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Apple's Coronavirus Warning, Tesla Climbs & A Strong Buy Chip Stock - Free Lunch

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On today’s episode of Free Lunch here at Zacks, Associate Stock Strategist Ben Rains takes a look at Apple’s (AAPL - Free Report) coronavirus warning. We also dive into Tesla’s (TSLA - Free Report) continued climb and Walmart’s (WMT - Free Report) quarterly earnings results. The episode then ends with why Applied Materials, Inc. (AMAT) is a Zacks Rank #1 (Strong Buy) stock right now.

All three major U.S. indexes fell Tuesday after Apple warned Wall Street that it wouldn’t hit its revenue targets for the current quarter. The iPhone giant cited coronavirus setbacks in China on both the production and demand side, which sent AAPL stock down, as well as chip firms such as Broadcom (AVGO - Free Report) and Intel (INTC - Free Report) .

Despite the broader downturn, Tesla shares surged once again Tuesday. This continues the electric vehicle maker’s stellar over the last few months. And investors seem more than okay with the fact that Tesla recently announced plans to sell $2 billion worth of new stock, as CEO Elon Musk tries to ramp up production and expand internationally. 

On the earnings front, Walmart stock popped Tuesday morning even though its Q4 earnings fell short of estimates. WMT has expanded its e-commerce and delivery offerings alongside the likes of Target (TGT - Free Report) and others in order to meet consumer demand in the Amazon (AMZN - Free Report) age. 

The episode then ends with why Applied Materials is a Zacks Rank #1 (Strong Buy), within a highly-ranked semiconductor equipment industry that includes The Advanced Energy Industries, Inc. (AEIS - Free Report) and Lam Research Corporation (LRCX - Free Report) .

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