The Zacks Analyst Blog Highlights NVIDIA, BlackRock, Charles Schwab, HIVE Digital Technologies and Block
For Immediate Release
Chicago, IL – August 28, 2023 – 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: NVIDIA Corporation's NVDA, BlackRock, Inc. BLK, The Charles Schwab Corporation SCHW, HIVE Digital Technologies Ltd. HIVE, and Block, Inc. SQ
Here are highlights from Friday’s Analyst Blog:
2 Crypto Stocks to Watch as Bitcoin Stages a Comeback
The price of Bitcoin (BTC) has been trading within a narrow range in August as volatility this time around is significantly low due to traders going on holiday until Labor Day.
However, the price of Bitcoin lately bounced back from its trough of below $25,500, the lowest level since mid-June, touched last week. It is now holding above the psychological level of $26,000 over the past 24 hours.
So, what's behind the Bitcoin rally? Traditionally, the price of Bitcoin is dependent on the performance of the tech-heavy Nasdaq 100 stock index. This is because both tech stocks and cryptocurrencies are considered to be risky assets.
Now, NVIDIA Corporation's current blowout earnings have not only lifted the mood among investors to place bets on tech stocks but also given cryptos, including the price of Bitcoin a lift (read more: Nvidia & 2 Other AI Stocks You'll Regret Not Buying Soon).
The long-dated Treasury yield, meanwhile, has fallen. The 10-year Treasury yield, after hitting its highest level in more than 15 years earlier in the week, declined to 4.18% on Aug 24.
Growing concerns about a "hard landing," or in other words, the Federal Reserve not being able to tame inflation without causing an economic slump, has put pressure on bond yield. After all, the Fed's move to curtail inflation has impacted both the manufacturing and services side of the economy adversely. This, in turn, is spurring bets that the central bank will be compelled to remain accommodative.
The possibility of a pause in interest rate hikes in the upcoming meetings bodes well for high-risk assets, including digital coins. The CME FedWatch Tool lately shows that around 80.5% of market participants do not anticipate the Fed to raise interest rates in September.
Furthermore, interest among financial bigwigs in crypto is likely to push the price of Bitcoin, along with other digital coins, higher shortly. BlackRock, Inc. has appealed to regulators to create a spot Bitcoin ETF, which will increase retail participation. Similarly, The Charles Schwab Corporation is backing a new exchange called EDX Markets.
The price of Bitcoin is also dependent on its halving cycles. Bitcoin's halving event is due next year when the supply of the world's numero uno cryptocurrency will be lowered leading to a boost in its price. Thus, astute investors should now keep a tab on companies that can make money by capitalizing on Bitcoin's current upsurge, and growth prospects.
Primary among them is the Bitcoin mining firm HIVE Digital Technologies Ltd. HIVE Blockchain's shares have soared 138.9% so far this year, while the broader S&P 500 Index has gained 16.9% in the same period.
HIVE Blockchain's expected earnings growth rate for the current year is 72.3%. The Zacks Consensus Estimate for HIVE's current-year earnings has increased 39.4% over the past 60 days. HIVE Blockchain has a Zacks Rank #3 (Hold). You can see the complete list of today's Zacks #1 (Strong Buy) Rank stocks here.
Block, Inc., by the way, has invested significantly in Bitcoin. Per CoinGecko, Block has around $235 million in Bitcoin on its balance sheet. Its Cash App, where users can easily purchase and sell Bitcoin, has seen strong engagement in recent times.
Block has made rampant investments in blockchain technologies that empower the presence of cryptocurrency, including Bitcoin. Block's expected earnings growth rate for the current and next year are 68% and 36.3%, respectively. In reality, Block's projected earnings growth rate over the next five-year period is 30%. Block has a Zacks Rank #3.
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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.
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BlackRock, Inc. (BLK) : Free Stock Analysis Report
The Charles Schwab Corporation (SCHW) : Free Stock Analysis Report
NVIDIA Corporation (NVDA) : Free Stock Analysis Report
HIVE Digital Technologies Ltd. (HIVE) : Free Stock Analysis Report
