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Intuitive Surgical and American Airlines Industries have been highlighted as Zacks Bull and Bear of the Day
Read MoreHide Full Article
For Immediate Release
Chicago, IL – August 5, 2024 – Zacks Equity Research shares Intuitive Surgical (ISRG - Free Report) as the Bull of the Day and American Airlines (AAL - Free Report) as the Bear of the Day. In addition, Zacks Equity Research provides analysis on NVIDIA Corp. (NVDA - Free Report) , Barrick Gold Corp. (GOLD - Free Report) and PulteGroup, Inc. (PHM - Free Report) .
Zacks Rank #1 (Strong Buy) stock Intuitive Surgical is a company known for its expertise in creating and producing cutting-edge robotic assisted systems. Their primary offering, the da Vinci Surgical System, is crafted to enhance surgeons’ precision, control, and skillfulness during procedures. This innovative system enables surgeons to conduct surgeries through openings by maneuvering robotic arms from a central console. Widely utilized across fields such as urology, gynecology, general surgery and cardiothoracic surgery, the da Vinci system aims to elevate patient outcomes, shorten recovery periods, and mitigate surgical risks.
Moat + Aging Population
Since ISRG’s IPO in 2000, the stock has gained over 10,000%! What’s behind the performance? ISRG’s da Vinci surgical system is so complex, and the company is so well ahead of its competition that it has a wide moat. Furthermore, as populations age worldwide, ISRG will benefit from the need for more surgery.
ISRG Relative Strength: Tennis Balls vs. Eggs
Relative strength is one of the most powerful tools I have used throughout my investing career. I have discovered that often, the best way to understand and simplify investing concepts like relative strength is through metaphors. Because roughly 75% of a stock’s move is attributed to the general market’s direction, the best time to look for strength is in a down market like the one we are currently in. When an egg hits the ground, it breaks (weak stock); when a tennis ball hits the ground, it bounces (strong stock).
Investors want to focus on tennis balls because of the sheer fact that if they are able to hold up so well in a poor market, they are likely to dramatically outperform when the market regains its footing. ISRG is currently up 45% year-to-date versus 18% for the S&P 500 Index. Meanwhile, ISRG is hanging tough and is off just 4% from its all-time highs, despite the recent carnage in the market.
Medical & Biotech Stocks Will Benefit from Lower Rates
With the worse-than-expected employment numbers last week, Jerome Powell and the Federal Reserve are almost guaranteed to cut interest rates. Stocks in the healthcare industry gain advantages from lower interest rates due to decreased borrowing expenses and increased investment capital.
Bottom Line
Intuitive Surgical is a leading innovator in robotic-assisted surgery with its da Vinci Surgical System. The company benefits from an aging population and a solid competitive moat.
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.
Zacks Rank #5 (Strong Sell) stock American Airlines serves as a premier commercial airline in the United States offering travel options for both passengers and cargo. Being among the top airlines globally, it runs a system of flights within the country and abroad, linking various cities worldwide. The company provides travel services such as flight bookings, onboard facilities, and loyalty programs for flyers. Recognized as a player in aviation, American Airlines stands out for its aircraft fleet and its contributions to both the leisure and corporate travel sectors.
Air Travel Reaches Record Highs Yet Airlines Sink
According to TSA data, seven of the top U.S. airline travel days in history have occurred this year. In other words, travel has increased dramatically in recent years to supersede pre-pandemic levels. However, the troubling thing for AAL investors is that earnings have stagnated and the stock is testing the 2020 panic lows. With the economy showing signs of weakness, investors should be concerned about how much worse things can get.
CrowdStrike Outage
Software security solution company CrowdStrike Holdings (CRWD - Free Report) caused mayhem in the airline industry due to an outage. Thousands of flights were cancelled and the outage was evidence of just how centralized the U.S. travel industry is. Though AAL was hit on the news, investors won’t understand the full impact of the disruptions until the company reports earnings at the end of August.
Geopolitical Concerns May Drive Fuel Prices Higher
Though oil prices have been elevated since the COVID-19 outbreak, they have oscillated in a range for several months. However, several geopolitical hotspots are heating up, including threats in the Middle East between Israel and Iran, Ukraine and Russia, and possibly Taiwan and China.
Jobs Numbers Plunge
The latest jobs report by the U.S. government fell far short of Wall Street’s expectations. Employers added just 114k jobs in July, compared to the 175,000 economists estimated. Meanwhile, global equity markets are crashing over the weekend as Japan’s stock market plunges. A weaker economy and jobs market is a net negative to an already struggling industry.
Bottom Line
Despite being a leading player in the airline industry, American Airlines faces significant challenges such as travel disruptions and macroeconomic concerns.
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.
Additional content:
Fed's September Rate Cut Bets Rise: NVDA, GOLD, PHM to Gain
The Federal Reserve recently concluded its fifth policy meeting of 2024 and has kept the benchmark interest rates at a two-decade high. The Fed kept the interest rates unaltered at 5.25% to 5.5% for the 12th successive month in July to counter the worst price pressures in 40 years.
However, Fed Chair Jerome Powell indicated that central bank officials are on course to lower borrowing costs in September as inflationary pressure has begun to ebb amid a cooler labor market that doesn’t overheat the economy.
Powell reiterated that if prices of indispensable commodities and services continue to fall further toward the central bank’s 2% goal, then the Fed will dial back its aggressive monetary policy, and a September rate cut will be on the table.
Fed’s key gauge of price pressures, the personal consumption expenditures (PCE) index increased 2.5% year over year in June, less than May’s 2.6% yearly gain, per the Bureau of Economic Analysis.
This steady monthly slowdown in inflation from the year-ago levels prompted market participants to increase bets on a September interest rate cut. Nearly 68.5% of market participants now expect the Fed to trim interest rates by a quarter-point in the September policy meeting, up from a probability of 52% in May, according to the CME FedWatch Tool. The odds of a minimum of two interest rate cuts by the end of the year have also gone up.
Rate Cuts Are a Boon for Tech Stocks
Interest rate cuts are a blessing in disguise for tech stocks such as NVIDIA Corp. since the inventor of GPUs’ cash flows aren’t affected and the cost of borrowing gets reduced, eventually boosting profit margins (read more: Fed Rate Cut Odds Rise: MU, NVDA, VST Stock Price to Gain).
The Zacks Consensus Estimate for NVIDIA’s current-year earnings has increased 1.5% over the past 60 days. The company’s expected earnings growth rate for the current year is 106.9%. NVIDIA currently sports a Zacks Rank #3 (Hold). You can see the complete list of today’s Zacks #1 Rank stocks here.
Gold Glitters in a Low Interest Rate Environment
Fixed-income investments lose their appeal in a low interest rate scenario and money flows out of such assets into gold. The price of the yellow metal climbs northward and boosts the profit margins of gold mining stocks such as Barrick Gold Corp.
The Zacks Rank #2 (Buy) company has gold mining operations in the United States. The Zacks Consensus Estimate for GOLD’s current-year earnings has increased 9.4% over the past 60 days. The company’s expected earnings growth rate for the current year is 38.1% (read more: Rise in Rate-Cut Bets May Prompt Stock Gains for GOLD, KGC, FNV).
Rate Cuts Work Wonders for Homebuilders
Homebuilders also benefit from interest rate cuts since they reduce mortgage rates, which leads to more demand. Interest rate cuts also trim the input costs of homebuilders like PulteGroup, Inc.
The Zacks Consensus Estimate for PHM’s current-year earnings has increased 3.4% over the past 60 days. The company’s expected earnings growth rate for the current year is 13.3%. PHM, at present, has a Zacks Rank #2.
Shares of NVIDIA, Barrick Gold and PulteGroup have gained 148.4%, 11.8% and 58.7%, respectively, over the past 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.
Zacks.com provides investment resources and informs you of these resources, which you may choose to use in making your own investment decisions. Zacks is providing information on this resource to you subject to the Zacks "Terms and Conditions of Service" disclaimer. www.zacks.com/disclaimer.
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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Intuitive Surgical and American Airlines Industries have been highlighted as Zacks Bull and Bear of the Day
For Immediate Release
Chicago, IL – August 5, 2024 – Zacks Equity Research shares Intuitive Surgical (ISRG - Free Report) as the Bull of the Day and American Airlines (AAL - Free Report) as the Bear of the Day. In addition, Zacks Equity Research provides analysis on NVIDIA Corp. (NVDA - Free Report) , Barrick Gold Corp. (GOLD - Free Report) and PulteGroup, Inc. (PHM - Free Report) .
Here is a synopsis of all five stocks:
Bull of the Day:
Company Overview
Zacks Rank #1 (Strong Buy) stock Intuitive Surgical is a company known for its expertise in creating and producing cutting-edge robotic assisted systems. Their primary offering, the da Vinci Surgical System, is crafted to enhance surgeons’ precision, control, and skillfulness during procedures. This innovative system enables surgeons to conduct surgeries through openings by maneuvering robotic arms from a central console. Widely utilized across fields such as urology, gynecology, general surgery and cardiothoracic surgery, the da Vinci system aims to elevate patient outcomes, shorten recovery periods, and mitigate surgical risks.
Moat + Aging Population
Since ISRG’s IPO in 2000, the stock has gained over 10,000%! What’s behind the performance? ISRG’s da Vinci surgical system is so complex, and the company is so well ahead of its competition that it has a wide moat. Furthermore, as populations age worldwide, ISRG will benefit from the need for more surgery.
ISRG Relative Strength: Tennis Balls vs. Eggs
Relative strength is one of the most powerful tools I have used throughout my investing career. I have discovered that often, the best way to understand and simplify investing concepts like relative strength is through metaphors. Because roughly 75% of a stock’s move is attributed to the general market’s direction, the best time to look for strength is in a down market like the one we are currently in. When an egg hits the ground, it breaks (weak stock); when a tennis ball hits the ground, it bounces (strong stock).
Investors want to focus on tennis balls because of the sheer fact that if they are able to hold up so well in a poor market, they are likely to dramatically outperform when the market regains its footing. ISRG is currently up 45% year-to-date versus 18% for the S&P 500 Index. Meanwhile, ISRG is hanging tough and is off just 4% from its all-time highs, despite the recent carnage in the market.
Medical & Biotech Stocks Will Benefit from Lower Rates
With the worse-than-expected employment numbers last week, Jerome Powell and the Federal Reserve are almost guaranteed to cut interest rates. Stocks in the healthcare industry gain advantages from lower interest rates due to decreased borrowing expenses and increased investment capital.
Bottom Line
Intuitive Surgical is a leading innovator in robotic-assisted surgery with its da Vinci Surgical System. The company benefits from an aging population and a solid competitive moat.
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.
Bear of the Day:
Company Overview
Zacks Rank #5 (Strong Sell) stock American Airlines serves as a premier commercial airline in the United States offering travel options for both passengers and cargo. Being among the top airlines globally, it runs a system of flights within the country and abroad, linking various cities worldwide. The company provides travel services such as flight bookings, onboard facilities, and loyalty programs for flyers. Recognized as a player in aviation, American Airlines stands out for its aircraft fleet and its contributions to both the leisure and corporate travel sectors.
Air Travel Reaches Record Highs Yet Airlines Sink
According to TSA data, seven of the top U.S. airline travel days in history have occurred this year. In other words, travel has increased dramatically in recent years to supersede pre-pandemic levels. However, the troubling thing for AAL investors is that earnings have stagnated and the stock is testing the 2020 panic lows. With the economy showing signs of weakness, investors should be concerned about how much worse things can get.
CrowdStrike Outage
Software security solution company CrowdStrike Holdings (CRWD - Free Report) caused mayhem in the airline industry due to an outage. Thousands of flights were cancelled and the outage was evidence of just how centralized the U.S. travel industry is. Though AAL was hit on the news, investors won’t understand the full impact of the disruptions until the company reports earnings at the end of August.
Geopolitical Concerns May Drive Fuel Prices Higher
Though oil prices have been elevated since the COVID-19 outbreak, they have oscillated in a range for several months. However, several geopolitical hotspots are heating up, including threats in the Middle East between Israel and Iran, Ukraine and Russia, and possibly Taiwan and China.
Jobs Numbers Plunge
The latest jobs report by the U.S. government fell far short of Wall Street’s expectations. Employers added just 114k jobs in July, compared to the 175,000 economists estimated. Meanwhile, global equity markets are crashing over the weekend as Japan’s stock market plunges. A weaker economy and jobs market is a net negative to an already struggling industry.
Bottom Line
Despite being a leading player in the airline industry, American Airlines faces significant challenges such as travel disruptions and macroeconomic concerns.
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.
Additional content:
Fed's September Rate Cut Bets Rise: NVDA, GOLD, PHM to Gain
The Federal Reserve recently concluded its fifth policy meeting of 2024 and has kept the benchmark interest rates at a two-decade high. The Fed kept the interest rates unaltered at 5.25% to 5.5% for the 12th successive month in July to counter the worst price pressures in 40 years.
However, Fed Chair Jerome Powell indicated that central bank officials are on course to lower borrowing costs in September as inflationary pressure has begun to ebb amid a cooler labor market that doesn’t overheat the economy.
Powell reiterated that if prices of indispensable commodities and services continue to fall further toward the central bank’s 2% goal, then the Fed will dial back its aggressive monetary policy, and a September rate cut will be on the table.
Fed’s key gauge of price pressures, the personal consumption expenditures (PCE) index increased 2.5% year over year in June, less than May’s 2.6% yearly gain, per the Bureau of Economic Analysis.
This steady monthly slowdown in inflation from the year-ago levels prompted market participants to increase bets on a September interest rate cut. Nearly 68.5% of market participants now expect the Fed to trim interest rates by a quarter-point in the September policy meeting, up from a probability of 52% in May, according to the CME FedWatch Tool. The odds of a minimum of two interest rate cuts by the end of the year have also gone up.
Rate Cuts Are a Boon for Tech Stocks
Interest rate cuts are a blessing in disguise for tech stocks such as NVIDIA Corp. since the inventor of GPUs’ cash flows aren’t affected and the cost of borrowing gets reduced, eventually boosting profit margins (read more: Fed Rate Cut Odds Rise: MU, NVDA, VST Stock Price to Gain).
The Zacks Consensus Estimate for NVIDIA’s current-year earnings has increased 1.5% over the past 60 days. The company’s expected earnings growth rate for the current year is 106.9%. NVIDIA currently sports a Zacks Rank #3 (Hold). You can see the complete list of today’s Zacks #1 Rank stocks here.
Gold Glitters in a Low Interest Rate Environment
Fixed-income investments lose their appeal in a low interest rate scenario and money flows out of such assets into gold. The price of the yellow metal climbs northward and boosts the profit margins of gold mining stocks such as Barrick Gold Corp.
The Zacks Rank #2 (Buy) company has gold mining operations in the United States. The Zacks Consensus Estimate for GOLD’s current-year earnings has increased 9.4% over the past 60 days. The company’s expected earnings growth rate for the current year is 38.1% (read more: Rise in Rate-Cut Bets May Prompt Stock Gains for GOLD, KGC, FNV).
Rate Cuts Work Wonders for Homebuilders
Homebuilders also benefit from interest rate cuts since they reduce mortgage rates, which leads to more demand. Interest rate cuts also trim the input costs of homebuilders like PulteGroup, Inc.
The Zacks Consensus Estimate for PHM’s current-year earnings has increased 3.4% over the past 60 days. The company’s expected earnings growth rate for the current year is 13.3%. PHM, at present, has a Zacks Rank #2.
Shares of NVIDIA, Barrick Gold and PulteGroup have gained 148.4%, 11.8% and 58.7%, respectively, over the past 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 >>
Media Contact
Zacks Investment Research
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https://www.zacks.com
Zacks.com provides investment resources and informs you of these resources, which you may choose to use in making your own investment decisions. Zacks is providing information on this resource to you subject to the Zacks "Terms and Conditions of Service" disclaimer. www.zacks.com/disclaimer.
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.