The Nasdaq 100 rocketed after the Fed announced a 75 basis point rate hike for the second straight month and hinted that policy tightening would be paused, pending economic data. This, along with better-than-expected corporate earnings, should help the index remain resilient in the near term. Therefore, it may be wise to invest in fundamentally sound Nasdaq 100 stocks Adobe (ADBE), Autodesk (ADSK), Dollar Tree (DLTR) and Gilead Sciences (GILD). Read more….
The Nasdaq 100 won more than 4% after the Federal Reserve announced a 75 basis point rate hike for the second straight month in response to decades of high inflation. This was Nasdaq’s biggest rally since November 2020.
The stock market rose yesterday despite the contraction of US GDP 0.9% for the second consecutive quarter. Better-than-expected corporate earnings could help the Nasdaq 100 remain resilient in the near term.
Adobe Inc. (ADBE)
ADBE functions internationally as a diversified software company. It operates through three segments: digital media, digital experience, and publishing and advertising.
Last month, ADBE announced innovations for its customer data platform (CDP), Adobe Real-Time CDP, to help brands transition from third-party cookies to third-party data. As companies across all industries adopt Adobe Real-Time CDP, ADBE is introducing enriched customer profiles with commerce, AI-powered targeting, new privacy and security tools, and Segment Match across channels.
Last month, ADBE also expanded its partnership with The Home Depot to improve the customer experience. As part of the company’s interconnected retail strategy, a smooth experience spans across e-commerce, an award-winning mobile app, and in-store services such as pick-up lockers and an in-app product locator. With so many touchpoints, the ADBE partnership provides comprehensive insights into the customer journey.
ADBE’s total revenue increased 14.4% year-over-year to $4.39 billion for the second quarter ended June 3, 2022. operating income grew 12% from a year ago to $1.97 billion, while non-GAAP net income was $1.59 billion, up 8.9% from the same quarter last year. The company’s non-GAAP EPS increased 10.6% year-over-year to $3.35.
Analysts expect ADBE revenue to grow 12.9% year-over-year to $4.44 billion for the third quarter ending August 2022. Consensus EPS estimate of $3.35 represents an improvement of 7.7 % year-over-year for the third quarter ending August 2022. is up 10.2% in the past month.
ADBEs POWR ratings reflect these promising prospects. The company has an overall rating of B, which translates to Buy in our proprietary rating system. The POWR Ratings rate stocks on 118 different factors, each with its own weighting.
The stock also has an A score for quality and a B for sentiment. Within the F-rated Software application industry, ADBE ranks 31 out of 154 shares
click here to see additional POWR ratings for growth, value, stability and momentum for ADBE.
Autodesk, Inc. (ADSK)
ADSK provides 3D design, engineering and entertainment software and services worldwide. The company provides AutoCAD Civil 3D, surveying, design, analysis and documentation solutions for civil engineering, including land development, transportation and environmental projects.
In April, ADSK announced that it is acquiring Autodesk Construction Cloud and incorporating a powerful construction management platform into its Standard Operating Procedures (SOP). Teams in Evans will use Autodesk Construction Cloud to quickly hire new employees, maximize coordination between project stakeholders, and minimize project errors.
In March, ADSK signed a definitive agreement to acquire The Wild, a cloud-connected, extended reality (XR) platform, including its eponymous solutions, The Wild and IrisVR. This acquisition enables Autodesk to meet the increasing need for augmented reality (AR) and virtual reality (VR) technology advancements within the AEC industry and to further support AEC customers throughout the project delivery lifecycle.
During the first quarter ended April 30, 2022, ADSK’s total net sales increased 18.3% year-over-year to $1.17 billion. Operating income grew 59.7% year-over-year to $214.00 million, while net income was $146.00 million. The company’s earnings per share were $0.67 for the quarter.
ADSK’s strong fundamentals are reflected in its POWR ratings. The stock has an overall B rating, which is equivalent to Buy in our POWR Ratings system. The stock also has an A rating for quality and a B for growth. Within the software application industry, it ranks number 28.
In total, we assess ADSK at eight different levels. In addition to what we have mentioned above, we have also provided ADSK figures for stability, value, sentiment and momentum. Get all ADSK ratings here.
Dollartree, Inc. (DLTR)
DLTR operates a variety of discount stores. It has two operating segments, Dollar Tree and Family Dollar. The Dollar Tree segment offers consumables, including candy and food, health and personal care, as well as everyday consumables. The Family Dollar segment operates general merchandise discount stores that offer consumables.
In the first quarter ended April 30, 2022, DLTR’s total revenue grew 6.5% year over year to $6.90 billion. Operating income grew 40.7% from a year ago value to $731.50 million, while net income was $536.40 million, up 43.2% from a year ago . The company’s earnings per share improved 48.2% year over year to $2.37.
The consensus EPS estimate of $1.59 for the second quarter ended July 2022 represents a 29.7% year-over-year improvement. Analysts expect DLTR’s revenue to grow 7% year-over-year to $6.78 billion for the second quarter ending July 2022. The stock is up 16.2% since the start of the year.
It’s no surprise that DLTR has an overall B rating, which is equivalent to Buy in our POWR Ratings system. DLTR has a B rating for growth and sentiment. In the A rating Grocery/Big Box Retailers industry, it ranks 26 out of 38 stocks.
click here to see the additional POWR ratings for DLTR (Stability, Momentum, Value and Quality).
Gilead Sciences, Inc. (GUILD)
GILD, a biopharmaceutical company, discovers, develops and commercializes drugs in the field of unmet medical needs in the United States, Europe and internationally. The company supplies products from Biktarvy, Genvoya, Descovy, Odefsey, Truvada, Complera/Eviplera, Stribild and Atripla.
This month, GILD and the European Commission signed a new Joint Procurement Agreement (JPA) that will ensure continued rapid and equitable access to Vekury for participating member states in the European Union (EU) and the European Economic Area (EEA). The agreement covers the acquisition of Veklury over the next twelve months and has an option to extend for a further six months.
For the first quarter ended March 31, 2022, GILD’s total revenue grew 2.6% year over year to $6.59 billion. Operating income was $197.00 million, while net income was $12.00 million. The company’s earnings per share were $0.02 for the quarter.
The consensus EPS estimate of $1.41 for the fourth quarter ended December 2022 represents 104.9% year-over-year growth.
GILD’s strong fundamentals are reflected in its POWR ratings. The stock has an overall A rating, which is equivalent to Strong Buy in our POWR Ratings system. The stock also has an A score for value and a B for sentiment and quality. Within the F-rated Biotechnology industry, it ranks number 7 out of 400 stocks.
In total, we assess GILD on eight different levels. In addition to what we’ve mentioned above, we’ve also provided GILD numbers for stability, growth and momentum. Get all GILD ratings here.
ADBE shares traded Friday afternoon at $409.06 per share, up $5.56 (+1.38%). Year-to-date, ADBE is down -27.86%, compared to a -12.68% rise in the benchmark S&P 500 index over the same period.
Spandan’s is a financial journalist and investment analyst focused on the stock market. With her ability to interpret financial data, she aims to help investors evaluate the fundamentals of a company before investing.