The Zacks Analyst Blog Highlights Tesla, Taiwan Semiconductor and Tencent

For Immediate ReleaseChicago, IL – December 3, 2024 – Zacks.com announces the list of Stocks featured in the Analyst Blog. Every day the Zacks Equity Research analysts discuss the latest news and events impacting stocks and the financial markets. Stocks recently featured in the blog include: Tesla TSLA, Taiwan Semiconductor TSM and Tencent TCEHY.Here are highlights from Monday’s Analyst Blog:Are U.S. Stocks "Priced for Perfection"? Global Week AheadIn the Global Week Ahead, the world’s financial markets head into the month of December, laden with uncertainty over:·        Geopolitics·        Global trade, and·        Economic growthParticularly in Europe. France is in the crosshairs there, over its budget.U.S. President-elect Donald Trump's pledge to impose steep import tariffs on Canada, Mexico, and China has jolted markets, and upended interest rate and inflation forecasts.Next are Reuters’ five world market themes, reordered for equity traders—(1) November Ends. (A Volatile?) December Begins.Traders got a taste of what the months ahead may look like:·        Trump's pledge to slap tariffs on some of the United States' major trading partners has juiced up the U.S. dollar even more·        The greenback rose more than +1.5% against the Canadian and Mexican currencies, highlighting sensitivity to Trump-related headlines, and uncertainty over his policiesSo, November ends with the biggest monthly fall in the euro since early 2022, the steepest drop in German bond yields this year, the biggest bitcoin surge since February and one of the biggest monthly jumps in U.S. stocks this year.Now, for a volatile December.Trump aside, U.S. and euro area rates are tipped to fall, Japan's could rise.Geopolitics may bring relief (Middle East) and fear (Russia/Ukraine) as well as add political turbulence (France, Germany).(2) U.S. Large-Cap Share Indices? They Look “Priced to Perfection.”As U.S. stocks hover near record highs, investors await next Friday's jobs report for a clearer picture of how the economy is faring ahead of the Federal Reserve’s December meeting.Robust U.S growth has helped power stocks higher all year, even as it raises concerns of an inflationary rebound that can undo the Fed’s progress in taming consumer prices.But another blowout jobs report, such as the one that shocked markets in October, could derail expectations for how much the Fed will be able to cut in the months ahead, potentially shaking an important pillar of the stocks rally.Indeed, minutes of the last policy meeting showed Fed officials aren't unanimous on how much more rates should fall.Economists polled by Reuters expect the U.S. to have created +183K new jobs last month.(3) U.S. Tariff Fears Rise, as Mainland China Stimulus Hopes Also Rise.Trump's threat of new tariffs on Mexico, China and Canada hit Asian markets hard, but mainland shares have mostly shrugged off talk of a +10% levy on all Chinese imports, partly because it was lower than the +60% he campaigned on.But analysts think Beijing could produce whatever new stimulus is needed to counter the economic drag of a trade war, and several say the ultimate result will be an acceleration of China's high-tech self-sufficiency drive.The biggest loser has been staunch U.S. ally Japan, with the Nikkei down about -1.4% since Trump's Truth Social post, mostly led by auto stocks.Yet Honda is the top-ranking automaker after Tesla on Cars.com's "Made in America" list, with Toyota's Camry sedan and Highlander SUV also rating highly.Mexican factories remain a vulnerability for everyone, particularly for high-margin, top-selling pickup trucks.(4) A Proposed Budget in France Has Escalated Political Tensions.Tensions escalated in France over Prime Minister Michel Barnier's proposed budget, which contains 60 billion euros in painful tax rises and spending cuts.Far-right National Rally leader and coalition partner Marine Le Pen has threatened to topple the government over it and speculation is rising that this could happen by Christmas.French bonds haven't sold off too hard, but they've lagged the market so badly the premium France must pay to borrow over 10 years relative to Germany is back to 2012 crisis-era highs.The government is scrambling to compromise. The Senate begins examining the budget bill on Monday.(5) South Africa Takes Over the G20 Presidency.South Africa takes over the G20 presidency on Sunday, the first African country to lead the group that represents 85% of the world's economy, 75% of its trade and 67% of its population.President Cyril Ramaphosa wants to focus on climate change, inclusive growth, food security and artificial intelligence.But his agenda might be bumping up against the reality of trade wars and diplomatic tensions as Trump moves into the White House.South Africa is the fourth emerging market in a row to assume the chair after Indonesia, India and Brazil, and will hand the baton to the U.S. in December 2025.Zacks #1 Rank (STRONG BUY) StocksThese are the top three stocks, in our current #1 list, by Market Capitalization…(1) Tesla: This “Mag 7” stock is, at the moment I write, priced at $332 a share. It is found in Zacks Domestic-Auto industry. The market capitalization is a whopping 1.07T. I see a Zacks Value score of F (no surprise), a Zacks Growth score of D (no typo there!) and a Zacks Momentum score of C.Tesla is the market leader in battery-powered electric car sales in the United States, with roughly 70% market share.The company's flagship Model 3 is the best-selling EV model in the United States.Tesla, which has managed to garner the reputation of a gold standard over the years, is now a far bigger entity that what it started off since its IPO in 2010, with its market cap crossing $1 trillion for the first time in October 2021.The EV king's market capitalization is more than the combined value of legacy automakers including Toyota, Volkswagen, Daimler, General Motors and Ford.Over the years, Tesla has shifted from developing niche products for affluent buyers to making more affordable EVs for the masses.The firm's three-pronged business model approach of direct sales, servicing, and charging its EVs sets it apart from other carmakers.Tesla, which is touted as the clean energy revolutionary automaker, is much more than just a car manufacturer.(2) Taiwan Semiconductor: This cornerstone chip stock trades at $181 a share. It is found in our Semiconductor – Circuit Foundry industry. It now has a market cap of $939B. I see a Zacks Value score of C, a Zacks Growth score of C and a Zacks Momentum score of B.Taiwan Semiconductor Manufacturer Co. is the world's largest dedicated integrated circuit foundry.As a foundry, the Company manufactures ICs for its customers based on their proprietary IC designs using its advanced production processes.TSMC's goal is to establish itself as one of the world's leading semiconductor companies by building upon the strengths that have made it the leading IC foundry in the world.(3) Tencent:This is a $52 a share Mainland China stock. It is found in our Internet-Services industry. The stock now has a market cap of $476B. I see a Zacks Value score of B, a Zacks Growth score of A and a Zacks Momentum score of A.Tencent Holdings Ltd. is an Internet service portal.Tencent provides value-added Internet, mobile and telecom services and online advertising.Tencent's leading Internet platforms in China are QQ Instant Messenger, QQ.com, QQ Games, Qzone, 3g.QQ.com, SoSo, PaiPai and Tenpay.It has brought together China's largest Internet community, to meet the various needs of Internet users including communication, information, entertainment, e-commerce and others.Tencent Holdings Ltd. is headquartered in Shenzhen, the People's Republic of China.Why Haven't You Looked at Zacks' Top Stocks?Since 2000, our top stock-picking strategies have blown away the S&P's +7.0 average gain per year. Amazingly, they soared with average gains of +44.9%, +48.4% and +55.2% per year.Today you can access their live picks without cost or obligation.See Stocks Free >>Media ContactZacks Investment Research800-767-3771 ext. 9339support@zacks.comhttps://www.zacks.comPast performance is no guarantee of future results. Inherent in any investment is the potential for loss. This material is being provided for informational purposes only and nothing herein constitutes investment, legal, accounting or tax advice, or a recommendation to buy, sell or hold a security. No recommendation or advice is being given as to whether any investment is suitable for a particular investor. It should not be assumed that any investments in securities, companies, sectors or markets identified and described were or will be profitable. All information is current as of the date of herein and is subject to change without notice. Any views or opinions expressed may not reflect those of the firm as a whole. Zacks Investment Research does not engage in investment banking, market making or asset management activities of any securities. These returns are from hypothetical portfolios consisting of stocks with Zacks Rank = 1 that were rebalanced monthly with zero transaction costs. These are not the returns of actual portfolios of stocks. The S&P 500 is an unmanaged index. Visit https://www.zacks.com/performance for information about the performance numbers displayed in this press release.Only $1 to See All Zacks' Buys and SellsWe're not kidding.Several years ago, we shocked our members by offering them 30-day access to all our picks for the total sum of only $1. No obligation to spend another cent.Thousands have taken advantage of this opportunity. Thousands did not - they thought there must be a catch. Yes, we do have a reason. We want you to get acquainted with our portfolio services like Surprise Trader, Stocks Under $10, Technology Innovators,and more, that closed 228 positions with double- and triple-digit gains in 2023 alone.See Stocks Now >>Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report Tencent Holding Ltd. (TCEHY): Free Stock Analysis Report Taiwan Semiconductor Manufacturing Company Ltd. (TSM): Free Stock Analysis Report Tesla, Inc. (TSLA): Free Stock Analysis ReportTo read this article on Zacks.com click here.Zacks Investment ResearchWeiter zum vollständigen Artikel bei Zacks Weiter zum vollständigen Artikel bei Zacks