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The Zacks Analyst Blog Highlights: Amazon, Microsoft, Alphabet, Apple and Facebook
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For Immediate Release
Chicago, IL – November 2, 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 Amazon (AMZN - Free Report) , Microsoft (MSFT - Free Report) , Alphabet (GOOGL - Free Report) , Apple (AAPL - Free Report) and Facebook .
Here are highlights from Wednesday’s Analyst Blog:
5 Red-Hot Tech Stocks Sending the S&P 500 Higher
Wall Street continued its stellar run in October with the S&P 500 logging in gains of 2.2%. This not only represents the best month since February but also the seventh straight month of advances — its longest streak since May 2013. As such, investors flocked to the two ultra-popular ETFs tracking the index last month.
SPDR S&P 500 ETF Trust andiShares Core S&P 500 ETF have pulled in about $7.1 billion and $3.5 billion, respectively, in capital. IVV looks more compelling at present given its solid Zacks ETF Rank #2 (Buy). SPY has a Zacks ETF Rank #3 (Hold) (read: October ETF Asset Report: U.S. Equities Prevail).
IVV in Focus
IVV holds 506 stocks in its basket, with each security holding no more than 3.9% of total assets. This suggests a nice balance across securities and prevents heavy concentration. However, the product is slightly tilted toward the information technology sector with 24.1% share, while financials, health care, consumer discretionary and industrials account for a double-digit exposure each. The ETF is the low-cost choice in the space, charging 4 bps in fees per year from investors and trades in solid volume of 3.3 million shares a day on average. It gained 1.7% in October.
Inside The Surge
Most of the gains came from the surge in technology sector, which had its best monthly gain of 7.7% since July 2016. A deluge of better-than-expected earnings results across various sectors as well as high hopes of the tax reform getting passed added to the strength.
In fact, five technology stocks — Amazon, Microsoft, Google-parent Alphabet, Apple and Facebook — accounted for more than half of the gains in the S&P 500 index. Three of the five companies reported blockbuster quarterly earnings, sending their shares higher while Facebook and Apple are slated to release their earnings after the market close on Nov 1 and Nov 2, respectively (read: Will Tech ETFs Hit New Highs Post Facebook, Apple Earnings?).
Further, the five tech giants added $181 billion to their combined market value on Oct 27.
Let’s dig into the fundamentals of these five hot technology stocks with their respective positions in the fund’s basket:
Amazon.com:This stock occupies the third position and makes up for 2% allocation in the fund’s basket. It delivered strong returns of 14.6% in October. Amazon came up with a wide earnings beat of 5100% and a positive outlook for the holiday quarter. It has seen solid earnings estimate revision of 53 cents for this year in the past week and its ranking jumping to Zack Rank #2. Further, Amazon belongs to a solid industry having a Zacks Rank in the top 41% (read: Amazon ETFs to Buy on Q3 Blowout Results).
Microsoft: This stock takes the second spot in the fund’s basket accounting for 2.9% of assets. It surged 12.5% in October and posted stellar results with earnings surprise of 16.67%. Microsoft saw solid earnings estimate revision of 16 cents for this year, last week, following its earnings announcement and was upgraded to Zacks Rank #2. It belongs a robust Zacks Industry Rank in the top 34% (read: Tech ETFs to Soar on Microsoft's Blockbuster Earnings Beat).
Alphabet: The stock gained 6.2% last month and takes the ninth position in the fund’s basket with 1.4% allocation. Alphabet came up with a 13.52% earnings surprise that resulted in increasing earnings estimates from the analysts. The stock saw a whopping earnings estimate revision of 82 cents for this year, last week. Alphabet has a Zacks Rank #2 and belongs to solid Zacks Industry Rank in the top 40% (read: ETFs in Focus Post Alphabet's Q3 Earnings).
Facebook: The stock has added 4.1% in October and sports a Zacks Rank #1 (Strong Buy). The company has seen positive earnings estimate revision of nine cents for this year, over the past three months, with an expected earnings growth rate of 26.5%. However, Facebook has an Earnings ESP of -0.63%, indicating lower chances of beating estimates this quarter. The stock has a solid Zacks Industry Rank in the top 40% and holds the third position in IVV with just 1.9% share. You can see the complete list of today’s Zacks #1 Rank stocks here.
Apple:The stock was up about 5.8% last month. It has a Zacks Rank #3 (Hold) and an Earnings ESP of -0.82%, indicating lower chances of beating estimates this quarter. The stock saw no estimate revision activity for this year, in the past three months, and belongs to a solid Zacks Industry Rank in the top 5%. Apple is the top firm in IVV, accounting for 3.9% of assets.
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Zacks’ free Fund Newsletter will brief you on top news and analysis, as well as top-performing ETFs, each week. Get it free >>
Zacks Equity Research provides the best of quantitative and qualitative analysis to help investors know what stocks to buy and which to sell for the long-term.
Continuous coverage is provided for a universe of 1,150 publicly traded stocks. Our analysts are organized by industry which gives them keen insights to developments that affect company profits and stock performance. Recommendations and target prices are six-month time horizons.
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: Amazon, Microsoft, Alphabet, Apple and Facebook
For Immediate Release
Chicago, IL – November 2, 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 Amazon (AMZN - Free Report) , Microsoft (MSFT - Free Report) , Alphabet (GOOGL - Free Report) , Apple (AAPL - Free Report) and Facebook .
Today, Zacks is promoting its ''Buy'' stock recommendations. Get #1Stock of the Day pick for free.
Here are highlights from Wednesday’s Analyst Blog:
5 Red-Hot Tech Stocks Sending the S&P 500 Higher
Wall Street continued its stellar run in October with the S&P 500 logging in gains of 2.2%. This not only represents the best month since February but also the seventh straight month of advances — its longest streak since May 2013. As such, investors flocked to the two ultra-popular ETFs tracking the index last month.
SPDR S&P 500 ETF Trust andiShares Core S&P 500 ETF have pulled in about $7.1 billion and $3.5 billion, respectively, in capital. IVV looks more compelling at present given its solid Zacks ETF Rank #2 (Buy). SPY has a Zacks ETF Rank #3 (Hold) (read: October ETF Asset Report: U.S. Equities Prevail).
IVV in Focus
IVV holds 506 stocks in its basket, with each security holding no more than 3.9% of total assets. This suggests a nice balance across securities and prevents heavy concentration. However, the product is slightly tilted toward the information technology sector with 24.1% share, while financials, health care, consumer discretionary and industrials account for a double-digit exposure each. The ETF is the low-cost choice in the space, charging 4 bps in fees per year from investors and trades in solid volume of 3.3 million shares a day on average. It gained 1.7% in October.
Inside The Surge
Most of the gains came from the surge in technology sector, which had its best monthly gain of 7.7% since July 2016. A deluge of better-than-expected earnings results across various sectors as well as high hopes of the tax reform getting passed added to the strength.
In fact, five technology stocks — Amazon, Microsoft, Google-parent Alphabet, Apple and Facebook — accounted for more than half of the gains in the S&P 500 index. Three of the five companies reported blockbuster quarterly earnings, sending their shares higher while Facebook and Apple are slated to release their earnings after the market close on Nov 1 and Nov 2, respectively (read: Will Tech ETFs Hit New Highs Post Facebook, Apple Earnings?).
Further, the five tech giants added $181 billion to their combined market value on Oct 27.
Let’s dig into the fundamentals of these five hot technology stocks with their respective positions in the fund’s basket:
Amazon.com:This stock occupies the third position and makes up for 2% allocation in the fund’s basket. It delivered strong returns of 14.6% in October. Amazon came up with a wide earnings beat of 5100% and a positive outlook for the holiday quarter. It has seen solid earnings estimate revision of 53 cents for this year in the past week and its ranking jumping to Zack Rank #2. Further, Amazon belongs to a solid industry having a Zacks Rank in the top 41% (read: Amazon ETFs to Buy on Q3 Blowout Results).
Microsoft: This stock takes the second spot in the fund’s basket accounting for 2.9% of assets. It surged 12.5% in October and posted stellar results with earnings surprise of 16.67%. Microsoft saw solid earnings estimate revision of 16 cents for this year, last week, following its earnings announcement and was upgraded to Zacks Rank #2. It belongs a robust Zacks Industry Rank in the top 34% (read: Tech ETFs to Soar on Microsoft's Blockbuster Earnings Beat).
Alphabet: The stock gained 6.2% last month and takes the ninth position in the fund’s basket with 1.4% allocation. Alphabet came up with a 13.52% earnings surprise that resulted in increasing earnings estimates from the analysts. The stock saw a whopping earnings estimate revision of 82 cents for this year, last week. Alphabet has a Zacks Rank #2 and belongs to solid Zacks Industry Rank in the top 40% (read: ETFs in Focus Post Alphabet's Q3 Earnings).
Facebook: The stock has added 4.1% in October and sports a Zacks Rank #1 (Strong Buy). The company has seen positive earnings estimate revision of nine cents for this year, over the past three months, with an expected earnings growth rate of 26.5%. However, Facebook has an Earnings ESP of -0.63%, indicating lower chances of beating estimates this quarter. The stock has a solid Zacks Industry Rank in the top 40% and holds the third position in IVV with just 1.9% share. You can see the complete list of today’s Zacks #1 Rank stocks here.
Apple:The stock was up about 5.8% last month. It has a Zacks Rank #3 (Hold) and an Earnings ESP of -0.82%, indicating lower chances of beating estimates this quarter. The stock saw no estimate revision activity for this year, in the past three months, and belongs to a solid Zacks Industry Rank in the top 5%. Apple is the top firm in IVV, accounting for 3.9% of assets.
Want key ETF info delivered straight to your inbox?
Zacks’ free Fund Newsletter will brief you on top news and analysis, as well as top-performing ETFs, each week. Get it free >>
Today, Zacks is promoting its ''Buy'' stock recommendations. Get #1 Stock of the Day pick for free.
About Zacks Equity Research
Zacks Equity Research provides the best of quantitative and qualitative analysis to help investors know what stocks to buy and which to sell for the long-term.
Continuous coverage is provided for a universe of 1,150 publicly traded stocks. Our analysts are organized by industry which gives them keen insights to developments that affect company profits and stock performance. Recommendations and target prices are six-month time horizons.
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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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.