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The Zacks Analyst Blog Highlights CME, NVIDIA, Interactive Brokers Group, Robinhood Markets and Block
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For Immediate Release
Chicago, IL – August 16, 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: CME Group Inc.'s (CME - Free Report) , NVIDIA Corp. (NVDA - Free Report) , Interactive Brokers Group Inc. (IBKR - Free Report) , Robinhood Markets Inc. (HOOD - Free Report) and Block Inc. (SQ - Free Report) .
Here are highlights from Thursday’s Analyst Blog:
Accumulate Bitcoin for Long-Term Gains: 5 Stocks in Focus
The cryptocurrency market suffered a severe blow in the first week of August. Bitcoin (BTC), the largest cryptocurrency globally, hit an all-time high of $73,750 on Mar 14. However, the broader market bloodbath last week also saw cryptocurrencies suffering. Consequently, Bitcoin fell to below $55,000.
This year, Bitcoin gathered momentum after the Securities and Exchange Commission approved 11 spot Bitcoin exchange-traded funds (ETFs) in January. The ETFs represent a landmark in Bitcoin's journey, offering both retail and institutional investors a regulated and accessible means to invest in the cryptocurrency. This development not only enhances liquidity but also contributes to price stability.
However, the price of Bitcoin saw a steady decline from April. One of the major reasons for the decline in Bitcoin price was the halving event that took place in April. The halving event, which reduces the reward for mining new blocks by half to cap the total supply of Bitcoins at 21 million, typically increases demand and drives up prices. Despite this, Bitcoin saw a significant drop, with its price falling below $59,000.
Meanwhile, following the release of a few weak economic data in July, especially the labor market data, the CME FedWatch currently shows a 100% probability of a 25-basis point interest rate cut in September and a 51.5% chance of a 50-basis point rate cut.
For November, market participants estimate a 100% probability that the total (year-to-date) rate cut will be 50 basis points and a 62.6% probability that the total rate cut will be 75 basis points. Likewise for December, market participants estimate a 100% probability that the total rate cut will be 75 basis points and a 72.4% probability that the total rate cut will be 1% in 2024.
At this stage, investors should think from a long-term perspective. The Fed is undoubtedly approaching the end of the higher rate regime. A low interest rate is beneficial to high growth-oriented industries such as technology, consumer discretionary and cryptocurrency.
Therefore, investors should accumulate bitcoin using a buy-on-the-dip strategy. Every dip in the bitcoin price 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
We have narrowed our search to five bitcoin-oriented stocks that have strong potential for the rest of 2024.
CME Group Inc.'s options give the buyer of the call/put the right to buy/sell cryptocurrency futures contracts at a specific price at some future date. CME offers Bitcoin and ether options based on the exchange's cash-settled standard and micro-Bitcoin and Ethereum futures contracts.
CME Group has an expected earnings growth rate of 4.9% for the current year. The Zacks Consensus Estimate for current-year earnings has improved 0.3% over the last 30 days. CME currently carries a Zacks Rank #3 (Hold).
NVIDIA Corp.is a semiconductor industry giant and one of the biggest success stories of 2023 and 2024. As a leading designer 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% (ending January 2025). The Zacks Consensus Estimate for its current-year earnings has improved 0.4% over the last 30 days. NVDA currently carries a Zacks Rank #2 (Buy).
Interactive Brokers Group Inc. is a global automated electronic broker. IBKR 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 18.4% for the current year. The Zacks Consensus Estimate for current-year earnings has improved 1.6% over the last 30 days. IBKR currently sports a Zacks Rank #1 (Strong Buy). You can see the complete list of today's Zacks #1 Rank stocks here.
Robinhood Markets Inc. operates a financial services platform in the United States. Its platform allows users to invest in stocks, exchange-traded funds, options, gold, and cryptocurrencies. HOOD buys and sells Bitcoin, Ethereum, Dogecoin, and other cryptocurrencies using its Robinhood Crypto platform.
Robinhood Markets has an expected earnings growth rate of more than 100% for the current year. The Zacks Consensus Estimate for current-year earnings has improved 14% over the last seven days. HOOD currently carries a Zacks Rank #2.
Block Inc. 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 the Cash App can buy, sell, send and receive Bitcoin. In addition, SQ's decentralized tbd platform allows developers to build decentralized finance applications that run on programmable blockchains. SQ is also one of the largest Bitcoin investors.
Block has an expected earnings growth rate of 98.9% for the current year. The Zacks Consensus Estimate for current-year earnings has improved 9.2% over the last 30 days. SQ currently carries a Zacks Rank #3.
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 CME, NVIDIA, Interactive Brokers Group, Robinhood Markets and Block
For Immediate Release
Chicago, IL – August 16, 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: CME Group Inc.'s (CME - Free Report) , NVIDIA Corp. (NVDA - Free Report) , Interactive Brokers Group Inc. (IBKR - Free Report) , Robinhood Markets Inc. (HOOD - Free Report) and Block Inc. (SQ - Free Report) .
Here are highlights from Thursday’s Analyst Blog:
Accumulate Bitcoin for Long-Term Gains: 5 Stocks in Focus
The cryptocurrency market suffered a severe blow in the first week of August. Bitcoin (BTC), the largest cryptocurrency globally, hit an all-time high of $73,750 on Mar 14. However, the broader market bloodbath last week also saw cryptocurrencies suffering. Consequently, Bitcoin fell to below $55,000.
This year, Bitcoin gathered momentum after the Securities and Exchange Commission approved 11 spot Bitcoin exchange-traded funds (ETFs) in January. The ETFs represent a landmark in Bitcoin's journey, offering both retail and institutional investors a regulated and accessible means to invest in the cryptocurrency. This development not only enhances liquidity but also contributes to price stability.
However, the price of Bitcoin saw a steady decline from April. One of the major reasons for the decline in Bitcoin price was the halving event that took place in April. The halving event, which reduces the reward for mining new blocks by half to cap the total supply of Bitcoins at 21 million, typically increases demand and drives up prices. Despite this, Bitcoin saw a significant drop, with its price falling below $59,000.
Meanwhile, following the release of a few weak economic data in July, especially the labor market data, the CME FedWatch currently shows a 100% probability of a 25-basis point interest rate cut in September and a 51.5% chance of a 50-basis point rate cut.
For November, market participants estimate a 100% probability that the total (year-to-date) rate cut will be 50 basis points and a 62.6% probability that the total rate cut will be 75 basis points. Likewise for December, market participants estimate a 100% probability that the total rate cut will be 75 basis points and a 72.4% probability that the total rate cut will be 1% in 2024.
At this stage, investors should think from a long-term perspective. The Fed is undoubtedly approaching the end of the higher rate regime. A low interest rate is beneficial to high growth-oriented industries such as technology, consumer discretionary and cryptocurrency.
Therefore, investors should accumulate bitcoin using a buy-on-the-dip strategy. Every dip in the bitcoin price 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
We have narrowed our search to five bitcoin-oriented stocks that have strong potential for the rest of 2024.
CME Group Inc.'s options give the buyer of the call/put the right to buy/sell cryptocurrency futures contracts at a specific price at some future date. CME offers Bitcoin and ether options based on the exchange's cash-settled standard and micro-Bitcoin and Ethereum futures contracts.
CME Group has an expected earnings growth rate of 4.9% for the current year. The Zacks Consensus Estimate for current-year earnings has improved 0.3% over the last 30 days. CME currently carries a Zacks Rank #3 (Hold).
NVIDIA Corp.is a semiconductor industry giant and one of the biggest success stories of 2023 and 2024. As a leading designer 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% (ending January 2025). The Zacks Consensus Estimate for its current-year earnings has improved 0.4% over the last 30 days. NVDA currently carries a Zacks Rank #2 (Buy).
Interactive Brokers Group Inc. is a global automated electronic broker. IBKR 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 18.4% for the current year. The Zacks Consensus Estimate for current-year earnings has improved 1.6% over the last 30 days. IBKR currently sports a Zacks Rank #1 (Strong Buy). You can see the complete list of today's Zacks #1 Rank stocks here.
Robinhood Markets Inc. operates a financial services platform in the United States. Its platform allows users to invest in stocks, exchange-traded funds, options, gold, and cryptocurrencies. HOOD buys and sells Bitcoin, Ethereum, Dogecoin, and other cryptocurrencies using its Robinhood Crypto platform.
Robinhood Markets has an expected earnings growth rate of more than 100% for the current year. The Zacks Consensus Estimate for current-year earnings has improved 14% over the last seven days. HOOD currently carries a Zacks Rank #2.
Block Inc. 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 the Cash App can buy, sell, send and receive Bitcoin.
In addition, SQ's decentralized tbd platform allows developers to build decentralized finance applications that run on programmable blockchains. SQ is also one of the largest Bitcoin investors.
Block has an expected earnings growth rate of 98.9% for the current year. The Zacks Consensus Estimate for current-year earnings has improved 9.2% over the last 30 days. SQ currently carries a Zacks Rank #3.
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.