The Zacks Analyst Blog Highlights The Ensign Group, Cardinal Health, Consolidated Water, Colgate-Palmolive and American Water Works

The Zacks Analyst Blog Highlights The Ensign Group, Cardinal Health, Consolidated Water, Colgate-Palmolive and American Water Works

Zacks Equity Research
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For Immediate Release

Chicago, IL – March 6, 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: The Ensign Group, Inc. ENSG, Cardinal Health, Inc. CAH, Consolidated Water Co. Ltd. CWCO, Colgate-Palmolive Co. CL and American Water Works Company, Inc. AWK.

Here are highlights from Tuesday’s Analyst Blog:

5 Defensive Stocks to Buy as Consumer Sentiment Dips Again

Americans who were bullish about the economy until a few weeks ago have suddenly grown concerned as inflation once again increased in January. The confidence level thus has once again taken a hit, as consumers believe that the Federal Reserve could delay the first rate cut for a longer time.

The University of Michigan’s consumer sentiment survey came up with a reading of 76.9 in February, declining unexpectedly from January’s reading of 79. This is the first decline in consumer sentiment in the past three months.

Moreover, the consumers’ expectation index shows that prices will jump at an annual rate of 3% over the next year, implying an increase from 2.9% in January. However, their outlook for costs over the next five to 10 years remains unchanged at 2.9% from the prior month.

Consumer sentiment improved steadily over the past few months but has again been dented as data showed that inflation jumped in January.

Consumer price index (CPI) increased 0.3% month over month in January and 3.1% from the same period a year ago. Also, the core CPI, which excludes the volatile energy and food prices, saw a sequential increase of 0.4% and a year-over-year increase of 3.9% in January.

The unexpected jump in inflation after a sharp decline over the past few months has dimmed hopes of a rate cut by the Federal Reserve in March.

The Federal Reserve had earlier said that the first rate cut in March is unlikely as inflation remains above its 2% target. Investors were expecting the first quarter-percentage-point rate cut in May following that.

However, many now believe that the Federal Reserve could delay the first rate cut till its June FOMC meeting.

Markets are now pricing in a 25% chance that the Federal Reserve will go for the first 25-basis points rate cut in May, according to the CME FedWatch Tool. The probability was more than 70% till a few weeks back.

Higher interest rates for a longer time increase borrowing costs, which doesn’t bode well for the economy.

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