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The Zacks Analyst Blog Highlights Cisco Systems, Johnson Controls and Cenovus Energy
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For Immediate Release
Chicago, IL – July 6, 2026 – 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: Cisco Systems (CSCO - Free Report) , Johnson Controls International (JCI - Free Report) and Cenovus Energy (CVE - Free Report) .
Here are highlights from Thursday’s Analyst Blog:
Historically Huge AI Tech Boom: Zacks JULY Strategy
In terms of U.S. macroeconomic weight, the current AI infrastructure build-out has actually surpassed the peak of the late-1990s internet boom as a share of the total U.S. economy.
Tech investment alone has been responsible for the vast majority of real U.S. GDP growth over the last several quarters, demonstrating a much deeper concentration of capital than we saw twenty-six years ago.
What Are Current AI Cap-Ex Spending Levels (2026)?
Driven by the massive, relentless hyperscaler capex boom in artificial intelligence, data centers, and advanced computing infrastructure, total private non-residential tech and telecom investment is hovering around 5.5% to 6.0% of nominal U.S. GDP.
To put that into context: Total non-residential fixed investment (which includes heavy industrial equipment, commercial structures, warehouses, etc.) is roughly 14.1% of GDP.
Information processing equipment and software alone make up a staggering 40% to 42% of all business capital expenditure.
Was U.S. Total Internet Investment Around 15% at the Dot-Com Height?
No, it never approached 15% of total GDP — though it certainly felt like it given the market cap distortions of the era.
At the absolute peak of the dot-com/TMT (Technology, Media, and Telecom) bubble in 2000:
Tech and telecom investment peaked at roughly 4.0% to 4.2% of U.S. GDP (401.6 billion in nominal terms at the time).
The 15% Confusion: The 15% figure is closer to what total aggregate business investment across all sectors(including real estate structures, factories, aircraft, and heavy machinery) represents as a share of GDP. At the dot-com peak, total non-residential fixed investment hit an all-time high of roughly 13.5% to 14.0% of GDP.
II. Zacks July 2026 Sector/Industry/Company Telescope
June 30th, 2026 data show Info Tech remains dominant, at Very Attractive. Misc. Tech, Electronics and Computers-Office led. Semis ranked high this month, too.
Industrials stayed at Very Attractive.
Energy went to Attractive from Very Attractive; Oddly, Coal led this month. Health Care rose to Attractive. Medical Care did the trick.
Communication Services fell to Market Weight from Very Attractive. AI Telco Equipment group ranked high again.
Financials stayed Market Weight. Consumer Discretionary stayed at Market Weight.
Utilities stayed at Unattractive. Materials remained at Unattractive, too.
Consumer Staples fell all the way to Very Unattractive.
(1) Info Tech stayed Very Attractive. Misc. Tech, Electronics, and Computer-Office Equipment led.
Zacks #1 Rank (STRONG BUY): Cisco Systems
(2) Industrials stayed at Very Attractive. Business Products, Machinery, and Pollution Control look best.
Zacks #1 Rank (STRONG BUY): Johnson Controls International
(3) Energymoved to Attractive from Very Attractive. Coal led.
Zacks #1 Rank (STRONG BUY): Cenovus Energy
(4) Health Care rose to Attractive from Market Weight. Medical Care looked best.
(5) Communications Services fell to Market Weight from Attractive. Telco Equipment stayed strong, again. It is an “AI” group.
(6) Financials stayed Market Weight. Real Estate and Banks & Thrifts looked best.
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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 Cisco Systems, Johnson Controls and Cenovus Energy
For Immediate Release
Chicago, IL – July 6, 2026 – 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: Cisco Systems (CSCO - Free Report) , Johnson Controls International (JCI - Free Report) and Cenovus Energy (CVE - Free Report) .
Here are highlights from Thursday’s Analyst Blog:
Historically Huge AI Tech Boom: Zacks JULY Strategy
The following is an excerpt from Zacks Chief Strategist John Blank’s full Jul Market Strategy report To access the full PDF, click here.
I. U.S. Markets
An Upfront Takeaway:
In terms of U.S. macroeconomic weight, the current AI infrastructure build-out has actually surpassed the peak of the late-1990s internet boom as a share of the total U.S. economy.
Tech investment alone has been responsible for the vast majority of real U.S. GDP growth over the last several quarters, demonstrating a much deeper concentration of capital than we saw twenty-six years ago.
What Are Current AI Cap-Ex Spending Levels (2026)?
Driven by the massive, relentless hyperscaler capex boom in artificial intelligence, data centers, and advanced computing infrastructure, total private non-residential tech and telecom investment is hovering around 5.5% to 6.0% of nominal U.S. GDP.
To put that into context: Total non-residential fixed investment (which includes heavy industrial equipment, commercial structures, warehouses, etc.) is roughly 14.1% of GDP.
Information processing equipment and software alone make up a staggering 40% to 42% of all business capital expenditure.
Was U.S. Total Internet Investment Around 15% at the Dot-Com Height?
No, it never approached 15% of total GDP — though it certainly felt like it given the market cap distortions of the era.
At the absolute peak of the dot-com/TMT (Technology, Media, and Telecom) bubble in 2000:
Tech and telecom investment peaked at roughly 4.0% to 4.2% of U.S. GDP (401.6 billion in nominal terms at the time).
The 15% Confusion: The 15% figure is closer to what total aggregate business investment across all sectors(including real estate structures, factories, aircraft, and heavy machinery) represents as a share of GDP. At the dot-com peak, total non-residential fixed investment hit an all-time high of roughly 13.5% to 14.0% of GDP.
II. Zacks July 2026 Sector/Industry/Company Telescope
June 30th, 2026 data show Info Tech remains dominant, at Very Attractive. Misc. Tech, Electronics and Computers-Office led. Semis ranked high this month, too.
Industrials stayed at Very Attractive.
Energy went to Attractive from Very Attractive; Oddly, Coal led this month. Health Care rose to Attractive. Medical Care did the trick.
Communication Services fell to Market Weight from Very Attractive. AI Telco Equipment group ranked high again.
Financials stayed Market Weight. Consumer Discretionary stayed at Market Weight.
Utilities stayed at Unattractive. Materials remained at Unattractive, too.
Consumer Staples fell all the way to Very Unattractive.
(1) Info Tech stayed Very Attractive. Misc. Tech, Electronics, and Computer-Office Equipment led.
Zacks #1 Rank (STRONG BUY): Cisco Systems
(2) Industrials stayed at Very Attractive. Business Products, Machinery, and Pollution Control look best.
Zacks #1 Rank (STRONG BUY): Johnson Controls International
(3) Energymoved to Attractive from Very Attractive. Coal led.
Zacks #1 Rank (STRONG BUY): Cenovus Energy
(4) Health Care rose to Attractive from Market Weight. Medical Care looked best.
(5) Communications Services fell to Market Weight from Attractive. Telco Equipment stayed strong, again. It is an “AI” group.
(6) Financials stayed Market Weight. Real Estate and Banks & Thrifts looked best.
(7) Consumer Discretionary stayed at Market Weight. Publishing looked best. Again.
(8) Utilities stayed at Unattractive. Utility- Electric Power looked best.
(9) Materials stayed Unattractive. Building Products looked best.
(10) Consumer Staples moved to Very Unattractive from Market Weight. Agri-business and Beverages looked the best. Again.
III. Conclusion
There are two overvalued S&P500 sectors to be aware of: Info Tech (of course!), but also Industrials.
Keep that 2nd sector in mind.
Valuation corrections are long past overdue, for both sectors.
That’s it for me.
Enjoy the rest of my JULY Market Strategy report.
Warm Regards,
John Blank, PhD.
Zacks Chief Equity Strategist & Economist
Why Haven't You Looked at Zacks' Top Stocks?
Since 2000, our top stock-picking strategies have blown away the S&P's +7.7% average gain per year. Amazingly, they soared with average gains of +48.4%, +50.2% and +56.7% 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.