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The Zacks Analyst Blog Highlights Micron, NVIDIA and Vistra
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For Immediate Release
Chicago, IL – July 9, 2024 – 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: Micron Technology, Inc. (MU - Free Report) , NVIDIA Corp. (NVDA - Free Report) and Vistra Corp. (VST - Free Report) .
Here are highlights from Monday’s Analyst Blog:
Fed Cut Odds Rise: 3 Stocks to Gain
As employers added fewer jobs in June and the jobless rate ticked up, expectations that the Federal Reserve will trim the benchmark interest rate in the coming months rose significantly. Easing inflationary pressure is also paving the way for an interest rate cut soon.
This calls for investing in rate-sensitive tech stocks Micron Technology, Inc. and NVIDIA Corp. as well as utility player Vistra Corp. for solid returns.
Slowdown in Hiring
Job additions in the United States were less in June than the prior month and the unemployment rate climbed to its highest level since October 2021, according to the Bureau of Labor Statistics. The economy added 206,000 jobs last month, less than the downwardly revised job gains of 218,000 in May.
The U.S. economy may have added slightly more-than-estimated jobs in June, but the unemployment rate unpredictably jumped to 4.1% as the labor force participation rate increased. The broader unemployment rate, including discouraged workers and part-time jobs, held steady at elevated levels.
Cooling Inflation
Price pressures have loosened their grip on the economy recently, with the Fed’s preferred inflation gauge, the personal consumption expenditure index, remaining unaltered in May.
The decline in gasoline prices also eased consumer price pressures, with the consumer price index (CPI) remaining flat in May, a tell-tale sign that inflation is receding. Year over year, the CPI may have increased by 3.3% in May but that’s far below the pandemic-era peak of 9.1% in 2022. Meanwhile, producer prices dropped month over month in May.
Fed Rate Cut Expected Soon
The Fed, for quite some time, has kept interest rates at record highs to curb relentless price pressures. But now, with inflation beginning to show signs of subsiding, the Fed is widely expected to trim interest rates as early as in fall.
Additionally, with the pace of job additions cooling down, consumer outlays are likely to decrease, which may compel the Fed to remain dovish. The CME FedWatch Tool shows that 70.8% of market participants expect the Fed to cut interest rates by a quarter-point in the September policy meeting.
3 Likely Winners From a Rate Cut: MU, NVDA, VST
A low interest rate scenario bodes well for tech stocks, including Micron Technology and NVIDIA, as their cash inflows aren’t disrupted, and a reduction in the borrowing cost boosts their profit margins. At the same time, utility companies such as Vistra see their debt level decreasing in a low interest rate environment, which would help the company to pay off their dues.
Micron Technology
Provider of semiconductor memory solutions, Micron expects its revenues to improve on higher demand for its DRAM and NAND chips.
Micron currently has a Zacks Rank #2 (Buy). The Zacks Consensus Estimate for its current-year earnings has increased 31.8% over the past 60 days. The company’s expected earnings growth for the current year is 126.1%.
NVIDIA
Strong growth in demand for generative artificial intelligence is benefiting the inventor of the graphic processing unit, NVIDIA.
The Zacks Consensus Estimate for NVIDIA’s current-year earnings has increased 12.1% over the past 60 days. The company’s expected earnings growth for the current year is 106.2%. NVIDIA, at present, sports a Zacks Rank #1 (Strong Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.
Vistra
Provider of electricity generation, distribution and transmission solutions, Vistra currently has a Zacks Rank #1.
The Zacks Consensus Estimate for its current-year earnings has increased 9.4% over the past 60 days. The company’s expected earnings growth for the current year is 10%.
Shares of Micron Technology, NVIDIA and Vistra have gained 54.2%, 154.1%, and 132%, respectively, so far this year.
Why Haven’t You Looked at Zacks' Top Stocks?
Since 2000, our top stock-picking strategies have blown away the S&P's +7.0 average gain per year. Amazingly, they soared with average gains of +44.9%, +48.4% 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 Micron, NVIDIA and Vistra
For Immediate Release
Chicago, IL – July 9, 2024 – 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: Micron Technology, Inc. (MU - Free Report) , NVIDIA Corp. (NVDA - Free Report) and Vistra Corp. (VST - Free Report) .
Here are highlights from Monday’s Analyst Blog:
Fed Cut Odds Rise: 3 Stocks to Gain
As employers added fewer jobs in June and the jobless rate ticked up, expectations that the Federal Reserve will trim the benchmark interest rate in the coming months rose significantly. Easing inflationary pressure is also paving the way for an interest rate cut soon.
This calls for investing in rate-sensitive tech stocks Micron Technology, Inc. and NVIDIA Corp. as well as utility player Vistra Corp. for solid returns.
Slowdown in Hiring
Job additions in the United States were less in June than the prior month and the unemployment rate climbed to its highest level since October 2021, according to the Bureau of Labor Statistics. The economy added 206,000 jobs last month, less than the downwardly revised job gains of 218,000 in May.
The U.S. economy may have added slightly more-than-estimated jobs in June, but the unemployment rate unpredictably jumped to 4.1% as the labor force participation rate increased. The broader unemployment rate, including discouraged workers and part-time jobs, held steady at elevated levels.
Cooling Inflation
Price pressures have loosened their grip on the economy recently, with the Fed’s preferred inflation gauge, the personal consumption expenditure index, remaining unaltered in May.
The decline in gasoline prices also eased consumer price pressures, with the consumer price index (CPI) remaining flat in May, a tell-tale sign that inflation is receding. Year over year, the CPI may have increased by 3.3% in May but that’s far below the pandemic-era peak of 9.1% in 2022. Meanwhile, producer prices dropped month over month in May.
Fed Rate Cut Expected Soon
The Fed, for quite some time, has kept interest rates at record highs to curb relentless price pressures. But now, with inflation beginning to show signs of subsiding, the Fed is widely expected to trim interest rates as early as in fall.
Additionally, with the pace of job additions cooling down, consumer outlays are likely to decrease, which may compel the Fed to remain dovish. The CME FedWatch Tool shows that 70.8% of market participants expect the Fed to cut interest rates by a quarter-point in the September policy meeting.
3 Likely Winners From a Rate Cut: MU, NVDA, VST
A low interest rate scenario bodes well for tech stocks, including Micron Technology and NVIDIA, as their cash inflows aren’t disrupted, and a reduction in the borrowing cost boosts their profit margins. At the same time, utility companies such as Vistra see their debt level decreasing in a low interest rate environment, which would help the company to pay off their dues.
Micron Technology
Provider of semiconductor memory solutions, Micron expects its revenues to improve on higher demand for its DRAM and NAND chips.
Micron currently has a Zacks Rank #2 (Buy). The Zacks Consensus Estimate for its current-year earnings has increased 31.8% over the past 60 days. The company’s expected earnings growth for the current year is 126.1%.
NVIDIA
Strong growth in demand for generative artificial intelligence is benefiting the inventor of the graphic processing unit, NVIDIA.
The Zacks Consensus Estimate for NVIDIA’s current-year earnings has increased 12.1% over the past 60 days. The company’s expected earnings growth for the current year is 106.2%. NVIDIA, at present, sports a Zacks Rank #1 (Strong Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.
Vistra
Provider of electricity generation, distribution and transmission solutions, Vistra currently has a Zacks Rank #1.
The Zacks Consensus Estimate for its current-year earnings has increased 9.4% over the past 60 days. The company’s expected earnings growth for the current year is 10%.
Shares of Micron Technology, NVIDIA and Vistra have gained 54.2%, 154.1%, and 132%, respectively, so far this year.
Why Haven’t You Looked at Zacks' Top Stocks?
Since 2000, our top stock-picking strategies have blown away the S&P's +7.0 average gain per year. Amazingly, they soared with average gains of +44.9%, +48.4% 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.