Ahhhh, Labor Day. That bittersweet holiday where you gather with friends, fire up the Weber, crack open a few cold ones and ease off into the weekend. It's a great time to celebrate the last great weekend of the summer. But for guys like me who crave those summer nights, it's a rough reminder that the warmest days are behind us and the fall is coming. For Chicago Bears fans like me, that means four months of frustration and misery.
The market isn't exactly rallying into the close of summer either. Major market indexes have been under pressure for the last two weeks. Late into the trading day Friday, the Dow was off 2%, while the S&P 500 flirted with the support at 1,915. It's becoming more and more difficult to find winning stock ideas. But don't despair, the Zacks Rank is here to help you uncover winning stocks in any market. In the spirit of Labor Day, let's play Peter Lynch and find some stocks that we know.
Heineken NV (OTCQX:HEINY)
Shares of HEINY had been bouncing around in a consolidation range between March and July. A great earnings report in August led to a breakout to new 52-week highs above $42.50. But the market took all that back and pushed shares into the middle of the range below $40. Looks like short-term support sits at $38, about a dollar above the previous bottom.
Hormel Foods (NYSE:HRL)
If you're going to be drinking beer, you should probably have something to eat too. Build yourself up a nice base. Perhaps some Lloyds Barbecue Ribs? Look no further than this food brand, Hormel. Hormel Foods Corporation is a multinational manufacturer and marketer of consumer-branded meat and food products, many of which are among the best known and trusted in the food industry. Products manufactured by the corporation include hams, bacon, sausages, franks, canned luncheon meats, stews, chilies, hash, meat spreads, shelf-stable microwaveable entrees, salsas and frozen processed foods.
Hormel's shares have held up very well amidst the market selloff. Their price dipped from a 52-week high at $64 to $59 and found plenty of support. Shares have always remained above the 50-day moving average and still show a strong bullish trend. Slow and steady wins the race here.
Home Depot (NYSE:HD)
If you're like me, you're not just going to sit around and drink beer this weekend. You're going to drink beer and do some projects. What's more American than building a tree house while guzzling a six pack? Before you crack open that first beer, make sure you've got your materials ready. Home Depot is here to help. Home Depot is one of the world's largest home improvement retailers. The company offers a level of service unprecedented among warehouse-style retailers. Home Depot stores cater to do-it-yourselfers, as well as home improvement, construction and building maintenance professionals.
Home Depot's shares experienced wild volatility along with the market gyrations. The range in that volatile week went from $124 down to $92. Since then shares have rebounded a bit, bouncing around $115 the last few days.
Southwest Airlines (NYSE:LUV)
Maybe you're lucky enough to be hitting the road for a vacation this weekend. Wanna get away? Check out my favorite airline, Southwest. Southwest Airlines is a major domestic airline that provides primarily short-haul, high-frequency, point-to-point, low-fare service. Southwest operates Boeing 737 aircraft in numerous cities. Southwest has the lowest operating cost structure in the domestic airline industry and consistently offers the lowest and simplest fares. Southwest also has one of the best overall customer service records.
LUV's shares have been descending from March highs all year. The stock bottomed out in early July and made an assault on $41 until the market rocked it and dropped prices down to $37. A temporary holding pattern here has been established, while the commodity channel index is slowly increasing off the extreme oversold condition down near -200. A cross over the zero line would be a big buy signal for this stock.
Casey's General Stores (NASDAQ:CASY)
Of course, if you're hitting the road the old-fashioned way, you're going to have to stop somewhere to refuel. May I suggest this Zacks Rank #1 (Strong Buy), Casey's General Stores. Casey's General Stores, Inc. operates convenience stores under the name Casey's General Store in Midwestern states, primarily Iowa, Missouri and Illinois. The stores carry a broad selection of food (including freshly prepared foods such as pizza, donuts and sandwiches), beverages, tobacco products, health and beauty aids, automotive products and other non-food items.
The market fluctuations seem lost on CASY's stock. Really all it did was form a sort of bullish triangle pattern. CASY's shares have been experiencing higher lows along with lower highs, coiling like a spring. Shares still remain well above the 50-day moving average and in line with the 21-day meaning the bullish trend is still very strong.
Bottom Line
Don't let this market get you down. Take it easy and relax this weekend, knowing you've got great stock ideas that aren't just a flash in the pan. These are tried and true companies that have withstood the test of time. With the Zacks Rank powering these ideas, you'll be happy you stopped and smelled the roses this Labor Day.
Editor's Note: This article discusses one or more securities that do not trade on a major U.S. exchange. Please be aware of the risks associated with these stocks.
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