Bitcoin’s built-in scarcity makes it an intriguing potential store of value, almost like “digital gold” for the digital age. The upcoming halving cuts the Bitcoin miners’ block rewards in half (and thus the token’s incoming supply). This could create a supply shock that sends Bitcoin stratospheric.

While Bitcoin garners much of the attention in this space, and rightfully so, savvy crypto investors know smaller altcoins can deliver truly outsized returns during bull runs. The last major run-up in late 2020 saw many altcoins deliver returns well over 1,000%!

Of course, with bigger potential rewards comes bigger risks. Altcoins remain extremely volatile and highly-speculative assets. I only recommend investing money you can afford to lose. Still, for those with some risk tolerance, I’ve compiled three altcoins I believe are undervalued heading into the upcoming halving.

SwissCheese (SWCH-USD)

At first glance, SwissCheese (SWCH-USD) may look like another meme coin thanks to its quirky name. But don’t let that fool you. This project has real substance and utility that could make it one of the most sought-after cryptos once word spreads.

SwissCheese aims to democratize trading and investing by enabling fractional ownership of stocks through tokenized representations on its decentralized platform. Users can access these fractional stocks through any digital token, cryptocurrency, or the native SWCH token. Each tokenized asset essentially represents a slice of an underlying stock.

This concept blows open stock market investing for those currently blocked by borders, regulations, or lacking payment options. Crypto knows no borders, so accessing U.S. stocks becomes far easier from abroad using SwissCheese’s platform. Decentralization also brings privacy benefits, which will appeal to many crypto enthusiasts.

As I write this, SwissCheese’s market capitalization sits at just $6.4 million. That said, the project’s total addressable market here could be enormous, given the platform’s global appeal and ability to tap into crypto hype. If SwissCheese gains even modest traction, its tiny valuation today could translate into 10x or 20x returns (or higher) ahead. That asymmetric risk-reward looks compelling to me.

Alephium (ALPH-USD)

Alephium (ALPH-USD) has been skyrocketing lately, joining the ranks of red-hot layer 1 blockchain projects. It competes directly against names like Kaspa (KAS-USD), Sei (SEI-USD), and others, but still sports a reasonable $190 million market cap at the time of writing.

This sharded blockchain platform focuses on delivering scalability, security, and energy efficiency to power the next generation of Web3 and decentralized applications.

From a tech perspective, Alephium uses a UTXO model and a unique Proof-of-Less-Work consensus that improves on Bitcoin’s pioneering protocol. It also boasts a custom virtual machine and tooling to support developers building on Alephium.

Over the past year, we’ve witnessed immense speculation and interest around ambitious layer 1 chains. Just look at Kaspa’s parabolic rally.

Alephium offers a similar value proposition – yet trades at a fraction of its competitors’ valuations. Given the massive room for additional upside, I wouldn’t be surprised if ALPH enters the ranks of 10-figure market cap cryptos.

Layer 1 protocols like Alephium offer ideal asymmetric upside for investors with a higher risk tolerance. Current prices seem inexpensive if Alephium can indeed evolve into a premium smart contract blockchain.

PAAL AI (PAAL-USD)

At the intersection of two red-hot trends – AI and crypto – sits PAAL AI (PAAL-USD). This chatbot project uses artificial intelligence and machine learning and integrates these technologies within its network.

PAAL AI also incentivizes its community by rewarding users with native tokens. PAAL tokens play governance and staking roles – or can unlock premium features.

We’ve witnessed the explosion of interest and adoption around AI chat tools like ChatGPT in recent months. I believe it’s only a matter of time before blockchain-based AI projects like PAAL also grab investor attention. That’s especially true given the synergy with crypto’s emphasis on computing power, decentralized networks, and community reward systems.

Consider Render Network (RNDR-USD), which allows users to monetize or access GPU power to run intensive computing tasks. Or proof-of-work chains that rely on miners contributing hardware for security and rewards. As blockchain platforms grow more advanced, I suspect we’ll see far more collaboration and interplay with AI as well.

PAAL’s current market price suggests this token may be relatively inexpensive, if we continue to see surging interest in both AI and crypto. With the recent breakout to new highs and a current market capitalization of $176 million, PAAL AI offers sizable upside potential if adoption scales up in 2024 and beyond.

On Low-Capitalization and Low-Volume Cryptocurrencies: InvestorPlace does not regularly publish commentary about cryptocurrencies that have a market capitalization less than $100 million or trade with volume less than $100,000 each day. That’s because these “penny cryptos” are frequently the playground for scam artists and market manipulators. When we do publish commentary on a low-volume crypto that may be affected by our commentary, we ask that InvestorPlace.com’s writers disclose this fact and warn readers of the risks.
 Read More: How to Avoid Popular Cryptocurrency Scams

On the date of publication, Omor Ibne Ehsan did not hold (either directly or indirectly) any positions in the securities mentioned in this article. The opinions expressed in this article are those of the writer, subject to the InvestorPlace.com Publishing Guidelines.

Omor Ibne Ehsan is a writer at InvestorPlace. He is a self-taught investor with a focus on growth and cyclical stocks that have strong fundamentals, value, and long-term potential. He also has an interest in high-risk, high-reward investments such as cryptocurrencies and penny stocks. You can follow him on LinkedIn.

More From InvestorPlace

• The #1 AI Investment Might Be This Company You’ve Never Heard Of
• Musk’s “Project Omega” May Be Set to Mint New Millionaires. Here’s How to Get In.

The post Bitcoin Halving Moves: 3 Altcoins to Buy Before They Become Moonshots appeared first on InvestorPlace.

A good example is that investors generally take low interest in good stocks that are trending lower due to near term headwinds. On the other hand, there is euphoria around stocks that have skyrocketed and the “fear of missing out” results in investors making wrong decisions.

This column focuses on the oversold stocks to buy that trade at a valuation gap. In my view, these stocks can witness a sharp reversal rally in the coming quarters. I would not be surprised if investors line-up to buy the same stores at a 30% to 50% premium. Without doubt, it makes more sense to buy now and hold with patience.

Let’s discuss the reasons that make these oversold stocks to buy worth considering.

Oversold Stocks to Buy: Miniso Group (MNSO)

Miniso Group (NYSE:MNSO) stock had touched highs of $30 in September 2023. MNSO stock has, however, witnessed a sharp correction of 43% to $17. Besides profit booking, weak sentiments for Chinese stocks have contributed to the decline. The growth stock looks undervalued at a forward price-to-earnings (P/E) ratio of 15.6. Additionally, MNSO stock offers a dividend yield of 2.44%.

From a financial perspective, Miniso reported revenue growth of 36.7% on a year-on-year (YOY) basis to $519.6 million. For the same period, adjusted EBITDA increased by 52.8% to $139 million.

Robust growth and margin expansion has been driven by two factors. First, Miniso has aggressively opened new stores in China and overseas. As of Q1 2024, the company reported 6,115 stores, which was higher by 819 on a YOY basis. Further, Miniso has shifted towards a favorable product mix that has boosted margins. Additionally, the company has a dynamic product portfolio and benefits with an aggressive addition of new SKUs.

Piedmont Lithium (PLL)

Piedmont Lithium (NASDAQ:PLL) stock has plunged by 80% in the last 12 months. The obvious reason is a massive correction in lithium prices. However, specific to the company, business developments have been positive and I expect a sharp rally from deeply oversold levels.

It’s worth noting that the company is already shipping spodumene concentrate from its joint-venture mining operation in Quebec. This is just the beginning and Piedmont expects to ship 525,000 tpy of spodumene concentrate once all assets commence production.

In an important development, Piedmont Lithium has received a mining lease for its Ghana project in Q3 2023. The lease term is for 15 years with commercial production expected to commence in 2026. Further, the company’s Tennessee project (100% owned) has received permits required to begin construction. In the United States, the Carolina asset is another potential cash flow machine. Amidst all these developments, PLL stock continues to trend lower and is clearly undervalued.

Newmont Corporation (NEM)

Among blue-chip stocks, Newmont Corporation (NYSE:NEM) has witnessed a sharp sell-off in the recent past. At a forward P/E ratio of 21.2, the stock looks attractive. NEM stock also offers an attractive dividend yield of 4.98%.

With inflation being relatively stubborn, there seems to be less clarity on the timing of expansionary policies. This has translated into some weakness in gold and gold miners. However, it’s clear that rates have peaked out and I expect rate cuts to translate into higher gold prices.

Newmont Mining, with quality assets and an investment grade balance sheet, is positioned to benefit. Further, with it’s gold rallies by 15% to 20% from current levels, the company will be positioned to report annual operating cash flows of more than $5 billion. Therefore, there is visibility for aggressive investments coupled with healthy dividend growth. I would not be surprised with a strong rally in NEM stock in the second half of the year.

On the date of publication, Faisal Humayun did not hold (either directly or indirectly) any positions in the securities mentioned in this article. The opinions expressed in this article are those of the writer, subject to the InvestorPlace.com Publishing Guidelines.

Faisal Humayun is a senior research analyst with 12 years of industry experience in the field of credit research, equity research and financial modeling. Faisal has authored over 1,500 stock specific articles with focus on the technology, energy and commodities sector.

More From InvestorPlace

• ChatGPT IPO Could Shock the World, Make This Move Before the Announcement
• Musk’s “Project Omega” May Be Set to Mint New Millionaires. Here’s How to Get In.

The post 3 Oversold Stocks to Buy for a Massive Reversal Rally appeared first on InvestorPlace.

The Federal Reserve will need greater confidence that it Is moving inflation Sustainably toward its 2% goal before cutting rates. It currently has little pressure to do so given the relatively strong jobs environment.

That means individuals and companies that were counting on lower rates just received additional pressure. The three discussed below are just a few of many that should be sold amid shifting interest rate expectations.

Arbor Realty Trust (ABR)

Arbor Realty Trust (NYSE:ABR) Continues to head downward in 2024. Like so many other real estate firms, it has been pummeled by Fed decisions to hold rates higher for longer. The bright side for investors, if there is one, is that shares are currently below the low target price assigned by analysts. That said, it is not a contrarian pick worth making because the company has legitimate problems.

Those legitimate problems all revolve around debt of course. Arbor Realty Trust is one of the more heavily indebted REITs. REITs, by the way, are generally high debt by Nature making ABR  particularly troubled. 

The company has aggressively used debt to create growth but in the process created a debt to equity ratio that is particularly weak. The company has leveraged debt over the past decade at a pace that is more than three times higher than the industry average. That was less of a problem when rates were much lower. However, today those high rates result in rising interest expenses. The company is looking worse and worse as future rate cut dates become less and less certain.

Mullen Automotive (MULN)

Financing costs are a particular problem for EV firm Mullen Automotive (NASDAQ:MULN). Recent news that rate cuts are likely to come later than expected is just one more reason for investors to jettison the stock.

The company is effectively a slow moving train wreck. it loses astounding amounts of money and those losses are mounting. The company lost more than $1 billion through the first nine months of 2023, up from a $750 million loss during the same period a year earlier. The company had only $155 million of cash and equivalents at that point so it is clearly facing some real issues.

Those issues manifest as an extraordinarily low Altman Z score. The Altman Z score is a metric used to assess the likelihood of bankruptcy in the near term. Mullen Automotive’s reading indicates that it could fold at any point. 

Here’s the other issue: Mullen Automotive has a return on invested capital of -58%. give them $1 and they’ll turn it into $0.42. 

Redfin (RDFN)

Redfin (NASDAQ:RDFN) has had a lot of trouble over the past few years, particularly beginning in late 2021. That’s when the first indications arose that rate hikes were ahead. Real estate stocks tend to do very poorly in high rates environments that jack mortgage rates up. Redfin was no exception. 

The company just confirmed that pending sales reached their lowest point in the last four months. The press release delivering that news cited the Fed’s confirmation that rates are unlikely to be cut in the next two months. Thus, mortgage rates are going to remain high. In turn, fewer people are going to rush out to sign a mortgage.

Redfin has particularly egregious problems with debt. Its debt to equity ratio is worse than 99.25% of all of its peers. It’s a prime example of exactly what can go wrong when a company is overly reliant upon debt to finance its growth. It’s a simple story that has been borne out again and again over the last two years. Firms like Redfin and many others did well in the era of quantitative easing following the 2008 downturn. Now they’re facing the other side of that coin.

On the date of publication, Alex Sirois did not have (either directly or indirectly) any positions in the securities mentioned in this article. The opinions expressed in this article are those of the writer, subject to the InvestorPlace.com Publishing Guidelines.

Alex Sirois is a freelance contributor to InvestorPlace whose personal stock investing style is focused on long-term, buy-and-hold, wealth-building stock picks. Having worked in several industries from e-commerce to translation to education and utilizing his MBA from George Washington University, he brings a diverse set of skills through which he filters his writing.

More From InvestorPlace

• ChatGPT IPO Could Shock the World, Make This Move Before the Announcement
• Musk’s “Project Omega” May Be Set to Mint New Millionaires. Here’s How to Get In.

The post 3 Stocks to Sell for Shifting Interest Rate Expectations appeared first on InvestorPlace.

Aside from U.S. federal legalization progress, I’m skeptical of another rally in this sector. Yes, there’s plenty of growth to be had. And, I certainly think many cannabis stocks may warrant another look under future Democrat administrations. But with so much political risk baked into key sectors such as cannabis, investors are clearly positioning themselves in more defensive areas of the market. I think such a strategy makes sense.

So, for investors willing to put a small amount of speculative capital to work in the cannabis space, some companies are better than others. Let’s look at three of my top picks as potential speculative buys, for those with the inclination to dip into this sector.

Trulieve Cannabis Corp (TCNNF)

Trulieve Cannabis Corp. (OTCMKTS:TCNNF) is a rising star among the largest market capitalizations in this space. Notably, the company has been reshuffling its executive deck. Wes Getman was dubbed CFO at it produces Avenue and Modern Flower cannabis products and distributes them through dispensaries across multiple states.

Even though it’s now in overbought territory, Trulieve Cannabis Corp. has a strong outlook among bulls in this sector. The company’s glowing potential for long-term investment (thanks to better-than-expected earnings and positive cash flow) support this view. Plus, even with a teensy revenue decline, CEO Kim Rivers has the company’s long-term focus set. The company searches for market share growth in a probably lucrative space, if federal legalization arrives.

A big macro catalyst is likely going to be needed for TCNNF stock to see a big surge. But, it’s one I’ve got on the radar right now due to its strong current positioning.

Cresco Labs (CRLBF)

Cresco Labs (OTCMKTS:CRLBF) stands tall in the middle of the pack, in terms of U.S. cannabis producers. The company’s business model incorporates production, retail, and cultivation facilities in 10 states. Its vertically-integrated approach and 68 dispensaries support leaner operations, even though it’s going toe-to-toe with financial losses. Importantly, analysts predict better results, with a negative 13 cents EPS for the fiscal year 2024.

Additionally, Cresco Labs opened curtains to a THC-infused wing sauce, shaking hands with The Fifty/50 sports bar. It was sold at Chicagoland dispensaries for the Super Bowl. The product, made at Cresco’s Joliet facility, looked to normalize cannabis. 

Even with an automated production process for prerolls, vapes, and gummies, the team chose to handcraft this limited-time, specialty product. The demand exceeded their expectations, and it sold out in just 15 minutes. Thanks to the initial success, the company decided to make more for the Sunnyside dispensaries at $30 per jar.

Although Cresco is still losing money, its revenue recently decreased year over year (YOY). Still, analysts are looking at the bright side, giving it a $3.32 price target and a strong buy rating of 9 out of 13.

Cannabist Company Holdings Inc. (CBSTF)

On March 13, 2024, when the U.S. markets were still making their morning coffee, Cannabist Company Holdings Inc. (OTCMKTS:CBSTF) made their Q4 and full-year 2023 financial results known to the world. An 8:00 a.m EST conference call was held so the management could discuss the results.

CMSTF shook hands with Revelry Herb Co. so New Jersey, Massachusetts, and Pennsylvania could reap the benefits of pre-roll joints. This would mark Revelry’s East Coast debut, and could spell additional collaborations down the line of key lifestyle products like smell-proof backpacks.

Former Chief Commercial Officer Jesse Channon has been dubbed president of the company. Channon brings expertise in transformative technologies and digital marketing platforms in their hands. Thus, for investors betting on a company mixing up its C-Suite and focusing on long-term growth opportunities, this is a speculative stock that may be worth considering at current levels.

On the date of publication, Chris MacDonald did not have (either directly or indirectly) any positions in the securities mentioned in this article. The opinions expressed in this article are those of the writer, subject to the InvestorPlace.com Publishing Guidelines.

Chris MacDonald’s love for investing led him to pursue an MBA in Finance and take on a number of management roles in corporate finance and venture capital over the past 15 years. His experience as a financial analyst in the past, coupled with his fervor for finding undervalued growth opportunities, contribute to his conservative, long-term investing perspective.

More From InvestorPlace

• ChatGPT IPO Could Shock the World, Make This Move Before the Announcement
• Musk’s “Project Omega” May Be Set to Mint New Millionaires. Here’s How to Get In.

The post Cannabis Comeback: 3 Stocks to Snag After the Bubble Burst appeared first on InvestorPlace.

If you’re looking for blue-chip stocks to buy, here are the top seven you can buy now at a discount. All are solid long-term buy-and-hold stock picks that should do well with patience. Grab the opportunity while you can.

Intel (INTC)

One of the top blue-chip stocks to buy is Intel (NASDAQ:INTC), which just reported revenue of $15.4 billion, up 10% year over year. EPS came in at 54 cents. Better, Intel is expanding its semiconductor and foundry business which will pay off in the long term.

Intel is a well-known name in the industry which has had its fair share of troubles. However, it holds a strong market for data center chips, and this is where we can see the business turnaround. In addition, the growing demand for artificial intelligence products has been beneficial.

PayPal (PYPL)

Another strong company that dipped on results, PayPal Holdings (NASDAQ:PYPL) has suffered with analyst downgrades and a weak earnings outlook.

The company managed to beat expectations in its fourth quarter. It also posted a total payment volume of $1.5 trillion in 2023. Revenue was up 9% to hit $8 billion, as EPS jumped 19% year over year to $1.48 per share. However, despite the strong numbers, analysts are concerned about the company’s long-term growth, which led to a drop in the stock.

In addition, while management did provide a weaker-than-expected growth forecast, investors should keep in mind that PayPal is a massive business that already has an edge in the industry. This stock will bounce back in the coming months.

Coca-Cola (KO)

Coca-Cola (NYSE:KO) is worth holding on to for years to come. It enjoys a strong market position, is a dividend aristocrat, and enjoys high brand loyalty.

Most recently, Coca-Cola posted mixed earnings results. EPS came in at 49 cents, as revenue stood at $10.85 billion. Sales were up year over year, but it was mainly due to the higher prices in the U.S., Mexico, and Canada. I’m not too concerned, though. A dip in sales volume for one quarter doesn’t reflect its potential. Plus, if you enjoy passive income, KO is a good bet.

At the moment, KO yields 3.1% and should continue rewarding investors for years.

Pfizer (PFE)

Pfizer (NYSE:PFE) has been in a downward trend for the past six months and has lost 22% of its value. All thanks to declining revenue from its Covid-19 vaccine. However, I believe the correction is overdone.

There is so much more to Pfizer than the vaccine, and it has nine new molecular approvals by the FDA which has set the tone for 2024. It has a massive pipeline of drugs that are progressing in different phases, and the company is aiming for growth in the range of 3% to 5% for 2024.

It recently completed the acquisition of Seagen, which will help the oncology pipeline, and we will see it impact the revenue in the coming years. Trading at $27 today, the stock is down from the high of $42 and is worth buying. It also brings a dividend yield of 6.11% which is one of the best in the industry.

Starbucks (SBUX)

Starbucks (NASDAQ:SBUX) just reported a sales decline in its domestic and international markets.

EPS came in at 90 cents while revenue stood at $9.43 billion, which was lower than market expectations. There is a perception that Starbucks supports Palestinians in the Israel-Hamas war, and this has led to a boycott of the brand.

Its second largest market, China also saw a 9% drop in sales. The company had to revise the sales outlook and this led to a dip in stock. SBUX stock is trading at $93 today and is very close to the 52-week low of $89.

However, I believe the long-term picture still looks attractive.

PepsiCo (PEP)

PepsiCo (NASDAQ:PEP) missed analyst expectations, which left investors disappointed.

According to the company, a drop in revenue was due to the higher prices. Plus, consumers are looking for cheaper alternatives. However, the latest dip in the stock is a strong opportunity to buy. As consumer spending improves, Pepsi will regain its market, and we could see the stock soar.

This was a rare revenue miss and not something that could impact the company’s long-term outlook. It also enjoys a dividend yield of 3.01% and is one rock-solid stock to buy and hold.

Deere & Co. (DE)

One of the best blue-chip stocks to buy, Deere (NYSE:DE) is one of the best construction equipment manufacturers. Unfortunately, it’s been suffering from supply chain issues.

It still managed to deliver strong growth in 2023 and saw a 42% rise in net income in the year. Trading at $364, DE stock is down 13% in the past six months and is just a little over the 52-week low of $345.

The company has solid potential to expand and it could benefit from the Infrastructure Investments & Jobs Act. It has a dividend yield of 1.61% and has steadily increased its quarterly dividends. It recently announced a 9% hike to the dividend despite an anticipated decline in earnings in 2024.

DE might be down today, but the stock is a buy on dips.

On the date of publication, Vandita Jadeja did not hold (either directly or indirectly) any positions in the securities mentioned in this article. The opinions expressed in this article are those of the writer, subject to the InvestorPlace.com Publishing Guidelines.

Vandita Jadeja is a CPA and a freelance financial copywriter who loves to read and write about stocks. She believes in buying and holding for long term gains. Her knowledge of words and numbers helps her write clear stock analysis.

More From InvestorPlace

• The #1 AI Investment Might Be This Company You’ve Never Heard Of
• Musk’s “Project Omega” May Be Set to Mint New Millionaires. Here’s How to Get In.

The post 7 Blue-Chip Stocks to Pick Up While They’re Down appeared first on InvestorPlace.

That being said, humans are humans. We say one thing when we really mean another. In this context, speculative stocks represent a siren call. Allow me to use blunt language: it’s legalized gambling. Whether you live in San Francisco, California or Mobile, Alabama, you are freely able to wager on games of chance without fear of government agents busting through your front door.

Of course, you shouldn’t just gamble on speculative stocks on a whim. There are little “tricks” involved to possibly shift the odds in your favor. And you guessed it – we’re going to talk about that right now.

Hive Digital (HIVE)

For investors interested in cryptocurrencies but don’t want to deal with the sector’s administrative challenges – such as lost passwords or crypto exchanges suddenly failing – then Hive Digital (NASDAQ:HIVE) may be your next best alternative. As a blockchain miner, you receive some correlation to the price of the benchmark virtual currency. At the same time, you have fewer concerns tied to devastating oddities, (again) like losing your password.

Looking ahead, analysts rate HIVE stock a consensus moderate buy with a $6.25 average price target. That’s a lofty estimate which would send shares up over 40% if it holds true. Even better, Stifel Nicolaus anticipates that HIVE could be good for $9. If so, we’re talking about a nearly 102% return over the next 12 months.

What could catalyze such a robust move? Simple – the upcoming halving event for the benchmark crypto. To make a long story short, the reward for mining said digital asset should diminish, effectively slowing the growth of supply in the face of intense demand. If you believe in the concept of buy the rumor, sell the news, HIVE could be an excellent idea for speculative stocks.

Biomea Fusion (BMEA)

A biotechnology firm, Biomea Fusion (NASDAQ:BMEA) leverages drug design and operation expertise to create novel covalent small molecules to treat serious and life-threatening diseases. Notably, all of the company’s molecules are invented and created in house. As well, the molecules are highly selective, targeted medicines that address key mechanisms of disease progression.

Interestingly, a report published in the National Institutes of Health’s website states that small-molecule covalent inhibitors have offered practical mechanisms for targeting previously “undruggable” proteins. Therefore, it’s quite possible that Biomea’s innovations could hold the key to addressing some of the most vexing diseases.

To be fair, BMEA attracts plenty of bearish attention. In the options flow screener, Biomea has witnessed a significant volume of sold calls and bought puts. As well, it prints a short interest of 51.52% of its float, along with a short interest ratio of nearly 16 days to cover.

However, such intense pessimism could work against the bears. Conspicuously, analysts peg shares a unanimous strong buy with a $58.50 target, implying over 237% upside potential. If you love gambling, BMEA ranks among the top speculative stocks.

Trupanion (TRUP)

A pet insurance provider, Trupanion (NASDAQ:TRUP) offers and administers cat and dog insurance in the U.S., Canada, Australia and Puerto Rico. Per its public profile, the company offers insurance plans that cover hereditary and congenital conditions. Additionally, it provides unlimited annual caps, customizable deductibles and veterinary direct payments.

Fundamentally, the narrative for TRUP stock centers on one core fact: Americans love their furry friends. In 2022, the American Pet Products Association reported that total domestic pet industry expenditures hit $136.8 billion. And last year, the metric reached $143.6 billion. Still, pet-owning households faced significant challenges, being disproportionately impacted as I mentioned in my interview with CGTN America.

Therefore, anything to help protect and care for their animals while providing cost-structure flexibilities would be ideal. This dynamic could benefit TRUP stock. It’s also worth pointing out that Trupanion runs a high short interest of 38.46% of its float with a short interest ratio of 15.69 days to cover.

If TRUP moves against the bears, it could skyrocket due to a short-covering panic. Plus, TRUP features a consensus moderate buy view with a $41.50 average price target. It’s one of the enticing speculative stocks to consider.

On the date of publication, Josh Enomoto did not have (either directly or indirectly) any positions in the securities mentioned in this article. The opinions expressed in this article are those of the writer, subject to the InvestorPlace.com Publishing Guidelines.

A former senior business analyst for Sony Electronics, Josh Enomoto has helped broker major contracts with Fortune Global 500 companies. Over the past several years, he has delivered unique, critical insights for the investment markets, as well as various other industries including legal, construction management, and healthcare. Tweet him at @EnomotoMedia.

More From InvestorPlace

• The #1 AI Investment Might Be This Company You’ve Never Heard Of
• Musk’s “Project Omega” May Be Set to Mint New Millionaires. Here’s How to Get In.

The post 3 Speculative Stocks That Could Make Your February Unforgettable appeared first on InvestorPlace.

You’re going to expect me to lecture you on the virtues of virtual reality stocks to buy? I can do that if you’d like. Some market research firm says this target, another says that target. Who cares, honestly? We’re here because you want to get rich quick with equity market opportunities.

We’re going to do just that. Buckle up for a mind-blowing ride into virtual reality stocks to buy.

Meta Platforms (META)

News flash, neither Meta Platforms (NASDAQ:META) nor the other virtual reality stocks to buy on this list will get you rich if you peddle around with buying a few shares here and there. To make money, you need money – that’s just the bottom line. And if you’re a little short, that’s what options are for.

Specifically, I’m looking at the META Jan 17 ’25 40.00 Call. Even with the dramatic price increase on Thursday, the math looks compelling:

• The option was last priced at $440.99. Multiplied by 100 shares, that comes out to $44,099.
• With a $40 strike price, exercising the contract (multiplied by 100 shares) costs $4,000.
• Therefore, the contract total value (with exercising) is $48,099.

Here’s where things get really interesting. Currently, analysts project META stock to hit $528.54 over the next 12 months. Further, the high-side target lands at $575. Now, these targets presumably should materialize in February but let’s push it up a month.

If META hits the average analysts price, you’re looking at $52,854 (from the $528.54 target multiplied by 100 shares). So, your profit would be $4,755. At the highest target, it would be $9,401.

Microsoft (MSFT)

As a relevant but boring technology juggernaut, I typically don’t get too excited about Microsoft (NASDAQ:MSFT). However, I looked at the options market, did some math and I changed my mind. I’m extremely excited about MSFT as one of the virtual reality stocks to buy.

So, I’m looking at the MSFT Jan 17 ’25 200.00 Call. Yes, MSFT closed Thursday at $406.56 so we’re going to pay a ridiculous premium for this contract. But let’s walk through the math:

• The option was last priced at $213.68. Multiplied by 100 shares, that comes out to $21,368.
• With a $200 strike price, exercising the contract (multiplied by 100 shares) costs $20,000.
• Therefore, the contract total value is $41,368.

So, let’s get to the interesting part. Over the next 12 months, analysts project that on average, MSFT will reach $469.45. The high-side target calls for $600. And the lowest price target sits at a relatively high $440. Let’s assume these targets come true in January 2025 than in February.

If so, even at the lowest price, you would be profitable. At $440, your 100 shares would be worth $44,000. Subtract that from $41,368 and you have $2,632. Wow!

Advanced Micro Devices (AMD)

To be sure, the options contracts of the top two virtual reality stocks to buy are mighty expensive. I’m not going to sugarcoat this – so is Advanced Micro Devices (NASDAQ:AMD). However, the cost savings are tremendous.

Let’s again look at January of next year, specifically the AMD Jan 17 ’25 55.00 Call. Again, we’re deep in the money, which seems unnecessarily risky. We just need to do the math:

• The option was last priced at $124.78. Multiplied by 100 shares, that comes out to $12,478.
• With a $55 strike price, exercising the contract (multiplied by 100 shares) costs $5,500.
• Therefore, the contract total value is $17,978.

Okay, let’s bring out the analysts’ price targets! On average, Wall Street’s experts are calling for AMD stock to reach $194.94. Moreover, the high-side target lands at $270. So, with the leverage of 100 shares, your gross investment value ranges between $19,494 and $27,000.

Assuming the 12-month targets come true one month early, you’re looking at a profit of $1,516 if the average hits or $9,022 if the optimists win out.

On the date of publication, Josh Enomoto did not have (either directly or indirectly) any positions in the securities mentioned in this article. The opinions expressed in this article are those of the writer, subject to the InvestorPlace.com Publishing Guidelines.

A former senior business analyst for Sony Electronics, Josh Enomoto has helped broker major contracts with Fortune Global 500 companies. Over the past several years, he has delivered unique, critical insights for the investment markets, as well as various other industries including legal, construction management, and healthcare. Tweet him at @EnomotoMedia.

More From InvestorPlace

• ChatGPT IPO Could Shock the World, Make This Move Before the Announcement
• Musk’s “Project Omega” May Be Set to Mint New Millionaires. Here’s How to Get In.

The post Get Rich Quick With These 3 Virtual Reality Stocks to Buy Now appeared first on InvestorPlace.

Heading over to ChatGPT, I asked the digital intelligence platform to provide me with cybersecurity stocks that have “serious upside potential,” mentioning the 10X target. Given the limitations for AI stock predictions, I wasn’t caught off guard with its suggestions. If anything, I was a bit bored.

Nevertheless, I simply wanted an answer to my inquiry without attempting to shake it down until I heard something I wanted to hear; otherwise, what would be the point? With that in mind, let’s explore AI’s top choices for cybersecurity stocks with serious upside potential.

CrowdStrike (CRWD)

According to ChatGPT, CrowdStrike (NASDAQ:CRWD) is a leading provider of cloud-native endpoint security solutions. Further, its platform offers advanced threat protection, endpoint detection and response (EDR), and threat intelligence services to enterprises and organizations worldwide. Due to the rising frequency and sophistication of cyberattacks, CrowdStrike’s innovative approach could position CRWD stock for long-term growth.

Pressing the intelligent chatbot for more information, it stated that CrowdStrike enjoys a strong growth trajectory. Since its inception, it has consistently posted strong financial metrics and has expanded its market share. Looking at the numbers myself, it’s definitely onto something. Right now, CrowdStrike prints a 43.5% three-year revenue growth rate. That’s much better than most other cybersecurity stocks.

Now, the challenge that clouds CRWD is that while analysts rate shares a consensus strong buy, the average price target sits at $300.42. From the time of writing, the estimate implies a loss of more than 9%. That’s not surprising given the 90.2X forward earnings multiple.

However, the high-side price target lands at $375, implying over 13% upside. If by 10X returns you meant 1.10X, CRWD is your investment. Still, as a long-term idea, it’s not bad for AI stock predictions.

Zscaler (ZS)

I don’t fault ChatGPT for this idea one bit because how it could possibly know? But I wouldn’t necessarily shower Zscaler (NASDAQ:ZS) as a 10X opportunity. Why? Since the beginning of the year, ZS already gained over 19% of market value. In the past 52 weeks, it’s up over 90% or nearly double. That’s not a great recipe for buying low and selling high.

Still, ChatGPT remarks that it could be one of the top cybersecurity stocks due to its cloud security mechanisms. Per the chatbot, the company’s platform features a zero-trust security architecture. Via Zscaler’s website, zero trust represents a protocol that no entity should be trusted by default. Such a standard should prevent the weakest link from imposing vulnerabilities on the entire chain.

Looking at this particular context, the narrative becomes clear. With more businesses adopting cloud-based technologies, it’s vital to shore up any vulnerabilities. As well, remote work protocols could represent a nightmare for organizational security.

Analysts rate shares a strong buy. However, the average price target sits at $244.27, implying almost 4% downside from where I am. In fairness, though, the high-side target is $311, implying 23% upside. Again, that’s decent for AI stock predictions.

Palo Alto Networks (PANW)

To be quite blunt, I was nervous that ChatGPT would select Palo Alto Networks (NASDAQ:PANW). It wasn’t to the level of Milli Vanilli winning a Grammy or anything like that. Still, PANW stock carries the same disadvantage that Zscaler does, just worse. On a year-to-date basis, Palo Alto shares gained just under 27%. In the trailing year, the enterprise returned shareholders over 113%.

So, can the fire keep burning? It’s unfair to put this on ChatGPT. However, from a longer-term framework, Palo Alto’s comprehensive suite of cybersecurity solutions – including firewall, cloud security, endpoint protection and threat intelligence services – should help spark gradual upside interest. Let’s face it, nefarious actors won’t ever stop their activities. The only way cyberthreats cease is if the internet fails altogether. We don’t want that.

In that sense, PANW and the other top-tier ideas are permanently relevant cybersecurity stocks. As you might imagine, analysts also rate shares a strong buy. However, the average price target of $356.63 basically calls for 3% downside risk. However, the most optimistic target aims for $450, which would be about 23% up.

On the date of publication, Josh Enomoto did not have (either directly or indirectly) any positions in the securities mentioned in this article. The opinions expressed in this article are those of the writer, subject to the InvestorPlace.com Publishing Guidelines.

A former senior business analyst for Sony Electronics, Josh Enomoto has helped broker major contracts with Fortune Global 500 companies. Over the past several years, he has delivered unique, critical insights for the investment markets, as well as various other industries including legal, construction management, and healthcare. Tweet him at @EnomotoMedia.

More From InvestorPlace

• ChatGPT IPO Could Shock the World, Make This Move Before the Announcement
• Musk’s “Project Omega” May Be Set to Mint New Millionaires. Here’s How to Get In.

The post ChatGPT Stock Predictions: 3 Cybersecurity Companies the AI Bot Thinks Have 10X Potential appeared first on InvestorPlace.

By definition, cash cows are ventures or operations that provide steady, reliable income or other benefits with minimal maintenance or oversight, according to U.S. News & World Report. Naturally, they’re best deployed during periods of market uncertainty. That said, the advantage is that cash cows are essentially permanently relevant.

No, they probably won’t get you rich overnight. We’re dealing with the full-sized SUVs of the equities space. They’re utilitarian and can ride over potholes like no one’s business. But winning the Indianapolis 500 isn’t on its list of stated objectives.

Instead, they offer much-needed confidence in a market environment that suffered a recent February chill. So, instill some confidence in your portfolio with these resilient cash-cow stocks.

AbbVie (ABBV)

As a healthcare giant – specifically in the pharmaceutical space – AbbVie (NYSE:ABBV) presents an intuitive case for cash-cow stocks. Fundamentally, I appreciate ABBV stock for the underlying company’s Allergan acquisition. With that move, AbbVie now controls Botox, the anti-wrinkle treatment. With today’s society so focused on aesthetics, Botox enjoys (arguably) a much bigger market than many analysts project.

Of course, that’s a much longer-term narrative. In the contemporary framework, ABBV stock offers value relative to its free cash flow (FCF). Currently, its enterprise-value-to-FCF ratio sits at 14.37X, favorably lower than the sector median 21.5X. Operationally, AbbVie prints three-year revenue growth of 13.4%, outpacing almost 73% of its rivals. Not surprisingly given its broad reach, the company enjoys robust margins and consistent annual profitability.

As for passive income, AbbVie sports a forward dividend yield of 3.36%. Even better, it features 52 years of consecutive payout increases thanks to the legacy of being a component of Abbott Laboratories (NYSE:ABT) prior to the 2012 spinoff. Thus, ABBV stands among the top cash-cow stocks to buy.

Qualcomm (QCOM)

No stranger to the wider technology umbrella, Qualcomm (NASDAQ:QCOM) bats clean up in terms of wireless solutions. Its connectivity-focused semiconductors and related services represent key components of the 5G rollout. If you’re talking on it – and it cost a lot of money – chances are, Qualcomm had a role in its development.

Reputationally speaking, the broader tech sphere tends to be characterized by high risk for the possibility of high reward. However, in Qualcomm’s case, we’re dealing with a market capitalization of $174 billion. The company is here for the long haul, which makes its forward earnings multiple of 16.37X quite compelling. As well, QCOM trades for only 17.5X FCF.

That’s no powder puff statistic either. Qualcomm enjoys consistently strong FCF, with the its fiscal year ended September coming in at $9.85 billion.

On the passive income side, the tech juggernaut offers a forward yield of just over 2%. While not the most generous print, the payout ratio sits at 29.36%, implying confidence in yield sustainability. Thus, it’s one of the cash-cow stocks to put on your radar.

CVS Health (CVS)

Another top-tier healthcare play, CVS Health (NYSE:CVS) encapsulates both high risk and high reward. Regarding the former category, stakeholders of CVS stock have been frustrated with the underperformance. For one thing, the equity is off to a rough start in the new year. Over the past 52 weeks, the company lost 13% of market value. Additionally, it faces competition in the retail pharmacy space.

The good news? That competition that has dogged CVS in recent years is finding out that pharmacy industry disruption is more difficult than it looks. Just consider the case of Amazon (NASDAQ:AMZN). A beacon of sheer convenience for consumers and a pain for rivals, the e-commerce giant recently stated that it will eliminate a “few hundred roles” across its One Medical and Amazon Pharmacy units.

Plus, with the fallout, CVS stock appears awfully enticing. For example, it only trades at 9.15X forward earnings. And the company is only priced at 0.56X FCF. Despite the not-so-favorable press that CVS occasionally receives, it consistently delivers strong cash flow, posting $10.4 billion FCF in 2023.

Finally, the company offers a forward yield of 3.47% and features a strong buy analyst consensus. For speculators, it’s one of the cash-cow stocks to buy.

On the date of publication, Josh Enomoto did not have (either directly or indirectly) any positions in the securities mentioned in this article. The opinions expressed in this article are those of the writer, subject to the InvestorPlace.com Publishing Guidelines.

A former senior business analyst for Sony Electronics, Josh Enomoto has helped broker major contracts with Fortune Global 500 companies. Over the past several years, he has delivered unique, critical insights for the investment markets, as well as various other industries including legal, construction management, and healthcare. Tweet him at @EnomotoMedia.

More From InvestorPlace

• ChatGPT IPO Could Shock the World, Make This Move Before the Announcement
• Musk’s “Project Omega” May Be Set to Mint New Millionaires. Here’s How to Get In.

The post 3 Cash Cows to Boost Your Confidence During the February Chill appeared first on InvestorPlace.

First, the hydrocarbon sector would get a new lease on life, at least from the investment point of view. To be blunt, hydrocarbons have always been relevant thanks to their high energy density. However, with the political and ideological push toward green and renewable solutions, fossil fuels took a backseat. Well, the tables will turn if the jobs market continues printing robust numbers.

Second, certain sectors have already cynically enjoyed supply demand fluctuations. For example, the uranium market has been hit with significant supply woes after being in a glut for many years. And with global population rates only rising, seemingly every source of energy is in high demand.

With that, investors should target these energy stocks to buy now.

HF Sinclair (DINO)

If you look at the financial print for downstream hydrocarbon specialist HF Sinclair (NYSE:DINO), the framework doesn’t seem to make much sense. At least, it doesn’t make much sense to me. Currently, DINO trades at a trailing-year earnings multiple of 5.08X, lower than the sector median 9.67X. It also trades at 0.34X trailing-year sales, below 77.4% of sector rivals.

Here’s the thing: HF Sinclair is no slouch. Operationally, the company prints a three-year revenue growth rate of 21.8%, beating out almost 72% of its competitors. Regarding EBITDA growth during the same period, it printed 29.3%. That’s better than over 66% of its peers. Nevertheless, HF Sinclair represents one of the more undervalued energy stocks to buy despite commanding everyday relevance.

I’m not sure this bargain is going to last. Basically, more companies are requiring their employees to return to the office. And if push comes to shove, the employers will almost always win this battle. Analysts rate DINO a moderate buy and that’s really no surprise. The high-side target also lands at $76, making DINO an intriguing idea for energy stocks to buy.

Occidental Petroleum (OXY)

Focused on hydrocarbon exploration, Occidental Petroleum (NYSE:OXY) plies its trade in the upstream component of the energy value chain. Here, unlike HF Sinclair, you’re not getting that great of a deal. For example, OXY trades at 12.61X trailing-year earnings. In contrast, the sector median is 9.67X, so Occidental runs a bit hot. However, the company’s shareholders enjoy a major confidence boost: insider buying.

And it’s not just the insider acquisitions but who’s doing the buying. Warren Buffett via his conglomerate Berkshire Hathaway (NYSE:BRK-B) has been buying up OXY stock against conventional wisdom. Also, data from TipRanks reveals that hedge funds have been busy building a position in Occidental shares since the fourth quarter of 2021.

Even better, Occidental’s narrative should really come alive thanks to the current geopolitical environment. With so much of the world’s hydrocarbons coming from jurisdictionally questionable areas, building more secure supply chains would naturally be ideal.

Analysts peg shares a consensus moderate buy with a $68.42 price target. Also, the high-side target lands at a hearty $80. Thus, it makes for a solid candidate for energy stocks to buy.

Exxon Mobil (XOM)

One of the largest integrated fuels, lubricants and chemical companies in the world, Exxon Mobil (NYSE:XOM) deserves a place in your portfolio. Sure, big oil might seem increasingly irrelevant amid the broader push for electric vehicles. However, with EVs being stranded due to extreme winter weather conditions, it’s quite likely that people are rethinking the pivot.

Moreover, EVs haven’t achieved the economies of scale so that they’re on par with their combustion-powered equivalents. With the economy still recovering from the intense pressure of high inflation and high borrowing costs, many households simply aren’t in the mood for acquiring big-ticket items. As a result, big oil stocks potentially enjoy a significant upside pathway.

To be fair, its earnings multiple of 11.34X is a bit worse than average. However, the company enjoys significant operational strengths, particularly its three-year EBITDA growth rate of 62.4%. Aside from the extraordinary Covid-era hiccup, it’s consistently profitable.

Analysts see good things ahead, rating shares a consensus moderate buy with a $125.75 price target. For relative peace of mind, XOM ranks among the top energy stocks to buy.

NextEra Energy (NEE)

When the topic shifts to renewable energy stocks to buy, it’s tough to not mention NextEra Energy (NYSE:NEE). Per its website, NexEra ranks among the nation’s largest capital investors in renewable infrastructure. Looking ahead, management plans for between $85 billion to $95 billion in U.S.-based infrastructure projects through 2025. Also, it ranks number one on Fortune’s 2023 World’s Most Admired Companies List in the electric and gas utilities industry.

Stated differently, it knows how to do environmental, social, and governance (ESG) directives right. Further, NEE stock should benefit from an expanding arena. According to Mordor Intelligence, the U.S. renewable energy market size reached an estimated capacity of 434.54 gigawatts (GW) in 2024. Analysts project that by 2029, the ecosystem could rise to 700.15 GW.

To be fair, NEE stock encountered significant volatility last year. However, it’s trying to make a comeback. In Q4 2023, NextEra beat Wall Street’s estimates for per-share profitability and revenue. Analysts view shares as a moderate buy. Looking over the next 12 months, they anticipate an average price target of $69.60.

Devon Energy (DVN)

A leading independent energy company, Devon Energy (NYSE:DVN) focuses on finding and producing oil and natural gas. With the economic engine turning and people eagerly entering the workforce, the case for higher crude oil demand appears obvious. However, over the long run, natural gas demand should rise as well. It’s the same math – more people consuming resources should decrease supply and increase prices.

Additionally, Devon may benefit from a geopolitical catalyst. When Russia – a major exporter of natural gas – brazenly invaded Ukraine, it sent shockwaves everywhere. Initially, nations fretted about balancing moral principles versus acquiring necessary commodities. However, a strong dollar and slowed economy activity took the sting off what should have been blistering hot energy prices.

Still, Russia continues to be, well, Russia and may not let up until it’s forced to let up. Who knows when that will be? So, the underperformance of DVN stock could be temporary.

Analysts rate shares a consensus moderate buy with a $54.87 price target. With this robust estimate, DVN is one of the best energy stocks to buy at on discount.

Cameco (CCJ)

Ever since the Fukushima meltdown, the nuclear power industry largely struggled for momentum. Indeed, it was until late 2020 to early 2021 that sector players like Cameco (NYSE:CCJ) found their footing. Looking back in hindsight, the deflated value of the underlying uranium commodity may have been overkill. As stated earlier, global population trends are only rising. That means folks on average are consuming more resources, not less.

Cynically, this dynamic plays into Cameco’s hands. As the world’s largest publicly traded uranium company, it plays a vital role in global production. Yes, the uranium shortage crisis in Kazakhstan imposed a shockwave to the sector. But the reality is that nuclear facilities are built with uranium in mind. They can’t just switch to an alternative material like thorium on a whim.

On the other side of the argument, CCJ doesn’t make a great case for undervalued energy stocks to buy. However, meeting rising energy needs should keep Cameco relevant. Just as well, analysts remain optimistic, pegging shares a strong buy with a $54.31 price target.

NuScale Power (SMR)

Right off the bat, I’m personally speculating on NuScale Power (NYSE:SMR) so take what I say with a grain of salt. I also mention the caveat because SMR ranks among the riskiest energy stocks to buy. If you’ve followed its price chart, you know that it’s liable for some big swings in either direction. Like a cryptocurrency, it’s hard to predict the day to day.

On the flipside, SMR stock has been looking very attractive since hitting (what I hope is) a bottom on Jan. 18. Fundamentally, NuScale’s business of small modular reactors is extraordinarily compelling. In a way, NuScale may help “decentralize” power through building smaller, more flexible facilities across the country. In addition, the company deploys advanced systems to protect against catastrophic failures.

One approach that it uses is called a passive safety system. Basically, it’s a system that clamps down on safety issues even if other active safety systems fail. So, you potentially get the best of both worlds – efficient nuclear power with advanced protections in place. Analysts rate shares a moderate buy with a sky-high $6.13 price target.

On the date of publication, Josh Enomoto held a LONG position in SMR. The opinions expressed in this article are those of the writer, subject to the InvestorPlace.com Publishing Guidelines.

A former senior business analyst for Sony Electronics, Josh Enomoto has helped broker major contracts with Fortune Global 500 companies. Over the past several years, he has delivered unique, critical insights for the investment markets, as well as various other industries including legal, construction management, and healthcare. Tweet him at @EnomotoMedia.

More From InvestorPlace

• The #1 AI Investment Might Be This Company You’ve Never Heard Of
• Musk’s “Project Omega” May Be Set to Mint New Millionaires. Here’s How to Get In.

The post 7 Energy Stocks to Buy as the Economy Rockets Higher appeared first on InvestorPlace.

Powered by the shift to cloud computing, fintech businesses have grown exponentially over the years, offering exciting opportunities for investors. Signs are pointing toward an imminent rate cut and a market rally. So, now may be an opportune time to strategically load up on hidden gem fintech stocks for extraordinary gains.

Furthermore, the fintech stocks sector had a valuation of $257.26 billion in 2022. That represents a disruptive force, reshaping traditional banking and monetary transactions. Projections are exhilarating, forecasting a surge to $882.3 billion by 2030. This ambitious trajectory, boasting a robust compound annual growth rate (CAGR) of 17% from 2023 to 2030, sets the stage for an electrifying future.

Amidst this thrilling narrative, let’s explore three under-the-radar fintech stocks that offer solid upside potential ahead.

Ayden (ADYEY)

Amidst the post-pandemic upheaval, Adyen (OTCMKTS:ADYEY) has steered a resilient course. It has charted its way through soaring inflation and interest rates. Following a setback late last summer triggered by a deceleration in sales growth, Adyen has impressively doubled from its lows, with a notable 23.76% surge this year.

Moreover, the second-half figures in 2023 reveal a robust performance. This underscores Adyen’s prowess in the digital payment processing sector. Processed volume soared to €544.1 billion, a stellar 29% year-over-year (YOY) increase, with point-of-sale volumes reaching €92.9 billion, a noteworthy 37% YOY surge. This operational strength translated into an impressive uptick of 23% YOY in net revenue, totaling €887.0 million. Meanwhile, EBITDA reflected a solid 14% annual growth, reaching €423.0 million, with an EBITDA margin settling at an admirable 48%.

Hence, ADYEY stock stands as a beacon of market confidence in its robust growth potential, making it an enticing investment choice.

Shift4 Payments (FOUR)

Shift4 Payments (NYSE:FOUR) presents an intriguing investment case despite a trailing P/E ratio exceeding 45 times.

The real allure lies in the anticipated 107% earnings growth this year. This may potentially reduce the company’s forward multiple to an attractive 23 times. This possibility for substantial growth positions the company as an enticing prospect for savvy investors

Amid the challenges of the 2021 post-pandemic landscape, FOUR emerged as a standout among fintechs. Shift4Payments is propelled by its strategic exposure to e-commerce and the hospitality industries, which thrived during pandemic-induced lockdowns. Despite economic uncertainties later in the year, the company exhibited resilience and maintained its growth trajectory.

Adding to the optimism, recent takeover speculation has sparked intrigue around Shift4 Payments. While Global Payments (NYSE:GPN) denied acquisition talks, rumors on December 14^th suggested otherwise. Whether or not a takeover materializes, the speculation underscores FOUR’s potential value to a strategic acquirer, further contributing to the company’s lucrative sentiment.

Nu Holdings (NU)

Nu Holdings (NYSE:NU) has solidified its position as a standout player in the fintech sector, with a 107% gain over the past year. In the third-quarter of 2023, Nu Holdings expanded its customer base by a robust 27% YOY, reaching a substantial 89.1 million customers. Transitioning to financial performance, the monthly ARPAC hitting $10 and a 53% YOY revenue upswing to $2.1 billion underline Nu’s robust performance.

Moreover, Nu distinguishes itself through its exceptional efficiency, as evidenced by its low-cost structure. It boasts a cost-per-active customer at an all-time low of 90 cents and an efficiency ratio of 35%. This positions NU stock as one of the most efficient companies in Latin America.

Additionally, Nu Holdings impresses with a $356 million adjusted net income and a significant 25% annualized return on equity. Therefore, NU is a compelling choice for investors seeking a potent blend of financial strength and growth.

On the date of publication, Muslim Farooque did not have (either directly or indirectly) any positions in the securities mentioned in this article. The opinions expressed in this article are those of the writer, subject to the InvestorPlace.com Publishing Guidelines.

Muslim Farooque is a keen investor and an optimist at heart. A life-long gamer and tech enthusiast, he has a particular affinity for analyzing technology stocks. Muslim holds a bachelor’s of science degree in applied accounting from Oxford Brookes University.

More From InvestorPlace

• ChatGPT IPO Could Shock the World, Make This Move Before the Announcement
• Musk’s “Project Omega” May Be Set to Mint New Millionaires. Here’s How to Get In.

The post 3 Under-the-Radar Fintech Stocks Ready to Make a Move appeared first on InvestorPlace.

The precise definition of blue-chip stocks can be subjective, though. However, blue-chip companies can offer general stability through consistent, steady performance without witnessing dramatic fluctuations in their share prices. They are overall better candidates to buy and hold for the long haul.

This makes blue-chip stocks ideal for investment strategies seeking to balance portfolios and mitigate volatility. It may be more pertinent to buy and hold now. This is especially true as the Federal Reserve (Fed) estimates a 61% recession probability within the next 12 months.

Whether looking to diversify a portfolio, strive for stability, or simply have the appetite to avoid turbulence in light of the upcoming national elections, the following three blue-chip stocks represent an opportunity for steady returns in the long haul. They are well-suited as long-term blue-chip stocks to buy and hold:

APPLE (AAPL)

The world’s most profitable company, Apple (NASDAQ:AAPL), enjoys a history of sustained growth and expectations for continued expansion going forward. Don’t just take our word for it. This was said by renowned investor Warren Buffett. It should be noted that he did modestly downsize his stake in the company recently.

While shares retreated somewhat on disappointing sales from the Chinese market, Apple’s strong brand and financial position imply further potential. Nonetheless, Apple’s sales in China rebounded to more than $70 billion in 2021 and 2022 following covid. Accounting for around 20% of AAPL’s sales, China will remain critical for the company’s revenue and success.

At a price-to-earnings (P/E) ratio of 28.6x, below the technology sector average of 31.6 times. The company boasts a market cap of 2.8 trillion and has beaten all analysts’ quarterly EPS expectations in 2023. Apple also offers a marginal dividend yield of 0.52%.

Anheuser-Busch InBev  (BUD)

Brewers are known for resisting economic downturns. This makes AB InBev (NYSE:BUD) an exciting choice for investors looking for long-term blue-chip stocks to buy and hold. As the largest in the United States and globally, AB InBev benefits from global consumer demand in the context of investment hedge even during economic turbulence.

The company involved themselves in a marketing controversy last year through its flagship Bud Light but has since normalized, leaving an opportunity for further shareholder gains. However, potential March strikes may put the stock in a better position to consider buying should BUD fail to negotiate contract terms with Teamsters successfully.

At a P/E ratio of 20.3x, below the industry average of 25.5 times, AB InBev also offers a forward dividend of 1.3%. Like AAPL, the company has also beaten all quarterly analysts’ EPS estimates in 2023.

Johnson & Johnson (JNJ)

Johnson & Johnson (NYSE:JNJ) is widely recognized as a leading global healthcare company. Having recently spun off its consumer products division in 2023 into Kenvue (NYSE:KVUE) in a deal involving $36 billion, JNJ can now focus its efforts on the healthcare sector.

Specifically, it can channel its expertise and resources into medical devices, diagnostics, and pharmaceutical research and development. Moreover, JNJ’s product pipeline contains more than 90 additional drug candidates currently progressing through clinical trials.

In addition to numerous well-known medications, JNJ’s diversification and financial strength support its 30x P/E ratio. The company also offers shareholders a healthy dividend yield of 3.1%, representing another opportunity for a long-term blue-chip stock to buy and hold.​

On the date of publication, Stavros Tousios did not have (either directly or indirectly) any positions in the securities mentioned in this article. The opinions expressed in this article are those of the writer, subject to the InvestorPlace.com Publishing Guidelines.

Stavros Tousios, MBA, is the founder and chief analyst at Markets Untold. With expertise in FX, macros, equity analysis, and investment advisory, Stavros delivers investors strategic guidance and valuable insights.

More From InvestorPlace

• ChatGPT IPO Could Shock the World, Make This Move Before the Announcement
• Musk’s “Project Omega” May Be Set to Mint New Millionaires. Here’s How to Get In.

The post Steady Eddies: 3 Blue-Chip Stocks to Buy for the Long Haul appeared first on InvestorPlace.

There is good reason to believe ACHR stock could achieve vertical liftoff after the readout. With several new, positive developments in its cap, the market may handsomely reward the eVTOL leader.

An ACHR Stock Outlook

Archer continues advancing its progress towards commercialization but also has plans for broader capabilities. Last quarter it received a $1 million payment from the U.S. Air Force as it delivered a simulation aircraft for testing. It was the first installment of what is a $142 million contract and we should get an update on the Defense Dept.’s progress with the craft.

Last month the eVTOL maker announced the National Aeronautics & Space Administration developed a keen interest in Archer’s lithium-ion battery cell technology. Because the batteries in the aircraft are like those used in electric vehicles, Archer has no room for error.

We have all seen video of EVs catching on fire because of battery failure. Archer can’t allow battery failure in the air. The collaboration with NASA will study the safety of Archer’s technology and success will validate eVTOL air travel as a safe and viable option.

Federal Aviation Administration certification is the real key to Archer’s success. There are several hurdles all eVTOL developers must jump through before gaining the FAA’s stamp of approval for launching a commercial operation.

Archer announced last week it is building three Midnight aircraft that conform to the oversight agency’s for-credit piloted flight tests. The first plane will be completed within the next few weeks and will enter the FAA’s testing phase later this year.

Commercialization Coming

The combination of developments are pushing Archer Aviation closer to its goal of launching a commercial operation next year. We should hear just how far the eVTOL stock is to realizing that potential on Feb. 26.

The stakes are high because this is a massive opportunity. Archer is one of the leading players creating an industry out of nothing. Adjacent industries are watching closely. They are also investing in Archer.

United Airlines (NASDAQ:UAL) partnered with the eVTOL maker as it wants to use the aircraft to transport passengers from Newark Liberty International Airport to Manhattan in 10 minutes rather than the 90 minute trip it could take by car.

Automaker Stellantis (NYSE:STLA) is helping Archer build out a manufacturing complex in the United Arab Emirates. 

The Middle East is shaping up to be a hotbed of activity for electric vehicles. Government-sponsored investment pools are backing both four-wheeled EVs as well as ones in the air. The UAE invested over $3 billion into Chinese EV maker Nio (NYSE:NIO) while Saudi Arabia is betting on Lucid Motors (NASDAQ:LCID).

The UAE says as soon as Archer gets FAA flight approval it will simultaneously approve its business launch there.

Clock Is Ticking

The end of the month promises to be an exciting time for Archer Aviation. Although the ACHR stock outlook suggest it remains an investment only for risk-tolerant investors it has every chance to succeed. Investing guru Cathie Wood believes the eVTOL stock is ready for takeoff. She has been buying handfuls of ACHR stock and owns 22.7 million shares.

The company has worked years to develop the technical know-how to advance the airborne urban mobility business to reality.

Now with well-financed backers pushing it across the finish line and government agencies taking an interest in the technology, Archer Aviation is a business ready to take flight. It just might start at the end of February.

On the date of publication, Rich Duprey did not hold (either directly or indirectly) any positions in the securities mentioned in this article. The opinions expressed in this article are those of the writer, subject to the InvestorPlace.com Publishing Guidelines.

Rich Duprey has written about stocks and investing for the past 20 years. His articles have appeared on Nasdaq.com, The Motley Fool, and Yahoo! Finance, and he has been referenced by U.S. and international publications, including MarketWatch, Financial Times, Forbes, Fast Company, USA Today, Milwaukee Journal Sentinel, Cheddar News, The Boston Globe, L’Express, and numerous other news outlets.

More From InvestorPlace

• The #1 AI Investment Might Be This Company You’ve Never Heard Of
• Musk’s “Project Omega” May Be Set to Mint New Millionaires. Here’s How to Get In.

The post Dear ACHR Stock Fans, Mark Your Calendar for Feb. 26 and Prepare for Liftoff! appeared first on InvestorPlace.

If legalization increases and federal regulators loosen restrictions on cannabis companies, getting an early position could prove incredibly lucrative. Though marijuana production may not be the most technologically innovative sector, its legalization could create several stable growth stocks. That’s because cannabis stocks mimic the behavior of companies that specialize in consumable products, such as beverages and alcohol. 

This means that the best cannabis stocks to buy are those prepared for rapid growth if given the green light.  As such, here are three companies that collectively offer entry into a potentially emerging industry.

Tilray Brands (TLRY)

Also known for its ventures in the alcoholic beverage industry, Tilray Brands (NASDAQ:TLRY) offers investors an affordable entry into the world of cannabis stocks. The critical strength of Tilray is its extensive diversification in medical and recreational cannabis, alongside distilling and brewing brands. 

This diversity allows investors an option to invest in a company that stands to profit significantly from marijuana legalization. It also helps minimize some of the risk should there be delays or political changes around the nature of marijuana. Examples of Tilray’s focused diversification include its acquisition of Colorado-based Breckenridge Distillery. By acquiring a respected distillery where recreational cannabis is legal, Tilray can focus on continuing to develop cannabis-infused drinks. 

These strategic crossovers and products localized within the same jurisdiction provide stability and innovation for Tilray’s future expansion. Thanks to these innovative acquisitions, Tilray has earned a moderate buy rating among analysts.

Verano Holdings (VRNOF)

Vertically integrating nearly every aspect of its production, Verano Holdings (OTCMKTS:VRNOF) has created one of the most agile offerings in the cannabis industry. Focused on producing high-quality agricultural results. Verano has successfully expanded its operations across 13 U.S. states with 14 production facilities. 

A widespread approach has forced Verano to consistently stay on top of the ever-changing nature of marijuana laws on the state and federal levels. It has also allowed the company to minimize costs and tailor production needs to the specific local trends of its areas. Honing in this business model also means Verano stands poised for further expansion into future states that legalize cannabis. 

Verano also saw a healthy growth in sales in 2023, from $227 million in Q1 to $238 million in Q4. By outperforming the industry average and continuously focusing on efficient expansion, VRNOF stands among the best cannabis stocks to buy.

Green Thumb Industries (GTBIF)

Green Thumb Industries (OTCMKTS:GTBIF) has become one of the largest multi-state cannabis operators in the United States. Boasting over 80 retail locations across 15 states, the company has invested significant resources into uniform quality across its dispensaries. Additionally, it operates 18 production facilities and holds enough additional licenses to double its current distribution operations.

Unique among cannabis companies, GTBIF has consistently turned a profit since 2020. This has helped Green Thumb showcase a stable business model in an uncertain legal landscape. Through ongoing revenue expansion and financial health, the company seems ready for substantial long-term growth should laws continue to change in favor of cannabis.

Though exclusively traded on over-the-counter (OTC) markets in the U.S., GTBIF could be listed on major U.S. stock exchanges if federal restrictions on cannabis are lifted. Due to this stored potential for rapid growth, Green Thumb offers one of the best cannabis stocks to buy.

On the date of publication, Viktor Zarev did not have (either directly or indirectly) any positions in the securities mentioned in this article. The opinions expressed in this article are those of the writer, subject to the InvestorPlace.com Publishing Guidelines.

Viktor Zarev is a scientist, researcher, and writer specializing in explaining the complex world of technology stocks through dedication to accuracy and understanding.

More From InvestorPlace

• The #1 AI Investment Might Be This Company You’ve Never Heard Of
• Musk’s “Project Omega” May Be Set to Mint New Millionaires. Here’s How to Get In.

The post The 3 Best Cannabis Stocks to Buy in February 2024 appeared first on InvestorPlace.

Among these, firms that have demonstrated consistent revenue growth, strategic partnerships, and expansion into new markets are particularly noteworthy. Additionally, government policies and incentives aimed at boosting renewable energy adoption have played a significant role in creating this list of solar stocks to buy.

So here are seven solar stocks that investors should keep on their watchlists for an unforgettable 2024.

SunPower (SPWR)

SunPower (NASDAQ:SPWR) is an American company focused on household solar power devices in the U.S. and Canada. 

I feel that now could be an ideal time for investors to pick up shares of SPWR stock. The company announced a GAAP revenue of $432 million and a net loss of $32 million for the quarter. Despite facing lower-than-expected consumer demand and delayed revenue recognition, SPWR managed to add 18,800 customers during this period. 

However, there were some more positives revealed in SPWR’s earnings call. 

SunPower reported a substantial backlog for retrofit installations, with over 18,100 customers awaiting service. The company also highlighted robust sales of its SunVault energy storage systems, with particularly high adoption rates in California. 

With a price-to-sales ratio of just 0.4 times sales, SPWR is an undervalued pick, and remains as one of those solar stocks to buy.

Atlantica Sustainable Infrastructure (AY)

Atlantica Sustainable Infrastructure (NASDAQ:AY) is a global energy company that has a portfolio that includes renewable energy, natural gas, electric transmission, and water assets.

The company remained in a reported solid financial position last quarter, with revenues and EBITDA remaining stable at $858.6 million and $627.3 million, respectively. The company highlighted a year-over-year (YOY) growth in cash available for distribution by 2.9% (or 0.6% on a comparable basis), reaching $184.2 million in the first nine months of 2023.

Furthermore, the company has successfully signed two Power Purchase Agreements (PPAs) in California, expecting higher returns than initially projected.

Analysts have a positive outlook on Atlantica, with a “Buy” consensus and a 12-month stock price forecast that suggests a 33.53% increase from the latest price.

Nextracker (NXT)

Nextracker (NASDAQ:NXT) offers integrated solar tracker and software solutions to enhance energy harvest from solar power systems. 

The company reported significant growth in its financial results for the third quarter of fiscal year 2024, showcasing strong performance and forward momentum in the solar energy sector. The company achieved a revenue of $710 million, marking a 38% increase YOY. Its GAAP net income stood at $128 million, with diluted earnings per share (EPS) at 87 cents. 

Looking ahead, the company raised its fiscal 2024 guidance. The company now forecasts adjusted EBITDA to be between $475 million and $500 million, up from the previous range of $390 million to $440 million. Adjusted diluted EPS is expected to be between $2.55 and $2.75, marking an increase from the earlier projection of $1.95 to $2.15.

Thus, I think investing in NXT could be accretive for investors as the company is forecasted to grow earnings by 28.26% per year.

Canadian Solar (CSIQ)

Canadian Solar (NASDAQ:CSIQ) deals with the manufacturing of solar PV modules and the provision of solar energy solutions.

Like the other solar companies on this list, I feel that CSIQ could be a good pick for investors.

The brand recently reported Q3 2023 results with a 39% YOY increase in solar module shipments to 8.3 GW. Net revenues reached $1.85 billion with a 16.7% gross margin and net income attributable to Canadian Solar shareholders of $22 million, or 32 cents per diluted share.

The company also provided Q4 2023 guidance with expected solar module shipments between 7.6 GW to 8.1 GW and e-STORAGE shipments between 1.4 GWh to 1.5 GWh. 

Analysts believe that the stock’s valuation could rise 44.60% within the next twelve months.

Altus Power (AMPS)

Altus Power (NYSE:AMPS) develops and operates solar generation, energy storage, and electric vehicle charging infrastructure across the U.S.

AMPS is also coming off a strong quarter. The brand reported third-quarter 2023 revenues of $45.1 million, a 48% increase from the same quarter in 2022, with a GAAP net income of $6.8 million, marking a significant improvement from the previous year.

The company reaffirmed its 2023 adjusted EBITDA guidance of $97-103 million, indicating a strong growth trajectory. Additionally, Altus Power is advancing the completion of approximately 75 MW of new assets. 

Several analysts have rated AMPs as a “Buy” or “Strong buy” over the last few months. Most recently, Christopher Souther from B. Riley Securities gave it a “Strong buy” rating and a price target of $10, representing a 37.55% upside.

Shoals Technologies (SHLS)

Shoals Technologies (NASDAQ:SHLS) produces electrical balance of system solutions for solar energy projects. There’s also some good news for this company. A large backlog and high demand for the company’s offerings suggest that orders placed in 2024 may not be fulfilled until 2025 or 2026.

Furthermore, SHLS reported net income projections of $46 million for 2023 and $122 million for 2024. The company’s valuation metrics, including EV sales and P/E ratios, indicate a transition towards higher profitability and efficiency in the coming year.

Recent analyst recommendations for SHLS include an upgrade by Barclays to “Equalweight” with a price target cut to $15 from $17, while Morgan Stanley maintained an “Equalweight” rating but reduced its price target to $17 from $21.

The company is 55.58% undervalued from its current stock price, according to analyst consensus targets.

Sunrun (RUN)

Sunrun (NASDAQ:RUN) is a provider of residential solar, battery storage, and energy services in the U.S.

In 2023, Sunrun reported a 20% growth in customer additions in the second quarter, with total customers reaching 869,464, including 724,784 subscribers. The company installed 296.6 MW of solar energy capacity and 102.6 MWh of storage capacity during the same period. 

Additionally, the company expects to continue benefiting from potentially decreasing interest rates, which could make its solar products more competitive against rising utility prices. This advantage should bolster product sales.

Sunrun’s “clean energy as a subscription” business model and leadership position in the U.S. residential solar market have analysts feeling optimistic about the stock. It has a rating of “Buy” as well as a price target of 53.24%.

On the date of publication, Matthew Farley did not have (either directly or indirectly) any positions in the securities mentioned in this article. The opinions expressed are those of the writer, subject to the InvestorPlace.com Publishing Guidelines.

Matthew started writing coverage of the financial markets during the crypto boom of 2017 and was also a team member of several fintech startups. He then started writing about Australian and U.S. equities for various publications. His work has appeared in MarketBeat, FXStreet, Cryptoslate, Seeking Alpha, and the New Scientist magazine, among others.

More From InvestorPlace

• ChatGPT IPO Could Shock the World, Make This Move Before the Announcement
• Musk’s “Project Omega” May Be Set to Mint New Millionaires. Here’s How to Get In.

The post 7 Solar Stocks That Could Make Your February Unforgettable appeared first on InvestorPlace.

With scarcity in home listings and prices on the rise, homeowners have been tapping into home equity to boost property values through renovations. Moreover, with interest rate cuts on the horizon, the sector could be in for a growth spurt this year, with Home Depot (NYSE:HD) leading the pack. As the top home improvement retailer in the U.S., Home Depot offers a comprehensive suite of products and services for construction, renovation and upkeep. Inspired by Home Depot’s success, other home improvement entities have staked claims in the market, establishing strong footholds.

Moreover, the home improvement industry’s expansion is remarkable, with the global market reaching a valuation of $830 billion and U.S. retail sales hitting $426 billion. This booming growth signals a bright future and underscores the significant investment opportunity within this sector. That being said, let’s dive into three exceptional home improvement stocks poised for promising returns, highlighting their unique offerings and strategic positions.

Arhaus (ARHS)

Arhaus (NASDAQ:ARHS), the Ohio-based premium home furnishings brand, has seen its share price climb 11.91% year-to-date and 17.45% in the last month. The brand’s momentum comes with its spring 2024 collection release, featuring new upholstery, accent chairs and updates to favorite collections. Arhaus also introduced a novel bedding collection crafted in Portugal, India and Italy to complement various home styles.

Moreover, Arhaus has inaugurated a 16,000-square-foot storefront in Newport Beach, California. This expansion underscores the brand’s growth strategy and positions California as a key market with the highest number of Arhaus outlets outside its Ohio and Florida strongholds. The move reflects a calculated effort to tap into burgeoning markets.

Financially, Arhaus reported a commendable revenue increase to $326.23 million, up 1.94% year-over-year (YOY), surpassing forecasts by $8.32 million. Additionally its EPS also outperformed estimates by two cents, reaching 14 cents. Hence, with these solid financials, TipRanks analysts have assigned a ‘strong buy’ rating on Arhaus, highlighting a promising 2.36% upside potential.

Lovesac (LOVE)

Lovesac (NASDAQ:LOVE), a pioneer in the home furnishings sector, is sculpting a new era of comfort with its innovative sectional offerings. This ingenuity has propelled the company’s share price by 4.55% over the last six months. Adding a dash of snazziness to its strategy, Lovesac’s collaboration with KidSuper for Fall/Winter 2024 fuses vibrant street style with upscale home comforts, marking a significant leap in creative and marketing endeavors.

Financially, Lovesac reported a remarkable 14.3% YOY net sales increase to $154 million, surpassing analyst predictions. The financial dance gets even more impressive with its earnings outperformance, where a mere two-cent loss per share sharply beat the 24-cent estimates.

Simultaneously, TipRanks analysts are bullish, bestowing Lovesac with a ‘strong buy’ rating and forecasting an upside potential of 57%. This optimism is anchored in Lovesac’s balanced omnichannel strategy, which cleverly integrates direct-to-consumer sales with an expanding network of showrooms.

Sherwin-Williams (SHW)

Sherwin-Williams (NYSE:SHW) is charting a colorful course in the paints, coatings and floorcoverings industry. With a significant 35.57% share price increase over the past year, the company unveiled cutting-edge technologies at FABTECH 2023 to enhance service efficiency and customer satisfaction. These advancements ensure rapid, easy and reliable support, underlining Sherwin-Williams’ dedication to improving businesses of all sizes.

Moreover, the ‘Anthology: Volume 1’ Colormix Forecast for 2024 by Sherwin-Williams introduces an inspiring array of 48 hues designed to craft diverse atmospheres. These palettes range from deeps and darks, setting the stage for tranquil retreats, to delicate tints that weave serene sophistication.

Financially, Sherwin-Williams paints a successful picture, reporting $5.25 billion in revenue, a slight increase of 0.41% YOY, and beating expectations by $26.7 million. Earnings-per-share reached $1.81, exceeding forecasts. With TipRanks analysts rating SHW as a ‘moderate buy’ and projecting a 4.94% upside potential, Sherwin-Williams is making a stronghold in the industry.

On the date of publication, Muslim Farooque did not have (either directly or indirectly) any positions in the securities mentioned in this article. The opinions expressed in this article are those of the writer, subject to the InvestorPlace.com Publishing Guidelines

Muslim Farooque is a keen investor and an optimist at heart. A life-long gamer and tech enthusiast, he has a particular affinity for analyzing technology stocks. Muslim holds a bachelor’s of science degree in applied accounting from Oxford Brookes University.

More From InvestorPlace

• The #1 AI Investment Might Be This Company You’ve Never Heard Of
• Musk’s “Project Omega” May Be Set to Mint New Millionaires. Here’s How to Get In.

The post The Next Home Depot? 3 Home Improvement Stocks That Investors Shouldn’t Ignore appeared first on InvestorPlace.

The future is uncertain for the depth and impact that artificial intelligence may have. But, certain companies are well-positioned to capitalize on their AI stocks. These firms develop core AI technologies and machine learning algorithms. Then, businesses apply AI in innovative ways across industries like healthcare, finance, and automotive. 

So, for investors looking to get rich quickly, let’s explore three AI stocks to buy now. The valuations of these companies could change quickly due to their small market caps, so investors should take action swiftly.

Pegasystems (PEGA)

Pegasystems (NASDAQ:PEGA) provides customer engagement and business process management. Despite some of the problems surrounding the stock, PEGA could be an excellent buy due to facing macroeconomic and structural problems for the company.

The business is guiding for a full-year average contract value growth of 12% at the midpoint. This approach comes amidst broader economic concerns and an internal restructuring that included a 4% reduction in headcount.

However, PEGA reported seeing significant revenue exceeding expectations due to outperformance in its subscription license segment. Also, tor 2024, the company’s guidance on revenue, EPS, and free cash flow has surpassed analysts’ expectations.

Underlining the bull case is that eight Wall Street analysts have given Pegasystems a moderate buy rating, with a consensus price target of $56.

Recursion Pharmaceuticals (RXRX)

Recursion Pharmaceuticals (NASDAQ:RXRX) specializes in drug discovery with its AI and machine learning algorithms.

This year could be huge for RXRX because there are two major data readouts expected in the second half of the year. These include results from the phase 2 SYCAMORE trial for REC-994 and the phase 2/3 POPLAR study for REC-2282. These studies target cerebral cavernous malformation and Neurofibromatosis Type 2 (NF2), respectively, in areas with no approved drugs.

While RXRX stock has had a negative free cash flow of $276 million over the past twelve months, the company reported a strong cash position with cash and cash equivalents totaling $389.5 million. This financial stability is increased by strategic partnerships, notably a $50 million investment from Nvidia (NASDAQ:NVDA).

There are several analyst price targets for the stock averaging $16.8, which implies a potential increase of 35.16% from the current price.

SoundHound AI (SOUN)

SoundHound AI (NASDAQ:SOUN) offers advanced voice recognition and natural language understanding capabilities.

Last year, the company announced targeted restructuring measures aimed at accelerating its path to profitability. This included an increased focus on its SaaS product, SoundHound for Restaurants. Also, the business reported a strong Q4 revenue, up 84% year over year (YOY).

For this year, SOUN plans to capitalize on a $160 billion total addressable market across its core industries. The company’s strategic focus includes enhancing its product offerings and leveraging its extensive blue-chip client roster, particularly in the automotive industry.

Analysts rate SOUN as a strong buy, with a 17.02% predicted upside for its stock price. Furthermore, analysts like Scott Buck from HC Wainwright & Co. are even more bullish, giving it a price target of $5, which is an upside of 32.98%. Further, forecasted revenue for next year is 72.24 million, with a predicted increase for its EPS.

Therefore, in light of these recent financial results and projections, SOUN is one of those AI stocks to buy.

On the date of publication, Matthew Farley did not have (either directly or indirectly) any positions in the securities mentioned in this article. The opinions expressed are those of the writer, subject to the InvestorPlace.com Publishing Guidelines.

Matthew started writing coverage of the financial markets during the crypto boom of 2017 and was also a team member of several fintech startups. He then started writing about Australian and U.S. equities for various publications. His work has appeared in MarketBeat, FXStreet, Cryptoslate, Seeking Alpha, and the New Scientist magazine, among others.

More From InvestorPlace

• ChatGPT IPO Could Shock the World, Make This Move Before the Announcement
• Musk’s “Project Omega” May Be Set to Mint New Millionaires. Here’s How to Get In.

The post Get Rich Quick With These 3 AI Stocks to Buy Now appeared first on InvestorPlace.

But that’s about to change.

I’m talking about the “iPhone for AI.“

When it launches, it will revolutionize everything. And those of us savvy enough to be in AI stocks will see our wealth propelled to unprecedented levels.

Consider the internet boom that began in the 1990s. It was not until Steve Jobs and Apple (AAPL) introduced the iPhone in the summer of 2007 that internet stocks truly began to surge. Major internet companies such as Amazon (AMZN), Netflix (NFLX), and Nvidia (NVDA) experienced relatively flat trading throughout most of the 2000s. However, following the launch of the iPhone, their stocks began to climb and have continued their ascent ever since.

New technologies by themselves are cool. But new technologies need new devices to truly change the world.

By that logic, AI won’t change the world until a new AI hardware device emerges to help consumers and businesses truly tap into, leverage, and use the power of AI.

Forget computers. Forget smartphones. Forget smart watches, tablets, and smart glasses. We need the next generation of all that stuff – a hardware device purpose-built for the Age of AI.

That device hasn’t launched yet.

But it will.

I think as soon as the next few months.

And it all comes back to the company that started this whole AI Boom in the first place: OpenAI.

The Door Is Open(AI)

OpenAI is the world’s most important AI startup. It created ChatGPT, the chatbot that ignited the AI craze in late 2022. Since then, its ambitious CEO, Sam Altman — who I believe is this generation’s Steve Jobs — has been actively laying the groundwork for his company to dominate the AI industry and potentially the entire global economy.

Altman has been reportedly looking to raise trillions of dollars to overhaul the global chip market (more on that this weekend). And he has also launched a brand-new custom AI GPT Store – which many liken to Apple’s App Store – wherein anyone can build their own custom AI chatbot on top of ChatGPT’s technology.

There are also rumors that he and his company have stumbled across a powerful AI algorithm breakthrough — internally dubbed Q* — that reports suggest is eerily close to Artificial General Intelligence, or superintelligence. We could see that next-level AI in the real-world once ChatGPT 5 launches later this year.

And, perhaps above all else, Altman is reportedly trying to create the “iPhone for AI”.

He has teamed up with legendary former Apple designer Jony Ive – who designed the original iPhone – and Apple’s most recent iPhone design chief, Tang Tan, to create a smartphone purpose-built for the Age of AI.

They are also reportedly in talks to raise $1 billion for the venture from the world’s largest tech investor, SoftBank.

This is a Silicon Valley super team – the world’s most important tech startup, the world’s most legendary tech designer, and the world’s largest tech investor.

This super team is dead set on creating the next iPhone.  

What will it look like?

No one really knows yet. We have some clues. Altman is a major investor in another AI startup called Humane. OpenAI is also their main partner. Humane just launched an AI pin that incorporates a personal AI assistant into a wearable pin.

Will OpenAI build on the Humane AI pin? My guess is “yes.” My guess is also that whatever OpenAI ends up building with Jony Ive and Softbank will be absolutely incredible.

After all, great people make great products. And there is no greater collection of AI talent in the world right now than the super team working on this “iPhone for AI.”

The big takeaway, of course, is that the iPhone for AI is coming… possibly this year.

And when it does arrive, it will change the world.

It will replace your smartphone. It will be your personal AI assistant. And it will ignite a furious rally in AI stocks.

You think AI stocks are red-hot right now? Just wait until this “iPhone for AI” launches. That’s when the party will really get started.

The Final Word

We’re already prepping for this breakthrough.

This past week, we unveiled a brand-new portfolio of the best stocks to buy to prep for the AI Endgame — that’s what we’re calling this because it feels like it could be the culmination of the AI Revolution.

If you’re an Early Stage Investor subscriber, go to your subscriber site to access these picks now.

If you’re not, then trust me… these are the companies you need to hear about, and the stocks you need to buy, right now.

The AI Revolution is not just a technological leap; it’s a massive economic wave that could transform your portfolio. Don’t miss out on the opportunity to be part of the select few who ride the crest of this wave to prosperity.

So be the smartest person in the next room you enter – Click here to unlock the stocks poised to soar in the AI Endgame.

On the date of publication, Luke Lango did not have (either directly or indirectly) any positions in the securities mentioned in this article.

P.S. You can stay up to speed with Luke’s latest market analysis by reading our Daily Notes! Check out the latest issue on your Innovation Investor or Early Stage Investor subscriber site.

More From InvestorPlace

• ChatGPT IPO Could Shock the World, Make This Move Before the Announcement
• Musk’s “Project Omega” May Be Set to Mint New Millionaires. Here’s How to Get In.

The post Revolutionary ‘iPhone for AI’ Could Ignite a Furious Rally in AI Stocks appeared first on InvestorPlace.

The first one is a data analytics powerhouse. Its steady revenue growth and edgy AI solutions have made waves. The second one is a stalwart in the semiconductor industry. That defies market trends with its consistent performance and strategic diversification. Meanwhile, with its robust advertising platform, the third one passes through adversities with adaptability.

Overall, these three stocks represent more than just tickers. They hold the fundamental lead and the potential for exponential returns. Read more to uncover opportunities and the promise of a brighter return. The article explores the growth potential of the trio and discovers why they are stocks to buy.

Palantir (PLTR)

Palantir (NYSE:PLTR) delivers solid topline growth and overall performance. For instance, in Q4 2023, the company hit a revenue of $608 million. That represented a 20% year-over-year (YoY) boost and a 9% sequential growth. The growth was constant throughout the year, with 2023 revenue hitting $2.2 billion. That solid 17% YoY increase demonstrates Palantir’s capability to generate revenue and maintain constant growth.

Additionally, Palantir’s Analytical Integration Platform (AIP) and bootcamps have played a vital role in driving growth, particularly in the U.S. commercial segment. Based on the momentum of AIP adoption, the company had a 70% YoY growth in its Q4 revenue. Bootcamps are intensive workshops targeted at suggesting the capabilities of AIP. They are sharp at compressing sales cycles and accelerating new client acquisitions.

Furthermore, Palantir breached $1 billion in commercial revenue over the last 12 months. That is a milestone in its growth. The company’s customer count grew 35% YoY, demonstrating a broadening client base and increasing target market penetration. The expansion in the client base reflects Palantir’s capability to capture demand from a diverse range of organizations and industries. Hence, this further solidifies its position as a leading data analytics provider and AI solutions.

Lastly, adopting AIP has accelerated sales cycles and boosted client acquisitions in the U.S. commercial segment. Palantir had a 22% sequential increase in new client acquisitions for U.S. commercials in Q4. Thus, the intensive workshops enable clients to experience firsthand the value proposition of Palantir’s portfolio, leading to faster conversions to enterprise deals.

Photronics (PLAB)

Over the past six years, Photronics (NASDAQ:PLAB) has attained a compound annual topline growth rate of over 12%. That constant growth rate highlights the company’s ability to capitalize on market demand sharply. Despite a flat photomask market and contraction in the semiconductor industry, phenolics have consistently edged out industry trends.

In 2023, the company achieved 8% YoY topline growth, while the semiconductor industry was expected to contract by up to 12%. That capability to outperform the market is based on Photronics’ competitive edge.

Furthermore, Photronics has diversified its topline by expanding into diverse segments, including flat-panel displays (FPD) and its core semiconductor portfolio. That diversification strategy supports the company in mitigating risks associated with fluctuations in specific segments.

At the bottom line, Photronics attained an operating margin of 28.5% for Q4 and 28.4% for 2023, representing the best year in the history of the company. That solid margin performance suggests Photronics’ operational edge in managing costs. Also, the company benefits from stable pricing through long-term purchase agreements. Hence, this stability in pricing breeds and preserves profitability in a fluctuating market.

At its core, Photronics has tech leadership in the FPD market, particularly in low-temperature polysilicon, active-matrix organic light-emitting diode (AMOLED), and G10.5 large-area masks. There is a strong demand for Photronics’ AMOLED display mask.

Looking forward, Photronics plans to invest $140 million in capital expenditures (CapEx) primarily to match current and anticipated demand growth, especially in high-end and mainstream IC production. Overall, this investment in capacity expansion positions the company to capitalize on emerging demand.

Perion (PERI)

Perion (NASDAQ:PERI) has delivered a solid topline growth trend with a clear upward edge over the past three years. In Q3 2023, Perion reported a 17% YoY increase in revenue, hitting $185.3 million. Given the challenging macroeconomic conditions, this growth rate is noteworthy, suggesting Perion’s sharp business strategies despite external pressures. The constant topline growth over the past three years suggests the company can adapt and thrive in a diverse market.

Additionally, Perion has diversified revenue streams. That supports the company in mitigating the risks associated with dependence on a single source. Display advertising, which accounts for 54% of total revenue, experienced a 14% YoY increase. Notably, Perion has strategically expanded its display advertising moat by incorporating new components such as connected TV (CTV) and retail media.

The company’s target is to become a comprehensive advertising platform. Notably, its diversification strategy has bolstered topline growth and solidified Perion’s position as a one-stop shop for advertisers.

Moreover, Perion’s performance delivers profitability and operational edgy. In Q3, adjusted EBITDA was boosted by 29% YoY to $42.7 million, with an adjusted EBITDA margin hitting 23% in Q3 2023. This margin improvement reflects Perion’s focus on enhancing the product mix and optimizing media bank utilization.

Finally, the adjusted EBITDA contribution, excluding the traffic acquisition costs ratio, was boosted to 55%. That suggests edgy cost management and resource allocation. Therefore, Perion’s capability to maintain solid profitability between evolving market shifts indicates its solid operational discipline.

As of this writing, Yiannis Zourmpanos held a long position in PLTR. The opinions expressed in this article are those of the writer, subject to the InvestorPlace.com Publishing Guidelines.

Yiannis Zourmpanos is the founder of Yiazou Capital Research, a stock-market research platform designed to elevate the due diligence process through in-depth business analysis.

More From InvestorPlace

• ChatGPT IPO Could Shock the World, Make This Move Before the Announcement
• Musk’s “Project Omega” May Be Set to Mint New Millionaires. Here’s How to Get In.

The post Financial Freedom: 3 Stocks That Could Turn $10,000 into $100,000 appeared first on InvestorPlace.

Southern Copper (NYSE:SCCO) just announced it was slashing its payout 20%. The dividend is going from $1.00 per share to 80 cents per share. Although it had been rising over the past few years, the dividend could fluctuate from quarter to quarter. Because commodity stocks can be volatile, the payout was not sustainable in this case.

The miner produced earnings of $3.32 per share last year but paid out $4.00 per share in dividends. A more meaningful comparison shows SCCO stock generated only $3.32 per share in free cash flow (FCF). Thus, paying out more than you earn is a prescription for problems.

But the copper miner’s investors are not alone in facing dividend cuts. Let’s examine three more companies that could slash their payout.

Hasbro (HAS)

The dividend at Hasbro (NASDAQ:HAS) survived another quarter.

The toymaker announced its shareholders would receive 70 cents per share. That is the same amount they have received each quarter for the past two years. However, it might be difficult to maintain that rate in the future, despite management reiterating support for the payout.

Hasbro sales fell 23% in the all-important fourth quarter, which includes the Christmas holiday season. Also, it recorded operating losses of $1.2 billion. So, the continued downturn is forcing the company to take an axe to costs. In December, it announced it was firing 900 employees and took aggressive actions to reduce inventory levels. Now, management believes that puts the business in a better position to support the dividend.

Although Hasbro is paying down debt, it still has $3 billion on the ledger sheet. In contrast, it owns just $545 million in cash and equivalents. The company is only generating around $1.75 per share in FCF but paying out $2.80 per share in dividends. Even analysts aren’t sure Hasbro can maintain the payout.

On the earnings conference call it was noted rival Mattel (NASDAQ:MAT) was unable to engineer a turnaround until it freed up cash by cutting its dividend. Hasbro management simply maintains the actions it has taken will be enough to support the payout. Investors might not want to put much faith in that.

Innovative Industrial Properties (IIPR)

Medical marijuana real estate investment trust (REIT) Innovative Industrial Properties (NYSE:IIPR) has proved more resilient than many expected. It underscores why I felt it was an unstoppable stock to buy back in November. Shares are up 14% since then, in line with the S&P 500.

As a REIT, though, it is required to pay out most of its profits as distributions to shareholders. Although it has raised the dividend consistently since going public in 2016, growing it at a 42% annual rate, it won’t be able to maintain that rate. In fact, the December payment of $1.82 per share was a mere 1% increase over the prior rate. With inflation running over 3%, it means investors are receiving less in dividends than they previously were.

Also, it points to difficulties the broader marijuana industry faces with oversupply and regulatory hurdles. With a dividend yield of 8% outstripping the yield of adjusted funds from operations (AFFO) it may be difficult to support the payout at current rates. So, Innovative Industrial Properties is still a good business to own, just don’t buy it for its dividend.

Best Buy (BBY)

Consumer electronics retailer Best Buy (NYSE:BBY) faces many of the same issues as the other two companies on the list. The dividend is a burden that is becoming increasingly difficult to support at existing levels and may be cut to help free up cash.

Best Buy sales and profits are falling. With the housing market in turmoil, the retailer is pressured on important segment sales including appliances, which account for 14% of revenue. Appliance revenue was down 15% in the third quarter.

Also, when it reports full-year earnings later this month, they’ll likely be down again even if they beat Wall Street estimates. Yet, the retailer keeps increasing its dividend. Over the past five years, the payout is up an average 15% a year while over the last 10 years its 18% higher. With FCF rapidly evaporating, supporting such high rates of growth becomes more difficult.

Additionally, it’s only going to get harder going forward. Best Buy closed 24 stores in the first nine months of 2023 and 100 over the past five years. Further, the retailer anticipates closing 15 to 20 stores a year for the foreseeable future. With fewer stores come lower sales and that may make paying for a dividend yielding 5% a year difficult. The stock is up 20% from recent lows, but that doesn’t make it a buy for its dividend.

On the date of publication, Rich Duprey did not hold (either directly or indirectly) any positions in the securities mentioned in this article. The opinions expressed in this article are those of the writer, subject to the InvestorPlace.com Publishing Guidelines.

Rich Duprey has written about stocks and investing for the past 20 years. His articles have appeared on Nasdaq.com, The Motley Fool, and Yahoo! Finance, and he has been referenced by U.S. and international publications, including MarketWatch, Financial Times, Forbes, Fast Company, USA Today, Milwaukee Journal Sentinel, Cheddar News, The Boston Globe, L’Express, and numerous other news outlets.

More From InvestorPlace

• The #1 AI Investment Might Be This Company You’ve Never Heard Of
• Musk’s “Project Omega” May Be Set to Mint New Millionaires. Here’s How to Get In.

The post Dividend Cuts: 3 Stocks at Risk of Slashing Payouts Like Southern Copper appeared first on InvestorPlace.

Hello, Reader.

There is an old Japanese saying that goes, “There are many paths to the top of Mount Fuji.”  

The expression ends with the heartfelt message that love is, ultimately, the summit of the mountain; but I like to focus on the path to the top – because the first half of the saying also applies to investing.

You see, there are many paths to the mountain summit of profits, through many different trends, many different sectors, and many different plays.

Today, I want to spotlight the path of lithium stocks.

Now, lithium is unique – and valuable – because it is the lightest metal on earth. Since it is the lightest material that can store energy, it has become indispensable for the batteries that power the new digital economy.

We need it for all the devices, gadgets, and sensors in our homes, businesses, and pockets… for the electric vehicles that are the fastest-growing segment of the transportation sector… and for large-scale battery farms to capture the power we get from solar and wind farms.   

The lithium market has been Wall Street calls a “falling knife” that will harm any investor who attempts to catch it.

However, the market could soon become a “coiled spring…”

Not Lackluster for Long

The decision to invest in the lithium industry begins with one compelling data point: Global battery cell demand for lithium will soar nearly seven-fold by 2030, according to McKinsey Battery Insights.

If this eye-popping growth projection comes to fruition, battery demand for lithium would account for a whopping 95% of total global demand, and it would become a $400-billion industry.

But despite this powerful demand trend, an excess supply is swamping demand at the moment, which is causing lithium prices to plummet.

Accordingly, lithium-focused stocks have been performing miserably, as you can see in the chart below.

However, these trying times in the lithium market will not last forever.

A Boom Is Coming

Lithium, like most other commodities, subjects investors to extreme boom-bust cycles. As the current over-supply shifts toward under-supply during the next two years, the bust will end… and a new boom will begin.

And that tipping point may be even closer than dismal lithium price trend suggests.

When lithium makes a valiant comeback (and then some!) in the next few years, you’ll want to make sure that you’re already invested in the boom.

So, keep a close eye on your inbox.

Something big is coming soon, and while I can’t share any details yet, you’re going to want to be first in line to learn about it.

Stay tuned — I’ll tell you more on Tuesday.

Regards,

Eric Fry

More From InvestorPlace

• The #1 AI Investment Might Be This Company You’ve Never Heard Of
• Musk’s “Project Omega” May Be Set to Mint New Millionaires. Here’s How to Get In.

The post A New Boom in Lithium is Coming appeared first on InvestorPlace.

The trouble for investors who’ve yet to join the cryptocurrency club is whether their FOMO (fear of missing out) is warranted or merely an irrational thought. 

Helping move things along for the world’s leading cryptocurrency are the 10+ bitcoin ETFs launched in mid-January. The first month of trading for these ETFs saw inflows of approximately $125 million… a day. 

As Coindesk points out, all these new bitcoin ETFs brought in more than $11 billion, offset partly by a $6 billion outflow from the Grayscale Bitcoin Trust (NYSEARCA:GBTC).  As of Feb. 15, the iShares Bitcoin Trust (NASDAQ:IBIT) has managed to gather more than $5.6 billion in net assets.

The general consensus is that once institutional money management jumps into the bitcoin ETF fray, demand will be good, but not spectacular. Once the major wealth management platforms join in,   

“As firms begin covering the name, putting portfolio strategists to work determining allocations for different investor bases, the inflows are likely to exceed any ETF product before it,” Coindesk reported comments from Matt Sheffield, senior vice president of trading at FalconX, a large institutional digital assets broker.  

With this step in the crypto journey yet to fully materialize and the general outlook for Bitcoin reasonably healthy, now would be a good time to buy if you’re bullish about the cryptocurrency’s future trajectory. 

Here’s why. 

The Dreaded Bitcoin Price Outlook

I’d be a liar if I said I knew the Bitcoin price in a year. I can’t even predict the 12-month price target for a company with reliable earnings. Predicting the future price of Bitcoin has always been a mug’s game, and yet so many do it. 

USA Today covered the subject in late January. Numbers thrown out ranged from $70,000 to $148,000. However, some of the estimates extend beyond 2024. The authors were quick to point out that investors were wise to consider whether Bitcoin was a wise long-term investment for them rather than the near-term price in the next 12 months. 

This is a smart recommendation, given that Bitcoin has no real purpose other than as a store of value. But I digress. 

CNBC did a nice little roundup at the end of 2023. Their expert sources provided predictions varying from $60,000 to $500,000. It seems like a sure thing to make money on in 2024. 

I like veteran portfolio manager Mark Mobius’ comments about his $60,000 prediction. 

“‘No rationale for that prediction,’ Mobius said, except that a bitcoin ETF looks likely and ‘that has heightened interest’ in the cryptocurrency,” CNBC reported. 

He’s 100% right. There is no fundamental reason for BTC to hit $60,000 by Dec. 31, other than the added interest caused by the new ETFs. When you think about it, with a finite supply and a halving in April, investors are rearranging the deck chairs, artificially pushing up demand. 

Moving to the high-end of predictions, the venture capital firm CoinFund predicts BTC will hit somewhere between $250,000 and $500,000 in 2024.  

“Bitcoin has a strong inverse correlation with the dollar and real yields, and both are now going down,” Seth Ginns, managing partner at CoinFund, told CNBC via email.

While you have to question the realistic nature of the prediction — Bitcoin has never traded over $65,000 in its history — at least Ginns provided a rational explanation why it might move higher over the next 10 months. 

While price predictions are all over the map, there is no question that three things play into the eventual winner: the growth of bitcoin ETF net assets, the April halving, and lower interest rates. If all three of those positively impact demand, its November 2021 all-time high could be tested before New Year’s.  

The Bottom Line

I’ve always disliked the idea of a Bitcoin outlook racket for cryptocurrencies. It’s so random given the lack of fundamental research available. The reverse of that, however, is that bitcoin and bitcoin mining very much resembles gold and gold mining, and you don’t hear much skepticism in the investment community these days around gold price predictions. It’s become standard fare. 

Warren Buffett once said that if you added up all the gold in the world, it would amount to a cube 67 feet on a side. You’d have it in your backyard and all you could do with it is stare at it. Absolutely no utility.  

And we know what the late Vice Chairman, Charlie Munger, thought about Bitcoin.  

“I don’t welcome a currency that’s so useful to kidnappers and extortionists and so forth. Nor do I like shuffling out a few extra billions and billions of dollars to somebody who just invented a new financial product out of thin air,” Benzinga reported Munger’s past comments after his passing in November.  

Two of the smartest men to walk the planet took issue with Bitcoin. If you’re going to focus your attention on price predictions, you probably shouldn’t own the cryptocurrency. 

Having said that, the tea leaves point to a strong year for bitcoin in 2024.

On the date of publication, Will Ashworth did not have (either directly or indirectly) any positions in the securities mentioned in this article. The opinions expressed in this article are those of the writer, subject to the InvestorPlace.com Publishing Guidelines.

Will Ashworth has written about investments full-time since 2008. Publications where he’s appeared include InvestorPlace, The Motley Fool Canada, Investopedia, Kiplinger, and several others in both the U.S. and Canada. He particularly enjoys creating model portfolios that stand the test of time. He lives in Halifax, Nova Scotia.

More From InvestorPlace

• ChatGPT IPO Could Shock the World, Make This Move Before the Announcement
• Musk’s “Project Omega” May Be Set to Mint New Millionaires. Here’s How to Get In.

The post Bitcoin Price Prediction: Tea Leaves Suggest BTC Could Zoom Past $65K in 2024 appeared first on InvestorPlace.

This has left some investors worried about a potential bubble. There are definitely some significantly overvalued Nasdaq stocks out there. However, there are still quite a few good buys within the Nasdaq today. These three Nasdaq stocks to buy, in particular, offer good entry points right now.

Bruker (BRKR)

Bruker (NASDAQ:BRKR) is an interesting life sciences company. The firm is most known for its niche lab equipment, such as nuclear magnetic resonance (NMR) spectroscopy machines. Bruker has operated in these fields for decades and has a dominant market position for several of its key product lines.

Bruker saw a slowdown in sales over the last couple of years as various academic institutions and biotech firms reined in spending amid the pandemic and inflationary conditions. However, things are now normalizing, and Bruker announced excellent earnings results earlier this week.

Additionally, Bruker has another intriguing element. It has its Bruker Energy & Supercon Technologies “BEST” division, which, while small, is rapidly growing. 2023’s excitement around potential developments in the superconductor space seemingly focused attention on the fact that Bruker is one of the few firms with a sizable line of existing superconductor revenues today.

While Bruker started off making superconductors for its own lab equipment, it has increasingly found uptake in applications such as renewable energy and electronics. Therefore, all this makes BRKR stock a great pick as shares break out higher following its surge in earnings.

Honeywell (HON)

One of the more unique growth opportunities on the Nasdaq is industrial company Honeywell (NASDAQ:HON). And yes, Honeywell is indeed on the Nasdaq. It transferred its listing over the New York Stock Exchange in 2021, highlighting its efforts in the technology and sustainability fields.

Honeywell’s roots go back to Butz-Thermo Electric Regulator, a company which developed the first predecessor to the modern thermostat. Over the decades, Honeywell has created all sorts of inventions including barcodes, unleaded gasoline, biodegradable detergents and aviation autopilots.

Today, Honeywell is highly focused on industrial automation. Companies like Amazon.com (NASDAQ:AMZN) have prospered due to their smart warehouses and logistics networks. In fact, Honeywell builds much of the underlying infrastructure to support these functions.

And, given Honeywell’s history, it should be surprising that the company keeps developing other cutting-edge innovations, such as quantum computing. Honeywell helped generate novel discoveries in quantum computing. It has spun that unit out into a separate firm, Quantinuum, which is pursuing solutions in cybersecurity, drug discovery, supply chain management, AI, and finance among other fields. Honeywell retains a majority shareholding in Quantinuum, and the firm just raised funds at a $5 billion valuation in January.

This combination of factors makes HON stock a great way to get growth exposure to several promising fields at a reasonable starting valuation.

Pepsico (PEP)

Another surprising company that resides on the Nasdaq exchange is soft drinks and snack food giant Pepsico (NASDAQ:PEP).

Unlike most Nasdaq 100 Index companies, Pepsico hasn’t seen its shares appreciate meaningfully over the past year.

This is understandable. Consumer staples companies such as Pepsico have sold off thanks to higher interest rates. In addition, concerns exist that the GLP-1 category of weight loss drugs could meaningfully lower demand for soft drinks and high-calorie snack foods.

However, these concerns seem baked into the price already with PEP stock at a reasonable 21 times forward earnings. Pepsico has delivered steady earnings growth and rising dividend payments for decades on end, and this blue chip Nasdaq stock is a relative bargain in the market today.

On the date of publication, Ian Bezek held a long position in BRKR stock. The opinions expressed in this article are those of the writer, subject to the InvestorPlace.com Publishing Guidelines.

Ian Bezek has written more than 1,000 articles for InvestorPlace.com and Seeking Alpha. He also worked as a Junior Analyst for Kerrisdale Capital, a $300 million New York City-based hedge fund. You can reach him on Twitter at @irbezek.

More From InvestorPlace

• ChatGPT IPO Could Shock the World, Make This Move Before the Announcement
• Musk’s “Project Omega” May Be Set to Mint New Millionaires. Here’s How to Get In.

The post The 3 Best Nasdaq Stocks to Buy in February 2024 appeared first on InvestorPlace.

The first one on the list is a stalwart in wireless telecommunication services. This company has a resilient revenue stream and proactive expense management, demonstrating a solid foundation for sustained value growth. Whereas the second one specializes in semiconductor materials. The company leverages its diverse product portfolio to tap into booming demand trends, particularly in advanced packaging solutions. Finally, the third one operates in the financial technology sector, marking a remarkable net income and gross profit turnaround. The company is focusing on its adeptness in operational efficiency and revenue generation.

The article delves into the strategic core of these hidden gems or stocks. It explores their growth trajectories and dissects the fundamental factors propelling their ascent. From progressive performance indicators to strategic expansions, each stock presents a compelling growth potential for years.

Spok (SPOK)

Spok’s (NASDAQ:SPOK) fundamental strength that supports its rapid value growth potential is progressive performance (top-line growth and profitability). Based on its software and wireless segments, Spok has demonstrated consistent top-line growth. For instance, Spok’s top revenue for Q3 2023 stood at $35.4 million, marking a vital increase from $33.7 million in Q3 2022. This suggests a year-over-year revenue growth rate of nearly 5%. The company’s ability to capture this growth despite various market adversities reflects its strategic positioning.

Software revenue experienced solid growth within its segments, with a 12% increase year-over-year. This growth indicates solid demand for Spok’s software solutions. Moreover, Spok’s wireless revenue remained stable, at $19 million for Q3 2023, compared to $19.1 million for Q3 2022. While maintaining stable revenue levels might seem not so vital as growth, here, what is more important is the context in which it is derived. The wireless communication industry has been countering challenges due to rapid technological advancements and shifting preferences. Despite these challenges, Spok can sustain revenue levels in its wireless segment.

At the bottom line, Spok’s net income for Q3 2023 totaled $4.5 million, a 52% growth on a year-over-year basis in Q3 2022. One area that has been proving valuable to Spok’s profitability is the focus on expense management. The company is proactive in controlling operating expenses, with a noted decrease of almost 12% in adjusted operating expenses for Q1–Q3 2023 compared to Q1–Q3 2022. Therefore, this bodes well for expense management and the present profitability before any value growth can be achieved over the long term.

ACM Research (ACMR)

ACM Research’s (NASDAQ:ACMR) product portfolio expansion supports its value expansion. Revenue growth in single-wafer and semi-critical cleaning reached 33% in Q3 2023 and 42% year-to-date. Advanced packaging (excluding electrochemical plating) experienced a 12% increase in Q3 and a 40% year-to-date increase.

Fundamentally, ACM Research has a diverse product portfolio and focuses on driving revenue growth across multiple segments. The revenue increase in single-wafer cleaning and semi-critical cleaning suggests the effectiveness of ACM Research’s cleaning solutions. These solutions effectively match customer demands for advanced semiconductor manufacturing processes. As semiconductor technology advances (over AI), precision cleaning solutions are increasingly critical to ensuring product quality and yield. Hence, ACM Research’s ability to deliver high-performance cleaning tools that match specific customer requirements solidifies its market positioning.

Similarly, the growth in advanced packaging reflects ACMR’s lead in catering to emerging demand trends. These include the adoption of advanced packaging technologies like 2.5D and 3D integration. As semiconductor devices become more complex and compact, the demand for innovative packaging solutions grows, driving the need for specialized equipment and services. ACM Research’s investment in fabricating advanced packaging solutions fundamentally supports its edge of technology and capability to capitalize on the booming demand for advanced chips.

Finally, ACM Research continues to progress in expanding its customer base domestically (China) and internationally (U.S., Europe). Notable attainment includes receiving purchase orders from major U.S. and European semiconductor manufacturers for Ultra C backside cleaning and bevel etching tools. Overall, these developments may continue to support and boost the market valuation for ACM Research.

SurgePays (SURG)

SurgePays‘ (NASDAQ:SURG) solid bottom-line performance is vital for its growth potential. First and foremost, SurgePays’ net income witnessed a turnaround from a deep loss in 2021 to a solid gain in Q3 2023. In detail, the net income for Q3 surged to $7.1 million, marking a substantial improvement compared to the net loss of $13.5 million. This impressive transformation highlights the effectiveness of SurgePays’ strategic moves and operational enrichments over the period.

SurgePays attained a solid increase in gross profit at its core, reflecting its fundamental operational efficiency and revenue generation capabilities. Gross profit delivered a massive 446% boost in Q3 2023 to hit $10.5 million, compared to only $1.9 million in Q3 2022. Such a surge in gross profit suggests SurgePays’ ability to manage its cost structure and capitalize on market demand effectively.

As a result, the gross margin was substantially expanded to 30.7% in Q3 2023, suggesting a rapid increase from 5.3% in Q3 2023. This rapid expansion of gross margin points towards SurgePays’ lead in maximizing profitability across its business segments.

Notably, SurgePays slightly decreased the top line by 6% to $34.2 million in Q3. However, there is a positive trend within its core business segments. Despite the overall decline in revenue, the core business of wireless and fintech experienced a considerable increase of over $2 million in Q3. This uptick in revenue from core operations signals SurgePays’ ability to generate sustainable growth despite the ongoing adversity of market conditions.

Overall, the company focuses on high-margin products while optimizing its operational edge. Hence, this positions SurgePays to breed sustained profitability and value growth in the coming years.

As of this writing, Yiannis Zourmpanos held a long position in ACMR. The opinions expressed in this article are those of the writer, subject to the InvestorPlace.com Publishing Guidelines.

Yiannis Zourmpanos is the founder of Yiazou Capital Research, a stock-market research platform designed to elevate the due diligence process through in-depth business analysis.

More From InvestorPlace

• The #1 AI Investment Might Be This Company You’ve Never Heard Of
• Musk’s “Project Omega” May Be Set to Mint New Millionaires. Here’s How to Get In.

The post Hidden Gems: 3 Stocks Under $20 With 5X Growth Potential by 2027 appeared first on InvestorPlace.

While grocery prices stabilized, some non-food and energy goods may stay flat or decrease. Service inflation remains high, though housing and some services could improve due to slower rent and wage growth. Additionally, shelter and healthcare costs are persistently high, with car insurance premiums increasing rapidly.

Despite a projected decline in headline inflation, the Federal Reserve seeks moderation in services prices to justify interest rate cuts. Wage increases need to soften to avoid further price hikes. Potential rate cuts may occur in May or June, preceded by a portfolio runoff slowdown in March if inflation shows improvement.

Here’s everything you need to know for 2024’s economic and inflation outlook.

World Economic Outlook for 2024

The IMF staff releases a biannual survey analyzing global economic trends. This report covers various financial aspects, offering both overview and detailed analyses. Analysts predict that global growth is expected to rise this year and in 2025, with a 3.1% and 3.2% increase, respectively. 

However, that growth rate remains below the historical average. Inflation is decreasing faster than anticipated, influenced by supply-side adjustments and tight monetary policies. Predictions show a decline in global headline inflation to 5.8% in 2024 and 4.4% in 2025, with the latter revised downwards.

Disinflation and steady growth lessen hard-landing risks, balancing global growth risks. Faster disinflation could ease financial conditions, while excessive fiscal policy might boost short-term growth at later adjustment risk. 

Structural reforms could enhance productivity with cross-border benefits. Conversely, commodity spikes or persistent inflation could tighten monetary policy. China’s property issues or disruptive fiscal policies could hinder growth.

Policymakers must manage inflation’s descent, adjusting monetary policy accordingly. Fiscal consolidation is necessary for future shocks, revenue generation and debt control. Structural reforms bolster productivity and debt sustainability. Additionally, multilateral coordination is crucial for debt resolution and climate change mitigation.

Inflation Will Likely Decline in 2024

Inflation is expected to normalize without a recession. Following a peak in 2022, inflation sharply declined in 2023. Projected inflation for 2024 aligns with the Federal Reserve’s 2% target, which is attributed to supply chain resolutions and Fed tightening.

Projected inflation averages 1.8% from 2024 to 2028, slightly below the Fed’s 2.0% target. If inflation persists, the Fed may induce a recession. However, a soft landing is expected, with inflation returning to normal despite minor GDP growth deceleration.

The PCE Index, preferred by us and the Fed, dropped from 7.1% in June 2022 to 2.6% by December 2023. CPI inflation, with methodological differences, fell more sharply to 3.4% in December 2023. Core inflation, excluding volatile items, gradually decreased. Core PCE was 2.9% and core CPI 3.9% in December 2023.

Post-pandemic inflation surged initially in a few spending categories, with excess inflation at 5.7% in Q1 2022. Durable goods, energy and food at home drove 70% of this excess inflation despite constituting only 20% of total consumption. Inflation has since spread to other categories like housing and vehicles, accounting for about half of excess inflation. Partial deflation in these areas has significantly mitigated overall inflation, a one-time catch-up effect.

Due to industry-specific supply shocks driving high inflation, a bottom-up approach is taken to forecast inflation for the next five years. Significant supply constraints are easing in durables, alongside adjustments in food and energy industries due to disruptions like the Ukraine war. Housing inflation may subside without rent growth acceleration. 

Moderate wage growth and minimal supply disruptions will likely restrain inflation, with deflationary pressures due to suboptimal economic growth through 2024.

Housing Market in 2024

Price indexes reflect living costs, yet changes in housing prices take time to manifest due to infrequent transactions. CPI inflation remains high due to accumulated rent increases since 2021. Market rents are sharply decelerating due to declining demand and increased apartment supply. 

Consequently, CPI shelter inflation is expected to slow until housing inflation normalizes. Home prices are anticipated to decline further, returning to pre-pandemic levels, enhancing housing affordability and reducing construction costs.

In 2022, rates nearly doubled due to the Federal Reserve’s anti-inflation measures, remaining high since. While not directly setting mortgage rates, the Fed’s actions influence lenders. Homebuyers may still feel pressure despite hints of rate cuts, with predictions of gradual rate decline as inflation eases, but not below 6% until late 2024.

In 2023, home prices remained stable, but sales volume declined, with existing home sales dropping for five consecutive months before a slight uptick in November. However, according to National Association of Realtors (NAR) data, December saw another decrease to an annual pace of 3.78 million, down 6.2% year-over-year. Trends may shift in 2024 with declining mortgage rates, potentially boosting sales. 

The NAR forecasts a 13% sales increase, while Redfin’s (NASDAQ:RDFN) Chen Zhao expects moderate growth due to rates likely staying above 6%. CoreLogic’s Selma Hepp anticipates increased sales activity driven by lower rates, encouraging more sellers to list homes and replenish inventory.

Housing prices soared to historic highs, nearing the record set in June 2022. Despite this, a drop in prices is unlikely in 2024, according to Yun, due to improved supply. NAR predicts a modest rise in median prices, with Zhao highlighting the connection between prices and inventory. While inventory may increase slightly, prices will unlikely decline unless demand weakens.

Bottom Line

The Federal Reserve aims for long-term inflation to reach 2%. Anticipating a gradual easing of monetary policy before inflation hits 2%, the timing and pace hinge on various factors, including monthly inflation, labor market data and financial conditions. Fed Chair Jerome Powell highlighted the need for sustained progress toward the 2% target, cautioning against premature talks of interest rate cuts.

Powell suggested caution about prematurely assessing policy effectiveness or speculating on rate cuts. Economist Bill Adams believes Powell’s stance reflects the Fed’s intent to ensure inflation is well-managed before considering rate reductions. Comerica projects the Fed to maintain the federal funds target rate at 5.25% to 5.5% until mid-2024, with at least one potential quarter-point cut upcoming.

The outlook suggests a return to average inflation in 2024 amid positive real GDP growth, marking a soft landing. Despite predictions, inflation fell significantly while GDP growth accelerated, thanks to eased supply constraints. Economic resilience amidst Fed rate hikes raises the likelihood of overheating, with growth remaining robust and inflation between 3% and 4%. 

Anticipated moderation in GDP growth and inflation to 2% is expected with ongoing rate hikes, avoiding a recession but impacting borrowers transitioning to higher rates.

On the date of publication, Chris MacDonald did not hold (either directly or indirectly) any positions in the securities mentioned in this article. The opinions expressed in this article are those of the writer, subject to the InvestorPlace.com Publishing Guidelines.

Chris MacDonald’s love for investing led him to pursue an MBA in Finance and take on a number of management roles in corporate finance and venture capital over the past 15 years. His experience as a financial analyst in the past, coupled with his fervor for finding undervalued growth opportunities, contribute to his conservative, long-term investing perspective.

More From InvestorPlace

• The #1 AI Investment Might Be This Company You’ve Never Heard Of
• Musk’s “Project Omega” May Be Set to Mint New Millionaires. Here’s How to Get In.

The post Inflation Outlook: Continuing to Cool Down or Picking Back Up Again? appeared first on InvestorPlace.

Right now, many of these stocks are falling because of higher inflation, with the consumer price index coming in hotter than expected. That, of course, is derailing hopes for aggressive interest rate cuts at the moment. However, once inflation cools, and the Fed cuts interest rates, we could see a substantial return of interest in renewable energy stocks.

While the idea does carry risk, investors may want to take advantage of weakness now. After all, as we’ve learned from Baron Rothschild, the time to buy is when there’s blood in the streets, even if the blood is your own. Even Warren Buffett will tell you a climate of fear is your friend.

So, if you have the stomach for it, and a good deal of patience, I’d start accumulating renewable energy stocks to buy and exchange-traded funds (ETFs) such as:

Cameco (CCJ)

One of the top renewable energy stocks to buy is Cameco (NYSE:CCJ).

After rocketing from a low of about $36 to a high of nearly $51, the uranium stock plunged to a recent low of $42.18. At that price, it’s technically oversold on RSI, MACD and Williams’ %R. It’s also now sitting at double bottom support dating back to January.

From here, I’d like to see CCJ retest its prior high above $51.

Mounting supply-demand issues, along with uranium prices reaching 16-year highs, should help Cameco get there. Plus, with global governments intensifying their fight against climate change, many are quickly realizing that if they want a carbon-neutral future, nuclear energy has to be part of the solution.

In addition, uranium demand for nuclear reactors could climb about 28% by 2030, and double by 2040, according to the World Nuclear Association. 

NexGen Energy (NXE)

Another one of the top renewable energy stocks to buy is NexGen Energy (NYSE:NXE), which is slightly oversold on a pullback. Now at $7.43, and trading above its 50-day moving average, I’d like to see NXE again challenge $8.25 initially.

Helping, the world’s largest producer of uranium again warned its 2025 plans could be curtailed by delays and problems with sulfuric acid — which is used to extract uranium. As Seeking Alpha reported,

“Kazakh uranium miner Kazatomprom, which produces ~20% of the world’s uranium, said it will produce only 80% of its permitted maximum uranium output allowed under Kazakh subsoil usage contracts, instead of the previously announced 90% level.”

That’s also creating a supply-demand issue, which benefits NXE.

Global X Uranium ETF (URA)

There’s also the Global X Uranium ETF (NYSEARCA:URA) for those wanting to diversify at a low cost. With an expense ratio of 0.69%, the ETF invests in companies involved in uranium mining and production, including those in extraction, refining, exploration or manufacturing of equipment for the uranium and nuclear industries. 

The URA ETF also just pulled back to support at its 50-day moving average, which puts it at $28.96. From here, I’d like to see it initially retest $32.60, and eventually $40 a share.

Enphase Energy (ENPH)

Or, look at renewable energy stocks to buy like Enphase Energy (NASDAQ:ENPH).

Over the last few weeks, ENPH soared from about $100 to $131.87 and could see higher highs. While earnings weren’t so hot, the company did say it expects inventory levels to normalize, and for product demand to pick up again by the end of the second quarter. As CEO Badri Kothandaraman said,

“We have been managing through a period of slowdown in demand. We think Q1 could be the bottom quarter. Europe is already showing early signs of recovery, and we expect the non-California states to bounce back quickly.” 

Analysts at Oppenheimer also upgraded ENPH to an “outperform” rating, with a $133 price target. The firm believes negativity has been priced into the stock.

First Solar (FSLR)

Another one of the top renewable energy stocks to buy is First Solar (NASDAQ:FSLR). 

Over the last week, shares ran from about $136 to a recent high of $163.43. From here, I’d like to see it again test prior resistance around $178. Helping, analysts at RBC initiated coverage of FSLR with an “outperform” rating, noting the solar industry is nearing “an inflection point,” as noted by Seeking Alpha.

The industry “should continue to benefit from a positive rate of change and will continue to see long-term support from public policy, emissions regulation and declining costs,” even as both residential and utility scale solar face headwinds in the near term, they added.

Also, not long ago, Morgan Stanley upgraded FSLR to an “overweight” rating, noting the stock would benefit from changes in government policy.  The firm added,

“We estimate the company will generate $13 billion of free cash flow through 2032 just from IRA tax credits alone, which will provide the company with significant excess cash for technology R&D [research and development], M&A [mergers and acquisitions], or capital return.”

Invesco Solar ETF (TAN)

Or, if you want to diversify with 45 solar names, there’s the Invesco Solar ETF (NYSEARCA:TAN) — which is also starting to pivot higher. After finding support at $40, it’s now back up to $46.86. From here, I’d like to see it retest $54 a share. With an expense ratio of 0.67%, the TAN ETF tracks the results of the MAC Global Solar Energy Index.

Some of the TAN ETF’s top holdings include Sunrun (NASDAQ:RUN), Shoals Technologies(NASDAQ:SHLS), Array Technologies (NASDAQ:ARRY), Enphase Energy, First Solar and SolarEdge (NASDAQ:SEDG) to name a few.

Southern Copper (SCCO)

After pulling back, Southern Copper (NYSE:SCCO) is just as attractive.

After finding strong support dating back to January, it’s already pivoting higher. From its last price of $82.97, I’d like to see it refill its bearish gap around $86 initially. Additionally, we have to remember that copper is a crucial component of renewable energy, especially in wind, solar and even with electric vehicle charging infrastructure. 

Lastly, some analysts say copper could rocket about 75% higher by 2025, with deficits. All of which could send copper stocks, like SCCO even higher.

On the date of publication, Ian Cooper did not hold (either directly or indirectly) any positions in the securities mentioned. The opinions expressed in this article are those of the writer, subject to the InvestorPlace.com Publishing Guidelines.

Ian Cooper, a contributor to InvestorPlace.com, has been analyzing stocks and options for web-based advisories since 1999.

More From InvestorPlace

• The #1 AI Investment Might Be This Company You’ve Never Heard Of
• Musk’s “Project Omega” May Be Set to Mint New Millionaires. Here’s How to Get In.

The post Get Rich Quick with These 7 Renewable Energy Stocks to Buy Now appeared first on InvestorPlace.

This can be due to a number of factors. Slowing sales, dwindling profits, loss of market share, and failure to keep up with shifting tides can all lead to once mighty stocks falling on hard times. While many securities are still down for the count, some are getting up off the mat and look ready to fight their way back into the good graces of investors. After declining and then languishing for long periods, certain stocks seem to have finally bottomed and are marching higher once again.

For shareholders who held on and kept the faith, this is a moment of vindication. Yet for other investors, it’s a moment of opportunity. Let’s delve into three unloved stocks with promising catalysts to bring them back into investors’ favor.

Apple (AAPL)

Even Warren Buffett is selling Apple (NASDAQ:AAPL) stock.

The famed investor just disclosed in a regulatory filing that his holding company Berkshire Hathaway (NYSE:BRK-A, NYSE:BRK-B) sold 10 million AAPL shares during the fourth quarter of last year. The sale made headlines as Buffett has long been Apple’s self-proclaimed biggest fan, and the company’s largest individual shareholder. Berkshire Hathaway currently holds a little more than 905 million shares of Apple worth $165 billion.

While Apple continues to be Buffett’s biggest position, comprising nearly half (45%) of his stock portfolio, the sale late last year is further evidence of the poor sentiment surrounding AAPL stock. The ill will is reflected in the fact that Apple’s share price is down 2% year to date (YTD). Declining sales of its legacy devices, such as the iPhone, are the main reason the stock is down. However, there’s reason to believe Apple’s stock is ready to rise as the company introduces its Vision Pro augmented reality (AR) headset.

The Vision Pro is Apple’s first entirely new device since the Apple Watch was introduced in 2015, and should help to boost the company’s finances and share price. Additionally, early reviews of the Vision Pro are positive.

Walt Disney Co. (DIS)

Recently, Walt Disney Co. (NYSE:DIS) delivered quarterly financial results that look to be getting the company and its stock out of the dog house with investors.

Shares of the Mouse House have risen 12% since the company issued its latest earnings print on Feb. 7. DIS stock is now up 23% on the year and trading at a 52-week high. It’s a big turnaround after the share price languished at a multi-year low for most of 2023.

Further, the reversal of fortune comes after Disney reported better-than-expected Q4 financial results. Also, it increased its dividend payment to shareholders by 50%. Starting this July, Disney will pay a semi-annual dividend to stockholders of 45 cents. That’s a whopping 50% higher than its current payout. Walt Disney reinstated its dividend late last year after suspending it in 2020 during the Covid-19 pandemic. If that weren’t enough, Disney also announced a new $3 billion stock buyback plan. Investors are loving it.

General Electric (GE)

For 20 years, General Electric (NYSE:GE) was viewed as a value trap. From the late 1990s through to the pandemic in 2020, GE stock consistently slid downwards. It was so bad that in July 2021, the company executed a one-for-eight reverse stock split to artificially raise its share price in what was widely viewed as an act of desperation.

My, how things have changed! Currently, GE stock is up 18% on the year and has gained 75% in the last 12 months due to a remarkable turnaround at the industrial conglomerate.

At the end of January, General Electric reported Q4 2023 financial results that beat Wall Street forecasts across the board. Also, the company reported earnings per share (EPS) of $1.03, which was higher than the 91 cents consensus estimate of analysts. Revenue in Q4 rose 15% to $19.42 billion, beating forecasts of $17.67 billion. GE said the strong print was due to demand for parts and services at its jet engine business.

Much of the turnaround has come from the company separating its diverse business units. General Electric completed the separation of its healthcare business last year and plans to spin off its energy business into a separate company this April.

On the date of publication, Joel Baglole held a long position in AAPL. The opinions expressed in this article are those of the writer, subject to the InvestorPlace.com Publishing Guidelines.

Joel Baglole has been a business journalist for 20 years. He spent five years as a staff reporter at The Wall Street Journal, and has also written for The Washington Post and Toronto Star newspapers, as well as financial websites such as The Motley Fool and Investopedia.

More From InvestorPlace

• ChatGPT IPO Could Shock the World, Make This Move Before the Announcement
• Musk’s “Project Omega” May Be Set to Mint New Millionaires. Here’s How to Get In.

The post Turnaround Picks: 3 Unloved Stocks That Are Ready to Rise appeared first on InvestorPlace.

Of course, picking the right stocks that won’t drop overnight is important, as capital preservation is a top priority for those who need to utilize their hard-earned capital in the coming years.

While bonds could certainly continue to rally and are worth holding into a Federal Reserve rate cutting cycle, there are some stocks that could benefit as well. Each of the three income stocks on this list are among the highest-yielding names in the market right now. These are also large-cap companies with stable business models I think provide relative stability and are worth considering on pullbacks.

Diamondback Energy (FANG)

Diamondback Energy’s (NASDAQ:FANG) low price-earnings multiple is consistent with the decline in the energy industry brought on by the waning oil prices. Despite modest improvements, the Diamondback’s valuation still lags the majority of its Nasdaq 100 counterparts. Notably, analysts covering the stock have a consensus target price of $181 and rank it as an overweight or buy.

I think FANG stock could actually be trending toward the higher end of analysts’ price garget ranges, with a $240 target price not detached from reality. As the company continues to grow, and passes on this growth to investors in the form of dividends, demand for FANG stock should increase over time. Additionally, despite price-related concerns, positive Q3 production results and awaited Q4 growth numbers boost this stock’s prospects over the medium-term.

Importantly, Diamondback Energy and Endeavor Energy Resources recently shook hands to merge, forming the largest Permian Basin producer. On the one hand, CEO Travis Stice patted the back of the merger’s enhancement and integrations. While on the other, Endeavor CEO Lance Robertson viewed it as transformative, spotlighting scaling and long-term success. Diamondback won over ConocoPhillips, making Shell, Exxon and Pioneer turn their heads toward them.

Crown Castle (CCI)

Since the curtains opened on 5G and soaring mobile data demand has proliferated, carriers are investing heavily in network expansion. Crown Castle (NYSE:CCI) has a giant web of fiber and cell towers, positioning the company well to take advantage of the long-term secular growth trends supporting its business.

Importantly, Crown Castle has continued to add to its investments in fiber and small-cell technology. The company is eyeing adding 16,000 new nodes in 2024, polishing its 5G strategy, and maintaining a solid balance sheet and liquidity.

With a net debt to last quarter’s EBITDA of 5.3-times, and a weighted average term to maturity of eight years, Crown Castle exited Q4 2023 with $105 million in cash and equivalents in its pockets. I think this is a company that’s positioned for well long-term growth with investment-grade credit ratings for S&P, Fitch, and Moody’s. For a company in a highly capital-intensive business, this is a good thing, and should ensure dividend stability moving forward.

3M (MMM)

3M’s (NYSE:MMM) shining value and 6.5% dividend yield puts it on an investment pedestal, despite concerns around the company’s slowing growth. Its wide-ranging industry presence sets the seal on continuous demand, with long-term investors continuing to benefit from its high dividend, even in times where MMM stock stagnates.

Indeed, 3M’s 2023 operational performance packed a punch, with the company’s adjusted earnings per share rising 11% and cash flow crossing the $6.3 billion line. The company shrunk its net debt by $2 billion (17%) and returned $3.3 billion to shareholders through dividends. The healthcare business spin-off on the horizon will enhance the balance sheet. Strong cash flow will grant flexibility and resilience against challenges.

3M has experienced restructuring and acquisitions in the middle of difficulties, which affected the performance of its shares. However, now trading around $93 per share (not too far from a 52-week low), MMM stock remains a buy for those looking for consistent dividends and dividend growth over time.

On the date of publication, Chris MacDonald did not have (either directly or indirectly) any positions in the securities mentioned in this article. The opinions expressed in this article are those of the writer, subject to the InvestorPlace.com Publishing Guidelines.

Chris MacDonald’s love for investing led him to pursue an MBA in Finance and take on a number of management roles in corporate finance and venture capital over the past 15 years. His experience as a financial analyst in the past, coupled with his fervor for finding undervalued growth opportunities, contribute to his conservative, long-term investing perspective.

More From InvestorPlace

• The #1 AI Investment Might Be This Company You’ve Never Heard Of
• Musk’s “Project Omega” May Be Set to Mint New Millionaires. Here’s How to Get In.

The post Retirement Riches: 3 Stocks That Can Beat Bonds for Income appeared first on InvestorPlace.

These three stocks are supported by three long-term themes: cybersecurity, cloud migration and emerging market capital markets development. These themes present an incredible opportunity for these stocks that have established a strong strategic position. Furthermore, these markets are dynamic, with an expanding total addressable market.

Besides growth, these three companies have nailed profitability. As they expand, they are generating significant operating leverage. As a result, EBIT and free cash flow margins are on an upward trajectory. This trend in improving profitability will be more pronounced as they achieve greater scale.

These companies are poised for explosive growth and future success with their innovation, expanding markets and strong financial performances. Stock for growth investors will find these companies attractive additions to their investment portfolios.

CrowdStrike (CRWD)

CrowdStrike (NASDAQ:CRWD) is a leading cloud-native endpoint security platform. While other companies have just begun integrating AI, this security company has been doing so for a decade. Its Falcon platform utilizes advanced artificial intelligence and machine learning to offer real-time threat detection and automated responses.

As cyber threats evolve in complexity and frequency, Crowdstrike has become a critical defense for businesses worldwide. It has positioned itself as the AI-native security platform. Today, it serves several cyber end markets, including endpoint security, security and IT operations, observability, managed services, cloud security and identity protection.

Due to its leadership in cloud endpoint security, it has seen a rapid expansion in its customer base. Moreover, it has a high retention rate and earns more revenues as customers adopt more Falcon modules. New customers, plus the land and expand model that leads to additional subscriptions to more Falcon modules, have brought tremendous success. Subscription annual recurring revenue has grown from $71 million in Q1 fiscal year 2018 to $3.15 billion in Q3 FY2024.

CRWD stock is soaring with subscription revenue growth in the first three-quarters of FY2024, up 37%. Yet despite these astonishing growth numbers, management expects to maintain this momentum. Their optimism is buttressed by a growing total addressable market, which they expect to grow from $100 billion to $225 billion in 2028.

Datadog (DDOG)

As usual, Datadog (NASDAQ:DDOG) reported another impressive quarterly report on Feb. 13. Revenues rose 26% year-over-year to $589.6 million. Initially, the stock sold off but has recovered those losses. Any weakness in this stock for growth is an opportunity to buy.

Over the past five years, Datadog has cemented its leading position in cloud-scale monitoring and analytics. It provides an integrated platform that monitors servers, databases, tools and services through a software-as-a-service data analytics platform. Its platform enables companies to improve operational performance and ensure the high availability of their services.

As companies migrate to cloud computing, the demand for Datadog’s services is expected to surge. The International Data Corporation (IDC) projects that cloud spending growth will average 19.9% annually through 2027. Datadog will capture part of these cloud budgets, given its comprehensive monitoring solutions across cloud providers, servers, databases and applications.

Digging into the latest results, it’s clear that this stock for growth isn’t slowing down. Besides the 26% revenue growth, customer growth was also impressive. Customers with an ARR of $1 million or more increased from 317 in 2022 to 396 as of Dec. 31, 2023. Over the same period, customers with an ARR of $100,000 or more increased from 2,780 to 3,190, a 15% increase.

Datadog’s growth is backed by the secular shift from on-premises to the cloud. Management expects revenue of $2.555-$2.575 billion in FY2024, representing at least 19.9% growth. The company has always surprised to the upside and will do so again.

XP (XP)

XP (NASDAQ:XP) is a leading technology-driven financial services platform transforming Brazil’s financial landscape. It offers a comprehensive product range, including brokerage services, investment advisory and wealth management. The XP platform caters to a broad spectrum of clients, from retail investors to high-net-worth individuals.

Brazil’s financial market is ripe for disruption, and XP is at the forefront of this transformation. Its customer service and innovative technology position it well to capture Brazil’s growing demand for financial services. Furthermore, this stock for growth is a play on capital market development, a secular trend the company will capitalize on.

In 2023, XP showed impressive growth in client base, assets under management (AUM) and revenues. It reached an important milestone in the third quarter, achieving 1 trillion BRL ($201 billion) in client assets. Revenues are accelerating, with 10% growth in the June 2023 quarter and 22% growth in September 2023.

Furthermore, it is seeing tremendous growth in new verticals like retirement plans, insurance and credit cards. In Q3 2023, these verticals grew 52% YOY from 291 million to 442 million BRL.

This growth is a testament to the company’s strong value proposition. XP is well-positioned to capitalize on the expanding financial services market in Brazil. New verticals like credit cards and insurance are growth opportunities that will turbocharge growth.

On the date of publication, Charles Munyi did not hold (either directly or indirectly) any positions in the securities mentioned in this article. The opinions expressed in this article are those of the writer, subject to the InvestorPlace.com Publishing Guidelines.

Charles Munyi has extensive writing experience in various industries, including personal finance, insurance, technology, wealth management and stock investing. He has written for a wide variety of financial websites including Benzinga, The Balance and Investopedia.

More From InvestorPlace

• ChatGPT IPO Could Shock the World, Make This Move Before the Announcement
• Musk’s “Project Omega” May Be Set to Mint New Millionaires. Here’s How to Get In.

The post 3 Stocks Poised for Explosive Growth and Future Success appeared first on InvestorPlace.

If you’re one of the lucky few, you’ll have the opportunity to capitalize on them before they pass you by. However, that does not mean that it won’t carry any risk. Investors should always tread carefully and only invest what they can afford to lose potentially. But if you’re willing to take some risks, these three small caps could be the launchpad to triple-digit returns by 2026. 

Now, let’s discover the three best small-cap stocks in February 2024!

Navitas Semiconductor (NVTS)

Navitas Semiconductor (NASDAQ:NVTS) has been on a tear in the last week, up nearly 20% to $6.79 per share. Investors are placing their bets on the SiC chip boom and the long term growth prospects of gallium nitride-based semiconductors.

Navitas plans to revolutionize the semiconductor industry with a new technology that offers significant advantages to silicon carbide chips. Gallium nitride provides robust performance, efficiency, size and cost advantages. While they primarily serve the energy storage and EV markets, there is a growing interest and use case in consumer electronics. Their flagship GANFast power ICs and GeneSiC MOSFETs are paving the way for a greener, more efficient future. 

In Q3 2023, the company’s revenue skyrocketed 115% YOY to $122 million. They also secured a major supply deal with Samsung to power the Galaxy S23. The company is led by its CEO, Gene Sheridan, who has more than 25 years of experience in the semiconductor industry. With the company at the forefront of a new emerging technology, Navitas is undoubtedly one of the best small-cap stocks to buy for 2024.

ACM Research (ACMR)

ACM Research (NASDAQ:ACMR) remains one of the top small-cap stocks to buy for 2024. The company is set to benefit from the rebound in the wafer fabrication equipment market over the next several quarters. 

ACM Research’s underlying business primarily supports integrated circuits (ICs) and semiconductor manufacturing. Their focus lies on wafer packaging and cleaning preparation for ICs. While most of their business is concentrated in China, tailwinds support accelerated growth in FY24.

In their latest quarterly results, revenue increased 26% YOY to 168.6 million. Net income increased by 22% as spending on mature nodes drove profitability. Management expects continued growth in the 2024 fiscal year, and AI could be a key driver. Furthermore, CEO David Wang is guiding revenue in the $650 million to $725 million range, reflecting approximately 30% YOY growth. This under-the-radar semiconductor stock could be a multibagger if you’re more risk-tolerant.

Sterling Infrastructure (STRL)

Sterling Infrastructure (NASDAQ:STRL) is an infrastructure and construction company headquartered in Houston, Texas. The stock more than doubled in 2023 due to strong revenue and EPS growth.

Sterling Infrastructure specializes in e-infrastructure, transportation, and building solutions. Their diverse portfolio and expertise allow them to tackle projects ranging from data centers and distribution hubs to highways, bridges and residential buildings. The company is also set to benefit from the Bipartisan Infrastructure Bill, which encompasses up to $65 billion to enhance U.S. infrastructure across the country. This will be just one of the tailwinds for accelerated growth over the next decade. 

They have been landing large contracts over the last several quarters and are set to report their Q4 and full-year results for 2023. For example, STRL landed $730 million in new contract awards on October 31st for their e-mobility and transportation business. In Q3 2023, EPS surged 26% YOY to $1.26 per share with a quarter ended backlog of over $2 billion. With the need to rapidly build new data centers, this infrastructure stock could be pivotal for the AI revolution that’s currently unfolding.    

On the date of publication, Terel Miles did not have (either directly or indirectly) any positions in the securities mentioned in this article. The opinions expressed in this article are those of the writer, subject to the InvestorPlace.com Publishing Guidelines.

Terel Miles is a contributing writer at InvestorPlace.com, with more than seven years of experience investing in the financial markets.

More From InvestorPlace

• The #1 AI Investment Might Be This Company You’ve Never Heard Of
• Musk’s “Project Omega” May Be Set to Mint New Millionaires. Here’s How to Get In.

The post 3 Small-Cap Stocks to Triple Your Money by 2026 appeared first on InvestorPlace.

The focus of this column is on penny stocks with stories backed by decent fundamentals. Further, I believe there are one or a few impending catalysts for these companies. If the catalysts play out, the penny stocks can skyrocket and deliver 5x to 10x returns.

I would not be overly optimistic when it comes to the investment horizon. It’s good to be prudent with macroeconomic headwinds. However, I can say with some conviction that these penny stocks can be 5-baggers or 10-baggers within the next 36 months.

Let’s discuss the factors likely to trigger a massive rally in these undervalued penny stocks.

Standard Lithium (SLI)

After a big crash in lithium prices, investors seem unwilling to touch lithium stocks. I would, however, use this as an opportunity to buy at deeply undervalued levels. Standard Lithium (NYSE:SLI) plunged by 71% in the last 12 months and is among the list of risky penny stocks to buy.

I believe the stock can deliver 10x returns in the next three years under two conditions. First, lithium has a reversal rally and remains in an uptrend. That seems likely, with some analysts expecting a lithium shortage as early as 2025.

Further, another big catalyst is financing for project construction. If Standard Lithium secures significant funds, the stock will skyrocket. It’s worth noting that the company’s key asset has an after-tax net present value of $4.5 billion. However, the asset requires an investment of $1.2 billion. Securing the funding would boost prospects of commercialization in 2026 or 2027.

Bitfarms (BITF)

With the outlook for Bitcoin (BTC-USD) remaining bullish, I would consider exposure to Bitcoin miners. Among penny stocks, Bitfarms (NASDAQ:BITF) looks undervalued. If the cryptocurrency surges above $100,000, BITF stock could deliver 5x to 10x returns.

I must mention here that Standard Chartered believes Bitcoin could touch $200,000 by the end of 2025. If that scenario holds, BITF stock will likely go ballistic, and 10x returns would look minuscule.

Specific to Bitfarms, there are two reasons to be bullish. First, the company has a strong liquidity buffer of $118 million as of December 2023. Also, Bitfarms should soon be debt-free, providing the company with high financial flexibility.

Further, Bitfarms has aggressive expansion plans. As of Q4 2023, the company reported a hash rate capacity of 6.5EH/s. It expects to boost capacity to 21EH/s by the end of the year. With a tripling of capacity, Bitfarms is positioned for stellar growth coupled with upside in cash flows.

Tilray Brands (TLRY)

Tilray Brands (NASDAQ:TLRY) is another name among penny stocks that can easily deliver 5x or 10x returns. While the stock has remained in a downtrend, business developments remain positive. It’s also worth mentioning that if cannabis is legalized at the federal level, 5x returns are likely in the blink of an eye.

For Q2 2024, Tilray reported record revenue of $194 million, higher by 34% on a year-on-year basis. In the cannabis segment, the company is already the market leader in the European medicinal cannabis market. That supported a 55% growth in international cannabis revenue for the quarter.

Further, with a flurry of acquisitions last year, Tilray positioned itself as the fifth-largest craft beer brewer in the United States. With diversification, the company seems well-positioned for sustained growth. From a financial perspective, Tilray expects to generate positive adjusted free cash flow for the financial year 2024. As financial flexibility improves on the back of swelling cash flows, Tilray will be positioned to make aggressive investments.

On Penny Stocks and Low-Volume Stocks: With only the rarest exceptions, InvestorPlace does not publish commentary about companies that have a market cap of less than $100 million or trade less than 100,000 shares each day. That’s because these “penny stocks” are frequently the playground for scam artists and market manipulators. If we ever do publish commentary on a low-volume stock that may be affected by our commentary, we demand that InvestorPlace.com’s writers disclose this fact and warn readers of the risks.

Read More: Penny Stocks — How to Profit Without Getting Scammed

On the date of publication, Faisal Humayun did not hold (either directly or indirectly) any positions in the securities mentioned in this article. The opinions expressed in this article are those of the writer, subject to the InvestorPlace.com Publishing Guidelines.

Faisal Humayun is a senior research analyst with 12 years of industry experience in the field of credit research, equity research and financial modeling. Faisal has authored over 1,500 stock specific articles with focus on the technology, energy and commodities sector.

More From InvestorPlace

• The #1 AI Investment Might Be This Company You’ve Never Heard Of
• Musk’s “Project Omega” May Be Set to Mint New Millionaires. Here’s How to Get In.

The post 3 Risky Penny Stocks That Are Worth the Shot appeared first on InvestorPlace.

Bellring Brands (BRBR)

Among the great investment opportunities you can add to the portfolio, we have BellRing Brands (NYSE:BRBR). The company specializes in the creation and distribution of food, but its focus is on nutritious and healthy beverages.

The company’s main brand is Premier Protein, which is well known for its protein-packed, ready-to-drink shakes.

Last year they made a very important strategic partnership with SunOpta (NASDAQ:STKL). SunOpta is also a leading plant-based food company. All this with the great purpose of being able to expand its presence in the large market of nutritional beverages.

One of the many positive points of this partnership has been to strengthen their sustainability efforts by aligning their products with healthy and conscious consumption trends.

This company has very solid finances. These were demonstrated in its annual report where its net sales reached $1,666.8 million. Also, there was a brutal profit of $530.2 million.

EyePoint (EYPT)

Next on the list of good investment opportunities is EyePoint Pharmaceuticals (NASDAQ:EYPT). It specializes in improving the lives of people who struggle day in and day out with severe retinal diseases.

Looking at their financials, in their latest quarterly report, they reported a significant growth in total revenue to $15.2 million, up from $10 million in the previous year.

They also reported a significant increase in revenues from collaborations and royalties, which was supported by the sale of YUTIQ, a franchise.

While they have a notable increase in ongoing clinical trial expenses, it has not impacted their finances much as they showed progress in their financial stability with a decrease in their net loss.

One of their achievements has been the dosing of the first patient in the phase 2 VERONA trial, which is a major step forward for the treatment of diabetic macular edema.

It has also managed to share very positive results from the DAVIO 2 Phase 2 trial. This is an indication of the company’s strong commitment to people’s health and future growth.

Copart (CPRT)

Finally, to top it all off, we have Copart, Inc. (NASDAQ:CPRT), who is a leader when it comes to online car marketplaces.

However, not only do they sell cars, they also work hard to make the whole process easier and more efficient for everyone involved.

During their last quarter they experienced incredible growth. Revenues, gross profit and net income all increased significantly compared to the previous year. The big sign of all this has been the exponential growth of their earnings per share, which increased by 36%.

However, in addition to this incredible growth, they are going for more, without a doubt their vision for the future goes hand in hand with wonderful innovation and of course great teamwork. They have recently made a partnership with Purple Wave, Inc.

This partnership has allowed them to reach heavy equipment auctions. As I said earlier, they are going for more, as they have also entered into a partnership with Hi Marley to make the insurance process much more streamlined and efficient.

As of this writing, Gabriel Osorio-Mazzilli did not hold (either directly or indirectly) any positions in the securities mentioned in this article. The opinions expressed in this article are those of the writer, subject to the InvestorPlace.com Publishing Guidelines.

Gabriel Osorio is a former Goldman Sachs and Citigroup employee. He possesses discipline in bottom-up value investing and volatility-based long/short equities trading.

More From InvestorPlace

• ChatGPT IPO Could Shock the World, Make This Move Before the Announcement
• Musk’s “Project Omega” May Be Set to Mint New Millionaires. Here’s How to Get In.

The post The 3 Most Promising Stocks to Invest in Before They Take Off appeared first on InvestorPlace.

It’s a busy news cycle. Let’s bounce around to a handful of stories likely impacting your portfolio.

As we covered in the Digest on Tuesday, January’s CPI number came in above forecasts, resulting in a heavy down day on Wall Street.

The selling pressure was due to fears that the hotter-than-expected CPI data would cause the Federal Reserve to delay its initial rate cut, while potentially cutting rates fewer times in 2024.

The hope was that today’s Producer Price Index (PPI) print would be more encouraging, giving the Federal Reserve members the “cool” data that they’re looking for. Instead, the number also came in higher than expected. 

Here’s CNBC:

Wholesale prices rose more than expected in January, further complicating the inflation picture, according to a U.S. Department of Labor report Friday.

The producer price index, a measure of prices received by producers of domestic goods and services, rose 0.3% for the month, the biggest move since August. Economists surveyed by Dow Jones had been looking for an increase of just 0.1%. PPI fell 0.2% in December.

Excluding food and energy, core PPI increased 0.5%, also against expectations for a 0.1% gain. PPI excluding food, energy and trade services jumped 0.6%, its biggest one-month advance since January 2023.

As I write, Wall Street is responding as it did to Tuesday’s hot CPI report – poorly.

It knows that the Federal Reserve is basing its rate-cut decisions on inflation data. Clearly, this week’s inflation data isn’t supportive of fast-and-furious rate cuts that were the centerpiece of the 2024 bull market thesis at the turn of the year.

Just a few weeks ago, the futures market was pricing in the first rate cut in March. Today, it’s a coinflip that a cut happens in June. And if the inflation data continue to prove stubborn, next fall is the safer bet.

Regardless of when it happens, you can kiss the idea of a slew of rate cuts in 2024 goodbye (barring a recession). So, if your portfolio requires lots of cuts as fuel for gains, be careful today.

As we’ve been reporting in the Digest, Houthi rebels have continued their missile-strikes on ships in the Red Sea, disrupting one of the world’s busiest trade routes. Since November, the Houthis have attacked or threatened commercial ships at least 46 times, according to U.S. defense data.

This is a major problem for global commerce since the Red Sea is the only route to the Suez Canal (from Asia) and is a lifeblood for trade connecting Europe and the East. About 12% of global trade comes through the canal, which represents approximately 30% of all global container traffic.

Despite hopes that Western governments would be able to stop the Houthi attacks, the situation is deteriorating and shipping companies are sounding the alarm.

From CNBC on Wednesday:

A.P. Moller-Maersk, the second-largest global ocean carrier, is advising customers to prepare for a Red Sea crisis that could stretch well into the second half of this year.

“Unfortunately, we don’t see any change in the Red Sea happening anytime soon,” Charles van der Steene, regional president for Maersk North America, tells CNBC.

“We’re advising them the longer transit routes could last through Q2 and potentially Q3. Customers will need to make sure they have the longer overall transit time built into their supply chain.”

These longer transits are impacting shipping costs.

Here’s JPMorgan:

While several aggregate measures of container shipping costs are now two-and-a-half to three times of their early December levels, prices along routes that typically go through the Suez Canal — particularly from Asia to Europe — have surged nearly five-fold.

Costs from China to the U.S. have also more than doubled.

For now, we’re seeing limited impact on consumer prices. Shipping costs aren’t a huge portion of most product’s total cost, and many manufacturers are eating the markup to protect customer loyalty.

But if the situation doesn’t improve, that’s likely to change, throwing a monkey wrench into the fight against inflation.

Back to JPMorgan:

As global goods disinflation has been the primary driver of lower inflation around the world, the recent reductions in global shipping capacity, at the very least, risk interrupting the disinflationary trend.

At worst, they will push traded goods prices higher for a period of time. While we do not expect a rise anywhere near as large as the COVID-era shock, even a modest rebound in goods inflation could render global core CPI inflation sticky around the 3% mark.

If inflation stalls out at 3% (50% higher than the Fed’s target inflation rate), the question stops being “how many cuts will we get from the Fed this year?” and becomes “will the Fed cut rates at all this year?”

As we noted earlier in this Digest, if you’re banking on lots of rate cuts, be careful.

One week ago today, we analyzed the oil market with the help of our macro expert Eric Fry. Our conclusion was oil and energy stocks appear attractive for a trade – both on a shorter-term basis (as we head toward the summer) and a longer-term basis (as supply shocks hit the market by 2025).

Well, oil keeps climbing, and legendary investor Louis Navellier is feeling bullish about his Big Energy Bet.

Let’s jump to Louis’ Special Market Update Podcast from Growth Investor earlier this week:

Oil prices are up, and, of course, we still have our Big Energy Bet. It’s very important that you have stocks that zig when others zag, which is why I keep the energy bet.

Energy stocks benefit in the spring because as people get out-and-about more, demand rises. There have also been many refineries that have shut down for maintenance, so inventory for refined products is pretty tight right now.

So, I like my best energy stocks. 

Unfortunately, I can’t share with you those specific names since they’re reserved for subscribers. But I’ll offer you the next best thing – Louis’ free Portfolio Grader tool.

If you’re new to the Digest, Louis is a quant investor which means he bases his market activity on cold, impartial numbers instead of hunches or guesses. Louis analyzes eight key fundamental factors:

• sales growth
• operating margin growth
• earnings growth
• earnings momentum
• earnings surprises
• analyst earnings revisions
• cash flow

The Portfolio Grader is a free diagnostic tool that evaluates the earnings strength of a stock you’re considering through these same metrics. It’s the next best thing to calling Louis directly and asking for his opinion on a stock.

To illustrate, say you’re trying to decide between adding one of three energy plays to your portfolio: Valero, Chevron, and Phillips 66.

Which one might Louis pick?

Here you go:

Phillips 66 is the only one with an active “buy” status today.

To take the Portfolio Grader for a test drive, just click here.

Yesterday, we learned that consumer spending fell hard in January, signaling cracks in the “resilient” U.S. consumer.

From CNBC:

Advance retail sales declined 0.8% for the month following a downwardly revised 0.4% gain in December, according to the Census Bureau.

A decrease had been expected: Economists surveyed by Dow Jones were looking for a drop of 0.3%, in part to make up for seasonal distortions that probably boosted December’s number.

However, the pullback was considerably more than anticipated. Even excluding autos, sales dropped 0.6%, well below the estimate for a 0.2% gain.

Here’s Louis’ perspective from yesterday’s Growth Investor Special Market Update podcast:

The retail sales report was very disappointing. It was weak across the board.

The only thing that was really up was furniture sales and spending at bars and restaurants…

Clearly, consumers spent too much during the holidays…

Now, it wasn’t all bad. In today’s upside-down market, the silver lining of weaker consumer spending is that it gives the Fed some data supportive of a rate cut.

Back to Louis:

The disastrous January retail sales report will cause a lot of downward GDP revisions.

Don’t let that bother you, because it will just make the Fed consider cutting rates sooner than later.

According to TransUnion, credit card balances jumped 10% from one year ago. The average balance sits at $6,360, which is the highest it’s ever been.

Now, that alone isn’t huge cause for concern. Part of this elevated figure reflects inflation.

The more concerning aspect is how more Americans are unable to pay off their balances each month.

Back to CNBC:

…Households continue to show signs of strain — more cardholders are carrying debt from month to month or falling behind on payments.

Credit card delinquency rates jumped across the board, the New York Fed and TransUnion found. Credit card delinquencies surged more than 50% in 2023, the New York Fed reported.

According to TransUnion’s research, “serious delinquencies,” or those 90 days or more past due, reached the highest level since 2009.

“Consumers are struggling with their payments,” Wise said. “I think we will continue to see those delinquencies tick up.”

Now, as Louis noted, this could accelerate the timing of the Fed’s first interest rate cut. But as it stands today, this has all the makings of a photo finish…

Will the U.S. consumer be able to hold out until the Fed lowers interest rates, taking pressure off nosebleed credit card interest rates and balances, as well as squeezed household budgets?

Or will more sticky inflation data mean the Fed doesn’t cut rates anytime soon, which causes consumers to tap out and stop spending later this year, dashing hopes of a soft landing?

Based on this week’s inflation data, it’s looking neck-and-neck.

We’ll keep you updated on all these stories here in the Digest.

Have a good evening,

Jeff Remsburg

More From InvestorPlace

• The #1 AI Investment Might Be This Company You’ve Never Heard Of
• Musk’s “Project Omega” May Be Set to Mint New Millionaires. Here’s How to Get In.

The post Another Hot Inflation Print Weighs on the Market appeared first on InvestorPlace.

This sets a positive tone for the 2024 presidential election as Biden gears up to challenge Donald Trump. For investors, this blue momentum means the classic question: What are the best stocks to buy for a potential Biden victory?

Stocks to Buy for the Next Blue Wave

Even before this week’s special election victories, macroeconomic conditions have been increasingly shifting in Biden’s favor. The S&P 500 has been making notable progress. One week ago, it reached 500 points, marking an important day in financial market history. That’s good news for investors seeking stocks to buy and for sitting presidents seeking reelection. As my colleague Shrey Dua notes, the S&P 500 has correctly determined the winner “87% of the time in the past 22 elections.” In an analysis of why the current stock market predicts a Biden victory, he reported:

“Biden is currently in a pretty good spot. Inflation is down, the labor market is strong and fears of an impending recession continue to dwindle by the day. With interest rates set to ease later in the year, prospects of a “soft landing” — that is, an economic outcome where inflation eases without spiraling the country into a recession — have never been better.”

I’ve already written about the best stocks to buy for a second Biden term. But the truth is there are plenty of companies that stand to benefit if our current president defeats Trump in November. Let’s take a look at a few more stocks that are in an excellent position to benefit.

Clearwater Energy (CWEN)

It’s well established that Democrats favor a clean energy transition. While plenty of firms in the space would benefit from four more years of Biden’s pro-climate agenda, Clearway Energy (NYSE:CWEN) is a great pick for any green boom. It offers investors exposure to many booming clean energy markets, including solar and wind. Muslim Farooque notes that it boasts a “substantial footprint of over 5,500 net megawatts (MW) of wind and solar facilities nationwide and 2,500 net MW of natural gas generation plants.”

That’s enough to continue rising to the top of its sector if the White House continues its trend of funding clean energy infrastructure and development. Additionally, CWEN stock has struggled this month, making it a tempting buy for investors looking to profit as blue wave momentum continues.

Stocks to Buy: Palantir Technologies (PLTR)

We may not associate Democrats with geopolitical turmoil. But there’s no denying that during Biden’s time in office, the defense sector has thrived amid the conflicts between Russia and Ukraine and Israel and Palestine. Neither one is likely to subside anytime soon, though, and one company has a unique edge. Palantir Technologies (NYSE:PLTR) operates in the tech space but has a history of procuring lucrative defense contracts from the U.S. Department of Defense. Thanks to the artificial intelligence (AI) boom, it has enjoyed a year of steady growth but still trades at less than $25 per share.

More recently, the Biden administration announced plans for an executive order to curb “the ability of foreign governments to access sensitive personal data on Americans that could jeopardize national security.” If this focus on data protection continues, Palantir would be in an excellent position to benefit, as its Foundry platform offers data protection and governance services.

Taiwan Semiconductor Manufacturing Company (TSM)

Another point of focus for the Biden administration has been semiconductor production. Part of the historic CHIPS Act included a $5 billion investment in semiconductor research and development. But this focus has included trying to bring leading companies in the space to U.S. soil, such as courting Taiwan Semiconductor Manufacturing (NYSE:TSM). As long as the AI boom continues, TSM will be in an excellent position, as many leading tech companies rely heavily on it.

As InvestorPlace contributor Tyrik Torres notes, “If Biden were to win his reelection, I believe investors should expect more of the same policy incentives to entice contract manufacturing behemoth TSMC to set up factories in the U.S.”

On the date of publication, Samuel O’Brient did not have (either directly or indirectly) any positions in the securities mentioned in this article. The opinions expressed in this article are those of the writer, subject to the InvestorPlace.com Publishing Guidelines.

Samuel O’Brient is a Reporter for InvestorPlace, where his work focuses primarily on financial markets, global economic trends, and public policy. O’Brient writes a weekly column on recent political news that investors should be following.

More From InvestorPlace

• The #1 AI Investment Might Be This Company You’ve Never Heard Of
• Musk’s “Project Omega” May Be Set to Mint New Millionaires. Here’s How to Get In.

The post 3 Stocks to Buy for the Post-Special Election Blue Wave appeared first on InvestorPlace.

*****************************

As we enter the home stretch of this earnings announcement season, I want to take a moment to reflect on just how stunning it has been.

According to FactSet, 79% of S&P 500 companies have now announced quarterly results, and 75% of these companies exceeded analysts’ earnings expectations. The S&P 500 is now anticipated to achieve fourth-quarter earnings growth of 3.2%, up from 2.9% last week and previous expectations for a 1.4% decline in the final week of January.

These positive results have continued to drive all of the major indices higher, with the S&P 500 breaking through 5,000 for the first time ever last Friday.

However, earnings season took a back seat this week as investors shifted their attention to the latest inflation reports and January U.S. sales results.

All three of these reports are critical factors in the Federal Reserve’s decision-making process on when to begin cutting rates. So, in today’s Market 360, let’s make sense of the latest economic data reports. I’ll also share when I think the Fed will cut rates and how to position your portfolio while Wall Street waits for answers.

Digging into the Numbers

Consumer Price Index (CPI)

The Consumer Price Index (CPI) reading for January was released first thing Tuesday morning – and the data showed that inflation continues to cool, though not as quickly as economists had hoped. Headline CPI rose 0.3% in January and was up 3.1% in the past 12 months. That was higher than economists’ expectations for headline CPI to rise 0.2% month-over-month and for a 2.9% annual pace. However, it’s still down from December’s 3.4% annual pace.

Core CPI, which excludes food and energy, increased 0.4% in January and was up 3.9% in the past 12 months. This was also a little hotter than forecasts for a 3.7% annual pace and a 0.3% month-to-month rate. The annual pace of core inflation remained in line with December’s 3.9%.

Taking a closer look at the details…

• The food index increased 0.4% (“food at home” was up 0.4%, while “food away from home” rose 0.5%).
• The energy index fell 0.9% over the month thanks largely to a decline in gasoline prices.
• The index for used cars and trucks and the index for apparel both fell over the month.

But the big bugaboo with the CPI continues to be Owners’ Equivalent Rent (OER), which accounts for two-thirds of the CPI. OER rose 0.6% in January, which compares to the previous two months’ rise of 0.4%, and is now up 6% in the last 12 months. So, unfortunately, high shelter costs are still pushing the CPI higher.

While both headline and core CPI came in slightly above expectations, this was still a positive CPI report. However, the markets weren’t happy with the numbers, causing a sharp selloff in the market: The S&P 500 and Dow ended the day 1.4% lower, while the NASDAQ fell 1.8%.

U.S. January Retail Sales

The January retail sales report was released on Tuesday – and it was weak across the board.

The Commerce Department announced that retail sales fell 0.8% in January, which was substantially lower than economists’ expectation for a 0.2% decline. This month-over-month decline marks the largest fall since March 2023.

Out of the 13 categories noted in the report, nine saw decreases from a month ago. Digging a little deeper into the details…

• Leading the decline was building materials, falling 4.1%.
• Sales at miscellaneous stores dropped 3%.
• Gas station sales fell 1.7%.
• Sales at furniture and home stores rose 1.5% and spending at bars and restaurants increased 0.7%.

Overall, this report was just really disappointing. I should also add that the Commerce Department revised the December retail sales numbers from a 0.6% gain to a 0.4% gain.

Clearly, consumers spent too much during the holidays.

While this was a disastrous report, I don’t want you to let these results bother you. It is important to note that this is only the second retail sales decline in the past 10 months. But either way, this disastrous report is just going to make the Fed consider cutting rates sooner rather than later.

Producer Price Index (PPI)

This morning, the Labor Department reported a rather disappointing Producer Price Index (PPI) for January that was higher than economists’ expectations.

Now, the PPI is important because it measures the price of goods at the wholesale level. The PPI tells us what producers are paying for goods and services before they reach consumers. It’s considered a good leading indicator of inflation, so the markets were keen to get the report.

So, let’s dig into the numbers…

• PPI rose 0.3% in January and 0.9% in the past 12 months.
• Core PPI, excluding food, energy and trade margins, surged 0.6% in January and rose 2.6% in the past 12 months.
• Excludes food and energy, PPI rose 0.3% in January.
• Wholesale food and energy prices decreased 0.3% and 1.7%, respectively, in January.

The real problem with the wholesale inflation continues to be wholesale service costs, which rose 0.6% in January and is the largest monthly increase in the past 12 months (since January 2023). But the bright spot remains wholesale goods costs, which declined 0.2% in January and was the fourth straight monthly decline.

While this report came in hotter than expected, I do want you to know next month it should fall quite a bit because we’re cutting off a big increase from a year ago.  What’s also clear is that the U.S. continues to import deflation from China.

China’s National Bureau of Statistics announced that consumer prices declined -0.8% in January, which is the biggest monthly drop since September 2009. Furthermore, wholesale prices based on the Chinese producer price index, plunged -2.5% in January.

And since the U.S. is importing this deflation from China, the Fed has to be careful because global deflation is spreading.

Reading Between the Lines

So, the big question for the market is: Will the Federal Reserve cut key interest rates on May 1 or June?

Based on the data from this week, I would say that June is more likely, but it is really dependent on market rates. Currently, the 10-year Treasury yield stands at about 4.29%, well below the federal funds rate of 5.25% – 5.50%. So, the Fed is still out of sync with market rates.

I should also add that Bloomberg reported this week that many economists are starting to think that the Fed is keeping monetary policy too tight. This is based on a poll from the National Association of Business Economics where 21% of the respondents believe that the Fed’s current monetary stance is “too restrictive,” the highest dissatisfaction since 2011.

Personally, I would like to see them cut sooner than June. According to the Fed’s preferred indicator, the Personal Consumption Expenditures (PCE) index, inflation is already within its target range over the last seven months. As each month passes, they’re cutting off a higher number and tacking on a lower number. So, they’re going to be at the Fed’s 2% annual target rate in June.

Until we get more clarity from the Fed, your best bet for profits is in fundamentally superior stocks. Although Wall Street was distracted by the big economic reports this week, we remain in a fundamentally focused environment. In other words, investors are still chasing companies that are topping analysts’ earnings and sales estimates… like my Growth Investor stocks.

How to Position to Profit

Case in point: Reliance Steel & Aluminum Co. (RS), a leading metals company. It primarily offers metal processing services and distributes more than 100,000 metal products around the world.

It announced its fourth-quarter earnings results on Thursday, February 15. The company reported earnings of $4.73 per share and sales of $3.34 billion. Analysts expected earnings of $3.92 per share on $3.3 billion in revenue, so RS posted a 20.7% earnings surprise and a slight sales surprise.

For fiscal year 2023, the company achieved earnings of $22.62 per share and sales of $14.81 billion, topping expectations for earnings of $21.78 per share and sales of $14.78 billion.

RS soared more than 15% higher on Thursday morning in the wake of the better-than-expected results to a new 52-week high and then notched another 52-week high this morning.

I recommended RS back in April 2022 in Growth Investor, and the stock is now up about 66% – outpacing the S&P 500’s 16.6% gain during the same time period.

I should add that the company holds an A-rating in Dividend Grader and a B-rating in Portfolio Grader, giving RS the one-two punch of income and growth.

So, if you want to position your portfolio for profits, then focus on the ones that post strong earnings and sales – clearly, Wall Street still is, too.

Now, if you’re not sure where to look, then consider my Growth Investor stocks, as these stocks fit the bill. RS isn’t the only Growth Investor stock to report strong results; the vast majority of my Growth Investor stocks continue to post better-than-expected results and rally in the wake of their earnings beats.

So, join me today to gain full access to my Growth Investor Buy Lists, as well as all my Monthly Issues, Weekly Updates, Special Market Podcasts and Special Reports.

Click here to become a member now.

(Already a Growth Investor subscriber? Click here to log in to the members-only website now.)

Sincerely,

Louis Navellier

Editor, Market 360

More From InvestorPlace

• ChatGPT IPO Could Shock the World, Make This Move Before the Announcement
• Musk’s “Project Omega” May Be Set to Mint New Millionaires. Here’s How to Get In.

The post The Latest Inflation Data Is Out – Here’s What It Could Mean for the Federal Reserve appeared first on InvestorPlace.

The PPI, which measures prices received by producers of U.S. goods and services, increased 0.3% in the first month of the year. This marks the largest jump since August 2023. Economists had expected an increase of 0.1%, following the PPI’s 0.2% decrease in December.

Excluding the volatile Food and Energy categories, “core” PPI increased 0.5%, compared again to 0.1% expected inflation. Excluding food, energy and trade services, the PPI rose 0.6%, per CNBC, the “biggest one-month advance” since January of last year.

Today’s PPI comes as something of a confirmation of Tuesday’s Consumer Price Index (CPI) report, which also showed higher-than-expected inflation. Indeed, the CPI — which measures the prices paid by consumers — came out to an annual inflation rate of 3.1%. That was higher than the forecast for 2.9%. Additionally, the core CPI rose by 3.9% year-over-year (YOY), above forecasts for 3.4%.

What Do the Red-Hot Inflation Reports Mean for the Stock Market?

With both the CPI and PPI reading hotter than expected, the bears are back on Wall Street. Indeed, equity markets tumbled Tuesday following the CPI print and are on track to do the same Friday given the PPI.

It seems investors are losing faith that the Federal Reserve will cut rates before the second half of the year as a result of mounting evidence that inflation isn’t going down quite as fast as previously thought.

“PPI came in this morning above expectations, proving once again that the inflation battles is not close to over.  Rate Cut expectations have taken a nosedive while yields have ripped higher,” noted Alex McGrath, Chief Investment Officer for NorthEnd Private Wealth.

Higher interest rates tend to impede economic growth and tend to encourage higher unemployment and reduced spending. As such, Wall Street has been anxiously awaiting rate cuts this year.

Fed Chair Jerome Powell suggested that three rate cuts were in store this year. However, at the January policy meeting, Powell told reporters that Fed officials would like to see more “good data” showing that inflation is coming down before opting to lower the benchmark rate. Unfortunately, it’s unlikely that this week’s inflation reports will be considered “good data.”

According to the CME FedWatch Tool, interest rate traders are pricing in a nearly 90% chance that the Fed will hold rates steady at the March policy meeting. This is a sharp reversal from early January, when traders priced in a more than 70% chance of a March rate cut.

On the date of publication, Shrey Dua did not hold (either directly or indirectly) any positions in the securities mentioned in this article. The opinions expressed in this article are those of the writer, subject to the InvestorPlace.com Publishing Guidelines.

With degrees in economics and journalism, Shrey Dua leverages his ample experience in media and reporting to contribute well-informed articles covering everything from financial regulation and the electric vehicle industry to the housing market and monetary policy. Shrey’s articles have featured in the likes of Morning Brew, Real Clear Markets, the Downline Podcast, and more.

More From InvestorPlace

• ChatGPT IPO Could Shock the World, Make This Move Before the Announcement
• Musk’s “Project Omega” May Be Set to Mint New Millionaires. Here’s How to Get In.

The post Inflation Alert: Higher Wholesale Prices Cause Stock Market Scare appeared first on InvestorPlace.

Investors often look for trends that gain a lot of momentum and pick equities that are capitalizing on those trends. Many cloud computing stocks have outperformed the market and delivered high revenue growth. Not every cloud computing company is profitable, but many of the unprofitable ones are narrowing their losses. Investors looking for hidden-gem cloud computing stocks may want to consider these three picks.

ServiceNow (NOW)

ServiceNow (NYSE:NOW) is an information technology company that helps businesses increase their productivity and stay safe from cyber attacks. The company offers artificial intelligence (AI), generative AI, chatbots and other resources to help corporations increase their capabilities and save time. All of the company’s products run on the Now Platform.

Many customers are happy with ServiceNow’s offerings based on the company’s 99% renewal rate. Most clients are raising their annual contract values, including over 1,800 contracts that generate above $1 million in annual recurring revenue. Subscriptions are a major force in the company’s business model, and that segment experienced 25.5% year-over-year (YOY) revenue growth in the fourth quarter of 2023. 

The company closed out the year by raising its 2024 subscription revenues and has $8.6 billion in remaining performance obligations. ServiceNow Chairman and CEO Bill McDermott mentioned that generative AI is fueling the company’s revenue growth. If the trend continues, ServiceNow looks poised to deliver meaningful appreciation in the years to come, making it one of the top cloud computing stocks investors should pay attention to.

Datadog (DDOG)

Datadog (NASDAQ:DDOG) makes it easier for businesses to stay on top of their cloud infrastructure and stay protected from hackers. This growth stock has outpaced the market with a 57% gain over the past year. The equity is also up by 259% over the past five years.

Datadog also just delivered another successful quarter that featured 25% YOY revenue growth. GAAP net income per diluted share came in at six cents.

Like many cybersecurity and cloud corporations, Datadog is likely to experience significant profit margin expansion once the company pulls together a few profitable quarters. This development would strengthen the company’s valuation. Long-term investors can accumulate shares at these price levels before net earnings grow at a fast rate. 

Datadog continues to innovate its software and break down silos. These initiatives will increase retention rates and make the platform more enticing for prospects who are on the fence. Datadog’s November 2023 report mentions that cloud spend is still in its early stages as a percentage of total information technology spending, giving this company room to grow in the sector.

Cloudflare (NET)

Cloudflare (NYSE:NET) is a cloud cybersecurity and content delivery network services company that runs in the background for many websites. The company has over 189,000 paying customers including more than 30% of the Fortune 1,000.

Cloudflare closed out the fourth quarter in 2023 by reporting 32% YOY revenue growth. Cloudflare signed its largest customer and obtained its largest renewal agreement in the same quarter. Demand is still strong for Cloudflare’s services, and the company’s annual recurring revenue model has been normalizing high revenue growth.

According to the company, it blocks 182 billion cyber threats for its clients each day. The firm also has 48% of its revenue coming from outside of the United States. For many corporations, international segments offer more growth than domestic markets. Cloudflare’s evenly split exposure in both markets can lead to meaningful revenue growth in the years to come, putting it center stage among its fellow cloud computing stocks.

On this date of publication, Marc Guberti held long positions in NET and NOW. The opinions expressed in this article are those of the writer, subject to the InvestorPlace.com Publishing Guidelines.

Marc Guberti is a finance freelance writer at InvestorPlace.com who hosts the Breakthrough Success Podcast. He has contributed to several publications, including the U.S. News & World Report, Benzinga, and Joy Wallet.

More From InvestorPlace

• The #1 AI Investment Might Be This Company You’ve Never Heard Of
• Musk’s “Project Omega” May Be Set to Mint New Millionaires. Here’s How to Get In.

The post 3 Hidden-Gem Cloud Computing Stocks Ready to Ride a Massive Market Wave appeared first on InvestorPlace.

Tiger Global operates as a concentrated long/short fund. As of Dec. 31, 20 it had a 13F assets under management (AUM) of $14.05 billion. Its top 10 positions make up 71.59% of its 13F portfolio, while it has an average holding period of 11.36 quarters, or 2.84 years.

Unfortunately for Tiger Global, the fund sold out of all of its 38,850 shares of Coinbase (NASDAQ:COIN) during the fourth quarter. Coinbase recently reported its fourth-quarter earnings, propelling its year-to-date return to about 20%. Tiger Global first bought shares of COIN stock in Q2 of 2021.

Tiger Global Dumps COIN Stock Position

During the fourth quarter, Coinbase reported its first quarterly profit in two years, or since Q4 of 2021. Revenue tallied in at $953.8 million, up by 51% year-over-year and beating the analyst estimate for $826 million by a significant 15.47%. Diluted earnings per share (EPS) was $1.04, up from a diluted EPS loss of $2.46 a year ago and beating the analyst estimate for 2 cents. These strong results were led by a resurgence of interest and price in Bitcoin (BTC-USD) and Ethereum (ETH-USD).

“All told, Coinbase is a fundamentally stronger company today than a year ago, and we are in a
strong financial position to capitalize on the opportunities ahead,” said Coinbase in its Q4 shareholder letter.

Wall Street analysts were impressed with the numbers too. Wedbush raised its price target to $200 from $180, while Needham raised its target to $220 from $180. CFRA raised its target to $177, adding that the strong price action of cryptocurrencies should offset any potential regulatory risks in the near term. The research firm also noted that the Bitcoin halving event in April could be a potential catalyst for COIN stock.

On the date of publication, Eddie Pan did not hold (either directly or indirectly) any positions in the securities mentioned in this article. The opinions expressed in this article are those of the writer, subject to the InvestorPlace.com Publishing Guidelines.  

Eddie Pan specializes in institutional investments and insider activity. He writes for InvestorPlace’s Today’s Market team, which centers on the latest news involving popular stocks.

More From InvestorPlace

• ChatGPT IPO Could Shock the World, Make This Move Before the Announcement
• Musk’s “Project Omega” May Be Set to Mint New Millionaires. Here’s How to Get In.

The post Tiger Global Dumped Its Stake in High-Flying Coinbase (COIN) Stock appeared first on InvestorPlace.

(And no, I’m not talking about any backdoor deals going down in Washington, D.C.)

I’m talking about a $7 trillion plan to enable AI’s global takeover.    

Maybe you think of AI as some passing fad, even some cool new technology. And if so, you’re not alone. Most don’t yet view AI as a technological paradigm shift that will have a profound impact on our global society…

Like driving millions of people out of work… while minting small fortunes for others. 

But we’re very confident that future is coming. 

And thanks to the recently announced plan being put together by Sam Altman, that future is likely coming very soon. 

AI: Exponential Progress at Lightning Speed

By now, you’ve probably at least taken ChatGPT for a test drive. Maybe you’re one of the tens of millions who use the bot each day, getting help with work, planning trips, cooking new foods – you name it.

That very powerful AI chatbot was made by OpenAI, arguably the most important company in the world right now. The firm is widely regarded as the leader in artificial intelligence innovation. And it’s constantly on the cutting edge of the latest-and-greatest new AI products. 

In fact, just last night, OpenAI debuted a new AI tool called Sora, which turns user text prompts into videos. We think this tool could fundamentally change how the world produces video content. And considering that we live in a video-dominated society, that’s a really big deal. 

In any event, it’s clear to us that OpenAI is the leader of the AI Revolution. 

By extension, its CEO, Sam Altman, is considered the face of this revolution. Many have dubbed him the “Steve Jobs of AI.” 

And right now, Altman is quietly architecting a plan to accelerate artificial intelligence to new heights. 

He is reportedly in talks with major governments, chipmakers, and investors – including the U.S. government, Taiwan Semiconductor (the world’s largest chipmaker) and Softbank (the world’s largest tech investor) – to form an AI “supergroup.” 

Altman’s goal? To raise $7 trillion – more than 10% of the world’s GDP – to build the infrastructure necessary to facilitate the global takeover of next-gen AI technologies. 

The Final Word

News of these efforts broke last week. 

And this morning, new reports emerged that Altman is seeking the U.S. government’s “stamp of approval” for this plan. 

Things are moving fast here – so much so that millions of Americans will likely be blindsided. 

I truly believe that Altman’s ambitions will change the world more profoundly over the next few years than anything else has over the past 100 years. 

And that means it will create enormous opportunities…. and crises. 

Whether this change is an opportunity or crisis for you personally will depend on what you do in the coming days. 

See; for the past two years, my team and I have been following Sam Altman, OpenAI, and the whole AI Boom very closely. 

During that time, we’ve picked up on some clues as to who Altman & Co. might use to help facilitate this $7 trillion AI Endgame plan. 

And that’s helped us to construct a portfolio of the best stocks to buy to benefit from this AI Endgame. 

According to our research, these stocks have the best potential to get investors on the right side of one of the biggest shifts humanity has ever seen.

Chances like these only come around once in a while. 

Don’t let it pass by – or, worse yet, blindside you. Get positioned for this boom.

On the date of publication, Luke Lango did not have (either directly or indirectly) any positions in the securities mentioned in this article.

P.S. You can stay up to speed with Luke’s latest market analysis by reading our Daily Notes! Check out the latest issue on your Innovation Investor or Early Stage Investor subscriber site.

More From InvestorPlace

• ChatGPT IPO Could Shock the World, Make This Move Before the Announcement
• Musk’s “Project Omega” May Be Set to Mint New Millionaires. Here’s How to Get In.

The post New Tool Underscores How Fast the AI Boom Is Unfolding appeared first on InvestorPlace.

With that said it’s easy to then see why quantum computing is so compelling. For one, it promises to increase the speed of progress in fields such as artificial intelligence.

The field is forecast to grow rapidly throughout the remainder of this decade. One report puts that pace of growth at more than 32% annually. High-upside equities in this emerging sector clearly have the potential to produce strong returns for investors.

IonQ (IONQ)

One thing continues to set IonQ (NYSE:IONQ) apart from all other companies in the quantum computing space. It is the only company whose quantum systems are available on each of the big three cloud platforms. That is a very strong reason to believe that the stock will rise higher and meet the target prices analysts have assigned it.

Ionq boosts the world’s most powerful trapped ion quantum computer. It recently met a milestone by reaching 35 algorithmic qubits. What’s important to understand about that is two-fold. First, IonQ reached that milestone a year ahead of schedule. In addition, that will make its IonQ Forte Computer that much stronger for applications such as Quantum machine learning.

The field of quantum computing is rife with dense technical jargon that I readily admit I do not understand. However, what’s easy to understand is again that companies like IonQ have the ability to speed up the development of artificial intelligence. That’s hugely valuable and worth investing in.

Rigetti Computing (RGTI)

Look at the fundamentals of Rigetti Computing (NASDAQ:RGTI) and its stock doesn’t look very appealing at all.

The company managed to record $3.1 million in sales requiring $19.1 million in operating expenses, leading to a net loss of $22.2 million. It’s not that Rigetti Computing is particularly bad in that regard relative to other quantum computing firms. Profitability just isn’t there yet. It’s all about the promise of each of the firms and their ability to develop Quantum computing that has real-world applications.

The company is steady in that it has established strong connections within the public sector. It Inked an Indefinite Delivery Indefinite Quantity contract with the Air Force. That contract will help to smooth its operations.

What’s unique about Rigetti Computing is that it is  using a hybrid approach in the quantum computing world. The company helped pioneer the architecture that bridges classical computing and quantum computing. Further, the company’s cloud approach allows anybody to access its computers remotely.

D-Wave Quantum (QBTS)

D-Wave Quantum (NYSE:QBTS) is certainly a high-potential stock in the sector with the ability to multiply in price severalfold. Like Rigetti computing, D-Wave Quantum is focused on a hybrid approach intended to bridge classical and quantum computing.

The company is focused on something referred to as quantum annealing. It is one of two dominant architectures in the quantum computing world, the other being gate models. Those interested in learning more about the differences can check out this article. It remains unclear which approach will prevail but  based on some reading it seems that gate models have the early advantage. 

The major hardware companies that now have commercially available quantum computers chose that route. For now, experts suggest that it’s still too early to tell. They recommend that companies that are experimenting with quantum computing should experiment with both types. There are certain advantages to quantum annealing and that makes d-wave quantum interesting.

On the date of publication, Alex Sirois did not have (either directly or indirectly) any positions in the securities mentioned in this article. The opinions expressed in this article are those of the writer, subject to the InvestorPlace.com Publishing Guidelines.

Alex Sirois is a freelance contributor to InvestorPlace whose personal stock investing style is focused on long-term, buy-and-hold, wealth-building stock picks. Having worked in several industries from e-commerce to translation to education and utilizing his MBA from George Washington University, he brings a diverse set of skills through which he filters his writing.

More From InvestorPlace

• The #1 AI Investment Might Be This Company You’ve Never Heard Of
• Musk’s “Project Omega” May Be Set to Mint New Millionaires. Here’s How to Get In.

The post 3 High-Potential Quantum Computing Stocks With Huge Upside appeared first on InvestorPlace.

In her search for bargains, Wood recently added to some of her holdings. Despite short-term challenges, the following three Cathie Wood stocks likely offer solid long-term investment opportunities.

Tesla (TSLA)

The widely followed fund manager maintains her optimistic outlook on Tesla (NASDAQ:TSLA), despite the recent TSLA stock price decline. This conviction mainly stems from two key factors: the anticipated acceleration of global electric vehicle (EV) adoption and Tesla’s burgeoning artificial intelligence (AI) capabilities. 

Yet, Tesla’s Q4 2023 results fell short of expectations, cautioning for lower vehicle volume growth in 2024. Revenue increased 3% year-over-year (YOY) to $25.17 billion. Non-GAAP net income came in at $2.49 billion, or 71 cents in earnings per share (EPS).

Nonetheless, Cathie Wood still emphasizes the broader narrative of global EV market expansion. She contends that temporary production hurdles and volume growth declines represent a cyclical trough rather than a fundamental shift in the company’s trajectory.

Currently, Tesla is focusing on cost reduction with an aim to improve competitiveness against rising Chinese EV players. According to Wood, this approach could pave the way for future margin improvement and accelerated growth if Tesla’s autonomous taxi networks materialize. This could potentially happen within the next two years.

TSLA stock has plunged 25% YTD, while shares are trading at a valuation of 57.5 times forward earnings and 6.8 times trailing sales. The 12-month median price forecast for TSLA shares is at $223, suggesting potential 20% upside from current levels.

CRISPR Therapeutics (CRSP)

Switzerland-based CRISPR Therapeutics (NASDAQ:CRSP) stands as a potentially compelling opportunity among Cathie Wood stocks. Investors are excited that its technology to alter DNA sequences could lead to therapeutic advancements.

Management announced Q3 2023 results in November. Net loss stood at $112 million, compared to a net loss of $174.5 million in the prior-year quarter. Cash and equivalents ended the period at a robust $1.74 billion.

CRISPR recently achieved the first FDA approval for its gene-editing therapy, Casgevy, in treating sickle cell disease (SCD) and beta thalassemia. This milestone could potentially unlock a multi-billion dollar revenue stream for the company. With roughly 100,000 patients suffering with SCD in the U.S. alone, the total addressable market for Casgevy is estimated at $70 billion. 

However, the initial market reaction was a sell-off in CRSP stock December. Some analysts expressed skepticism around widespread adoption, primarily due to the anticipated high cost of treatment. But shares have since recovered significantly, reflecting long-term investor confidence in this revolutionary therapy.

CRISPR stock has returned around 15% YTD and is trading at 35.5 times sales. The average analyst price target for CRSP shares is $79.

Unity Software (U)

Investors in Unity Software (NYSE:U), the video game software developer with a platform to monetize interactive content, have been navigating a complex set of developments. One key challenge was the fallout from new strict rules on video games in China. 

Operational challenges in 2023 forced Unity management to implement a revised pricing model. But not all developers on the platform were happy. Nonetheless, Cathie Wood’s substantial purchase in Unity stock shows her confidence in the metaverse and virtual reality (VR) space. Such a growth in immersive experiences could further the demand for gaming platforms.

Unity stock has declined 19% YTD, and shares are trading at 6.3 times trailing sales. The 12-month median price forecast for U shares is at $36 , signaling roughly 10% upside.

On the date of publication, Tezcan Gecgil did not have (either directly or indirectly) any positions in the securities mentioned in this article. The opinions expressed in this article are those of the writer, subject to the InvestorPlace.com Publishing Guidelines.

Tezcan Gecgil, PhD, began contributing to InvestorPlace in 2018. She brings over 20 years of experience in the U.S. and U.K. and has also completed all 3 levels of the Chartered Market Technician (CMT) examination. Publicly, she has contributed to investing.com and the U.K. website of The Motley Fool.

More From InvestorPlace

• ChatGPT IPO Could Shock the World, Make This Move Before the Announcement
• Musk’s “Project Omega” May Be Set to Mint New Millionaires. Here’s How to Get In.

The post 3 Stocks That Cathie Wood Is Loving Now: February 2024 appeared first on InvestorPlace.

In a recent tweet, AMC’s CEO Adam Aron pointed to the company’s upcoming earnings call as being worth listening to, as he has “much to say” about what’s going on at the cinema giant. This fourth-quarter earnings report should provide some color on the company’s progress in terms of its operations and balance sheet, or lack thereof. At this point, most investors want to see some sort of fundamental improvement before diving deeper into AMC, and that’s understandable.

Let’s dive into what could be announced in this coming report and what investors may want to pay attention to as we near the end of February.

Where Is AMC Stock Headed Post-Earnings?

It’s clear that the market has continued to remain relatively resolute that meme stocks such as AMC aren’t likely to see the kind of short squeezes and short-term moves many traders grew accustomed to during the previous “free money era.” Indeed, the fact that AMC stock has made a series of new lows to kick off 2024 has positioned the stock very bearishly in this regard. Most bulls have been pushed out of the stock (forcibly or otherwise), and while fresh capital could pour into this name on a big move, we’d have to see some catalyst to drive such a surge.

Thus, investors may want to consider Aron’s recent comments intriguing. If a big announcement follows stronger-than-expected earnings, there’s always the potential for a pop. And given the amount of speculative capital that appears to be flowing into other areas of the economy like crypto, speculators who haven’t been completely wiped out from AMC’s recent decline and have some dry powder may be looking to put it to work in this name following earnings.

That said, it’s all speculation right now with regards to what the company could announce, if anything. Adam Aron’s recent comments suggest he has “much to say,” but not about what, or if anything major will be announced. Reading too far into this comment could be detrimental.

That said, AMC will certainly be a stock I’ll be following closely in the coming weeks. If anything big is reported, there will undoubtedly be a move one way or another, and I’ll be sure to cover that.

On the date of publication, Chris MacDonald did not have (either directly or indirectly) any positions in the securities mentioned in this article. The opinions expressed in this article are those of the writer, subject to the InvestorPlace.com Publishing Guidelines.

Chris MacDonald’s love for investing led him to pursue an MBA in Finance and take on a number of management roles in corporate finance and venture capital over the past 15 years. His experience as a financial analyst in the past, coupled with his fervor for finding undervalued growth opportunities, contribute to his conservative, long-term investing perspective.

More From InvestorPlace

• The #1 AI Investment Might Be This Company You’ve Never Heard Of
• Musk’s “Project Omega” May Be Set to Mint New Millionaires. Here’s How to Get In.

The post AMC Stock: Adam Aron Teases ‘Much to Say’ Ahead of Feb. 28 appeared first on InvestorPlace.

The question many investors have heading into this print is whether or not a repeat of the company’s previous results could be on tap. Nvidia’s incredible volatility around previous earnings releases has some investors locking in their gains, using options as a way to hedge against volatility.

For existing investors heading into this print, outsized volatility could go either way. Unless investors see another guidance raise, a massive beat, and bullish commentary in the earnings call, it’s possible we could see NVDA stock dip. Thus, I understand the sentiment here.

But given Nvidia’s recent trajectory, its previous price action around earnings, and overall sentiment around AI-related companies, it’s also possible we could see Nvidia surge in the coming week.

Let’s dive into what investors should look for heading into this print.

Will NVDA Stock Surge or Plummet Following Earnings Next Week

One thing’s for certain heading into Nvidia’s Feb. 21 report — investors aren’t betting on the stock standing still.

According to current options pricing, investors are betting on a swing of around 11% from where shares trade right now. This swing could happen in either direction, with big money managers clearly hedging positions (on the upside and downside) ahead of this report.

This hedging activity suggests one of the largest expected moves in the company’s recent earnings reports and could mean we’re set up for fireworks over the coming trading days. Heading into this report, it will also be interesting to see if NVDA stock continues to hover around current levels or moves upward or downward in anticipation of earnings.

Notably, the expected move we’re going to see in NVDA stock next week is about double the stock’s average shift post-earnings. And given where shares trade now, I can see why that would be the case.

Personally, I think Nvidia’s current valuation factors in plenty of exuberance, which could mean that immediate downside could be more likely than a potential surge. However, I’m not going to rule anything out, and the market doesn’t seem to have made up its mind yet. Options are a risky game to begin with, so those looking to play Nvidia with naked options may be playing with fire as well — this is a stock that’s proven its worth as a buy-and-hold position but can be very volatile and perhaps not as profitable as a trading vehicle over the longer-term.

If I owned Nvidia stock here, I’d be open to hedging with some puts. If I didn’t own this stock but wanted some exposure to potential gains, owning a small position via calls may make sense. And for those looking to capture the spread of such a high implied move, a straddle may be the best option. But I’d gather for most cautious long-term investors, staying away from any sort of trading activity around this print may be the most profitable move.

On the date of publication, Chris MacDonald did not have (either directly or indirectly) any positions in the securities mentioned in this article. The opinions expressed in this article are those of the writer, subject to the InvestorPlace.com Publishing Guidelines.

Chris MacDonald’s love for investing led him to pursue an MBA in Finance and take on a number of management roles in corporate finance and venture capital over the past 15 years. His experience as a financial analyst in the past, coupled with his fervor for finding undervalued growth opportunities, contribute to his conservative, long-term investing perspective.

More From InvestorPlace

• ChatGPT IPO Could Shock the World, Make This Move Before the Announcement
• Musk’s “Project Omega” May Be Set to Mint New Millionaires. Here’s How to Get In.

The post Dear NVDA Stock Fans, Mark Your Calendars for Feb. 21 appeared first on InvestorPlace.

According to a Barron’s report, analysts at Raymond James — led by Mitch Ingles — wrote earlier on Friday that all the “good news seems already reflected in the stock price.” In addition, near-term growth for Carvana faces threats from consumers’ inability to afford cars. While the onset of the Covid-19 crisis led to an accommodative monetary policy, borrowing costs spiked sharply beginning in 2022.

With consumers still struggling from the Federal Reserve’s longstanding battle to curb inflation, Ingles cut his rating of CVNA stock to “underperform” — an equivalent to a sell — from “market perform.” The analyst also stated that investors may adopt a “wait-and-see approach, looking for clear indicators of improved sales growth.”

Compared to the market print, Ingles’ pessimism represents a bold assessment. In the past 52 weeks, CVNA stock gained almost 400%. For context, the mercurial semiconductor juggernaut Nvidia (NASDAQ:NVDA) “only” gained 235%. Sure enough, Carvana also swung up 10% on a year-to-date basis.

Still, the Raymond James report stung, which saw CVNA lose around 6% in the afternoon session.

Winning the Post-Covid Economy Is Another Story for CVNA Stock

During the first years of the Covid-19 crisis, the effectively contactless nature of Carvana’s business wasn’t the only catalyst for CVNA stock. With government officials desperate to avoid catastrophic economic damage, interest rates fell. Between November 2019 through February 2022, the finance rate on new car loans (60-month terms) fell from 5.37% to 4.52%.

However, the dilemma for CVNA stock — and for all big-ticket-item retailers — was the subsequent interest-rate spike. By the latest data from November 2023, the aforementioned finance rate skyrocketed to 8.15%. Combined with blistering inflation — which is improving but still elevated — Carvana may struggle to find viable customers.

Adding to the pressure, Carvana’s distinct “contactless” business model now becomes a liability in the post-pandemic cycle. With consumers seeking the best price possible, they may elect traditional dealerships or even go private party.

Subsequently, Raymond James’ report appears to have ignited bearish wagers against CVNA stock. In Fintel’s options flow screener — which filters exclusively for big block transactions — a high volume of sold calls materialized. At face value (assuming no integration of complex, multi-tiered strategies), sold calls represent wagers that the underlying security will not reach the listed strike price.

However, going bearish may not be easy. Per Fintel, the short interest of CVNA stock stands at nearly 40% of its float. If shares rise for whatever reason, the subsequent act of covering the short position — that is, buying back the stock — will likely spark a positive feedback loop.

Why It Matters

At the moment, analysts rate CVNA stock as a consensus hold. This assessment breaks down as one buy, nine holds and three sells, including the Raymond James rating. Overall, the price target sits at $40.33, implying almost 25% downside risk.

On the date of publication, Josh Enomoto did not have (either directly or indirectly) any positions in the securities mentioned in this article. The opinions expressed in this article are those of the writer, subject to the InvestorPlace.com Publishing Guidelines.

A former senior business analyst for Sony Electronics, Josh Enomoto has helped broker major contracts with Fortune Global 500 companies. Over the past several years, he has delivered unique, critical insights for the investment markets, as well as various other industries including legal, construction management, and healthcare. Tweet him at @EnomotoMedia.

More From InvestorPlace

• ChatGPT IPO Could Shock the World, Make This Move Before the Announcement
• Musk’s “Project Omega” May Be Set to Mint New Millionaires. Here’s How to Get In.

The post Raymond James Is Souring on Carvana (CVNA) Stock appeared first on InvestorPlace.

Most companies listed on the Dow are performing poorly. In fact, despite rising 13% in 2023, the Dow’s gains trailed those of the benchmark S&P 500 index and the technology-heavy Nasdaq index. The reason that the Dow brought up the rear is that the index has very few tech stocks, and even fewer stocks focused on the red hot area of artificial intelligence (AI).

Most of the stocks in the Dow are in old economy sectors such as oil and gas, finance, and construction. While important, those sectors aren’t driving growth in equities. Here is exit now! Three Dow stocks to sell in February 2024.

UnitedHealth Group (UNH)

Utilization rate is the problem at UnitedHealth Group (NYSE:UNH). The largest healthcare insurer’s stock fell after its recent fourth-quarter 2023 earnings print because the company reported that it is spending more on medical expenses and that’s eating into profits. As with other health insurers, a higher-than-expected utilization rate of medical services by seniors enrolled in U.S. Medicare Advantage plans has become an issue for UnitedHealth. And that news has UNH stock down 4% on the year.

To be fair, UnitedHealth did manage to beat Wall Street forecasts on the top and bottom lines with its Q4 2023 financials. The company reported earnings per share (EPS) of $6.16 and revenue of $94.4 billion. That was better than the consensus forecast of $5.98 in EPS and sales of $92.1 billion. However, it’s not clear when UnitedHealth will get some relief from the higher-than-expected utilization rate for medical services, particularly among aging seniors, and that has soured investors and analysts on the stock.

Walgreens Boots Alliance (WBA)

It’s never good when a company cuts its dividend payment to stockholders. But when they reduce the dividend by nearly 50%, it’s really bad. Yet that’s what happened at the start of this year when pharmacy chain Walgreens Boots Alliance (NASDAQ:WBA) slashed its quarterly dividend payment by almost half. The company said that it is lowering its dividend payout to 25 cents per share from 48 cents previously, a reduction of 48%. That news sparked an immediate selloff in WBA stock.

The company said the dividend cut was being made to help “strengthen its long-term balance sheet.” But that explanation provided little comfort to shareholders. Walgreens’ dividend yield is now 4.48% based on the current share price. That’s down from its previous yield of more than 7%, which made Walgreens the highest-paying dividend stock in the Dow 30. It also marked the company’s first dividend cut in nearly 50 years. Year-to-date, WBA stock is down 16%, bringing its loss over the last 12 months to nearly 40%.

Nike (NKE)

Despite best efforts, sneaker giant Nike (NYSE:NKE) just can’t seem to get its house in order. The company continues to report a series of disappointing earnings that have kept investors far away from its stock. In 2024, Nike’s share price is flat. However, NKE stock has declined 16% over the past 12 months and is nearly 40% below the all-time high reached in November 2021. The company’s persistent troubles and poor share price performance make Nike a Dow stock to sell in February.

Just before Christmas, NKE stock fell 12% after the company reported mixed financial results and lowered its sales outlook. Nike reported EPS of $1.03 versus 85 cents that had been expected on Wall Street. Revenue totaled $13.39 billion compared to $13.43 billion that was forecast among analysts. Looking ahead, Nike said that it expects full-year revenue to grow only 1%, compared to a prior outlook of about 5% growth.

The company’s latest plan is to cut costs by $2 billion over three years, mostly through staff layoffs. But it remains to be seen how much that will help. More recently, Nike announced that it was ending its long-term sponsorship of golfer Tiger Woods, adding to the glum sentiment surrounding the stock.

On the date of publication, Joel Baglole did not have (either directly or indirectly) any positions in the securities mentioned in this article. The opinions expressed in this article are those of the writer, subject to the InvestorPlace.com Publishing Guidelines.

Joel Baglole has been a business journalist for 20 years. He spent five years as a staff reporter at The Wall Street Journal, and has also written for The Washington Post and Toronto Star newspapers, as well as financial websites such as The Motley Fool and Investopedia.

More From InvestorPlace

• ChatGPT IPO Could Shock the World, Make This Move Before the Announcement
• Musk’s “Project Omega” May Be Set to Mint New Millionaires. Here’s How to Get In.

The post Exit Now! 3 Dow Stocks to Sell in February 2024 appeared first on InvestorPlace.

In 2023, companies made a point of telling investors about their AI capabilities. In 2024, investors are being more discerning about AI. Specifically, they want to know how companies are going to use AI to increase profits.  

That narrows the list a little bit. But as the early returns show, there are still several companies to choose from. Here are three of the top tech stocks that have posted strong returns in the last 12 months. However, each has a believable AI story that is likely to propel their stocks higher in 2024.  

Palantir Technologies (PLTR)

Palantir (NYSE:PLTR) posted solid earnings in early February. The results included a 20% year-over-year (YOY) revenue increase and the fourth consecutive profitable quarter. And that growth isn’t expected to slow down anytime soon.  

PLTR stock is up 40% in 2024 and 160% in the last 12 months. So, it’s not like it needed much help from bullish earnings. And there are many analysts saying the time may come for a pullback.

From a technical standpoint, I agree. I tend to take a long-term outlook based on fundamentals. However, after each of its last two earnings reports, PLTR stock has had a pullback of around 15-20%. Will lightning strike a third time? Possibly, but it shouldn’t be something that concerns long-term investors. 

That’s because Palantir continues to silence its critics. First, it didn’t have any commercial clients. Now it has over 20 major partners including companies AWS and Google Cloud. Palantir increased its commercial revenue by 70% year-over-year and is guiding for 40% growth in its commercial sector this year.   

And the reason for that is what the company calls unprecedented demand for its artificial intelligence platform. Maintaining that demand will be the key to justifying the company’s eye-popping valuation which appears to be the next objection for the company to overcome.  

Advanced Micro Devices (AMD) 

You could easily put Nvidia (NASDAQ:NVDA) on a list of top tech stocks, but Advanced Micro Devices (NASDAQ:AMD) may be a (slightly) better option for 2024. The reason comes down to supply and demand. Nvidia simply can’t meet the insatiable demand for its AI chips.  

Meanwhile, AMD recently released its own MI100 AI chips. At launch, the company projected $2 billion in sales for the year. However, on the earnings call, CEO Lisa Siu increased the forecast to $3.5 billion, and analysts believe that may be too conservative.  

Although AMD stock is nearing the top of its current consensus price target. But the key word there is current. Analysts have been increasing their price targets since the earnings report and if the company keeps capturing market share fueled by increasing demand, it’s not hard to see the stock flirting with a $200 price target by the end of the year. As it is, AMD stock is finding solid support around $168 since the earnings report.  

CrowdStrike (CRWD) 

Cybersecurity makes this list of top tech stocks for the way it showcases both sides of the AI coin. On the one hand, artificial intelligence will create more ways for bad actors to try to breach protected information. On the other hand, companies like CrowdStrike (NASDAQ:CRWD) are using AI as part of its cybersecurity platform as an extra layer of protection. 

The question investors have to ask is how much is that worth? Revenue and earnings are growing strongly YOY. And about $3 billion of that revenue was of the recurring variety that shareholders love. But with a stock price that’s up 180% in the last 12 months and 30% so far in 2024, it’s fair to ask if all that growth is priced in. 

However, the company is getting ready to report earnings on March 5, 2024. And ahead of that report, analysts are starting to raise their price targets for CRWD strike.  

On the date of publication, Chris Markoch had a LONG position in PLTR. The opinions expressed in this article are those of the writer, subject to the InvestorPlace.com Publishing Guidelines. 

Chris Markoch is a freelance financial copywriter who has been covering the market for over five years. He has been writing for InvestorPlace since 2019.

More From InvestorPlace

• The #1 AI Investment Might Be This Company You’ve Never Heard Of
• Musk’s “Project Omega” May Be Set to Mint New Millionaires. Here’s How to Get In.

The post 3 Top Tech Stocks Poised for Continued Success in 2024 appeared first on InvestorPlace.

Today is providing a reality check for Super Micro Computer, which specializes in high-performance servers and server management solutions. Heading into the afternoon, SMCI stock is down more than 10%. Nevertheless, most analysts are bullish on the security.

As The Wall Street Journal pointed out last year, global spending on AI may exceed $301 billion by 2026. That implies a compound annual growth rate (CAGR) of 26.5%. With AI consuming significant bandwidth, data centers have to keep up. This framework inherently benefits SMCI stock.

Unsurprisingly, Bank of America analyst Ruplu Bhattacharya cited this catalyst when initiating coverage on SMCI. Bhattacharya rated SMCI stock as a “buy” and set a $1,040 price target. Specifically, the expert stated that the company “will be a beneficiary of AI-driven demand growth (>50% of revenues now tied to accelerators like GPUs).”

Still, this optimistic price tag comes amid SMCI stock’s gain of over 200% so far this year, inclusive of Friday’s selloff. Bhattacharya justifies this sentiment by stating that “the market for AI servers is much larger than is factored in Street models.” The analyst also stated that the AI server market may expand at a 50% CAGR over the next three years. That stacks up massively against the overall server market’s “5.5% CAGR over the past 17 years.”

SMCI Stock May Also Have Priced in the Good News

As CNBC points out, BofA’s price target reflects 18% upside from the midweek session’s close. According to FactSet, it’s also the highest target on Wall Street. In fact, SMCI stock “already trades far above the consensus analyst price target of $683.”

Bhattacharya isn’t intimidated by the statistics, noting that the firm has a valuable ability in constructing “server technology from the ground up,” per CNBC. Nevertheless, other experts aren’t so sure.

Wells Fargo analysts also initiated coverage of shares, stating that the AI momentum will continue for SMCI stock. However, Wells Fargo went with an “equal weight” rating, implying a neutral stance.

Moreover, evidence has also materialized that the smart money is getting nervous about Super Micro’s stratospheric run so far this year. For starters, Barchart points out that the put/call open interest ratio stands at 1.43. To be sure, this metric can be deceptive as bullish investors can generate income through sold puts. Nevertheless, the remaining open option positions tilt heavily in favor of put options.

Second, Fintel’s options flow screener — which filters exclusively for big block transactions — shows heavy volume of both bought puts and sold calls. Interestingly, many of the recent strike prices for the sold calls center around the $1,100 to $1,200 range, roughly near BofA’s upside target.

Essentially, these written call options reflect wagers that SMCI stock will not reach the listed strikes. That casts doubt on the sustainability of the rally.

Why It Matters

Interestingly, some speculators are also taking direct bets against SMCI stock. Per Fintel, the short interest for Super Micro stands at 10.58% of its float. To be sure, demand for such an aggressive trade is minimal based on the short borrow fee of only 0.31%. However, it’s something to keep in mind, especially with Nvidia due to release earnings on Feb. 21.

On the date of publication, Josh Enomoto did not hold (either directly or indirectly) any positions in the securities mentioned in this article. The opinions expressed in this article are those of the writer, subject to the InvestorPlace.com Publishing Guidelines.

A former senior business analyst for Sony Electronics, Josh Enomoto has helped broker major contracts with Fortune Global 500 companies. Over the past several years, he has delivered unique, critical insights for the investment markets, as well as various other industries including legal, construction management, and healthcare. Tweet him at @EnomotoMedia.

More From InvestorPlace

• ChatGPT IPO Could Shock the World, Make This Move Before the Announcement
• Musk’s “Project Omega” May Be Set to Mint New Millionaires. Here’s How to Get In.

The post SMCI Stock Alert: These 2 Analysts Are Weighing In on Super Micro Computer appeared first on InvestorPlace.

Recent reports indicate that inflation is gradually decreasing, employment is growing, and wages are on the rise, suggesting that the economy is in better shape than anticipated, signaling a positive trajectory for the United States. Invest in these three growth stocks now, and enjoy profits.

Crocs Inc. (CROX)

Crocs Inc. (NASDAQ:CROX) is a unique American shoe manufacturer that sells foam shoes in its signature style “clogs”. With a stock valuation of $108.37, CROX saw a growth decline YoY of -11.48%, but a promising YTD increase of 16.02%.

Financially, CROX put the company in a secure position with greens across the board in its Q3 2023 results. With revenue being listed at $1.05 billion marking a 6.15% YoY increase, CROX outperformed consensus industry estimates by 1.14%. Furthermore, net income and diluted EPS both jumped, reaching $177.02 million and $2.87, each a respective YoY growth of 4.53% and 5.51%. Revenue sprung up as Crocs continued to increase production of both new and standard product lines.

With Crocs holding a wide target audience of both youth and adults, strategic business moves have been made to ensure the sanctity of the customer split in the future. Primarily, this comes from a combination of both youth-oriented and ordinary designs being released. On the youth front, Crocs recently announced a list of IP collaborations to come in 2024, including the likes of Pokemon, SpongeBob, Naruto, and more large-name brands. With the brand recognition of these IPs, a larger youth audience is expected to be reached through the new product drops and a surge in CROX valuation.

Zscaler Inc. (ZS)

Zscaler Inc. (NASDAQ:ZS) is a global cloud security company. Its stock is already up 77.40% in the past 12 months and trades for $253.27. 

The cloud security market is expected to grow at a CAGR of 18.1% through 2029. The rising implementation of cloud computing is driving growth, making it one of the fastest-growing cybersecurity segments. 

While the market growth is already high, Zscaler is beating it. In the first quarter of its fiscal year 2024, Zscaler brought in $496.7 million in revenue, up an eye-catching 40% YoY. Management expects this growth to continue and forecasts $507 million in revenue for the second quarter of the fiscal year, which would be an increase of more than 21% YoY. Furthermore, Zscaler more than doubled its operating profit and free cash flow YoY while achieving a record free cash flow margin of 45%. Its growth and profitability are higher and better than many of its competitors. 

Moreover, in December 2023, Zscaler unveiled AI-powered analytics which aims to improve employee experience and reduce cyber risk. These features leverage cutting-edge technology to provide an optimal digital experience and comprehensive cybersecurity assessments. By integrating AI into its products, Zscaler demonstrates its commitment to providing the most efficient systems. As a tailwind, AI improvements to Zscaler’s product could boost sales and attract customers.

Hubspot Inc. (HUBS)

Hubspot Inc. (NYSE:HUBS) is a cloud-based CRM platform that helps businesses expand and grow. Its stock currently trades for $629.64 after rising 71.34% in the last 12 months. 

The global customer relationship management (CRM) market was valued at $65.59 billion in 2023, and it is expected to grow at a CAGR of 13.9% from 2024 to 2030. Hubspot currently holds a 5.10% market share in this market, making it a formidable player in the CRM industry while still leaving it with room to grow. 

Hubspot’s competitive advantages lie primarily in its integrated platform, its inbound marketing strategy, and its AI innovation. Firstly, as mobile devices proliferate, integrated mobile CRM platforms are increasingly sought after. Hubspot addresses these needs by offering a mobile app and by consolidating many features and tools into its platform, eliminating the need for multiple systems. Secondly, Hubspot’s marketing automation software sets it apart from competitors. Hubspot employs inbound marketing techniques that increase brand awareness by presenting helpful materials, a different and more modern technique compared to traditional advertising. Finally, Hubspot launched a variety of AI tools and features in September 2023, including a generative AI assistant and tools to forecast sales. 40% of enterprise customers have already used Hubspot AI features, emphasizing its impact. 

Financially, Hubspot is performing well and growing quickly. In Q4 2023, it generated $581.9 million in revenue, up 24% compared to Q4 2022. Hubspot also grew its customer base to 205,091, up 23% from the prior year. 

On the date of publication, Michael Que did not have (either directly or indirectly) any positions in the securities mentioned in this article. The opinions expressed in this article are those of the writer, subject to the InvestorPlace.com Publishing Guidelines.

The researchers contributing to this article did not hold (either directly or indirectly) any positions in the securities mentioned in this article.

Michael Que is a financial writer with extensive experience in the technology industry, with his work featured on Seeking Alpha, Benzinga and MSN Money. He is the owner of Que Capital, a research firm that combines fundamental analysis with ESG factors to pick the best sustainable long-term investments.

More From InvestorPlace

• The #1 AI Investment Might Be This Company You’ve Never Heard Of
• Musk’s “Project Omega” May Be Set to Mint New Millionaires. Here’s How to Get In.

The post The 3 Growth Stocks That Could Make Your February Unforgettable appeared first on InvestorPlace.

On the list, the first one has resilient financial stability. The second one has strategic asset acquisitions in the energy sector. Meanwhile, the third one is diversified revenue streams across multiple industries. Each company presents an edgy investment case.

Fundamentally, these companies aren’t just entities listed on the stock market; they reflect strategic foresight, operational edge, and adaptability to market shifts. The article delves into the core strengths of these small-cap stars. Learn about their growth trajectories and the potential to triple your investments by 2026.

Harte Hanks (HHS)

Harte Hanks (NASDAQ:HHS) delivers strong financial stability and liquidity. These are the fundamental strengths supporting its value-growth potential. For instance, as of Q3 2023, Harte Hanks had $13.3 million in cash, compared to $10.4 million at the end of 2022. This increase in cash reserves indicates improved liquidity.

Moreover, the company maintained a debt-free status, with no outstanding debt as of Q3. The absence of debt reduces financial risk under the Fed’s longer-term scenario and provides financial flexibility for strategic and operational needs.

The company also had $24.2 million of capacity on its credit line as of Q3. This credit facility is a backup liquidity source, allowing Harte Hanks to access additional funds. Credit availability leads to a safety net and supports the company’s ability to manage and pursue growth opportunities.

Notably, during Q3, Harte Hanks repurchased 77,227 shares at an average price of $6.35 per share, totaling $490K. This indicates management’s bullish stance on the company’s financial health and prospects. Moreover, the share repurchases will positively impact EPS over the upcoming quarters.

At the top, Harte Hanks maintains diversification across multiple segments, reduces dependency on any single source, and experiences industry-specific fluctuations. The company operates in three main segments. Customer Care accounted for 30%, Fulfillment & Logistics Services held 48%, and Marketing Services represented 22% of total revenue in Q3.

Finally, despite revenue declines in some segments, the company remains positive about growth. For example, the InsideOut acquisition contributed $2.2 million to revenue in Q3, indicating potential for inorganic growth. Overall, expansion into new verticals may continue to drive top-line growth and value expansion.

Evolution Petroleum (EPM)

At its core, Evolution Petroleum’s (NYSEAMERICAN:EPM) strategic asset acquisition and related development support value growth. In detail, Evolution Petroleum strategically acquires and develops assets. These assets have attractive risk-return profiles. As a result, they boost the company’s competitive position and breed value creation.

To begin with, the participation agreement to horizontally develop a portion of the Chaveroo oilfield in the Permian Basin and New Mexico demonstrates the strategy. In numbers, the Chaveroo oilfield offers over 80 gross and 40 net locations for horizontal development, with an estimated 700 million barrels of original oil. Fundamentally, focusing on high-potential opportunities like the Chaveroo field supports Evolution Petroleum in maximizing its economic upside. Also, this diversifies the company’s asset base to support future growth.

Moreover, Evolution Petroleum’s prudent capital allocation reflects the diversion of the majority of funds towards productive investments, such as drilling and producing oil. This approach minimizes risk and optimizes value potential by prioritizing expenditures that may generate vital returns.

Additionally, the company focuses on acquiring accretive strategic production properties that further strengthen its growth potential. Thus, by targeting assets with solid reserves, low decline rates, and attractive economics, Evolution Petroleum enhances its capability to generate predictable cash inflows.

Finally, the strategic partnership with Pedevco in the Permian Basin suggests Evolution Petroleum’s edgy approach to resource development. This implies that by leveraging the expertise and resources of its partners, the company accelerates value creation and enhances its competitive advantage in the energy market.

Overall, Evolution Petroleum’s focus on strategic asset acquisition and development may continue to drive rapid value growth through its diversified asset portfolio.

RCM Technologies (RCMT)

RCM Technologies (NASDAQ:RCMT) has top-line stability, and segmented growth supports its market valuation. Notably, RCM Technologies has revenue of $58 million for Q3 2023. It had a slight decrease of 0.2% year-over-year. Despite a slight decrease in revenue, the company delivered stable revenue streams. Structurally, revenue segmentation across different business segments, such as healthcare, engineering, energy services, life sciences, IT, and aerospace.

At the bottom line, gross profit for the period was $17.3 million, stable year-over-year. This reflects the company’s optimization efforts. On the bright side, there’s a sequential improvement in gross margin, from 22.9% in Q2 to 25.0% in Q3, demonstrating effective cost management. The operating income for Q3 ($4.3 million) was stable year-over-year ($4.8 million in Q3 2022). Notably, EPS for Q3 was $0.46 per diluted share, compared to $0.33 per diluted share in Q3 2022. Despite slight decreases in operating income, the company has improved profitability.

Behavioral health services are driving business growth. The company serves over 30 clients, representing top-line expansion potential. Despite challenges (the end of COVID-related revenue), the company proved adaptable with a strategic focus on high-value segments. On the other hand, engineering gross profit in Q3 2023 grew by 5.2% based on increased project activity. Hence, the backlog and pipeline of engineering projects are growing, highlighting solid top-line expansion potential.

Despite minor fluctuations in performance, the company holds an optimistic outlook. This is backed by projected growth in adjusted EBITDA and revenue for the upcoming quarter. Therefore, the guidance reflects the company’s strategic direction and capability to capitalize on market demand and boost valuations.

On the date of publication, Yiannis Zourmpanos did not hold (either directly or indirectly) any positions in the securities mentioned in this article. The opinions expressed in this article are those of the writer, subject to the InvestorPlace.com Publishing Guidelines.

Yiannis Zourmpanos is the founder of Yiazou Capital Research, a stock-market research platform designed to elevate the due diligence process through in-depth business analysis.

More From InvestorPlace

• ChatGPT IPO Could Shock the World, Make This Move Before the Announcement
• Musk’s “Project Omega” May Be Set to Mint New Millionaires. Here’s How to Get In.

The post 3 Small-Cap Stars With the Power to Triple Your Investment by 2026 appeared first on InvestorPlace.

Look at Tesla (NASDAQ:TSLA), for example. Since the year began, the EV giant sank from about $265 to a low of $175, all after warning that growth would be notably lower than in 2023, when sales were up 39%. CEO Elon Musk even said that Chinese rivals “will pretty much demolish most other car companies in the world” unless trade barriers are put in place,” as noted by the BBC.

We’ve even seen a scale-back of EV models from General Motors (NYSE:GM) and Ford (NYSE:F) because the demand just isn’t there. However, while Tesla is struggling, there are other EV stocks you may not want to ignore at the moment. That includes:

Li Auto (LI)

Rebounding well off recent lows, Li Auto (NASDAQ:LI) could be one of the top EV stocks of the year. Just in January, the company delivered 31,165 EVs, which is a 105.8% improvement year over year. Cumulative deliveries of LI vehicles are also up to 664,529 at the close of January, with a good deal of upside remaining.

Xiang Li, chairman and chief executive officer of Li Auto said, “2024 will be an unprecedented year of growth for us, and we will establish a portfolio of eight competitive models, including four EREVs and four BEVs, to satisfy the evolving demands of our family users. Our 2024 launches will kick off in March with the official release and commencement of deliveries of our high-tech flagship family MPV, Li MEGA, alongside the rollout of the 2024 Li L7, Li L8, and Li L9,” as noted in a company press release.

We’ll learn more about Li’s progress when the company posts financial results for the fourth quarter and full year 2023 before the U.S. market opens on Monday, Feb. 26.

XPeng (XPEV)

We can also look at XPeng (NYSE:XPEV), whose January 2024 Smart EV sales soared 58% to 8,250. The company also launched its X9 Ultra Smart Large Seven-seater MPV, delivering 2,478 units across 100+ Chinese cities. Better, the X9 Max is already dominating with 70% of all orders.

In December, the company delivered 20,115 EVs, a 78% jump year over year. For the fourth quarter of 2023, it delivered 60,158 vehicles—a 171% year-over-year jump. For all of last year, it delivered 141,601 vehicles, a year-over-year improvement of 17%.

The company expects to expand in three new markets across Europe this year. As noted by Electrek.co, “XPeng is planning to expand to markets in Germany, France and Britain in 2024. Those entries will begin with the aforementioned G9 SUV and P7 sedan, as well as the automaker’s most recent model to reach production, the G6.”

BYD (BYDDF)

For the second consecutive year, BYD (OTCMKTS:BYDDF) overtook Tesla as the world’s top selling electric automaker. Helping, the company sold about 3.02 million EVs in 2023, an improvement of about 62% year over year.

According to CNBC, “The sales comprise 1.6M battery-electric vehicles (BEVs) and approximately 1.4M plug-in hybrid electric vehicles (PHEVs). The company sold 526,409 fully electric vehicles in Q4, with EV and hybrid sales totaling 340,178 in December, including 190,754 all-electric cars, driven by aggressive end-of-year discounting.”

The company is also looking to open a plant in Mexico as part of its global push. That’s because BYD sees Mexico as a key market with big potential. 

It opened plants in Thailand and announced plans to build a production facility in Hungary. Plus, it has plans to build a plant in Brazil and is now selling EVs in Indonesia. Better, BYDDF wants to get more aggressive in the U.K., Denmark and Norway.

On the date of publication, Ian Cooper did not hold (either directly or indirectly) any positions in the securities mentioned. The opinions expressed in this article are those of the writer, subject to the InvestorPlace.com Publishing Guidelines.

Ian Cooper, a contributor to InvestorPlace.com, has been analyzing stocks and options for web-based advisories since 1999.

More From InvestorPlace

• ChatGPT IPO Could Shock the World, Make This Move Before the Announcement
• Musk’s “Project Omega” May Be Set to Mint New Millionaires. Here’s How to Get In.

The post The Next Tesla? 3 EV Stocks That Investors Shouldn’t Ignore. appeared first on InvestorPlace.