Zacks Analyst Blog Highlights: Microsoft, NextEra Energy and Starbucks
For immediate release
Chicago, IL – January 19, 2022 – Zacks.com announces the list of stocks featured in the analyst blog. Every day, Zacks Equity Research analysts discuss the latest news and events impacting stocks and financial markets. Stocks recently featured in the blog include: Microsoft MSFT, NextEra Energy NEE and Starbucks SBUX.
Here are the highlights from Tuesday’s analyst blog:
3 large-cap stocks to buy at a discount before earnings
Today’s episode of Full Court Finance at Zacks explores the market downturn to start 2022. Despite concerns and economic setbacks, investors might want to start looking for strong stocks to buy at deep discounts, especially for those with long-term investment horizons. Today, we’re diving into three large-cap stocks from three totally different sectors, poised to grow for years, if not decades, to come.
The market closed on Monday on Martin Luther King Jr. Day. Shares then opened lower on Tuesday after a rough report from Goldman Sachs spurred more selling well beyond the big Wall Street banks. . The S&P 500 fell 1.8%, while the Nasdaq fell 2.6% and the Dow Jones fell 1.5% during regular hours Tuesday.
The tech-heavy index is trading below its 200-day moving average for the first time in a long time. And traders are now looking to the S&P 500 to finally test the 200 days as well. The benchmark is currently around 3.5% above this level, but a few more selling days could get us to this technical threshold quite easily.
The sell-off comes amid 40-year high inflation that could prompt the Fed to raise rates even faster than expected. In fact, major Wall Street banks, including Goldman Sachs, are now calling for four hikes in 2022, up from three previously. And the 10-year US Treasury yield hit two-year highs on Tuesday at around 1.86%.
Still, it will take much higher rates to start making equities overall unattractive, even if they still drag growth-oriented tech stocks down. Investors should also note that the S&P 500 earnings picture remains solid, with solid growth in revenue and net income expected in 2022 and 2023 (see also: Banks offer mixed start to fourth quarter earnings season).
The market was expected to experience a pullback after a string of blockbuster returns over the past few years. Clearly, the current wave of selling could continue. Still, investors with long-term horizons might want to start buying strong stocks with proven business models that also pay a dividend, many of which are at discounted levels ahead of their next financial releases.
The first stock on our list today is Microsoft ahead of its FY22 second quarter results due for release on Tuesday, January 25. Microsoft has recalibrated its long-term trajectory with its expansion into the booming cloud computing industry, and its recent growth and outlook shows the segment’s strength and stability.
Microsoft’s other business units remain strong. Additionally, it made headlines on Tuesday by using its growing cash flow to buy Activision Blizzard in what appears to be a big bet on the Metaverse and the future of immersive VR gaming.
Elsewhere, inventors could consider buying a company that is both one of the nation’s largest electric utilities and a leader in renewable energy. NextEra Energy is expected to release its financial results for the fourth quarter of fiscal 2021 on January 25. NextEra shares fell in 2022 and have already fallen below some technical levels that could attract traders.
Let’s also remember that NextEra has been one of the most stable and diverse names in the entire clean energy space and is paying a dividend. The last stock on the list today is Starbucks, which is tentatively set to report its FY22 first-quarter results on Tuesday, Feb. 1 (Zacks calendar says Jan. 25).
Starbucks quickly adapted to a more mobile model amid the pandemic, made possible by its already thriving mobile app that encouraged advance orders. Starbucks rebounded from a significantly covid-hit 2020 in FY21, but it is again trying to navigate economic headwinds. Still, the recently downed coffee titan might be worth adding to these levels.
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Past performance is not indicative of future results. The potential for loss is inherent in any investment. This document is provided for informational purposes only and nothing herein constitutes investment, legal, accounting or tax advice, or a recommendation to buy, sell or hold any security. No recommendation or advice is given as to whether any investment is suitable for any particular investor. It should not be assumed that investments in the securities, companies, sectors or markets identified and described have been or will be profitable. All information is current as of the date hereof and is subject to change without notice. The views or opinions expressed may not reflect those of the company as a whole. Zacks Investment Research does not engage in investment banking, market making or asset management of securities. These returns come from hypothetical portfolios composed of stocks with Zacks Rank = 1 that have been rebalanced monthly without transaction fees. These are not the returns of actual stock portfolios. The S&P 500 is an unmanaged index. Visit https://www.zacks.com/performancefor more information on the performance figures displayed in this press release.
7 best stocks for the next 30 days
Just Released: Experts distill 7 elite stocks from the current Zacks No. 1 Ranking 220 Strong Buys list. They consider these tickers “most likely for early price increases.”
Since 1988, the full list has beaten the market more than 2 times with an average gain of +25.3% per year. So be sure to give your immediate attention to these 7 handpicked ones.
NextEra Energy, Inc. (NEE): Free Stock Analysis Report
Microsoft Corporation (MSFT): Free Stock Analysis Report
Starbucks Corporation (SBUX): Free Inventory 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.
