For Immediate Release
Chicago, IL – June 17, 2020 – 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: Fortinet FTNT, Zoom Video Communications ZM, Zscaler ZS, Okta OKTA and Synopsys SNPS.
Here are highlights from Tuesday’s Analyst Blog:
5 Tech Growth Stocks to Buy as Nasdaq Stages Comeback
The Nasdaq composite climbed 1.43% to close at 9,726.02 on Jun 15. The Federal Reserve’s announcement of corporate bond-buying program in order to keep credit flowing provided a shot to the tech-heavy index as well as the S&P 500 and the Dow Jones industrial.
Notably, the Dow Jones Industrial gained 0.62% to close at 25,763.16, while the S&P 500 rose 0.83% to close at 3,066.59.
Markedly, all the three major indices witnessed sharp sell-off last week since March, primarily due to fears of a second coronavirus wave, Federal Reserve’s gloomy economic outlook and lofty stock valuations.
Nasdaq Rides on Tech, Reopening & Stimulus
Notably, since March, Nasdaq has surged on momentum in technology (particularly cloud computing), e-commerce and streaming stocks.
Moreover, unprecedented government stimulus and the reopening of U.S. and global economies post coronavirus-induced lockdowns and shelter-in-place guidelines are driving the rally.
Notably, the Fed has vowed to keep the benchmark short-term rates near zero through 2022 to make it easier for consumers as well as businesses to avail loans.
Moreover, per a Bloomberg report, the U.S. government is planning to pump in almost $1 trillion into infrastructure upheaval to boost the coronavirus-ravaged economy. Apart from roads and bridges, 5G wireless infrastructure and rural broadband are expected to be part of this massive investment.
Prospects Galore in Tech Space
The momentum in Nasdaq will continue, primarily fueled by changing consumer preference and behavior. We expect the work-from-home and online learning wave to keep demand for remote-working tech, cloud services and cybersecurity solutions high.
Further, rapid adoption of cloud computing along with the ongoing infusion of AI and machine learning as well as the accelerated deployment of 5G technology, blockchain, IoT, autonomous vehicles, AR/VR and wearables are major tailwinds.
Moreover, contactless payment and delivery gained significant traction during the outbreak. Further, an e-commerce boom prompted by changing consumer behavior is a key catalyst.
Here we pick five Nasdaq-listed stocks that apart from boasting strong fundamentals have a favorable combination of a Growth Score of A or B and a Zacks Rank #1 (Strong Buy) or 2 (Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.
Per the Zacks’ proprietary methodology, stocks with such a perfect mix of elements offer solid investment opportunities.
Notably, each of these stocks has a market cap of more than $5 billion and has outperformed the S&P 500 composite on a year-to-date basis.
Fortinet is benefiting from dominance in the Unified Threat Management (UTM) space, which is one of the fastest-evolving segments in the network security space. Moreover, this Zacks Rank #1 company is gaining from rising cyber-attack risks that are propelling demand for its FortiMail platform.
The $22.25-billion company has a Growth Score of A. The Zacks Consensus Estimate for its 2020 earnings stands at $2.81 per share, having moved 2.2% north over the past 30 days.
Zoom Video Communicationsis riding on the coronavirus-induced work-from-home and online-learning trend. The company has a market cap of $57.31 billion.
It currently flaunts a Zacks Rank of 1 and a Growth Score of A. The consensus mark for its fiscal 2021 earnings is pegged at $1.18 per share, having been raised 174.4% up in the past 30 days.
Zscaler benefits from steady rise in demand for cloud security as the work-from-anywhere trend gains impetus due to coronavirus-led workspace disruption. This Zacks #1 Ranked company’s focus on penetrating large enterprises along with a recurring revenue model are major growth drivers. This $13.25-billion company has a Growth Score of B.
The Zacks Consensus Estimate for its 2020 earnings is pegged at 17 cents per share, having been revised 13.3% upward in the past 30 days.
Okta is benefiting from robust demand for identity management services globally, triggered by the work-from-home wave. Notably, Okta Identity Cloud platform offers a suite of applications that manage and secure identities. The company has a market cap of $22.33 billion.
Okta currently carries a Zacks Rank #2 and a VGM Score of A. The Zacks Consensus Estimate for fiscal 2021 is pegged at a loss of 19 cents per share, having narrowed from a loss of 35 cents in the past 30 days.
Synopsys is riding on rising demand for advanced technology, design, IP and security solutions. Further, strong momentum in Fusion Design Platform and Verification Continuum platform is a key catalyst for this $27.04-billion company.
This Zacks Rank #2 stock has a Growth Score of B. The consensus mark for Synopsys’ fiscal 2020 earnings has inched up 1.2% to $5.27 per share over the past 30 days.
Just Released: Zacks’ 7 Best Stocks for Today
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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/performancefor information about the performance numbers displayed in this press release.
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Synopsys, Inc. (SNPS) : Free Stock Analysis Report
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Zoom Video Communications, Inc. (ZM) : Free Stock Analysis Report
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