Opera Limited American Depositary Shares (OPRA)

Opera, a Norway-based web browser maker, has seen its stock drop 8% so far this year, but analysts believe it could surge 44% in the next 12 months. The company's strong quarterly results, improved growth guidance, and attractive valuation make it a compelling investment opportunity.

The Federal Reserve's hawkish pivot has rattled markets, but select stocks like TaskUs, Warner Bros. Discovery, and Opera offer opportunities for investors amid the volatility. These companies are well-positioned to capitalize on trends in AI and media, providing potential for short-term momentum and long-term growth.

Shutterstock and Opera are part of the Zacks Industry Outlook article.

The first quarter of 2024 has turned out to be a blockbuster for most asset classes, and the strong performances have left investors worried about the sustainability of the uptrend. How long will the party last? What are the risks involved in investing in an overbought market? Benzinga collated views from analysts and economists to make sense of the rally so far and zero in on the opportunities that could pay off in the near to medium term. Equity Market — From Shaky Start To Strong Surge: The equity market kicked off the new year with a whimper, with concerns that 2023’s gains might not hold. However, the momentum from last year carried through, quashing skepticism and propelling the market to new highs. Three months in, the S&P 500 Index has notched record highs for both closing and intraday trading. Blue-chip stocks mirrored this performance, with the Dow Jones Industrial Average closing the quarter at a fresh record. Tech stocks were once again at the forefront, fueled by the AI boom that spurred gains for companies of all sizes. However, the tech-heavy Nasdaq Composite couldn’t quite reach its record peak as valuation concerns prompted some profit-taking near the quarter’s end. Source: Benzinga The more heartening aspect of the recent rally is that, unlike in 2023 when it was nearly exclusively fueled by tech, this time around, the participation has broadened.  LPL Financial‘s Chief Technical Strategist, Adam Turnquist, said in a recent note that the strong uptrend in the S&P 500 Index is supported by broad participation and cyclical leadership. “Improving relative strength in industrials, financials, and materials provides additional evidence of a bullish rotation that has largely been overshadowed by mega-caps and AI enthusiasm,” he said. See Also: Investing In Stocks For Beginners AI optimism drove much of the upside early in the quarter, with stocks such as Nvidia Corp. (NASDAQ:NVDA) and Microsoft Corp. (NASDAQ:MSFT) — the ones at the forefront of the revolution — clocking strong gains for the year. In the latter half, stocks received support from the Fed leaning toward rate cuts.

Discover the top growth stocks leading the market rally, predominantly owned by the tech sector. Explore their impressive performance and prospects in a volatile market.