From San Francisco to Tokyo: Zacks Investment's 'buy' recommendations

Описание: John Blank from Zacks Investment Research sees Palantir Technologies as personifying the “bubble” in markets, highlighting a forward P/E ratio of 280 and a price-to-sales ratio of 130—much higher than typical industry averages. He notes Palantir’s revenue is projected to grow from $3 billion in 2024 to $4 billion in 2025, but suggests the stock’s current valuation could imply an eventual significant price correction. Blank also points to a small group of high market capitalisation firms—such as Nvidia and Microsoft—at the centre of the AI rally, raising concerns about concentration and underlying earnings multiples.

Blank expects upcoming earnings season, with J.P. Morgan as an early reporter, to provide greater clarity on economic fundamentals. He references comments by Jamie Dimon regarding the risk of a market correction within the next two years, and remarks that the lack of US job growth and the prospect of spending cuts set this cycle apart from previous market bubbles.

Highlighting individual stocks, Blank notes $ZM’s decline from $560 to $80 per share despite consistent earnings beats, $FRES’s fourfold rise on silver’s bull run, and Kyocera’s turnaround potential following a strong earnings report. He cites Kyocera’s expansion into AI, signalling innovation at established firms.