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All four major market indexes closed this Hump Day in the green, with varying degrees of success: while the Dow barely crossed the finish line in the positive, dancing around break-even for the the final hour, +0.03%, the small-cap Russell 2000 gained 1.97% on the day. In between, the S&P 500 posted +0.19% at the close and the Nasdaq was +0.59%. Are we back to higher-risk growth investing?
It’s too soon to tell. In fact, this week has been a bit of a mishmash, especially considering the past six weeks or so, which were pretty easy to derive patterns from: selling out of growth (FAANG and other tech) and into cyclicals like staples and finance was the method at first, then reversing course. After this, investors would spend the first half a week on a strict low-valuation diet, only to feast a bit going into the end of the week. Through the first three days of this week, it’s hard to say what rules apply.
Zacks Rank #2 (Buy)-rated chip innovator NVIDIA (NVDA - Free Report) easily surpassed estimates in its Q1 earnings report released after the closing bell. Earnings of $3.66 per share was well past the Zacks consensus $3.28, and 106% higher than the $1.80 reported a year ago. Revenues came in at $5.66 billion, beating the $5.40 billion our analysts were expecting, which was already well-ahead of year-ago totals.
Its Gaming business — NVIDIA’s bread and butter — reached $2.76 billion in the quarter, while its Data Center came in at $2.05 billion. Both segments beat analysts’ expectations. Founder, President and CEO Jensen Huang’s company has only missed on the bottom line once in the past five years, with a trailing four-quarter average positive surprise of 10.7%. Shares, up 20% year to date and 80% from a year ago, are flat on the news in late trading.
And Williams-Sonoma (WSM - Free Report) posted a better-than-expected Q1 on both top and bottom lines: earnings of $2.93 per share easily outpaced the $1.85 anticipated, while revenues of $1.75 billion in the quarter took out the consensus $1.50 billion. The company posted very impressive year-over-year comps of +40%, with its West Elm brand up 51%. Revenue guidance for the full fiscal year was also ratcheted up. Shares have gained 3% in the after-market.
Tomorrow morning, we’ll see a new barrage of economic data, from weekly Jobless Claims to Durable Goods Orders and Pending Home Sales for April to a revision on Q1 GDP. While new claims are expected to slide further to 425K for the week — which would be a new pandemic low — Durable Goods are expected to be flat on demand meeting inflationary headwinds. Pending Home Sales are expected to almost be cut in half month over month, while Q1 GDP looks to tick up from its last print.
+1,500% Growth: One of 2021’s Most Exciting Investment Opportunities
In addition to the stocks you read about above, would you like to see Zacks’ top picks to capitalize on the Internet of Things (IoT)? It is one of the fastest-growing technologies in history, with an estimated 77 billion devices to be connected by 2025. That works out to 127 new devices per second.
Zacks has released a special report to help you capitalize on the Internet of Things’s exponential growth. It reveals 4 under-the-radar stocks that could be some of the most profitable holdings in your portfolio in 2021 and beyond.
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Markets Close Green, NVIDIA Trounces Q1 Estimates
All four major market indexes closed this Hump Day in the green, with varying degrees of success: while the Dow barely crossed the finish line in the positive, dancing around break-even for the the final hour, +0.03%, the small-cap Russell 2000 gained 1.97% on the day. In between, the S&P 500 posted +0.19% at the close and the Nasdaq was +0.59%. Are we back to higher-risk growth investing?
It’s too soon to tell. In fact, this week has been a bit of a mishmash, especially considering the past six weeks or so, which were pretty easy to derive patterns from: selling out of growth (FAANG and other tech) and into cyclicals like staples and finance was the method at first, then reversing course. After this, investors would spend the first half a week on a strict low-valuation diet, only to feast a bit going into the end of the week. Through the first three days of this week, it’s hard to say what rules apply.
Zacks Rank #2 (Buy)-rated chip innovator NVIDIA (NVDA - Free Report) easily surpassed estimates in its Q1 earnings report released after the closing bell. Earnings of $3.66 per share was well past the Zacks consensus $3.28, and 106% higher than the $1.80 reported a year ago. Revenues came in at $5.66 billion, beating the $5.40 billion our analysts were expecting, which was already well-ahead of year-ago totals.
Its Gaming business — NVIDIA’s bread and butter — reached $2.76 billion in the quarter, while its Data Center came in at $2.05 billion. Both segments beat analysts’ expectations. Founder, President and CEO Jensen Huang’s company has only missed on the bottom line once in the past five years, with a trailing four-quarter average positive surprise of 10.7%. Shares, up 20% year to date and 80% from a year ago, are flat on the news in late trading.
And Williams-Sonoma (WSM - Free Report) posted a better-than-expected Q1 on both top and bottom lines: earnings of $2.93 per share easily outpaced the $1.85 anticipated, while revenues of $1.75 billion in the quarter took out the consensus $1.50 billion. The company posted very impressive year-over-year comps of +40%, with its West Elm brand up 51%. Revenue guidance for the full fiscal year was also ratcheted up. Shares have gained 3% in the after-market.
Tomorrow morning, we’ll see a new barrage of economic data, from weekly Jobless Claims to Durable Goods Orders and Pending Home Sales for April to a revision on Q1 GDP. While new claims are expected to slide further to 425K for the week — which would be a new pandemic low — Durable Goods are expected to be flat on demand meeting inflationary headwinds. Pending Home Sales are expected to almost be cut in half month over month, while Q1 GDP looks to tick up from its last print.
Questions or comments about this article and/or its author? Click here>>
+1,500% Growth: One of 2021’s Most Exciting Investment Opportunities
In addition to the stocks you read about above, would you like to see Zacks’ top picks to capitalize on the Internet of Things (IoT)? It is one of the fastest-growing technologies in history, with an estimated 77 billion devices to be connected by 2025. That works out to 127 new devices per second.
Zacks has released a special report to help you capitalize on the Internet of Things’s exponential growth. It reveals 4 under-the-radar stocks that could be some of the most profitable holdings in your portfolio in 2021 and beyond.
Click here to download this report FREE >>