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The Zacks Analyst Blog Highlights VanEck Vectors Semiconductor ETF, iShares Semiconductor ETF, First Trust NASDAQ Semiconductor ETF and Invesco PHLX Semiconductor ETF
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For Immediate Release
Chicago, IL – July 26, 2023 – Zacks.com announces the list of stocks and ETFs featured in the Analyst Blog. Every day the Zacks Equity Research analysts discuss the latest news and events impacting stocks and the financial markets. ETFs recently featured in the blog include: VanEck Vectors Semiconductor ETF (SMH - Free Report) , iShares Semiconductor ETF (SOXX - Free Report) , First Trust NASDAQ Semiconductor ETF (FTXL - Free Report) and Invesco PHLX Semiconductor ETF (SOXQ - Free Report) .
Here are highlights from Tuesday’s Analyst Blog:
Semiconductor ETFs in Focus Ahead of Q2 Earnings
Semiconductor stocks and ETFs have been rising this year buoyed by the artificial intelligence (AI) frenzy. VanEck Vectors Semiconductor ETF, iShares Semiconductor ETF, First Trust NASDAQ Semiconductor ETF and Invesco PHLX Semiconductor ETF have gained 22.6%, 21.8%, 17.6% and 21.9%, respectively, over the past three months.
Semiconductors have been the most important drivers of the overall growth in technology, given the use of chips in day-to-day life, from cars to electronic gadgets to planes and weapons. Demand will continue to trend higher, given increased digitization in various corners like healthcare, transport, financial systems, defense, agriculture and retail, among others.
The rapid adoption of cutting-edge technology like cloud, Internet of Things, autonomous cars, gaming, wearables, VR headsets, drones, virtual reality devices, AI, cryptocurrencies, 5G and other advanced information technologies should continue to fuel growth. Further, the introduction of expensive and new-generation chips has led to an enhancement in the product mix for semiconductors.
Some well-known players in the space, such as Intel (INTC), Qualcomm (QCOM), NVIDIA (NVDA) and Advanced Micro Devices (AMD), will report earnings in the coming days. Let’s delve into the financial picture of the companies that have a higher allocation in the above-mentioned ETFs and the power they have to move the funds up or down as Q2 earnings unfold. SMH is largely concentrated on these four firms with a combined share of 33.5%, followed by 27.5% for SOXQ, 26.1% for SOXX and 22% for FTXL.
Per our proven model, the combination of a positive Earnings ESP and a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold) increases the chances of an earnings beat. You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.
Inside Our Earnings Prediction
Intel has an Earnings ESP of +19.64% and a Zacks Rank #2. The stock saw no earnings estimate revision over the past 30 days for the to-be-reported quarter. Intel delivered an earnings surprise of 10.1%, on average, for the preceding four quarters. It is slated to release earnings after market close on Jul 27.
Qualcomm has an Earnings ESP of 0.00% and a Zacks Rank #3. The company witnessed no earnings estimate revision over the past 30 days for the to-be-reported quarter and delivered an earnings surprise of 1.05% in the trailing four quarters, on average. The company is slated to report earnings after the closing bell on Aug 2 (see: all the Technology ETFs here).
NVIDIA has an Earnings ESP of +5.56% and a Zacks Rank #1. It saw a positive earnings estimate revision of a couple of cents over the past 30 days for the quarter to be reported. Analysts raising estimates right before earnings — with the most up-to-date information possible — is a good indicator for the stock. The company delivered an earnings surprise of 0.26%, on average, over the past four quarters. Nvidia is slated to report on Aug 23 (read: Nasdaq-100 Rebalance: What ETF Investors Should Know).
Advanced Micro Devices has an Earnings ESP of 0.00% and a Zacks Rank #3. Its earnings surprise history is impressive, with the average beat being 15.53% for the preceding four quarters. The stock witnessed no earnings estimate revision over the past 30 days for the quarter to be reported. AMD is slated to report earnings on Aug 1 after the closing bell.
Conclusion
Though most companies are expected to surprise on earnings this season, semiconductor ETFs might see smooth trading in the weeks ahead as SOXX, SMH and FTXL have a Zacks ETF Rank #1 or 2. This suggests their outperformance in the weeks ahead.
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Zacks’ free Fund Newsletter will brief you on top news and analysis, as well as top-performing ETFs, each week.
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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The Zacks Analyst Blog Highlights VanEck Vectors Semiconductor ETF, iShares Semiconductor ETF, First Trust NASDAQ Semiconductor ETF and Invesco PHLX Semiconductor ETF
For Immediate Release
Chicago, IL – July 26, 2023 – Zacks.com announces the list of stocks and ETFs featured in the Analyst Blog. Every day the Zacks Equity Research analysts discuss the latest news and events impacting stocks and the financial markets. ETFs recently featured in the blog include: VanEck Vectors Semiconductor ETF (SMH - Free Report) , iShares Semiconductor ETF (SOXX - Free Report) , First Trust NASDAQ Semiconductor ETF (FTXL - Free Report) and Invesco PHLX Semiconductor ETF (SOXQ - Free Report) .
Here are highlights from Tuesday’s Analyst Blog:
Semiconductor ETFs in Focus Ahead of Q2 Earnings
Semiconductor stocks and ETFs have been rising this year buoyed by the artificial intelligence (AI) frenzy. VanEck Vectors Semiconductor ETF, iShares Semiconductor ETF, First Trust NASDAQ Semiconductor ETF and Invesco PHLX Semiconductor ETF have gained 22.6%, 21.8%, 17.6% and 21.9%, respectively, over the past three months.
The strong trend is likely to continue in the weeks ahead as the Q2 earnings season picks up pace (read: Best & Worst ETF Areas of First Half 2023).
Semiconductors have been the most important drivers of the overall growth in technology, given the use of chips in day-to-day life, from cars to electronic gadgets to planes and weapons. Demand will continue to trend higher, given increased digitization in various corners like healthcare, transport, financial systems, defense, agriculture and retail, among others.
The rapid adoption of cutting-edge technology like cloud, Internet of Things, autonomous cars, gaming, wearables, VR headsets, drones, virtual reality devices, AI, cryptocurrencies, 5G and other advanced information technologies should continue to fuel growth. Further, the introduction of expensive and new-generation chips has led to an enhancement in the product mix for semiconductors.
Some well-known players in the space, such as Intel (INTC), Qualcomm (QCOM), NVIDIA (NVDA) and Advanced Micro Devices (AMD), will report earnings in the coming days. Let’s delve into the financial picture of the companies that have a higher allocation in the above-mentioned ETFs and the power they have to move the funds up or down as Q2 earnings unfold. SMH is largely concentrated on these four firms with a combined share of 33.5%, followed by 27.5% for SOXQ, 26.1% for SOXX and 22% for FTXL.
Per our proven model, the combination of a positive Earnings ESP and a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold) increases the chances of an earnings beat. You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.
Inside Our Earnings Prediction
Intel has an Earnings ESP of +19.64% and a Zacks Rank #2. The stock saw no earnings estimate revision over the past 30 days for the to-be-reported quarter. Intel delivered an earnings surprise of 10.1%, on average, for the preceding four quarters. It is slated to release earnings after market close on Jul 27.
Qualcomm has an Earnings ESP of 0.00% and a Zacks Rank #3. The company witnessed no earnings estimate revision over the past 30 days for the to-be-reported quarter and delivered an earnings surprise of 1.05% in the trailing four quarters, on average. The company is slated to report earnings after the closing bell on Aug 2 (see: all the Technology ETFs here).
NVIDIA has an Earnings ESP of +5.56% and a Zacks Rank #1. It saw a positive earnings estimate revision of a couple of cents over the past 30 days for the quarter to be reported. Analysts raising estimates right before earnings — with the most up-to-date information possible — is a good indicator for the stock. The company delivered an earnings surprise of 0.26%, on average, over the past four quarters. Nvidia is slated to report on Aug 23 (read: Nasdaq-100 Rebalance: What ETF Investors Should Know).
Advanced Micro Devices has an Earnings ESP of 0.00% and a Zacks Rank #3. Its earnings surprise history is impressive, with the average beat being 15.53% for the preceding four quarters. The stock witnessed no earnings estimate revision over the past 30 days for the quarter to be reported. AMD is slated to report earnings on Aug 1 after the closing bell.
Conclusion
Though most companies are expected to surprise on earnings this season, semiconductor ETFs might see smooth trading in the weeks ahead as SOXX, SMH and FTXL have a Zacks ETF Rank #1 or 2. This suggests their outperformance in the weeks ahead.
Want key ETF info delivered straight to your inbox?
Zacks’ free Fund Newsletter will brief you on top news and analysis, as well as top-performing ETFs, each week.
Get it free >>
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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.