On today’s episode of Full Court Finance at Zacks we look at the market and the broader earnings picture. The episode then turns its attention to
Adobe (and ADBE Quick Quote ADBE - Free Report) Lululemon ( to see if either stock might be worth buying ahead of the release of its upcoming quarterly financial results. LULU Quick Quote LULU - Free Report)
The Nasdaq hit another new record on Monday, after all three major U.S. indexes jumped to fresh highs last week. The market is off to a strong start in December after its November rally finally expanded far beyond the pandemic winners such as big retailers like Target (
TGT Quick Quote TGT - Free Report) and tech firms like Zoom Video ( ZM Quick Quote ZM - Free Report) .
Clearly, the vaccine news has Wall Street projecting that the hard-hit areas such as energy and travel will climb next year. Yet, even if there isn’t a vaccine, the earnings picture will likely continue to improve, since Q3 results already came in stronger-than-expected and the overall S&P 500 earnings outlook was improving long-before the vaccine announcements (also read:
Last Look at the Q3 Earnings Season).
Despite an overall bullish outlook that’s also being supported by the interest rate environment, it might be prudent for investors to stay focused on stocks that don’t need a vaccine in order to grow in 2021. This means that the focus for many might remain within tech and consumer-focused stocks outside of travel and leisure.
Lululemon, which reports its Q3 results on Thursday, December 10, fits directly into this mold. The athleisure company has already helped change the way millions of people around the world dress and its offerings might become even more popular during the work-from home environment. The stock has crush Nike (
NKE Quick Quote NKE - Free Report) and Adidas ( ADDYY Quick Quote ADDYY - Free Report) over the last several years, and it announced over the summer its planned purchase of digital-focused at-home fitness company Mirror, which helps it compete alongside Peloton ( PTON Quick Quote PTON - Free Report) and others.
Creative cloud software powerhouse Adobe has also showcased its ability to grow during our strange economic environment and it’s also set to report its Q4 FY20 results on Thursday. ADBE’s offerings are vital and relatively unique in a crowded space and the stock has easily outclimbed Microsoft (
MSFT Quick Quote MSFT - Free Report) , Amazon ( AMZN Quick Quote AMZN - Free Report) , Apple ( AAPL Quick Quote AAPL - Free Report) , and all of the other FAANG stocks over the past five years. Breakout Biotech Stocks with Triple-Digit Profit Potential The biotech sector is projected to surge beyond $775 billion by 2024 as scientists develop treatments for thousands of diseases. They’re also finding ways to edit the human genome to literally erase our vulnerability to these diseases. Zacks has just released Century of Biology: 7 Biotech Stocks to Buy Right Now to help investors profit from 7 stocks poised for outperformance. Our recent biotech recommendations have produced gains of +50%, +83% and +164% in as little as 2 months. The stocks in this report could perform even better. See these 7 breakthrough stocks now>>