U.S. equities are bolting higher on Wednesday as President Donald Trump and Chinese officials prepare to sign the “Phase 1” trade deal that has been hinted, rumored, and teased for what feels like an eternity. The deal will see the U.S. hold off on new tariffs in exchange for Beijing promising to purchase some $200 billion in American exports.
Optimists are hopeful this will open the door to additional agreements that can roll back the multi-year trade spat.
Stocks are responding strongly to the event, pushing the major averages to new highs as the Dow Jones Industrial Average closes in on the 30,000 mark.
Driving the move are a number of beaten down technology stocks. Here are four tech stocks worth a look:
Everyone’s favorite former VC-backed “unicorn” is coming back to life after an embracing post-IPO selloff that saw shares fall by roughly 50% from the highs set last summer. Uber (NYSE:UBER) shares are testing resistance in the mid-$30s that would open the door to a rally of around 30% back to last summer’s levels. The rally comes despite reports Goldman Sachs (NYSE:GS) has sold its stake in the company, thanks to the tailwind from rumors an activist investor could be accumulating a position.
The company is expected to report results on Feb. 6 after the close. Analysts are looking for a loss of 52 cents per share on revenues of $4.1 billion.
International Business Machines (NYSE:IBM) shares are pulling away from their 200-day moving average, pushing off of a basing pattern going back to late May amid a long sideways pattern going all the way back to 2011. Similar to Uber, the chatter is that activist investors could be accumulating a position in the company as it continues to struggle in an environment where the likes of Microsoft (NASDAQ:MSFT) and Amazon (NASDAQ:AMZN) are going from strength-to-strength in the cloud computing space.
The company is expected to report results on Jan. 21 after the close. Analysts are looking for earnings of $4.70 per share on revenues of $21.6 billion.
Snap (NYSE:SNAP) is pushing to new highs with a move above its July record, marking a rise of roughly 30%, returning to levels last seen in early 2018. Bernstein analysts gave it a “buy” rating and Jefferies analysts gave it an upgrade to “buy” from “hold.” The company is generating some attention for its augmented reality “Scan” app that unlocks experiences by, for instance, pointing your smartphone camera at a Coca-Cola (NYSE:KO) can.
SNAP is expected to report results on Feb. 4 after the close. Analysts are looking for break-even results on revenues of $561 million.
Zoom Video Communications (NASDAQ:ZM) is another turnaround play to watch, ending an eight-month downtrend pattern with a push above its November high. Watch for a run at last summer’s levels, which would be worth a gain of roughly a third from here. Growth has been strong as telepresence becomes more of an everyday part of business, growing earnings 85% last quarter from the prior year’s period.
ZM is estimated to report results on March 5. Analysts are looking for earnings of seven cents per share on revenues of $176.8 million.