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4 Top Crypto-Centric Stocks to Make the Most of Market Rally
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The cryptocurrency market presently on a surge. There are both technical and fundamental reasons for this rally. Technically, the equity market has been witnessing a strong rally after three successive months of negative closings. This is primarily driven by a strong anticipation among market participants that the Fed is already through with its interest rate hike regime for the current cycle.
The consumer price index (CPI) for October increased 3.2%, lower than the consensus estimate of 3.3%. Year over year, core CPI increased 4%, lower than the consensus estimate of 4.1%, marking the lowest year-over-year increase for the metric since September 2021.
The producers price index (PPI) fell 0.5% in October after rising 0.4% in September, marking its biggest monthly decline since April 2020. Retail sales dropped 0.1% in October after rising 0.9% in September.
The resilient labor market has shown signs of cooling down with the addition of just 150,000 manpower in October. All these recently released economic data have shown a gradually cooling economy, which will compel the Fed to end the ongoing rate hike era. A higher interest rate regime is detrimental to growth sectors like technology and cryptocurrency.
Fundamentally, the news that the Securities and Exchange Commission (SEC) is set to approve a Bitcoin exchange-traded fund (ETF) once again raised investors’ optimism. The expected approval of a Bitcoin ETF by the SEC is likely to boost demand by providing traditional investors with a pathway to access Bitcoin and other cryptocurrencies through regular stock markets.
This development is expected to attract new investments into the crypto industry, potentially leading to increased overall demand. Consequently, prices of major cryptocurrencies like Bitcoin (BTC), Ethereum (ETH), Cardano (ADA), Dogecoin (DOGE) and BNB (BNB) climbed 5.7%, 4.6%, 6.2%, 5.3% and 3.6%, respectively, on Nov 15.
Stocks to Buy
NVIDIA Corp. (NVDA - Free Report) is a semiconductor industry giant and one of the biggest success stories of 2023. As a leading designer of graphic processing units (GPUs), the NVDA stock usually soars on a booming crypto market. This is because GPUs are pivotal to data centers, artificial intelligence, and the creation of crypto assets.
NVIDIA’s expected earnings growth rate for the current year is more than 100% (ending January 2024). The Zacks Consensus Estimate for its current-year earnings has improved 0.7% over the last seven days. NVDA currently sports a Zacks Rank #1 (Strong Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.
Coinbase Global Inc. (COIN - Free Report) provides financial infrastructure and technology for the crypto economy in the United States and internationally. COIN offers the primary financial account in the crypto space for consumers, a marketplace with a pool of liquidity for transacting in crypto assets for institutions; and technology and services that enable developers to build crypto-based applications and securely accept crypto assets as payment.
Coinbase Global has an expected earnings growth rate of 91.7% for the current year. The Zacks Consensus Estimate for current-year earnings has improved 44% over the last 30 days. COIN currently carries a Zacks Rank #2 (Buy).
Block Inc. (SQ - Free Report) is an online digital and mobile payment platform for consumers and merchants and is the parent company of Square and Cash App. The users of Cash App can buy, sell, send and receive Bitcoin. In addition, SQ’s decentralized tbd platform allows developers to build decentralized finance applications to run on programmable blockchains. SQ is also one of the largest Bitcoin investors.
Block has an expected earnings growth rate of 88% for the current year. The Zacks Consensus Estimate for current-year earnings has improved 15.3% over the last 30 days. SQ currently carries a Zacks Rank #2.
Interactive Brokers Group Inc. (IBKR - Free Report) is a global automated electronic broker. IBKR executes, processes and trades in cryptocurrencies. IBKR’s commodities futures trading desk also offers customers a chance to trade cryptocurrency futures.
Interactive Brokers Group has an expected earnings growth rate of 41.7% for the current year. The Zacks Consensus Estimate for current-year earnings has improved 1.1% over the last 30 days. IBKR currently carries a Zacks Rank #2.
The chart below shows the price performance of our four picks in the past month.
Image Source: Zacks Investment Research
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4 Top Crypto-Centric Stocks to Make the Most of Market Rally
The cryptocurrency market presently on a surge. There are both technical and fundamental reasons for this rally. Technically, the equity market has been witnessing a strong rally after three successive months of negative closings. This is primarily driven by a strong anticipation among market participants that the Fed is already through with its interest rate hike regime for the current cycle.
The consumer price index (CPI) for October increased 3.2%, lower than the consensus estimate of 3.3%. Year over year, core CPI increased 4%, lower than the consensus estimate of 4.1%, marking the lowest year-over-year increase for the metric since September 2021.
The producers price index (PPI) fell 0.5% in October after rising 0.4% in September, marking its biggest monthly decline since April 2020. Retail sales dropped 0.1% in October after rising 0.9% in September.
The resilient labor market has shown signs of cooling down with the addition of just 150,000 manpower in October. All these recently released economic data have shown a gradually cooling economy, which will compel the Fed to end the ongoing rate hike era. A higher interest rate regime is detrimental to growth sectors like technology and cryptocurrency.
Fundamentally, the news that the Securities and Exchange Commission (SEC) is set to approve a Bitcoin exchange-traded fund (ETF) once again raised investors’ optimism. The expected approval of a Bitcoin ETF by the SEC is likely to boost demand by providing traditional investors with a pathway to access Bitcoin and other cryptocurrencies through regular stock markets.
This development is expected to attract new investments into the crypto industry, potentially leading to increased overall demand. Consequently, prices of major cryptocurrencies like Bitcoin (BTC), Ethereum (ETH), Cardano (ADA), Dogecoin (DOGE) and BNB (BNB) climbed 5.7%, 4.6%, 6.2%, 5.3% and 3.6%, respectively, on Nov 15.
Stocks to Buy
NVIDIA Corp. (NVDA - Free Report) is a semiconductor industry giant and one of the biggest success stories of 2023. As a leading designer of graphic processing units (GPUs), the NVDA stock usually soars on a booming crypto market. This is because GPUs are pivotal to data centers, artificial intelligence, and the creation of crypto assets.
NVIDIA’s expected earnings growth rate for the current year is more than 100% (ending January 2024). The Zacks Consensus Estimate for its current-year earnings has improved 0.7% over the last seven days. NVDA currently sports a Zacks Rank #1 (Strong Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.
Coinbase Global Inc. (COIN - Free Report) provides financial infrastructure and technology for the crypto economy in the United States and internationally. COIN offers the primary financial account in the crypto space for consumers, a marketplace with a pool of liquidity for transacting in crypto assets for institutions; and technology and services that enable developers to build crypto-based applications and securely accept crypto assets as payment.
Coinbase Global has an expected earnings growth rate of 91.7% for the current year. The Zacks Consensus Estimate for current-year earnings has improved 44% over the last 30 days. COIN currently carries a Zacks Rank #2 (Buy).
Block Inc. (SQ - Free Report) is an online digital and mobile payment platform for consumers and merchants and is the parent company of Square and Cash App. The users of Cash App can buy, sell, send and receive Bitcoin. In addition, SQ’s decentralized tbd platform allows developers to build decentralized finance applications to run on programmable blockchains. SQ is also one of the largest Bitcoin investors.
Block has an expected earnings growth rate of 88% for the current year. The Zacks Consensus Estimate for current-year earnings has improved 15.3% over the last 30 days. SQ currently carries a Zacks Rank #2.
Interactive Brokers Group Inc. (IBKR - Free Report) is a global automated electronic broker. IBKR executes, processes and trades in cryptocurrencies. IBKR’s commodities futures trading desk also offers customers a chance to trade cryptocurrency futures.
Interactive Brokers Group has an expected earnings growth rate of 41.7% for the current year. The Zacks Consensus Estimate for current-year earnings has improved 1.1% over the last 30 days. IBKR currently carries a Zacks Rank #2.
The chart below shows the price performance of our four picks in the past month.
Image Source: Zacks Investment Research