Back to top

Image: Bigstock

The Zacks Analyst Blog Highlights: Tesla, Square, NVIDIA, QUALCOMM and Alphabet

Read MoreHide Full Article

For Immediate Release

Chicago, IL – January 13, 2021 – 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, Inc. (TSLA - Free Report) , Square, Inc. (SQ - Free Report) , NVIDIA Corporation (NVDA - Free Report) , QUALCOMM Incorporated (QCOM - Free Report) and Alphabet Inc. (GOOGL - Free Report) .

Here are highlights from Tuesday’s Analyst Blog:

Corporate Behemoths with Immense Upside for 2021

Wall Street defeated the coronavirus-led pandemic last year. The year was rather dramatic with the termination of the largest bull market in early March, formation of the shortest bear market and the confirmation of a new bull market. Stock markets maintained their rally in the first week of 2021 too and are likely to remain northbound in the long term.

Several corporate behemoths (market capital > $100 billion) have skyrocketed in 2020. A handful of them are also well poised on the growth trajectory for this year. At this stage, it will be fruitful to invest in those stocks with a favorable Zacks Rank.

Major Catalysts of 2021

The FDA has already authorized two COVID-19 vaccines, which means that the economy will reopen and gradually operate at the pre-pandemic level. Last month, the U.S. Congress approved another $900 billion fiscal stimulus, which may increase in 2021.

Moreover, the Fed is pursuing a remarkable ultra-dovish monetary policy to ensure sufficient liquidity in the market. The benchmark interest rate had been reduced to 0-0.25% in March 2020 and is likely to stay there at least up to 2023.

Strong pent-up demand is likely to drive the U.S. economy in 2021. Personal savings rate was high last year due to concerns over coronavirus-led economic uncertainties.

Consumers were restrained or restricted by the government to spend on those items that were closed during lockdowns. Reopening of the economy with the easing of the pandemic will significantly boost personal spending, the largest component of U.S. GDP.

Finally, the U.S. economy remained stable despite the global outbreak of coronavirus and its devastations. The first trench of fiscal stimulus — the CARES ACT — ended in July. However, the economy has grown in the last five months albeit at a slow pace despite the lack of a fresh round of fiscal stimulus.

Our Top Picks

We have narrowed down our search to seven corporate behemoths that have strong growth potential in 2021. Moreover, these stocks have long-term (3-5 years) growth of more than 10% compared with the benchmark S&P 500 Index's estimated long-term growth rate of 9%.

Additionally, these stocks witnessed solid earnings estimate revisions for 2021 within the last 7 days reflecting their strong business potentials in 2021. Finally, each of our picks carries either a Zacks Rank #1 (Strong Buy) or 2 (Buy). You can see the complete list of today's Zacks #1 Rank stocks here.

Tesla has acquired a substantial market share within the electric car segment. Strong performance and impressive design of the firm's products are ramping up sales volumes. Increasing Model 3 delivery, which forms a major chunk of the automaker's overall deliveries, is aiding the company's top line. Along with Model 3, Model Y is also contributing to its revenues.

The Zacks Rank #1 company has an expected earnings growth rate of 60.5% for the current year.  It has a long-term growth rate of 32.9%. The Zacks Consensus Estimate for current-year earnings has improved 2% over the last 7 days.

Square offers financial and marketing services in the United States and internationally through its comprehensive commerce ecosystem that helps sellers to start, run and grow their businesses.

The Zacks Rank #2 company has an expected earnings growth rate of 40.6% for the current year.  It has a long-term growth rate of 33%. The Zacks Consensus Estimate for current-year earnings has improved 0.9% over the last 7 days.

NVIDIA is gaining a decent market share among gaming service providers. The strong line-up of advanced graphics cards has made it a favorite graphics card provider among PC makers. Its foray into the autonomous vehicles space is a major positive. NVIDIA's GPUs are rapidly gaining from the proliferation of artificial intelligence.

The Zacks Rank #1 company has an expected earnings growth rate of 20% for next year (ending January 2022).  It has a long-term growth rate of 18.3%. The Zacks Consensus Estimate for next-year earnings has improved 1.1% over the last 7 days.

QUALCOMM designs, develops, manufactures and markets digital communication products worldwide. It operates through three segments: Qualcomm CDMA Technologies, Qualcomm Technology Licensing, and Qualcomm Strategic Initiatives.

The Zacks Rank #2 company has an expected earnings growth rate of 71.4% for the current year (ending September 2021).  It has a long-term growth rate of 19.6%. The Zacks Consensus Estimate for current-year earnings has improved 0.6% over the last 7 days.

Alphabet has been showing increased appetite in the Home Assistant space. It made its foray into this market in 2016 with the launch of Google Home. The company has been growing rapidly in this fast-growing highly-competitive cloud market. The Google search engine is the dominant player in both laptop and mobile platforms. Moreover, Alphabet is strongly positioned with the YouTube platform for online and mobile video.

The Zacks Rank #2 company has an expected earnings growth rate of 11.9% for the current year. Its long-term growth rate is 18.5%. The Zacks Consensus Estimate for the current year has improved 0.3% over the last 7 days.

Looking for Stocks with Skyrocketing Upside?

Zacks has just released a Special Report on the booming investment opportunities of legal marijuana.

Ignited by referendums and legislation, this industry is expected to blast from an already robust $17.7 billion in 2019 to a staggering $73.6 billion by 2027. Early investors stand to make a killing, but you have to be ready to act and know just where to look.

See the pot stocks we're targeting >>

Media Contact

Zacks Investment Research

800-767-3771 ext. 9339

support@zacks.com                                      

https://www.zacks.com                                          

 

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.