The rush of the 38% that the Nasdaq accumulates in this year of the coronavirus has new arguments to continue stretching. Analysts agree that the result to which point the polls in the US promises to new energy to the technology indexbut not all their values are in equal conditions to take advantage of the situation.
A large group of actions that, until now, most of the stands have been pulled off the Nasdaq has exhausted all the potential that its fundamentals justify. However, according to the consensus of analysts who closely follow them, others still have scope for further fatten the bulging revaluations accumulated since I began this year of the coronavirus.
Among the first group of values as a row and pointers as Tesla (+403%) and Zoom Video Communications (+610%). Both have exhausted their potential bullish consensus, and, in addition, accumulate each time less purchase recommendations. There are cases of listed as the biotechnology Modern (+257%), or the signature of electronic payments PayPal (+80%), the analysts continue to profit margin and recommendation of increasing portfolio.
Matter of polls
The director of analysis of Link Securities Juan Jose Fernandez-Figares, points out how the outcome that seems to move toward the counting of votes in the US is a good news for the technology index. “The fact that it has not produced the much-vaunted ‘blue wave’ makes it much more complicated than the adoption of a restrictive regulatory for the companies” of Silicon Valley.
In addition, the expert points out that the expected control of the Senate by the republicans “will stop the tax hikes that were intended to implement the democrats.” And that is that ‘blue’ had not only the account of results of the companies of the sector in the spotlight, but also provided increase the level of taxes on capital gains for households with income above one million dollars a year.
From the broker to the English, his director of analysis points out that the approval of this tribute “it would have led to many sales in the bags before being approved”and especially in the values in which most profits were accumulating recently. This today could translate into “growth stocks, most of which belong to the technological sector”, specifies Fernández-Figares.
The absence of these arguments for the step-by-box, are added that make the technology sector an attractive destination for investors in this time of doubt. The analysts of Ebury point out that the lack of enforcement of the polls and disputes dialectics between the two major candidates could lead to “a scenario similar to the election of Bush vs. Gore 2000”.
Not everything is worth
With a stage like this, “the more we prolong the uncertainty about the election result, more supported, we will see the refuge assets”. And that, in the u.s. equity results in values of technology, not only have weathered the current crisis, but have come out more stronger from it. The increases of 38%, with the Nasdaq sum from January compared to 0.5% drop in the Dow Jones are striking.
However, even with all these assumptions, Paul O’connor, head of multi-asset company british Janus Henderson, warns that “we are not in a bullish phase” of the market. So, it becomes critical to take care of the selection of securities in which to invest while “the titles of health and technology held the idea that the plans of Joe Biden will be mitigated by a Senate led by the Republican Party.”
More than 50%
Between the 21 quoted in the Nasdaq that accumulate revaluations of more than 50% so far this year, the most bullish potential preserves currently is Modern. The company involved in the obtaining of a vaccine against the Covid-19 still has a margin to earn a 31% extra, up to the 92,54 dollars per share, according to the target price that collects Refinitiv.
Two other biotechnology more complete the podium of the that after having risen with strength until now I still could do it more and with ease. DexCom Inc account with a potential bullish consensus to build on the 57% that builds up from January. Regeneron Pharmaceuticals could fatten still their price per share by 15% after you have added increases of 56%.
In the group which may enjoy the complicity of the polls are two giants in the world of e-commerce. Amazon, which has risen by 75% this year, with a tour of 14% to 3.726,61 dollars a share that analysts point to your target price.
The second of this segment of business is PayPal. The progress of your graphics could reach 10% if we take for good the 220,03 dollars per title that mark the experts for the giant of electronic payments. A margin that is significant if one takes into account that already goes up 80% since January and that the recent adoption of the criptomonedas in their platforms has triggered a trickle of upwards revisions of council investor who only just started.
Above 7.8%, which is still treasure for the comeback of the actions of Netflix (+54%), are placed NetEase (+53%) and Seagen (+57%), with a potential bullish respectively reached 14.5% and 12% in the opinion of some analysts who begin to discount these new political arguments that the rally in the Nasdaq follow far from exhausted.