FANG, an acronym created and popularized by CNBC‘s Jim Cramer, is an investors’ darling this year. These stocks — (Facebook (FB – Free Report) , Amazon.com (AMZN – Free Report) , Netflix (NFLX – Free Report) and Alphabet L) — have returned more than 20%. The emergence of cutting-edge technology is acting as key catalysts.
Additionally, a combination of factors like improving global fundamentals, strong corporate earnings, a rising interest rate scenario, and Trump’s proposed corporate tax reform have added to the strength.
Let’s take a look at the fundamentals of each of these four stocks:
Facebook has a Zacks Rank #2 (Buy) and a top Growth and Momentum Style Score of A each. It belongs to the solid Industry Rank in the top 31% and saw solid earnings estimate revision of 46 cents over the past 90 days for this year with an expected earnings growth rate of 26.54%. Additionally, the social media giant is expected to post solid earnings growth of 19.46%. Its revenues are also rising with Q3 and full-year growth projected at 40.90% and 42.26%, respectively. Given its solid fundamentals, shares of Facebook have surged 48.8% so far this year and the bull trend is likely to continue in the quarters ahead.
Amazon
Amazon carries a Zacks Rank #5 (Strong Sell) with a dismal Industry Rank in the bottom 13% but has a top Growth and Momentum Style Score of A each. It has gained 30.8% in the year-to-date time frame but could see some rough trading in the next few quarters given negative earnings revision activity. The e-commerce giant saw negative earnings estimate revision of $3.38 for this year over the past 90 days. Its earnings are expected to plummet 103.57% for Q3 and 29.08% for the year. However, revenues are expected to increase 28.29% in Q3 and 28.34% this year.
Netflix
Netflix (NFLX – Free Report) has popped up 57% in the year-to-date time frame and the trend is likely to continue in the next few quarters given positive earnings trend and solid fundamentals. This is especially true as the world’s largest video streaming company saw positive earnings estimate revision of 15 cents for this year in the past three months. Its earnings are projected to grow a whopping 165.2% for Q3 and 177.2% for this year. Revenues are also expected to grow 29.86% and 30.55%, respectively. The stock has a Zacks Rank #2 with a dismal VGM Style Score of F and an ugly Industry Rank in the bottom 42%.
