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The Zacks Analyst Blog Highlights SPDR S&P 500 ETF Trust, Nvidia, Carnival, PulteGroup and Copart
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For Immediate Release
Chicago, IL – July 17, 2023 – 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: SPDR S&P 500 ETF Trust (SPY - Free Report) , Nvidia (NVDA - Free Report) , Carnival Corp. (CCL - Free Report) , PulteGroup Inc. (PHM - Free Report) and Copart, Inc. (CPRT - Free Report) .
Here are highlights from Friday’s Analyst Blog:
The S&P 500 Index reached 4,500 for the first time in more than 15 months as bulls continued to roar. A cooler-than-expected inflation report revived hopes that the Fed is nearing the end of its interest rate increases. Additionally, favorable macroeconomic developments and optimism about the transformational power of artificial intelligence (AI) are driving market optimism.
SPDR S&P 500 ETF Trust, the proxy version of the S&P 500 Index, has risen 17.5% so far this year. We have highlighted four stocks from different sectors that have gained more than 50% this year and have a Zacks Rank #1 (Strong Buy) or #2 (Buy). These companies have also witnessed positive estimate revisions for the current fiscal year. These are Nvidia, Carnival Corp., PulteGroup Inc. and Copart, Inc.
Technology remained the major outperformer, followed by the cyclical sectors. Inflation in the United States cooled down for the 12th consecutive month in June. The Consumer Price Index rose 3% year over year, marking the lowest rate since early 2021, and 0.2% over the last month. Although inflation has dropped from a peak of 9.1%, it is still significantly above the Federal Reserve's 2% target (read: 5 ETFs to Gain as Inflation Drops to a 2-Year Low).
Easing inflation indicates that the economy is stabilizing and interest rates may be declining. This could boost investor confidence and encourage more investments in the stock market. Lower inflation often leads to lower interest rates, which can reduce borrowing costs for companies, potentially leading to higher profits and, in turn, higher stock prices. Economic activity continued to expand at a modest pace, with robust job gains and a low unemployment rate and moderated inflation.
Consumer confidence unexpectedly jumped to an 18-month high in June amid lingering fears of a recession. The U.S. housing sector has also shown immense improvement, with homebuilder confidence reaching its highest level in almost a year.
Despite the fact that the Federal Reserve has raised rates this year, interest rates have largely remained low.
Let’s take a closer look at the fundamentals of SPY.
SPY in Focus
SPDR S&P 500 ETF Trust holds 503 stocks in its basket, with each accounting for no more than 7.5% of the assets. This suggests a nice balance across each security and prevents heavy concentration. The fund is widely spread across sectors with information technology, healthcare, financials and consumer discretionary accounting for a double-digit allocation each.
SPDR S&P 500 ETF Trust has AUM of $421 billion and charges 9 bps in fees per year. The product trades in a heavy volume of around 79 million shares a day on average, ensuring higher liquidity with a tight bid/ask spread, leading to lower trading costs for investors. SPY has a Zacks ETF Rank #3 (Hold) with a Medium risk outlook (see: all the Large Cap Blend ETFs here).
Below we have highlighted the above-mentioned five best-performing stocks in the ETF.
Best-Performing Stocks of SPY
Nvidia is the worldwide leader in visual computing technologies and the inventor of graphic processing unit or GPU. The stock has jumped 214.6% so far this year. It saw a positive earnings estimate revision of 4 cents over the past 90 days for the fiscal year ending January 2024, with an estimated growth of 129.9%.
Carnival operates as a cruise and vacation company. As a single economic entity, Carnival Corporation & Carnival plc forms the largest cruise operator in the world. Carnival is the world’s leading leisure travel firm and carries nearly half of the global cruise guests. The stock has surged 120% so far this year and accounts for 0.05% of the total assets.
Carnival saw its earnings estimate being revised upward from a loss of 31 cents to a loss of 16 cents for the fiscal year ending November 2023. It has an expected earnings growth rate of 96.6% and a Zacks Rank #1.
PulteGroup is engaged in homebuilding and financial services businesses, primarily in the United States. The stock makes up 0.05% of the assets in the SPY portfolio.
Copart provides online auctions and a wide range of remarketing services to process and sell salvage and clean title vehicles. The stock has gained 49% and accounts for a 0.1% share in the SPY portfolio.
Copart saw a positive earnings estimate revision of 3 cents over the past 90 days for the fiscal year ending July 2023, with an estimated growth of 10.3%. It has a Zacks Rank #1.
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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 https://www.zacks.com/performance for information about the performance numbers displayed in this press release.
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The Zacks Analyst Blog Highlights SPDR S&P 500 ETF Trust, Nvidia, Carnival, PulteGroup and Copart
For Immediate Release
Chicago, IL – July 17, 2023 – 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: SPDR S&P 500 ETF Trust (SPY - Free Report) , Nvidia (NVDA - Free Report) , Carnival Corp. (CCL - Free Report) , PulteGroup Inc. (PHM - Free Report) and Copart, Inc. (CPRT - Free Report) .
Here are highlights from Friday’s Analyst Blog:
The S&P 500 Index reached 4,500 for the first time in more than 15 months as bulls continued to roar. A cooler-than-expected inflation report revived hopes that the Fed is nearing the end of its interest rate increases. Additionally, favorable macroeconomic developments and optimism about the transformational power of artificial intelligence (AI) are driving market optimism.
SPDR S&P 500 ETF Trust, the proxy version of the S&P 500 Index, has risen 17.5% so far this year. We have highlighted four stocks from different sectors that have gained more than 50% this year and have a Zacks Rank #1 (Strong Buy) or #2 (Buy). These companies have also witnessed positive estimate revisions for the current fiscal year. These are Nvidia, Carnival Corp., PulteGroup Inc. and Copart, Inc.
Technology remained the major outperformer, followed by the cyclical sectors. Inflation in the United States cooled down for the 12th consecutive month in June. The Consumer Price Index rose 3% year over year, marking the lowest rate since early 2021, and 0.2% over the last month. Although inflation has dropped from a peak of 9.1%, it is still significantly above the Federal Reserve's 2% target (read: 5 ETFs to Gain as Inflation Drops to a 2-Year Low).
Easing inflation indicates that the economy is stabilizing and interest rates may be declining. This could boost investor confidence and encourage more investments in the stock market. Lower inflation often leads to lower interest rates, which can reduce borrowing costs for companies, potentially leading to higher profits and, in turn, higher stock prices. Economic activity continued to expand at a modest pace, with robust job gains and a low unemployment rate and moderated inflation.
Consumer confidence unexpectedly jumped to an 18-month high in June amid lingering fears of a recession. The U.S. housing sector has also shown immense improvement, with homebuilder confidence reaching its highest level in almost a year.
Despite the fact that the Federal Reserve has raised rates this year, interest rates have largely remained low.
Let’s take a closer look at the fundamentals of SPY.
SPY in Focus
SPDR S&P 500 ETF Trust holds 503 stocks in its basket, with each accounting for no more than 7.5% of the assets. This suggests a nice balance across each security and prevents heavy concentration. The fund is widely spread across sectors with information technology, healthcare, financials and consumer discretionary accounting for a double-digit allocation each.
SPDR S&P 500 ETF Trust has AUM of $421 billion and charges 9 bps in fees per year. The product trades in a heavy volume of around 79 million shares a day on average, ensuring higher liquidity with a tight bid/ask spread, leading to lower trading costs for investors. SPY has a Zacks ETF Rank #3 (Hold) with a Medium risk outlook (see: all the Large Cap Blend ETFs here).
Below we have highlighted the above-mentioned five best-performing stocks in the ETF.
Best-Performing Stocks of SPY
Nvidia is the worldwide leader in visual computing technologies and the inventor of graphic processing unit or GPU. The stock has jumped 214.6% so far this year. It saw a positive earnings estimate revision of 4 cents over the past 90 days for the fiscal year ending January 2024, with an estimated growth of 129.9%.
Nvidia makes up for 3.02% of the assets in SPY and has a Zacks Rank #1. You can see the complete list of today’s Zacks #1 Rank stocks here.
Carnival operates as a cruise and vacation company. As a single economic entity, Carnival Corporation & Carnival plc forms the largest cruise operator in the world. Carnival is the world’s leading leisure travel firm and carries nearly half of the global cruise guests. The stock has surged 120% so far this year and accounts for 0.05% of the total assets.
Carnival saw its earnings estimate being revised upward from a loss of 31 cents to a loss of 16 cents for the fiscal year ending November 2023. It has an expected earnings growth rate of 96.6% and a Zacks Rank #1.
PulteGroup is engaged in homebuilding and financial services businesses, primarily in the United States. The stock makes up 0.05% of the assets in the SPY portfolio.
PulteGroup saw a solid earnings estimate revision of 9 cents over the past 30 days for this year and carries a Zacks Rank #1 (read: 7 ETF Areas to Gain from a Rebounding Housing Market).
Copart provides online auctions and a wide range of remarketing services to process and sell salvage and clean title vehicles. The stock has gained 49% and accounts for a 0.1% share in the SPY portfolio.
Copart saw a positive earnings estimate revision of 3 cents over the past 90 days for the fiscal year ending July 2023, with an estimated growth of 10.3%. It has a Zacks Rank #1.
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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 https://www.zacks.com/performance for information about the performance numbers displayed in this press release.