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The Zacks Analyst Blog Highlights NVIDIA, Vertiv Holdings, Copart, Insulet and Constellation Energy
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For Immediate Release
Chicago, IL – December 5, 2023 – Zacks.com announces the list of stocks featured in the Analyst Blog. Every day the Zacks Equity Research analysts discuss the latest news and events impacting stocks and the financial markets. Stocks recently featured in the blog include: NVIDIA Corp. (NVDA - Free Report) , Vertiv Holdings Co. (VRT - Free Report) , Copart Inc. (CPRT - Free Report) , Insulet Corp. (PODD - Free Report) and Constellation Energy Corp. (CEG - Free Report) .
Here are highlights from Monday’s Analyst Blog:
5 Momentum Picks to Continue into December
Wall Street witnessed an impressive rally in November. After three consecutive months of decline, U.S. stock markets rebounded last month buoyed by a steadily dwindling inflation rate, recently released several weak economic data and astonishing growth of the U.S. economy.
November’s rally was broad-based. The three major stock indexes — the Dow, the S&P 500 and the Nasdaq Composite — surged 8.8%, 8.9% and 10.7%, respectively. The small-cap benchmark Russell 2000 also advanced 8.8%. All four indexes recorded their best monthly performance in 2023. The Dow saw its best month since October 2022.
Momentum is likely to continue in December as most of the market participants are confident that the Fed is through with its current rate hike cycle. The CME FedWatch is currently showing a more than 99% probability that the central bank will keep the benchmark interest rate unchanged at 5.25-5.5%. More importantly, the tool is also showing a 50% probability that the central bank will initiate the first rate cut of 25 basis points as early as March 2024.
Our Top Picks
At this stage, it will be prudent to invest in momentum stocks. We have narrowed our search to five large-cap (market capital > $10 billion) stocks that have strong momentum for November. These companies have strong potential for 2024.
NVIDIA Corp. is gaining from the strong growth of artificial intelligence, high-performance computing and accelerated computing, which is boosting its Compute & Networking revenues. The datacenter end-market business is likely to benefit from the growing demand for generative AI and large language models using GPUs based on NVIDIA Hopper and Ampere architectures.
A surge in Hyperscale demand and a solid uptake of AI-based smart cockpit infotainment solutions are acting as tailwinds for NVDA. Collaboration with Mercedes-Benz and Audi is likely to advance NVDA’s presence in the autonomous vehicles and other automotive electronics space.
NVIDIA has an expected revenue and earnings growth rate of 51.7% and 52.6%, respectively, for next year (ending January 2025). The Zacks Consensus Estimate for next-year earnings has improved 3.8% over the last 30 days.
Vertiv Holdings Co. designs, manufactures, and services critical digital infrastructure technologies and life cycle services for data centers, communication networks, and commercial and industrial environments in the Americas, the Asia Pacific, Europe, the Middle East, and Africa. VRT offers hardware, software, analytics and ongoing services.
Vertiv Holdings has an expected revenue and earnings growth rate of 9% and 27.9%, respectively, for next year. The Zacks Consensus Estimate for next-year earnings has improved 11.7% over the last 60 days.
Copart Inc. enjoys a leadership position in the automotive auction market, commanding roughly 40% of the market share. CPRT’s competitiveness is supported by its multiple locations and the size of its new facility openings. Expansion initiatives, along with a digital ramp-up, will aid Copart in a fast pickup across the country.
The launch of Copart Max has further stepped up its digital game. Salvage auction volumes are likely to remain elevated amid an increase in vehicle miles traveled and a higher collision frequency. Additionally, aging vehicles and technologically advanced auto parts are proving to be a boon for CPRT. A strong balance sheet with low leverage and high liquidity provides CPRT with financial flexibility.
Copart has an expected revenue and earnings growth rate of 8.9% and 15.1%, respectively, for the current year (ending July 2024). The Zacks Consensus Estimate for current-year earnings has improved 0.7% over the last seven days.
Insulet Corp. has been progressing well on its four-pillar strategy with target-focused market expansion and innovation. PODD has been making significant progress with respect to its development roadmap of the Omnipod 5 system. The international rollout of the device continues successfully.
PODD commercially launched Omnipod 5 in the United Kingdom in June and in August, this device reached Germany commercially. Further, Insulet registered continued strong adoption of Omnipod DASH in its international markets. In terms of innovation, in October, PODD received the 510(k) clearance for the Omnipod 5 iOS app.
Insulet has an expected revenue and earnings growth rate of 19.8% and 30.2%, respectively, for next year. The Zacks Consensus Estimate for next-year earnings has improved 9.7% over the last 30 days.
Constellation Energy Corp. generates and sells electricity in the United States. CEG operates through five segments: Mid-Atlantic, Midwest, New York, ERCOT, and Other Power Regions. CEG sells natural gas, and other energy-related products and services.
Constellation Energy has an expected revenue and earnings growth rate of 3.7% and 19.2%, respectively, for next year. The Zacks Consensus Estimate for next-year earnings has improved 0.9% over the last seven days.
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.
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The Zacks Analyst Blog Highlights NVIDIA, Vertiv Holdings, Copart, Insulet and Constellation Energy
For Immediate Release
Chicago, IL – December 5, 2023 – Zacks.com announces the list of stocks featured in the Analyst Blog. Every day the Zacks Equity Research analysts discuss the latest news and events impacting stocks and the financial markets. Stocks recently featured in the blog include: NVIDIA Corp. (NVDA - Free Report) , Vertiv Holdings Co. (VRT - Free Report) , Copart Inc. (CPRT - Free Report) , Insulet Corp. (PODD - Free Report) and Constellation Energy Corp. (CEG - Free Report) .
Here are highlights from Monday’s Analyst Blog:
5 Momentum Picks to Continue into December
Wall Street witnessed an impressive rally in November. After three consecutive months of decline, U.S. stock markets rebounded last month buoyed by a steadily dwindling inflation rate, recently released several weak economic data and astonishing growth of the U.S. economy.
November’s rally was broad-based. The three major stock indexes — the Dow, the S&P 500 and the Nasdaq Composite — surged 8.8%, 8.9% and 10.7%, respectively. The small-cap benchmark Russell 2000 also advanced 8.8%. All four indexes recorded their best monthly performance in 2023. The Dow saw its best month since October 2022.
Momentum is likely to continue in December as most of the market participants are confident that the Fed is through with its current rate hike cycle. The CME FedWatch is currently showing a more than 99% probability that the central bank will keep the benchmark interest rate unchanged at 5.25-5.5%. More importantly, the tool is also showing a 50% probability that the central bank will initiate the first rate cut of 25 basis points as early as March 2024.
Our Top Picks
At this stage, it will be prudent to invest in momentum stocks. We have narrowed our search to five large-cap (market capital > $10 billion) stocks that have strong momentum for November. These companies have strong potential for 2024.
These stocks have seen positive earnings estimate revisions in the last seven days. Each of our picks carries a Zacks Rank #1 (Strong Buy) and has a Momentum Score of A or B. You can see the complete list of today’s Zacks #1 Rank stocks here.
NVIDIA Corp. is gaining from the strong growth of artificial intelligence, high-performance computing and accelerated computing, which is boosting its Compute & Networking revenues. The datacenter end-market business is likely to benefit from the growing demand for generative AI and large language models using GPUs based on NVIDIA Hopper and Ampere architectures.
A surge in Hyperscale demand and a solid uptake of AI-based smart cockpit infotainment solutions are acting as tailwinds for NVDA. Collaboration with Mercedes-Benz and Audi is likely to advance NVDA’s presence in the autonomous vehicles and other automotive electronics space.
NVIDIA has an expected revenue and earnings growth rate of 51.7% and 52.6%, respectively, for next year (ending January 2025). The Zacks Consensus Estimate for next-year earnings has improved 3.8% over the last 30 days.
Vertiv Holdings Co. designs, manufactures, and services critical digital infrastructure technologies and life cycle services for data centers, communication networks, and commercial and industrial environments in the Americas, the Asia Pacific, Europe, the Middle East, and Africa. VRT offers hardware, software, analytics and ongoing services.
Vertiv Holdings has an expected revenue and earnings growth rate of 9% and 27.9%, respectively, for next year. The Zacks Consensus Estimate for next-year earnings has improved 11.7% over the last 60 days.
Copart Inc. enjoys a leadership position in the automotive auction market, commanding roughly 40% of the market share. CPRT’s competitiveness is supported by its multiple locations and the size of its new facility openings. Expansion initiatives, along with a digital ramp-up, will aid Copart in a fast pickup across the country.
The launch of Copart Max has further stepped up its digital game. Salvage auction volumes are likely to remain elevated amid an increase in vehicle miles traveled and a higher collision frequency. Additionally, aging vehicles and technologically advanced auto parts are proving to be a boon for CPRT. A strong balance sheet with low leverage and high liquidity provides CPRT with financial flexibility.
Copart has an expected revenue and earnings growth rate of 8.9% and 15.1%, respectively, for the current year (ending July 2024). The Zacks Consensus Estimate for current-year earnings has improved 0.7% over the last seven days.
Insulet Corp. has been progressing well on its four-pillar strategy with target-focused market expansion and innovation. PODD has been making significant progress with respect to its development roadmap of the Omnipod 5 system. The international rollout of the device continues successfully.
PODD commercially launched Omnipod 5 in the United Kingdom in June and in August, this device reached Germany commercially. Further, Insulet registered continued strong adoption of Omnipod DASH in its international markets. In terms of innovation, in October, PODD received the 510(k) clearance for the Omnipod 5 iOS app.
Insulet has an expected revenue and earnings growth rate of 19.8% and 30.2%, respectively, for next year. The Zacks Consensus Estimate for next-year earnings has improved 9.7% over the last 30 days.
Constellation Energy Corp. generates and sells electricity in the United States. CEG operates through five segments: Mid-Atlantic, Midwest, New York, ERCOT, and Other Power Regions. CEG sells natural gas, and other energy-related products and services.
Constellation Energy has an expected revenue and earnings growth rate of 3.7% and 19.2%, respectively, for next year. The Zacks Consensus Estimate for next-year earnings has improved 0.9% over the last seven days.
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 >>
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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.