When looking to select stocks, the more adventurous amongst us scout for growth stocks because we’re willing to invest today for a delayed payback. Others want to invest in names that are established, stable and generating regular income.
The current scenario has however upset our usual patterns with everyone looking for a certain amount of safety, even at the cost of earning less. The lowered risk appetite or increased caution if you will makes this a perfect time to invest in stocks that continue to show positive growth trends for 2020 while also providing some income.
If you’re one of those people looking for the best of both worlds, you should definitely take a look at these-
Scorpio Tankers Inc. STNG
Monaco-based Scorpio Tankers provides marine transportation of petroleum products and crude oil for integrated oil companies, oil traders and other customers.
Recent strength in its numbers are indicative of a market where vessel supply is squeezed by maintenance dry docking, availability of modern vessels, voyage length and unprecedented demand as countries stocked cheap oil both onshore and on water. This is supporting strong spot and contract pricing, even as the consumption of stored oil levels out demand in the face of recovering oil prices.
Zacks Rank #1
Industry: Transportation – Shipping Top 38% (96 out of 252 Zacks classified industries)
Last EPS surprise 64.0%
Current Year expected growth 731.6%
Dividend Yield 2.7%
Nexstar Media Group, Inc NXST
Nexstar, along with affiliates NBC, CBS, ABC, FOX and UPN, offers sales and other services to television stations in the states across Illinois, Indiana, Maryland, Missouri, Montana, Texas, Pennsylvania, Louisiana, Arkansas, Alabama and New York.
Despite a negative impact from the coronavirus, the company’s strong position in the domestic market and accelerated political spending related to primary elections through July, as well as the November presidential federal and state-wide elections makes this stock attractive.
Zacks Rank #2
Industry: Broadcast Radio and Television Top 29% (72 out of 252)
Last EPS surprise 28.4%
Current Year expected growth 216.4%
Dividend Yield 2.6%
Agnico Eagle Mines Ltd. AEM
Toronto, Canada-based Agnico Eagle Mines has gold and other mining operations in Canada, Mexico and Finland in addition to exploration operations in Canada, Europe, Latin America and the U.S. Its LaRonde mine in Quebec is one of Canada’s largest operating gold mines by gold reserves and has provided the foundation for its domestic and international expansion.
In uncertain market conditions, the certainty of gold tends to move prices up, as investors shift money into the yellow metal. This is positive from an industry perspective. Management also said that gold mining operations are likely to be able to recover from the COVID-related slowdown better than others, although the company continues to operate below capacity at most operations. Its exploration activity is also going well. Cash flows are likely to remain stable.
Zacks Rank #2
Industry: Mining – Gold Top 9% (22 out of 252)
Last EPS surprise 27.8%
Current Year expected growth 53.9%
Dividend Yield 1.4%
Reynolds Consumer Products Inc. REYN
Reynolds Consumer Products, known for its Wrap(R) aluminum foil, Hefty(R) bags, and Hefty(R) party cups is a consumer branded and private label products company. Its product range includes cooking products, waste & storage products, and tableware.
Since these products are in the “essential” category as far as the pandemic is concerned, there was no resultant slowdown. On the other hand, with more people working from home, cooking at home and in general, staying home more often, the company actually saw an increase in demand. And in keeping with the work from home trend, some of this increase in demand will stay.
Zacks Rank #2
Industry: Consumer Products – Discretionary Top 33% (83 out of 252)
Last EPS surprise 20.00%
Current Year expected growth 29.66%
Dividend Yield 1.76%
Zacks Top 10 Stocks for 2020
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