5 Reasons to Be Bullish in Q4

[Zacks | Our Research. Your Success.] WeekendWisdom Tactics that Work in Good Markets and Bad [Andrew Rocco - Editor] 5 Reasons to Be Bullish in Q4 By: Andrew Rocco November 9th, 2024 --------------------------------------------------------------- Despite concerns about the presidential election, inflation, interest rates, housing, geopolitical escalations, valuations, the yield curve, and an overbought market, U.S. stocks have climbed the proverbial "wall of worry" to trend higher in 2024. Not only are stocks higher despite the bear's concerns, but they are off to their best start ever in a presidential election year, with the S&P 500 Index up a healthy 22% and the tech-heavy Nasdaq higher by 23%. That said, should investors buy stocks here, or be concerned that the run is over? Can the animal spirits continue? Five reasons to be bullish into 2025 Big Tech: Strong Earnings and Forward Expectations Though big tech stocks like Meta Platforms (META), Arm Holdings (ARM), Alphabet (GOOGL) have enjoyed robust gains in 2024, those gains are likely to extend into 2025 because of robust expectations. Forward EPS expectations are one of the key ingredients of the Zacks Rank and are the best predictor of stocks moving forward. Several big tech stocks like the ones mentioned above enjoy a Zacks Rank #2 (Strong Buy). Meanwhile, Wall Street estimates for Nvidia (NVDA), the most important AI company, suggest the company will more than double its EPS in for full-year 2025. Finally, companies like Tesla (TSLA), which reported EPS last recently, benefit from the newly "dovish" Federal Reserve monetary policy stance. Tesla guided auto growth to 25% in 2025, smashing estimates of 16%. Tesla's regulatory credit revenue plunged 17% quarter-over-quarter, but earnings beat expectations by a wide margin due to a dramatic improvement in cost of goods sold (COGS). TSLA rewarded the bulls with a 22% jump last week. Continued . . . [Only $1 for AI Stock Access]( Artificial Intelligence (AI) is just starting to skyrocket from $40 billion to $1.3 TRILLION in revenue in 10 years, igniting many tech stocks along the way. Today, you can be among the first to Zacks’ newest stock that will be revealed Monday morning. It could have much more upside than even NVIDIA through the end of 2024. Special opportunity ends at midnight Sunday, November 10. [Start Access Now for $1 »]( Bullish Call Activity Sharp, deep-pocketed investors are accumulating massive amounts of call options in big tech names like META and AAPL. Because big tech stocks comprise such large market caps and are critical to growing industries like AI, strength in these names will equate to strength in the general market. Investors should get a better sense of AI, cloud, and big tech growth in general when Google reports earnings tomorrow after the close. Seasonal Tailwinds Seasonality dramatically favors the bulls into year-end. According to Ryan Detrick of Carson Investment Research (@RyanDetrick) November, December, and January are historically the best three months of the year using data going back to 1950. Meanwhile, November has been green in eleven of the past twelve years. Relative U.S. Equity Positioning Despite the rally in U.S. Stocks, relative U.S. equity position (versus the world) is significantly underweight compared to the past two presidential election cycles (according to Seth Golden @sethCL). In other words, domestic markets have room for more upside if investors become more bullish. Risk-on Industries are Strong Risk-on market areas are moving higher, while risk-off areas are moving lower. For example, bitcoin proxy MicroStrategy (MSTR) is crushing the S&P 500 Index year-to-date. At the same time, energy was slammed today after the geopolitical situation in the Middle East showed signs of cooling off. How You Can Access the Most Promising Stocks in Tech and AI Though stocks are enjoying a historically strong presidential election year, all signs suggest the bull market will continue into Q4. And you can find big discounts on many of the most desirable stocks right now. I believe this is a phenomenal time to add cutting-edge tech stocks to portfolio - especially ones that are quietly driving the AI revolution. They could hand you the juiciest profits in the weeks and months ahead... but they're probably not the stocks you're used to hearing about. With that in mind, I invite you to look inside the portfolio I'm managing, [Zacks Technology Innovators](. We don't nail every pick but have recently closed winners like +121.0%, +60.2%, and +147.9%.¹ And on Monday, I'm going to add an AI-powered ecommerce stock to the portfolio that has exceptional upside. You can be among the first to see this fresh pick. Plus, you'll also have the chance to immediately access all of the other live stocks inside. Time-Sensitive Bonus: When you check out our Technology Innovators portfolio today, you're invited to download our just-released Special Report, Beyond AI: The Quantum Leap in Computing Power. We reveal 7 carefully selected stocks poised to dominate the quantum computing landscape. These aren't just speculative plays - they're established companies making real moves in quantum technology. One of these stocks could be "the next big thing" and surpass NVIDIA for quantum computing supremacy. Just an inch away from the number one position in the industry, the company's CEO is surrounded by the most competent engineering talent in the world. Their strategic approach makes them one to watch closely. Don't wait. The total cost to see all Zacks tech stocks (and other recommendations) for 30 days is an astonishing $1. That's it. There's no further obligation. Deadline for this unique opportunity is midnight Sunday, November 10. [Gain Access Now for Just $1 »]( All the Best, [Andrew Rocco - signature] Andrew Rocco Andrew is Zacks' technology stock strategist. His passion is making money on stocks along with education, where he aims to provide valuable insights from both a fundamental and technical perspective in his [Technology Innovators]( portfolio. ¹ The results listed above are not (or may not be) representative of the performance of all selections made by Zacks Investment Research's newsletter editors and may represent the partial close of a position. Access grants you a comprehensive list of all open and closed trades. This free resource is being sent by [Zacks.com](). We look for investment resources and inform you of these resources, which you may choose to use in making your own investment decisions. Zacks is providing information on this resource to you subject to the Zacks "Terms of Service". 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 is not a licensed securities dealer, broker or US investment adviser or investment bank. The Zacks #1 Rank Performance covers the period beginning on January 1, 1988 through October 7, 2024. 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 for information about the performance numbers displayed above. Zacks Emails If you would prefer to not receive future profit-producing emails from [Zacks.com]() the primary purpose of which is the commercial advertisement or promotion of a commercial product or service, then please [click here]( and confirm your request. If you have trouble with the unsubscribe link, please email support@zacks.com. Zacks Investment Research 10 S. Riverside Plaza, Suite 1600 Chicago, IL 60606