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5 Must-Buy High-Flying Stocks for Sparkling Returns
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Wall Street is set to close a strong first half of 2023 after a highly disappointing 2022. The inflation rate has seen a steady decline since its recent peak in June 2022 though it remains well above the Fed’s 2% target rate. Accordingly, the Fed has reduced the magnitude of interest rate hikes.
The U.S. economy, especially the labor market, remains resilient, which came as a respite to concerns of a near-term recession, as warned by a section of economists and financial researchers. Consequently, year to date, the S&P 500 and the Nasdaq Composite have climbed up14.1% and 30.2%, respectively. The Dow is also in green with a gain of 2.4%.
Several stocks have popped in the first half of 2023. A handful of those are corporate behemoths with a well-established business model, globally acclaimed brand value and solid financial position. Investment in these stocks with a favorable Zacks Rank should be prudent.
Our Top Picks
We have narrowed our search to five corporate giants that have rallied more than 75% in 2023 with more upside left. These stocks have seen positive earnings estimate revisions in the last 60 days. 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.
The chart below shows the price performance of our five picks year to date.
Image Source: Zacks Investment Research
Meta Platforms Inc. (META - Free Report) is benefiting from steady user growth across all regions, particularly Asia Pacific. Increased engagement for its products like Instagram, WhatsApp, Messenger and Facebook has been a major growth driver. META is considered to have pioneered the concept of social networking.
However, as developed regions mature, Meta Platforms has taken measures to drive penetration in the emerging markets of South East Asia, Latin America and Africa. Of all places, India deserves a-special mention in terms of user growth. The world’s second-largest populated country offers tremendous potential for META. With China off the radar, India can prove to be a terrific growth engine for Meta.
Zacks Rank #1 Meta Platform has an expected revenue and earnings growth rate of 9% and 21.5%, respectively, for the current year. The Zacks Consensus Estimate for current-year earnings has improved 14.3% over the last 60 days. The stock price of META has jumped 137.1% year to date.
NVIDIA Corp. (NVDA - Free Report) is gaining from the strong growth of artificial intelligence, high-performance computing and accelerated computing, which is boosting its Compute & Networking revenues. A surge in Hyperscale demand and a solid uptake of artificial intelligence-based smart cockpit infotainment solutions are acting as tailwinds for NVDA.
The collaboration with Mercedes-Benz and Audi is likely to advance NVDA’s presence in autonomous vehicles and other automotive electronics space. We expect its Automotive segment’s revenues to witness a CAGR of 29% through fiscal 2023-2025.
Zacks Rank #1 NVIDIA has an expected revenue and earnings growth rate of 58.1% and more than 100%, respectively, for the current year (ending January 2024). The Zacks Consensus Estimate for current-year earnings has improved 0.3% over the last seven days. The stock price of NVDA has soared 194.9% year to date.
Palo Alto Networks Inc. (PANW - Free Report) has been benefiting from continuous deal wins and the increasing adoption of PANW’s next-generation security platforms, attributable to the rise in the remote work environment and the need for stronger security.
Growing traction in Prisma and Cortex offerings is acting as a tailwind. PANW continues to acquire new customers and increase wallet share with existing customers. Our estimates suggests that Palo Alto’s revenues will witness a CAGR of 21.1% through fiscal 2023-2025.
Zacks Rank #1 Palo Alto Networks has an expected revenue and earnings growth rate of 25.3% and 68.7%, respectively, for the current year (ending July 2023). The Zacks Consensus Estimate for current-year earnings has improved 6% over the last 30 days. The stock price of PANW has advanced 78.6% year to date.
Royal Caribbean Cruises Ltd. (RCL - Free Report) has been benefiting from strong close-in bookings at higher prices and continued strength of onboard spending driving load factors. Considering the extension of the WAVE season and solid pent-up demand, RCL raised its 2023 guidance. RCL expects adjusted EPS to be $4.40-$4.80, up from the previously stated $3-$3.60.
Zacks Rank #1 Royal Caribbean Cruises has an expected revenue and earnings growth rate of 48.5% and more than 100%, respectively, for the current year. The Zacks Consensus Estimate for current-year earnings has improved 22% over the last 30 days. The stock price of RCL has surged 97.1% year to date.
DraftKings Inc. (DKNG - Free Report) is a digital sports entertainment and gaming company catering to the competitive spirits of sports fans with products that include daily fantasy, regulated gaming and digital media. DKNG is the only U.S.-based vertically integrated sports betting operator.
DKNG is a multi-channel provider of sports betting and gaming technologies, powering sports and gaming entertainment for 50 operators across more than 15 regulated U.S. and global markets.
Zacks Rank #2 DraftKings has an expected revenue and earnings growth rate of 43% and 40.8%, respectively, for the current year. The Zacks Consensus Estimate for current-year earnings has improved 0.5% over the last seven days. The stock price of DKNG has climbed 125.1% year to date.
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5 Must-Buy High-Flying Stocks for Sparkling Returns
Wall Street is set to close a strong first half of 2023 after a highly disappointing 2022. The inflation rate has seen a steady decline since its recent peak in June 2022 though it remains well above the Fed’s 2% target rate. Accordingly, the Fed has reduced the magnitude of interest rate hikes.
The U.S. economy, especially the labor market, remains resilient, which came as a respite to concerns of a near-term recession, as warned by a section of economists and financial researchers. Consequently, year to date, the S&P 500 and the Nasdaq Composite have climbed up14.1% and 30.2%, respectively. The Dow is also in green with a gain of 2.4%.
Several stocks have popped in the first half of 2023. A handful of those are corporate behemoths with a well-established business model, globally acclaimed brand value and solid financial position. Investment in these stocks with a favorable Zacks Rank should be prudent.
Our Top Picks
We have narrowed our search to five corporate giants that have rallied more than 75% in 2023 with more upside left. These stocks have seen positive earnings estimate revisions in the last 60 days. 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.
The chart below shows the price performance of our five picks year to date.
Image Source: Zacks Investment Research
Meta Platforms Inc. (META - Free Report) is benefiting from steady user growth across all regions, particularly Asia Pacific. Increased engagement for its products like Instagram, WhatsApp, Messenger and Facebook has been a major growth driver. META is considered to have pioneered the concept of social networking.
However, as developed regions mature, Meta Platforms has taken measures to drive penetration in the emerging markets of South East Asia, Latin America and Africa. Of all places, India deserves a-special mention in terms of user growth. The world’s second-largest populated country offers tremendous potential for META. With China off the radar, India can prove to be a terrific growth engine for Meta.
Zacks Rank #1 Meta Platform has an expected revenue and earnings growth rate of 9% and 21.5%, respectively, for the current year. The Zacks Consensus Estimate for current-year earnings has improved 14.3% over the last 60 days. The stock price of META has jumped 137.1% year to date.
NVIDIA Corp. (NVDA - Free Report) is gaining from the strong growth of artificial intelligence, high-performance computing and accelerated computing, which is boosting its Compute & Networking revenues. A surge in Hyperscale demand and a solid uptake of artificial intelligence-based smart cockpit infotainment solutions are acting as tailwinds for NVDA.
The collaboration with Mercedes-Benz and Audi is likely to advance NVDA’s presence in autonomous vehicles and other automotive electronics space. We expect its Automotive segment’s revenues to witness a CAGR of 29% through fiscal 2023-2025.
Zacks Rank #1 NVIDIA has an expected revenue and earnings growth rate of 58.1% and more than 100%, respectively, for the current year (ending January 2024). The Zacks Consensus Estimate for current-year earnings has improved 0.3% over the last seven days. The stock price of NVDA has soared 194.9% year to date.
Palo Alto Networks Inc. (PANW - Free Report) has been benefiting from continuous deal wins and the increasing adoption of PANW’s next-generation security platforms, attributable to the rise in the remote work environment and the need for stronger security.
Growing traction in Prisma and Cortex offerings is acting as a tailwind. PANW continues to acquire new customers and increase wallet share with existing customers. Our estimates suggests that Palo Alto’s revenues will witness a CAGR of 21.1% through fiscal 2023-2025.
Zacks Rank #1 Palo Alto Networks has an expected revenue and earnings growth rate of 25.3% and 68.7%, respectively, for the current year (ending July 2023). The Zacks Consensus Estimate for current-year earnings has improved 6% over the last 30 days. The stock price of PANW has advanced 78.6% year to date.
Royal Caribbean Cruises Ltd. (RCL - Free Report) has been benefiting from strong close-in bookings at higher prices and continued strength of onboard spending driving load factors. Considering the extension of the WAVE season and solid pent-up demand, RCL raised its 2023 guidance. RCL expects adjusted EPS to be $4.40-$4.80, up from the previously stated $3-$3.60.
Zacks Rank #1 Royal Caribbean Cruises has an expected revenue and earnings growth rate of 48.5% and more than 100%, respectively, for the current year. The Zacks Consensus Estimate for current-year earnings has improved 22% over the last 30 days. The stock price of RCL has surged 97.1% year to date.
DraftKings Inc. (DKNG - Free Report) is a digital sports entertainment and gaming company catering to the competitive spirits of sports fans with products that include daily fantasy, regulated gaming and digital media. DKNG is the only U.S.-based vertically integrated sports betting operator.
DKNG is a multi-channel provider of sports betting and gaming technologies, powering sports and gaming entertainment for 50 operators across more than 15 regulated U.S. and global markets.
Zacks Rank #2 DraftKings has an expected revenue and earnings growth rate of 43% and 40.8%, respectively, for the current year. The Zacks Consensus Estimate for current-year earnings has improved 0.5% over the last seven days. The stock price of DKNG has climbed 125.1% year to date.