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Nasdaq Rally Continues: 4 Internet Stocks to Buy Right Now
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The Nasdaq Composite index is scaling new highs driven by investor optimism stemming from the reopening economies globally, including the U.S. economy. On Jun 9, the index rallied to a new record high — closing the trading session at 9,953.75, up 0.3%. Further, the index was up 45% from its lowest level of 6,860.67 on Mar 23, attained during the ongoing pandemic scenario. Furthermore, Nasdaq has gained 10.9% on a year-to-date basis.
A number of stimulus packages announced by the Federal Reserve to reduce the burden of coronavirus (COVID-19)-induced negative impact on the economy have been contributing significantly to the stock market recovery. Further, revamping activities in major economic zonesand sectors remain major positives.
For instance, the technology sector, which has been countering the COVID-19-induced disruptions by venturing into the new growth avenues driven by growing proliferation of Internet usage worldwide, has contributed substantially to the stock market rally.
An uptick in the demand for Internet-based services and products as a result of current work-from-home trend remains noteworthy. Moreover, the practice of social distancing in a bid to contain the contagious virus has bolstered the usage of online and e-commerce services globally.
Further, increasing adoption of high-speed Internet services and strengthening deployment of 5G technology have been tailwinds.
Therefore, Internet stocks hold promise in this coronavirus-hit world.
Prospects of Internet Stocks
Solid adoption of video conferencing tools and software in the present scenario holds promise for Internet stocks. Notably, most of the companies and government organizations are considering video conferencing as the definitive solution to continue their work and production by connecting with employees remotely.
Tech companies like Microsoft (MSFT - Free Report) , Alphabet’s (GOOGL - Free Report) Google, Cisco and Zoom Communications (ZM - Free Report) , to name a few are constantly advancing their respective video conferencing tool.
Per a report from Global Market Insights, the global video conferencing market s expected to go beyond $50 billion by 2026.
Further, Internet stocks are gaining from rapid adoption of cloud computing technology. Cloud services are helping organizations remotely process a lot of information, build and run crucial applications and services, and enable employees to work together from anywhere across the globe.
Additionally, Internet-based companies that are integrating AI, ML and deep learning into their solutions for real-time analysis of user data are likely to gain traction in the near term.
Also, growing clout of social-media platforms, rising adoption of Internet-of-Things (IoT), increasing proliferation of streaming services and online gaming, and improving user penetration of online payment services remain positives.
Furthermore, e-commerce and online delivery services are gaining rapid momentum worldwide primarily because people are avoiding outdoors in a bid to avoid contracting the virus. This is key catalyst for the Internet stocks.
Our Picks
Per the Zacks’ proprietary methodology, stocks with the combination of a Growth Score of A or B and a Zacks Rank #1 (Strong Buy) or 2 (Buy) offer solid investment opportunities.
These stocks have also outperformed the S&P 500 composite on a year-to-date basis.
Zoom Communications is gaining significant traction from the COVID-19-induced remote-working and online-learning wave. Easy to deploy, use, manage and scalability make Zoom Video’s software popular among customers. Moreover, the company’s expanding international presence is a key catalyst.
Zoom Communications currently flaunts a Zacks Rank of 1 and a Growth Score of B. The consensus mark for fiscal 2021 earnings has been revised upward by 174.4% in the past 30 days to $1.18 per share.
eBay (EBAY - Free Report) is ridingon strong momentum across its managed payments offerings, which bodes well for its gross merchandise volume.Additionally, strength across promoted listings is a major positive.Further, the company’s initiatives toward enhancing seller experience by offering innovative seller tools, and delivering better buyer experience by building product catalogs utilizing structured data hold promise.
eBay currently sports a Zacks Rank of 1 and a Growth Score of B. The consensus mark for 2020 earnings has been revised upward by 9.4% in the past 30 days to $3.38 per share.
Zillow Group (ZG - Free Report) is gaining on strong growth in its Homes segment, courtesy of robust demand for Zillow Offers. Moreover, momentum in Premier Agent business bodes well. The company has also resumed home buying in multiple markets after a temporary pause as the economy starts reopening amid the COVID-19 pandemic.
Zillow Group currently carries a Zacks Rank #2 and a Growth Score of A. The Zacks Consensus Estimate for 2020 is pegged at a loss of $1.08 per share, having narrowed from a loss of $1.11 in the past 30 days.
Okta (OKTA - Free Report) is benefiting from robust demand for identity management services globally, triggered by coronavirus crisis induced work-from-home wave. Okta Identity Cloud platform offers a suite of applications that manage and secure identities.
Okta currently carries a Zacks Rank #2 and a Growth Score of A. The Zacks Consensus Estimate for fiscal 2021 is pegged at a loss of 19 cents per share, having narrowed from a loss of 35 cents in the past 30 days.
Breakout Biotech Stocks with Triple-Digit Profit Potential
The biotech sector is projected to surge beyond $775 billion by 2024 as scientists develop treatments for thousands of diseases. They’re also finding ways to edit the human genome to literally erase our vulnerability to these diseases.
Zacks has just released Century of Biology: 7 Biotech Stocks to Buy Right Now to help investors profit from 7 stocks poised for outperformance. Our recent biotech recommendations have produced gains of +50%, +83% and +164% in as little as 2 months. The stocks in this report could perform even better.
Image: Bigstock
Nasdaq Rally Continues: 4 Internet Stocks to Buy Right Now
The Nasdaq Composite index is scaling new highs driven by investor optimism stemming from the reopening economies globally, including the U.S. economy. On Jun 9, the index rallied to a new record high — closing the trading session at 9,953.75, up 0.3%. Further, the index was up 45% from its lowest level of 6,860.67 on Mar 23, attained during the ongoing pandemic scenario. Furthermore, Nasdaq has gained 10.9% on a year-to-date basis.
A number of stimulus packages announced by the Federal Reserve to reduce the burden of coronavirus (COVID-19)-induced negative impact on the economy have been contributing significantly to the stock market recovery. Further, revamping activities in major economic zonesand sectors remain major positives.
For instance, the technology sector, which has been countering the COVID-19-induced disruptions by venturing into the new growth avenues driven by growing proliferation of Internet usage worldwide, has contributed substantially to the stock market rally.
An uptick in the demand for Internet-based services and products as a result of current work-from-home trend remains noteworthy. Moreover, the practice of social distancing in a bid to contain the contagious virus has bolstered the usage of online and e-commerce services globally.
Further, increasing adoption of high-speed Internet services and strengthening deployment of 5G technology have been tailwinds.
Therefore, Internet stocks hold promise in this coronavirus-hit world.
Prospects of Internet Stocks
Solid adoption of video conferencing tools and software in the present scenario holds promise for Internet stocks. Notably, most of the companies and government organizations are considering video conferencing as the definitive solution to continue their work and production by connecting with employees remotely.
Tech companies like Microsoft (MSFT - Free Report) , Alphabet’s (GOOGL - Free Report) Google, Cisco and Zoom Communications (ZM - Free Report) , to name a few are constantly advancing their respective video conferencing tool.
Per a report from Global Market Insights, the global video conferencing market s expected to go beyond $50 billion by 2026.
Further, Internet stocks are gaining from rapid adoption of cloud computing technology. Cloud services are helping organizations remotely process a lot of information, build and run crucial applications and services, and enable employees to work together from anywhere across the globe.
Additionally, Internet-based companies that are integrating AI, ML and deep learning into their solutions for real-time analysis of user data are likely to gain traction in the near term.
Also, growing clout of social-media platforms, rising adoption of Internet-of-Things (IoT), increasing proliferation of streaming services and online gaming, and improving user penetration of online payment services remain positives.
Furthermore, e-commerce and online delivery services are gaining rapid momentum worldwide primarily because people are avoiding outdoors in a bid to avoid contracting the virus. This is key catalyst for the Internet stocks.
Our Picks
Per the Zacks’ proprietary methodology, stocks with the combination of a Growth Score of A or B and a Zacks Rank #1 (Strong Buy) or 2 (Buy) offer solid investment opportunities.
Based on this, here we pick four stocks that boast a perfect mix of elements and strong fundamentals. You can see the complete list of today’s Zacks #1 Rank stocks here.
These stocks have also outperformed the S&P 500 composite on a year-to-date basis.
Zoom Communications is gaining significant traction from the COVID-19-induced remote-working and online-learning wave. Easy to deploy, use, manage and scalability make Zoom Video’s software popular among customers. Moreover, the company’s expanding international presence is a key catalyst.
Zoom Communications currently flaunts a Zacks Rank of 1 and a Growth Score of B. The consensus mark for fiscal 2021 earnings has been revised upward by 174.4% in the past 30 days to $1.18 per share.
eBay (EBAY - Free Report) is ridingon strong momentum across its managed payments offerings, which bodes well for its gross merchandise volume.Additionally, strength across promoted listings is a major positive.Further, the company’s initiatives toward enhancing seller experience by offering innovative seller tools, and delivering better buyer experience by building product catalogs utilizing structured data hold promise.
eBay currently sports a Zacks Rank of 1 and a Growth Score of B. The consensus mark for 2020 earnings has been revised upward by 9.4% in the past 30 days to $3.38 per share.
Zillow Group (ZG - Free Report) is gaining on strong growth in its Homes segment, courtesy of robust demand for Zillow Offers. Moreover, momentum in Premier Agent business bodes well. The company has also resumed home buying in multiple markets after a temporary pause as the economy starts reopening amid the COVID-19 pandemic.
Zillow Group currently carries a Zacks Rank #2 and a Growth Score of A. The Zacks Consensus Estimate for 2020 is pegged at a loss of $1.08 per share, having narrowed from a loss of $1.11 in the past 30 days.
Okta (OKTA - Free Report) is benefiting from robust demand for identity management services globally, triggered by coronavirus crisis induced work-from-home wave. Okta Identity Cloud platform offers a suite of applications that manage and secure identities.
Okta currently carries a Zacks Rank #2 and a Growth Score of A. The Zacks Consensus Estimate for fiscal 2021 is pegged at a loss of 19 cents per share, having narrowed from a loss of 35 cents in the past 30 days.
Breakout Biotech Stocks with Triple-Digit Profit Potential
The biotech sector is projected to surge beyond $775 billion by 2024 as scientists develop treatments for thousands of diseases. They’re also finding ways to edit the human genome to literally erase our vulnerability to these diseases.
Zacks has just released Century of Biology: 7 Biotech Stocks to Buy Right Now to help investors profit from 7 stocks poised for outperformance. Our recent biotech recommendations have produced gains of +50%, +83% and +164% in as little as 2 months. The stocks in this report could perform even better.
See these 7 breakthrough stocks now>>