Yahoo Finance The Zacks Analyst Blog Highlights Axcelis Technologies, Decisionpoint Systems, Paycom Software and Zscaler
For Immediate Release
Chicago, IL – January 16, 2023 – 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: Axcelis Technologies, Inc. ACLS, Decisionpoint Systems, Inc. DPSI, Paycom Software, Inc. PAYC and Zscaler, Inc. ZS.
Here are highlights from Friday’s Analyst Blog:
4 Top Tech Stocks to Buy on Signs of Easing Inflation
Consumer prices in the United States have now started to show signs of easing after hitting a 40-year high last summer. Per the U.S. Bureau of Labor Statistics, the consumer price index (CPI) increased by 6.5% on a year-over-year basis in December, less than November's 7.1%, and registered the smallest 12-month jump since October 2021.
The annual rate of increase of CPI has now declined for the sixth month in a row. To put things into perspective, November's 7.1% annual increase in CPI was less than October's year-over-year increase of 7.7%.
In June, the CPI had surged by 9.1% year over year. What's more, on a month-over-month basis, the CPI declined by 0.1% in December and notched its first drop since the commencement of the coronavirus pandemic in 2020.
The cost of living eased primarily due to a fall in gasoline prices. Since last summer, gas prices continued to plummet, and gave households a major relief. Nevertheless, a slowdown in inflation gave confidence that the Federal Reserve may curtail the pace of interest rate increases this year, and not push the economy into a recession.Lest we forget, the Fed had unleashed a barrage of rate hikes last year to bring down sky-high inflation.
The central bank had increased interest rates by 50 basis points last month, and that followed a three-quarter point rate hike four times in a row. But here and now as inflation slows again, the fed-funds futures shows that there is a 96.2% chance of interest rates rising by only 25 basis points in February, according to the CME FedWatch Tool.
Meanwhile, the possibility of slower rate increases bodes well for growth-oriented tech stocks. This is because higher interest rates do impact tech stocks' future cash inflows, reduce their reinvestments into innovation and curb their growth prospects.
The beleaguered tech stocks, by the way, from almost all areas including e-commerce, payment sections, and cloud computing, to name a few, rocketed higher on Jan 12 after CPI showed inflation easing. Similarly, the tech-laden Nasdaq, which had a miserable 2022, was able to carve out a fourth straight winning streak yesterday.
With tech stocks roaring back to life, it's prudent for investors to place bets on solid tech companies such as Axcelis Technologies, Inc., Decisionpoint Systems, Inc., Paycom Software, Inc. and Zscaler, Inc. for superb returns.
These stocks carry a Zacks Rank #1 (Strong Buy) or 2 (Buy), and a VGM Score of A or B. Here V stands for Value, G for Growth, and M for Momentum, and the score is a weighted combination of these three metrics. Such a score allows you to eliminate the negative aspects of stocks and select winners. You can see the complete list of today's Zacks #1 Rank stocks here.
Axcelis Technologies is a leading producer of ion implantation equipment used in the fabrication of semiconductors. Presently, Axcelis Technologies has a Zacks Rank #1 and a VGM Score of B. The Zacks Consensus Estimate for its current-year earnings has moved up nearly 4 % over the past 60 days. ACLS' expected earnings growth rate for the current year is 73.3%.
Decisionpoint Systems is engaged in providing enterprise mobility and radio frequency identification technologies. Currently, Decisionpoint Systems has a Zacks Rank #1 and a VGM Score of A. The Zacks Consensus Estimate for its current-year earnings has moved up 50% over the past 60 days. DPSI's expected earnings growth rate for the current year is 500%.
Paycom Software is a provider of cloud-based human capital management software as a service solution for integrated software for both employee records and talent management processes. Presently, Paycom Software has a Zacks Rank #2 and a VGM Score of B. The Zacks Consensus Estimate for its current-year earnings has moved up 0.2% over the past 60 days. HCM's expected earnings growth rate for the current year is 31.3%.
Zscaler is one of the world's leading providers of cloud-based security solutions. Currently, Zscaler has a Zacks Rank #2 and a VGM Score of B. The Zacks Consensus Estimate for its current-year earnings has moved up 5.1% over the past 60 days. ZS' expected earnings growth rate for the current year is 79.7%.
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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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Axcelis Technologies, Inc. (ACLS) : Free Stock Analysis Report
DecisionPoint Systems Inc. (DPSI) : Free Stock Analysis Report
Paycom Software, Inc. (PAYC) : Free Stock Analysis Report
Zscaler, Inc. (ZS) : Free Stock Analysis Report
