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    Three Top Tier Mid-Cap Stocks to Watch Now

    By
    Editorial Staff
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    When it comes to mid-cap stocks, often represent the best of both worlds. They’re large enough to weather short-term challenges, but they also have the growth potential to expand significantly. Unlike blue-chip giants, mid-caps have plenty of room to grow while benefiting from a solid financial foundation. With the S&P 500’s weighted average market cap hovering around $300 billion and the top 100 companies well over $100 billion, mid-caps represent an attractive alternative for investors looking for companies with room to grow.

    Given strong financial performance, recent momentum, and favorable market conditions, here are three mid-cap stocks to consider adding to your watchlist:

    Brinker International Inc. (EAT): A Restaurateur with Room to Grow

    Brinker International (EAT), based in Dallas, is behind two popular dining brands: Chili’s and Maggiano’s Little Italy. Unlike other dining chains like McDonald’s, which make most of their revenue from franchising, about half of Brinker’s Chili’s locations are company-owned, and it does not franchise Maggiano’s for new locations. This direct ownership model allows Brinker to capitalize on favorable trends in the restaurant industry. In fiscal 2024, the company posted a 7% increase in same-store sales compared to the prior year. The stock has surged nearly 170% year-to-date, fueled by strong financial results and growing investor interest. At a market value of $5.2 billion, Brinker is poised for continued growth.

    Hims & Hers Health Inc. (HIMS): A Telehealth Company with Explosive Growth

    Hims & Hers (HIMS) is a telehealth company that connects individuals with licensed care professionals to provide a range of health and wellness services. The company’s offerings go beyond traditional telehealth consultations to include prescription medications, over-the-counter products, skincare, and sexual health products. This fast-growing marketplace has proven to be a hit with consumers, with a 65% surge in revenue for fiscal 2024. Projections show the company is on track to grow another 40% in fiscal 2025. With a market value of $5.1 billion, Hims & Hers is making waves in a rapidly expanding industry, making it a compelling pick for investors looking for long-term growth.

    Remitly Global Inc. (RELY): A Fintech Stock with a Lucrative Niche

    Remitly Global (RELY) is a fintech company that focuses on digital financial services for immigrants and expatriates who need cross-border transactions. While the niche market may be smaller than the general fintech sector, Remitly has tapped into a lucrative and underserved segment, generating over $1.2 billion in revenue for fiscal 2024, up 30% from the previous year. The company is projected to grow another 25% in fiscal 2025. Backed by early investor Jeff Bezos, Remitly’s innovative approach to international money transfers has given it a runway for growth that larger fintech firms are largely overlooking. With a market value of $3.9 billion and shares up nearly 50% over the last three months, Remitly is a stock with significant upside potential.

    Three Strong Conviction Buys for the Week Ahead

    By
    Editorial Staff
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    0

    Navigating the stock market can be a high-stakes game. Choose incorrectly, and your portfolio might suffer. But the right choices? They could be your ticket to financial triumph. With thousands of stocks to choose from, pinpointing those poised for success is no small feat. It’s a daunting task, requiring hours of market analysis and company research – time that many people simply don’t have.

    That’s where we come in. Each week, we delve deep into the market’s vast array of options, sifting through countless possibilities to bring you a select few. These are not just any stocks; they are carefully chosen based on solid research, current market trends, and potential for noteworthy growth.

    This week, we’ve honed in on three stocks that stand out from the crowd. Our picks go beyond the mainstream; they’re strategic selections, crafted for significant impact in both the immediate future and over the long haul.

    Read on and discover the full watchlist and unveil these exceptional stock picks.

    Roku (ROKU) – A Beaten-Down Growth Stock with Big Upside

    Roku has had a rough few years, with its stock down about 50% over the past three years. A slowdown in digital ad spending, weaker revenue growth, and a lack of profitability have kept many investors on the sidelines. But the story is starting to shift, and Roku’s upcoming fourth-quarter earnings report could be a turning point.

    Despite the challenges, Roku continues to expand its platform, adding more users and increasing streaming hours. The company now serves 80 million active accounts, up 13% year over year, while total streaming hours have climbed 20%. Yet, average revenue per user (ARPU) has remained stagnant due to weakness in the digital advertising market and international expansion, which brings in lower per-user revenue than its U.S. business. However, there are signs that ad spending is improving, which could be a major tailwind for Roku moving forward.

    Roku is also making smart financial moves. The company generated $149 million in free cash flow over the past year, showing it can operate profitably despite its net losses. It has aggressively cut costs, and analysts expect operating expenses to decline in 2024 while revenue continues to grow. With its partnership with The Trade Desk helping to drive ad revenue and the broader ad market showing signs of recovery, Roku could be on the verge of a major rebound.

    Wall Street is starting to take notice. More analysts have upgraded Roku in recent months, and short interest has fallen, indicating that bearish sentiment is easing. Roku has beaten earnings estimates in each of its last four reports, and with its next earnings release on Feb. 13, this could be the moment when investors start to recognize the company’s long-term potential. For those looking to buy a high-growth stock before sentiment shifts, Roku is an attractive pick right now.

    Union Pacific (UNP) – A Dividend Powerhouse with Long-Term Growth Potential

    Union Pacific has once again proven why it’s a top-tier dividend stock, surging recently following a strong Q4 earnings report and an optimistic 2025 outlook. As one of the dominant railroad operators west of the Mississippi River, Union Pacific benefits from limited competition, extensive infrastructure, and steady demand for freight transportation. These competitive advantages allow the company to grow earnings consistently while rewarding shareholders with dividends and stock buybacks.

    Operational efficiency has been a major driver of Union Pacific’s recent success. The company managed to transport 5% more freight in 2024 while reducing its workforce by 3%, leading to higher margins and profitability. Despite only a modest 1% revenue increase, operating income rose by 7%, and net income jumped 6%. With an operating margin of 40% and a profit margin nearing 28%, Union Pacific continues to demonstrate why railroads remain some of the most capital-efficient businesses.

    The company also boasts a highly diversified revenue stream, moving everything from agricultural products to industrial goods. While coal shipments declined 23% in 2024, growth in other categories helped offset the weakness. Looking ahead, management is optimistic about new opportunities in renewable diesel feedstocks and petrochemicals, helping position the business for long-term stability even as traditional energy sources like coal decline.

    Beyond its operational strengths, Union Pacific is an income investor’s dream. The company has paid dividends for 125 consecutive years and has increased payouts annually since 2008. Over the past decade, the dividend has climbed 144%, while aggressive share buybacks have reduced the share count by 31%. Even after last week’s stock surge, Union Pacific trades at a reasonable 22.9 times earnings, with a forward P/E of 20.6. Given its strong balance sheet, consistent cash flow, and commitment to shareholder returns, Union Pacific remains a high-quality dividend stock worth owning for years to come. 

    Salesforce (NYSE: CRM) – Driving AI Integration in Business

    Salesforce has become a major player in the AI space, seamlessly integrating AI into its customer relationship management (CRM) tools. The company’s flagship AI product, Salesforce Einstein, is a generative AI tool that enhances productivity and automates tasks for businesses. Additionally, Tableau and MuleSoft provide powerful solutions for data visualization and software integration, making Salesforce a comprehensive platform for businesses embracing AI.

    The stock has gained nearly 17% in the last year, and analysts are bullish, with 42 out of 55 giving it a buy or overweight rating. The average price target of $401.36 suggests 26.3% upside potential, while some, like Michele Schneider, see the potential for Salesforce to hit $500, depending on broader market conditions.

    For investors who want to ride the AI wave while focusing on a company with an established customer base and cutting-edge tools, Salesforce offers both stability and growth potential.

    These Stocks Have Been On Fire Since Trump’s Win—Can They Keep Climbing?

    By
    Editorial Staff
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    Since Donald Trump’s election victory in November, a handful of stocks have seen explosive gains, with some more than doubling in just a few months. While some of these moves are tied to market trends, others are directly linked to expectations surrounding Trump’s policies.

    Among the biggest winners are Geo Group (GEO), AppLovin (APP), and SoundHound AI (SOUN)—three stocks that have each soared over 100% since the election. But after such massive rallies, do they still have room to run, or is it time for investors to take profits?

    Geo Group (GEO) – A Trump Policy Play That’s Already Priced In?

    Geo Group has seen its stock surge 105% since Election Day, as investors bet on stricter border security and immigration policies under Trump’s leadership. The company provides correctional and detention services, and with the administration pushing for tougher enforcement, demand for Geo’s facilities could increase.

    Investors are speculating that new government contracts could drive more revenue. However, Geo’s financial performance hasn’t been particularly strong. Over the past four quarters, the company has generated just $36 million in profit on $2.4 billion in revenue, with little revenue growth in recent years.

    Despite this, the stock now trades at over 110 times trailing earnings, a valuation that suggests much of the potential upside is already priced in. While a major new contract could push the stock even higher, investors should be cautious about assuming the rally will continue without a tangible boost to earnings.

    AppLovin (APP) – A High-Growth Stock That May Be Overheating

    AppLovin has been one of the biggest winners since Trump’s victory, with shares climbing 121%. However, the stock’s rally isn’t tied to politics—its massive spike came the day after the election, when the company reported 39% revenue growth for Q3 2024, reaching $1.2 billion in sales.

    Investors are particularly excited about AppLovin’s expansion into e-commerce advertising, which could open up a new multi-billion-dollar revenue opportunity. While Trump’s economic policies and potential rate cuts could support growth stocks like AppLovin, the stock’s lofty valuation is a concern.

    At over 110 times earnings, AppLovin is priced for perfection. Unless the company delivers significant profit growth in the coming quarters, the stock could be vulnerable to a pullback. While its long-term growth story remains intact, investors may want to consider whether it’s time to lock in some gains.

    SoundHound AI (SOUN) – An AI Hype Play That Needs to Prove Itself

    SoundHound AI has been on an absolute tear, with shares soaring 165% since Election Day. The company, which specializes in voice-enabled AI technology, has benefited from increased enthusiasm around artificial intelligence.

    However, much of SoundHound’s recent momentum is tied to partnership announcements, rather than anything directly related to the political environment. In December, SoundHound announced that its AI-powered Smart Ordering system had launched at Torchy’s Tacos and Church’s Texas Chicken locations, giving investors renewed confidence in its commercial viability.

    Despite these wins, profitability remains a major concern. SoundHound AI reported $67 million in revenue over the past 12 months, but its net loss totaled $111 million. At a price-to-sales multiple of 65, the stock is trading at an extreme valuation that leaves little margin for error.

    For the stock to continue climbing, SoundHound AI will need to show significant improvement in its earnings. Until then, investors should be cautious about chasing the recent hype.

    Final Thoughts

    These three stocks have delivered massive gains in just a few months, but their future outlooks are very different. Geo Group’s rise is tied directly to Trump’s policies, but the stock may have already priced in the upside. AppLovin has strong growth potential, but its valuation looks stretched. SoundHound AI is an AI hype favorite, but without a clear path to profitability, it could be risky.

    For investors sitting on large gains, now might be the time to reassess whether these stocks still have room to run—or if it’s time to take some profits.

    Trump’s $500 Billion Stargate Project is Driving a New Wave of Opportunity, Here’s How to Find It

    By
    Editorial Staff
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    The recently announced Stargate AI project represents a monumental joint venture among Softbank, Oracle, OpenAI, and other leading technology firms. With a staggering $500 billion investment planned for AI infrastructure—$100 billion of which is already allocated—this initiative aims to reshape the technological landscape in the U.S. Over 20 data centers are planned, with 10 already under construction. For investors, this massive project opens the door to significant opportunities in AI, construction, and hardware-related stocks.

    Several companies stand out as key beneficiaries of this initiative. From powering the AI infrastructure with cutting-edge GPUs to supplying materials for data center construction, here’s a look at stocks worth watching as the Stargate project unfolds.

    Nvidia (NVDA): Riding the AI Infrastructure Boom

    Nvidia (NVDA) is a clear beneficiary of Stargate’s ambitious goals. Known for its high-performance GPUs, Nvidia’s technology is essential for powering AI systems, and the Stargate project appears to rely heavily on its hardware solutions. UBS analyst Timothy Arcuri believes this could ease concerns about peak compute demand, potentially extending Nvidia’s growth runway well beyond 2026.

    With Nvidia already a leader in AI computing, this deal cements its role as a cornerstone of future AI infrastructure. Given its established dominance in the GPU market and the scale of this project, Nvidia’s shares could see substantial long-term upside as these data centers come online.

    Oracle (ORCL): Federal Deals and Long-Term Growth

    Oracle (ORCL) is uniquely positioned to capitalize on Stargate, particularly through its Oracle Cloud Infrastructure (OCI) services. Evercore ISI analyst Kirk Materne highlights Oracle’s potential to secure significant federal contracts, a material revenue driver over the coming years. Additionally, UBS notes that Oracle is a “natural and expected choice” for OpenAI in training GPUs.

    With a data center buildout larger than most analysts initially expected, Oracle stands to benefit both as a technology partner and as a leader in cloud infrastructure services. This project could significantly enhance Oracle’s OCI growth trajectory and reinforce its long-term value proposition.

    CRH (CRH): A Cement Giant Poised to Gain

    The construction of 20 massive data centers requires enormous amounts of building materials, positioning CRH as a major beneficiary. RBC Capital Markets analyst Anthony Coding identifies CRH as the top pick among global cement players for its exposure to the U.S. market.

    With the Stargate project in its early stages, CRH could experience sustained demand for its materials, particularly if future phases expand investments across the U.S. For investors looking to capitalize on infrastructure growth, CRH offers a compelling opportunity.

    Arm Holdings (ARM): A Key Tech Partner in AI

    Arm Holdings (ARM), a prominent player in chip design, was named as a key technology partner in the Stargate project. With its energy-efficient chip architectures, Arm is well-suited to meet the demands of large-scale AI data centers. Wells Fargo analyst Aaron Rakers sees Arm as a direct beneficiary of this initiative, with the potential for increased adoption of its technology in AI-driven environments.

    Arista Networks (ANET): Networking the Future

    Arista Networks (ANET), a major supplier of computer networking solutions, could see indirect benefits from Stargate through its relationship with Oracle. As one of Oracle’s primary customers, Arista stands to gain from the expanded data center infrastructure. While this is a more derivative play, Arista’s position in the networking space makes it a noteworthy stock to watch as the project progresses.

    The Bottom Line

    The Stargate project represents a transformative investment in AI infrastructure, creating significant opportunities for companies across sectors. Nvidia and Oracle stand out as direct beneficiaries of the technology buildout, while CRH and Arm Holdings provide unique angles in construction and chip design. As the project evolves, these stocks could deliver substantial returns for investors positioned to capitalize on this historic initiative.

    Earnings Season Hits Full Speed: Key Reports to Watch This Week

    By
    Editorial Staff
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    We’re now at the halfway point of earnings season, and this week is one of the busiest yet. More than 100 S&P 500 companies are set to report, including some of the biggest names in tech, healthcare, and consumer goods. So far, the results have been solid—77% of the 180 S&P 500 companies that have already reported have beaten analyst forecasts, slightly above the 10-year average of 75%, according to FactSet.

    That said, the market’s reaction has been mixed, with investors focusing more on future guidance than past performance. Here’s a breakdown of the most important earnings reports coming up this week and what to watch for.

    Tuesday: 

     Pfizer (PFE) – Pre-Market Report

    • Last quarter: Beat earnings expectations and raised full-year guidance.
    • This quarter: Analysts expect revenue growth of more than 20% year over year.
    • What to watch: Investors will be focused on Pfizer’s drug pipeline, particularly updates on its weight-loss drug and new oncology treatments. CEO Albert Bourla has emphasized pipeline development as the company pivots away from its reliance on COVID-19-related revenue.
    • History: Pfizer has a strong track record, beating earnings estimates 87% of the time, according to Bespoke.

     Alphabet (GOOGL) – After the Bell

    • Last quarter: Beat expectations, driven by strong cloud revenue.
    • This quarter: Expected earnings growth of nearly 30% year over year.
    • What to watch: Alphabet’s ad business should benefit from the same AI-driven pricing power that helped Meta in its latest report. Oppenheimer’s Jason Helfstein sees Alphabet as a clear AI winner.
    • History: Alphabet has beaten analyst estimates for seven straight quarters.

     Advanced Micro Devices (AMD) – After the Bell

    • Last quarter: Stock fell after weak guidance disappointed investors.
    • This quarter: Analysts expect a 40% earnings increase year over year.
    • What to watch: AMD shares fell 5% last week after the DeepSeek news sparked a sell-off in AI stocks. With growing competition, investors will be looking for a strong report to regain confidence.
    • History: AMD has fallen in three of its last four earnings reports, including a 10.6% drop last October.

    Wednesday:

     Disney (DIS) – Pre-Market Report

    • Last quarter: Shares surged on strong streaming growth and solid guidance.
    • This quarter: Revenue is expected to grow by just 4%, but earnings should remain strong.
    • What to watch: JPMorgan’s David Karnovsky sees Disney as the best-positioned media company due to its unique content, improving streaming profitability, and strong theme park operations.
    • History: Disney has beaten earnings expectations for six straight quarters.

     Ford (F) – After the Bell

    • Last quarter: Beat earnings expectations but issued weak 2024 guidance.
    • This quarter: Expected 20% year-over-year earnings growth.
    • What to watch: Barclays recently downgraded Ford to “equal weight” from “overweight,” citing volume and pricing headwinds in 2025. Analysts will be paying close attention to inventory levels and management’s outlook for the auto market.
    • History: Ford beats expectations 70% of the time but tends to see its stock decline on earnings day.

    Thursday: Amazon Closes Out the Week

     Amazon (AMZN) – After the Bell

    • Last quarter: Strong earnings beat, fueled by cloud growth.
    • This quarter: Analysts expect nearly 50% earnings growth year over year.
    • What to watch: Bank of America’s Justin Post remains bullish, highlighting AI-driven cloud expansion and retail margin improvement as key drivers of outperformance.
    • History: Amazon has beaten earnings expectations for seven straight quarters.

    Key Takeaways for Investors

    Earnings season is strong but mixed – While most companies are beating expectations, stock reactions have varied, as investors focus more on forward guidance.

    Tech earnings will set the tone – Alphabet and Amazon’s reports will be closely watched for insights into AI, digital advertising, and cloud growth.

    Cyclical sectors face headwinds – Ford and Disney are up against industry-specific challenges, and investors will be looking for signs of resilience.

    Volatility remains a risk – With major stocks reporting this week, expect market swings, particularly in tech and consumer discretionary sectors.

    As earnings season continues, the focus is shifting from past performance to future outlooks. Strong reports could fuel further gains, but any signs of weakness could trigger pullbacks. Keep an eye on the key names reporting this week, as their results will help shape market sentiment heading into February.

    Three Strong Conviction Buys for the Week Ahead

    By
    Editorial Staff
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    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.

    HubSpot (HUBS) – A Software Winner in the DeepSeek Shake-Up

    While much of the tech sector was rattled by the DeepSeek revelation last week, software stocks have emerged as a surprising bright spot. As AI spending shifts from an arms race in hardware to a focus on efficiency and application, companies like HubSpot could be well-positioned to benefit from the evolving narrative.

    HubSpot has been on a tear in 2025, already up 12% this year after gaining 20% in 2024. Unlike companies directly tied to AI infrastructure spending, HubSpot is in a prime position to capitalize on the increasing need for AI-driven automation, CRM tools, and marketing software. Analysts at Canaccord Genuity and BMO Capital Markets have pointed out that greater competition and diversification in AI models could lower costs and drive broader adoption of AI-powered software solutions—exactly where HubSpot thrives.

    With strong fundamentals, continued revenue growth, and a strategic position in the AI-driven software space, HubSpot looks like one of the tech names that could sidestep the volatility affecting other corners of the market. If AI investment trends shift toward application rather than just infrastructure, HubSpot stands to benefit in a big way.

    Union Pacific (UNP) – A Dividend Powerhouse with Long-Term Growth Potential

    Union Pacific has once again proven why it’s a top-tier dividend stock, surging last week following a strong Q4 earnings report and an optimistic 2025 outlook. As one of the dominant railroad operators west of the Mississippi River, Union Pacific benefits from limited competition, extensive infrastructure, and steady demand for freight transportation. These competitive advantages allow the company to grow earnings consistently while rewarding shareholders with dividends and stock buybacks.

    Operational efficiency has been a major driver of Union Pacific’s recent success. The company managed to transport 5% more freight in 2024 while reducing its workforce by 3%, leading to higher margins and profitability. Despite only a modest 1% revenue increase, operating income rose by 7%, and net income jumped 6%. With an operating margin of 40% and a profit margin nearing 28%, Union Pacific continues to demonstrate why railroads remain some of the most capital-efficient businesses.

    The company also boasts a highly diversified revenue stream, moving everything from agricultural products to industrial goods. While coal shipments declined 23% in 2024, growth in other categories helped offset the weakness. Looking ahead, management is optimistic about new opportunities in renewable diesel feedstocks and petrochemicals, helping position the business for long-term stability even as traditional energy sources like coal decline.

    Beyond its operational strengths, Union Pacific is an income investor’s dream. The company has paid dividends for 125 consecutive years and has increased payouts annually since 2008. Over the past decade, the dividend has climbed 144%, while aggressive share buybacks have reduced the share count by 31%. Even after last week’s stock surge, Union Pacific trades at a reasonable 22.9 times earnings, with a forward P/E of 20.6. Given its strong balance sheet, consistent cash flow, and commitment to shareholder returns, Union Pacific remains a high-quality dividend stock worth owning for years to come. 

    Vera Therapeutics (VERA) – A High-Potential Biotech at a Discount

    Biotech stocks can be volatile, but when the long-term potential outweighs short-term price swings, investors should take notice. Vera Therapeutics is one of those opportunities. The stock has taken a hit in early 2025, falling more than 17% since the start of the year, but this pullback looks like a buying opportunity rather than a reason for concern.

    The company’s lead drug candidate, atacicept, is showing strong promise as a treatment for autoimmune kidney diseases. Analysts see a clear path to commercialization beginning next year, with Vera having a substantial lead in its category. The potential market opportunity is significant, and atacicept’s differentiation from competitors could give it a lasting edge. If all goes as expected, sales could accelerate meaningfully in the latter half of the decade.

    Beyond its strong clinical pipeline, Vera is also an intriguing takeover target. Recent biotech acquisitions suggest that large pharmaceutical companies are actively looking for promising drug developers, and Vera’s competitive positioning makes it an appealing candidate. With a price target of $58—implying a 56% upside from current levels—analysts see considerable room for the stock to run. For investors looking for an under-the-radar biotech with strong catalysts ahead, Vera Therapeutics could be worth a closer look.

    Bear Watch Weekly: Stocks to Sideline Now

    By
    Editorial Staff
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    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…

    Walmart (WMT) – A Strong Business, But a Risky Stock at This Price

    Walmart has delivered impressive returns over the past three years, significantly outperforming its retail peers. The company’s ability to capture market share, expand its e-commerce platform, and boost profitability has made it a favorite among investors. However, with the stock now trading at 1.1 times sales—well above its historical average of 0.75—the question is whether further upside is limited. Even strong businesses can become overvalued, and at this price, Walmart may already be pricing in much of its expected growth.

    The company has raised its full-year outlook, suggesting confidence in its near-term momentum. But expectations are high, and with consumer spending under pressure, the upcoming February 20 earnings report will be a key test. If results disappoint or guidance is weaker than expected, the stock could see a pullback. Additionally, after two years of strong gains in the S&P 500, analysts warn that a market correction could be on the horizon. If that happens, premium-valued stocks like Walmart could be among the first to see selling pressure.

    While Walmart remains a strong company with a dominant position in retail, the stock’s valuation looks stretched. Investors who have enjoyed the ride may want to consider taking profits, as the risk of near-term underperformance has increased.

    ChargePoint (CHPT) – The Struggles Keep Piling Up

    ChargePoint was once seen as a key player in the EV revolution, but its stock has collapsed from over $30 at its public debut to around $1 today. The company has struggled with slowing growth, mounting losses, and increasing competition from Tesla’s Supercharger network and EVgo’s fast-charging stations. Making matters worse, ChargePoint now expects revenue to decline between 17% and 19% in fiscal 2025, with analysts forecasting just $416 million in sales—well below previous expectations. A growth company losing revenue is a serious red flag.

    ChargePoint remains deeply unprofitable, with a projected GAAP net loss of $270 million this year and negative adjusted EBITDA of $127 million. The company had previously set a goal of reaching EBITDA profitability by 2025, but that milestone has now been pushed back to at least 2027. At the same time, its transition from lower-margin Level 2 chargers to more competitive but lower-margin Level 3 DC chargers is squeezing profitability.

    Another major concern is dilution. Since going public, ChargePoint has increased its share count by 59% to cover stock-based compensation and secondary offerings. More dilution is likely as the company continues to burn cash. With shrinking revenue, continued losses, and growing competition, ChargePoint is a stock to avoid.

    Ford Motor Company (F) – Rising Skepticism Ahead of Earnings

    Ford’s stock has been climbing this month, but analysts are increasingly cautious about its outlook. While the company has reported strong U.S. vehicle sales, earnings expectations have been cut by more than 18% in the past three months, and its average price target has been revised down by over 19%. This signals growing concerns about Ford’s profitability heading into its next earnings report.

    One of the biggest risks for Ford is rising inventory levels, which could put pressure on pricing and margins in the coming quarters. Much of Ford’s strength in 2024 came from inventory replenishment—a factor that won’t provide the same boost in 2025. Additionally, the company has faced analyst downgrades, including a recent cut from Barclays, which now rates the stock as equal weight and lowered its price target, citing structural challenges in the auto market.

    While Ford has enjoyed a strong start to the year, the fundamentals are looking weaker. With declining earnings estimates, cautious analyst sentiment, and potential margin pressures, investors may want to reconsider their positions before the company’s next earnings report.

    Three High-Potential Stocks for February

    By
    Editorial Staff
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    0

    Growth stocks have long been a go-to for investors looking to build wealth over time. While these companies may not always offer dividends, they reinvest profits into expanding their businesses, developing new products, and capturing larger market share—often leading to significant stock price appreciation.

    With innovation driving new opportunities in sectors like technology, healthcare, and consumer services, growth stocks continue to offer compelling upside potential. Investors willing to take on some volatility in exchange for higher long-term returns may find now to be an opportune moment to add high-quality growth names to their portfolios.

    The key is identifying companies with strong revenue expansion, competitive advantages, and a clear runway for future growth. Here are some of the most promising growth stocks worth considering right now.

    Advanced Micro Devices (AMD)

    AMD has been a major player in the AI and semiconductor space, competing with giants like Nvidia for dominance in high-performance computing. The company is facing some near-term headwinds, including weaker demand for gaming chips, but its data center business is thriving. AI-driven workloads are expanding rapidly, and AMD’s chips are increasingly in demand for next-gen computing applications.

    Despite its strong position in the semiconductor industry, AMD’s stock has taken a hit, down about 24% over the past year. That pullback has created a potential buying opportunity, with its forward P/E of 24 sitting below its five-year average of 33. For long-term investors who believe in AMD’s ability to capture more AI-related demand, the current valuation looks attractive.

    Sea Limited (SE)

    Singapore-based Sea Limited might not be a household name in the U.S., but it’s a major player in Asia’s e-commerce, digital finance, and gaming industries. The company has shown impressive growth, with its stock surging more than 160% in 2024. Even after that rally, the valuation remains reasonable, with a price-to-sales ratio of 4.5, in line with its five-year average.

    In the third quarter, Sea Limited reported a 31% year-over-year revenue increase, exceeding analyst expectations. More importantly, it swung to profitability, delivering $153 million in net income compared to a $144 million loss a year prior. With a strong foothold in multiple high-growth sectors and a recovering bottom line, Sea Limited presents an intriguing opportunity for investors looking to gain exposure to emerging markets.

    Taiwan Semiconductor Manufacturing (TSM)

    Taiwan Semiconductor Manufacturing (TSMC) is a powerhouse in the semiconductor industry, serving as the leading chip manufacturer for companies like Apple and Nvidia. While many semiconductor firms focus only on design, TSMC dominates the production side, controlling roughly 65% of the market. Its strategic role in AI-driven computing has fueled its massive growth, pushing its market cap past $1 trillion.

    In its latest quarter, TSMC reported a revenue increase of nearly 39% year over year, while net income surged 57%. The company also pays a dividend, with a yield of 1.3%—not sky-high, but nearly double what it was five years ago.

    Some concerns remain about geopolitical risks related to Taiwan, but TSMC has been proactive in expanding its operations, including a highly advanced fabrication plant in Arizona. With a P/E ratio of 31, below its five-year average of 33, the stock offers solid value given its dominance in AI-related chip production.

    DeepSeek Disruption: Why the AI Sell-Off Could Be a Buying Opportunity

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    Editorial Staff
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    By the end of today’s session, most investors have already absorbed the headline: a Chinese startup, DeepSeek, has developed an AI model that reportedly challenges U.S. tech dominance by delivering exceptional performance at a fraction of the cost. The result? A sharp sell-off across AI stocks, with Nvidia down 16%, Broadcom off 18%, and Amazon slipping 3% at the time of writing this article.

    But here’s the deeper story: while fears of overinvestment and shifting dynamics in AI spending are legitimate, the market may have overreacted. Industry experts and analysts suggest that these developments, rather than marking the end of the AI investment boom, could create new opportunities for long-term investors. Let’s break down why Nvidia, Broadcom, and Amazon remain compelling buys.

    Nvidia (NVDA)

    Nvidia’s sharp drop reflects concerns that DeepSeek’s efficiency could reduce the need for its high-performance GPUs. But several analysts believe this fear is overblown. Citi’s Atif Malik maintains a buy rating, arguing that Nvidia’s position as the leader in advanced chips gives it an enduring edge. Meanwhile, Raymond James’ Srini Pajjuri notes that any increased competition will only drive U.S. hyperscalers to double down on Nvidia’s GPUs to maintain their lead in AI.

    It’s also worth remembering Nvidia’s role in projects like Stargate, the $500 billion initiative announced last week to build out AI infrastructure in the U.S. With demand for accelerated computing expected to grow as AI use cases expand, Nvidia’s long-term prospects remain strong. For investors who missed last year’s rally, today’s sell-off may offer a rare opportunity to buy in at a discount.

    Broadcom (AVGO)

    Broadcom’s pullback today stems from similar fears about AI spending, but the company’s diversification provides a unique advantage. Its AI-related custom chips for data centers remain a vital part of its business, but Broadcom also benefits from its recent VMware acquisition, which expands its software portfolio and creates a buffer against AI-specific volatility.

    Stephanie Link of Hightower Advisors highlighted this diversification, saying Broadcom’s “non-AI businesses are troughing,” which positions the company for broader stability even as it benefits from AI growth. Analysts also emphasize the resilience of Broadcom’s partnerships with hyperscalers like Google and Amazon, which ensure its relevance in the data center space. For investors seeking exposure to AI with a side of stability, Broadcom offers a balanced opportunity.

    Amazon (AMZN)

    Amazon’s smaller decline today underscores its broader diversification beyond AI. While its AWS segment, which generated $10.4 billion in operating income last quarter, is central to AI adoption, Amazon remains a giant in e-commerce, commanding 40% of the U.S. market.

    Stephanie Link noted that Amazon’s operational improvements and focus on profitability make it an attractive buy during dips. With the long-term growth of cloud computing and AI infrastructure still intact, Amazon offers exposure to these trends without the concentrated risk seen in more AI-specific names.

    The Bigger Picture

    Disruptions like DeepSeek can create uncertainty, but they often ignite innovation and investment among market leaders. As TD Cowen’s Joshua Buchalter pointed out, “The DeepSeek moment is not the negative market is assuming.” Instead, it highlights the urgency for U.S. companies to leverage their existing advantages, which could drive even greater demand for advanced computing and cloud solutions.

    For investors willing to take a long-term view, Nvidia, Broadcom, and Amazon remain strong bets on the continued expansion of AI and cloud computing. Today’s sell-off may be unsettling, but it also offers an entry point to build positions in some of the most innovative and resilient companies in the market.

    Three Strong Conviction Buys for the Week Ahead

    By
    Editorial Staff
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    0

    Navigating the stock market can be a high-stakes game. Choose incorrectly, and your portfolio might suffer. But the right choices? They could be your ticket to financial triumph. With thousands of stocks to choose from, pinpointing those poised for success is no small feat. It’s a daunting task, requiring hours of market analysis and company research – time that many people simply don’t have.

    That’s where we come in. Each week, we delve deep into the market’s vast array of options, sifting through countless possibilities to bring you a select few. These are not just any stocks; they are carefully chosen based on solid research, current market trends, and potential for noteworthy growth.

    This week, we’ve honed in on three stocks that stand out from the crowd. Our picks go beyond the mainstream; they’re strategic selections, crafted for significant impact in both the immediate future and over the long haul.

    Read on and discover the full watchlist and unveil these exceptional stock picks.

    IBM (IBM): Positioned for Growth in Hybrid Cloud and Software

    IBM is worth a close look as it heads into its quarterly earnings report on January 29 and its investor day on February 4. The company has been strategically focusing on expanding its hybrid cloud and infrastructure software portfolio, particularly targeting large enterprise customers. This focus positions IBM to capitalize on a lucrative market, especially as businesses continue transitioning to hybrid cloud environments.

    One key factor to watch is IBM’s ability to drive sustained growth in its software segment. Software now represents a larger portion of IBM’s business mix, and the company’s success in accelerating this segment could lead to a meaningful re-rating of the stock. As the software mix improves and IBM demonstrates consistent financial performance, the potential for long-term growth becomes increasingly attractive.

    IBM’s shares are already up more than 2% this year, but there’s more room for upside if management can clearly articulate a strategy to sustain growth in software revenues. The company’s ongoing focus on software M&A to strengthen its hybrid cloud offerings further underscores its commitment to this growth path.

    For investors looking for a mix of stability and growth, IBM’s combination of software expansion, improving financials, and upcoming catalysts makes it a compelling addition to a watchlist. With earnings and investor day announcements just around the corner, now is a great time to keep this stock on your radar.

    Levi Strauss (LEVI): Poised for Growth in 2025

    Levi Strauss (LEVI), the iconic denim brand, could be set for a strong 2025, with several growth opportunities that make it a standout addition to your watchlist. Despite some challenges, including macroeconomic pressures like tariffs and currency fluctuations, the company’s strategic initiatives suggest significant potential for long-term gains.

    One of the most promising aspects of Levi Strauss’ strategy is its focus on addressing share loss in the men’s bottoms category while driving growth in the women’s segment, which is poised to become a significant catalyst for sales. Additionally, the company’s direct-to-consumer investments and optimization of its product assortment should help improve both margins and operational efficiency. Barclays has highlighted these moves as key factors underpinning their $24 price target, implying an impressive 36% upside from recent levels.

    Wholesale normalization is also expected to contribute to top-line growth, alongside streamlining efforts that could further boost productivity. Levi Strauss’ sales-to-inventory growth over the past four quarters underscores its operational improvements and ability to navigate inventory challenges.

    With shares already up about 9% over the past year, Levi Strauss has shown resilience in a tough retail environment. For investors looking for a company with strong brand recognition, strategic growth plans, and meaningful upside potential, Levi Strauss is worth serious consideration.

    Amazon (AMZN): A Dominant Force in E-Commerce and Cloud Computing

    Amazon (AMZN) is well-known for its e-commerce dominance, holding an impressive 40% share of the U.S. market, far outpacing Walmart’s 7%. In its most recent quarter, Amazon’s North American sales grew 9% to $95.5 billion, showcasing the strength of its retail business. However, the real growth engine for Amazon is its cloud computing arm, Amazon Web Services (AWS).

    AWS delivered an operating income of $10.4 billion in Q3 2024, a nearly 50% increase year-over-year. This makes AWS not only Amazon’s most profitable segment but also a critical driver of future growth. With the global cloud computing market projected to hit $2 trillion by 2030, Amazon’s 31% market share positions it as the clear leader in the space.

    The rise of AI is further fueling demand for cloud infrastructure, and Amazon is set to benefit from this trend. With a forward P/E ratio of 35, Amazon is only slightly more expensive than Microsoft (P/E 32), making it an attractive option for investors seeking exposure to cloud computing’s explosive growth potential.

    For those looking to invest in a company with proven leadership in two massive industries—e-commerce and cloud computing—Amazon remains a solid choice for long-term growth. Now could be an excellent time to consider adding this powerhouse to your portfolio.

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