The Zacks Analyst Blog Highlights AppLovin, Palantir Technologies, Sprouts Farmers Market, Tenet Healthcare and Vistra
For Immediate Release
Chicago, IL – September 24, 2024 – 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: AppLovin Corp. APP, Palantir Technologies Inc. PLTR, Sprouts Farmers Market Inc. SFM, Tenet Healthcare Corp. THC and Vistra Corp. VST.
Here are highlights from Monday’s Analyst Blog:
Must-Buy Large-Cap Stocks with Triple-Digit Returns This Year
An astonishing bull run of U.S. stock markets that started from the beginning of 2023 is still maintaining its momentum. In 2023, the Dow, the S&P 500 and the Nasdaq Composite – rallied 13.7%, 23.9% and 43.4%, respectively. Year to date, the Dow, the S&P 500 and the Nasdaq Composite – have advanced 11.5%, 20.2% and 21.6%, respectively.
Consequently, several stocks have skyrocketed this year. Here, we have narrowed our search to five stocks that have provided triple-digit returns year to date. These are AppLovin Corp., Palantir Technologies Inc., Sprouts Farmers Market Inc., Tenet Healthcare Corp. and Vistra Corp..
These stocks have strong earnings and revenue growth potential for the rest of 2024 and have seen positive earnings estimate revisions in the last 60 days. Each of our picks carries either a Zacks Rank #1 (Strong Buy) or 2 (Buy). You can see the complete list of today's Zacks #1 Rank stocks here.
Broad-Based Rally Beyond Tech Stocks
Last week, the Fed initiated the first cut interest rate since March 2020 with an aggressive reduction of 50-basis points. Further, the Fed's latest "dot-plot" showed the possibility of another 50-basis points cut this year. These developments will enable Wall Street to maintain its northbound journey.
Meanwhile, there exists a significant change between the rally of 2023 and 2024. Last year, the rally was predominantly driven by technology giants supported by massive worldwide adoption of generative artificial intelligence (AI).
This year, the rally is more broad-based. The anticipation of a Fed rate cut and extremely high valuation of the technology sector, compelled market participants to shift from technology to other rate-sensitive cyclical sectors, such as utilities, industrials, financials, energy, materials and health care.
Buy 5 Large-Caps With Triple-Digit Returns Year to Date
These five large-cap (market capital equal or greater than $10 billion) stocks have returned more than 100% this year. Yet, the combination of a top Zacks Rank and solid earnings estimate revisions should drive prices further in the near term.
AppLovin Corp.
Zacks Rank #1 AppLovin is engaged in building a software-based platform for mobile app developers to enhance the marketing and monetization of their apps in the United States and internationally. APP provides a technology platform that enables developers to market, monetize, analyze and publish their apps.
APP's last reported financial results demonstrate its strong fundamentals and growth potential. The introduction of its AXON 2.0 technology and strategic expansion in gaming studios have significantly boosted revenue growth. AppLovin reported a 76% year-over-year revenue increase in 2023, along with a 41% rise in adjusted EBITDA.
APP's financial momentum carried into the second quarter of 2024, with a 44% year-over-year revenue jump and an astounding 286% increase in net income. These figures underline APP's operational efficiency and effective strategic execution.
Impressive Earnings Estimate Revisions for APP Stock
AppLovin has an expected revenue and earnings growth rate of 35.2% and more than 100%, respectively, for the current year. The Zacks Consensus Estimate for the current quarter, next quarter, current year and next year has improved in the last 60 days.
Palantir Technologies Inc.
Zacks Rank #2 Palantir Technologies builds and deploys software platforms for the intelligence community to assist in counterterrorism investigations and operations in the United States, the United Kingdom, and internationally.
Off late, PLTR's commercial business has gathered pace beside its traditional government contracts. This was primarily due to PLTR's aggressive venture in the AI space. Last year, Palantir Technologies launched its Artificial Intelligence Platform (AIP), an AI-powered system that helps customers quickly concentrate and analyze data and discover how it can help advance their business goals.
AIP provides unified access to open-source, self-hosted, and commercial large language models (LLM) that can transform structured and unstructured data into LLM-understandable objects and can turn organizations' actions and processes into tools for humans and LLM-driven agents.
Solid Earnings Estimate Revisions for PLTR Shares
Palantir Technologies has an expected revenue and earnings growth rate of 24.2% and 44%, respectively, for the current year. The Zacks Consensus Estimate for the current quarter, next quarter, as well as current and next year has improved in the last 60 days.
Sprouts Farmers Market Inc.
Zacks Rank #1 Sprouts Farmers Market operates in a highly fragmented grocery industry. SFM has adopted a multifaceted approach to expand its customer base and cater to evolving consumer preferences. SFM has been lowering operational complexity, optimizing production, improving in-stock position and updating to smaller format stores.
Through product innovation, targeted marketing and competitive pricing, Sprouts Farmers Market ensures that its offerings resonate with its diverse customer base. SFM's commitment to offering fresh, natural and organic products aligns with the growing consumer demand for healthier food options.
SFM Stock's Earnings Estimate Revisions on the Rise
Sprouts Farmers Market has an expected revenue and earnings growth rate of 9.6% and 18.7%, respectively, for the current year. The Zacks Consensus Estimate for the current quarter, next quarter, current year and next year has improved in the last 60 days.
Tenet Healthcare Corp.
Zacks Rank #1 Tenet Healthcare's revenue growth is fueled by increasing patient admissions, emergency room visits, and hospital surgeries. THC's strategy of acquisitions and alliances aims to expand the scale of its business through inorganic growth.
THC has been undertaking divestitures to eliminate unprofitable businesses and focus on allocating capital to higher return-generating investments. Performances in Ambulatory Care are driving the results. THC has investments in other health care companies and is one of the largest investor-owned health care delivery systems in the United States.
Robust Earnings Estimate Revisions for THC Shares
Tenet Healthcare has an expected revenue and earnings growth rate of 1.4% and 53.6%, respectively, for the current year. The Zacks Consensus Estimates for the current quarter, next quarter, as well as current and next year has improved in the last 60 days.
Vistra Corp.
Zacks Rank #2 Vistra operates as an integrated retail electricity and power generation company. VST retails electricity and natural gas to residential, commercial, and industrial customers across 20 states in the United States and the District of Columbia. VST operates through six segments: Retail, Texas, East, West, Sunset, and Asset Closure.
Recently, VST announced that it would acquire its remaining 15% interest in Vistra Vision LLC. Utility operators are looking for new avenues to increase their clean electricity generation assets and lower emissions. Vistra's decision to become the 100% owner of Vistra Vision with a portfolio of highly-valuable, carbon-free assets in the key growing markets across the United States, should be immensely fruitful for it going forward.
Strong Earnings Estimate Revisions for VST Shares
Vistra has an expected revenue and earnings growth rate of 18% and 33.2%, respectively, for the current year. The Zacks Consensus Estimate for next quarter and next year has improved in the last 60 days.
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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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Tenet Healthcare Corporation (THC) : Free Stock Analysis Report
AppLovin Corporation (APP) : Free Stock Analysis Report
Sprouts Farmers Market, Inc. (SFM) : Free Stock Analysis Report
Vistra Corp. (VST) : Free Stock Analysis Report
Palantir Technologies Inc. (PLTR) : Free Stock Analysis Report