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The Zacks Analyst Blog Highlights: Apple, Facebook, NVIDIA, Micron Technology and Broadcom

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For Immediate Release

Chicago, IL - Jan 05, 2018 - Zacks.com announces the list of stocks featured in the Analyst Blog. Every day the Zacks Equity Research analysts discuss the latest news and events impacting stocks and the financial markets. Stocks recently featured in the blog include AppleAAPL , FacebookFB , NVIDIANVDA , Micron Technology, Inc.MU and Broadcom LimitedAVGO .

Today, Zacks is promoting its ''Buy'' stock recommendations. Get #1Stock of the Day pick for free.

Here are highlights from Thursday's Analyst Blog:

5 Must-Buy Tech Stocks for 2018

After a banner year, Wall Street's tech big cheese continues to scale new highs in 2018. Computer and software makers, Internet players and chipmakers are having a ball after the repatriation tax holiday in the GOP's plan is expected to boost stock prices of these companies, while also stimulating the U.S. economy.

And if a few worrywarts feel that the stock of the tech biggies have become pricey relative to earnings, then the continued strength in profits and sales might drive share prices higher. This calls for investing in this space for handsome returns.

Tech Stocks Soar in New Year

Tech stocks have easily outperformed the broader equity market's rally last year. While the Nasdaq soared 29.6%, the broader S&P 500 gained 21.8%. Tech stocks marched higher this year as well, with the Nasdaq closing above the coveted 7,000 mark. The tech-rich index raced to a fresh 1000-point milestone in around eight months, a pace not seen since the tech boom period.

Tech heavyweights collectively contributed almost two-third of the points that helped the Nasdaq climb from one 1000-point to another, as per stock-market research firm Birinyi Associates.

But, will the lofty valuation lead to a fall in 2018? Wall Street analysts mostly disagree, and rightly so. Netflix is poised for a bigger rise this year as it is far ahead of peers in building subscription video services. The company is also rumored to be acquired by Apple, which may drive its stock further north. Apple, by the way, is benefitting from steady iPhone sales, spurt in services segment and resurgence in Mac and iPad sales.

While Alphabet's strong advertising revenues and improving paid click growth remain growth drivers, Microsoft's rapid adoption of Azure and Office 365 will remain a key catalyst in the near future. And when it comes to Facebook, the company's efforts in mobile and live videos continue to pay off.

Semiconductor Stocks Rally

A steady rally among semiconductors supported the broader tech sector at the beginning of this year, while the PHLX Semiconductor index gained nearly 40% last year. These makers of computer chips utilized in everything from smartphones to self-driving cars, in fact, recently got a boost from a survey by the Semiconductor Industry Association. The report showed that worldwide chip sales climbed 21.5% in November from a year earlier.

While all the major semiconductors made headway in recent times, NVIDIA has progressed by leaps and bounds. The world's leading graphics chipmaker's commendable position in areas such as Artificial Intelligence (AI), deep learning and driverless cars industry are making investors optimistic about its prospects.

Catalysts Behind the Surge

The House of Representatives approved the biggest overhaul of the U.S. tax code in 30 years, which mostly supported the gains among the manufacturers of internal technologies -the semiconductor makers and the software industry.

As per Statista, corporate taxation rate in the United States was among the world's highest. This explains why most of the tech majors stash cash overseas. In fact, a Nikkei Asian Review showed that combined overseas cash reserves of major tech companies exceeded the Japanese government's overall tax revenues in fiscal 2016.

But, the headline-grabbing move of the bill was slashing the corporate tax rate from 35% to 21%. This in turn will make tech players repatriate trillions of dollars held abroad and eventually drive their after-tax earnings. Tech companies can also use this extra cash for research and development and M&A activities.

Top 5 Tech Behemoths to Buy Now

Investors, thus, should double down on the hottest tech behemoths after they cross one record after another, primarily, backed by favorable government policy. We have selected five such stocks that flaunt a Zacks Rank #1 (Strong Buy) or 2 (Buy).

Apple designs, manufactures, and markets mobile communication and media devices, and personal computers. The company has a Zacks Rank #2. The Zacks Consensus Estimate for its current-year earnings rose 0.3% in the last 60 days. The stock's expected growth rate for the current year is 21.4%, in contrast to the industry 's expected decline of 1%. Apple yielded a return of 46.1% in 2017.

(Looking for the Best Stocks for 2018? Be among the first to see our Top Ten Stocks for 2018 portfolio here. )

Facebook provides various products to connect and share through mobile devices, personal computers, and other surfaces worldwide. The company has a Zacks Rank #2. The Zacks Consensus Estimate for its current-year earnings increased 1.6% in the last 60 days. The stock's expected growth rate for the current year is 37.6%, higher than the industry 's projected gain of 9.9%. Facebook yielded a return of 53.4% last year.

NVIDIA operates as a visual computing company worldwide. The company has a Zacks Rank #1. The Zacks Consensus Estimate for its current-year earnings rose 16.1% in the last 60 days. The stock's expected growth rate for the current year is 62.9%, way higher than the industry 's projected gain of 19.8%. NVIDIA yielded a return of 81.3% in 2017.

Micron Technology, Inc. provides semiconductor systems worldwide. The stock has a Zacks Rank #1. The Zacks Consensus Estimate for its current-year earnings surged 32.8% in the last 60 days. The stock, which is part of the Semiconductor Memory industry, is expected to grow at a solid rate of 98.1% this year. Micron Technology yielded a return of 87.6% last year.

Broadcom Limited designs, develops, and supplies a range of semiconductor devices. The company has a Zacks Rank #1. The Zacks Consensus Estimate for its current-year earnings increased 13.2% in the last 60 days. The stock's expected growth rate for the current year is 20.7%, higher than the industry 's projected gain of 3.1%. Broadcom yielded a return of 45.3% in 2017.

Wall Street's Next Amazon

Zacks EVP Kevin Matras believes this familiar stock has only just begun its climb to become one of the greatest investments of all time. It's a once-in-a-generation opportunity to invest in pure genius.

Click for details >>

Today, Zacks is promoting its ''Buy'' stock recommendations. Get #1 Stock of the Day pick for free .

About Zacks Equity Research

Zacks Equity Research provides the best of quantitative and qualitative analysis to help investors know what stocks to buy and which to sell for the long-term.

Continuous coverage is provided for a universe of 1,150 publicly traded stocks. Our analysts are organized by industry which gives them keen insights to developments that affect company profits and stock performance. Recommendations and target prices are six-month time horizons.

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Many are little publicized and fly under the Wall Street radar. They're virtually unknown to the general public. Yet today's 220 Zacks Rank #1 "Strong Buys" were generated by the stock-picking system that has nearly tripled the market from 1988 through 2015. Its average gain has been a stellar +26% per year. See these high-potential stocks free >>.

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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 identified and described were or will be profitable. All information is current as of the date of 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.

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Facebook, Inc. (FB): Free Stock Analysis Report

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Broadcom Limited (AVGO): Free Stock Analysis Report

NVIDIA Corporation (NVDA): Free Stock Analysis Report

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The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.


The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

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