To watch more expert insights and analysis on the latest market action, check out more Asking for a Trend. One of the most important steps you can take today is to set up your portfolio tracker on Zacks.com. Once you do, you’ll be notified of major events affecting your stocks and/or funds with daily email alerts. Jack Henry benefits from solid momentum across commercial banks, credit unions and other financial institutions. Massive capex spending by U.S. tech giants to support the AI buildout is having implications for equity investors beyond the tech sector ― and well beyond the U.S.
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Historically, in non-recessionary environments, cyclical sectors have outperformed by 2 percentage points on average in the 12 months after the Fed started cutting rates. By contrast, defensive sectors like utilities, health care, and consumer staples have underperformed by 3 percentage points on average in such environments. Usually, when that link doesn’t hold it’s because either inflation is high or economic growth is exceptionally strong. Last year, for example, the Consumer Price Index excluding food and energy (aka core CPI) was still close to an important 3.5% threshold level, around which rate cuts tend to have less of an impact on long-term interest rates. When the Fed has cut rates because it must—in response to a recession—returns have been poor. When the Fed has cut rates because it may—meaning inflation is low and growth is slowing, but not negative—returns have historically been strong.
- Tesla needs the fab to build AI chip to power its self-driving tech, Musk said as he laid out potential manufacturing plans.
- Denise Chisholm is director of quantitative market strategy in the Quantitative Research and Investments (QRI) division at Fidelity Investments.
- One of the most important steps you can take today is to set up your portfolio tracker on Zacks.com.
- Production delays at Boeing, higher interest expense, rising operating expenses and foreign currency risks hurt AL’s prospects.
End-to-end product lifecycle management, technological prowess, customer-oriented strategy and strong liquidity position are major growth drivers for Sanmina. We cover more than 1,000 of the most widely followed stocks in our Equity Research Reports. Each report features independent research from our analysts and provides in-depth analysis on a company, its fundamentals and its growth prospects. Equities may decline in value due to both real and perceived general market, economic, and industry conditions. Economies and financial markets are being transformed today by powerful mega forces, including digital disruption and AI, the energy transition, and geopolitical fragmentation that is rewiring supply chains. Tesla (TSLA) shareholders have approved a pay package that could see CEO Elon Musk make $1 trillion.
- Thursday, November 6, 2025Pre-market indexes are bounding into positive territory at this hour, after wallowing in the red following yesterday’s solid gains.
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- In other words, if you want to bet on which way stocks go from here, you have to decide if you think we’re heading into recession or not.
- In the past, jumps in confidence like this have been leading indicators of future earnings growth and economic growth.
Zacks may license the Zacks Mutual Fund rating provided herein to third parties, including but not limited to the issuer. The setup isn’t flawless, but those low valuations improve the risk-reward profile. For example, even if home prices decline from here (which typically is bearish for homebuilders), those valuation levels could help buffer the downside—with builders experiencing only 3 percentage points of underperformance in such periods historically. On the flip side, if home prices can simply hold their ground, history suggests the upside could be significant—with builders experiencing 30 percentage points of outperformance in similar periods historically. That kind of scenario might put a wrench in my thesis on homebuilder outperformance.
Get stock recommendations, portfolio guidance, and more from The Motley Fool’s premium services. Zacks Rank Home – Evaluate your stocks and use the Zacks Rank to eliminate the losers and keep the winners. Weakness in the Commercial Foodservice and Residential Kitchen units, along with rising debt levels, is likely to play spoilsport.
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Pricing wars or significant investments, seen as desperate attempts to outshine rivals, could result in compromising profit margins, an alarming prospect for any investor seeking a stable return. Insulet’s robust execution to expand the Omnipod 5 platform globally is a tailwind. The company is also capitalizing on the significant growth opportunities in the Type 2 diabetes space.
Zacks #1 Rank Top Movers for 11/07/25
They typically react to tangible improvements and increasing demand visibility (which in this case, they may be seeing as a result of the new tax law). In the past, jumps in confidence like Best ev stocks this have been leading indicators of future earnings growth and economic growth. This could be a healthy environment for cyclical sectors, meaning sectors like technology, financials, and consumer discretionary, that tend to rise and fall in tandem with the economy.
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Our active investors know that the AI opportunity is not static but continuously evolving alongside the technology itself, making this an extraordinary time to be an alpha seeker. Artificial intelligence (AI) has been a source of stock market excitement since ChatGPT burst onto the scene in November 2022 and revealed the previously inconceivable capabilities of generative AI. Fidelity is not recommending or endorsing this investment by making it available to its customers. Views expressed are as of the date indicated, based on the information available at that time, and may change based on market or other conditions.
In other words, if you want to bet on which way stocks go from here, you have to decide if you think we’re heading into recession or not. Homebuilders are highly interest-rate sensitive and offer the closest correlation to home sales that you can find in the stock market. Not surprisingly given the slump in home sales, homebuilders have broadly underperformed over the last year-plus and were recently in their bottom quartile of relative valuation. This combination of falling rates and low relative valuations has historically delivered strong odds of outperformance—nearly 80% in similar periods since 1970.
You’ll receive continuously updated Zacks Rank and Style Scores, Earnings Estimate Revisions, Broker Recommendation Changes, Earnings Surprises and more. Note that you should also add your mutual fund and ETF positions to monitor changes in their Zacks Rank as well. Align Technology’s robust product line, balanced growth across all channels and consistent focus on international markets to drive growth bolster our confidence in the stock. As a global investment manager and fiduciary to our clients, our purpose at BlackRock is to help everyone experience financial well-being. Since 1999, we’ve been a leading provider of financial technology, and our clients turn to us for the solutions they need when planning for their most important goals.
The Energizing the Future initiative will add to its overall operational strength. Thursday, November 6, 2025Pre-market indexes are bounding into positive territory at this hour, after wallowing in the red following yesterday’s solid gains. Currently, the Dow is up +0.10%, the S&P 500 and the Nasdaq identically +0.23% and the Russell +0.24%.
Bond yields have flowed higher to +4.13% on the 10-year and +3.60% on the 2-year. You are being directed to ZacksTrade, a division of LBMZ Securities and licensed broker-dealer. The web link between the two companies is not a solicitation or offer to invest in a particular security or type of security.
Zacks Rank stock-rating system returns are computed monthly based on the beginning of the month and end of the month Zacks Rank stock prices plus any dividends received during that particular month. A simple, equally-weighted average return of all Zacks Rank stocks is calculated to determine the monthly return. The monthly returns are then compounded to arrive at the annual return. Only Zacks Rank stocks included in Zacks hypothetical portfolios at the beginning of each month are included in the return calculations. Certain Zacks Rank stocks for which no month-end price was available, pricing information was not collected, or for certain other reasons have been excluded from these return calculations.
While I don’t believe the broader US economy is in recession or likely to soon enter one, some specific segments of the economy have seen their own limited contractions. The Zacks #1 Rank List is the best place to start your stock search each morning. Each weekday, you can quickly see the Zacks #1 Rank Top Movers from Value to Growth, Momentum and Income, even VGM Score. Strength in the Energy Generation/Storage business, balance sheet strength, and focus on autonomous driving and artificial intelligence are set to drive Tesla.
Reliance upon information in this material is at the sole discretion of the reader. The material was prepared without regard to specific objectives, financial situation or needs of any investor. The consumer discretionary industries can be significantly affected by the performance of the overall economy, interest rates, competition, consumer confidence and spending, and changes in demographics and consumer tastes.
Innovative Medicine unit is showing a growth trend, driven by existing products like Darzalex, Tremfya and Erleada and continued uptake of new launches, including Spravato, Carvykti and Tecvayli. The company’s hydraulic fracturing demand has recently fallen below the levels required to sustain regional oil production. Production delays at Boeing, higher interest expense, rising operating expenses and foreign currency risks hurt AL’s prospects. FirstEnergy’s growing regulated base and distribution & transmission lines are expected to boost earnings.
Any changes to assumptions that may have been made in preparing this material could have a material impact on the investment returns that are presented herein by way of example. The opinions expressed are as of October 2025, and may change as subsequent conditions vary. The information and opinions contained in this material are derived from proprietary and nonproprietary sources deemed by BlackRock to be reliable, are not necessarily all-inclusive and are not guaranteed as to accuracy.