For Immediate Release
Chicago, IL – September 10, 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 Zoom Video Communications, Inc. ZM, Dropbox, Inc. DBX, Maxim Integrated Products, Inc. MXIM, Logitech International S.A. LOGI and Salesforce.com, Inc. CRM.
Here are highlights from Wednesday’s Analyst Blog:
Tech Rally to Continue Despite Market Plunge: 5 Solid Buys
On Sep 8, U.S. markets suffered heavily as technology shares came under pressure once again last week, following their worst selloff in more than five months. One of the major reasons behind the selloff was Tesla's failure in the last moment to enter the S&P 500. This took a toll on the other tech stocks as well as the broader market, with all major indexes ending the day in the red.
The biggest casualties on Tuesday were the big tech companies, declining more than 3.5% each. That said, technology was driving the market rally since mid-March and was one of the least affected sectors during the peak of the coronavirus pandemic. Given the increasing dependence on technology during the pandemic, it is likely that the tech rally will continue despite the massive selloff witnessed for three days. This thus gives the perfect opportunity to those who failed earlier to invest their money in tech stocks.
Tech Stocks Suffer on Multiple Reasons
The tech rally came to a halt last week and continued into Tuesday, with some of the biggest players feeling the maximum heat. All three major indexes ended in red. The Dow shed 632.4 points, declining 2.3%, while the S&P 500 slipped 2.8% to 3,331.8 points. Also, the tech-heavy Nasdaq dropped 4.1% to end the day at 12,056.4 points.
The tech-heavy Nasdaq Composite dropped 3.3% last week to end Friday at 11,313.1, its biggest weekly decline since March. Investors, who had been pinning their hopes on a quick recovery once the economy reopened, dumped stocks on fresh worries of a surge in coronavirus cases particularly in two of the biggest emerging economies — India and Brazil.
Also, some parts of the United States have been reporting a rise in coronavirus cases. Also, comments from President Donald Trump at the White House on Monday, in which he vowed to significantly reduce the country's economic ties with China, weighed on investors’ sentiments.
Tech Stocks Hit Hard
One of the biggest victims over the past three sessions has been the tech stocks. The big five tech companies which were responsible for the market rally since mid-March took a massive hit. Apple was the biggest casualty, with its shares plummeting more than 6.7%. Also, shares of Amazon and Facebook plummeted 64.4 and 4.1%, respectively. Shares of Microsoft declined 5.4%, while Google slumped 3.6%.
However, the coronavirus pandemic has seen an increasing number of people getting dependent on technology, as working and learning remotely and shopping online have become the new normal. This has seen the world becoming cloud-dependent and companies shifting data and information to technological and digital platforms to safely remain afloat.
It thus can be said that the selloff is temporary and the tech rally is likely to continue. The Technology Select Sector SPDR’s 23% year-to-date return is a testimony to the fact.
The technology selloff is just temporary, with the rally expected to resume soon. In fact, now is an ideal time for those who missed out on the opportunity to invest in the lucrative tech stocks. We have shortlisted four tech stocks that are sure to benefit from soaring demand in the coming months.
Zoom Video Communications, Inc.’s cloud-native unified communications platform, which combines video, audio, phone, screen sharing and chat functionalities, makes remote-working and collaboration easy.
The company’s expected earnings growth rate for the current year is more than 100%. The Zacks Consensus Estimate for current-year earnings has improved 78% over the past 60 days. Zoom Video sports a Zacks Rank #1 (Strong Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.
Dropbox, Inc. is a service company. It offers a platform which enables users to store and share files, photos, videos, songs and spreadsheets.
The company’s expected earnings growth rate for the current year is 54%. The Zacks Consensus Estimate for current-year earnings has improved 4.1% over the past 60 days. Dropbox carries a Zacks Rank #2 (Buy).
Logitech International S.A.is a global leader in peripherals for personal computers and other digital platforms, which develops and markets innovative products in PC navigation, Internet communications, digital music, home-entertainment control, video security, interactive gaming and wireless devices.
The company’s expected earnings growth rate for the current year is 16.3%. The Zacks Consensus Estimate for current-year earnings has improved 10.6% over the past 60 days. Logitech has a Zacks Rank #2.
Maxim Integrated Products, Inc.has a broad product portfolio that includes analog-to-digital converters, amplifiers and comparators, communications devices, data converters and management components, sensors and wireless products.
The company’s expected earnings growth rate for the current year is 9.7%. The Zacks Consensus Estimate for current-year earnings has improved 12.1% over the past 60 days. Maxim Integrated Products has a Zacks Rank #2.
Salesforce.com, Inc.acquired Bonobo AI, a firm using automated analysis of customer phone calls, texts and chats to deliver actionable insights. This fits perfectly with Salesforce Einstein, the company's AI-powered software that uses data to identify previously unseen business patterns, deliver the hottest sales leads, predict what marketing copy will perform best and generally optimize how businesses operate and convert.
The company’s expected earnings growth rate for the current year is 25.1%. The Zacks Consensus Estimate for current-year earnings has improved 25.9% over the past 60 days. The company carries a Zacks Rank #1.
Zacks’ Single Best Pick to Double
From thousands of stocks, 5 Zacks experts each picked their favorite to gain +100% or more in months to come. From those 5, Zacks Director of Research, Sheraz Mian hand-picks one to have the most explosive upside of all.
With users in 180 countries and soaring revenues, it’s set to thrive on remote working long after the pandemic ends. No wonder it recently offered a stunning $600 million stock buy-back plan.
The sky’s the limit for this emerging tech giant. And the earlier you get in, the greater your potential gain.
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Logitech International S.A. (LOGI) : Free Stock Analysis Report
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