1 hour ago
Liz Ann Saunders of Charles Schwab says the narrow range of stocks creates buying opportunities.
Liz Ann Sonders, chief investment strategist at Charles Schwab, believes the weakness in individual stocks is creating a buying opportunity.
The investment chief noted that this year’s resilience at the index level masks a narrower range of stocks below the surface. For example, he noted that a larger percentage of the Nasdaq Composite’s stocks are below their 200-day moving average than the S&P 500. For investors, that means the Nasdaq could outperform the S&P 500 on a relative basis going forward.
It also suggests investors can find individual buying opportunities, she said, but urged investors to focus on quality companies with strong balance sheets and cash flows.
“I think it creates opportunity at the individual stock level because the range for the average stock has weakened quite a bit,” Saunders said Tuesday on CNBC’s “Closing Bell.”
“I think we should maintain high quality,” she added.
Sarah Min
1 hour ago
According to EMJ Capital’s Eric Jackson, Nvidia’s forward P/E and market cap could skyrocket by the end of the year.
NVIDIA is set to continue its phenomenal growth trajectory, according to Eric Jackson of EMJ Capital: The hedge fund manager sees the company trading at nearly 70 times forward earnings and $250 a share, giving it a market cap of $6 trillion by the end of the year.
“This is a huge success,” the company’s founder and president said on CNBC’s “Closing Bell” on Tuesday, adding that the enthusiasm hasn’t died down yet. He sees the enthusiasm being reflected in a “lofty” valuation in the second half of 2024, when sales of the Blackwell Chip start to pick up and the future release of the next-generation Rubin Chip creates excitement.
“No one is going to catch up with them,” he continued. “It’s going to be years before that happens. They’re going to use the lead they have.”
The chipmaker’s shares rose about 6.8% during trading on Tuesday, giving it a forward earnings ratio of 47.47. The company’s shares are up 154.6% this year.
“The stock is performing well as it is below its five-year average, but it is still relatively cheap compared to historical trading prices,” he said.
Sean Conlon
2 hours ago
Stock futures little changed
Stock futures were little changed on Tuesday as the S&P 500 recovered from three straight sessions of losses.
Futures linked to the Composite Stock Price Index fell 0.06%, Nasdaq 100 futures dropped 0.02% and Dow Jones Industrial Average futures fell 62 points, or 0.1%,.
Brian Evans
