Proceed with caution on chip stocks, warns one top analyst.
CBAN, ICUI, and NVDA have been added to the Zacks Rank #5 (Strong Sell) List on August 11, 2022.
The major market indexes have entered rally mode over the last month, but the S&P 500 index, Dow Jones Industrial Average, and Nasdaq Composite are all still down anywhere from 10% to 20% year to date. While no one knows where the markets will finish the year, companies that are still reporting high revenue growth rates in this environment certainly have advantages working in their favor and could be home-run stocks in the next bull market. Advanced Micro Devices (NASDAQ: AMD), Datadog (NASDAQ: DDOG), and Monday.com (NASDAQ: MNDY) all recently reported fantastic growth rates in the second quarter.