Today’s episode of Full Court Finance at Zacks dives into the broader market as we head into September. The bullish outlook remains in place despite various concerns and all three major U.S. indexes are trading right near their all-time highs. Given this backdrop, investors might want to consider buying two highly-ranked technology stocks trading at huge discounts at the moment.
All three major U.S. indexes slipped through early afternoon trading Tuesday. Despite the dip on the last day of August, the Dow, the S&P 500, and the Nasdaq all remain on track to post solid monthly gains. The market reacted positively to Jerome Powell’s speech late last week that continued his dovish tone on interest rates, even though the central bank is planning to scale back its bond purchases at some point later this year.
Wall Street also appeared pleased the FDA gave the Pfizer Covid-19 vaccine full approval, which many hope will encourage more people to get the vaccine. Plus, weekly jobless claims are hovering at their lowest levels since March 2020, despite delta variant worries. On top of that, the overall earnings picture continues to improve.
The market could experience some near-term selling given the solid run since the mid-July pullback. Luckily, the interest rate environment will continue to favor stocks for the foreseeable future even when the Fed finally raises rates.
Tech and growth names benefit even more from low rates, which means now is still a great time for long-term investors to buy. And why not consider scooping up two strong growth-focused technology stocks trading well over 20% below their records even as the Nasdaq sits at new heights.
Pinterest (PINS) ,which lands a Zacks Rank #2 (Buy), got crushed after its Q2 earnings release on the back of a sequential decline in monthly active users. Luckily, its average revenue per user still climbed, as the decline marked a loss of more casual web browser users.
The visual discovery platform is set to thrive in the modern digital ad age and it’s a hit with advertisers, small businesses, entrepreneurs, and do-it-yourself enthusiasts. And unlike some of Facebook’s (FB Quick QuoteFB - Free Report) platforms, many users go to Pinterest to find purchase inspiration.
Roku (ROKU) is a Zacks Rank #1 (Strong Buy) that tumbled following its second quarter release in early August amid a slowdown in streaming hours. The stock also became a victim of its own success.
Despite the setbacks, the streaming TV company and its booming ad business stand to grow for years no matter who has the most subscribers or the hottest show in the fight between Netflix (NFLX) , Disney (DIS) , Apple (AAPL) , and countless others.