Summary: Wall Street reacts to inflation, S&P 500 and Nasdaq rebound, Fed rate cuts expected in September.

From Nasdaq: 2024-07-16 16:42:00

Wall Street reacted to June’s inflation print with a sell-off of big tech stocks, but the S&P 500 and Nasdaq rebounded during earnings season. The Russell 2000 surged as Fed rate cuts are priced in for September, signaling positive signs for investors. Despite near-term pressure on big tech, the bullish backdrop remains intact.

Investors can use a Zacks screen to find top Zacks Rank #1 (Strong Buy) stocks to buy in July and beyond. Starting with a Zacks Rank #1 can lead to an average annual return of 24.4% since 1988. Using filters like positive current quarter estimate revisions and top broker rating changes can help narrow down the list to tradable stocks.

Spotify Technology (SPOT) is a Zacks Rank #1 stock with a strong sales growth trajectory of 16% in 2023 to reach $14.33 billion. With a projected sales growth of 18% in 2024, SPOT is expected to rise from $14 billion in FY23 to nearly $20 billion next year. The stock has seen a substantial increase in adjusted earnings outlook.

Spotify announced a price hike to keep up with inflation, expecting to grow its sales by 18% in 2024. With adjusted earnings projected to surge from a loss in 2023 to substantial profits in 2024 and beyond, SPOT has seen a 270% increase off its 2022 lows. It is currently trading below its 50-day moving average.

SPOT trades 11% below its average Zacks price target and has shown strong performance relative to Apple and Amazon in 2024. With upcoming Q2 earnings, the stock could break out if it impresses Wall Street. Investors can explore more stock picks with the Zacks screen to identify potential winners in the current market environment.



Read more at Nasdaq: Finding the Best Top-Ranked Stocks to Buy in July