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The Zacks Analyst Blog Highlights Splunk, Workday, NVIDIA, G-III Apparel Group and Casey's General Stores
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For Immediate Release
Chicago, IL – December 28, 2023 – 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: Splunk Inc. , Workday Inc. (WDAY - Free Report) , NVIDIA Corp. (NVDA - Free Report) , G-III Apparel Group (GIII - Free Report) and Casey's General Stores (CASY - Free Report) .
Here are highlights from Wednesday’s Analyst Blog:
5 Momentum Stocks to Bet On for Next Year
The U.S. stock markets witnessed intense volatility amid global macroeconomic challenges, interest rate hikes and inflation. Central banks all over the world have increased their interest rates this year to tackle inflation.
Owing to the Santa Claus bounce, the equity markets appear to be doing well lately; last week saw the longest weekly advance since 2017 and the eighth consecutive week of gains. The uptrend was largely buoyed by the Federal Reserve's decision to hold interest rates steady in the range of 5.25%-5.5% while pledging to cut the same several times next year. The major benchmark indices rose and approached all-time highs as a result of the highly anticipated recognition of a slowing inflation trend.
The tech-heavy Nasdaq 100 and S&P 500 have increased 51.2% and 27.1%, respectively, in the year-to-date period. The Dow Jones Industrial Average Index recently crossed the 37,000 mark on Dec 13, 2023.
It is difficult to invest in equity securities in such a turbulent market. However, investors may want to try momentum investing. Momentum buyers typically purchase a stock at a high price with the expectation that it will only rise in the near future. Momentum investing requires the necessary skills to avoid overcrowding and address volatility.
How to Identify Momentum Stocks?
Here, the Zacks Style Score can prove beneficial. The Momentum Score indicates when the timing is favorable to enter a stock to gain from the momentum with the highest probability of success.
Therefore, stocks with a good Momentum score and a favorable Zacks Rank are likely to fetch solid returns.
We have shortlisted five such momentum stocks with solid upside potential based on their market capital (> $1 billion), favorable Zacks Rank #1 (Strong Buy) or 2 (Buy) and a Momentum Score of A or B. You can see the complete list of today's Zacks #1 Rank stocks here.
In addition to the above-mentioned parameters, the shortlisted companies also have witnessed positive earnings estimate revisions in the past year. This signifies that the market participants expect healthy growth opportunities for these companies in 2024.
Top Picks
Using the above parameters, we have zeroed in on five stocks — Splunk Inc., Workday Inc., NVIDIA Corp., G-III Apparel Group, Casey's General Stores.
Splunk – San Francisco, CA-based SPLK provides software solutions that enable enterprises to gain real-time operational intelligence by harnessing the value of their data. The company is benefiting from high demand for its cloud solutions. The company's business transition from perpetual licenses to subscription or renewable model is expected to benefit it in the long run. Apart from this, an aggressive acquisition strategy has played a pivotal part in developing its business over the last couple of years.
SPLK currently sports a Zacks Rank #1 and a Momentum Score of A with a market cap of $25.66 billion. The Zacks Consensus Estimate for current-year earnings has improved 73.3% over the past year to $4.28. The stock has appreciated 76.9% year to date. It has long-term earnings growth expectations of 29.6% and delivered an earnings surprise of 99.3%, on average, in the trailing four quarters.
It has an average brokerage recommendation (ABR) of 2.86 on a scale of 1 to 5 (Strong Buy to Strong Sell). ABR is the calculated average of actual recommendations made by brokerage firms and portends the future potential of the stock.
Workday – Headquartered in Pleasanton, CA, WDAY has been benefiting from its cloud-based business model and expanding product portfolio. The company's initiatives to infuse generative AI and conversational AI features in Workday solutions also yielded positive results. Going ahead, the company is likely to benefit from the rising adoption of Workday Prism Analytics and Adaptive Insights business planning cloud offerings. The company's cloud-based platform combines finance and HR in a single system that makes it easier for organizations to provide analytical insights and decision support.
WDAY presently carries a Zacks Rank #2 and a Momentum Score of A with a market cap of $72.05 billion. The Zacks Consensus Estimate for current-year earnings has improved 22.5% over the past year to $5.71. The stock has appreciated 63.7% year to date. It has long-term earnings growth expectations of 26.5% and delivered an earnings surprise of 13.2%, on average, in the trailing four quarters.
It has an ABR of 1.71 on a scale of 1 to 5 (Strong Buy to Strong Sell). ABR is the calculated average of actual recommendations made by brokerage firms and portends the future potential of the stock.
NVIDIA Corporation– Santa Clara, CA-based, NVDA is a market leader in visual computing technologies and the inventor of the graphic processing unit, or GPU. The company is likely to benefit from the growing demand for generative AI and large language models using GPUs based on NVIDIA Hopper and Ampere architectures. NVDA's A100 and H100 AI chips are used to build and run AI applications, including OpenAI's ChatGPT.
NVDA presently carries a Zacks Rank #2 and a Momentum Score of B with a market cap of $1.21 trillion. The Zacks Consensus Estimate for current-year earnings has improved 181% over the past year to $12.29. The stock price has appreciated 237.2% year to date. It has long-term earnings growth expectations of 13.5% and delivered an earnings surprise of 19%, on average, in the trailing four quarters.
It has an ABR of 1.12 on a scale of 1 to 5 (Strong Buy to Strong Sell). ABR is the calculated average of actual recommendations made by brokerage firms and portends the future potential of the stock.
G-III Apparel Group – Based in New York, GIII is a manufacturer, designer and distributor of apparel and accessories under licensed brands, owned brands and private label brands. The company undertakes several strategies, including acquisitions and licensing of well-known brands, to expand its product portfolio and make itself a diversified apparel and accessories company. The company has been accelerating digital growth and strives to become the best omnichannel organization.
GIII currently sports a Zacks Rank #1 and a Momentum Score of B with a market cap of $1.55 billion. The Zacks Consensus Estimate for current-year earnings has improved 17.4% over the past year to $3.97. The stock price has appreciated 147.7% year to date.
It has an ABR of 2.66 on a scale of 1 to 5 (Strong Buy to Strong Sell). ABR is the calculated average of actual recommendations made by brokerage firms and portends the future potential of the stock.
Casey's General Stores: Based in Ankeny, IA, Casey's operates convenience stores in 16 states across the country. The company is benefiting from strength in the prepared food and dispensed beverage category, including bakery, whole pizza pies and dispensed beverages. Also, increasing demand for non-alcoholic and alcoholic beverages in the grocery and general merchandise categories are major tailwinds.
Casey's presently sports a Zacks Rank #1 and a Momentum Score of A with a market cap of $10.12 billion. The Zacks Consensus Estimate for current-year earnings has improved 30.1% over the past year to $12.51. The stock price has appreciated 21.6% year to date. It has long-term earnings growth expectations of 10.6% and delivered an earnings surprise of 17.8%, on average, in the trailing four quarters.
It has an ABR of 1.6 on a scale of 1 to 5 (Strong Buy to Strong Sell). ABR is the calculated average of actual recommendations made by brokerage firms and portends the future potential of the stock.
Why Haven't You Looked at Zacks' Top Stocks?
Since 2000, our top stock-picking strategies have blown away the S&P's +6.2 average gain per year. Amazingly, they soared with average gains of +46.4%, +49.5% and +55.2% per year. Today you can access their live picks without cost or obligation.
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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The Zacks Analyst Blog Highlights Splunk, Workday, NVIDIA, G-III Apparel Group and Casey's General Stores
For Immediate Release
Chicago, IL – December 28, 2023 – 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: Splunk Inc. , Workday Inc. (WDAY - Free Report) , NVIDIA Corp. (NVDA - Free Report) , G-III Apparel Group (GIII - Free Report) and Casey's General Stores (CASY - Free Report) .
Here are highlights from Wednesday’s Analyst Blog:
5 Momentum Stocks to Bet On for Next Year
The U.S. stock markets witnessed intense volatility amid global macroeconomic challenges, interest rate hikes and inflation. Central banks all over the world have increased their interest rates this year to tackle inflation.
Owing to the Santa Claus bounce, the equity markets appear to be doing well lately; last week saw the longest weekly advance since 2017 and the eighth consecutive week of gains. The uptrend was largely buoyed by the Federal Reserve's decision to hold interest rates steady in the range of 5.25%-5.5% while pledging to cut the same several times next year. The major benchmark indices rose and approached all-time highs as a result of the highly anticipated recognition of a slowing inflation trend.
The tech-heavy Nasdaq 100 and S&P 500 have increased 51.2% and 27.1%, respectively, in the year-to-date period. The Dow Jones Industrial Average Index recently crossed the 37,000 mark on Dec 13, 2023.
It is difficult to invest in equity securities in such a turbulent market. However, investors may want to try momentum investing. Momentum buyers typically purchase a stock at a high price with the expectation that it will only rise in the near future. Momentum investing requires the necessary skills to avoid overcrowding and address volatility.
How to Identify Momentum Stocks?
Here, the Zacks Style Score can prove beneficial. The Momentum Score indicates when the timing is favorable to enter a stock to gain from the momentum with the highest probability of success.
Therefore, stocks with a good Momentum score and a favorable Zacks Rank are likely to fetch solid returns.
We have shortlisted five such momentum stocks with solid upside potential based on their market capital (> $1 billion), favorable Zacks Rank #1 (Strong Buy) or 2 (Buy) and a Momentum Score of A or B. You can see the complete list of today's Zacks #1 Rank stocks here.
In addition to the above-mentioned parameters, the shortlisted companies also have witnessed positive earnings estimate revisions in the past year. This signifies that the market participants expect healthy growth opportunities for these companies in 2024.
Top Picks
Using the above parameters, we have zeroed in on five stocks — Splunk Inc., Workday Inc., NVIDIA Corp., G-III Apparel Group, Casey's General Stores.
Splunk – San Francisco, CA-based SPLK provides software solutions that enable enterprises to gain real-time operational intelligence by harnessing the value of their data. The company is benefiting from high demand for its cloud solutions. The company's business transition from perpetual licenses to subscription or renewable model is expected to benefit it in the long run. Apart from this, an aggressive acquisition strategy has played a pivotal part in developing its business over the last couple of years.
SPLK currently sports a Zacks Rank #1 and a Momentum Score of A with a market cap of $25.66 billion. The Zacks Consensus Estimate for current-year earnings has improved 73.3% over the past year to $4.28. The stock has appreciated 76.9% year to date. It has long-term earnings growth expectations of 29.6% and delivered an earnings surprise of 99.3%, on average, in the trailing four quarters.
It has an average brokerage recommendation (ABR) of 2.86 on a scale of 1 to 5 (Strong Buy to Strong Sell). ABR is the calculated average of actual recommendations made by brokerage firms and portends the future potential of the stock.
Workday – Headquartered in Pleasanton, CA, WDAY has been benefiting from its cloud-based business model and expanding product portfolio. The company's initiatives to infuse generative AI and conversational AI features in Workday solutions also yielded positive results. Going ahead, the company is likely to benefit from the rising adoption of Workday Prism Analytics and Adaptive Insights business planning cloud offerings. The company's cloud-based platform combines finance and HR in a single system that makes it easier for organizations to provide analytical insights and decision support.
WDAY presently carries a Zacks Rank #2 and a Momentum Score of A with a market cap of $72.05 billion. The Zacks Consensus Estimate for current-year earnings has improved 22.5% over the past year to $5.71. The stock has appreciated 63.7% year to date. It has long-term earnings growth expectations of 26.5% and delivered an earnings surprise of 13.2%, on average, in the trailing four quarters.
It has an ABR of 1.71 on a scale of 1 to 5 (Strong Buy to Strong Sell). ABR is the calculated average of actual recommendations made by brokerage firms and portends the future potential of the stock.
NVIDIA Corporation– Santa Clara, CA-based, NVDA is a market leader in visual computing technologies and the inventor of the graphic processing unit, or GPU. The company is likely to benefit from the growing demand for generative AI and large language models using GPUs based on NVIDIA Hopper and Ampere architectures. NVDA's A100 and H100 AI chips are used to build and run AI applications, including OpenAI's ChatGPT.
NVDA presently carries a Zacks Rank #2 and a Momentum Score of B with a market cap of $1.21 trillion. The Zacks Consensus Estimate for current-year earnings has improved 181% over the past year to $12.29. The stock price has appreciated 237.2% year to date. It has long-term earnings growth expectations of 13.5% and delivered an earnings surprise of 19%, on average, in the trailing four quarters.
It has an ABR of 1.12 on a scale of 1 to 5 (Strong Buy to Strong Sell). ABR is the calculated average of actual recommendations made by brokerage firms and portends the future potential of the stock.
G-III Apparel Group – Based in New York, GIII is a manufacturer, designer and distributor of apparel and accessories under licensed brands, owned brands and private label brands. The company undertakes several strategies, including acquisitions and licensing of well-known brands, to expand its product portfolio and make itself a diversified apparel and accessories company. The company has been accelerating digital growth and strives to become the best omnichannel organization.
GIII currently sports a Zacks Rank #1 and a Momentum Score of B with a market cap of $1.55 billion. The Zacks Consensus Estimate for current-year earnings has improved 17.4% over the past year to $3.97. The stock price has appreciated 147.7% year to date.
It has an ABR of 2.66 on a scale of 1 to 5 (Strong Buy to Strong Sell). ABR is the calculated average of actual recommendations made by brokerage firms and portends the future potential of the stock.
Casey's General Stores: Based in Ankeny, IA, Casey's operates convenience stores in 16 states across the country. The company is benefiting from strength in the prepared food and dispensed beverage category, including bakery, whole pizza pies and dispensed beverages. Also, increasing demand for non-alcoholic and alcoholic beverages in the grocery and general merchandise categories are major tailwinds.
Casey's presently sports a Zacks Rank #1 and a Momentum Score of A with a market cap of $10.12 billion. The Zacks Consensus Estimate for current-year earnings has improved 30.1% over the past year to $12.51. The stock price has appreciated 21.6% year to date. It has long-term earnings growth expectations of 10.6% and delivered an earnings surprise of 17.8%, on average, in the trailing four quarters.
It has an ABR of 1.6 on a scale of 1 to 5 (Strong Buy to Strong Sell). ABR is the calculated average of actual recommendations made by brokerage firms and portends the future potential of the stock.
Why Haven't You Looked at Zacks' Top Stocks?
Since 2000, our top stock-picking strategies have blown away the S&P's +6.2 average gain per year. Amazingly, they soared with average gains of +46.4%, +49.5% and +55.2% per year. Today you can access their live picks without cost or obligation.
See Stocks Free >>
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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.