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Top 3 Stocks That Investors Should be Thankful for in 2023
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In the first half of 2023, Wall Street witnessed an extraordinary rally on a less-hawkish Fed. Notably, the S&P 500 entered a new bull market. The S&P 500 and the Nasdaq Composite had their strongest performances in the first half of 2023 since 2019 and 1983, respectively. Most of the improvements were driven by the tech sector, owing to the enthusiasm for artificial intelligence (AI) and better-than-expected corporate earnings.
However, the third quarter of 2023 was an average-to-downbeat period for investors, mainly due to rising rates. A cooling U.S. economy, falling consumer confidence, a real estate crisis in China, and a series of bank downgrades also made matters worse for Wall Street. However, all was not downbeat for the broader market as there were ebbing U.S. recession fears along with several upbeat economic data points and a decent earnings season.
Against this backdrop, below we highlight stocks from a few investing areas (both equities and commodities) that deserve thanks from investors this year. These stocks include Hut 8 Mining (HUT - Free Report) , NVIDIA (NVDA - Free Report) and Denison Mine Corp (DNN - Free Report) .
The year has so far been upbeat for Bitcoin, which is up about 121%. This clearly explains the rally in Bitcoin mining and blockchain stocks. A less-hawkish Fed and the return of risk-on trade sentiments in the market have boosted tech-related stocks this year.
Also, we have seen the filing of spot ETF applications by renowned asset managers this year, which fueled a growing interest in cryptocurrencies from institutional and corporate clients. While the SEC has been in denial of a Bitcoin ETF for long, the filings represent a significant step toward widespread adoption.
Institutions such as JPMorgan and Goldman Sachs, which were against virtual currencies before, have started implementing them into their systems. This is a sign of growing acceptance among institutional investors.
Semiconductor
NVIDIA – Up 244.4%
The Zacks Rank #1 (Strong Buy) chip giant is likely to post about 226% growth in earnings in the fiscal year ending January 2024.
The NVIDIA stock is a blockbuster this year as it has skyrocketed more than 244% courtesy of high hopes for AI. A surge in Hyperscale demand and a solid uptake of AI-based smart cockpit infotainment solutions are acting as tailwinds. The AI-craze, coupled with the rebound in technology stocks amid hopes that Fed interest rates have peaked, has driven the stock extremely higher this year.
While big tech giants have binged on large language model (LLM) AI, NVIDIA revealed a new AI chip that will lower the cost of running LLMs significantly. The stock has even soared 22% since the start of November (as of Nov 14, 2023), marking a 10-day winning streak, the longest such run since 2016.
Uranium Miner
Denison Mine Corp – Up 60.4%
The Zacks Rank #1 premier intermediate uranium producer in North America is expected to record 100% growth in earnings in 2023.
Uranium prices have jumped to their highest level in 12 years. Demand for uranium has been rising thanks to renewed interest in alternative sources of energy, while supply has become constrained. Uranium, primarily utilized in nuclear power plants, is one of the most environmentally friendly methods for generating electricity. Notably, nuclear energy contributes only around 10% to the world's electricity production and about 20% in developed nations, such as the United States.
While new reactors have come online, many existing reactors are extending their operating licenses, and old reactors are restarting, supply has become a big challenge. Russia accounts for nearly 45% of the global market for uranium conversion and enrichment. The Russia-Ukraine war and the West’s aggression toward Russia, probably, added to the fear of lesser availability of uranium.
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Top 3 Stocks That Investors Should be Thankful for in 2023
In the first half of 2023, Wall Street witnessed an extraordinary rally on a less-hawkish Fed. Notably, the S&P 500 entered a new bull market. The S&P 500 and the Nasdaq Composite had their strongest performances in the first half of 2023 since 2019 and 1983, respectively. Most of the improvements were driven by the tech sector, owing to the enthusiasm for artificial intelligence (AI) and better-than-expected corporate earnings.
However, the third quarter of 2023 was an average-to-downbeat period for investors, mainly due to rising rates. A cooling U.S. economy, falling consumer confidence, a real estate crisis in China, and a series of bank downgrades also made matters worse for Wall Street. However, all was not downbeat for the broader market as there were ebbing U.S. recession fears along with several upbeat economic data points and a decent earnings season.
Against this backdrop, below we highlight stocks from a few investing areas (both equities and commodities) that deserve thanks from investors this year. These stocks include Hut 8 Mining (HUT - Free Report) , NVIDIA (NVDA - Free Report) and Denison Mine Corp (DNN - Free Report) .
Bitcoin Miner
Hut 8 Mining – Up 131.7% (as of Nov 17, 2023)
The Zacks Rank #2 (Buy) digital asset miner is expected to witness earnings growth of 136.8% in 2023. You can see the complete list of today’s Zacks #1 Rank stocks here.
The year has so far been upbeat for Bitcoin, which is up about 121%. This clearly explains the rally in Bitcoin mining and blockchain stocks. A less-hawkish Fed and the return of risk-on trade sentiments in the market have boosted tech-related stocks this year.
Also, we have seen the filing of spot ETF applications by renowned asset managers this year, which fueled a growing interest in cryptocurrencies from institutional and corporate clients. While the SEC has been in denial of a Bitcoin ETF for long, the filings represent a significant step toward widespread adoption.
Institutions such as JPMorgan and Goldman Sachs, which were against virtual currencies before, have started implementing them into their systems. This is a sign of growing acceptance among institutional investors.
Semiconductor
NVIDIA – Up 244.4%
The Zacks Rank #1 (Strong Buy) chip giant is likely to post about 226% growth in earnings in the fiscal year ending January 2024.
The NVIDIA stock is a blockbuster this year as it has skyrocketed more than 244% courtesy of high hopes for AI. A surge in Hyperscale demand and a solid uptake of AI-based smart cockpit infotainment solutions are acting as tailwinds. The AI-craze, coupled with the rebound in technology stocks amid hopes that Fed interest rates have peaked, has driven the stock extremely higher this year.
While big tech giants have binged on large language model (LLM) AI, NVIDIA revealed a new AI chip that will lower the cost of running LLMs significantly. The stock has even soared 22% since the start of November (as of Nov 14, 2023), marking a 10-day winning streak, the longest such run since 2016.
Uranium Miner
Denison Mine Corp – Up 60.4%
The Zacks Rank #1 premier intermediate uranium producer in North America is expected to record 100% growth in earnings in 2023.
Uranium prices have jumped to their highest level in 12 years. Demand for uranium has been rising thanks to renewed interest in alternative sources of energy, while supply has become constrained. Uranium, primarily utilized in nuclear power plants, is one of the most environmentally friendly methods for generating electricity. Notably, nuclear energy contributes only around 10% to the world's electricity production and about 20% in developed nations, such as the United States.
While new reactors have come online, many existing reactors are extending their operating licenses, and old reactors are restarting, supply has become a big challenge. Russia accounts for nearly 45% of the global market for uranium conversion and enrichment. The Russia-Ukraine war and the West’s aggression toward Russia, probably, added to the fear of lesser availability of uranium.