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Zacks Market Edge Highlights: NVDA, LLY, CMG, DECK and VRT
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For Immediate Release
Chicago, IL – February 9, 2024 – Zacks Market Edge is a podcast hosted weekly by Zacks Stock Strategist Tracey Ryniec. Every week, Tracey will be joined by guests to discuss the hottest investing topics in stocks, bonds and ETFs and how it impacts your life. To listen to the podcast, click here: https://www.zacks.com/stock/news/2223610/should-you-buy-a-stock-on-its-all-time-highs
Should You Buy a Stock at Its All-Time Highs?
Welcome to Episode #389 of the Zacks Market Edge Podcast.
(0:30) - Should You Be Investing In Stocks That Are Hitting All-Time Highs?
(5:00) - Is The Technology Industry The Place To Start Buying?
(15:15) - Where Should You Be Looking To Invest Outside of Technology Growth?
Every week, host and Zacks stock strategist, Tracey Ryniec, will be joined by guests to discuss the hottest investing topics in stocks, bonds, and ETFs and how it impacts your life.
This week, Tracey is going solo to talk about buying a stock when it’s at all-time highs. Should you buy on the break out or wait for a pullback?
Buying a stock after it’s taken off and is making new highs is very difficult for many investors, emotionally. Some think it’s too late or that the stock must be due for a pull back. Many think they have “missed” the run.
And if it’s up big, for example, it has doubled in 6 months, how much more does it have left in the tank?
Buying at the highs seems risky.
The Chart Versus the Fundamentals
The first question an investor should ask is if they are buying this stock as an investment, for the long-term, or a trade, for the short-term. What is the goal?
Some will trade the chart, by using the 50 or 200-day moving averages or other technicals. Others will buy based on the fundamentals.
Tracey looked at the fundamentals for these 5 stocks. She is a value investor and is buying for the long-term.
What does the earnings outlook look like on these red-hot stocks?
NVIDIA is seemingly hitting new all-times high nearly every day in 2024. Shares of NVIDIA are up 42.5% year-to-date. And over the last year, they’ve soared 234%.
On the chart, the shares appear to be going “vertical.” NVIDIA, however, trades with a forward P/E of just 34. Earnings are expected to jump 268% in fiscal 2024 and another 63% in fiscal 2025.
Do NVIDIA’s fundamentals support buying at the highs?
Eli Lilly shares have been red-hot over the last year as the possibility of big sales from weight loss drugs became a reality. Shares are up 115% over that time and have gained 24.4% in 2024 alone.
Earnings are also expected to soar, up 97% in 2024 and another 43% in 2025. But the shares remain expensive, even as earnings are growing, with a forward P/E of 56.6.
Is Eli Lilly simply too hot to handle now or has the growth only just begun?
Chipotle Mexican Grill busted out to new all-time highs on yet another earnings beat. Shares are up 16.6% year-to-date. Over the last year, shares of Chipotle have surged 57%.
Chipotle’s earnings are expected to rise 18% in 2024 and another 19.2% in 2025. But even with the earnings on the rise, the shares are not cheap. Chipotle trades with a forward P/E of 47.
How much are you willing to pay for Chipotle’s double-digit earnings growth?
Deckers Outdoor, the maker of popular brands UGG and Hoka, just posted another big beat on earnings. Shares hit new all-time highs in 2024, gaining 25% year-to-date. Over the last year, shares of Deckers Outdoor are up 100%.
Deckers trades with a forward P/E of 31. Earnings are expected to jump 37.3% in fiscal 2024 and 11% in fiscal 2025.
Should investors buy Deckers on future double-digit earnings growth and its powerful brands?
Vertiv is in the data center industry and, in 2023 and 2024, that means the stock is red-hot. Shares are up 327% over the last year and have tacked on 26.5% year-to-date.
Earnings are expected to jump 228% in 2023 and another 27.6% in 2024 but Vertiv has not yet reported fourth quarter results. It has beat the last 3 quarters.
Vertiv trades with a forward P/E of 26.6. That is among the cheaper P/Es of the 5 stocks in this podcast.
Will there be more upside in Vertiv after the earnings report?
What Else do you Need to Know About Buying on the All-Time High?
Tune into this week’s podcast to find out.
[In full disclosure, Tracey owns shares of VRT in Zacks Value Investor portfolio and in her own personal portfolio.]
Why Haven’t You Looked at Zacks' Top Stocks?
Since 2000, our top stock-picking strategies have blown away the S&P's +7.0 average gain per year. Amazingly, they soared with average gains of +44.9%, +48.4% 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.
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Zacks Market Edge Highlights: NVDA, LLY, CMG, DECK and VRT
For Immediate Release
Chicago, IL – February 9, 2024 – Zacks Market Edge is a podcast hosted weekly by Zacks Stock Strategist Tracey Ryniec. Every week, Tracey will be joined by guests to discuss the hottest investing topics in stocks, bonds and ETFs and how it impacts your life. To listen to the podcast, click here: https://www.zacks.com/stock/news/2223610/should-you-buy-a-stock-on-its-all-time-highs
Should You Buy a Stock at Its All-Time Highs?
Welcome to Episode #389 of the Zacks Market Edge Podcast.
Every week, host and Zacks stock strategist, Tracey Ryniec, will be joined by guests to discuss the hottest investing topics in stocks, bonds, and ETFs and how it impacts your life.
This week, Tracey is going solo to talk about buying a stock when it’s at all-time highs. Should you buy on the break out or wait for a pullback?
Buying a stock after it’s taken off and is making new highs is very difficult for many investors, emotionally. Some think it’s too late or that the stock must be due for a pull back. Many think they have “missed” the run.
And if it’s up big, for example, it has doubled in 6 months, how much more does it have left in the tank?
Buying at the highs seems risky.
The Chart Versus the Fundamentals
The first question an investor should ask is if they are buying this stock as an investment, for the long-term, or a trade, for the short-term. What is the goal?
Some will trade the chart, by using the 50 or 200-day moving averages or other technicals. Others will buy based on the fundamentals.
Tracey looked at the fundamentals for these 5 stocks. She is a value investor and is buying for the long-term.
What does the earnings outlook look like on these red-hot stocks?
5 Stocks at All-Time Highs: Should You Buy?
1. NVIDIA Corp. (NVDA - Free Report)
NVIDIA is seemingly hitting new all-times high nearly every day in 2024. Shares of NVIDIA are up 42.5% year-to-date. And over the last year, they’ve soared 234%.
On the chart, the shares appear to be going “vertical.” NVIDIA, however, trades with a forward P/E of just 34. Earnings are expected to jump 268% in fiscal 2024 and another 63% in fiscal 2025.
Do NVIDIA’s fundamentals support buying at the highs?
2. Eli Lilly and Co. (LLY - Free Report)
Eli Lilly shares have been red-hot over the last year as the possibility of big sales from weight loss drugs became a reality. Shares are up 115% over that time and have gained 24.4% in 2024 alone.
Earnings are also expected to soar, up 97% in 2024 and another 43% in 2025. But the shares remain expensive, even as earnings are growing, with a forward P/E of 56.6.
Is Eli Lilly simply too hot to handle now or has the growth only just begun?
3. Chipotle Mexican Grill, Inc. (CMG - Free Report)
Chipotle Mexican Grill busted out to new all-time highs on yet another earnings beat. Shares are up 16.6% year-to-date. Over the last year, shares of Chipotle have surged 57%.
Chipotle’s earnings are expected to rise 18% in 2024 and another 19.2% in 2025. But even with the earnings on the rise, the shares are not cheap. Chipotle trades with a forward P/E of 47.
How much are you willing to pay for Chipotle’s double-digit earnings growth?
4. Deckers Outdoor Corp. (DECK - Free Report)
Deckers Outdoor, the maker of popular brands UGG and Hoka, just posted another big beat on earnings. Shares hit new all-time highs in 2024, gaining 25% year-to-date. Over the last year, shares of Deckers Outdoor are up 100%.
Deckers trades with a forward P/E of 31. Earnings are expected to jump 37.3% in fiscal 2024 and 11% in fiscal 2025.
Should investors buy Deckers on future double-digit earnings growth and its powerful brands?
5. Vertiv Holdings Co. (VRT - Free Report)
Vertiv is in the data center industry and, in 2023 and 2024, that means the stock is red-hot. Shares are up 327% over the last year and have tacked on 26.5% year-to-date.
Earnings are expected to jump 228% in 2023 and another 27.6% in 2024 but Vertiv has not yet reported fourth quarter results. It has beat the last 3 quarters.
Vertiv trades with a forward P/E of 26.6. That is among the cheaper P/Es of the 5 stocks in this podcast.
Will there be more upside in Vertiv after the earnings report?
What Else do you Need to Know About Buying on the All-Time High?
Tune into this week’s podcast to find out.
[In full disclosure, Tracey owns shares of VRT in Zacks Value Investor portfolio and in her own personal portfolio.]
Why Haven’t You Looked at Zacks' Top Stocks?
Since 2000, our top stock-picking strategies have blown away the S&P's +7.0 average gain per year. Amazingly, they soared with average gains of +44.9%, +48.4% and +55.2% per year.
Today you can access their live picks without cost or obligation.
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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.