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The Zacks Analyst Blog The Progressive, Qualcomm, GE Aerospace, S&P Global and Boston Scientific
Chicago, IL – November 1, 2024 – 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 including The Progressive Corp. PGR, Qualcomm, Inc. QCOM, GE Aerospace GE, S&P Global Inc. SPGI and Boston Scientific Corp. BSX.
Here are highlights from Friday’s Analyst Blog:
Buy 5 S&P 500 Stocks to Tap Potential Short-Term Price Appreciation
U.S. stock markets have been witnessing an impressive rally since the beginning of 2023, barring some minor hurdles. Wall Street’s bull run has got an added boost this year, to the surprise of a large section of financial pandits, who indiscriminately warned of overvaluation.
Year to date, the three major stock indexes — the Dow, the S&P 500 and the Nasdaq Composite — have advanced 11.7%, 22.6%, and 26%, respectively. Consequently, various S&P 500 stocks have climbed this year.
Here we have selected five S&P 500 stocks with a favorable Zacks Rank. These are - The Progressive Corp., Qualcomm, Inc., GE Aerospace, S&P Global Inc. and Boston Scientific Corp.
Near-Term Positives
Last week, the Fed initiated the first cut interest rate since March 2020 with an aggressive reduction of 50-basis points. Further, the Fed’s latest “dot-plot” showed the possibility of another 50-basis points cut this year. These developments will enable Wall Street to maintain its northbound journey.
At the same time, the fundamentals of the U.S. economy remain rock solid. The U.S. GDP grew at 1.4% in first-quarter 2024. The second-quarter GDP was 3%. The first estimate of the third-quarter 2024 GDP came in at 2.8%. Investors seem convinced that the big rate cut by the Fed was to ensure the soft-landing of the U.S. economy.
5 S&P 500 Stocks to Buy to Tap Rally
These five stocks have provided double-digit returns year to date. Despite the rally, these stocks have double-digit upside potential for the short term. Each of our picks carries either a Zacks Rank #1 (Strong Buy) or 2 (Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.
The Progressive Corp.
The Progressive continues to gain on higher premiums, given its compelling product portfolio, leadership position and strength in both Vehicle and Property businesses. PGR’s focus on becoming a one-stop insurance destination, catering to customers opting for a combination of home and auto insurance, augurs well for the company's growth.
Policies in force and retention ratio of PGR should remain healthy. Competitive pricing to retain current customers and address customer needs with new offerings should continue to drive PGR’s policy life expectancy.
Strong Price Upside Potential for PGR Stock
Zacks Rank #1 The Progressive has an expected revenue and earnings growth rate of 20.5% and more than 100%, respectively, for the current year. The Zacks Consensus Estimate for current-year earnings has improved 6.7% in the last 60 days.
The average short-term price target of brokerage firms represents an increase of 14.2% from the last closing price of $243. The brokerage target price is currently in the range of $331-$197. This indicates a maximum upside of 36.2% and a maximum downside of 18.9%.
QUALCOMM Inc.
QUALCOMM is increasingly focusing on the seamless transition from a wireless communications firm for the mobile industry to a connected processor firm for the intelligent edge. With the accelerated rollout of 5G technology, QCOM is benefiting from investments toward building a licensing program in mobile.
QCOM formed a strategic collaboration with Google to develop Generative AI digital cockpit solutions. QCOM also recently introduced powerful automotive platforms to bolster the in-vehicle digital experience and facilitate automated driving. These initiatives are driving growth in the automotive business. Strength in the Android smartphone market is a tailwind.
Excellent Price Upside Potential for QCOM Shares
Zacks Rank #2 QUALCOMM has an expected revenue and earnings growth rate of 8.2% and 8.4%, respectively, for the current year (ending September 2025). The Zacks Consensus Estimate for current-year earnings has improved 1% in the last 90 days.
The average short-term price target of brokerage firms represents an increase of 20.6% from the last closing price of $167.62. The brokerage target price is currently in the range of $270-$160. This indicates a maximum upside of 61.1% and a maximum downside of 4.5%.
GE Aerospace
GE Aerospace has been witnessing strength in its businesses, driven by robust demand for commercial engines, propulsion and additive technologies. GE’s rising U.S. & international defense budgets, geopolitical tensions, positive airline & airframer dynamics and robust demand for commercial air travel augur well. GE’s portfolio-reshaping actions are likely to unlock values for its shareholders. For 2024, GE expects organic revenues to grow in the high-single-digit range from the year-ago level.
Robust Price Upside Potential for GE Stock
Zacks Rank #2 GE Aerospace has an expected revenue and earnings growth rate of 12.8% and 23.3%, respectively, for next year. The Zacks Consensus Estimate for current-year earnings has improved 0.7% in the last seven days.
The average short-term price target of brokerage firms represents an increase of 20.9% from the last closing price of $174.64. The brokerage target price is currently in the range of $235-$190. This indicates a maximum upside of 34.6% and no downside.
S&P Global Inc.
S&P Global remains well-poised to gain from the growing demand for business information services. Buyouts help innovate, increase differentiated content and develop products. The latest service launches have been aiding SPGI’s growth.
Dividend payments and share buybacks boost investors' confidence and positively impact earnings per share of SPGI. A current ratio of more than 1 indicates that SPGI will easily pay off its short-term obligations.
Impressive Price Upside Potential for SPGI Shares
Zacks Rank #2 S&P Global has an expected revenue and earnings growth rate of 12% and 19.5%, respectively, for the current year. The Zacks Consensus Estimate for current-year earnings has improved 1.8% in the last seven days.
The average short-term price target of brokerage firms represents an increase of 19.6% from the last closing price of $485.94. The brokerage target price is currently in the range of $620-$535. This indicates a maximum upside of 27.6% and no downside.
Boston Scientific Corp.
Boston Scientific is seeing strength across target markets. Strong worldwide demand for its MedSurg and Structural Heart lines, traction in United States and outside for its the next generation WATCHMAN FLX and FLX Pro, as well as contribution from accretive acquisitions are important drivers.
The Pain and Brain franchisees of BSX are expected to gain solid traction in 2024 banking on strong execution of core growth strategies. The Electrophysiology arm of BSX continues to gain momentum on sustained adoption of FARAPULSE PFA. The 2024 guidance indicating strong growth over 2023 builds confidence in the BSX stock.
Solid Price Upside Potential for BSX Stocks
Zacks Rank #2 S&P Global has an expected revenue and earnings growth rate of 16.4% and 20%, respectively, for the current year. The Zacks Consensus Estimate for current-year earnings has improved 2.5% in the last seven days.
The average short-term price target of brokerage firms represents an increase of 15.5% from the last closing price of $83.99. The brokerage target price is currently in the range of $110-$86. This indicates a maximum upside of 31% and no downside.
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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 https://www.zacks.com/performance for information about the performance numbers displayed in this press release.
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