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4 Stocks Poised to Win
The cryptocurrency rally in the first quarter, which saw Bitcoin (BTC) hit a new all-time high, came to a sudden halt. Bitcoin, which hit an all-time high of $73,750 on March 14, has declined sharply since then.
In April, Bitcoin fell 3.9%, after gaining more than 67% in the first quarter. This decline can be attributed to a number of factors, including the recently completed halving, which occurs once every four years.
Additionally, markets remained volatile in April as rising inflation reignited concerns that the Federal Reserve could keep interest rates higher for a longer period. High interest rates negatively impact growth assets such as technology stocks, consumer discretionary stocks and cryptocurrencies.
However, with Bitcoin halving, there is widespread speculation that the reduction in Bitcoin supply will cause the digital asset’s prices to rise due to scarcity in the coming months.
Miners, who play a crucial role in validating and recording transactions, receive rewards from the Bitcoin network in the form of block rewards and transaction fees. The halving event cuts the block reward in half, ultimately aiming to limit Bitcoin’s total supply to 21 million coins. As a result, the decrease in the rate of issuance of new Bitcoins generally leads to increased demand for the cryptocurrency, which in turn tends to drive up its price.
Needless to say, Bitcoin still has a lot of potential. Experts believe that the correction is over and that the cryptocurrency will soon resume its rally. Year to date, Bitcoin is up 39.3%. Additionally, markets attempted to rebound in May following a sharp decline in US GDP and a contraction in the manufacturing and services PMI, raising hopes of multiple declines in rate this year.
Our choices
We narrowed our search to four crypto-oriented stocks that have strong potential for 2024. Each of our picks carries either a Zacks Rank #1 (Strong Buy), 2 (Buy), or 3 (Hold). You can see the complete list of today’s Zacks #1 Rank stocks here.
NVIDIA Company NVDA is a major player in the semiconductor industry and has been one of the most notable success stories of 2023. As a leading designer of graphics processing units (GPUs), NVDA’s stock value has been trending to rise in a thriving crypto market. This is mainly due to the crucial role GPUs play in data centers, artificial intelligence, and cryptocurrency mining or production.
NVIDIA’s expected earnings growth rate for the current year is 84.7%. The Zacks Consensus Estimate for current-year earnings has improved 3.1% over the past 60 days. Currently, NVIDIA has a Zacks Rank #2.
The story continues
Coinbase Global, Inc. COIN provides financial infrastructure and technology to support the global cryptocurrency economy. COIN provides a primary financial account for consumers in the crypto space, a marketplace with liquidity for institutional transactions of crypto assets, and technology and services enabling developers to create crypto-based applications and accept cryptocurrencies securely as payment.
Coinbase Global’s expected earnings growth rate for next year is 1,840.5%. The Zacks Consensus Estimate for current-year earnings has improved 402.1% over the past 60 days. Coinbase currently sports a Zacks Rank #1.
Interactive Brokers Group, Inc. IBKR is a global automated electronic broker. IBKR executes, processes and trades cryptocurrencies. IBKR’s commodity futures trading desk also offers clients the opportunity to trade cryptocurrency futures.
Interactive Brokers Group forecasts an earnings growth rate of 12.9% for the current year. The Zacks Consensus Estimate for current-year earnings has improved 6.9% over the past 60 days. IBKR currently has a Zacks Rank #2.
Robinhood Markets, Inc.HOOD operates a financial services platform in the United States. Its platform allows users to invest in stocks, exchange-traded funds, options, gold and cryptocurrencies. HOOD buys and sells Bitcoin, Ethereum, Dogecoin and other cryptocurrencies using its Robinhood Crypto platform.
Robinhood Markets’ expected earnings growth rate for the current year is 190.2%. The Zacks Consensus Estimate for current-year earnings has improved 175% over the past 60 days. Robinhood Markets currently has a Zacks Rank #2.
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Interactive Brokers Group, Inc. (IBKR): Free Stock Analysis Report
NVIDIA Corporation (NVDA): Free Stock Analysis Report
Coinbase Global, Inc. (COIN): Free Stock Analysis Report
Robinhood Markets, Inc. (HOOD): Free Stock Analysis Report