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4 Stocks From Highest Job-Creating Sectors in September

Zacks Equity Research

The number of new job additions in September can be considered decent as new positions were created across various key sectors. The unemployment rate in the country also stooped to a five-decade low, which is undoubtedly good news.

In addition, the country’s economic scenario could ease ahead, given that the United States and China are set for high-level trade talks. This means that new job additions could be in the cards across sectors that are doing well. Therefore, it would be ideal to invest in a couple of high job-gaining sectors at present.

US Economy Inches Closer to Full Employment

According to the Bureau of Labor Statistics, total non-farm payroll in the country rose by 136,000 in September. The report pointed toward a healthy American economy despite more companies finding it difficult to find qualified workers. However, September’s new job creations surpassed estimates of 125,000 that were expected by economists surveyed by Dow Jones, CNBC reported.

Unemployment at 5-Decade Low

Apart from the decent number of new jobs, the unemployment rate in the United States dropped 0.2 percentage points to hit a five-decade low of 3.5% last month.

U6 — the real unemployment rate — which includes both discouraged workers and the underemployed, was reported at 6.9%. In addition, the labor force participation rate was reported at 63.2%.

New Jobs Across Key Sectors

Although job creations across various sectors in the United States were broad-based, healthcare and business services stole the show. While healthcare added as many as 39,000 new jobs, business services added 34,000. In healthcare, new positions opened up in Ambulatory health care services (+29,000) and hospitals (+8,000).

The number of new government jobs rose too, with an impressive 22,000 new job additions last month. Among others, leisure and hospitality, technology and construction added a pretty decent number of new positions. Leisure and hospitality added 21,000 new positions, information gained 9,000 and construction had 7,000 new vacancies.

Our Picks

We have, therefore, selected four stocks from business services and healthcare sectors. All of these stocks carry a Zacks Rank #1 (Strong Buy) or 2 (Buy). You could consider investing in these.

Business Services

Booz Allen Hamilton Holding Corporation BAH is an information technology consulting company. The company carries a Zacks Rank #1. The company’s stock price has outperformed the Zacks Government Services industry on a year-to-date basis (+57.2% vs +36.5%). The Zacks Consensus Estimate for its current-year earnings has risen 0.7% over the past 60 days. You can see the complete list of today’s Zacks #1 Rank stocks here.

CoreLogic, Inc. CLGX provides financial, analytics and business intelligence services. CoreLogic carries a Zacks Rank #1. The company’s stock price has outperformed the Zacks Consulting Services industry on a year-to-date basis (+39.1% vs +24.2%). The Zacks Consensus Estimate for its current-year earnings has risen 1.1% over the past 60 days.

Healthcare

Medtronic plc MDT is a medical device company, developing and manufacturing device-based medical therapies. Medtronic carries a Zacks Rank #2. The company’s stock price has outperformed the Zacks Medical Products industry on a year-to-date basis (+17.3% vs +8.1%). The Zacks Consensus Estimate for its current-year earnings has risen 1.6% over the past 60 days.

Merck & Co., Inc. MRK is a pharmaceutical company, currently carrying a Zacks Rank #2. The company offers healthcare solutions worldwide. The stock price has outperformed the Zacks Large Cap Pharmaceuticals industry on a year-to-date basis (+10.1% vs -1.6%). The Zacks Consensus Estimate for its current-year earnings has risen 0.8% over the past 60 days.

5 Stocks Set to Double

Each was hand-picked by a Zacks expert as the #1 favorite stock to gain +100% or more in 2020. Each comes from a different sector and has unique qualities and catalysts that could fuel exceptional growth.

Most of the stocks in this report are flying under Wall Street radar, which provides a great opportunity to get in on the ground floor.

Today, See These 5 Potential Home Runs >>


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Merck & Co., Inc. (MRK) : Free Stock Analysis Report
 
CoreLogic, Inc. (CLGX) : Free Stock Analysis Report
 
Medtronic PLC (MDT) : Free Stock Analysis Report
 
Booz Allen Hamilton Holding Corporation (BAH) : Free Stock Analysis Report
 
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