For Immediate Release
Chicago, IL – April 21, 2023 – Today, Zacks Investment Ideas feature highlights Nvidia NVDA, First Solar FSLR, Intuitive Surgical ISRG, Dexcom DXCM and Asure Software ASUR.
Riding the Wave: 3 Industry Groups Making a Splash
Thus so far this year, small-cap stocks and large-cap tech have stolen the show – for differing reasons. Small caps have garnered attention due to their relative weakness. The demise of Silicon Valley Bank has thrown doubt at many stocks. on the other hand, big-cap tech has made an impact for the opposite reason. QQQ is up nearly 20% while underlying components such as Nvidia are higher by a whopping 91% or more.
One common phenomenon in the stock market is industry group rotation, which refers to the shifting of investor preferences from one industry to another. Even though the trends mentioned above show little signs of slowing down, they will eventually diverge from the trend and other industries will take the limelight. Investors should be prepared should that happen. Even if it doesn’t happen right away, it also makes sense to diversify. Today we will discuss 3 industries (and stocks within them) worth watching:
The clean energy sector has been on a growth trajectory for years as geopolitical conflicts have disrupted the supply of fossil fuels, world governments push for clean energy agendas, and solar technology improves and becomes more efficient. Investors should stick to the group’s leading stock which is Zacks Rank #2 (Buy) stock First Solar. FSLR is currently set up in a good-looking base structure ahead of its earnings which are due April 27th.
The medical products industry often flies under the radar. However, the group has some attractive characteristics that make it worth investing in. Generally, companies within this group tend to be recession-proof, stable, and offer long-term growth. Wednesday, surgical robotics maker Intuitive Surgical injected life into the industry after it beat earnings expectations. The stock shot higher by more than 10% in the session on expanding volume.
Even though the stock was extended in price at this juncture, investors may want to turn their attention to glucose monitoring system makers Dexcom.DXCM is breaking out of a multi-month base ahead of its April 27th EPS report.
It’s easy to see why the Internet-Software group is a top 25% group. Whenever I see multiple stocks in an industry breaking out simultaneously, my eyes light up. It is difficult to find an industry with more momentum than the enterprise software group. Enterprise software companies like Assure Software broke out last week and are up 15% since.
Markets have been known to have periods of “nasty” industry group rotations, catching investors off guard. Investors should look at the three under-the-radar groups above as ways of diversifying into other parts of the market.
Why Haven’t You Looked at Zacks’ Top Stocks?
Since 2000, our top stock-picking strategies have blown away the S&P’s +6.2 average gain per year. Amazingly, they worried with average gains of +46.4%, +49.5% and +55.2% per year. Today you can access their live picks without cost or obligation.
See Stocks Free >>
Zacks Investment Research
800-767-3771 ext. 9339
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 were identified and described or would be profitable. All information is current as of the date 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.
Want the latest recommendations from Zacks Investment Research? Today, you can download the 7 Best Stocks for the Next 30 Days. Click to get this free report
First Solar, Inc. (FSLR) : Free Stock Analysis Report
Intuitive Surgical, Inc. (ISRG) : Free Stock Analysis Report
NVIDIA Corporation (NVDA) : Free Stock Analysis Report
DexCom, Inc. (DXCM) : Free Stock Analysis Report
Asure Software Inc (ASUR) : Free Stock Analysis Report
To read this article on Zacks.com click here.
Zacks Investment Research