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Is Globant S.A. (GLOB) the High Growth International Stock to Invest in Now?

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Is Globant S.A. (GLOB) the High Growth International Stock to Invest in Now?

We recently published a list of 12 High Growth International Stocks to Invest in Now. In this article, we’re going to take a look at where Globant SA (NYSE:GLOB) stands against other international high-growth stocks to invest in now.

On January 15, Jurrien Timmer, head of Global Macro at Fidelity Management & Research Company, shared his outlook for 2025. He believes the market has lost some of its momentum as prospects for further rate cuts in 2025 have narrowed. . One of the reasons for the less likely rate cuts came a few weeks ago with a better-than-expected labor market report, which caused the market to drop. Additionally, long-term interest rates rose that same day. The 10-year Treasury yield approached the 5% mark that has dogged stocks in the past.

However, Timmer believes the market is still in a bullish phase, driven primarily by rising earnings, which he expects will continue to support market growth. This optimism is based on the historical performance of bull markets, where earnings often play a crucial role in sustaining bullish momentum. He noted that as bull markets mature, they typically experience greater volatility. This means that even minor disturbances can cause major fluctuations in the market. High price-earnings (P/E) ratios contribute to this sensitivity, as high valuations can make the market more susceptible to corrections. Timmer also highlighted his concerns about interest rates, specifically the Federal Reserve’s ability to cut rates, which are likely to persist. This “interest rate anxiety” could continue to influence market behavior throughout the year, as investors continue to grapple with how changes in rates may affect stock valuations and overall economic conditions.

Additionally, Timmer also analyzed the changing dynamics in the stock market, focusing particularly on the transition from a narrow leadership group to broader market participation. He noted that in the second half of 2024, there was a notable shift in market leadership from the “Magnificent Seven” to a broader range of stocks. This widening indicates that more sectors and companies are contributing to the market’s gains, which is generally considered a positive sign for the overall health of the market. However, since mid-December, following lower expectations from the Federal Reserve for interest rate cuts, the market has lost momentum, with only 24% of stocks trading above their 50-day moving average, and only 29% of S&P 500 stocks were above the 50-day moving average. index. This indicates a shrinking share of market profits, worrying investors who prefer broad-based growth.

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