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Zacks Market Edge Highlights: Apple, Intel, Sea Ltd and DocuSign

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For Immediate Release

Chicago, IL – December 10, 2020 – Zacks Market Edge is a podcast hosted weekly by Zacks Stock Strategist Tracey Ryniec. Every week, Tracey will be joined by guests to discuss the hottest investing topics in stocks, bonds and ETFs and how it impacts your life. To listen to the podcast, click here:

Stocks: Overvalued or Cheap Heading into 2021?

Welcome to Episode #251 of the Zacks Market Edge Podcast.

Every week, host and Zacks stock strategist, Tracey Ryniec, will be joined by guests to discuss the hottest investing topics in stocks, bonds and ETFs and how it impacts your life.

This week, Tracey is joined by Zacks Director of Research, Sheraz Mian, to discuss the earnings outlook for the S&P 500, the large cap companies, as well as the S&P 600, the small cap companies.

Currently, analysts expect 2021 S&P 500 earnings to rise 21.9% which is an expected P/E of 22.6.

That sounds expensive, right?

The S&P 600, small caps, are forecast to see a rebound in earnings of 33.6% after a decline of 30.4% in 2020. It’s 2021 P/E is at multi-decade highs.

But is it all about the “E” or does record low interest rates also play a role in valuation?

Technology Out Performing in 2020

In the third quarter of 2020, technology sector earnings were up 12.6% but they would have been up 20.4% year-over-year if not for Apple (AAPL - Free Report)  and Intel (INTC - Free Report) , both of whom saw earnings decline by 3.9% and 22%, respectively.

They are so big they were a drag on the sector’s overall earnings growth in the quarter. 

But heading into 2021, analysts see no change in tech’s dominance. Even in the S&P 600, small cap technology is expected to see double digit earnings growth every quarter next year.

Where Can You Find the Hidden Gems in 2021?

While analysts remain bullish about the rebound in both large and small caps, Sheraz believes the focus for investors who want to outperform the indexes should be on the small caps.

Sure, investors can buy a general small cap ETF to get exposure. The S&P Small Cap 600 ETF (SLY) fits that bill.

But what about investors who want to own individual small companies? Where do you find the best companies?

Hidden Gems in Zacks Top 10 Portfolio

Every year for his Zacks Top 10 Portfolio, which launches in January, he tries to find hidden gems that aren’t in the spotlight, and that includes small cap companies.

Two big winners in the 2020 portfolio were not on the top of everyone’s lips to start the year, but became pandemic darlings once the coronavirus hit.

Sea Limited (SE - Free Report)  is up over 400% while DocuSign (DOCU - Free Report)  has soared 200% in the portfolio since January.

What will be the hidden gems in the 2021 Top 10 Portfolio?

Find out all about the earnings, valuations and stock outlook for 2021 on this week’s podcast.

Zacks Names “Single Best Pick to Double”

From thousands of stocks, 5 Zacks experts each have chosen their favorite to skyrocket +100% or more in months to come. From those 5, Director of Research Sheraz Mian hand-picks one to have the most explosive upside of all.

You know this company from its past glory days, but few would expect that it’s poised for a monster turnaround. Fresh from a successful repositioning and flush with A-list celeb endorsements, it could rival or surpass other recent Zacks’ Stocks Set to Double like Boston Beer Company which shot up +143.0% in a little more than 9 months and Nvidia which boomed +175.9% in one year.

Free: See Our Top Stock and 4 Runners Up >>

 

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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.


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Intel Corporation (INTC) - free report >>

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Sea Limited Sponsored ADR (SE) - free report >>

DocuSign (DOCU) - free report >>

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