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 NVIDIA, Palo Alto, Adobe, Synopsys and Cadence Design
Read MoreHide Full Article
For Immediate Release
Chicago, IL – October 25, 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: NVIDIA Corp. (NVDA - Free Report) , Palo Alto Networks Inc. (PANW - Free Report) , Adobe Inc. (ADBE - Free Report) , Synopsys Inc. (SNPS - Free Report) and Cadence Design Systems Inc. (CDNS - Free Report) .
Here are highlights from Tuesday’s Analyst Blog:
Can the Nasdaq Maintain Its Market Lead in Q4?
Wall Street rebounded in 2023 after a highly disappointing 2022. The rally was primarily led by growth stocks, especially technology stocks. Consequently, the tech-heavy Nasdaq Composite Index took the lead role in enabling U.S. stock markets to resume their northward journey.
However, the market has faced hurdles in the past two and a half months. Market participants are worried as the Fed warned of one more rate hike of 25 basis points by the end of this year and pursued a higher interest rate regime for a longer period. The first rate cut is not expected before September 2024 and the inflation rate is unlikely to decline to the central bank’s target rate of 2% before 2026.
Recent Concerns
A higher market interest rate is detrimental to high-growth sectors like technology and consumer discretionary. Investment in growth stocks creates wealth over a long period of time. A higher market interest rate will increase the discount rate, which in turn will reduce the net present value of investment. Moreover, many of these companies depend on the chip source of credit for the business to grow.
As a result, the Nasdaq Composite suffered the most in the past two and a half months as it mostly comprises of growth sectors, especially technology. Despite the index’s recent bloodbath, several silver lines are there for this index to regain momentum.
Near-Term Positives
The tech rally in the first half of 2023 was led by a massive thrust toward artificial intelligence (AI), especially generative AI. The rapid penetration of digital technologies and the Internet worldwide during the lockdown period, ushered in significant adoption of AI.
Some financial and technology experts opine that AI is much-hyped and may lead to a bubble. We believe the AI-space is yet to unfold in the United States and in international markets. Once that happens, it will generate huge business opportunities for technology companies producing high-end products.
Moreover, the robust fundamentals of the U.S. economy reduce concerns of a near-term recession. Additionally, the blockbuster earnings results of the last reported quarter of NVIDIA — the largest global manufacturer of generative AI chipsets — raised expectations of investors that the market for AI will show strong growth in the coming decade.
Technology Sector: Vast Potential
The recent meltdown of the technology sector is a temporary phenomenon. The fundamentals of this sector are rock solid. We must not forget that the growing demand for hi-tech superior products has acted as a catalyst for the sector in an otherwise tough environment. At present, this sector is highly lucrative as a long list of tech behemoths are available at attractive valuations.
A series of breakthroughs in 5G wireless network, cloud computing, predictive analysis, AI, self-driving vehicles, digital personal assistants and IoT, has given a boost to the overall space. Consequently, the technology sector has vast potential.
How to Invest
At this stage, several Nasdaq Composite-listed stocks are available that looks attractive for future growth. However, picking them on the following criteria will make the task easy. First, select large-cap (market cap > $50 billion) stocks as these companies have a well-established business model, globally acclaimed brand value and a strong financial position.
Second, these stocks witnessed solid earnings estimate revisions for 2024 within the last 60 days.
Five such stocks are - NVIDIA Corp., Palo Alto Networks Inc., Adobe Inc., Synopsys Inc. and Cadence Design Systems Inc.
Why Haven’t You Looked at Zacks' Top Stocks?
Since 2000, our top stock-picking strategies have blown away the S&P's +6.2 average gain per year. Amazingly, they soared with average gains of +46.4%, +49.5% and +55.2% per year. 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: Shutterstock
The Zacks Analyst Blog Highlights NVIDIA, Palo Alto, Adobe, Synopsys and Cadence Design
For Immediate Release
Chicago, IL – October 25, 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: NVIDIA Corp. (NVDA - Free Report) , Palo Alto Networks Inc. (PANW - Free Report) , Adobe Inc. (ADBE - Free Report) , Synopsys Inc. (SNPS - Free Report) and Cadence Design Systems Inc. (CDNS - Free Report) .
Here are highlights from Tuesday’s Analyst Blog:
Can the Nasdaq Maintain Its Market Lead in Q4?
Wall Street rebounded in 2023 after a highly disappointing 2022. The rally was primarily led by growth stocks, especially technology stocks. Consequently, the tech-heavy Nasdaq Composite Index took the lead role in enabling U.S. stock markets to resume their northward journey.
However, the market has faced hurdles in the past two and a half months. Market participants are worried as the Fed warned of one more rate hike of 25 basis points by the end of this year and pursued a higher interest rate regime for a longer period. The first rate cut is not expected before September 2024 and the inflation rate is unlikely to decline to the central bank’s target rate of 2% before 2026.
Recent Concerns
A higher market interest rate is detrimental to high-growth sectors like technology and consumer discretionary. Investment in growth stocks creates wealth over a long period of time. A higher market interest rate will increase the discount rate, which in turn will reduce the net present value of investment. Moreover, many of these companies depend on the chip source of credit for the business to grow.
As a result, the Nasdaq Composite suffered the most in the past two and a half months as it mostly comprises of growth sectors, especially technology. Despite the index’s recent bloodbath, several silver lines are there for this index to regain momentum.
Near-Term Positives
The tech rally in the first half of 2023 was led by a massive thrust toward artificial intelligence (AI), especially generative AI. The rapid penetration of digital technologies and the Internet worldwide during the lockdown period, ushered in significant adoption of AI.
Some financial and technology experts opine that AI is much-hyped and may lead to a bubble. We believe the AI-space is yet to unfold in the United States and in international markets. Once that happens, it will generate huge business opportunities for technology companies producing high-end products.
Moreover, the robust fundamentals of the U.S. economy reduce concerns of a near-term recession. Additionally, the blockbuster earnings results of the last reported quarter of NVIDIA — the largest global manufacturer of generative AI chipsets — raised expectations of investors that the market for AI will show strong growth in the coming decade.
Technology Sector: Vast Potential
The recent meltdown of the technology sector is a temporary phenomenon. The fundamentals of this sector are rock solid. We must not forget that the growing demand for hi-tech superior products has acted as a catalyst for the sector in an otherwise tough environment. At present, this sector is highly lucrative as a long list of tech behemoths are available at attractive valuations.
A series of breakthroughs in 5G wireless network, cloud computing, predictive analysis, AI, self-driving vehicles, digital personal assistants and IoT, has given a boost to the overall space. Consequently, the technology sector has vast potential.
How to Invest
At this stage, several Nasdaq Composite-listed stocks are available that looks attractive for future growth. However, picking them on the following criteria will make the task easy. First, select large-cap (market cap > $50 billion) stocks as these companies have a well-established business model, globally acclaimed brand value and a strong financial position.
Second, these stocks witnessed solid earnings estimate revisions for 2024 within the last 60 days.
Five such stocks are - NVIDIA Corp., Palo Alto Networks Inc., Adobe Inc., Synopsys Inc. and Cadence Design Systems Inc.
Why Haven’t You Looked at Zacks' Top Stocks?
Since 2000, our top stock-picking strategies have blown away the S&P's +6.2 average gain per year. Amazingly, they soared with average gains of +46.4%, +49.5% and +55.2% per year. 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.