On today’s episode of Full Court Finance at Zacks, Ben Rains takes a look at where the broader market stands heading into September, as both the S&P 500 and the Nasdaq continue to set records. We then explore three different stocks that boast strong Zacks Ranks that investors might want to buy as we start to close out the summer.
The S&P 500 is on track to post its best month since April, as both the proxy index for the broader market and the tech-heavy Nasdaq reach new highs. The technology sector’s march continues as Wall Street jumps into stocks that can grow amid the unprecedented economic environment. And signs of economic recovery continue to pop up, from solid PMI data to the improving third quarter earnings outlook.
It’s also worth remembering that the market is not blind to the current economic concerns. This is why Zoom (ZM - Free Report) , Nvidia (NVDA - Free Report) , Target (TGT - Free Report) , and others are trading at near new highs, and energy companies and travel & leisure stocks remain far off their pre-coronavirus levels.
Clearly, the upcoming U.S. election and unknows regarding Covid-19 present potential concerns. But the Fed helped boost Wall Street’s outlook last week by effectively announcing that rates will be pinned near zero for the foreseeable future. This means that investors will likely be looking for returns in the stock market.
With this in mind, we take a detailed look at three different tech-focused stocks that might be worth considering at the moment. All three also earn a Zacks Rank #1 (Strong Buy) right now.
First up, we discuss JD.com (JD - Free Report) , which is one of China’s biggest Internet companies and retailers. JD stock is up 160% in the last year to crush Amazon (AMZN - Free Report) and Alibaba (BABA - Free Report) . And that’s just the start of why it appears attractive.
Next up is niche e-commerce player Etsy (ETSY - Free Report) , who has seen its share soar 260% since the market’s lows to outpace eBay (EBAY - Free Report) and Shopify (SHOP - Free Report) . Etsy’s annual sales climbed by 36% in both 2019 and 2018, with its Q1 FY20 revenue up 35%. Then the coronavirus helped boost its second quarter revenue by 137%. And Etsy’s outlook and other fundamentals are strong.
We close it out with Apple (AAPL - Free Report) , which is trading at around $130 per share after its split. The iPhone giant was a must own stock over the last decade, and Apple is making its case for why it should remain a top performer over the next 10 years.
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.
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