For a short period from the spring of 2020 until November of last year, when Tesla (TSLA) made massive gains, one of the most noticeable things about the stock was its resilience.
In this video, I will share my thoughts on Tesla's (NASDAQ: TSLA) Investor Day 2023 and why this was one of the most impressive presentations yet despite not giving us a sneak peek at the next-generation vehicle. In fact, we got so much more, and I couldn't be more bullish.
Shares of Tesla, Inc. TSLA fell 5.9% after Elon Musk’s presentation on an affordable EV failed to impress investors on Tesla’s investors.Shares of The Kroger Co. KR gained 5.4% after it reported fourth-quarter 2022 earnings per share of $0.99, beating the Zacks Consensus
The NASDAQ 100 Pre-Market Indicator is up 37.28 to 12,082.15. The total Pre-Market volume is currently 54,172,300 shares traded.The following are the most active stocks for the pre-market session: ProShares UltraPro QQQ (TQQQ) is +0.2099 at $22.32, with 4,393,847 shares traded.
European policymakers and executives have become less worried that billions of dollars of U.S. green subsidies will trigger an exodus of European firms across the Atlantic, and many think a huge new package of rival aid would not be the right response.
Honda Motor Co is moving rapidly to catch up with electric-vehicle competitors in global markets, but the company's top executive said combustion engines could last through 2040 and beyond.
Top energy executives and officials from around the world will descend on Houston next week just as the political fallout from Russia's invasion of Ukraine a year ago continues to distort global oil supply lines and put long-term energy security front of mind for governments.
It’s too soon to call October 13th the low for U.S. stocks. With the Federal Reserve steadfast in its view of higher rates for longer, equity valuations may not have yet reached the basement.
The good news is that the stock market has distanced itself from its 2022 bottom. And w
Tesla sold 74,402 China-made electric vehicles (EV) in February, up 31.65% from a year earlier, China Passenger Car Association (CPCA) data showed on Friday.
A SpaceX Crew Dragon capsule arrived safely at the International Space Station (ISS) after a brief delay early on Friday, carrying two U.S. astronauts, a Russian cosmonaut and a United Arab Emirates astronaut on a six-month science mission.
A SpaceX Crew Dragon capsule arrived safely at the International Space Station (ISS) early on Friday, carrying two U.S. astronauts, a Russian cosmonaut and a United Arab Emirates astronaut to begin a six-month science mission.
Asian shares rose on Friday on prospects for a steady economic recovery in China, and after Wall Street reversed losses overnight following remarks by the Atlanta Federal Reserve chief that signalled a measured approach raising U.S. interest rates.
Asian shares rose on Friday after Wall Street reversed
losses on signals of a measured policy tightening approach from
the U.S. Federal Reserve as well as on prospects of a solid
economic recovery in China.
After growth stocks hit a wall in 2022, they’re back in vogue so far in 2023. For example, the Vanguard Growth ETF (
NYSEARCA:VUG
), one of the largest growth ETFs in the market with over $75 billion in assets under management (AUM), suffered a 33.1% decline last year, but it's up 8.7% year-to-date. While this is a nice gain so far, analysts believe that VUG still has plenty of upside ahead -- the
average VUG stock price target of $275.23 implies upside potential of 18.5% from current levels. Additionally, according to the views of 4K analysts, the Vanguard Growth ETF is a “Moderate Buy.”
TipRanks uses proprietary technology to compile analyst forecasts and price targets for ETFs based on a combination of the individual performances of the underlying assets. By using the Analyst Forecast tool, you will get an overview of the overall analyst rating, analyst price target, and upside or downside for an ETF, as well as the highest and lowest price targets.
TipRanks calculates a weighted average based on the combination of all the ETFs’ holdings. The average price forecast for an ETF is calculated by multiplying each individual holding’s price target by its weighting within the ETF.
For the Vanguard Growth ETF, 65.5% of the analysts in our data set rate this ETF a Buy, while 30.6% view it as a Hold. Just 3.8% call VUG a Sell.
Furthermore, VUG has an ETF Smart Score of 8, meaning that it is likely to outperform the market. Other indicators tracked by TipRanks, such as Crowd wisdom and blogger sentiment, are also positive.
VUG's Holdings
VUG's holdings include 254 stocks, and its top 10 holdings make up 46% of the fund. The fund tracks the CRSP US Large Cap Growth Index, which is comprised of large-cap U.S. growth stocks. Growth stocks are simply stocks that are expected to grow their revenue, profit, or cash flow at a faster rate than the broader market. Growth stocks are often companies with innovative new technologies or companies that are disrupting existing industries.
While growth stocks are more volatile than the broader market, picking the right growth stocks can lead to significant returns. This is where an ETF like VUG that offers broad diversification to a wide array of top U.S. growth stocks comes in handy -- investors get exposure to hundreds of blue-chip growth stocks without single-stock risk.
There is plenty of overlap between growth stocks and tech, so you’ll find a heavy weighting towards large-cap tech stocks like Apple (
NASDAQ:AAPL
), Microsoft (
NASDAQ:MSFT
), Amazon (
NASDAQ:AMZN
), Alphabet (
NASDAQ:GOOG
) (
NASDAQ:GOOGL
) and Tesla (
NASDAQ:TSLA
) within VUG's top 10 holdings.
But growth stocks aren't limited to the tech sector -- payment networks Mastercard (
NYSE:MA
) and Visa (
NYSE:V
) are also among the top holdings, as is home improvement giant Home Depot (
NYSE:HD
). Other notable holdings include names like ThermoFisher (
NYSE:TMO
), McDonald’s (
NYSE:MCD
), and Nike (
NYSE:NKE
), so this ETF invests across a wide swath of high-quality U.S. growth stocks. Below is a look at the fund’s top 10 holdings.
Seven out of the top 10 holdings have Strong Buy ratings from analysts, including all five of the top five holdings. Analysts are particularly bullish on holdings like Amazon and Alphabet, which they collectively see as having upside potential of 50% and 43%, respectively.
Long-Term Performance
The Vanguard Growth ETF has a stellar track record over the long term. VUG suffered a 33.1% decline in 2022 as growth stocks struggled due to rampant inflation and rising interest rates. However, zoom further out, and VUG's performance looks a lot more impressive. VUG has returned 56.8% over the past five years and just under 200% over a 10-year time frame, even after accounting for last year's sell-off. Since its inception in 2004, VUG has returned 357.8%.
Dividend and Expenses
While it isn't necessarily enough to put VUG on the radar of income investors, this ETF is a
dividend payer that currently yields about 0.64%. In addition to this dividend, its bullish outlook from analysts, and its comprehensive portfolio of blue-chip growth stocks, one thing that really makes the Vanguard Growth ETF stand out is its minuscule expense ratio.
VUG features an expense ratio of just 0.04%, meaning that an individual investing $10,000 in VUG would pay just a negligible $4 in management fees over the course of a year. This is significantly cheaper than the 0.95% that Vanguard says is the average expense ratio for similar funds. Over the course of years and even decades, this can make a huge difference for an investor’s portfolio.
Assuming no change to the fee and a 5% annualized return, after 10 years, an investor with $10,000 in VUG would pay just $51 in fees over the course of the decade. Compare this to an ETF with an expense ratio of 0.5%, for example, and an investor would pay $50 in fees in just the first year alone. Over time, this makes a meaningful difference, and low fees like this can help investors preserve money.
Looking Ahead
While VUG is off to a nice start to 2023, analysts see more upside ahead, as discussed above. VUG could have more reversion to the mean coming after underperforming the S&P 500 (
SPX
) last year, as investor enthusiasm for growth and technology seems to be returning to the market based on a number of factors.
Inflation cooling down and the Federal Reserve slowing the pace of interest rate hikes would both bode well for growth stocks. Also worth noting is the fact that valuations for many growth stocks came down after last year's sell-off, meaning that valuation is now more palatable in many cases. Lastly, excitement over new innovations like consumer-facing generative
Artificial Intelligence (AI) applications like
ChatGPT is reigniting investor enthusiasm for tech stocks.
The Vanguard Growth ETF is a great way for investors who are just starting out to quickly gain instant, diversified exposure to a large group of blue-chip U.S. growth stocks, as 7 of the top 10 stocks enjoy Strong Buy designations based on TipRank's data.
Furthermore, with its low fees and strong historical performance, VUG is a great ETF for investors of all levels who want to have low-cost, broad exposure to growth in their portfolios.
Disclosure
Tesla Inc's planned factory in Mexico's northern border state of Nuevo Leon will be built on a site spanning several thousand acres, almost twice the size of its factory site in Texas, with construction slated to start in three months, a Mexican official said on Thursday.
Top energy executives and officials from around the world will descend on Houston next week just as the political fallout from Russia's invasion of Ukraine a year ago continues to distort global oil supply lines and put long-term energy security front of mind for governments.
The energy sector is a crucial part of the global economy, providing energy to power everything from homes to factories to transportation. The sector includes companies involved in the production, transportation, and distribution of energy resources such as oil, natural gas, and