Welcome!

News Feed Item

Zacks Investment Ideas feature highlights: TriQuint Semiconductor and Jabil Circuit

CHICAGO, Aug. 22, 2014 /PRNewswire/ -- Today, Zacks Investment Ideas feature highlights Features: TriQuint Semiconductor (Nasdaq:TQNT-Free Report) and Jabil Circuit (NYSE:JBL-Free Report). 

Zacks Investment Research, Inc., www.zacks.com.

Stocks to Buy at All-Time Highs

 

If I had a nickel for every person that told me they were "Waiting for a pullback" or has most of their money "on the sidelines" I'd be living in the Caribbean eating jerk chicken and constantly applying sunscreen to this bald head of mine. Honestly, I don't blame people for their fear or their skepticism surrounding this market. After all, it really doesn't make much sense right? You can turn on the T.V. at any time of the day and find 1,000 reasons why the world is going to heck in a hand-basket and you should stock your basement with Spam, drinking water, ammunition and never leave the house.

 

While we're all shivering, cowering in the corner, white knuckles tight around the 12 gauge, it's sunny outside. There's no post-apocalyptic zombie horror movie playing in our front yards. There aren't any breadlines in Manhattan, and despite the best efforts of our politicians not every municipality is bankrupt.

 

In actuality it's nearly the complete opposite. The stock market is at all-time highs. Interest rates will remain accommodative for the foreseeable future. U.S. GDP is picking up pace again. Earnings are looking great. Basically, it's a good time to be in the market. So take a deep breath, a glass of water, rub your earlobes, have a "woo-sah" moment, grab your check book and buy the all-time high!

 

Insanity right?! I've lost all my marbles. Somebody put this guy in a strait jacket. Or, I've got an even better idea. Take a look at the Russell 2000 chart.

 

The Russell 2000 (R2K for short) represents the small caps in the stock market. Small caps historically are more volatile than large cap stocks. If you want to sound fancy you say they are "high beta." They have a tendency to exacerbate moves in the S&P 500 to either side. But, while the S&P 500 is hitting new all-time highs like every other week, the R2K has been locked into a trading range forever.

 

The range between 1082 and 1212 has been a firm floor and ceiling for the index since last November. Since then we've done all sorts of wiggling and jiggling between the two levels. Efforts to breakout above or below have been convincingly thwarted.

 

Currently we're trading at about 1160 on the R2K, just a shade above the halfway mark between the buoys. The last time buyers came in to support the index was August 1st when traders came and scooped up shares of small caps well ahead of the bottom of the range at 1082. Most of the buying happened above 1107, which is about 25% or so from the bottom of the range. From a technical aspect, this implies a more bullish pattern developing for the R2K, but also there's a chance this rally dies out in the 1180s as the range becomes more compacted ahead of a breakout. Any way you slice it, I'm bullish small caps with the S&P 500 at all-time highs. I have a few names you should be looking at, even with the market as high as it is.

 

TriQuint Semiconductor (Nasdaq:TQNT-Free Report)

 

TriQuint designs, develops, manufactures, and markets a broad range of high performance analog and mixed signal integrated circuits for communications markets. The integrated circuits are incorporated into a variety of communications products, including cellular phones, fiber optic telecom equipment, satellite communications systems, high performance data networking products and aerospace applications.

 

This Zacks Rank #1 (Strong Buy) has surprised earnings estimates to the upside for four quarters in a row. Further, over the last 30 days, three analysts have raised their estimates for the current year and next year. This has pushed consensus up from 31 cents per share for the current year to 51 cents and bounced next year's consensus up from 50 cents to 75 cents.

 

All this has contributed to one heck of a run for the stock. After gaping up to break the $10 mark in February of last year, TQNT has barely paused to take a breath on its ride upwards. A few times the stock traded sideways to touch the 25 day moving average shifted by 5 days. After brief consolidation periods and minor sell-offs, TQNT almost always rebounds to head even higher.

 

Recently the stock has formed a bit of a bullish triangle pattern. Stochastics are in overbought condition so you do have to use a bit of caution when jumping on board. However, you can expect to see stochastics like this during a breakout and that's exactly what's happening to TQNT right now. With the spike to a 52-week high intraday today, I'd expect to see an attempt at $20 over the coming weeks. 

Jabil Circuit (NYSE:JBL-Free Report)

 

Jabil Circuit is a worldwide independent provider of electronic manufacturing services. It designs and manufactures electronic circuit board assemblies and systems for major original equipment manufacturers in communications, computer peripherals, personal computer, automotive and consumer products industries.

 

Due to positive earnings revisions turning more than 60 days old, JBL has bumped down to a Zacks Rank #3 (Hold), however it's in an industry that ranks 3rd or in the Top 1% of our Zacks Industry Rank.

 

The stock, just today, broke out above the previous 52-week high where it had a failed breakout attempt just a few short weeks ago. This momentum stems from an aggressive stop grabber pattern at the 23.6% retracement of the December 18th to June 24th broad move to new highs. This, coupled with a stochastic bullish crossover from an extreme oversold condition has been the technical catalyst.

 

With the old 52-week high firmly in the rearview mirror, you can expect a short run up until the stock inevitably retraces to retest the old high. If you miss the breakout happening now, you can wait for a bit of weakness to jump in and ride this thing higher.

Bottom Line

Yes, we're at all-time highs on the S&P 500 but that doesn't mean that you should shy away from the stock market. Here I've given you reasons to step in, be courageous, and buy this market. These two stocks should benefit from a continued rally in the small cap Russell 2000 index. 

About Zacks

Zacks.com is a property of Zacks Investment Research, Inc., which was formed in 1978. The later formation of the Zacks Rank, a proprietary stock picking system; continues to outperform the market by nearly a 3 to 1 margin. The best way to unlock the profitable stock recommendations and market insights of Zacks Investment Research is through our free daily email newsletter; Profit from the Pros.  In short, it's your steady flow of Profitable ideas GUARANTEED to be worth your time! Click here for your free subscription to Profit from the Pros.

 

Get the full Report on TQNT – FREE

Get the full Report on JBL – FREE

Follow us on Twitter:  http://twitter.com/ZacksResearch

 

Join us on Facebook:  http://www.facebook.com/ZacksInvestmentResearch

 

Zacks Investment Research is under common control with affiliated entities (including a broker-dealer and an investment adviser), which may engage in transactions involving the foregoing securities for the clients of such affiliates.

 

Media Contact

Zacks Investment Research

800-767-3771 ext. 9339

[email protected]

http://www.zacks.com

 

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 http://www.zacks.com/performance for information about the performance numbers displayed in this press release.

Logo - http://photos.prnewswire.com/prnh/20101027/ZIRLOGO

SOURCE Zacks Investment Research, Inc.

More Stories By PR Newswire

Copyright © 2007 PR Newswire. All rights reserved. Republication or redistribution of PRNewswire content is expressly prohibited without the prior written consent of PRNewswire. PRNewswire shall not be liable for any errors or delays in the content, or for any actions taken in reliance thereon.

Latest Stories
In his general session at 21st Cloud Expo, Greg Dumas, Calligo’s Vice President and G.M. of US operations, will go over the new Global Data Protection Regulation and how Calligo can help business stay compliant in digitally globalized world. Greg Dumas is Calligo's Vice President and G.M. of US operations. Calligo is an established service provider that provides an innovative platform for trusted cloud solutions. Calligo’s customers are typically most concerned about GDPR compliance, applicatio...
Widespread fragmentation is stalling the growth of the IIoT and making it difficult for partners to work together. The number of software platforms, apps, hardware and connectivity standards is creating paralysis among businesses that are afraid of being locked into a solution. EdgeX Foundry is unifying the community around a common IoT edge framework and an ecosystem of interoperable components.
SYS-CON Events announced today that N3N will exhibit at SYS-CON's @ThingsExpo, which will take place on Oct 31 – Nov 2, 2017, at the Santa Clara Convention Center in Santa Clara, CA. N3N’s solutions increase the effectiveness of operations and control centers, increase the value of IoT investments, and facilitate real-time operational decision making. N3N enables operations teams with a four dimensional digital “big board” that consolidates real-time live video feeds alongside IoT sensor data a...
SYS-CON Events announced today that TidalScale will exhibit at SYS-CON's 21st International Cloud Expo®, which will take place on Oct 31 – Nov 2, 2017, at the Santa Clara Convention Center in Santa Clara, CA. TidalScale is the leading provider of Software-Defined Servers that bring flexibility to modern data centers by right-sizing servers on the fly to fit any data set or workload. TidalScale’s award-winning inverse hypervisor technology combines multiple commodity servers (including their ass...
As hybrid cloud becomes the de-facto standard mode of operation for most enterprises, new challenges arise on how to efficiently and economically share data across environments. In his session at 21st Cloud Expo, Dr. Allon Cohen, VP of Product at Elastifile, will explore new techniques and best practices that help enterprise IT benefit from the advantages of hybrid cloud environments by enabling data availability for both legacy enterprise and cloud-native mission critical applications. By rev...
Companies are harnessing data in ways we once associated with science fiction. Analysts have access to a plethora of visualization and reporting tools, but considering the vast amount of data businesses collect and limitations of CPUs, end users are forced to design their structures and systems with limitations. Until now. As the cloud toolkit to analyze data has evolved, GPUs have stepped in to massively parallel SQL, visualization and machine learning.
With major technology companies and startups seriously embracing Cloud strategies, now is the perfect time to attend 21st Cloud Expo October 31 - November 2, 2017, at the Santa Clara Convention Center, CA, and June 12-14, 2018, at the Javits Center in New York City, NY, and learn what is going on, contribute to the discussions, and ensure that your enterprise is on the right path to Digital Transformation.
Join IBM November 1 at 21st Cloud Expo at the Santa Clara Convention Center in Santa Clara, CA, and learn how IBM Watson can bring cognitive services and AI to intelligent, unmanned systems. Cognitive analysis impacts today’s systems with unparalleled ability that were previously available only to manned, back-end operations. Thanks to cloud processing, IBM Watson can bring cognitive services and AI to intelligent, unmanned systems. Imagine a robot vacuum that becomes your personal assistant th...
Digital transformation is changing the face of business. The IDC predicts that enterprises will commit to a massive new scale of digital transformation, to stake out leadership positions in the "digital transformation economy." Accordingly, attendees at the upcoming Cloud Expo | @ThingsExpo at the Santa Clara Convention Center in Santa Clara, CA, Oct 31-Nov 2, will find fresh new content in a new track called Enterprise Cloud & Digital Transformation.
Most technology leaders, contemporary and from the hardware era, are reshaping their businesses to do software. They hope to capture value from emerging technologies such as IoT, SDN, and AI. Ultimately, irrespective of the vertical, it is about deriving value from independent software applications participating in an ecosystem as one comprehensive solution. In his session at @ThingsExpo, Kausik Sridhar, founder and CTO of Pulzze Systems, will discuss how given the magnitude of today's applicati...
Smart cities have the potential to change our lives at so many levels for citizens: less pollution, reduced parking obstacles, better health, education and more energy savings. Real-time data streaming and the Internet of Things (IoT) possess the power to turn this vision into a reality. However, most organizations today are building their data infrastructure to focus solely on addressing immediate business needs vs. a platform capable of quickly adapting emerging technologies to address future ...
The dynamic nature of the cloud means that change is a constant when it comes to modern cloud-based infrastructure. Delivering modern applications to end users, therefore, is a constantly shifting challenge. Delivery automation helps IT Ops teams ensure that apps are providing an optimal end user experience over hybrid-cloud and multi-cloud environments, no matter what the current state of the infrastructure is. To employ a delivery automation strategy that reflects your business rules, making r...
What is the best strategy for selecting the right offshore company for your business? In his session at 21st Cloud Expo, Alan Winters, U.S. Head of Business Development at MobiDev, will discuss the things to look for - positive and negative - in evaluating your options. He will also discuss how to maximize productivity with your offshore developers. Before you start your search, clearly understand your business needs and how that impacts software choices.
SYS-CON Events announced today that Ryobi Systems will exhibit at the Japan External Trade Organization (JETRO) Pavilion at SYS-CON's 21st International Cloud Expo®, which will take place on Oct 31 – Nov 2, 2017, at the Santa Clara Convention Center in Santa Clara, CA. Ryobi Systems Co., Ltd., as an information service company, specialized in business support for local governments and medical industry. We are challenging to achive the precision farming with AI. For more information, visit http:...
As popularity of the smart home is growing and continues to go mainstream, technological factors play a greater role. The IoT protocol houses the interoperability battery consumption, security, and configuration of a smart home device, and it can be difficult for companies to choose the right kind for their product. For both DIY and professionally installed smart homes, developers need to consider each of these elements for their product to be successful in the market and current smart homes.