At Closely?
- ·BRIEF-Dongguan Development To Invest 10.98 Bln Yuan In Subway Construction Project Company
- ·Man Wah Holdings Limited (HKG:1999): Did It Outperform The Industry?
- ·INVESTOR ALERT: Kirby McInerney LLP Continues Investigation of Shareholder Claims Against Hallmark Financial Services Inc.
- ·Euro zone inflation falls, though core rate inches higher
- ·Asian stocks mixed as China-US talks end with no deal
- ·Robuxgenerator Inc Launches Free Robux Generator to Get Free Robux in 2022 without Verification
- ·China Is Reopening Its Wet Markets. That's Good
- ·Do Institutions Own InnoTek Limited (SGX:M14) Shares?