for immediate RELEASE
CHICAGO, IL – August 29, 2023 – Zacks.com announces the list of stocks featured in the Analyst Blog. Every day, Zacks Equity Research analysts discuss the latest news and events affecting the stock and financial markets. Stocks recently featured in the blog include: NVIDIA Corp. NVDA, Workday Inc. WDAY, Super Micro Computer Inc. SMCI, Paylocity Holding Corp. PCTY and Manhattan Associates Inc. MANH.
Here are highlights from Monday’s analyst blog:
5 Nasdaq stocks to buy when the index returns to the green last week
Wall Street bounced back in the first seven months of 2023 after a very disappointing 2022. The rally was mainly led by growth stocks, especially technology stocks. As a result, the tech-heavy Nasdaq Composite Index played a leading role in enabling US stock markets to resume their northward journey.
Furthermore, the tech rally in the first half was led by a heavy emphasis on artificial intelligence (AI), especially generative AI. Rapid access to digital technologies and the internet led to significant adoption of AI around the world during the lockdown.
However, growth stocks, mainly technology, suffered losses in August as a lot of bad news hit Wall Street. On August 1, Fitch Ratings downgraded the US long-term foreign exchange issuer default rating to AA+ from AAA. On August 15, Fitch Ratings warned that it could downgrade more than a dozen major US banks in the near future.
On August 8, Moody’s Investors Service cut the ratings of 10 small and medium-sized US banks by one notch. The rating agency has put six large banks under review for a possible downgrade. Moody’s has also changed its rating outlook for 11 banks to negative. On August 21, S&P Global cut the credit ratings of some regional lenders with high commercial real estate exposure.
In addition, Fed Chairman Jerome Powell’s warnings of further interest rate hikes, along with a prolonged economic slowdown in China, have raised questions about global economic growth and the Fed’s ability to slow down the economy.
However, the strong fundamentals of the US economy ease concerns of a recession in the near term. Additionally, blockbuster earnings results in the recently reported quarter from NVIDIA, the largest global maker of generic AI chipsets, have raised investor expectations that the market for AI will show strong growth over the coming decade.
As a result, technology stocks rallied again. The tech-heavy Nasdaq Composite gained 2.3% last week, ending a three-weak losing streak. Year to date, the tech-rich index is up nearly 30%.
our top pick
We’ve selected five Nasdaq Composite-listed technology stocks with strong outlooks for the rest of 2023. These stocks have seen revision to positive earnings estimates in the last 30 days. Each of our picks sports a Zacks Rank #1 (Strong Buy). you can see Full list of today’s Zacks #1 ranked stocks here,
Nvidia Corporation Reported fiscal 2024 second quarter adjusted earnings per share of $2.70, which exceeded the Zacks consensus estimate of $2.09. This compares to earnings per share of $0.51 a year ago.
NVDA reported revenue of $13.51 billion for the quarter, beating the Zacks Consensus Estimate by 20.89%. This compared to revenue of $6.7 billion a year earlier. Management estimates third-quarter revenue to be $16 billion, compared with the Zacks consensus estimate of $12.34 billion.
Over the years, the worldwide leader in NVDA has shifted its focus from PC graphics to AI-based solutions that support high-performance computing, gaming and virtual reality platforms. NVDA’s A100 and H100 AI chips are used to build and run AI applications, including OpenAI’s ChatGPT.
NVIDIA’s expected revenue and earnings growth rates for the current year (ending January 2024) exceed 62.9% and 100%, respectively. The Zacks Consensus Estimate for current year earnings has improved by 12.8% over the past seven days.
Workday Inc. The human capital and financial management portfolio continues to deliver gains at a solid pace. WDAY’s cloud-based business model is rapidly gaining in popularity. The integration of generic AI into Workday products and the emphasis on developing various AI-powered applications to drive greater value is a counterproductive one.
WDAY’s global presence is expected to be strengthened by the expansion of its partnership with Elite to provide a unified payroll experience to clients across Europe. In addition, WDAY is expanding its portfolio beyond core HCM solutions into the financial sector and customizing them for diverse industries and verticals.
WDAY’s expected revenue and earnings growth rates for the current year (ending January 2024) are 15.3% and 46.2%, respectively. The Zacks Consensus Estimate for current year earnings has improved 0.6% over the last 30 days.
Super Micro Computer Inc. designs, develops, manufactures and sells energy-efficient, application-optimized server solutions based on the x86 architecture. SMCI’s solutions include a range of rack mount and blade server systems as well as components. SMCI emphasizes superior product design and uncompromising quality control to produce industry-leading server-boards, chassis and server systems.
The expected revenue and earnings growth rates of Super Micro Computer for the current year (ending June 2024) are 37% and 31.6%, respectively. The Zacks Consensus Estimate for current year earnings has improved by 53.6% over the past 30 days.
Pelocity Holding Corporation Customers with fewer than 50 employees are benefiting from the growing acceptance of its solutions. Healthy momentum in PCTY’s core and the upper end of the market is a tailwind. The release of the Learning Management System and Community Portal, which received positive feedback from customers, is encouraging.
PCTY’s regular investment in product innovation as well as technology upgrades will continue to boost its top line. Adding on-demand payments to its portfolio is likely to win more customers. We expect PCTY revenue to grow at a CAGR of 23.4% over FY2023-2025.
Pelocity Holding’s expected revenue and earnings growth rates for the current year (ending June 2024) are 19.9% and 8.4%, respectively. The Zacks Consensus Estimate for current year earnings has improved by 5.9% over the past 30 days.
Manhattan Associates Inc. Develops, sells, deploys, services and maintains software solutions to manage supply chains, inventory and omni-channel operations. MANH offers a portfolio of Manhattan scale, logistics execution solutions that provide trading partner management, yard management, optimization, warehouse management and transportation execution services, and Manhattan Active, a set of enterprise and omnichannel solutions.
Manhattan Associates’ expected revenue and earnings growth rates for the current year are 16.1% and 12%, respectively. The Zacks Consensus Estimate for current year earnings has improved by 3.3% over the past 30 days.
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Past performance is no guarantee of future results. There is a possibility of loss in any investment, This material is being provided for informational purposes only and does not constitute investment, legal, accounting or tax advice, or a recommendation to buy, sell or hold a security. No investment is being made as a recommendation or advice as to whether any investment is suitable for any particular investor. It should not be assumed that any investment in the securities, companies, sectors or markets identified and described was or will be profitable. All information provided here is current as of the date and is subject to change without notice. Any view or opinion expressed may not reflect the views of the firm as a whole. Jax Investment Research does not engage in investment banking, market making or asset management activities of any securities. These returns are from a hypothetical portfolio consisting of stocks with Zacks Rank = 1 that was rebalanced monthly with zero transaction costs. These are not the returns of an actual portfolio of stocks. The S&P 500 is an unmanaged index. See information about the performance numbers displayed in this press release.
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Source: finance.yahoo.com
