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    Earnings Insight: Three Strong Names Heading into Next Week

    By
    Editorial Staff
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    As we approach another busy earnings week, several companies are poised to report results that could lead to potential gains. Earnings season has already exceeded last year’s performance, with S&P 500 companies showing an 8.2% increase in earnings and a 5.3% rise in revenue compared to the same quarter last year. Impressively, earnings have beaten expectations by 7.5%, while revenue has outperformed by 1.7%.

    With several key players on the docket, we’ve identified stocks that have consistently surprised analysts and achieved solid post-earnings gains. These companies have historically beaten earnings expectations 75% of the time and recorded at least a 1% increase on earnings days. Among these, Nvidia stands out with an 86% success rate in surpassing earnings forecasts, alongside notable post-earnings gains. Here’s a closer look at our top picks for the upcoming week.

    Nvidia Corporation (NASDAQ: NVDA): A Strong Performer in AI Hardware

    Nvidia is set to announce its third-quarter fiscal 2025 earnings on Wednesday, November 20, 2024. The company has a remarkable track record of beating earnings expectations, doing so 86% of the time. Analysts anticipate earnings per share (EPS) of $0.69, reflecting an impressive 81.6% increase from the previous year. Given Nvidia’s pivotal role in the AI hardware sector, investors are highly anticipating its earnings report.

    JD.com, Inc. (NASDAQ: JD): E-commerce Growth Ahead

    JD.com is scheduled to release its third-quarter earnings on Friday, November 15, 2024. The company has consistently impressed investors with its earnings performance, beating estimates 83% of the time and achieving post-earnings gains of about 1.1%. Analysts are optimistic about JD.com’s growth prospects, especially in light of recent consumption stimulus measures in China. Loop Capital recently upgraded its rating on JD.com to ‘Buy’ from ‘Hold,’ citing the company’s potential to benefit from these economic policies.

    Williams-Sonoma, Inc. (NYSE: WSM): Reliable Retailer with Strong Results

    Williams-Sonoma will announce its third-quarter earnings on Thursday, November 14, 2024. The retailer boasts an impressive earnings surprise record, having beaten Wall Street expectations 88% of the time, with an average post-earnings gain of 1.4%. However, some analysts have adopted a more cautious stance ahead of the earnings release. Wedbush Securities recently moved to a ‘Neutral’ rating, citing concerns over recent trends despite the company’s previous guidance adjustments.

    In summary, as earnings week unfolds, these stocks present intriguing opportunities for investors looking to capitalize on companies that have historically exceeded expectations. From Nvidia’s dominance in AI to JD.com’s e-commerce growth and Williams-Sonoma’s reliable retail performance, these picks are worth keeping an eye on as we approach their earnings announcements.

    High-Stakes Stocks to Watch as Election Day Nears

    By
    Editorial Staff
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    0

    With the upcoming election, a few stocks are gaining momentum as traders speculate on what a potential Trump victory could mean for their valuations. Each of these companies has connections—direct or indirect—to Donald Trump, making them prime candidates for volatility as the political landscape shifts. These stocks have seen significant inflows from retail investors, spiking interest on forums like WallStreetBets, and they’re poised for more potential movement as election day approaches. Here’s a closer look at three names generating buzz.

    Trump Media & Technology Group (DJT) – Riding the Election Wave

    Trump Media, the parent company of TruthSocial, has been the biggest name among Trump-linked stocks in recent weeks. The stock’s wild swings reflect investor sentiment tied to the upcoming election, with shares surging over 160% in October, marking the first positive month since March. Year-to-date, DJT has gained over 140%.

    As Trump holds a significant stake of 114 million shares in Trump Media, valued at over $5 billion, the company has a uniquely direct link to his fortunes. This stake represents about 75% of Trump’s net worth, and he has no plans to sell. Retail interest has surged recently, with net inflows hitting $14.4 million on a single day last week, and it’s the most-discussed stock on WallStreetBets over the past week, with more than 17,000 mentions this year.

    It’s worth noting that DJT’s valuation is driven largely by speculation rather than fundamentals. As UC Irvine professor Christopher Schwarz points out, Trump Media has “no fundamental value” and is trading on pure market speculation around the election outcome. With no profits and limited fundamentals, DJT is likely to stay volatile as the election date draws closer.

    Phunware (PHUN) – A Software Play with Trump Ties

    Phunware, a mobile software and blockchain company, is another name that has attracted retail traders hoping for an election-linked bump. Known for creating Trump’s campaign app, Phunware also lists prominent clients like Marriott, Atlantis, and the Mayo Clinic. The stock has been highly volatile, with its price swinging between $3 and $24 over the past year.

    Investor interest in Phunware spiked in October, with net inflows rising and shares climbing more than 140% this month alone. For 2024, the stock is up over 80%, putting it on track to break a two-year losing streak. All four analysts polled by LSEG rate the stock a “Buy,” with an average price target of $15, suggesting nearly 90% potential upside. Analysts’ estimates vary widely, though, ranging from $8 to $20, reflecting the risk and uncertainty surrounding Phunware. Like Trump Media, this stock is a speculative play with no earnings to show in recent years, so investors should be cautious of its inherent volatility.

    Rumble (RUM) – Conservative Video Platform with Election Appeal

    Rumble, the video platform popular with conservative audiences, is also seen as a potential beneficiary of a Trump win. The company went public in September 2022 with backing from Peter Thiel and has since carved a niche as a conservative alternative to mainstream platforms. While its connection to Trump isn’t as direct, Rumble remains on watchlists for those speculating on Trump’s influence on its user base and potential growth.

    In October, Rumble shares rose 13%, contributing to a 36% year-to-date gain. Over the last year, shares have traded within a narrower range of $3.33 to $9.20. Analyst sentiment on Rumble is more muted, with both analysts surveyed by LSEG giving it a “Hold” rating and an $8 price target, implying a 34% upside from recent levels. Like the other stocks on this list, Rumble is trading with high volatility, driven by sentiment and speculation rather than earnings or revenue growth.

    Three Strong Conviction Buys for the Week Ahead

    By
    Editorial Staff
    -
    0

    In the ever-shifting landscape of the stock market, separating the wheat from the chaff is no easy feat. It’s a world where the wrong picks can erode your hard-earned gains, but the right ones? They have the power to catapult your portfolio to new heights. With thousands of stocks in the fray, pinpointing those poised for a breakthrough can feel like searching for a needle in a haystack.

    This is where we step in. Every week, we comb through the market’s labyrinth, scrutinizing trends, earnings reports, and industry shifts. Our goal? To distill this vast universe of stocks down to a select few – those unique opportunities that are primed for significant movement in the near future.

    This week, we’ve zeroed in on three standout stocks. These aren’t your run-of-the-mill picks; they are the culmination of rigorous analysis and strategic foresight. We’re talking about stocks that not only show promise in the immediate term but also hold the potential for sustained growth.

    Duolingo (NASDAQ: DUOL) – A Language Leader with Room to Run

    Duolingo has made impressive strides this year, with shares up 29% year-to-date, and there’s good reason to believe the stock still has more growth potential. As the go-to platform for online language learning, Duolingo’s combination of category leadership and its unique, gamified approach make it a standout in its space. This strong positioning sets up Duolingo as a promising pick heading into its upcoming earnings report, scheduled for after-hours on Wednesday, November 6.

    While investor expectations are high, the company has consistently delivered, driven by a rapidly expanding and highly engaged user base. Duolingo’s ability to turn learning into an interactive, sticky experience is a major factor behind its success. With robust user retention and continual feature enhancements, Duolingo has proven its capability for strong execution and growth within the competitive internet space.

    Duolingo is one of the highest-growth companies in its sector, and its growth potential remains compelling. While some volatility is expected with such elevated expectations, Duolingo’s track record and unique position make it a solid addition to a growth-focused portfolio.

    Estée Lauder (NYSE: EL) – A Potential Turnaround in the Beauty Sector

    Estée Lauder has taken a significant hit this year, with its stock down more than 54% in 2024 and a 31% drop just over the past month. Despite the challenging environment, especially in key markets like China, this drop could present an opportunity for investors who believe in the company’s longer-term potential. Notably, Estée Lauder’s Relative Strength Index (RSI) is currently at low levels, which can signal that the stock may be oversold and poised for a potential rebound.

    On November 2, Estée Lauder reported earnings that exceeded analysts’ recently lowered expectations, though revenue came in short, citing softer demand from China. While this news brought further caution, it also underscored the company’s efforts to stabilize its performance amid market headwinds. For investors, Estée Lauder’s strong brand portfolio and resilient demand in markets outside of Asia may offer a path to recovery as the company adjusts its strategy to navigate evolving consumer sentiment.

    With more than 15 analysts adjusting their earnings forecasts downward since late October, the market sentiment is notably cautious. However, for those with a value focus and a long-term outlook, Estée Lauder’s current price could be an entry point into a well-established name in the beauty industry, especially if conditions in key markets begin to stabilize.

    TKO Group Holdings (TKO): A Knockout Opportunity in Sports Entertainment

    TKO Group Holdings, the parent company of UFC and WWE, has been making significant strides in the sports entertainment industry. The stock has surged nearly 43% this year, reflecting strong investor confidence. Analysts project an average 12-month return of 15%, indicating potential for further growth.

    In September, Pivotal Research Group initiated coverage with a buy rating, highlighting TKO’s unique position and revenue growth opportunities. Analyst Jeffrey Wlodarczak noted the potential for higher media rights fees, increased event revenue, and new revenue streams.

    Currently, 14 out of 19 analysts recommend buying TKO, with none suggesting a sell. This consensus underscores the company’s strong fundamentals and growth prospects.

    Investors should keep an eye on TKO’s strategic moves and market performance, as the company continues to capitalize on its leading position in sports entertainment.

    Bear Watch Weekly: Stocks to Sideline Now

    By
    Editorial Staff
    -
    0

    The right stocks can make you rich and change your life.

    The wrong stocks, though… They can do a whole lot more than just “underperform.” If only! They can eviscerate your wealth, bleeding out your hard-won profits.

    They’re pure portfolio poison.

    Surprisingly, not many investors want to talk about this. You certainly don’t hear about the danger in the mainstream media – until it’s too late.

    That’s not to suggest they’re obscure companies – some of the “toxic stocks” I’m going to name for you are in fact regularly in the headlines for other reasons, often in glowing terms.

    I’m going to run down the list and give you the chance to learn the names of three companies I think everyone should own instead.

    But first, if you own any or all of these “toxic stocks,” sell them today…

    AIG (NYSE: AIG) – Sentiment Weakens Amid Analyst Downgrades

    AIG is showing signs of losing steam despite a 14% year-to-date increase. Recent analyst actions suggest caution ahead of the company’s third-quarter earnings report on Monday. Over the past three months, analysts have slashed AIG’s earnings estimates by nearly 30%, with a roughly 24% reduction over six months—indicating a shift in confidence.

    BMO Capital’s Michael Zaremski downgraded AIG to “Market Perform” from “Outperform” in October, noting that AIG has underperformed its peers and could face additional headwinds. Zaremski cited concerns about the company’s new operating structure and potential for M&A, which could keep investor sentiment muted. With these challenges on the horizon, AIG may struggle to keep up with its sector counterparts in the near term.

    Target (NYSE: TGT) Retailer Facing Potential Tariff Headwinds

    As the possibility of Donald Trump’s return to the White House gains traction, retailers could face a major challenge with the reintroduction of tariffs. Trump has proposed a 20% tariff on all imported goods and a staggering 60% tariff on imports from China, which would squeeze margins and potentially reduce sales for companies reliant on international supply chains.

    Target (NYSE: TGT) stands out as particularly vulnerable. While it’s managed a modest 6% gain this year, it’s still underperforming the broader market, and the company’s reliance on imported goods could become a liability if tariffs rise. Wells Fargo analysts have flagged Target as one of the names to watch, noting that higher import costs could further pressure earnings. While Wall Street holds an overall optimistic view with an expected 18% upside, we’re cautious given the external risks that could derail that growth.

    Given the uncertainty surrounding trade policy and the potential for increased costs, TGT might not be worth holding onto right now. Consider reducing exposure to this stock in the near term.

    Meta Platforms (NASDAQ: META) – Rising Costs Damp Investor Sentiment

    Meta posted solid third-quarter results, with revenue up 19% year-over-year to $40.59 billion and EPS of $6.03, both beating analyst expectations. However, despite the strong numbers, investor enthusiasm took a hit after the company announced that capital expenditures would climb further in 2025, with projected spending now up to $40 billion for the year.

    CEO Mark Zuckerberg emphasized that AI advancements are at the center of Meta’s growth strategy, fueling engagement and new advertising capabilities. While this focus on AI holds promise, the steep rise in spending has investors on edge. CFO Susan Li’s comments about “significant capital expenditures growth” added to concerns, leading to a cautious outlook.

    For now, Meta’s spending ramp-up appears to be spooking the market more than boosting confidence. If costs continue to escalate, it may weigh on Meta’s performance despite strong user metrics.

    Earnings Insight: These Stocks are Gaining Steam Heading into Earnings Next Week

    By
    Editorial Staff
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    0

    As we move further into the third-quarter earnings season, several stocks are gaining momentum with notable analyst upgrades and strong growth forecasts. With 64% of S&P 500 companies reporting, earnings growth for the quarter has surpassed 9%, suggesting companies with positive earnings momentum could be poised for even more upside. This watchlist focuses on stocks with increasing analyst earnings forecasts, substantial upside to price targets, and strong buy ratings from at least half of analysts. Here’s what to watch as these companies head into their earnings reports next week:

    Constellation Energy (NASDAQ: CEG) – A Strong Performer in Clean Energy

    Constellation Energy stands out as a leading carbon-free energy producer in the U.S., with shares soaring 125% in 2024. The stock has received several recent analyst upgrades, including “Overweight” ratings from KeyBanc and Barclays, as well as initiation by JPMorgan with an “Overweight” stance. Analysts expect a year-over-year EPS growth of 20.35% this quarter, reflecting a highly positive outlook for CEG as it focuses on expanding nuclear generation contracts. Though high growth rates can sometimes bring increased volatility, Constellation’s solid balance sheet and diversified capital allocation strategy—including share repurchases, dividend growth, and expansion projects—are key strengths as the company looks to its earnings release on Monday, November 4. With earnings estimates up 215% in the last three months, Constellation is gaining traction as a key player in clean energy heading into earnings.

    DuPont (NYSE: DD) – Optimism in Chemicals

    Shares of DuPont have advanced over 8% in 2024, with analysts raising earnings forecasts more than 23% in the last six months. Several recent upgrades highlight strong confidence in DuPont’s growth outlook.

    Citigroup recently upgraded DuPont to “Buy” with a price target of $95, while Deutsche Bank raised its target to $92, both expressing confidence in the company’s strategic direction and financial health. DuPont’s anticipated earnings per share for the third quarter is $0.92, a slight decrease from last year, but analysts are hopeful about future growth drivers, especially with potential clarity in its electronics and water management segments. While the company faces challenges with fluctuating demand, the focus on innovation and critical markets could lead to positive catalysts in 2025.

    DuPont, a global leader in materials and specialty solutions, is set to report its third-quarter 2024 earnings on Tuesday, November 5, before the bell.

    Emerson Electric (NYSE: EMR) – Automation Leader with Strong Upside Potential

    Global technology firm Emerson Electric, known for its automation and engineering solutions, is set to announce its fourth-quarter earnings on Tuesday, November 5. Analysts project EPS of $1.47, a 13.95% increase year-over-year. Emerson has recently earned a rating upgrade from Oppenheimer, which raised the price target to $125, underscoring the company’s growth potential in the industrial and residential sectors. With a diversified product portfolio and increased demand in automation, Emerson’s current trading price of around $108.44 gives it room for upside, as analysts place its average 12-month price target at $125.81. Investors will be closely watching to see if Emerson’s results align with these optimistic projections.

    Howmet Aerospace (NYSE: HWM) – Momentum in Aerospace and Defense

    Howmet Aerospace, a key supplier to the aerospace and defense industries, will release its earnings on Wednesday, November 6, with analysts expecting EPS of $0.65—a strong 41.3% year-over-year increase. Last quarter, Howmet beat consensus expectations with revenue growth of 14.1%, and earnings are projected to grow by over 20% in the coming year. With 13 of 16 analysts rating it a “Buy,” Howmet’s momentum is being driven by demand for its high-performance components across commercial and defense markets. The average price target sits at $99.43, slightly below the current trading price, but continued strong performance could signal additional growth for this momentum-driven stock.

    Air Products and Chemicals (NYSE: APD) – Industrial Strength

    Air Products and Chemicals, a leading provider of industrial gases, has benefited from favorable pricing and a solid business mix, with a 17% increase in GAAP EPS in its previous quarter. Analysts have set a 12-month price target averaging $335.65, offering potential upside from the current price, although the stock has been less volatile than some of its peers. With fourth-quarter earnings expected on Thursday, November 7, investors will be closely watching APD’s report for continued strength in revenue and income. While economic factors like inflation could weigh on future results, APD’s diversified market presence across industries offers a strong foundation.  Investors are likely to focus on whether APD’s pricing strategy and business diversification will continue to deliver results.

    Earnings Spotlight: Stocks That Could Gain Steam this Week

    By
    Editorial Staff
    -
    0

    This week is shaping up to be a pivotal moment for the markets as five of the Magnificent Seven companies report earnings and the economic calendar gets packed with important data. Between inflation, GDP reports, and a slew of corporate earnings, volatility could surge. In fact, the CBOE Volatility Index has already jumped back above 20, signaling rising uncertainty. But where there’s volatility, there’s opportunity. We’ve rounded up a few stocks to keep a close eye on as earnings reports start rolling in.

    Microsoft (NASDAQ: MSFT) – A Bullish Setup Amid Cloud Concerns

    Microsoft is set to release its quarterly earnings on October 30, and there’s a lot of chatter around what could be a key moment for the stock. Despite concerns about margins and capital expenditures related to AI, we’re still bullish on Microsoft’s long-term prospects.

    The company’s cloud platform, Azure, remains a major growth driver, and there’s potential for upside in Q1 results. While investor sentiment has been shaky, we believe confidence in Azure’s future acceleration could push the stock higher. With shares up nearly 14% in 2024, Microsoft’s performance is hard to ignore.

    Atlassian (NASDAQ: TEAM) – A Dip Worth Buying

    Atlassian has struggled this year, with shares down more than 20% in 2024, but we think the sell-off is overdone. Growth concerns have weighed on the stock, but the company’s expanding product portfolio and strong pricing power make it a compelling buy at current levels.

    Atlassian is set to report earnings on October 31, and with demand holding steady and partners performing well, this could be a turnaround story in the making. We’re seeing a clear path to 20%+ growth, making this a top pick ahead of the earnings release.

    Meta Platforms (NASDAQ: META) – Strong Digital Ad Growth Ahead

    Meta Platforms has been on fire in 2024, with shares up nearly 62% year-to-date, and there’s still room to run. Meta reports its third-quarter earnings on October 30, and expectations are high for both top and bottom-line growth. Analysts are expecting Meta to earn $5.27 per share, up 20% from a year ago, driven by favorable digital advertising trends and the company’s heavy investments in AI.

    With Meta’s focus on AI continuing to pay off, especially across its platforms like Facebook, Instagram, and WhatsApp, the stock remains a top buy for the days ahead.

    These stocks are on our radar this week, and they could be primed for some major moves depending on how earnings shake out. Make sure to stay tuned for updates and be ready to act on these opportunities.

    Three Strong Conviction Buys for the Week Ahead

    By
    Editorial Staff
    -
    0

    In the ever-shifting landscape of the stock market, separating the wheat from the chaff is no easy feat. It’s a world where the wrong picks can erode your hard-earned gains, but the right ones? They have the power to catapult your portfolio to new heights. With thousands of stocks in the fray, pinpointing those poised for a breakthrough can feel like searching for a needle in a haystack.

    This is where we step in. Every week, we comb through the market’s labyrinth, scrutinizing trends, earnings reports, and industry shifts. Our goal? To distill this vast universe of stocks down to a select few – those unique opportunities that are primed for significant movement in the near future.

    This week, we’ve zeroed in on three standout stocks. These aren’t your run-of-the-mill picks; they are the culmination of rigorous analysis and strategic foresight. We’re talking about stocks that not only show promise in the immediate term but also hold the potential for sustained growth.

    Atlassian (NASDAQ: TEAM) – Positioned for a Post-Earnings Rebound 

    Atlassian has had a rough year, with shares down over 20% in 2024. Despite these challenges, we believe the stock is poised for a strong rebound, and now could be an ideal time to buy the dip. Growth concerns have weighed on the stock, but they seem overblown considering the company’s robust fundamentals and expanding product portfolio.

    Atlassian’s management has outlined a clear path back to 20%+ growth, driven by increased cross-sell opportunities, upselling existing clients, and sustained pricing power. The company’s marketing refocus and product diversification also provide a solid foundation for future growth. Demand for Atlassian’s software remains steady, with partners meeting or exceeding expectations in recent quarters.

    As we approach Atlassian’s next earnings report on October 31, we see this as an opportunity to get in before the market fully prices in the company’s long-term potential. With the stock trading at a discount, Atlassian is a unique software asset worth adding to your watchlist. Investors should continue to buy the dip as the stock sets up for a potential recovery.

    Caterpillar (NYSE: CAT) – A Beneficiary of Industrial Strength

    Despite the uncertainty in the broader agricultural landscape, Caterpillar has been a standout in 2024, surging over 30% year to date and hitting fresh 52-week highs in October. As a bellwether for industrial activity, Caterpillar stands to benefit from policy support, especially if the Republican platform gains traction in the upcoming election.

    One of the key drivers for CAT is its exposure to tax policies that have previously supported industrial giants. Accelerated depreciation and lower corporate tax rates are just a couple of the favorable measures that could return under a Trump administration. Moreover, reshoring efforts—likely to continue regardless of who wins—are another positive catalyst that could keep Caterpillar’s growth on track.

    While the broader farm economy faces challenges from high input costs, lower commodity prices, and uncertainty around tariffs, Caterpillar looks well-positioned to thrive in the current environment. Given the company’s solid performance this year and potential tailwinds ahead, it’s worth considering adding CAT to your portfolio. The stock’s strong momentum and clear path for further growth make it an attractive buy.

    Kroger Co. (NYSE: KR) – Positioned for a Breakout

    Kroger is quietly building momentum and is now on the verge of a significant technical breakout. After underperforming for much of 2024, Kroger shares are threatening to hit a new 52-week high, and the setup looks promising. The stock is forming a textbook cup-with-handle pattern, which is often a strong indicator of further upside once confirmed. The key level to watch here is $57.50 – if the stock breaks above this resistance line, it signals a fresh wave of buying interest that could propel prices higher.

    The technicals look solid. Kroger’s RSI has been in a bullish range since July, and a long-term trendline connecting the lows from late 2023 supports the idea that the stock remains in a healthy uptrend. This chart pattern isn’t just showing up on the daily chart—when you zoom out to the weekly time frame, you see a much larger cup-with-handle pattern that dates back to 2022, reinforcing the potential for a sustained move higher.

    With momentum building and key technical indicators aligning, Kroger looks like it’s ready for a breakout. This grocery giant is well-positioned to capitalize on any price strength, making it a compelling stock to watch closely for an entry point above $57.50.

    Bear Watch Weekly: Stocks to Sideline Now

    By
    Editorial Staff
    -
    0

    The right stocks can make you rich and change your life.

    The wrong stocks, though… They can do a whole lot more than just “underperform.” If only! They can eviscerate your wealth, bleeding out your hard-won profits.

    They’re pure portfolio poison.

    Surprisingly, not many investors want to talk about this. You certainly don’t hear about the danger in the mainstream media – until it’s too late.

    That’s not to suggest they’re obscure companies – some of the “toxic stocks” I’m going to name for you are in fact regularly in the headlines for other reasons, often in glowing terms.

    I’m going to run down the list and give you the chance to learn the names of three companies I think everyone should own instead.

    But first, if you own any or all of these “toxic stocks,” sell them today…

    Five Below (NASDAQ: FIVE) Retailer Under Pressure Amid Potential Tariff Hikes

    Retailers are bracing for more turbulence with the possibility of Donald Trump returning to the White House, and new tariffs could be a significant blow to companies relying heavily on imports. Trump has discussed implementing a 20% tariff on all imported goods and a hefty 60% rate on Chinese imports, which would directly impact profit margins across the retail sector.

    Five Below is a name that stands out as especially vulnerable. The stock is already down 59% this year, and higher tariffs could worsen the outlook for this discount retailer. With Five Below sourcing a substantial portion of its inventory from China, the company’s costs would skyrocket, making it even harder to recover. Wells Fargo analysts have highlighted this risk, and while some on Wall Street are hopeful for a rebound with a potential 20% upside, the current risks overshadow that optimism. Given the combination of external pressures and recent performance, FIVE is a sell in our book.

    Retailers like Five Below will face tough headwinds, and the current environment signals more downside than upside. Consider trimming or exiting positions as these tariff risks loom.

    Apple (NASDAQ: AAPL) Limited Upside Heading into Earnings

    Apple is gearing up to report its third-quarter results on October 31, with expectations high that its new feature, Apple Intelligence, will boost iPhone sales. However, while the company continues to innovate, we’re concerned about the stock’s current valuation.

    Apple is now trading at 31 times next year’s earnings, compared to its five-year average of 26 times. Itau analysts have flagged this elevated valuation, noting that despite the stock’s strong performance, the broader environment isn’t as supportive as it once was. With Apple’s stock price already stretched, it could be vulnerable to a pullback if earnings or future guidance fall short of lofty expectations.

    For investors sitting on gains, it might be a good time to take some profit off the table. AAPL is a great company, but at these levels, the stock may have limited upside in the near term.

    United Airlines (NASDAQ: UAL) Severely Overbought According to the Charts

    United Airlines has seen an impressive run this year, surging over 82% in 2024, largely fueled by stronger-than-expected Q3 results and the potential for stock buybacks. However, we believe the stock is now overextended and ripe for a pullback.

    United Airlines currently has a 14-day RSI of 85.9, well above the 70 threshold that typically signals an overbought condition. This suggests the stock may have rallied too far, too fast. While analysts are still bullish, with 87% holding buy ratings and a 20% upside projection, we think the recent run leaves little room for error, especially with rising fuel costs and potential macroeconomic headwinds.For those holding UAL, it may be time to lock in gains before the stock takes a breather. The technicals are flashing caution, and a pullback seems more likely than further upside in the near term.

    Semiconductor Insiders Are Selling Big—Here’s What It Means for Investors

    By
    Editorial Staff
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    0

    The semiconductor sector has been one of the strongest performers in 2024, largely driven by AI-related demand. For example, Nvidia (NVDA) has surged more than 190% year-to-date, while the VanEck Semiconductor ETF (SMH) is up 48% over the same period. But despite this rally, insiders—executives and directors—are selling their shares at record levels.

    According to Washington Service, which tracks insider trading, semiconductor insiders sold $1.35 billion worth of company stock in the third quarter of 2024. This figure is the highest quarterly value recorded for the sector and includes pre-planned sales under 10b5-1 trading plans. However, the volume of sales is raising concerns among market experts.

    Nvidia (NVDA) Massive Insider Sales Despite AI Growth

    Leading the pack in stock sales is Nvidia, a company at the forefront of the AI boom. CEO Jensen Huang sold over $700 million in shares during the second and third quarters of 2024. While these sales were part of a pre-planned trading strategy, they still represent a significant reduction in his personal holdings. Huang remains Nvidia’s largest individual shareholder, controlling about 3.5% of the company. Additionally, board member Tench Coxe sold $235.7 million in shares in late September, contributing to the nearly $960 million of Nvidia stock sold by insiders in Q3.

    Nvidia remains one of the top performers in the market, but the large insider sales are something investors should keep an eye on, especially given the stock’s significant gains this year.

    Broadcom (AVGO) CEO Unloads Shares Amidst Strong Sector Performance

    Broadcom’s CEO, Hock Tan, sold 275,000 shares worth $46.9 million between July and September. Despite the sales, Tan still holds 1.3 million shares in the company. He wasn’t alone—other insiders, including a company officer and director, also sold shares, which VerityData reported as a cluster of insider sales toward the end of September.

    While Broadcom’s stock has performed well, the insider sales could be signaling caution from those within the company as the stock has already had a strong year.

    KLA Corp (KLAC) Cluster of Insider Sales Raises Concerns

    At KLA Corp, six insiders, including CEO Richard Wallace and CFO Bren Higgins, sold a total of $29.9 million worth of shares in the third quarter. Most of these sales were carried out under 10b5-1 trading plans, but the high volume of selling is drawing attention from investors.

    KLA’s fundamentals remain solid, but the insider activity suggests that the stock may be nearing its upper valuation limit, prompting some to sell.

    What Should Investors Do?
    While insider sales can happen for many reasons, the large volume of sales within the semiconductor sector is worth noting. As these stocks continue to rise, some insiders may believe they are fully valued. Investors should carefully assess their positions and consider whether it’s time to take profits or hold on for potential long-term gains.

    Essential Gold Stocks for November

    By
    Editorial Staff
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    0

    As the price of gold teeters near all-time highs, the allure of this precious metal continues to capture the attention of investors globally. While debates may persist between gold enthusiasts and market purists about its place in a portfolio, the truth is that gold has shown itself to be a valuable hedge and a performer during turbulent times.

    This watchlist dives into three top-ranked gold mining stocks, each offering unique advantages and poised for potential gains in this high-stakes market environment.

    Barrick Gold (NYSE: GOLD) – A Golden Growth Opportunity
    Barrick Gold stands out with its impressive financial performance and bullish market prospects. Recently, the company reported a significant earnings beat with a 25% increase in year-over-year net earnings. Anticipated to see earnings growth exceed 30% annually over the next three to five years, Barrick Gold offers both stability and growth. Currently trading at a forward earnings multiple significantly below its historical average, the stock presents an attractive valuation, especially with a PEG ratio of just 0.5. Investors will also appreciate the 2.1% dividend yield as an added bonus.

    Agnico Eagle Mines (NYSE: AEM) – Priced for Growth
    Based in Toronto, Agnico Eagle Mines operates across several key global regions. The company shows strong potential with analysts projecting a 28.2% annual EPS growth over the next three to five years. Agnico’s current trading multiple is far below its ten-year median, signaling an undervalued stock that could offer substantial returns. The stock also provides a 2.3% dividend yield, enhancing its appeal to income-focused investors.

    Eldorado Gold (NYSE: EGO) – Undervalued with Robust Revisions
    Eldorado Gold, with operations in Brazil and Turkey, has seen significant upward earnings revisions, indicating robust investor interest and potential for price appreciation. Currently trading at a deeply discounted forward earnings multiple compared to both the market average and its historical performance, Eldorado Gold offers the most attractive valuation among its peers. This, coupled with strong operational momentum, positions it well for future growth.

    Strategic Allocation to Gold

    Investors considering gold should think about allocating a portion of their portfolio to this sector. Historical data suggests that maintaining a 5%-15% allocation to gold can provide substantial diversification and hedging benefits without sacrificing too much in the way of potential stock market returns.

    By focusing on high-quality gold mining stocks, investors not only benefit from potential increases in gold prices but also from the operational and financial growth of well-managed mining companies. This strategic approach allows for balanced exposure to both the commodity and the earnings potential of its producers.

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