We use cookies to understand how you use our site and to improve your experience. This includes personalizing content and advertising. To learn more, click here. By continuing to use our site, you accept our use of cookies, revised Privacy Policy and Terms of Service.
You are being directed to ZacksTrade, a division of LBMZ Securities and licensed broker-dealer. ZacksTrade and Zacks.com are separate companies. The web link between the two companies is not a solicitation or offer to invest in a particular security or type of security. ZacksTrade does not endorse or adopt any particular investment strategy, any analyst opinion/rating/report or any approach to evaluating individual securities.
If you wish to go to ZacksTrade, click OK. If you do not, click Cancel.
5 Crypto Stocks in Focus After Fed's Rate Hike Reinitiation
Read MoreHide Full Article
The Fed reinitiated its interest rate hike regime in the July FOMC meeting after a pause in the June FOMC. On Jul 26, the Fed raised the benchmark lending rate by 25 basis points to the range of 5.25-5.5%. This marked the highest range of the Fed fund rate since March 2001. Notably, since March 2022, the central bank hiked its interest rate in 10 consecutive FOMC meetings.
Prices of cryptocurrencies are inversely related to the market interest rate. The primary reason for last year’s disappointment was the Fed’s decision to pursue stringent monetary policies and a rigorous hike in the benchmark interest rate to combat 40-year high inflation.
Cryptocurrencies have resumed their northward journey this year after a highly disappointing 2022. However, after the Fed hiked the rate again, prices of cryptocurrencies like Bitcoin (BTC), Ethereum (ETH), Cardano (ADA) and Dogecoin (DOGE) fell 0.8%, 0.9%, 1.2% and 1.5%, respectively.
Cryptocurrencies may face volatility in the near-term as the central bank said that the decision of the future rate hike will depend solely on economic data. At this stage, investors should accumulate cryptocurrencies using a buy-on-the-dip strategy. Every dip in crypto prices will be a good purchasing point in order to gain handsomely once the Fed’s tighter monetary control comes to an end.
Stocks In Focus
NVIDIA Corp. (NVDA - Free Report) is a semiconductor industry giant and one of the biggest success stories of 2023. Being a leading designers of graphic processing units (GPUs), the NVDA stock usually soars on a booming crypto market. This is because GPUs are pivotal to data centers, artificial intelligence, and the creation of crypto assets.
NVIDIA’s expected earnings growth rate for the current year is more than 100%. The Zacks Consensus Estimate for its current-year earnings has improved 1.7% over the last 30 days. NVDA currently sports a Zacks Rank #1 (Strong Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.
PayPal Holdings Inc. (PYPL - Free Report) operates digital wallets and allows users to buy, transfer and sell cryptocurrencies, including Bitcoin, Ethereum, Bitcoin Cash and Litecoin. PYPL’s users can check out and pay using crypto to online merchants. PYPL’s mobile wallet Venmo also allows users to buy and sell cryptocurrency.
PayPal Holdings has an expected earnings growth rate of 19.9% for the current year. The Zacks Consensus Estimate for current-year earnings has improved 0.8% over the last 90 days. PYPL currently carries a Zacks Rank #3 (Hold).
Block Inc. (SQ - Free Report) is an online digital and mobile payment platform for consumers and merchants and is the parent company of Square and Cash App. The users of Cash App can buy, sell, send and receive Bitcoin. In addition, SQ’s decentralized tbd platform allows developers to build decentralized finance applications to run on programmable blockchains. SQ is also one of the largest Bitcoin investors.
Block has an expected earnings growth rate of 69% for the current year. The Zacks Consensus Estimate for current-year earnings has improved 3.7% over the last 90 days. SQ currently carries a Zacks Rank #3.
Accenture plc (ACN - Free Report) is a global system integrator, which provides consulting, technology and other services, markets Ethereum-based blockchain solutions to businesses to make it easier to process payments.
Accenture’s expected earnings growth rate for the current year is 8.2% (ending August 2023). The Zacks Consensus Estimate for its current-year earnings has improved by 0.1% over the last 90 days. ACN currently carries a Zacks Rank #3.
Interactive Brokers Group Inc. (IBKR - Free Report) is a global automated electronic broker. IBKR also others routes, as well as, executes, processes and trades in cryptocurrencies. IBKR’s commodities futures trading desk also offers customers a chance to trade cryptocurrency futures.
Interactive Brokers Group has an expected earnings growth rate of 39.5% for the current year. The Zacks Consensus Estimate for current-year earnings has remained the same over the last seven days. IBKR currently carries a Zacks Rank #3.
The chart below shows the price performance of five above-mentioned stocks in the past three months.
Image Source: Zacks Investment Research
See More Zacks Research for These Tickers
Normally $25 each - click below to receive one report FREE:
Image: Bigstock
5 Crypto Stocks in Focus After Fed's Rate Hike Reinitiation
The Fed reinitiated its interest rate hike regime in the July FOMC meeting after a pause in the June FOMC. On Jul 26, the Fed raised the benchmark lending rate by 25 basis points to the range of 5.25-5.5%. This marked the highest range of the Fed fund rate since March 2001. Notably, since March 2022, the central bank hiked its interest rate in 10 consecutive FOMC meetings.
Prices of cryptocurrencies are inversely related to the market interest rate. The primary reason for last year’s disappointment was the Fed’s decision to pursue stringent monetary policies and a rigorous hike in the benchmark interest rate to combat 40-year high inflation.
Cryptocurrencies have resumed their northward journey this year after a highly disappointing 2022. However, after the Fed hiked the rate again, prices of cryptocurrencies like Bitcoin (BTC), Ethereum (ETH), Cardano (ADA) and Dogecoin (DOGE) fell 0.8%, 0.9%, 1.2% and 1.5%, respectively.
Cryptocurrencies may face volatility in the near-term as the central bank said that the decision of the future rate hike will depend solely on economic data. At this stage, investors should accumulate cryptocurrencies using a buy-on-the-dip strategy. Every dip in crypto prices will be a good purchasing point in order to gain handsomely once the Fed’s tighter monetary control comes to an end.
Stocks In Focus
NVIDIA Corp. (NVDA - Free Report) is a semiconductor industry giant and one of the biggest success stories of 2023. Being a leading designers of graphic processing units (GPUs), the NVDA stock usually soars on a booming crypto market. This is because GPUs are pivotal to data centers, artificial intelligence, and the creation of crypto assets.
NVIDIA’s expected earnings growth rate for the current year is more than 100%. The Zacks Consensus Estimate for its current-year earnings has improved 1.7% over the last 30 days. NVDA currently sports a Zacks Rank #1 (Strong Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.
PayPal Holdings Inc. (PYPL - Free Report) operates digital wallets and allows users to buy, transfer and sell cryptocurrencies, including Bitcoin, Ethereum, Bitcoin Cash and Litecoin. PYPL’s users can check out and pay using crypto to online merchants. PYPL’s mobile wallet Venmo also allows users to buy and sell cryptocurrency.
PayPal Holdings has an expected earnings growth rate of 19.9% for the current year. The Zacks Consensus Estimate for current-year earnings has improved 0.8% over the last 90 days. PYPL currently carries a Zacks Rank #3 (Hold).
Block Inc. (SQ - Free Report) is an online digital and mobile payment platform for consumers and merchants and is the parent company of Square and Cash App. The users of Cash App can buy, sell, send and receive Bitcoin. In addition, SQ’s decentralized tbd platform allows developers to build decentralized finance applications to run on programmable blockchains. SQ is also one of the largest Bitcoin investors.
Block has an expected earnings growth rate of 69% for the current year. The Zacks Consensus Estimate for current-year earnings has improved 3.7% over the last 90 days. SQ currently carries a Zacks Rank #3.
Accenture plc (ACN - Free Report) is a global system integrator, which provides consulting, technology and other services, markets Ethereum-based blockchain solutions to businesses to make it easier to process payments.
Accenture’s expected earnings growth rate for the current year is 8.2% (ending August 2023). The Zacks Consensus Estimate for its current-year earnings has improved by 0.1% over the last 90 days. ACN currently carries a Zacks Rank #3.
Interactive Brokers Group Inc. (IBKR - Free Report) is a global automated electronic broker. IBKR also others routes, as well as, executes, processes and trades in cryptocurrencies. IBKR’s commodities futures trading desk also offers customers a chance to trade cryptocurrency futures.
Interactive Brokers Group has an expected earnings growth rate of 39.5% for the current year. The Zacks Consensus Estimate for current-year earnings has remained the same over the last seven days. IBKR currently carries a Zacks Rank #3.
The chart below shows the price performance of five above-mentioned stocks in the past three months.
Image Source: Zacks Investment Research