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The Zacks Analyst Blog Highlights: TSLA, JPM, FDX, ENPH and ZM
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For Immediate Release
Chicago, IL – December 29, 2020 – 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: Tesla (TSLA - Free Report) , JP Morgan Chase (JPM - Free Report) , FedEx Corp. (FDX - Free Report) , Enphase Energy (ENPH - Free Report) and Zoom (ZM - Free Report) .
Here are highlights from Monday’s Analyst Blog:
A Santa Claus Rally? Global Week Ahead
We have a short end-of-the-year Global Week Ahead in hand.
Stocks have tended to perform well in the last five trading days of December, and the first two of January, a phenomenon known as the “Santa Claus Rally.” This has lifted equities in 55 out of 74 years since 1945, according to CFRA Research.
This year, the period started on Thursday, Dec. 24th.
The average Santa Claus rally has boosted the S&P 500 index by +1.3% since 1969, according to the Stock Trader's Almanac
Overall, a year with a Santa Claus rally is followed by an annual +9.7% average gain the following year
But despite the S&P’s rally in the fourth quarter and its YTD gain of around +14%, a Santa Claus rally this year is far from given
Concerns over a new variant of the coronavirus, and weak macro readings, have weighed on stocks. The S&P 500 is down -0.7% since hitting record highs on Dec. 17th.
Here is how India’s Economic Times summed the drivers for this Global Week Ahead—
Just ahead are a pair of U.S. Senate races on Tuesday, Jan. 5th. That could tip control of the chamber to Democrats.
More than 1.1 million Georgians have already cast their ballots for the Jan. 5th contests, a level of participation that is on pace to rival the November presidential contest.
Overall, the broad U.S. stock market has focused on the stimulus deal passed by Congress (on Monday) and the rollout of coronavirus vaccines -- rather than increasing political risk.
This year's rally in the S&P 500 pushed its forward price to earnings valuation to 23.1. That is near its highest level in history.
This was done on the back of extensive government stimulus programs and unprecedented monetary support from the Federal Reserve.
Those backstops have left the market priced for perfection, giving it little more room to run without another catalyst.
Top Zacks #1 Rank (STRONG BUY) Stocks
Tesla:Yes, the electric car maker is on our #1 list this week. That means the company’s annual forward EPS estimates are rising. This stock is priced to perfection, and then some. The stock’s 5 to 1 post-split price is an eye-watering $662. The market cap is $627B. I see an obvious Zacks Value score of F, coming along with a Zacks Growth score of A, and a Momentum score of B.
JP Morgan Chase:The big U.S. bank. I see a share price of $124 and a market cap of $379.5B. I also note a Zacks Value score of F, a Zacks Growth score of F, and a Zacks Momentum score of B.
FedEx Corp.:This is the air freight courier. I see a share price of $268, making a market cap of $71.2B. I also note a Zacks Value score of B, a Zacks Growth score of A, and a Zacks Momentum score of A.
Key Global Macro
On Monday, it is a Boxing Day holiday in the U.K. and Canada.
On Tuesday, the S&P/Case-Shiller Home Price Index for October comes out. +6.9% y/y gains are expected. This has been a strong price year for single family housing.
On Wednesday, the U.K. Parliament will vote on Brexit.
On Thursday, U.S. initial jobless claims will get scrutiny, with the fresh lockdowns and rising case counts. The 4-week average is 818K. The week to Dec. 25th should show 803K.
European markets close for trading on this day.
Friday is New Year’s Day.
U.S. trading of stocks will be closed on Friday.
Conclusion
We will close out 2020 in the Global Week Ahead. The annual average S&P 500 index return, from its inception in 1926 through 2018, is +10% to +11%.
Want to guess what Tesla’s individual share price gains for 2020 were?
YTD returns are at +690%!
That annual Tesla share return was eclipsed by a few penny stock performances, ones that marketed successfully to the euphoria. Electric vehicle maker upstart Nio delivered a +1,039% YTD gain (its 52-week range is $2.11 to $57.20). Hydrogen Fuel Cell upstart Plug Power produced a +1,025% YTD gain (its 52-week range is $2.53 to $37.11.)
I personally find the tactic of selling publicly-listed stock to people -- before you build a successful business model, a profitable, growing company -- worrisome.
I guess believing in something that isn’t really here is the essence of Santa Claus.
There were a couple (mind-boggling) 2020 share returns stories and business models I can appreciate.
Consider Enphase Energy. This stock delivered a +594% YTD gain. The company builds a semiconductor-based microinverter system. That system converts direct current electricity to alternating current electricity at the individual solar module level.
Finally, video-conference provider Zoom came in with a +451% YTD gain.
Still. How soon do big incumbents take back market share from these two companies?
Does anyone want to guess what major stock tickers will have the best returns in 2021?
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 http://www.zacks.com/performancefor information about the performance numbers displayed in this press release.
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The Zacks Analyst Blog Highlights: TSLA, JPM, FDX, ENPH and ZM
For Immediate Release
Chicago, IL – December 29, 2020 – 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: Tesla (TSLA - Free Report) , JP Morgan Chase (JPM - Free Report) , FedEx Corp. (FDX - Free Report) , Enphase Energy (ENPH - Free Report) and Zoom (ZM - Free Report) .
Here are highlights from Monday’s Analyst Blog:
A Santa Claus Rally? Global Week Ahead
We have a short end-of-the-year Global Week Ahead in hand.
Stocks have tended to perform well in the last five trading days of December, and the first two of January, a phenomenon known as the “Santa Claus Rally.” This has lifted equities in 55 out of 74 years since 1945, according to CFRA Research.
This year, the period started on Thursday, Dec. 24th.
Concerns over a new variant of the coronavirus, and weak macro readings, have weighed on stocks. The S&P 500 is down -0.7% since hitting record highs on Dec. 17th.
Here is how India’s Economic Times summed the drivers for this Global Week Ahead—
Just ahead are a pair of U.S. Senate races on Tuesday, Jan. 5th. That could tip control of the chamber to Democrats.
More than 1.1 million Georgians have already cast their ballots for the Jan. 5th contests, a level of participation that is on pace to rival the November presidential contest.
Overall, the broad U.S. stock market has focused on the stimulus deal passed by Congress (on Monday) and the rollout of coronavirus vaccines -- rather than increasing political risk.
This year's rally in the S&P 500 pushed its forward price to earnings valuation to 23.1. That is near its highest level in history.
This was done on the back of extensive government stimulus programs and unprecedented monetary support from the Federal Reserve.
Those backstops have left the market priced for perfection, giving it little more room to run without another catalyst.
Top Zacks #1 Rank (STRONG BUY) Stocks
Tesla:Yes, the electric car maker is on our #1 list this week. That means the company’s annual forward EPS estimates are rising. This stock is priced to perfection, and then some. The stock’s 5 to 1 post-split price is an eye-watering $662. The market cap is $627B. I see an obvious Zacks Value score of F, coming along with a Zacks Growth score of A, and a Momentum score of B.
JP Morgan Chase:The big U.S. bank. I see a share price of $124 and a market cap of $379.5B. I also note a Zacks Value score of F, a Zacks Growth score of F, and a Zacks Momentum score of B.
FedEx Corp.:This is the air freight courier. I see a share price of $268, making a market cap of $71.2B. I also note a Zacks Value score of B, a Zacks Growth score of A, and a Zacks Momentum score of A.
Key Global Macro
On Monday, it is a Boxing Day holiday in the U.K. and Canada.
On Tuesday, the S&P/Case-Shiller Home Price Index for October comes out. +6.9% y/y gains are expected. This has been a strong price year for single family housing.
On Wednesday, the U.K. Parliament will vote on Brexit.
On Thursday, U.S. initial jobless claims will get scrutiny, with the fresh lockdowns and rising case counts. The 4-week average is 818K. The week to Dec. 25th should show 803K.
European markets close for trading on this day.
Friday is New Year’s Day.
U.S. trading of stocks will be closed on Friday.
Conclusion
We will close out 2020 in the Global Week Ahead. The annual average S&P 500 index return, from its inception in 1926 through 2018, is +10% to +11%.
Want to guess what Tesla’s individual share price gains for 2020 were?
YTD returns are at +690%!
That annual Tesla share return was eclipsed by a few penny stock performances, ones that marketed successfully to the euphoria. Electric vehicle maker upstart Nio delivered a +1,039% YTD gain (its 52-week range is $2.11 to $57.20). Hydrogen Fuel Cell upstart Plug Power produced a +1,025% YTD gain (its 52-week range is $2.53 to $37.11.)
I personally find the tactic of selling publicly-listed stock to people -- before you build a successful business model, a profitable, growing company -- worrisome.
I guess believing in something that isn’t really here is the essence of Santa Claus.
There were a couple (mind-boggling) 2020 share returns stories and business models I can appreciate.
Consider Enphase Energy. This stock delivered a +594% YTD gain. The company builds a semiconductor-based microinverter system. That system converts direct current electricity to alternating current electricity at the individual solar module level.
Finally, video-conference provider Zoom came in with a +451% YTD gain.
Still. How soon do big incumbents take back market share from these two companies?
Does anyone want to guess what major stock tickers will have the best returns in 2021?
Have a great trading week.
And a quiet and safe holiday!
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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.
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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 http://www.zacks.com/performancefor information about the performance numbers displayed in this press release.