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.
Zacks Investment Ideas feature highlights: JPMorgan Chase and Tesla
Read MoreHide Full Article
For Immediate Release
Chicago, IL – October 16, 2023 – Today, Zacks Investment Ideas feature highlights JPMorgan Chase (JPM - Free Report) and Tesla (TSLA - Free Report) .
Room to Run: Why This Bull Market May Just Be Getting Started
When asked what has made the greatest investors so successful in the long run, they all share a key ingredient: patience. The best investors exhibit discipline over decades, navigating their way through heightened-volatility phases including pullbacks and deeper corrections.
It is these more difficult periods that are a natural and necessary component of any bull market. We’ve just encountered (and may still be in the midst of) a pullback that saw stocks move broadly lower over the past few months. Pullbacks and corrections are a common feature of young bull markets, but they pave the way for stocks to continue trending in a positive direction.
High Levels of Pessimism Remain
Despite the notable advances off last year’s bear market lows, plenty of skepticism remains. Bulls took control of the narrative late last year and have retained their dominance throughout this year. Yesterday marked the official one-year anniversary of this new bull market. Yet there are plenty of pessimists out there that feel even though we have entered a new bull market, high interest rates and other concerns will kill it off in short order. But those same people are asking for something that hasn’t happened since the depths of the Great Depression in 1932:
Let’s take note of a few things here. First, notice there’s only one instance spanning all new bull markets (since 1932) in which the 2nd year showed a negative return. Also of importance is the fact that the first year of new bull markets typically sees outsized gains; the first year of this new bull was on the lower side of the spectrum, which leaves plenty of upside potential ahead.
In fact, this was the weakest start to a new bull market since the year following the 1987 crash. The good news? Stocks gained 29% in the 2nd year of that bull cycle.
Earnings Season Brings Renewed Optimism
The third-quarter earnings season is underway with mega-financials reporting this morning including heavyweight JPMorgan Chase. A Zacks Rank #2 (Buy), JPMorgan Chase came out with quarterly earnings of $4.33/share, an 11.31% surprise over the $3.89/share consensus estimate. The bottom line soared 38.8% versus the year-ago period.
JPM posted Q3 revenues of $39.87 billion, a 1.89% surprise over the Zacks Consensus Estimate and a 21.9% improvement relative to the same quarter last year. JPM shares shot up more than 4% in the early going this morning and have advanced more than 15% year-to-date.
Outside of financials, the Q3 earnings season will heat up next week with a number of companies reporting including EV giant Tesla. Analysts have been slashing third-quarter earnings estimates for Tesla after the company reported disappointing delivery data earlier this month of 435,059 vehicles, down 6% from the second quarter.
TSLA EPS estimates have dropped 7.59% in the past 60 days. The Q3 Zacks Consensus Estimate now stands at $0.73/share, reflecting negative growth of -30.5% relative to last year. Third-quarter revenues for TSLA are projected to increase 13.6% to $24.38 billion.
Final Thoughts
Historical data points to a high likelihood that the recent volatility will turn out to be a buying opportunity, as odds are solid that the 2nd year of this bull market will be positive and may even surprise to the upside.
Despite the facts, high levels of pessimism remain as doubters are prevalent – something that I think can help this bull market reach new heights. Remember, stocks climb a wall of worry.
The Q3 earnings season is underway, and with it we may see renewed optimism. Make sure to take advantage of all that Zacks has to offer as we head further into the historically bullish fourth quarter.
Disclosure: JPM is a current long-term holding in the Zacks Income Investor portfolio.
Why Haven’t You Looked at Zacks' Top Stocks?
Since 2000, our top stock-picking strategies have blown away the S&P's +6.2 average gain per year. Amazingly, they soared with average gains of +46.4%, +49.5% and +55.2% per year. Today you can access their live picks without cost or obligation.
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.
See More Zacks Research for These Tickers
Normally $25 each - click below to receive one report FREE:
Image: Bigstock
Zacks Investment Ideas feature highlights: JPMorgan Chase and Tesla
For Immediate Release
Chicago, IL – October 16, 2023 – Today, Zacks Investment Ideas feature highlights JPMorgan Chase (JPM - Free Report) and Tesla (TSLA - Free Report) .
Room to Run: Why This Bull Market May Just Be Getting Started
When asked what has made the greatest investors so successful in the long run, they all share a key ingredient: patience. The best investors exhibit discipline over decades, navigating their way through heightened-volatility phases including pullbacks and deeper corrections.
It is these more difficult periods that are a natural and necessary component of any bull market. We’ve just encountered (and may still be in the midst of) a pullback that saw stocks move broadly lower over the past few months. Pullbacks and corrections are a common feature of young bull markets, but they pave the way for stocks to continue trending in a positive direction.
High Levels of Pessimism Remain
Despite the notable advances off last year’s bear market lows, plenty of skepticism remains. Bulls took control of the narrative late last year and have retained their dominance throughout this year. Yesterday marked the official one-year anniversary of this new bull market. Yet there are plenty of pessimists out there that feel even though we have entered a new bull market, high interest rates and other concerns will kill it off in short order. But those same people are asking for something that hasn’t happened since the depths of the Great Depression in 1932:
Let’s take note of a few things here. First, notice there’s only one instance spanning all new bull markets (since 1932) in which the 2nd year showed a negative return. Also of importance is the fact that the first year of new bull markets typically sees outsized gains; the first year of this new bull was on the lower side of the spectrum, which leaves plenty of upside potential ahead.
In fact, this was the weakest start to a new bull market since the year following the 1987 crash. The good news? Stocks gained 29% in the 2nd year of that bull cycle.
Earnings Season Brings Renewed Optimism
The third-quarter earnings season is underway with mega-financials reporting this morning including heavyweight JPMorgan Chase. A Zacks Rank #2 (Buy), JPMorgan Chase came out with quarterly earnings of $4.33/share, an 11.31% surprise over the $3.89/share consensus estimate. The bottom line soared 38.8% versus the year-ago period.
JPM posted Q3 revenues of $39.87 billion, a 1.89% surprise over the Zacks Consensus Estimate and a 21.9% improvement relative to the same quarter last year. JPM shares shot up more than 4% in the early going this morning and have advanced more than 15% year-to-date.
Outside of financials, the Q3 earnings season will heat up next week with a number of companies reporting including EV giant Tesla. Analysts have been slashing third-quarter earnings estimates for Tesla after the company reported disappointing delivery data earlier this month of 435,059 vehicles, down 6% from the second quarter.
TSLA EPS estimates have dropped 7.59% in the past 60 days. The Q3 Zacks Consensus Estimate now stands at $0.73/share, reflecting negative growth of -30.5% relative to last year. Third-quarter revenues for TSLA are projected to increase 13.6% to $24.38 billion.
Final Thoughts
Historical data points to a high likelihood that the recent volatility will turn out to be a buying opportunity, as odds are solid that the 2nd year of this bull market will be positive and may even surprise to the upside.
Despite the facts, high levels of pessimism remain as doubters are prevalent – something that I think can help this bull market reach new heights. Remember, stocks climb a wall of worry.
The Q3 earnings season is underway, and with it we may see renewed optimism. Make sure to take advantage of all that Zacks has to offer as we head further into the historically bullish fourth quarter.
Disclosure: JPM is a current long-term holding in the Zacks Income Investor portfolio.
Why Haven’t You Looked at Zacks' Top Stocks?
Since 2000, our top stock-picking strategies have blown away the S&P's +6.2 average gain per year. Amazingly, they soared with average gains of +46.4%, +49.5% and +55.2% per year. Today you can access their live picks without cost or obligation.
See Stocks Free >>
Media Contact
Zacks Investment Research
800-767-3771 ext. 9339
support@zacks.com
https://www.zacks.com
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.