|By PR Newswire||
|August 29, 2014 09:30 AM EDT||
CHICAGO, Aug. 29, 2014 /PRNewswire/ -- 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 the PowerShares Fundamental Pure Large Growth Portfolio (AMEX:PXLG-Free Report), PowerShares Fundamental Pure Lg Val ETF (AMEX:PXLV-Free Report), Guggenheim S&P 500 Pure Growth ETF (AMEX:RPG-Free Report), Guggenheim S&P 500 Pure Value ETF (AMEX:RPV-Free Report) and iShares Morningstar Large-Cap Growth ETF (AMEX:JKE-Free Report).
Today, Zacks is promoting its ''Buy'' stock recommendations. Get #1Stock of the Day pick for free.
Here are highlights from Thursday's Analyst Blog:
3 Growth ETFs to Buy on Large-Cap Surge
After rough trading over the past few months, the U.S. stock market is once again at its record high with the S&P 500 breaking the major 2,000 threshold and Dow Jones above 17,100.
The rally was sparked off by a flurry of solid economic data, better-than-expected second-quarter earnings, increased M&A activities, improving business conditions, renewed optimism in housing recovery and robust job growth. Further, the recent consumer sentiment survey has been extremely positive with the monthly Consumer Confidence Index, measured by the Conference Board, climbing to the highest level in seven years to 92.4 in August from the revised 90.3 in July.
Total earnings for the 480 S&P 500 members that have reported Q2 results are up 8.1% on 4.4% higher revenues with 65.6% beating EPS estimates and 61% coming out with positive revenue surprises. This performance is much better than many recent quarters. The pace of negative revisions for the upcoming quarters has eased considerably in comparison to the prior quarters of the past two years when steep downward revisions were frequent (read: 4 Ways to Play Earnings Growth with ETFs).
All positive sentiments are expected to propel stock markets higher in the coming months. However, investors are still cautious about the timing of the interest rates hike, ongoing violence in Israel, and the political impasse between Russia and Ukraine. As such, investors should focus on large cap stocks, which tend to be the most stable in an adverse economic scenario while at the same time offer capital appreciation in a booming market. Further, honing in on pure growth securities in this capitalization level ensures higher returns.
Although lofty valuation concerns persist for the growth stocks, investors should note that large cap growth stocks held steady in the meltdown seen earlier in the year. As a result, the combination of large cap and growth stocks provide nice capital appreciation opportunity on improving economic conditions. Further, these tend to outperform during an uptrend, though these are more volatile than the value counterparts (see: all Large Cap ETFs here).
Given this, investors may want to consider cycling into the large cap growth space in order to obtain a nice momentum play. While looking at individual companies is certainly an option, a focus on top ranked large cap growth ETFs could be a less risky way to tap into the same broad trends.
Top Ranked Large Cap Growth ETF in Focus
We have found a number of ETFs that have the top Zacks ETF Rank of 1 (Strong Buy) or 2 (Buy) in the large cap growth space and are thus expected to outperform in the months to come (read: all the Top Ranked ETFs).
While all these top ranked ETFs are likely to outperform, the following three funds could be good choices to tap into the space. This trio has enjoyed a strong momentum and is leading the broad market and value funds by mid margins from the year-to-date look. This is because it has potentially superior weighting methodologies which could allow it to continue leading the large cap growth space in the coming months.
This ETF follows the RAFI Fundamental Large Growth Index and holds 51 stocks in its basket. The product has amassed $118.9 million in its asset base and sees light volume of over 6,000 shares per day. It charges 39 bps in fees per year from investors. The fund is largely concentrated on the top three holdings – Microsoft, Apple, Wells Fargo – which collectively make up for 25% of the portfolio.
Information technology firms dominate the fund's return at 35.5% while healthcare, energy, financials, and consumer discretionary also get double-digit exposure. The ETF gained 13.6% in the year-to-date time frame compared to a gain of 7.1% for its value counterpart (AMEX:PXLV-Free Report). The fund has a Zacks Rank of 2 with a Medium risk outlook (read: 3 Excellent Value ETFs Poised to Outperform).
This ETF tracks the S&P 500 Pure Growth Index, holding 111 securities in its basket. The fund is widely diversified across various securities as none of these holds more than 2.15% of total assets in the basket. However, the product has a slight tilt toward the consumer discretionary sector accounting for over 28% share while healthcare, information technology and financials round off the next three spots.
RPG is one of the popular and liquid choices in the large cap growth space with AUM of $1.7 billion and average daily volume of more than 177,000 shares. Expense ratio came in at 0.35%. The fund is up 14% so far this year, much higher than the returns of 10.3% for the pure value ETF (AMEX:RPV-Free Report). The ETF has a Zacks Rank of 1 with Medium risk outlook.
With AUM of $558.9 million, this product tracks the Morningstar Large Growth Index. Holding 113 securities, the fund is largely concentrated on the top firm – AAPL – at 11.15% while other firms do not make up for more than 3.05% share. From a sector look, technology and consumer services take the top two spots with a combined 48.6% of the portfolio (read: 3 Apple ETFs for Outperformance).
The ETF charges 25 bps in annual fees and trades in light volume of nearly 19,000 shares a day. JKE returned 11.7% in the same period. The ETF has a Zacks Rank of 1 with Medium risk outlook.
Today, Zacks is promoting its ''Buy'' stock recommendations. Get #1Stock 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.
Zacks "Profit from the Pros" e-mail newsletter provides highlights of the latest analysis from Zacks Equity Research. Subscribe to this free newsletter today.
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! Register for your free subscription to Profit from the Pros.
Follow us on Twitter: http://twitter.com/zacksresearch
Join us on Facebook: http://www.facebook.com/home.php#/pages/Zacks-Investment-Research/57553657748?ref=ts
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.
Zacks Investment Research
800-767-3771 ext. 9339
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.
SOURCE Zacks Investment Research, Inc.
SYS-CON Events announced today that Dataloop.IO, an innovator in cloud IT-monitoring whose products help organizations save time and money, has been named “Bronze Sponsor” of SYS-CON's 20th International Cloud Expo®, which will take place on June 6-8, 2017, at the Javits Center in New York City, NY. Dataloop.IO is an emerging software company on the cutting edge of major IT-infrastructure trends including cloud computing and microservices. The company, founded in the UK but now based in San Fran...
Jan. 20, 2017 01:00 PM EST Reads: 2,567
20th Cloud Expo, taking place June 6-8, 2017, at the Javits Center in New York City, NY, will feature technical sessions from a rock star conference faculty and the leading industry players in the world. Cloud computing is now being embraced by a majority of enterprises of all sizes. Yesterday's debate about public vs. private has transformed into the reality of hybrid cloud: a recent survey shows that 74% of enterprises have a hybrid cloud strategy.
Jan. 20, 2017 12:30 PM EST Reads: 4,340
Discover top technologies and tools all under one roof at April 24–28, 2017, at the Westin San Diego in San Diego, CA. Explore the Mobile Dev + Test and IoT Dev + Test Expo and enjoy all of these unique opportunities: The latest solutions, technologies, and tools in mobile or IoT software development and testing. Meet one-on-one with representatives from some of today's most innovative organizations
Jan. 20, 2017 12:30 PM EST Reads: 1,632
WebRTC is the future of browser-to-browser communications, and continues to make inroads into the traditional, difficult, plug-in web communications world. The 6th WebRTC Summit continues our tradition of delivering the latest and greatest presentations within the world of WebRTC. Topics include voice calling, video chat, P2P file sharing, and use cases that have already leveraged the power and convenience of WebRTC.
Jan. 20, 2017 12:30 PM EST Reads: 3,173
SYS-CON Events announced today that Super Micro Computer, Inc., a global leader in Embedded and IoT solutions, will exhibit at SYS-CON's 20th International Cloud Expo®, which will take place on June 7-9, 2017, at the Javits Center in New York City, NY. Supermicro (NASDAQ: SMCI), the leading innovator in high-performance, high-efficiency server technology, is a premier provider of advanced server Building Block Solutions® for Data Center, Cloud Computing, Enterprise IT, Hadoop/Big Data, HPC and E...
Jan. 20, 2017 12:15 PM EST Reads: 5,820
Hardware virtualization and cloud computing allowed us to increase resource utilization and increase our flexibility to respond to business demand. Docker Containers are the next quantum leap - Are they?! Databases always represented an additional set of challenges unique to running workloads requiring a maximum of I/O, network, CPU resources combined with data locality.
Jan. 20, 2017 11:30 AM EST Reads: 728
WebRTC sits at the intersection between VoIP and the Web. As such, it poses some interesting challenges for those developing services on top of it, but also for those who need to test and monitor these services. In his session at WebRTC Summit, Tsahi Levent-Levi, co-founder of testRTC, reviewed the various challenges posed by WebRTC when it comes to testing and monitoring and on ways to overcome them.
Jan. 20, 2017 10:45 AM EST Reads: 6,075
Internet of @ThingsExpo, taking place June 6-8, 2017 at the Javits Center in New York City, New York, is co-located with the 20th International Cloud Expo and will feature technical sessions from a rock star conference faculty and the leading industry players in the world. @ThingsExpo New York Call for Papers is now open.
Jan. 20, 2017 10:45 AM EST Reads: 3,695
DevOps is being widely accepted (if not fully adopted) as essential in enterprise IT. But as Enterprise DevOps gains maturity, expands scope, and increases velocity, the need for data-driven decisions across teams becomes more acute. DevOps teams in any modern business must wrangle the ‘digital exhaust’ from the delivery toolchain, "pervasive" and "cognitive" computing, APIs and services, mobile devices and applications, the Internet of Things, and now even blockchain. In this power panel at @...
Jan. 20, 2017 09:45 AM EST Reads: 2,921
"This week we're really focusing on scalability, asset preservation and how do you back up to the cloud and in the cloud with object storage, which is really a new way of attacking dealing with your file, your blocked data, where you put it and how you access it," stated Jeff Greenwald, Senior Director of Market Development at HGST, in this SYS-CON.tv interview at 18th Cloud Expo, held June 7-9, 2016, at the Javits Center in New York City, NY.
Jan. 20, 2017 09:45 AM EST Reads: 5,507
SYS-CON Events announced today that Catchpoint Systems, Inc., a provider of innovative web and infrastructure monitoring solutions, has been named “Silver Sponsor” of SYS-CON's DevOps Summit at 18th Cloud Expo New York, which will take place June 7-9, 2016, at the Javits Center in New York City, NY. Catchpoint is a leading Digital Performance Analytics company that provides unparalleled insight into customer-critical services to help consistently deliver an amazing customer experience. Designed ...
Jan. 20, 2017 09:15 AM EST Reads: 6,381
WebRTC services have already permeated corporate communications in the form of videoconferencing solutions. However, WebRTC has the potential of going beyond and catalyzing a new class of services providing more than calls with capabilities such as mass-scale real-time media broadcasting, enriched and augmented video, person-to-machine and machine-to-machine communications. In his session at @ThingsExpo, Luis Lopez, CEO of Kurento, introduced the technologies required for implementing these idea...
Jan. 20, 2017 08:30 AM EST Reads: 4,748
"A lot of times people will come to us and have a very diverse set of requirements or very customized need and we'll help them to implement it in a fashion that you can't just buy off of the shelf," explained Nick Rose, CTO of Enzu, in this SYS-CON.tv interview at 18th Cloud Expo, held June 7-9, 2016, at the Javits Center in New York City, NY.
Jan. 20, 2017 08:15 AM EST Reads: 4,713
Buzzword alert: Microservices and IoT at a DevOps conference? What could possibly go wrong? In this Power Panel at DevOps Summit, moderated by Jason Bloomberg, the leading expert on architecting agility for the enterprise and president of Intellyx, panelists peeled away the buzz and discuss the important architectural principles behind implementing IoT solutions for the enterprise. As remote IoT devices and sensors become increasingly intelligent, they become part of our distributed cloud enviro...
Jan. 20, 2017 08:15 AM EST Reads: 4,938
Containers have changed the mind of IT in DevOps. They enable developers to work with dev, test, stage and production environments identically. Containers provide the right abstraction for microservices and many cloud platforms have integrated them into deployment pipelines. DevOps and containers together help companies achieve their business goals faster and more effectively. In his session at DevOps Summit, Ruslan Synytsky, CEO and Co-founder of Jelastic, reviewed the current landscape of Dev...
Jan. 20, 2017 08:00 AM EST Reads: 4,280