Stock Watch Lists

Three Stocks You Absolutely Don’t Want to Own Right Now

March 16, 2024

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…

Super Micro Computer (SMCI)

AI’s reach extends far beyond tech, promising to boost the global GDP by a whopping $15.7 trillion by 2030, according to PwC analysts. Yet, not everyone’s buying into the AI frenzy. Some Wall Street skeptics have cast a shadow over the future of a few AI darlings, One stands out as a stock to sell or avoid.

Super Micro Computer. Following a jaw-dropping 751% rise over the past year and a 160% spike since the dawn of 2024, analysts are waving the red flag. Mehdi Hosseini from Susquehanna says SMCI could be looking at a 66% drop from its recent high.

Why the skepticism? Super Micro’s been on fire, thanks to its energy-efficient servers that are a big deal for AI data centers, not to mention its tight partnership with Nvidia. But here’s the kicker: despite forecasting a sunny fiscal 2024, history teaches us to temper our enthusiasm. Remember the cloud computing hype? Super Micro was supposed to be at the forefront, yet it didn’t quite hit the mark expected by many.

With shares sky-high and the company’s past performance in mind, it might be wise to tread carefully. Super Micro’s current valuation could be riding the AI hype wave a bit too hard. For those of you holding SMCI, it might be time to consider locking in those gains before the market does a reality check.

Lucid Group (LCID)

Lucid Group, the EV maker out of California, has been trying to carve out its niche in the electric vehicle revolution since 2007. With an assembly plant in Arizona, it’s had its sights set on becoming a major player. Recently, the stock perked up a bit, gaining 14% over the last month. However, it’s still a shadow of its former self, especially compared to its 2021 peak when shares soared above $55.

But here’s the rub: Lucid’s latest numbers aren’t painting a pretty picture. The company’s vehicle deliveries in the last quarter of the year dipped to 1,734, marking a 10% fall from the year before. Even more concerning, production saw a 32% drop, with only 2,391 vehicles built.

Revenue for Q3 tells a similar story, sliding down to $137.8 million from $195.4 million the previous year. Meanwhile, losses widened significantly, from $530.1 million a year ago to $630.8 million in the third quarter of 2023.

With demand waning, losses mounting, and the specter of shareholder dilution looming, Lucid’s current trajectory leaves much to be desired. For those holding LCID, it might be time to reassess and consider whether this stock fits into your long-term investment strategy.

Academy Sports and Outdoors (ASO)

Academy Sports and Outdoors has been under the microscope lately, and not for reasons that would excite most investors. Despite the buzz around ASO in 2023, its performance and outlook for 2024 have raised some eyebrows.

Let’s cut to the chase: ASO didn’t hit its mark in the latest quarterly earnings, posting an EPS of $1.38 against the expected $1.58. Revenue also fell short at $1.40 billion, missing the forecasted $1.44 billion and showing a 6.4% dip year-over-year.

But here’s where it gets even stickier – ASO’s financials are looking a bit shaky. With $274.83 million in cash versus a hefty $1.80 billion in debt, we’re looking at a negative cash position of -$20.56 per share. That’s a red flag waving high for financial risk.

The quick ratio isn’t doing them any favors either, sitting at a mere 0.25. This means ASO only has 25 cents in liquid assets for every dollar of current liabilities. Not exactly comforting.

And if you’re hoping for some saving grace in their free cash flow, don’t hold your breath. It’s been on a downward trend, plummeting from $970 million in 2020 to $443 million in 2022.All things considered, ASO’s current state makes it a prime candidate for our list of stocks to sell or avoid. For those holding ASO, it might be time to reassess and consider whether this small-cap stock aligns with your investment goals.

Stock Hotlist: Three Strong Conviction Buys for the Week Ahead

Editorial Staff

March 10, 2024

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.

Curious to see which stocks made the cut? Click here to access the full watchlist and discover the exceptional opportunities we’ve unearthed this week. Trust us, this is one reveal you don’t want to miss.

Cheniere Energy (NYSE:LNG): A Strong Conviction Buy Amidst Energy Transitions

In a world increasingly vocal about the shift towards green and renewable energy, Cheniere Energy, a leader in liquefied natural gas (LNG), stands out as a compelling pick. Despite the broader market’s pivot away from traditional energy sources, Cheniere’s unique position in the LNG sector makes it a stock worth watching, especially as it navigates the complexities of the current energy landscape.

As of now, Cheniere’s performance reflects the market’s cautious stance towards hydrocarbons, with shares down nearly 9% since the start of the year. Analysts project a near-term challenge, expecting sales to dip to $16.97 billion by the end of this fiscal year, a notable decrease from last year’s $20.39 billion. However, the outlook isn’t all gloomy; projections indicate a rebound to $21 billion in sales by the end of 2025, signaling potential growth on the horizon.

The political and geopolitical climate adds another layer of intrigue to Cheniere’s story. With the 2024 elections looming and the ever-present geopolitical tensions, there’s a possibility that the U.S. may reassess its stance on hydrocarbon infrastructure, potentially benefiting companies like Cheniere.

Trading at less than 4X trailing-year earnings, LNG‘s valuation appears attractive, especially when considering its unanimous strong buy rating from analysts. This valuation, coupled with the potential shifts in political and energy policies, positions Cheniere as a stock with significant upside potential.

For investors looking for a strong conviction buy, Cheniere Energy offers a unique opportunity. It’s a play that leverages the current energy transition while also hedging against potential political and geopolitical shifts. As we look ahead, LNG’s current undervaluation and the broader context suggest it’s a stock poised for a rebound, making it a standout pick for our watchlist this week.

ServiceNow (NASDAQ:NOW): A Tech Powerhouse with AI-Driven Growth

ServiceNow, a leader in the IT automation space, has been making waves with its AI-powered applications, particularly after launching a highly successful AI app in Q3 of 2023. The buzz around this app isn’t just hype; it’s backed by impressive claims from CEO Bill McDermott. In January, McDermott highlighted the company’s ability to command premium pricing for its AI offerings, attributing a 40%-50% boost in productivity levels for businesses utilizing their technology. This kind of performance is exactly why ServiceNow is poised for continued success, riding the wave of demand for top-tier AI applications.

Financially, ServiceNow is on solid ground, with its revenue seeing a 26% year-over-year increase last quarter. Looking ahead, the company is projecting a 29% jump in its income from operations for the current quarter, signaling strong financial health and operational efficiency. Adding to the optimism, Argus, a well-respected investment bank, recently upgraded its price target on NOW stock to $910 from $770, citing the anticipated benefits from ongoing enhancements to its AI app.

Over the past three months, NOW shares have seen a 10% uptick, and an even more impressive 82% surge over the last year. This momentum, coupled with the company’s strategic focus on AI and operational excellence, makes ServiceNow a standout pick for investors looking for growth in the tech sector. As businesses continue to seek out innovative solutions to drive efficiency and productivity, ServiceNow’s offerings are more relevant than ever, making NOW a strong conviction buy for the week ahead.

Vita Coco Company (NASDAQ:COCO): A Refreshing Addition to Your Portfolio

In the bustling world of beverages, where giants like Monster (NASDAQ:MNST) and Celsius (NASDAQ:CELH) dominate headlines, Vita Coco Company emerges as a refreshing under-the-radar pick. As the leading force in the coconut water market, owning over half of its total addressable market, Vita Coco offers a unique investment opportunity that’s hard to overlook.

Expanding beyond its core, Vita Coco has ventured into the burgeoning ready-to-drink alcoholic beverage sector through a strategic partnership with Diageo plc (NYSE:DEO). Their innovative spiked coconut water options are tapping into a rapidly growing market, projected to expand at a 7.5% CAGR through 2029. While the idea of coconut water mixed with Captain Morgan might not be everyone’s go-to drink, the financial potential of this niche is undeniable, and Vita Coco is poised to capture a significant share.

Financially, Vita Coco has been impressive, outperforming analyst expectations with a 4% earnings beat at the year’s end. This achievement is underscored by a staggering nearly 500% increase in yearly net income and a solid 9.4% profit margin. The success story of Monster, one of the century’s top-performing stocks, is well known, but Vita Coco’s trajectory suggests it could be on a similar path to greatness.With its dominant market position, innovative expansion into alcoholic beverages, and impressive financial performance, Vita Coco stands out as a strong conviction buy for the week ahead. This best-kept Wall Street secret is ripe for the picking, offering a tantalizing blend of growth potential and market leadership.

Three Stocks You Absolutely Don’t Want to Own Right Now

Editorial Staff

March 9, 2024

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…

Mullen Automotive (NASDAQ:MULN) – A Dilution Disaster

This EV player has become notorious for its staggering level of stock dilution, making it a risky bet for any investor’s portfolio. While Mullen has caught the eye of those looking for quick gains from potential short squeezes, let’s be real: banking on such an event is more gamble than investment strategy. The harsh truth is, the dilution will likely erode your investment well before any squeeze could offer a payoff.

To give you a sense of the dilution we’re talking about, Mullen executed a cumulative reverse split ratio of 1-for-22,500 in 2023. Yes, you read that right. It’s an almost incomprehensible level of dilution. Even in a fairy-tale scenario where Mullen morphs into the next Tesla, holding onto this stock could leave you with virtually nothing.

The company’s reliance on toxic financing methods is another red flag. In 2023, a whopping $820.4 million of Mullen’s expenses were tied up in non-cash charges, including significant stock-based compensation and goodwill impairment. Notably, CEO David Michery pocketed $48.87 million in stock awards alone last year. This approach to management compensation, at the expense of shareholder value, is a clear sign that Mullen’s leadership isn’t prioritizing the interests of its investors.

In short, Mullen Automotive is a stock to steer clear of. The company’s financial maneuvers suggest a lack of regard for shareholder equity, making it a poor choice for anyone looking for sustainable investment opportunities.

Rocket Companies (NYSE:RKT) – Time to Eject?

Rocket Companies caught many eyes with its sharp uptick during the final months of last year, fueled by bets on a housing sector revival thanks to expected rate cuts in 2024. But as we’ve stepped into the new year, RKT’s momentum has waned, and now we’re staring down a barrel of interest rate uncertainties. The big question on everyone’s mind: Will the Fed cut rates at all this year? And the answer seems to be leaning towards a ‘maybe not.’

But wait, there’s more. It’s not just the interest rate roulette that’s putting RKT under the microscope. Citi analysts threw in a curveball this January, downgrading RKT to a “sell” due to valuation concerns. Despite a slight dip, RKT’s still trading at a hefty 38.4 times forward earnings, a figure that seems to bake in a mortgage demand rebound as if it were a done deal.

Given these factors, it might be wise to heed Citi’s advice. If you’re holding RKT, now could be the time to consider locking in any gains and stepping aside. With the current market dynamics, it’s better to play it safe than sorry.

Levi Strauss (NYSE:LEVI) – Time to Unravel This Position

Alright, let’s talk about Levi Strauss, the iconic denim brand that’s become a bit of a drag on portfolios. Despite a 12% uptick this year, LEVI‘s performance over the past five years tells a different story, with shares down 17%. It seems the brand’s allure is fading as consumers turn elsewhere for their denim and casual wear needs, a trend mirrored in a series of disappointing earnings reports.

The latest news from Levi Strauss isn’t exactly confidence-inspiring either. The company recently announced a significant restructuring plan, including slashing 10% of its global workforce in an effort to streamline operations. This move is expected to affect up to 15% of its corporate staff, out of more than 19,000 employees at the end of last year. Coming off the back of mixed financial results and lukewarm guidance for 2024, where revenue growth is anticipated to be a meager 1% to 3%—well below the 4.7% analysts were hoping for—it’s clear that Levi’s is bracing for a tough year ahead.

Given these developments, it might be wise to consider whether LEVI still deserves a spot in your investment lineup. With the company facing headwinds and the stock’s long-term decline, now could be the right time to fold this position and look for more promising opportunities elsewhere.

Three Stocks That Could Split Following Walmart’s Lead

Editorial Staff

March 5, 2024

When Walmart (NYSE:WMT) announced its 3-for-1 stock split, the market took notice. It was a move that hadn’t been seen from the retail giant in over two decades, instantly tripling shareholders’ stock count while keeping the market cap steady. This strategic decision not only grabbed headlines but also sparked conversations about which companies might be next in line for similar announcements in 2024.

A stock split, for those new to the concept, is when a company divides its existing shares into multiple ones to increase share liquidity. While this multiplies the number of shares available, it doesn’t change the company’s overall valuation; it simply makes each share more affordable and, therefore, more accessible to a wider pool of investors. It’s a tactic often employed to attract more shareholders, including making the stock more attainable for company employees, as was the case with Walmart.

Given Walmart’s bold move, the spotlight now turns to other high-flying stocks that could benefit from making their shares more accessible. The three companies highlighted below are prime candidates for stock splits in the coming year, each with its own compelling reason for potentially following Walmart’s lead.

Broadcom (NASDAQ:AVGO)

Broadcom stands out as a prime candidate for a stock split in 2024, potentially following in the footsteps of tech giants like Amazon and Alphabet, which made similar moves two years ago. With its share price hovering just under $1,350, Broadcom is perfectly positioned for a split. The stock has seen an impressive rally, climbing 135% in the past year and an astonishing 412% over the last five years. This growth trajectory mirrors the original Broadcom, which experienced three stock splits since its inception in 1991 before being acquired by Avago in 2016. Despite the change in ownership, the company retained the Broadcom name and ticker symbol but has not split its shares since the acquisition.

Broadcom’s aggressive expansion strategy, marked by significant acquisitions in the software sector—including notable names like CA, Symantec, and Brocade—underscores its ambition. The recent completion of its VMWare acquisition last November further solidifies its position in the tech landscape. The company’s focus on network and server solutions optimized for artificial intelligence (AI), coupled with its development of AI chips, positions it at the forefront of this rapidly growing sector. With AI-related revenues hitting $1.5 billion last quarter, Broadcom’s influence in the tech world is undeniable.

As Broadcom edges closer to trillion-dollar status, a stock split seems like a logical step to enhance accessibility for investors. Making AVGO stock more attainable could broaden its appeal and potentially fuel further growth, making it a stock to watch closely in 2024.

Microsoft (NASDAQ:MSFT)

Microsoft, a name synonymous with innovation and resilience in the tech world, is currently trading at a relatively approachable $404 per share. Despite being the most affordable of the trio we’re spotlighting, whispers of a potential stock split are growing louder. With a history of nine splits, the last one dating way back to 2003, the idea isn’t far-fetched. Since its last split, MSFT has seen an astronomical growth of 1,560%, and when you factor in reinvested dividends, the total return skyrockets to nearly 2,600%—a stark contrast to the broad market index’s 812% total return.

The recent second-quarter earnings report only adds fuel to the speculative fire. Microsoft announced an 18% increase in sales from the previous year, reaching $62 billion, largely thanks to the integration of AI across its product range and services. CEO Satya Nadella highlighted that half of the Fortune 500 companies are now utilizing Microsoft’s Azure AI models, with the cloud services platform boasting 53,000 AI customers. This isn’t just growth; it’s a testament to Microsoft’s deepening footprint in the AI and cloud computing arenas.

Sitting at the pinnacle of the market with a $3.1 trillion valuation, Microsoft’s financial health is nothing short of robust. With $81 billion in cash reserves and a 33% increase in profits from the previous year, reaching $22 billion, Microsoft is a juggernaut powering through the tech sector. Whether or not a stock split is on the horizon, MSFT’s performance is a beacon for investors seeking a blend of stability and explosive growth potential in their portfolios.

Ulta Beauty (NASDAQ:ULTA)

At a glance, Ulta Beauty’s current share price of $551 might seem steep, but this powerhouse in the personal care and cosmetics industry is showing all the signs of being ripe for a stock split. As the largest specialty beauty retailer in the U.S., with a sprawling network of nearly 1,375 stores across all 50 states, Ulta has carved out a significant niche for itself in the retail sector.

The company’s approach to shareholder value is notably aggressive, focusing on share repurchases over dividends. Following its fiscal third-quarter report, Ulta announced an increase in its share buyback program to $950 million, up from the previously planned $900 million. This move underscores the company’s robust financial health and its commitment to enhancing shareholder value. A stock split could further democratize ULTA stock, making it as accessible as the beauty products lining its shelves.

The beauty industry is known for its resilience, often thriving regardless of the economic climate. This phenomenon, known as the Lipstick Effect, highlights how consumers gravitate towards smaller luxuries, like beauty products, even in tougher times. Ulta Beauty stands at the intersection of this enduring demand, offering an array of affordable luxuries to consumers.

Since going public in 2007, Ulta Beauty has delivered staggering returns of over 1,603%, dwarfing the S&P 500’s 239% return in the same period. Lowering its stock price through a split could open the doors to a broader investor base, eager to partake in the company’s continued growth story. With its solid track record and strategic positioning, Ulta Beauty is not just selling beauty products; it’s offering investors a chance to own a piece of a resilient and flourishing business.

Triple Your Investment? These Stocks Might Just Do It

Editorial Staff

March 4, 2024

Typically, our focus leans towards the stability of blue-chip and high-quality growth stocks. But with the market reaching record highs this week, there’s no better time to consider some of the lesser-known hidden gems of the stock market – penny stocks.

While they often fly under the radar for most investors, these emerging businesses hold the potential for significant growth, especially when industry or company-specific catalysts come into play.

Yes, they’re riskier, but with just a small slice of your portfolio dedicated to them, they could be the spark that ignites extraordinary returns.

In this watchlist, we’re spotlighting three penny stocks that aren’t just about hype; they’re about solid fundamentals and real potential. These are stocks I’d comfortably hold for the next three years, confident in their ability to weather the market’s ups and downs.

And here’s the exciting part: if these companies stay on their upward trajectory, we’re looking at the possibility of multi-bagger returns.

Intrigued? Let’s dive into why these penny stocks could be your ticket to significant gains.

Standard Lithium (NYSE:SLI)

Standard Lithium stands out as a remarkably undervalued player in the lithium market. With a market capitalization of just $235 million, SLI is positioned as a potential multi-bagger in the next few years. The current low in SLI’s stock price is primarily due to a recent dip in lithium prices. However, looking ahead, the demand for lithium, driven by the electric vehicle (EV) boom, paints a bright future.

What makes Standard Lithium particularly compelling is its groundbreaking asset in Arkansas, where the company has tapped into one of the richest lithium brine sources. This asset alone boasts a net present value of $4.5 billion, highlighting the significant undervaluation of SLI stock. And remember, this is just one of their projects.

The real game-changer for SLI, I believe, will be securing financing for project construction. Once this piece falls into place, coupled with an uptick in lithium prices, we could very well see SLI’s stock soar. This is a stock with solid fundamentals and a clear path to growth, making it a prime candidate for those looking to potentially triple their investment.

Bitfarms (NASDAQ:BITF)

Bitfarms Ltd, a leading Bitcoin (BTC-USD) mining company headquartered in Canada, is capturing the attention of investors looking for exposure to the cryptocurrency market. As Bitcoin’s price soared throughout 2023 and continued its impressive performance into the first quarter of 2024, surpassing the $61,000 mark, Bitfarms has been reaping the benefits of this bullish trend.

Operating 11 Bitcoin farms, Bitfarms contributes significant computational power to mining pools, receiving Bitcoin as payment. The company’s productivity is notable, having generated 446 Bitcoin in December and an additional 357 in January. On average, Bitfarms mines 11.5 Bitcoins daily, translating to daily revenue of approximately $700,000 at current prices.

Bitfarms adopts a strategic approach to its Bitcoin holdings, typically selling the Bitcoin it mines monthly. However, it maintains a substantial treasury, currently over 800 Bitcoin, valued at around $49 million. This reserve not only underscores the company’s financial health but also its potential to leverage market upswings.

The surge in Bitcoin’s price by 46% in 2024 positions BITF as an attractive investment opportunity, especially with its stock price hovering below $3. The stock has witnessed a remarkable 200% increase over the last 12 months, reflecting investor confidence and the company’s growing profitability in the crypto mining industry.

For investors intrigued by the dynamics of cryptocurrency and looking for stocks with significant upside potential, Bitfarms offers a compelling case. Its robust mining operations, strategic Bitcoin treasury management, and the favorable crypto market trend make BITF a standout pick for those aiming to diversify into digital currency mining.

Yatra Online (NASDAQ:YTRA)

Currently valued at around $103 million, Yatra is an intriguing pick from India’s burgeoning online travel booking sector. This company isn’t just a speculative play; it’s a bet on a potential 10-fold return, underpinned by several compelling factors.

Let’s start with the big picture: India’s travel and tourism sector is on a rapid growth trajectory. Thanks to an expanding middle class and a flourishing corporate world, Yatra finds itself in a sweet spot with ample opportunities for growth.

Zooming in on the details, Yatra boasts a client base of 800 large corporations, tapping into an employee pool of over seven million in the business-to-business segment alone. But that’s not all – Yatra also caters to individual travelers with its comprehensive range of business-to-consumer travel solutions.

In terms of performance, Yatra’s Q2 2024 results are promising, showing a 14% year-on-year revenue increase and a healthy EBITDA margin of 3.6%. Looking ahead, I anticipate an acceleration in revenue growth and further margin improvement as the travel industry rebounds post-pandemic. Yatra is strategically positioned to capitalize on these positive industry trends, making it a prime candidate for those seeking substantial returns.

Stock Hotlist: Three Strong Conviction Buys for the Week Ahead

Editorial Staff

March 3, 2024

Hershey (HSY): Ready for a Turnaround

Let’s talk about Hershey (HSY), a name that’s been somewhat of an underdog in the past year but is now showing signs of a delicious turnaround. Despite the broader market reaching new heights, Hershey has had its share of ups and downs, with a nearly 17% slide over the last 12 months. However, the tide seems to be turning for this chocolate giant, and here’s why it deserves a spot on our Strong Conviction Watchlist.

First off, Hershey’s recent performance has been a bit of a rollercoaster, but with a positive twist. After posting fourth-quarter adjusted earnings that blew past analyst expectations, shares jumped 4% in a single day. This kind of momentum, even if it faced a slight pullback, signals that Hershey is more resilient than many might have thought. It’s not just about the numbers, though; it’s about what’s driving them.

Analysts, including those from AllianceBernstein, have started to see Hershey in a new light, upgrading it to an outperform rating earlier this January. The reasons? Attractive valuation and a trajectory of continued top-line growth. Hershey isn’t just resting on its laurels; it’s actively leveraging its pricing power and innovation to push the envelope in the confectionery space. Whether it’s through expanding its core offerings or exploring potential acquisitions, Hershey is all about sweetening its portfolio and, by extension, its appeal to investors.

What’s particularly compelling about Hershey is its blend of stability and growth potential. In a market where equities are generally seen as expensive, Hershey stands out as a value play with the added bonus of upside potential. The consensus among analysts suggests an 8% upside, but given Hershey’s recent strides, there’s room to believe that the actual growth could be even more appetizing.

In essence, Hershey represents a unique opportunity in today’s market. It’s a stock that’s been overlooked but is now poised for a comeback. With its solid fundamentals, strategic growth initiatives, and a favorable market position, Hershey is shaping up to be a strong conviction buy for investors looking to diversify with a stock that offers both security and growth. Keep an eye on HSY; this could very well be the week it starts to outperform expectations, making it a sweet addition to any investment watchlist.

Global Payments Inc (GPN): A Hidden Gem in the Payments Space

As we gear up for another week of earnings reports, there’s one stock that’s flying under the radar but deserves your full attention: Global Payments Inc (GPN). With its earnings call slated for February 14th, this payment processing powerhouse is poised for what could be a pivotal moment. And here’s the kicker: it’s not just any stock gearing up for an earnings reveal; it’s a stock that’s been tagged as undervalued and underappreciated by those in the know.

Bank of America’s analyst Jason Kupferberg is not just optimistic about GPN; he’s doubling down on it. Why? For starters, Global Payments isn’t your average payment processor. It boasts a unique edge with a hefty portfolio of owned software assets in niche verticals, setting it apart in a crowded field. This competitive differentiation is a key reason why Kupferberg and his team see GPN as a standout buy, especially for those willing to play the long game.

But there’s more to the story than just unique assets. The company has been making moves on the management front, with changes announced in 2023 that signal a more conservative approach to earnings. This strategy shift is something the market is expected to welcome with open arms. Plus, there’s an analyst day on the horizon that’s anticipated to act as a significant positive catalyst for the stock.

Despite a modest 7% uptick this year, the sentiment around GPN remains bullish. It was highlighted as a top pick in Bank of America’s Year Ahead ’24 report, thanks to its growth profile, competitive positioning, and, let’s not forget, an attractive valuation pegged at 11.4x ’24 P/E. The tech-led offerings, a strong portfolio of software assets, and a focus on lucrative SMB volume are what make Global Payments a source of competitive differentiation.

As we edge closer to February 14th, keep a close eye on GPN. With expectations of a conservative yet strategic approach from the new CEO, the upcoming earnings could very well be the catalyst that shifts Global Payments from underappreciated to fully valued. For those looking for a tech-forward company in the financial space with solid growth potential, Global Payments Inc might just be the opportunity you’ve been waiting for.

Tesla (TSLA): Poised for a Future Beyond Today’s Volatility

Tesla (TSLA) finds itself at a pivotal moment early in 2024, with its stock down nearly 20% following an earnings report that fell short of expectations. Despite these challenges, including a warning about stagnant vehicle volume growth, the narrative around Tesla remains deeply compelling for forward-looking investors.

Cathie Wood of Ark Invest continues to champion Tesla, seeing the recent dip as a buying opportunity. Her optimism is rooted in Tesla’s potential to revolutionize transportation with autonomous taxi networks expected within the next two years. This innovation could significantly enhance Tesla’s growth and profitability.

Wood’s vision extends to a future dominated by electric vehicles and robotaxis, with Tesla at the forefront. She maintains a bold prediction for Tesla’s share price to reach $2,000 in five years, suggesting a transformative impact on its market valuation.

Despite recent setbacks, including losing the top global EV seller spot to China’s BYD, Tesla’s fundamentals and future prospects suggest the current stock price dip may offer an attractive entry point for investors. The stock’s 14-day relative strength index (RSI) of 24.6 indicates an oversold condition, hinting at potential for a near-term recovery.

Analysts currently have a consensus ‘Hold’ rating on Tesla, but the anticipated 14.5% upside reflects a broader belief in the company’s capacity to rebound. Tesla’s journey in 2024 has been marked by price cuts and cautious growth forecasts, yet its long-term vision for electrification and autonomous mobility remains as compelling as ever.

For those looking beyond the immediate turbulence, Tesla represents an investment in the future of transportation. With its commitment to innovation and sustainability, Tesla stands out as a strong conviction buy for the week ahead. The company’s ability to navigate short-term challenges while laying the groundwork for future success offers a unique blend of risk and opportunity for long-term investors.

Three Cheap Stocks to Load Up On in March

Editorial Staff

February 29, 2024

In the world of investing, finding a bargain can feel like striking gold. But, as any seasoned investor knows, not all “cheap” stocks are worth your time or money. It’s like comparing a $5 steak to a prime cut at a discount – only one offers real value for your buck. With the market reaching new heights, spotting those prime cuts at sale prices becomes even more crucial.

Here are three consumer stocks that are not just trading at what seems like a bargain but also pack a punch in terms of potential long-term value. From a tobacco giant with a juicy dividend to a tech behemoth redefining commerce and a rising star in e-commerce, these picks are poised to offer more than just a good deal.

1. Altria (MO)

Altria, the powerhouse behind some of the most recognized tobacco brands, might give off the vibe of a $5 steak with its share price on a downward trend. But, dig a little deeper, and you’ll find a company with a resilient core business and a nearly 10% dividend yield that screams sustainability. With a forward-looking approach, Altria is diversifying its revenue streams, venturing into smokeless alternatives like Njoy and On!, and even holding a significant stake in Anheuser-Busch InBev. Trading at 8 times earnings, Altria offers a compelling entry point for investors willing to bet on its future beyond cigarettes.

2. Amazon (AMZN)

Amazon’s 70% surge over the past year might raise eyebrows at the mention of “bargain.” Yet, Amazon’s relentless reinvestment into growth areas – from dominating e-commerce and cloud services to making strides in media and advertising – underscores its unique value proposition. With a 38% e-commerce market share in the U.S. and a leading position in cloud services globally, Amazon’s expansive strategy continues to fuel its ascent. Despite its current valuation, Amazon’s aggressive growth and diversification efforts make it a bargain in the eyes of forward-thinking investors.

3. Coupang (CPNG)

Coupang, often dubbed the “Amazon of South Korea,” has carved out a significant niche in the e-commerce landscape. With a 99% next-day delivery rate and ventures into grocery, meal delivery, and media services, Coupang is not just a leader in South Korea but also expanding its footprint in Taiwan. This expansion opens up a new market of 23 million potential customers, on top of its already impressive 20 million active customer base. Trading at just 10 times its operating cash flow – half of Amazon’s ratio – Coupang’s financial health and growth trajectory make it an undervalued gem deserving of investor attention.

Wrapping Up

While the allure of low-priced stocks can be tempting, discerning investors know that true value lies in understanding the potential behind the price tag. Altria, Amazon, and Coupang represent unique opportunities to buy into companies with solid fundamentals, strategic growth initiatives, and the potential to deliver significant returns over the long haul. As always, do your homework and consider these picks as part of a diversified investment strategy.

Three Undervalued Growth Stocks With Massive Upside Potential

Editorial Staff

February 28, 2024

In the ever-shifting stock market landscape, uncovering an undervalued growth stock is like finding hidden treasure. These stocks, often overlooked, hold the potential for substantial long-term gains, offering a unique blend of safety and opportunity for savvy investors.

Our latest watchlist focuses on these unheralded market players. While some have already shown impressive growth in the past five years, they still present enticing opportunities for future returns:

Oracle (NYSE:ORCL) – A Strong Contender in Cloud Computing and AI

Performance Overview: Oracle’s stock has shown impressive growth, more than doubling in the past five years and climbing 12% year-to-date.
Cloud Computing Success: A significant driver of Oracle’s success is its cloud computing segment, now accounting for over a third of its total revenue. This shift towards cloud services has been a key growth catalyst.
Recent Financials: In the first quarter of fiscal 2024, Oracle reported a 9% increase in revenue year-over-year. Notably, its cloud revenue surged by 30% compared to the same period last year, highlighting the company’s strong position in this sector.
Generative AI Focus: Chairman and CTO Larry Ellison has emphasized the potential of Generative AI, considering it a groundbreaking technology. Oracle’s focus on this area positions it at the cutting edge of computer technology innovation.
Efficient Cloud Infrastructure: The company’s Gen2 Cloud is witnessing strong demand and accelerated bookings. It stands out for its efficiency, reportedly training AI models twice as fast and at half the cost.
Future Prospects: As the demand for artificial intelligence solutions grows, Oracle’s strategic positioning in this domain suggests a promising future.
Investment Appeal: With a reasonable P/E ratio of 34 and a dividend yield of 1.4%, Oracle presents a balanced investment opportunity combining growth potential with income generation.

Fortinet (NASDAQ: FTNT) – A Resilient Player with Long-Term Potential

Stock Trajectory: Fortinet’s shares have experienced volatility, peaking in August before declining by about 35% from their all-time high. Despite recent fluctuations, the stock is up 21% year-to-date and has grown 250% over the past five years.
Financial Performance: Despite issuing conservative guidance in recent quarters, Fortinet’s financials remain strong. The company reported a 16.1% increase in revenue year-over-year in Q3, with net income rising by 39.4%, leading to a robust 24.2% profit margin.
Valuation: Currently, Fortinet trades at a P/E ratio of 35, significantly lower than earlier in the year when it was above 60. The forward P/E ratio stands at 29, indicating a more reasonable valuation.
Billing Growth Concerns: A key issue for Fortinet is the slowing growth in billings, which only increased by 5.7% year-over-year in Q3, a marked decrease from the usual 30%+ growth rates. This slowdown could signal reduced demand and potential future revenue declines.
Outlook for 2024: If market conditions for Fortinet improve in the latter half of 2024, the stock has the potential for a significant rebound, making it a compelling option for investors with a long-term perspective.

Perion (NASDAQ:PERI) – A Hidden Gem in Ad-Tech with Strong Growth Prospects

Consistent Growth: Perion, an ad-tech company, consistently delivers double-digit year-over-year growth in revenue and earnings. In the third quarter, the company reported a 17% increase in revenue and a 28% rise in net income.
Financial Health: The company boasts a healthy 17% profit margin and shows potential for increased market share.
Attractive Valuation: Perion’s shares are attractively valued, trading at 8 times earnings and with a price-to-earnings-growth ratio (PEG) of just 0.40.
Stock Performance: The stock is down 20% year-to-date but has surged by nearly 900% over the past five years.
Price Dynamics: Perion’s shares have seen a 52-week high of $42.75 but are currently trading around $24. This presents a potential 65% upside if the stock returns to its all-time high.
Outlook: Given Perion’s strong earnings reports and low valuation, the likelihood of the stock reaching or surpassing its all-time high in the near future is high, making it an attractive pick for investors seeking growth at a reasonable price.

Three Stocks for Under $15

Editorial Staff

February 22, 2024

In today’s world, where $15 barely covers a decent meal out or a small bag of groceries, it’s hard to imagine that the same amount could actually work harder for you. But here’s a little secret I’ve discovered: investing that $15 in the right places can open up a world of potential. That’s why I’ve put together this watchlist. It’s a collection that proves you don’t need to be a millionaire to make smart moves in the stock market.

You see, once a stock crosses that $10 mark, it’s like a rite of passage—it moves from the wild west of penny stocks into a zone where companies are often seen as more stable, more credible. But just because they’re a bit more grounded doesn’t mean they’ve lost their capacity for growth. On this list, I’ve focused on stocks that aren’t just affordable; they’re solid, with fundamentals strong enough to potentially turn that modest investment into something much more significant.

So, let’s dive into these three stocks. They’re more than just numbers on a screen; they represent companies with the kind of potential that makes even a small investment worth considering. And in 2024, finding value like this feels more important than ever.

Ford Motor Company (NYSE: F)

As we navigate through a world increasingly leaning towards sustainability, Ford’s journey into the electric vehicle (EV) market has been nothing short of a rollercoaster ride. With the automotive giant’s hefty pivot towards electrification, skeptics had their doubts, worrying that Ford’s traditional strengths might be overshadowed by the challenges of embracing new tech. Yet, Ford’s recent earnings tell a story of resilience and unexpected success.

Despite the growing pains associated with such a monumental shift—highlighted by CEO Jim Farley’s candid remarks on the competitive pricing pressures facing EVs—Ford has demonstrated a remarkable ability to exceed Wall Street’s expectations. The latest earnings release was a testament to Ford’s enduring strength, beating both sales and profit forecasts. This achievement is particularly noteworthy as it signals Ford’s capability to manage the delicate balance between its pioneering EV ambitions and its core automotive business.

The road ahead for Ford is undoubtedly filled with challenges, especially as it navigates the competitive and cost-sensitive landscape of EVs. However, the company’s recent performance is a beacon of hope, suggesting that Ford is not only surviving but potentially thriving amidst the transition. For investors looking for a stock under $15 with high potential, Ford presents a compelling narrative of transformation, resilience, and the promise of future growth as it redefines its legacy in the automotive industry.

CNH Industrial (NYSE: CNHI)

In the vast and varied landscape of the stock market, CNH Industrial emerges as a fascinating blend of agricultural prowess and construction capability. This unique combination becomes particularly intriguing against the backdrop of Caterpillar’s (NYSE: CAT) recent stellar performance, a beacon for the construction industry’s robust appetite and resilience.

Caterpillar’s success story, marked by its ability to push through higher prices without deterring demand, casts a promising light on CNH Industrial. With approximately 20% of its revenue steaming from its construction equipment segment, CNH Industrial is positioned in a sweet spot that leverages the current industry momentum. Yet, it’s the company’s agricultural equipment, especially its large tractors, that anchors its core strength, providing a stable foundation amidst the cyclical nature of construction markets.

What truly sets CNH Industrial apart, however, is its financial attractiveness and operational efficiency. Sporting a P/E ratio that outshines 83% of its peers, CNH Industrial is a standout for value investors seeking performance without the premium price tag. Moreover, the company’s track record of generating returns on investment that exceed its cost of capital (WACC vs. ROIC) is a testament to its strategic and effective management.

In a world where finding well-run companies at a reasonable price is becoming increasingly challenging, CNH Industrial represents a compelling opportunity. Its blend of agricultural and construction revenue streams, combined with a history of prudent financial management, positions it as a high-potential stock under $15 worth watching. As we continue to explore opportunities that blend traditional industries with modern efficiency, CNH Industrial stands out as a beacon of potential in a transforming world.

Antero Midstream (NYSE: AM)

Navigating the energy sector’s turbulent waters requires a keen eye for opportunity and a stomach for risk, qualities that Antero Midstream embodies as it charts a course through 2024’s uncertain energy landscape. In an industry where the only constant is change, Antero Midstream stands out as a growth-oriented beacon, poised to leverage shifts that could unsettle less agile competitors.

The energy sector’s future may be as unpredictable as the weather, but Antero Midstream’s strategic positioning allows it to ride the waves of change rather than be swamped by them. The escalating tensions in the Middle East are a case in point. Such geopolitical shifts have the power to dramatically alter the energy supply landscape, potentially propelling companies like Antero Midstream into advantageous positions almost overnight.

In a move that underscores its growth ambitions while appealing to a broader investor base, Antero Midstream recently announced an upsized $600 million offering of senior notes. This strategic financial maneuver not only strengthens the company’s balance sheet but also signals a commitment to security and stability, traits that are bound to attract conservative investors looking for safer harbors in the energy storm.

But it’s not just the promise of growth or the allure of stability that makes Antero Midstream a compelling pick; it’s also the company’s generous dividend yield of 7.5%. In a world where reliable income streams are increasingly prized, this aspect of Antero Midstream’s offering shines brightly, offering a beacon of value to income-focused investors navigating the choppy seas of the stock market.

As we round out our watchlist, Antero Midstream represents a unique blend of growth potential, strategic foresight, and income generation, making it a standout choice for those looking to energize their portfolios without breaking the bank.

Stock Hotlist: Three Strong Conviction Buys for the Week Ahead

Editorial Staff

February 18, 2024

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.

SurgePays Inc (SURG): Turning Losses into Gains

SurgePays Inc (NASDAQ:SURG) is capturing attention this week, for its remarkable financial turnaround and strategic positioning in the fintech and wireless sectors. After navigating through a challenging period, SurgePays has emerged stronger, showcasing a significant transformation from deep losses to solid gains, making it a compelling pick for our list.

In the third quarter of 2023, SurgePays made headlines with its net income soaring to $7.1 million, a stark contrast to the $13.5 million net loss reported in the same period the previous year. This dramatic shift is a testament to the company’s strategic realignment and operational improvements, highlighting its resilience and adaptability in a competitive landscape.

The company’s gross profit saw an astronomical 446% increase in Q3 2023, reaching $10.5 million up from $1.9 million in Q3 2022. This leap in gross profit underscores SurgePays’ enhanced operational efficiency and its adeptness at capitalizing on market opportunities. Moreover, the expansion of the gross margin to 30.7% from a mere 5.3% within the same quarter reflects a significant improvement in profitability across its business segments.

Despite a slight 6% dip in overall revenue to $34.2 million in Q3, SurgePays’ core business segments, particularly wireless and fintech, experienced a revenue increase of over $2 million. This growth within its primary operations indicates a robust foundation for sustainable growth, even amidst fluctuating market conditions.

SurgePays’ focus on high-margin products and operational optimization is a strategic move that positions the company for continued profitability and growth. As SurgePays navigates the complexities of the fintech and wireless markets, its recent financial achievements signal a company on the rise, making SURG a stock to watch closely. For investors looking for a company with a proven track record of turning challenges into opportunities, SurgePays Inc offers a promising and potentially rewarding option.

Bruker Corp (BRKR): A Niche Leader Poised for Growth

Bruker Corp (NASDAQ:BRKR) stands out as a compelling pick for those looking to diversify into the life sciences sector. Known for its specialized lab equipment, including the critical nuclear magnetic resonance (NMR) spectroscopy machines, Bruker has carved out a dominant position in several key product lines. This expertise has not only established BRKR as a leader in its niche but also as a company with a solid foundation for growth.

After a period of slowed sales, attributed to the pandemic’s impact on academic and biotech spending, Bruker has turned a corner. The company recently reported excellent earnings, signaling a return to form and highlighting its resilience and adaptability. This rebound is a testament to the underlying strength of Bruker’s business model and its critical role in the life sciences ecosystem.

Adding to its appeal, Bruker’s “BEST” division (Bruker Energy & Supercon Technologies) introduces an exciting dimension to the company’s portfolio. While smaller in scale, BEST is on a rapid growth trajectory, fueled by burgeoning interest in superconductors. 2023 has seen a surge in attention towards superconductors’ potential, particularly in renewable energy and electronics, areas where Bruker is already making significant inroads. This focus underscores Bruker’s ability to not just innovate within its traditional markets but also to expand its technological footprint into emerging sectors.

Bruker’s foray into superconductors, initially developed for its lab equipment, now finds broader applications, marking the company as a significant player in this advanced technology space. This diversification, coupled with the recent earnings surge, positions BRKR as an attractive investment. As shares trend upwards, reflecting the company’s strong performance and promising outlook, Bruker represents a unique opportunity for investors seeking exposure to a company with deep scientific expertise and a forward-looking growth strategy.

In summary, Bruker Corp emerges as a strong conviction buy, offering a blend of established market leadership and innovative growth avenues. For those looking to invest in a company at the intersection of traditional life sciences strength and cutting-edge technology, BRKR is a stock worth watching.

Okta Inc (OKTA): Securing Digital Identities in a Cyber-centric World

Okta Inc (NASDAQ:OKTA), a frontrunner in the cybersecurity arena, known for its innovative approach to safeguarding digital identities. As we navigate an increasingly online world, the importance of robust digital security cannot be overstated, making OKTA a compelling pick for our watchlist.

Okta’s latest venture into AI-powered Identity Threat Protection is a game-changer. This cutting-edge solution acts as a digital guardian, ensuring that user sessions are shielded from any potential threats. What makes Okta stand out is its ability to harness artificial intelligence, elevating security measures to a level that’s not just reactive but proactive.

The beauty of Okta lies in its unified security platform. In a domain as complex as cybersecurity, Okta simplifies the management of digital protections, making it both efficient and effective. This ease of use, combined with the company’s comprehensive approach to security, positions Okta as a leader in the field.

Moreover, Okta’s commitment to educating the public about cybersecurity reflects its dedication to not just selling a product but fostering a safer digital environment. This educational initiative complements its technological offerings, creating a well-rounded approach to digital security.

In essence, Okta Inc represents a unique investment opportunity. Its focus on AI-driven security solutions, coupled with a user-friendly platform and a commitment to cybersecurity education, sets it apart in a crowded market. For investors looking to tap into the growing demand for digital security, OKTA presents a compelling case as a strong conviction buy.

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Vita Coco Company (NASDAQ:COCO): A Refreshing Addition to Your Portfolio

Mullen Automotive (NASDAQ:MULN) – A Dilution Disaster

Rocket Companies (NYSE:RKT) – Time to Eject?

Levi Strauss (NYSE:LEVI) – Time to Unravel This Position

Broadcom (NASDAQ:AVGO)

Microsoft (NASDAQ:MSFT)

Ulta Beauty (NASDAQ:ULTA)

Standard Lithium (NYSE:SLI)

Bitfarms (NASDAQ:BITF)

Yatra Online (NASDAQ:YTRA)

Hershey (HSY): Ready for a Turnaround

Global Payments Inc (GPN): A Hidden Gem in the Payments Space

Tesla (TSLA): Poised for a Future Beyond Today’s Volatility

1. Altria (MO)

2. Amazon (AMZN)

3. Coupang (CPNG)

Oracle (NYSE:ORCL) – A Strong Contender in Cloud Computing and AI

Fortinet (NASDAQ: FTNT) – A Resilient Player with Long-Term Potential

Perion (NASDAQ:PERI) – A Hidden Gem in Ad-Tech with Strong Growth Prospects

Ford Motor Company (NYSE: F)

CNH Industrial (NYSE: CNHI)

Antero Midstream (NYSE: AM)

SurgePays Inc (SURG): Turning Losses into Gains

Bruker Corp (BRKR): A Niche Leader Poised for Growth

Okta Inc (OKTA): Securing Digital Identities in a Cyber-centric World

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