The Zacks Analyst Blog Highlights XLV, Tenet Healthcare, PKB and Dycom Industries

Zacks
05 Nov 2024

For Immediate Release

Chicago, IL – November 5 2024 – Zacks.com announces the list of stocks featured in the Analyst Blog. Every day the Zacks Equity Research analysts discuss the latest news and events impacting stocks and the financial markets. Stocks recently featured in the blog include: Health Care Select Sector SPDR ETF XLV, Tenet Healthcare THC, Invesco Dynamic Building & Construction ETF PKB and Dycom Industries DY.

Here are highlights from Monday’s Analyst Blog:

2 Sector ETFs to Benefit Despite Soft October Jobs Data

The U.S. economy added 12,000 jobs in October, down sharply from September and below the Dow Jones estimate for 100,000, as quoted on CNBC. The Boeing strike likely have withdrawn 44,000 jobs in the manufacturing sector, while hurricanes also likely to have weighed on the total job creation.

Hurricanes Helene and Milton impacted the Southeast – Florida and North Carolina in particular – while the Boeing strike also hit the labor market. Recent developments indicate that the Boeing standoff could be nearing an end.

Health care and government again led job creation. But one of the leading sectors so far, leisure and hospitality, reported a decline of 4,000, while retail trade and transportation and warehousing also saw moderate drops.

The unemployment rate in the United States was at 4.1% in October of 2024, remaining unchanged from the three-month low in the prior month, and aligned with market expectations. In October, average hourly earnings for all employees on private nonfarm payrolls rose by 13 cents, or 0.4%, to $35.46.

Over the past 12 months, average hourly earnings have increased by 4.0%. In October, average hourly earnings of private-sector production and nonsupervisory employees rose by 12 cents, or 0.4%, to $30.48.

Revisions also lowered previously reported job creation totals by 112,000 for August and September combined. The slower job growth could be good news on the inflation front but cause economic slowdown.

Below, we have highlighted some of the sectors that will likely see smooth trading in the days ahead in light of the October jobs data.

Sectors in Focus

Healthcare

Employment in the healthcare industry increased by 52,000 in jobs, in line with the average monthly gain of 58,000 over the past one year. Over the month, employment rose in ambulatory health care services (+36,000) and nursing and residential care facilities (+9,000).

The Zacks Rank #1 (Strong Buy) Health Care Select Sector SPDR ETF can be played to tap the moderate momentum. Tenet Healthcare, which has a Zacks Rank #1 deserves a mention. It is an investor-owned health care services company, which owns and operates general hospitals and related health care facilities for urban and rural communities in numerous states, and has offices in California and Florida.

Construction

In October, employment in construction (+8,000). The industry had added an average of 20,000 jobs per month over the prior 12 months. Over the month, nonresidential specialty trade contractors added 14,000 jobs.

Investors can keep a watch on the price movement of Invesco Dynamic Building & Construction ETF. The fund PKB is comprised of stocks of U.S. building and construction companies. The Index is designed to provide capital appreciation by thoroughly evaluating companies based on a variety of investment merit criteria, including fundamental growth, stock valuation, investment timeliness and risk factors.

As far as the stock is concerned, Zacks Rank #2 Dycom Industries is a top bet. It is a leading provider of specialty contracting services throughout the United States.

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Past performance is no guarantee of future results. Inherent in any investment is the potential for loss. This material is being provided for informational purposes only and nothing herein constitutes investment, legal, accounting or tax advice, or a recommendation to buy, sell or hold a security. No recommendation or advice is being given as to whether any investment is suitable for a particular investor. It should not be assumed that any investments in securities, companies, sectors or markets identified and described were or will be profitable. All information is current as of the date of herein and is subject to change without notice. Any views or opinions expressed may not reflect those of the firm as a whole. Zacks Investment Research does not engage in investment banking, market making or asset management activities of any securities. These returns are from hypothetical portfolios consisting of stocks with Zacks Rank = 1 that were rebalanced monthly with zero transaction costs. These are not the returns of actual portfolios of stocks. The S&P 500 is an unmanaged index. Visit https://www.zacks.com/performance for information about the performance numbers displayed in this press release.

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Tenet Healthcare Corporation (THC) : Free Stock Analysis Report

Dycom Industries, Inc. (DY) : Free Stock Analysis Report

Health Care Select Sector SPDR ETF (XLV): ETF Research Reports

Invesco Building & Construction ETF (PKB): ETF Research Reports

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