雅虎香港財經 Buy These 5 Stocks on the Dip to Gain From Wall Street Rally
Wall Street’s impressive bull run in 2023, which reversed the nightmare of 2022 has continued in the first half of 2024. U.S. stock markets’ northward journey is likely to continue in the second half of this year. Year to date, the three major stock indexes — the Dow, the S&P 500 and the Nasdaq Composite — have rallied 3.1%, 13% and 16.4%, respectively.
Peak inflation is far behind us. The labor market remains resilient. The global supply-chain system has been restoring slowly since last year as U.S. corporate behemoths are rescheduling their supply-chain system’s bypassing of China. The fundamentals of the U.S. economy remain firm despite record-high inflation and interest rate.
The ongoing tech rally since the beginning of 2023 was led by a massive thrust toward artificial intelligence (AI), especially generative AI. The rapid penetration of digital technologies and the Internet worldwide during the lockdown period, ushered in significant adoption of AI.
We believe that the AI space is yet to unfold in the United States and international markets. Once that happens, it will generate huge business opportunities for technology companies producing high-end products.
Our Top Picks
At this stage, buying on the dip will be the best investment strategy to make the most of the ongoing Wall Street rally. We have narrowed our search to five large-cap (market capital > $10 billion) stocks with attractive valuations.
The stocks have strong potential for 2024 and have seen positive earnings estimate revisions in the last 60 days. Each of our picks carries a Zacks Rank #2 (Buy). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
The chart below shows the price performance of our five picks year to date.
Image Source: Zacks Investment Research
Align Technology Inc. ALGN is well-positioned to drive the digital revolution in the dental industry with Invisalign clear aligners, Itero Scanners and the Align digital platform. ALGN is leveraging innovations and market expansion efforts to offset the impact of inflation and supply disruptions. The increased adoption of the Invisalign IPE system buoys optimism, with A Align Technology launching the device in several geographies.
Strength in the teen and younger patient business is driven by the growth of Invisalign First. ALGN is also gaining market share in teen markets banking on campaigns with influencers. Further, strong solvency is highly promising.
Align Technology has an expected revenue and earnings growth rate of 6.8% and 12.4%, respectively, for the current year. The Zacks Consensus Estimate for current-year earnings has improved 3.3% over the last 30 days. The stock price of ALGN is currently trading at a 38.1% discount to its 52-week high.
Dell Technologies Inc. DELL is benefiting from strong demand for AI servers driven by ongoing digital transformation and heightened interest in generative AI applications. DELL’s PowerEdge XE9680L AI-optimized server is very much in demand. Strong enterprise demand for AI-optimized servers is aiding DELL.
DELL is witnessing demand from a diversified customer base that includes the likes of higher education institutions, financial services, health care and life services and manufacturing. An expanding partner base that consists of the likes of NVIDIA, Microsoft, Meta Platforms and Imbue has been a major growth driver.
Dell Technologies has an expected revenue and earnings growth rate of 9.4% and 9.7%, respectively, for the current year (ending January 2025). The Zacks Consensus Estimate for current-year earnings has improved 0.4% over the last seven days. The stock price of DELL is currently trading at a 26.3% discount to its 52-week high.
Okta Inc. OKTA provides identity management platforms for enterprises, small and medium-sized businesses, universities, non-profits, and government agencies in the United States and internationally.
OKTA’s products consist of Okta Information Technology Products and Okta for Developers. Okta IT Products include Single Sign-On, Mobility Management, Adaptive Multi-Factor Authentication, Lifecycle Management and Universal Directory. Okta for Developers includes Complete Authentication, User Management, Application Programming Interface Access Management and Developer Tools.
Okta has an expected revenue and earnings growth rate of 11.9% and 50.6%, respectively, for the current year (ending January 2025). The Zacks Consensus Estimate for current-year earnings has improved 5.7% over the last 30 days. The stock price of OKTA is currently trading at a 22.2% discount to its 52-week high.
Global Payments Inc. GPN has benefited from the solid contributions of its merchant business. The growing demand for digital payment methods is expected to support GPN’s transaction volume growth.
The EVO Payments buyout is enhancing GPN’s capabilities, as evidenced by the results of recent quarters. GPN’s favorable 2024 outlook further buoys investors’ confidence. We expect revenues to increase 5.5% year over year in 2024.
Global Payments has an expected revenue and earnings growth rate of 6.4% and 11.6%, respectively, for the current year. The Zacks Consensus Estimate for current-year earnings has improved 0.1% over the last 60 days. The stock price of GPN is currently trading at a 31.4% discount to its 52-week high.
Roblox Corp. RBLX develops and operates an online entertainment platform. RBLX offers Roblox Client, an application that allows users to explore 3D digital worlds, and Roblox Studio, a toolset that allows developers and creators to build, publish and operate 3D experiences and other content. RBLX also provides Roblox Cloud, a solution that provides services and infrastructure to power the human co-experience platform.
Roblox has an expected revenue and earnings growth rate of 15.9% and 9.1%, respectively, for the current year. The Zacks Consensus Estimate for current-year earnings has improved 18.7% over the last 30 days. The stock price of RBLX is currently trading at a 25.9% discount to its 52-week high.
Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report
Dell Technologies Inc. (DELL) : Free Stock Analysis Report
Align Technology, Inc. (ALGN) : Free Stock Analysis Report
Global Payments Inc. (GPN) : Free Stock Analysis Report
Okta, Inc. (OKTA) : Free Stock Analysis Report
Roblox Corporation (RBLX) : Free Stock Analysis Report
