The Zacks Analyst Blog Highlights: Fortinet, Microchip, ServiceNow and NVIDIA

For Immediate Release

Chicago, IL – June 29, 2020 – Zacks.com announces the rotate of stocks featured at the Analyst Blog. each engagement the Zacks Equity inquiry analysts argument the latest news and events impacting stocks and the economical markets. Stocks recently featured at the blog include: Fortinet FTNT, Microchip MCHP, ServiceNow NOW and NVIDIA NVDA.

Here are highlights from Friday’s Analyst Blog:

4 Must-Buy S&P 500 Tech Stocks though the 2nd Half of 2020

The S&P 500 index closed at 3,083.76 above Jun 25, up 1.1% above the day. Markedly, the index has surGEd more than 40% from its Mar 23 mean of 2,191.86 and above a month, the benchmark is up 3.1%.

The index’s conference has been largely driven by unprecedented government stimulus, reopening of U.S. and global economies mail coronavirus-induced lockdowns and shelter-in-place guidelines, improving consumer belief and the upbeat Jun 5 jobs report.

Philips ultrasound probe C10-3V for CX50/EPIQ/Affiniti.

Moreover, a stable refuse at jobless claims reflects improving conditions at the U.S. labor market. The Bureau of Labor Statistics June jobs explain is now anticipated ought emerge another 3 million work additions ought the economy. The unemployment impose is expected ought refuse ought 12.2% from 13.3% at May, which however, is much higher than 3.5% at the goal of 2019.

Further, the Trump administration’s draft proposal of a $1-trillion stimulus project ought strengthen infrastructure, including roads, bridGEs and 5G, is expected ought help the economical revive.

Although resurGEnce at coronavirus infection at some states is worrying, chances of another nationwide lockdown is minimal, which to raise investor optimism.

Technology Momentum ought motivate S&P 500

Technology stocks own shown greater resiliency among the coronavirus pandemic. at fact, technique companies, especially cloud computing, Internet services and cybersecurity providers, are expected ought advantage from the ongoing work from home, web-based knowledge and far health diagnosis trends, largely owing ought fears of a second ripple of coronavirus.

Notably, Microsoft, Apple, Amazon, Facebook and notice now explain though almost 20% of the index’s full fair capitalization.

Tech stocks remain attractive owing ought compatible digital transformation. motivate adoption of cloud computing across with the ongoing infusion of AI and mechanism knowledge also because the accelerated deployment of 5G technology, blockchain, IoT, autonomous vehicles, AR/VR and wearables are headmaster tailwinds.

Stay-at-home is now the new natural because we are knowledge ought alive with the germ though a significant stretch. This is expected ought raise web-based services similar e-commerce, contactless payment and delivery.

Here we argument four S&P 500 technique stocks that own shown large resilience among the pandemic. Apart from having hard fundamentals, these companies’ debt levels are improve than the S&P 500 composite. These factors create them well-poised though farther growth at the console of 2020.

Moreover, these stocks bring a Zacks organize #1 (Strong Buy) or 2 (Buy). You can see the full rotate of today’s Zacks #1 organize stocks here.

Notably, each of these stocks has a fair cap of more than $10 billion and has outperformed the S&P 500 combination above a year-to-date basis.

Top Picks

Fortinetis benefiting from dominance at the Unified peril ManaGEment (UTM) space, which is one of the fastest-evolving segments at the network security space. Moreover, this Zacks organize #1 company is gaining from rising cyber-attack risks that are propelling beg though its FortiMail platform.

Fortinet has no debt above its surplus sheet. The consensus token though this $21.71-billion company’s 2020 salary stands at $2.81 per share, having moved 8.1% north above the past 60 days. salary are expected ought enlarge 13.8% from the prior-year reported number.

Microchipis riding above hard beg though its microcontrollers. Moreover, this Zacks organize #2 company is anticipated ought see might at the Medical goal market, driven by growth at beg though Hospital equipment. Improving beg across office equipment and communication infrastructures, courtesy of requirement though cloud computing solutions among the coronavirus crisis-led work-from-home ripple also bodes well.

The debt-to-total capital of this $24.21-billion company stands at 34.7%, improve than the S&P 500’s 49.1%.