Zacks Investment Ideas feature highlights: Nvidia, First Solar, Intuitive Surgical, Dexcom and Asure Software
For Immediate Release
Chicago, IL – April 21, 2023 – Today, Zacks Investment Ideas feature highlights Nvidia NVDA, First Solar FSLR, Intuitive Surgical ISRG, Dexcom DXCM and Asure Software ASUR.
Riding the Wave: 3 Industry Groups Making a Splash
Thus far this year, small-cap stocks and large-cap tech have stolen the show – for differing reasons. Small caps have garnered attention due to their relative weakness. The demise of Silicon Valley Bank has thrown doubt at many stocks. Conversely, big-cap tech has made an impact for the opposite reason. QQQ is up nearly 20% while underlying components such as Nvidia are higher by a whopping 91% or more.
One common phenomenon in the stock market is industry group rotation, which refers to the shifting of investor preferences from one industry to another. Though the trends mentioned above show little signs of slowing, they will eventually diverge from the trend and other industries will take the limelight. Investors should be prepared should that happen. Even if it does not happen right away, it also makes sense to diversify. Today we will discuss 3 industries (and stocks within them) worth watching:
Solar Energy
The clean energy sector has been on a growth trajectory for years as geopolitical conflicts have disrupted the supply of fossil fuels, world governments push for clean energy agendas, and solar technology improves and becomes more efficient. Investors should stick to the group's leading stock which is Zacks Rank #2 (Buy) stock First Solar. FSLR is currently set up in a good-looking base structure ahead of its earnings which are due April 27th.
Medical Products
The medical products industry often flies under the radar. However, the group has some attractive characteristics that make it worth investing in. Generally, companies within this group tend to be recession-proof, stable, and offer long-term growth. Wednesday, surgical robotics maker Intuitive Surgical injected life into the industry after it beat earnings expectations. The stock shot higher by more than 10% in the session on expanding volume.
Though the stock is extended in price at this juncture, investors may want to turn their attention to glucose monitoring system maker Dexcom.DXCM is breaking out of a multi-month base ahead of its April 27th EPS report.
Enterprise Software
It's easy to see why the Internet-Software group is a top 25% group. Whenever I see multiple stocks in an industry breaking out simultaneously, my eyes light up. It is difficult to find an industry with more momentum than the enterprise software group. Enterprise software companies like Asure Software broke out last week and are up 15% since.
Bottom Line
Markets have been known to have periods of "nasty" industry group rotations, catching investors off guard. Investors should look at the three under-the-radar groups above as ways of diversifying into other parts of the market.
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First Solar, Inc. (FSLR) : Free Stock Analysis Report
Intuitive Surgical, Inc. (ISRG) : Free Stock Analysis Report
NVIDIA Corporation (NVDA) : Free Stock Analysis Report
DexCom, Inc. (DXCM) : Free Stock Analysis Report
Asure Software Inc (ASUR) : Free Stock Analysis Report
