Remember, the September episode of the Zacks Ultimate Strategy Session is now available for viewing! Don't miss your chance to hear:
• Tracey and Ryan Agree to Disagree on how risky it is to invest in companies with visionary CEOs
• Sheraz answers your questions in Zacks Mailbag
• Sheraz and Ryan choose one portfolio to give feedback for improvement
• Market conditions from both fundamental and technical views
• The full list of top-performing stocks over the past 30 days
• New stocks added to the ZU portfolio
• And much more
Simply log on to Zacks.com and view the September episode here. And please let us know what you think of these monthly episodes. Email all feedback to email@example.com.
True to form, Apple had a much better market performance on the day after its big September event than it did the day of. The iPhone maker was up more than 2.4% on Thursday, which lifted the entire tech sector and gave the major indices their best session of the week.
The S&P is back over 2900 after today's gain of 0.53% to 2904.2. The index is now just about 10 points away from a new all-time high. You undoubtedly remember that the S&P and NASDAQ amassed four straight days of records just a couple weeks ago, which ended on August 30 on news that President Trump was willing to implement an additional $200 billion in tariffs on China (which still hasn't happened).
Speaking of the NASDAQ, it had the best performance of all on Thursday with a surge of 0.75% to 8013.7…and it really needed it. The tech-heavy index had its worst start to September in years, so the Apple impact came at the perfect time. It was also a relief to see Micron increase 4.5% after several rough sessions on fears for chipmakers. The NASDAQ still has a way to go before getting back to its all-time high of 8109.7.
The Dow jumped 0.57% today (or nearly 150 points) to get back over 26K at 26,146. This index is especially interested in some progress on trade. The U.S. and China might be meeting again soon to try and overcome their differences on the topic, while hope springs eternal that Canada will at some point agree to join the U.S.-Mexico agreement. But for today, the index is happy to ride the Apple train.
"This is the most reluctant market rally I can remember. Last week's pullback feels like it happened yesterday and this bounce higher has been anything but linear. Yet somehow, some way, this market has found itself back within earshot of all-time highs," said Dave Bartosiak, editor of Surprise Trader , Momentum Trader and Blockchain Innovators .
"A truly remarkable run. I've seen tweets about the lack of market breadth and cautions about valuation. That's always a concern for the market but I think what investors said today is that they are ready to cheer this market higher. It looks like 3k on the S&P 500 is right around the corner."
Today's Portfolio Highlights:
Surprise Trader: This portfolio gets pretty quiet outside of earnings season, so the real surprise today is that Dave added a new position! AutoZone (AZO) has beaten the Zacks Consensus Estimate for four straight quarters, and now its preparing to report again before the bell on Tuesday, September 18. Rising earnings estimates have made this auto parts company a Zacks Rank #2 (Buy) and its part of a space in the top 4% of the Zacks Industry Rank. The editor added AZO on Thursday with a 12.5% allocation. Read the full commentary for more.
TAZR Trader: You may not know Dine Brands Global (DIN) by name, but you've certainly heard of their Applebee's and IHOP brands. The stock had recently surged past $92, but pulled back after a bullish analyst downgraded the stock as part of a valuation call. With consumer confidence and spending in strong trends, Kevin thinks DIN has a lot more room to run...especially as we get nearer to the holidays. Therefore, this stock is a bargain in the high $70s, especially with price targets nearly to $100. The editor also appreciates that significant free cash flow keeps DIN funding a growing dividend and buying back shares. Get more specifics on this new buy in the complete commentary.
Technology Innovators: Healthcare stocks have been doing well of late, but that's not why Brian Bolan added Veeva Systems (VEEV) on Thursday. The editor picked up this healthcare tech play because it has an excellent history of overperforming expectations, including three straight beat-and-raise reports. Most recently on August 23, it posted a positive surprise of 14% with topline growth of 25%, while guiding its earnings and sales guidance above Wall Street. Check out the full write up for more on this new addition, including a look at its valuation.
Jim Giaquinto Recommendations from Zacks' Private Portfolios:
Believe it or not, this article is not available on the Zacks.com website. The commentary is a partial overview of the daily activity from Zacks' private recommendation services. If you would like to follow our Buy and Sell signals in real time, we've made a special arrangement for readers of this website. Starting today you can see all the recommendations from all of Zacks' portfolios absolutely free for 7 days. Our services cover everything from value stocks and momentum trades to insider buying and positive earnings surprises (which we've predicted with an astonishing 80%+ accuracy). Click here to "test drive" Zacks Ultimate for FREE >>