Wall Street’s Best Digest | May 20, 2021

Here is your May Wall Street’s Best Digest issue 841.

Earnings season is upon us! According to FactSet, this may be a quarter with the highest percentage of S&P 500 companies reporting a positive EPS surprise since FactSet began tracking this metric in 2008. So far, 91% of companies in the S&P 500 have reported, and 86% have reported a positive EPS surprise and 76% have reported a positive revenue surprise. These positive surprises were led by Consumer Discretionary stocks, whose earnings grew by 50.3%.

That’s good news for the markets—which despite a small downturn a week ago—continues to hold its own. The Dow Jones Industrial Average is up about 1,400 points since our last issue. Our advisors are still cautiously bullish, and overall investment sentiment remains the same.

Job openings are up, unemployment claims are down, and Q2 GDP is forecast at a rousing 8.2%. That sounds like a strengthening economy to me!

And, as you know, earnings drive stock prices, and that bodes well for the remainder of 2021.

We begin this issue with an equipment rental company that weathered the pandemic very well, and is now in a position to see a big growth spurt as the economy gets back on track. Next, our Growth stocks include companies from the furniture, crypto, aviation, cruise line, and gaming industries. In Growth & Income, you’ll find ideas from the chemical, fertilizer, RV, consumer products, and motorcycle sectors.

Moving on to Financials, a sector that is quickly recovering, our contributors are recommending several banks, a research, and a FinTech company. In Technology, we offer a hardware, speaker components, and a semiconductor stock. Our Resources & Energy ideas include companies from the mining and production, as well as utility sectors.

We give you one Low-Priced Stock this month, heralding from the communications industry. And in High-Yield and REITs, you’ll see ideas in the communications and mortgage REIT sectors.

Lastly, our Funds & ETFs section includes some income, as well as growth ideas.

Don’t forget to register for my monthly webinars, along with Kate Stalter, my partner on the Wall Street’s Best Stocks and Wall Street’s Best ETF newsletters. The next one is June 8 at 2 p.m. And I hope to see you (virtually, at least!) at our August 17-19 Summit, entitled Smarter Investing, Greater Profits. You can register here.

Please note, our publication date for Wall Street’s Best Digest is changing to the second Thursday of the month, so please watch your inbox for our next issue in just a few weeks.

Please don’t hesitate to send me your feedback and questions. My new address is nancy@financialfreedomfederation.com.



Breadth remains a rather fickle indicator. NYSE breadth has been much stronger than NASDAQ breadth. Hence the two breadth oscillators are split at the current time: NYSE breadth is on a buy signal, while "stocks only" is not. New 52-week Highs vs. New 52-week Lows has also given a sell signal. While this bit of…
Herc Holdings is a rental equipment company, whose EPS barely flinched during 2020, its BI Rank is an impressive 10.7, and its 3-5 year annual growth rate is estimated at 31.5% (per 9 anlaysts)—not to mention that EPS growth this year is forecasted at 43% and next year at 28%. The potential market is $51…
The equipment rental business is returning to fantastic health, according to the American Rental Association (ARA). Last year, the pandemic threw a wrench into the industry, causing an 11.7% revenue decline. Now for this year, the business is coming back, expected to grow sales to more than $50.2 billion. Looking forward, the ARA is forecasting…

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