We use cookies to understand how you use our site and to improve your experience. This includes personalizing content and advertising. To learn more, click here. By continuing to use our site, you accept our use of cookies, revised Privacy Policy and Terms of Service.
You are being directed to ZacksTrade, a division of LBMZ Securities and licensed broker-dealer. ZacksTrade and Zacks.com are separate companies. The web link between the two companies is not a solicitation or offer to invest in a particular security or type of security. ZacksTrade does not endorse or adopt any particular investment strategy, any analyst opinion/rating/report or any approach to evaluating individual securities.
If you wish to go to ZacksTrade, click OK. If you do not, click Cancel.
The Zacks Analyst Blog Highlights Volkswagen, Arista Networks, Albemarle and ST Microelectronics
Read MoreHide Full Article
For Immediate Release
Chicago, IL – September 13, 2022 – 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: Volkswagen (VWAGY - Free Report) , Arista Networks (ANET - Free Report) , Albemarle (ALB - Free Report) and ST Microelectronics (STM - Free Report) .
Here are highlights from Monday’s Analyst Blog:
CPI Data Arrives Tuesday Morning: Global Week Ahead
In the Global Week Ahead, Europe’s elected leaders will keep scrambling to keep their voters' lights on. Their nation’s energy shortages — caused by Russia — remain serious.
Amidst this turmoil, Volkswagen seems set on listing car maker Porsche.
Luxury electric vehicles, anyone?
On Tuesday morn, before the NYSE stock market opens, U.S. Consumer Price Inflation (CPI) data provides a big macro input.
This data hits the tape a week before the Fed's Sept. 20-21 meeting.
Meanwhile, Mainland China tries to get its banks to help spur their flagging economy.
In the U.K. on Thursday, the Bank of England (BoE) was supposed to ponder the implications of their new government's record-breaking energy package. Their meeting was postponed a week.
That country, and the world, mourns the passing of Queen Elizabeth.
On an official Bank Holiday, Monday, September 19th, senior members of the Royal Family, heads of state from across the world, and around 2,000 others have been invited to attend the Queen’s funeral at Westminster Abbey in London.
Next are Reuters’ five world market themes, reordered for equity traders—
(1) On Tuesday, U.S. CPI Data for August Lands
Tuesday's U.S. inflation data is one of the last — and perhaps the most important — pieces of data that will help the Fed decide how aggressively it needs to hike rates in September.
July's CPI report showed a surprising moderation in prices that helped spur a rebound in stocks. That rally has since faded with Fed Chair Jerome Powell warning that the Fed's single-minded fight to tame inflation could lead to economic pain.
On an annual basis, CPI increased by a weaker-than-expected +8.5% in July, with the inflation gauge coming in flat, month-over-month. Early estimates for August call for a -0.1% decline on a monthly basis, but wildcards such as volatile energy prices are keeping investors on edge.
(2) An IPO Listing of Porsche
It's been a bleak year for capital markets. But that might not detract Volkswagen from listing luxury car maker Porsche.
Volkswagen fired the IPO starting gun even as European stock markets reeled from record inflation and the Russia energy standoff. The next three weeks will be crucial as bankers gather investor feedback and begin book building.
At the high end of estimates – investors expect a valuation between 60-85 billion euros ($60.4-$85.5 billion) - the IPO could be the largest in German history and the biggest in Europe since 1999, Refinitiv data showed.
Porsche will only backtrack on its stock market debut if "severe geopolitical problems arise", the sportscar brand's chief financial officer said on Tuesday. The Frankfurt Stock Exchange has only seen two SPACs and one small primary listing in 2022.
($1 = 0.9939 euros)
(3) Europe Out of Natural Gas
Faced with soaring energy prices that threaten to spark social unrest, necessitate rationing and inflict a recession, Europe's leaders are scrambling to pull together radical plans to counter Russian President Vladimir Putin's gas cut-off.
Governments are spending hundreds of billions of euros to help consumers and businesses cope with runaway bills. A plan from Britain's new government could cost as much as 150 billion pounds, sending its currency to near-four decade lows.
Eurozone energy ministers gather on Friday in Brussels to set plans in motion and discuss options — including gas price caps and emergency credit lines for energy market participants, though there are no pain-free solutions in sight.
Meanwhile, more oil-importing countries — for example India — are considering joining the Group of Seven wealthy nations' plan to cap the price of Russian oil, Washington said.
(4) China’s Economy Continues to Struggle
A downside surprise on Chinese inflation data on Friday cheered markets because it seems to afford policymakers plenty of room to ease and help boost a flagging economy.
But loan figures out shortly afterward pointed to the dilemma: who wants to borrow in a downturn? Loan growth is scarcely budging, and a meagre rise in August was below analysts' hopes.
The central bank has already flooded the system with cash, without improving confidence, since there is no clear path out of a deepening property crisis or COVID-19 lockdowns.
More help has been promised, but has yet to meaningfully arrive, leaving the Hang Seng (HSI) lingering near major lows and the yuan close to a two-year trough.
Data on industrial production, house prices and retail sales due on Sep. 16 will give more indications on the state of the world's second largest economy.
(5) On Thursday, the Bank of England (BoE) Was Supposed to Meet
The Bank of England has postponed its policy rate decision a week, citing the period of mourning the country is observing after the death of Queen Elizabeth II.
The BOE's Monetary Policy Committee decision will now be made on Sept. 22nd.
The Bank of England must gauge the implications for inflation from the government's huge energy bill bailout of households.
The measures will bring down price pressures in the short-term but could stoke them further ahead as consumers are spared the worst of the hit to their finances.
Many economists think the BoE will raise interest rates by a further 50 basis points — normally a huge increase but less than the 75 bps rate hike that investors had been betting on increasingly until a few days ago.
Policy makers will have a few more datapoints to chew over before then, including economic output figures for July on Monday, the latest job market readings on Tuesday and August inflation on Wednesday.
Top Zacks #1 Rank (STRONG BUY) Stocks
Stock markets may be struggling this year. Regardless, there are still overvalued stocks. The first two Zacks #1 Rank stocks I chose this week demonstrate that.
(1) Arista Networks: This is a $123 a share Communication Components industry stock, with a market cap of $37.4B. I see a Zacks Value score of D, a Zacks Growth score of D and a Zacks Momentum score of F.
(2) Albemarle: This is a $291 a share Diversified Chemical industry stock, with a market cap of $34.1B. I see a Zacks Value score of F, a Zacks Growth score of F and a Zacks Momentum score of F.
(3) ST Microelectronics: This is a $36 a share General Semiconductor industry stock, with a market cap of $32.8B. I see a Zacks Value score of B, a Zacks Growth score of B and a Zacks Momentum score of D.
The final one, a chip stock, is much cheaper. No one likes this industry right now.
Is it time to be a value investor here?
Why Haven’t You Looked at Zacks' Top Stocks?
Our 5 best-performing strategies have blown away the S&P's impressive +28.8% gain in 2021. Amazingly, they soared +40.3%, +48.2%, +67.6%, +94.4%, and +95.3%. Today you can access their live picks without cost or obligation.
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.
See More Zacks Research for These Tickers
Normally $25 each - click below to receive one report FREE:
Image: Bigstock
The Zacks Analyst Blog Highlights Volkswagen, Arista Networks, Albemarle and ST Microelectronics
For Immediate Release
Chicago, IL – September 13, 2022 – 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: Volkswagen (VWAGY - Free Report) , Arista Networks (ANET - Free Report) , Albemarle (ALB - Free Report) and ST Microelectronics (STM - Free Report) .
Here are highlights from Monday’s Analyst Blog:
CPI Data Arrives Tuesday Morning: Global Week Ahead
In the Global Week Ahead, Europe’s elected leaders will keep scrambling to keep their voters' lights on. Their nation’s energy shortages — caused by Russia — remain serious.
Amidst this turmoil, Volkswagen seems set on listing car maker Porsche.
Luxury electric vehicles, anyone?
On Tuesday morn, before the NYSE stock market opens, U.S. Consumer Price Inflation (CPI) data provides a big macro input.
This data hits the tape a week before the Fed's Sept. 20-21 meeting.
Meanwhile, Mainland China tries to get its banks to help spur their flagging economy.
In the U.K. on Thursday, the Bank of England (BoE) was supposed to ponder the implications of their new government's record-breaking energy package. Their meeting was postponed a week.
That country, and the world, mourns the passing of Queen Elizabeth.
On an official Bank Holiday, Monday, September 19th, senior members of the Royal Family, heads of state from across the world, and around 2,000 others have been invited to attend the Queen’s funeral at Westminster Abbey in London.
Next are Reuters’ five world market themes, reordered for equity traders—
(1) On Tuesday, U.S. CPI Data for August Lands
Tuesday's U.S. inflation data is one of the last — and perhaps the most important — pieces of data that will help the Fed decide how aggressively it needs to hike rates in September.
July's CPI report showed a surprising moderation in prices that helped spur a rebound in stocks. That rally has since faded with Fed Chair Jerome Powell warning that the Fed's single-minded fight to tame inflation could lead to economic pain.
On an annual basis, CPI increased by a weaker-than-expected +8.5% in July, with the inflation gauge coming in flat, month-over-month. Early estimates for August call for a -0.1% decline on a monthly basis, but wildcards such as volatile energy prices are keeping investors on edge.
(2) An IPO Listing of Porsche
It's been a bleak year for capital markets. But that might not detract Volkswagen from listing luxury car maker Porsche.
Volkswagen fired the IPO starting gun even as European stock markets reeled from record inflation and the Russia energy standoff. The next three weeks will be crucial as bankers gather investor feedback and begin book building.
At the high end of estimates – investors expect a valuation between 60-85 billion euros ($60.4-$85.5 billion) - the IPO could be the largest in German history and the biggest in Europe since 1999, Refinitiv data showed.
Porsche will only backtrack on its stock market debut if "severe geopolitical problems arise", the sportscar brand's chief financial officer said on Tuesday. The Frankfurt Stock Exchange has only seen two SPACs and one small primary listing in 2022.
($1 = 0.9939 euros)
(3) Europe Out of Natural Gas
Faced with soaring energy prices that threaten to spark social unrest, necessitate rationing and inflict a recession, Europe's leaders are scrambling to pull together radical plans to counter Russian President Vladimir Putin's gas cut-off.
Governments are spending hundreds of billions of euros to help consumers and businesses cope with runaway bills. A plan from Britain's new government could cost as much as 150 billion pounds, sending its currency to near-four decade lows.
Eurozone energy ministers gather on Friday in Brussels to set plans in motion and discuss options — including gas price caps and emergency credit lines for energy market participants, though there are no pain-free solutions in sight.
Meanwhile, more oil-importing countries — for example India — are considering joining the Group of Seven wealthy nations' plan to cap the price of Russian oil, Washington said.
(4) China’s Economy Continues to Struggle
A downside surprise on Chinese inflation data on Friday cheered markets because it seems to afford policymakers plenty of room to ease and help boost a flagging economy.
But loan figures out shortly afterward pointed to the dilemma: who wants to borrow in a downturn? Loan growth is scarcely budging, and a meagre rise in August was below analysts' hopes.
The central bank has already flooded the system with cash, without improving confidence, since there is no clear path out of a deepening property crisis or COVID-19 lockdowns.
More help has been promised, but has yet to meaningfully arrive, leaving the Hang Seng (HSI) lingering near major lows and the yuan close to a two-year trough.
Data on industrial production, house prices and retail sales due on Sep. 16 will give more indications on the state of the world's second largest economy.
(5) On Thursday, the Bank of England (BoE) Was Supposed to Meet
The Bank of England has postponed its policy rate decision a week, citing the period of mourning the country is observing after the death of Queen Elizabeth II.
The BOE's Monetary Policy Committee decision will now be made on Sept. 22nd.
The Bank of England must gauge the implications for inflation from the government's huge energy bill bailout of households.
The measures will bring down price pressures in the short-term but could stoke them further ahead as consumers are spared the worst of the hit to their finances.
Many economists think the BoE will raise interest rates by a further 50 basis points — normally a huge increase but less than the 75 bps rate hike that investors had been betting on increasingly until a few days ago.
Policy makers will have a few more datapoints to chew over before then, including economic output figures for July on Monday, the latest job market readings on Tuesday and August inflation on Wednesday.
Top Zacks #1 Rank (STRONG BUY) Stocks
Stock markets may be struggling this year. Regardless, there are still overvalued stocks. The first two Zacks #1 Rank stocks I chose this week demonstrate that.
(1) Arista Networks: This is a $123 a share Communication Components industry stock, with a market cap of $37.4B. I see a Zacks Value score of D, a Zacks Growth score of D and a Zacks Momentum score of F.
(2) Albemarle: This is a $291 a share Diversified Chemical industry stock, with a market cap of $34.1B. I see a Zacks Value score of F, a Zacks Growth score of F and a Zacks Momentum score of F.
(3) ST Microelectronics: This is a $36 a share General Semiconductor industry stock, with a market cap of $32.8B. I see a Zacks Value score of B, a Zacks Growth score of B and a Zacks Momentum score of D.
The final one, a chip stock, is much cheaper. No one likes this industry right now.
Is it time to be a value investor here?
Why Haven’t You Looked at Zacks' Top Stocks?
Our 5 best-performing strategies have blown away the S&P's impressive +28.8% gain in 2021. Amazingly, they soared +40.3%, +48.2%, +67.6%, +94.4%, and +95.3%. Today you can access their live picks without cost or obligation.
See Stocks Free >>
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.