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 Amazon.com, NVIDIA, Energy Transfer, The Progressive and Synopsys
Read MoreHide Full Article
For Immediate Release
Chicago, IL – March 4, 2024 – 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: Amazon.com Inc. (AMZN - Free Report) , NVIDIA Corp. (NVDA - Free Report) , Energy Transfer LP (ET - Free Report) , The Progressive Corp. (PGR - Free Report) and Synopsys Inc. (SNPS - Free Report) .
Here are highlights from Friday’s Analyst Blog:
Top 5 Momentum Stocks for March After an Impressive February
Wall Street ended an impressive February, marking the fourth consecutive positive month for all three major stock indexes. Last month, the Dow, the S&P 500 and the Nasdaq Composite – rallied 6.1%, 5.2% and 2.2%, respectively. In fact, the Dow posted its first four-month winning streak since May 2021.
U.S. stock markets have maintained their northward journey in 2024 after witnessing an astonishing 2023. Year to date, the Dow, the S&P 500 and the Nasdaq Composite – have advanced 3.4%, 7.5% and 9%, respectively.
Momentum Likely to Continue
The Department of Commerce reported that the U.S. economy grew at a clip of 3.2% in fourth-quarter 2023, well above the initial consensus estimate of 2%. The U.S. GDP rose 2.5% in 2023 compared with 1.9% in 2022. At the beginning of 2023, the consensus estimate for full-year GDP was 2%. On Feb 29, the Atlanta Fed GDPNow tracker forecast a 3% growth rate for first-quarter 2024, indicating, no chance of a near-term recession.
The headline personal consumption expenditure (PCE) price index rose 0.3% month over month in January and 2.4% annually. The December numbers were a rise of 0.1% month over month and 2.6% year over year.
The core PCE price index (excluding volatile food and energy items) rose 0.4% month over month and 2.8% annually in January, while the respective December numbers were 0.1% and 2.9%. Notably, the core PCE price index is the Fed’s most favored inflation gauge. The annual increase of the core PCE inflation rate in January was the lowest since February 2021.
Meanwhile, personal income increased unexpectedly by 1% in January compared with the consensus estimate as well as December’s reading of 0.3%. Personal consumption expenditure increased 0.2% in January in line with the consensus estimate. However, the reading of January reflects a sharp decline from a 0.7% rise in December. The personal savings rate in January came in at 3.8%.
The CME FedWatch currently shows a 66.3% probability of the first cut of the existing Fed funds rate in the June FOMC meeting. The interest rate derivative tool also shows two more rate cuts by the end of 2024.
Our Top Picks
At this stage, it will be prudent to invest in momentum stocks. We have narrowed our search to five U.S. corporate behemoths (market capital >$45 billion) that have strong momentum for February. These companies have strong potential for 2024 too.
Amazon.com Inc. has benefited from the momentum in Prime and AWS. The strengthening AWS services portfolio and its growing adoption rate contributed to the performance of AMZN. Ultrafast delivery services and an expanding content portfolio have been beneficial. Strengthening relationships with third-party sellers also favored the company. AMZN’s robust advertising business contributed as well.
Notably, improving Alexa skills along with robust smart home product offerings continue to act as a tailwind. AMZN’s strong global presence and solid momentum among small and medium businesses remain positive. Growing capabilities in grocery, pharmacy, healthcare and autonomous driving are the other catalysts. Also, its deepening focus on generative AI is a major plus.
Amazon has an expected revenue and earnings growth rate of 11.5% and 40%, respectively, for the current year. The Zacks Consensus Estimate for current-year earnings has improved 0.7% over the last seven days.
NVIDIA Corp. reported blockbuster fourth-quarter fiscal 2024 earnings. The strong results of NVIDIA in the recently reported quarter confirm this trend. Quarterly adjusted earnings of $5.16 per share, surpassed the Zacks Consensus Estimate of $4.55 and exceeded the year-ago period earnings of $0.88.
NVIDIA posted revenues of $22.1 billion for the quarter, outpacing the Zacks Consensus Estimate by 3%. This compares favorably with the year-ago revenues of $6.1 billion. NVIDIA reported these robust financial numbers despite a stiff decline in its business in the key market of China. The U.S. government has banned exports of high-end AI-based NVIDIA chips to China for security reasons.
What is most important is the guidance issued by management. Even after executing this tremendous success, management provided a rosy revenue guidance of $24 billion for the current quarter, suggesting an appreciation of 233.8% year over year.
NVIDIA has an expected revenue and earnings growth rate of 68.1% and 79.2%, respectively, for the current fiscal year (ending January 2025). The Zacks Consensus Estimate for current-year earnings has improved 4.1% over the last seven days.
Energy Transfer LP owns and operates diversified portfolios of energy assets primarily in the United States. ET is a publicly traded limited partnership whose core operations include complementary natural gas midstream, intrastate and interstate transportation and storage assets, crude oil, natural gas liquids and refined product transportation and terminalling assets, NGL fractionation and various acquisition and marketing assets.
Energy Transfer has an expected revenue and earnings growth rate of 19.9% and 18.4%, respectively, for the current year. The Zacks Consensus Estimate for current-year earnings has improved 10.3% over the last 30 days.
The Progressive Corp. continues to gain on higher premiums, given its compelling product portfolio, leadership position and strength in both Vehicle and Property businesses. Focus on becoming a one-stop insurance destination, catering to customers opting for a combination of home and auto insurance, augurs well for PGR’s growth.
Policies in force and retention ratio should remain healthy. Competitive pricing to retain current customers and address customer needs with new offerings should continue to drive policy life expectancy.
PGR’s fourth-quarter 2023 earnings per share of $2.96 beat the Zacks Consensus Estimate of $2.38. The bottom line improved 97.3% year over year. Operating revenues of $16.6 billion beat the Zacks Consensus Estimate by 3% and increased 23.2% year over year.
The Progressive has an expected revenue and earnings growth rate of 15.7% and 45.7%, respectively, for the current year. The Zacks Consensus Estimate for current-year earnings has improved 0.2% over the last seven days.
Synopsys Inc. is benefiting from solid design wins due to a robust product portfolio. Growth in the hybrid working trend is driving demand for bandwidth. Strong traction for SNPS’ Fusion Compiler product is boosting its top line.
The growing demand for advanced technology, design, IP and security solutions is also creating solid prospects for SNPS. Moreover, the rising impact of artificial intelligence, 5G, the Internet of Things and big data is driving investments in new computer and machine-learning architectures.
Synopsys has an expected revenue and earnings growth rate of 13.2% and 21.2%, respectively, for the current year (ending October 2024). The Zacks Consensus Estimate for current-year earnings has improved 0.2% over the last seven days.
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.
See More Zacks Research for These Tickers
Normally $25 each - click below to receive one report FREE:
Image: Bigstock
The Zacks Analyst Blog Highlights Amazon.com, NVIDIA, Energy Transfer, The Progressive and Synopsys
For Immediate Release
Chicago, IL – March 4, 2024 – 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: Amazon.com Inc. (AMZN - Free Report) , NVIDIA Corp. (NVDA - Free Report) , Energy Transfer LP (ET - Free Report) , The Progressive Corp. (PGR - Free Report) and Synopsys Inc. (SNPS - Free Report) .
Here are highlights from Friday’s Analyst Blog:
Top 5 Momentum Stocks for March After an Impressive February
Wall Street ended an impressive February, marking the fourth consecutive positive month for all three major stock indexes. Last month, the Dow, the S&P 500 and the Nasdaq Composite – rallied 6.1%, 5.2% and 2.2%, respectively. In fact, the Dow posted its first four-month winning streak since May 2021.
U.S. stock markets have maintained their northward journey in 2024 after witnessing an astonishing 2023. Year to date, the Dow, the S&P 500 and the Nasdaq Composite – have advanced 3.4%, 7.5% and 9%, respectively.
Momentum Likely to Continue
The Department of Commerce reported that the U.S. economy grew at a clip of 3.2% in fourth-quarter 2023, well above the initial consensus estimate of 2%. The U.S. GDP rose 2.5% in 2023 compared with 1.9% in 2022. At the beginning of 2023, the consensus estimate for full-year GDP was 2%. On Feb 29, the Atlanta Fed GDPNow tracker forecast a 3% growth rate for first-quarter 2024, indicating, no chance of a near-term recession.
The headline personal consumption expenditure (PCE) price index rose 0.3% month over month in January and 2.4% annually. The December numbers were a rise of 0.1% month over month and 2.6% year over year.
The core PCE price index (excluding volatile food and energy items) rose 0.4% month over month and 2.8% annually in January, while the respective December numbers were 0.1% and 2.9%. Notably, the core PCE price index is the Fed’s most favored inflation gauge. The annual increase of the core PCE inflation rate in January was the lowest since February 2021.
Meanwhile, personal income increased unexpectedly by 1% in January compared with the consensus estimate as well as December’s reading of 0.3%. Personal consumption expenditure increased 0.2% in January in line with the consensus estimate. However, the reading of January reflects a sharp decline from a 0.7% rise in December. The personal savings rate in January came in at 3.8%.
The CME FedWatch currently shows a 66.3% probability of the first cut of the existing Fed funds rate in the June FOMC meeting. The interest rate derivative tool also shows two more rate cuts by the end of 2024.
Our Top Picks
At this stage, it will be prudent to invest in momentum stocks. We have narrowed our search to five U.S. corporate behemoths (market capital >$45 billion) that have strong momentum for February. These companies have strong potential for 2024 too.
These stocks have seen positive earnings estimate revisions in the last 30 days. Each of our picks carries a Zacks Rank #1 (Strong Buy) and has a Momentum Score of A or B. You can see the complete list of today’s Zacks #1 Rank stocks here.
Amazon.com Inc. has benefited from the momentum in Prime and AWS. The strengthening AWS services portfolio and its growing adoption rate contributed to the performance of AMZN. Ultrafast delivery services and an expanding content portfolio have been beneficial. Strengthening relationships with third-party sellers also favored the company. AMZN’s robust advertising business contributed as well.
Notably, improving Alexa skills along with robust smart home product offerings continue to act as a tailwind. AMZN’s strong global presence and solid momentum among small and medium businesses remain positive. Growing capabilities in grocery, pharmacy, healthcare and autonomous driving are the other catalysts. Also, its deepening focus on generative AI is a major plus.
Amazon has an expected revenue and earnings growth rate of 11.5% and 40%, respectively, for the current year. The Zacks Consensus Estimate for current-year earnings has improved 0.7% over the last seven days.
NVIDIA Corp. reported blockbuster fourth-quarter fiscal 2024 earnings. The strong results of NVIDIA in the recently reported quarter confirm this trend. Quarterly adjusted earnings of $5.16 per share, surpassed the Zacks Consensus Estimate of $4.55 and exceeded the year-ago period earnings of $0.88.
NVIDIA posted revenues of $22.1 billion for the quarter, outpacing the Zacks Consensus Estimate by 3%. This compares favorably with the year-ago revenues of $6.1 billion. NVIDIA reported these robust financial numbers despite a stiff decline in its business in the key market of China. The U.S. government has banned exports of high-end AI-based NVIDIA chips to China for security reasons.
What is most important is the guidance issued by management. Even after executing this tremendous success, management provided a rosy revenue guidance of $24 billion for the current quarter, suggesting an appreciation of 233.8% year over year.
NVIDIA has an expected revenue and earnings growth rate of 68.1% and 79.2%, respectively, for the current fiscal year (ending January 2025). The Zacks Consensus Estimate for current-year earnings has improved 4.1% over the last seven days.
Energy Transfer LP owns and operates diversified portfolios of energy assets primarily in the United States. ET is a publicly traded limited partnership whose core operations include complementary natural gas midstream, intrastate and interstate transportation and storage assets, crude oil, natural gas liquids and refined product transportation and terminalling assets, NGL fractionation and various acquisition and marketing assets.
Energy Transfer has an expected revenue and earnings growth rate of 19.9% and 18.4%, respectively, for the current year. The Zacks Consensus Estimate for current-year earnings has improved 10.3% over the last 30 days.
The Progressive Corp. continues to gain on higher premiums, given its compelling product portfolio, leadership position and strength in both Vehicle and Property businesses. Focus on becoming a one-stop insurance destination, catering to customers opting for a combination of home and auto insurance, augurs well for PGR’s growth.
Policies in force and retention ratio should remain healthy. Competitive pricing to retain current customers and address customer needs with new offerings should continue to drive policy life expectancy.
PGR’s fourth-quarter 2023 earnings per share of $2.96 beat the Zacks Consensus Estimate of $2.38. The bottom line improved 97.3% year over year. Operating revenues of $16.6 billion beat the Zacks Consensus Estimate by 3% and increased 23.2% year over year.
The Progressive has an expected revenue and earnings growth rate of 15.7% and 45.7%, respectively, for the current year. The Zacks Consensus Estimate for current-year earnings has improved 0.2% over the last seven days.
Synopsys Inc. is benefiting from solid design wins due to a robust product portfolio. Growth in the hybrid working trend is driving demand for bandwidth. Strong traction for SNPS’ Fusion Compiler product is boosting its top line.
The growing demand for advanced technology, design, IP and security solutions is also creating solid prospects for SNPS. Moreover, the rising impact of artificial intelligence, 5G, the Internet of Things and big data is driving investments in new computer and machine-learning architectures.
Synopsys has an expected revenue and earnings growth rate of 13.2% and 21.2%, respectively, for the current year (ending October 2024). The Zacks Consensus Estimate for current-year earnings has improved 0.2% over the last seven days.
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.
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.