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The Zacks Analyst Blog Highlights: NVIDIA, Daimler and China Telecom
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For Immediate Release
Chicago, IL – September 26, 2017 – 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 NVIDIA (Nasdaq:(NVDA - Free Report) – Free Report), Daimler (OTCMKTS: – Free Report) and China Telecom (NYSE:(CHA - Free Report) – Free Report).
For the Global Week Ahead, here are five big themes. Reuters says these are likely to dominate the thinking of investors and traders.
(1) Third Quarter of 2017 Ends
It’s the end of the third quarter (Q3). What a remarkable quarter it has been!
Wall Street and world stocks have climbed to record high after record high, chalking up the longest streak of quarterly gains in two decades. At the same time, volatility has remained anchored at the lowest levels in decades. By some measures, the last few days have been the calmest in U.S. stock market history.
Bond markets have also been well behaved, considering many of the world’s major central banks are preparing to shrink their balance sheets. There’s been a little more volatility in FX, with the euro breaking above $1.20 and sterling recovering sharply this month.
What does that mean for the week ahead? Potentially some profit-taking and position squaring as investors lock in what they got during the quarter. If that’s the case, some weakness in stocks, bonds and the euro.
(2) U.K. Pound Moving Higher
Sterling has, with a week to go in Q3, has put in its best quarterly performance against the U.S. dollar since Q2 2015.
The week ending Sept. 9th, when the Bank of England began talking about raising interest rates in what would be its first hike in a decade, was the best for the U.K. pound in eight years.
Late last week, a major speech came on Brexit from U.K. Prime Minister Theresa May. It did not break much new ground for markets. The U.K. pound was slightly lower on the day, raising questions over where the impetus for another move higher in sterling will come from.
(3) Bailouts of Russian Banks
B&N Bank, Russia’s 12th biggest lender, became the latest domino to tumble in the country’s banking sector. Markets will be on alert for hints of more trouble.
B&N’s bailout request came three weeks after the rescue of Otkritie Bank. While earlier, licenses were revoked at Yugra bank and Tatfondbank.
Investors reckon more banks will fail, stemming from Western sanctions and unbridled expansion before that. That means Russian financials’ shares, down -12% this year, may see little respite. Broader Russian shares have lost -8%. Bonds of afflicted banks have fallen heavily.
The central bank will sell bonds and hold deposit auctions to finance the rescue. But if the sums are massive, it could fuel inflation — a setback in Russia’s battle against price growth. That would be bad news for the rouble and Russia’s local bonds, which have so far easily withstood the bank malaise.
(4) Asian Policy Rates Stay Attractive
Low inflation is a global pandemic. That also keeps real interest rates in Asia attractive.
It used to be that when the Federal Reserve raised rates, Asia’s emerging economies would follow. With the U.S. central bank announcing the final stage of its exit from unconventional policies, policymakers are watching for any evidence of risk aversion.
For the moment, though, there are no signs of outflows from the region and there is little pressure to compete for funds with higher rates. In fact, India and Indonesia cut rates in August and could even have room to cut again – perhaps even joined by Thailand. The Thai central bank holds a policy meeting on Sept. 27th.
(5) Equifax and Bitcoin
Equifax and bitcoin have been much on investors’ minds this month.
Fallout from Equifax’s massive data breach, which compromised the social security numbers and other personal information of as many as 143 million Americans, wiped out more than one-third of the company’s market value, sending its shares to a more than 2-1/2-year low.
Meanwhile, the price of a bitcoin declined to about $3,000 from a September peak of about $5,100, as Chinese authorities said they would ban trading of the cryptocurrency in their country.
Bitcoin has bounced back above $4,000. But Equifax shares, which fell as low as $89.59 from $142.72 before the scandal broke, have rebounded only to about $96.
If Equifax shares were priced in bitcoin, they would be worth just 2 cents each. So, as investors enter the final quarter of the year, will Equifax or bitcoin be at the top of manager’s buy-and-hold list?
Top Zack #1 Rank (STRONG BUY) Stocks
(1) NVIDIA(Nasdaq:(NVDA - Free Report) – Free Report): This is the darling of Artificial Intelligence semiconductor chips. Incredibly, it is a $107 billion market-cap stock. The long-term Zacks VGM score is a poor D. Momentum chasers are raising this stock to new heights.
(2) Daimler(OTCMKTS: – Free Report): This is the major German auto and truck maker. With the German election in the rear view mirror, keep an eye on this stock. The stock has an $87 billion market cap (smaller than NVIDIA!). The long-term Zacks VGM score is B, showing much more attractiveness.
(3) China Telecom(NYSE:(CHA - Free Report) – Free Report): This is the major wireline telco in Mainland China. The long-term Zacks VGM score is A. The market cap is $40 billion here, much smaller than both Daimler and NVIDIA. Maybe it’s time to buy Mainland China stocks?
Strong Stocks that Should Be in the News
Many are little publicized and fly under the Wall Street radar. They're virtually unknown to the general public. Yet today's 220 Zacks Rank #1 "Strong Buys" were generated by the stock-picking system that has nearly tripled the market from 1988 through 2015. Its average gain has been a stellar +26% per year.See these high-potential stocks free >>.
Zacks Investment Research is under common control with affiliated entities (including a broker-dealer and an investment adviser), which may engage in transactions involving the foregoing securities for the clients of such affiliates.
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: NVIDIA, Daimler and China Telecom
For Immediate Release
Chicago, IL – September 26, 2017 – 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 NVIDIA (Nasdaq:(NVDA - Free Report) – Free Report), Daimler (OTCMKTS: – Free Report) and China Telecom (NYSE:(CHA - Free Report) – Free Report).
Today, Zacks is promoting its ''Buy'' stock recommendations. Get #1Stock of the Day pick for free.
Here are highlights from Monday’s Analyst Blog:
The Third Quarter Ends: Global Week Ahead
For the Global Week Ahead, here are five big themes. Reuters says these are likely to dominate the thinking of investors and traders.
(1) Third Quarter of 2017 Ends
It’s the end of the third quarter (Q3). What a remarkable quarter it has been!
Wall Street and world stocks have climbed to record high after record high, chalking up the longest streak of quarterly gains in two decades. At the same time, volatility has remained anchored at the lowest levels in decades. By some measures, the last few days have been the calmest in U.S. stock market history.
Bond markets have also been well behaved, considering many of the world’s major central banks are preparing to shrink their balance sheets. There’s been a little more volatility in FX, with the euro breaking above $1.20 and sterling recovering sharply this month.
What does that mean for the week ahead? Potentially some profit-taking and position squaring as investors lock in what they got during the quarter. If that’s the case, some weakness in stocks, bonds and the euro.
(2) U.K. Pound Moving Higher
Sterling has, with a week to go in Q3, has put in its best quarterly performance against the U.S. dollar since Q2 2015.
The week ending Sept. 9th, when the Bank of England began talking about raising interest rates in what would be its first hike in a decade, was the best for the U.K. pound in eight years.
Late last week, a major speech came on Brexit from U.K. Prime Minister Theresa May. It did not break much new ground for markets. The U.K. pound was slightly lower on the day, raising questions over where the impetus for another move higher in sterling will come from.
(3) Bailouts of Russian Banks
B&N Bank, Russia’s 12th biggest lender, became the latest domino to tumble in the country’s banking sector. Markets will be on alert for hints of more trouble.
B&N’s bailout request came three weeks after the rescue of Otkritie Bank. While earlier, licenses were revoked at Yugra bank and Tatfondbank.
Investors reckon more banks will fail, stemming from Western sanctions and unbridled expansion before that. That means Russian financials’ shares, down -12% this year, may see little respite. Broader Russian shares have lost -8%. Bonds of afflicted banks have fallen heavily.
The central bank will sell bonds and hold deposit auctions to finance the rescue. But if the sums are massive, it could fuel inflation — a setback in Russia’s battle against price growth. That would be bad news for the rouble and Russia’s local bonds, which have so far easily withstood the bank malaise.
(4) Asian Policy Rates Stay Attractive
Low inflation is a global pandemic. That also keeps real interest rates in Asia attractive.
It used to be that when the Federal Reserve raised rates, Asia’s emerging economies would follow. With the U.S. central bank announcing the final stage of its exit from unconventional policies, policymakers are watching for any evidence of risk aversion.
For the moment, though, there are no signs of outflows from the region and there is little pressure to compete for funds with higher rates. In fact, India and Indonesia cut rates in August and could even have room to cut again – perhaps even joined by Thailand. The Thai central bank holds a policy meeting on Sept. 27th.
(5) Equifax and Bitcoin
Equifax and bitcoin have been much on investors’ minds this month.
Fallout from Equifax’s massive data breach, which compromised the social security numbers and other personal information of as many as 143 million Americans, wiped out more than one-third of the company’s market value, sending its shares to a more than 2-1/2-year low.
Meanwhile, the price of a bitcoin declined to about $3,000 from a September peak of about $5,100, as Chinese authorities said they would ban trading of the cryptocurrency in their country.
Bitcoin has bounced back above $4,000. But Equifax shares, which fell as low as $89.59 from $142.72 before the scandal broke, have rebounded only to about $96.
If Equifax shares were priced in bitcoin, they would be worth just 2 cents each. So, as investors enter the final quarter of the year, will Equifax or bitcoin be at the top of manager’s buy-and-hold list?
Top Zack #1 Rank (STRONG BUY) Stocks
(1) NVIDIA(Nasdaq:(NVDA - Free Report) – Free Report): This is the darling of Artificial Intelligence semiconductor chips. Incredibly, it is a $107 billion market-cap stock. The long-term Zacks VGM score is a poor D. Momentum chasers are raising this stock to new heights.
(2) Daimler(OTCMKTS: – Free Report): This is the major German auto and truck maker. With the German election in the rear view mirror, keep an eye on this stock. The stock has an $87 billion market cap (smaller than NVIDIA!). The long-term Zacks VGM score is B, showing much more attractiveness.
(3) China Telecom(NYSE:(CHA - Free Report) – Free Report): This is the major wireline telco in Mainland China. The long-term Zacks VGM score is A. The market cap is $40 billion here, much smaller than both Daimler and NVIDIA. Maybe it’s time to buy Mainland China stocks?
Strong Stocks that Should Be in the News
Many are little publicized and fly under the Wall Street radar. They're virtually unknown to the general public. Yet today's 220 Zacks Rank #1 "Strong Buys" were generated by the stock-picking system that has nearly tripled the market from 1988 through 2015. Its average gain has been a stellar +26% per year.See these high-potential stocks free >>.
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Get the full Report on CHA - 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.