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Zacks Market Edge Highlights: Amazon, Tesla, Beyond Meat, Ferrari and Tilray
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For Immediate Release
Chicago, IL – February 6, 2018 – 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/750662/tesla-euphoria-signal-of-a-market-top)
Tesla Euphoria: Signal of a Market Top?
Welcome to Episode #211 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 the incredible run in Tesla’s shares over the last month and whether it signals at “top” in this stock market rally.
Tesla shares have rallied over 100% in the last month as analysts have raised 2020 and 2021 earnings estimates on hopes that Tesla’s earnings are about to soar.
Price targets have also been raised sharply, with the stock actually surpassing some of those recent targets within a matter of days.
Some are calling it euphoria. Others see it as a sign that the bull market has gotten too hot to handle.
Comparisons to 1998-1999’s Bull Market
Many Baby Boomer and GenX investors may be feeling déjà vu right now, with memories of the dot-com bubble and Internet boom, as Tesla takes out the higher price targets.
Amazon was once the target of sharply higher upgrades.
Maggie Mahar’s “Bull! A History of the Boom, 1982-1999” gives a play-by-play about then Oppenheimer Internet stock analyst, Henry Blodgett, and his now infamous “call” on Amazon (AMZN - Free Report) in December 1998.
Earlier in 1998, he had a price target on the company of $150 which the shares quickly surpassed.
Amazon was one of the darling stocks of the Internet boom, although it had no earnings. Analysts struggled with how to model future earnings and worried about valuation.
On Dec 16, 1998, Blodgett released his $400 price target on Amazon, which subsequently jumped 20% that day to $289. The feeding frenzy was on.
By Jan 6, 1999, just a few weeks after the initial call, the shares blew past Blodgett’s $400 price target with ease.
Sound familiar?
Tesla Valuations
But IS Tesla (TSLA - Free Report) different from the Internet stock craze of 1999?
Tesla is now trading with a forward P/E of 100. Beyond Meat (BYND - Free Report) , another trading favorite, is trading with a forward P/E of 266.
Car company Ferrari (RACE - Free Report) has outperformed as well. It has seen its shares jump 198% since it’s 2016 IPO. It’s not cheap, trading at 38x forward earnings.
Other stocks in recent years have also had euphoric climbs like Tilray (TLRY - Free Report) , which was up 856% in just 3 months in 2018.
Is Tesla really a signal that we’re near the top?
Find out the answer to this question, and more, on this week’s podcast.
[In full disclosure, the author of this article owns shares of AMZN in her personal portfolio.]
5 Stocks Set to Double
Each was hand-picked by a Zacks expert as the #1 favorite stock to gain +100% or more in 2020. Each comes from a different sector and has unique qualities and catalysts that could fuel exceptional growth.
Most of the stocks in this report are flying under Wall Street radar, which provides a great opportunity to get in on the ground floor.
Zacks Investment Research is under common control with affiliated entities (including a broker-dealer and an investment adviser), which may engage in transactions involving the foregoing securities for the clients of such affiliates.
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: Amazon, Tesla, Beyond Meat, Ferrari and Tilray
For Immediate Release
Chicago, IL – February 6, 2018 – 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/750662/tesla-euphoria-signal-of-a-market-top)
Tesla Euphoria: Signal of a Market Top?
Welcome to Episode #211 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 the incredible run in Tesla’s shares over the last month and whether it signals at “top” in this stock market rally.
Tesla shares have rallied over 100% in the last month as analysts have raised 2020 and 2021 earnings estimates on hopes that Tesla’s earnings are about to soar.
Price targets have also been raised sharply, with the stock actually surpassing some of those recent targets within a matter of days.
Some are calling it euphoria. Others see it as a sign that the bull market has gotten too hot to handle.
Comparisons to 1998-1999’s Bull Market
Many Baby Boomer and GenX investors may be feeling déjà vu right now, with memories of the dot-com bubble and Internet boom, as Tesla takes out the higher price targets.
Amazon was once the target of sharply higher upgrades.
Maggie Mahar’s “Bull! A History of the Boom, 1982-1999” gives a play-by-play about then Oppenheimer Internet stock analyst, Henry Blodgett, and his now infamous “call” on Amazon (AMZN - Free Report) in December 1998.
Earlier in 1998, he had a price target on the company of $150 which the shares quickly surpassed.
Amazon was one of the darling stocks of the Internet boom, although it had no earnings. Analysts struggled with how to model future earnings and worried about valuation.
On Dec 16, 1998, Blodgett released his $400 price target on Amazon, which subsequently jumped 20% that day to $289. The feeding frenzy was on.
By Jan 6, 1999, just a few weeks after the initial call, the shares blew past Blodgett’s $400 price target with ease.
Sound familiar?
Tesla Valuations
But IS Tesla (TSLA - Free Report) different from the Internet stock craze of 1999?
Tesla is now trading with a forward P/E of 100. Beyond Meat (BYND - Free Report) , another trading favorite, is trading with a forward P/E of 266.
Car company Ferrari (RACE - Free Report) has outperformed as well. It has seen its shares jump 198% since it’s 2016 IPO. It’s not cheap, trading at 38x forward earnings.
Other stocks in recent years have also had euphoric climbs like Tilray (TLRY - Free Report) , which was up 856% in just 3 months in 2018.
Is Tesla really a signal that we’re near the top?
Find out the answer to this question, and more, on this week’s podcast.
[In full disclosure, the author of this article owns shares of AMZN in her personal portfolio.]
5 Stocks Set to Double
Each was hand-picked by a Zacks expert as the #1 favorite stock to gain +100% or more in 2020. Each comes from a different sector and has unique qualities and catalysts that could fuel exceptional growth.
Most of the stocks in this report are flying under Wall Street radar, which provides a great opportunity to get in on the ground floor.
Today, See These 5 Potential Home Runs >>.
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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.