What's working in stocks right now? Two words: Technology and Healthcare. Specifically, any company growing because of its leverage to secular megatrends in software, semiconductors, fintech, and biotechnology like CRISPR Therapeutics CRSP.
Today in Cook's Kitchen, I took a quick dive into some of these hot spots. But first I showed why only "deep value" investors need to tread into areas like the Financial and Industrial sectors, where JPMorgan JPM and Boeing look untouchable.
My marquee stocks for understanding where the growth remains hot are not just the mega-stable monsters like Microsoft, Apple, and Amazon. There are lots of chip, big-data, and payments names you want to be ready to buy the dips on like NVIDIA NVDA, PayPal PYPL, and Alteryx AYX.
Be sure to watch the video to see where I would buy each of these, and more, on the current pullback and subsequent downswings this summer.
Some software heroes I didn't get to in the charts, but you should have on your dip-buying radar, are ServiceNow NOW and The Trade Desk TTD.
Get Ready for GTC Fireworks in May!
And before I forget, Thursday morning brings the big show from Jensen Huang and the NVIDIA crew at their GPU Tech Conference (GTC) -- the first ever virtual version. We have come to expect great surprises from Jensen at these events across all his verticals from gaming and cars to data centers and the frontiers of machine learning, deep learning, and AI.
Wall Street analysts obviously felt left behind going into the event because they've been scrambling to raise their price targets this month from below $300 to over $340. Here were some standout moves...
Needham analyst Rajvindra Gill raised the firm's price target on NVDA to $360 from $270 after incorporating the acquisition of Mellanox into his model, which added 95-cents of incremental EPS in fiscal 2022. Gill also boosted NVDA's gaming estimates to reflect higher Nintendo Switch estimates and his data center estimates on the increase in spending by the hyperscalers. For better or worse, he noted, the stay-at-home economy will drive upside in gaming.
Piper Sandler analyst Harsh Kumar raised their price target on NVDA to $350 from $330 as the Mellanox deal "markedly" increased his revenue and earnings estimates after integrating the business models. Mellanox is a steady growth company that plays in the areas of ethernet and infiniband interconnect and Kumar believes the combined company is "multiple steps closer" to being a complete provider of connectivity solutions, while on the verge of being a very vital player in compute.
Wedbush analyst Matt Bryson raised the i-bank's price target on NVDA to $340 from $311 ahead of Thursday's GTC Keynote and next week's earnings. Bryson has been expecting that NVDA will introduce their new Ampere architecture tomorrow during CEO Jensen Huang's keynote. There's also a good chance the company announces upside to this year's guidance.
Questionable Pastimes: Cruises and Grills
Finally in today's chart dive video, I look at two consumer discretionary stocks that investors love, or love to hate, Chipotle Mexican Grill CMG and Royal Caribbean Cruises RCL. Be sure to tune in to hear where I would buy (or sell) them.
Kevin Cook is a Senior Stock Strategist for Zacks Investment Research where he runs the TAZR Trader and Healthcare Innovators portfolios. Click "Follow Author" above to receive his latest stock research and macro analysis.
The Hottest Tech Mega-Trend of All
Last year, it generated $24 billion in global revenues. By 2020, it's predicted to blast through the roof to $77.6 billion. Famed investor Mark Cuban says it will produce ""the world's first trillionaires,"" but that should still leave plenty of money for regular investors who make the right trades early.
See Zacks' 3 Best Stocks to Play This Trend >>
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JPMorgan Chase Co (JPM) : Free Stock Analysis Report
NVIDIA Corporation (NVDA) : Free Stock Analysis Report
Royal Caribbean Cruises Ltd (RCL) : Free Stock Analysis Report
Chipotle Mexican Grill Inc (CMG) : Free Stock Analysis Report
ServiceNow Inc (NOW) : Free Stock Analysis Report
PayPal Holdings Inc (PYPL) : Free Stock Analysis Report
The Trade Desk Inc (TTD) : Free Stock Analysis Report
CRISPR Therapeutics AG (CRSP) : Free Stock Analysis Report
Alteryx Inc (AYX) : Free Stock Analysis Report
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