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: Exxon, Microsoft, Apple and Amazon.com
Read MoreHide Full Article
For Immediate Release
Chicago, IL –September 5, 2019 – 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: Exxon Mobil Corporation (XOM - Free Report) , Microsoft Corporation (MSFT - Free Report) , Apple Inc. (AAPL - Free Report) and Amazon.com, Inc. (AMZN - Free Report) .
Here are highlights from Wednesday’s Analyst Blog:
ExxonMobil Drops Out of Top 10 in S&P 500: Tech Stocks Shine
The hydrocarbon energy industry was recently dealt a major blow, with Exxon Mobil Corporation dropping from the S&P 500 Index’s top 10 companies, ending a nine-decade-long streak. This August, energy stocks climbed down the ranking list, giving way to technology stocks. Currently, the top 10 places are occupied by companies from technology, communications, health care and financial services. This marks a major event for the energy industry as a whole, which can shape the future of the market.
Gradual Decline of Energy Stocks
In terms of company rankings, a decade ago, ExxonMobil — the largest publicly-traded energy company — stayed at the top spot of the list for six straight years. The Zacks Rank #3 (Hold) company is now in the 12th spot, with its peer Chevron Corporation holding the 19th place. You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
Notably, energy stocks made up 25% of the index about four decades ago, which declined to 11.7% a decade ago. The sector now accounts for 4.4% of the index. If we look at the price performance, ExxonMobil gained only 0.6% year to date while the S&P 500 jumped 15.3%. The Oils-Energy sector fell 5.1% during this time period.
Factors Affecting Hydrocarbon Market
There are several factors that affected the energy sector, among which soft as well as volatile oil prices played spoilsports. With the shale-oil boom, the hydrocarbon market stayed oversupplied for a long time, partially offset by the Organization of the Petroleum Exporting Countries’ production-cut initiatives and Iranian sanctions from the Washington.
Moreover, concerns regarding future oil demand affected the sector to a significant extent. With developing countries like India, China and others expected to see a bleak economic growth rate in the coming years, demand for hydrocarbons is expected to decline further. This has put a lid on oil prices. Also, the trade war between Washington and Beijing has sparked concerns regarding oil demand.
Additionally, climate changes have triggered a drive toward renewable energy sources. Environmental campaigns have witnessed somewhat success with several major funds withdrawing from stocks in fossil fuels. Also, efficiency gain in wind, solar and other renewable and clean energy sources are working against the fossil-fuel industry. All these key factors compelled investors to dump oil stocks.
Tech Leads the Way
Currently, the top three spots are occupied by tech giants Microsoft Corporation, Apple Inc. and Amazon.com, Inc. Overall, the tech stocks have come a long way in the last few years supported by major breakthroughs. In the year-to-date period, the Zacks Technology sector jumped 18.7%, with Microsoft, Apple and Amazon.com gaining 33.9%, 30.4% and 19.2%, respectively.
With the energy industry losing its position and the technology industry coming to the forefront, the dynamics of the market are set to change in the coming years. The newfound strength in technology will likely help renewable energy sources see efficiency gain and cost reduction. Over time, it can lead to a further decline in the hydrocarbon market, while boosting investments in renewable energy sources.
Biggest Tech Breakthrough in a Generation
Be among the early investors in the new type of device that experts say could impact society as much as the discovery of electricity. Current technology will soon be outdated and replaced by these new devices. In the process, it’s expected to create 22 million jobs and generate $12.3 trillion in activity.
A select few stocks could skyrocket the most as rollout accelerates for this new tech. Early investors could see gains similar to buying Microsoft in the 1990s. Zacks’ just-released special report reveals 7 stocks to watch. The report is only available for a limited time.
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 http://www.zacks.com/performancefor 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: Exxon, Microsoft, Apple and Amazon.com
For Immediate Release
Chicago, IL –September 5, 2019 – 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: Exxon Mobil Corporation (XOM - Free Report) , Microsoft Corporation (MSFT - Free Report) , Apple Inc. (AAPL - Free Report) and Amazon.com, Inc. (AMZN - Free Report) .
Here are highlights from Wednesday’s Analyst Blog:
ExxonMobil Drops Out of Top 10 in S&P 500: Tech Stocks Shine
The hydrocarbon energy industry was recently dealt a major blow, with Exxon Mobil Corporation dropping from the S&P 500 Index’s top 10 companies, ending a nine-decade-long streak. This August, energy stocks climbed down the ranking list, giving way to technology stocks. Currently, the top 10 places are occupied by companies from technology, communications, health care and financial services. This marks a major event for the energy industry as a whole, which can shape the future of the market.
Gradual Decline of Energy Stocks
In terms of company rankings, a decade ago, ExxonMobil — the largest publicly-traded energy company — stayed at the top spot of the list for six straight years. The Zacks Rank #3 (Hold) company is now in the 12th spot, with its peer Chevron Corporation holding the 19th place. You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
Notably, energy stocks made up 25% of the index about four decades ago, which declined to 11.7% a decade ago. The sector now accounts for 4.4% of the index. If we look at the price performance, ExxonMobil gained only 0.6% year to date while the S&P 500 jumped 15.3%. The Oils-Energy sector fell 5.1% during this time period.
Factors Affecting Hydrocarbon Market
There are several factors that affected the energy sector, among which soft as well as volatile oil prices played spoilsports. With the shale-oil boom, the hydrocarbon market stayed oversupplied for a long time, partially offset by the Organization of the Petroleum Exporting Countries’ production-cut initiatives and Iranian sanctions from the Washington.
Moreover, concerns regarding future oil demand affected the sector to a significant extent. With developing countries like India, China and others expected to see a bleak economic growth rate in the coming years, demand for hydrocarbons is expected to decline further. This has put a lid on oil prices. Also, the trade war between Washington and Beijing has sparked concerns regarding oil demand.
Additionally, climate changes have triggered a drive toward renewable energy sources. Environmental campaigns have witnessed somewhat success with several major funds withdrawing from stocks in fossil fuels. Also, efficiency gain in wind, solar and other renewable and clean energy sources are working against the fossil-fuel industry. All these key factors compelled investors to dump oil stocks.
Tech Leads the Way
Currently, the top three spots are occupied by tech giants Microsoft Corporation, Apple Inc. and Amazon.com, Inc. Overall, the tech stocks have come a long way in the last few years supported by major breakthroughs. In the year-to-date period, the Zacks Technology sector jumped 18.7%, with Microsoft, Apple and Amazon.com gaining 33.9%, 30.4% and 19.2%, respectively.
With the energy industry losing its position and the technology industry coming to the forefront, the dynamics of the market are set to change in the coming years. The newfound strength in technology will likely help renewable energy sources see efficiency gain and cost reduction. Over time, it can lead to a further decline in the hydrocarbon market, while boosting investments in renewable energy sources.
Biggest Tech Breakthrough in a Generation
Be among the early investors in the new type of device that experts say could impact society as much as the discovery of electricity. Current technology will soon be outdated and replaced by these new devices. In the process, it’s expected to create 22 million jobs and generate $12.3 trillion in activity.
A select few stocks could skyrocket the most as rollout accelerates for this new tech. Early investors could see gains similar to buying Microsoft in the 1990s. Zacks’ just-released special report reveals 7 stocks to watch. The report is only available for a limited time.
See 7 breakthrough stocks now>>
Media Contact
Zacks Investment Research
800-767-3771 ext. 9339
support@zacks.com
http://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 http://www.zacks.com/performancefor information about the performance numbers displayed in this press release.