There’s More to the US than Tech Stocks

Christel Deskins

Tech stocks
Tech stocks

The tech success story is an all-consuming one for investors, which reached further dizzying heights when Apple became the first listed company to reach a staggering valuation of $2 trillion.

The sector as a whole has been given a new lease of life by lockdown shopping, headlines about entrepreneurs such as Amazon founder Jezz Bezos’s $100 billion fortune and Apple’s bid to become the world’s first $2 trillion company. After such a strong run, seven tech stocks, including Facebook (FB.) and Microsoft (MSFT), now make up a quarter of the S&P 500 index.

To many investors, it seems like tech is the only game in town – but there must surely be more the huge US market than technology. We’ve asked some US fund managers where they see the opportunities beyond the FAANGs.

Healthcare

US healthcare, how to fund it and who pays for it, has long been

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5 Momentum Stocks Flying High in August, Promising More Upside

Christel Deskins

Wall Street is having a dream run since Mar 23, defying coronavirus-induced economic woes, and August is no exception. All the three major stock indexes — the Dow, the S&P 500 and the Nasdaq Composite — have rallied 50% or more from their recent low levels recorded on Mar 23.

The  S&P 500 is just 0.3% away from its all-time high recorded on Feb 19 and the Nasdaq Composite crossed the 11,000 landmark on Aug 5, having posted 33 fresh highs year to date. The Dow is approaching 28,000 and is just 2.4% away from becoming green year to date.

The stock market rally is continuing this month even though the U.S. Congressional negotiations regarding the size and scope of the second round of fiscal stimulus remains mired in stalemate. Meanwhile, several momentum stocks with a top Zacks Rank have provided more than 15% returns in the past month. These

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Super Tiny Stocks Staging Bigger Rebound Rally Than Megacap Tech

Christel Deskins

(Bloomberg) — Tech behemoths have been Wall Street’s obsession all year. But the tiniest of stocks have surreptitiously been making a comeback — in a big way.

The Russell Microcap Index, whose members have a value of $300 million on average, is up more than 60% from this year’s stock-market lows, outperforming both the tech-heavy Nasdaq 100 and the S&P 500. The tiny-stock gauge is having its best month relative to the U.S. equity benchmark since September 2017.

“The good-looking big boys and girls have been touted as the only game in town this year. These large, domestic, safe, easily recognized, fast-growing, and sexy stocks have been the ticket,” wrote Jim Paulsen, chief investment strategist at the Leuthold Group. “But, like the S&P 500 this year, the really tiny — those Mighty Microcaps — have shown their ‘FAANGs!’” he said, referring to the popular Facebook Inc., Amazon.com Inc., Apple Inc.,

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Time to Gamble on Sports Betting Stocks & ETF?

Christel Deskins

  • (1:10) – The Legalization Of Sports Betting
  • (6:35) – Understanding What Sports Betting Really Is
  • (10:00) – What Kind Of Growth Can This Industry Expect?
  • (13:15) – Roundhill Investments Sports Betting ETF: BETZ
  • (22:40) – The Impact Of The Coronavirus On Sports
  • (26:30) – Roundhill Investments Esports ETF: NERD
  • (29:10) – Episode Roundup: Podcast@Zacks.com

In this episode of ETF Spotlight, I speak with Will Hershey, CEO at Roundhill Investments. We talk about sports betting and the Roundhill Sports Betting & iGaming ETF BETZ.

In 2018, the Supreme Court cleared the way for states to legalize sports betting. Sports betting is now legal in many states and some states have passed bills or have active bills. Most American people support the legalization of sports betting.

Goldman Sachs expects sports betting to become a $28 billion industry and iGaming or online gambling to become a $9.5 billion industry.

BETZ, the first and

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Buy These 5 Stocks Before It’s Too Late

Christel Deskins

Earnings season is a great time to dive into stocks because there’s a certain amount of certainty that comes from all the related discussions.

This is when our expectations about the just-concluded quarter are met, exceeded or missed. It’s also when we get a somewhat clearer picture about the next quarter and at times, also the year. So jumping into stocks that have announced resounding beats and encouraging outlooks are a no-brainer.

It also pays to hang around a couple of days to see what impression brokers have come away with. And the best way that is captured is in the estimate revisions. So if management has good things to say about the company and its future and brokers come back with higher estimates, you know for sure that good things are going on.  

But since you’ve waited for the broker reports, some of the good news is likely to

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7 Penny Stocks for the Valiant Investor

Christel Deskins

Penny stocks are notoriously risky investments because they’re often speculative in nature. With that said, investors who are willing to take on a relatively high level of risk could find them to be a good way to play the current market uncertainty. With the novel coronavirus still looming and equity prices climbing ever higher, looking for penny stocks to buy could be a good way to find value.

Laura Gonzalez, Ph.D, an Associate Professor of Finance at California State University, Long Beach, said penny stocks deliver the most value when they’re more-or-less undiscovered. As trading volume increases, the wider market starts to pay attention. 

Historical data shows that penny stocks receive less attention from investors, are oftentimes undervalued and underpriced, and therefore poised to deliver superior returns. When superior returns materialize, analysts and other investors notice them, but [the] attention is not sustained for a long time.

InvestorPlace – Stock

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Stocks rise, Nasdaq outperforms as strong earnings offset economic fears

Christel Deskins

Stocks extended gains Friday morning, with the Nasdaq jumping about 1%, after a slew of better than expected corporate earnings results from major tech firms. Each of Facebook, Amazon, Apple and Netflix hit record highs shortly after market open.

Tech titans Facebook (FB), Amazon (AMZN), Apple (AAPL), and Alphabet (GOOG, GOOGL), each reported quarterly results that blew past estimates Thursday evening, affirming these companies’ pandemic-era dominance following a steep run-up in tech stocks over the past couple months.

Facebook grew its revenue 11% over last year as its advertising business remained resilient despite the pandemic-related slowdown across the broader ad industry. Alphabet’s ad business was hit more prominently by that trend, with Google ad revenue falling 8% over last year, though Alphabet’s overall top- and bottom-line results still topped estimates. Facebook’s daily active users jumped 13% to 1.79 billion and monthly active users rose 12% to 2.7% billion as the

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4 Chinese Tech Stocks That are Bouncing Back

Christel Deskins

People walking in Shanghai
People walking in Shanghai

China appears to be recovering well from the coronavirus-induced economic slump. Shaking off its 6.8% contraction in the first quarter resulting from the pandemic lockdown, the Asian economic giant’s economy is picking up faster than Europe and the US. Indeed, the Shanghai Composite Index rose 5.7% to a two-year high on July 6.

Investors may find attractive opportunities in the tech sector. These Chinese tech heavyweights have global ambitions and are turning up the heat in the fight for global dominance as they take on their American rivals. They enjoy favourable government policies and lax regulation and are beneficiaries of the growing affluence amongst China’s middle class.

Alibaba Group Holding Ltd

 

Ticker

BABA

 

Current yield:

 

Forward P/E:

31.25

 

Price

US$249 (£192)

 

Fair value:

US$263 (£202.80)

 

Value

5% discount

 

Moat

 

Moat Trend

Stable

 

Star rating

***

Data as of July 28, 2020

 
Chinese e-commerce juggernaut,

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Top 20 Most Profitable Stocks of the Last 20 Years

Christel Deskins

Being part of the investing community means that, at some point in your life, you’ve probably heard or seen things like “I wish I had bought Apple (NASDAQ:AAPL) or Amazon (NASDAQ:AMZN) back it the early days” more times than you can count. You may have even said the same thing once or twice, though perhaps with different stocks.

It’s a common sentiment to wish that you could have had the luck or foresight to bet correctly on a stock that would go on to make millions, even if at the time, you had no way to differentiate it meaningfully from competitors that eventually became obsolete.

However, when we take a look at the stocks that had the highest potential to bring wealth to investors over the past 20 years, we find that the list does not consist solely of tech giants like Amazon and Apple. In fact, some of them

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3 Hot Tech Stocks to Buy After Solid Earnings

Christel Deskins

Tech sector earnings are entering their heaviest period and there’s sure to be much to say about them. One thing’s for sure, this should be a big quarter for many players because a truly large number of companies have benefited from the pandemic-induced changes in behavior. In this blog, I’ve highlighted results for three companies and said why these stocks are worth picking up-

ASML Holding N.V. ASML

ASML is a leading provider of advanced technology systems for all the major global semiconductor manufacturers. It designs, develops, integrates, markets and services these advanced systems so customers can make integrated circuits for application across electronic, communications and other information technology markets.

Headline numbers for the June quarter: Earnings of $1.97 topped the Zacks Consensus Estimate of $1.89. Revenue of $3.66 billion was also ahead of the estimated $3.54 billion.

Highlights of the quarter: The transition to EUV tools that

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