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Bear Watch Weekly: Stocks to Sideline Now

By
Editorial Staff
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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

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Editorial Staff
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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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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.

Bear Watch Weekly: Stocks to Sideline Now

By
Editorial Staff
-
0

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

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

They’re pure portfolio poison.

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

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

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

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

Rigetti Computing (RGTI): Overvalued and Burning Cash

Rigetti Computing (RGTI) has seen its stock price plunge 50% from recent highs, but this isn’t necessarily a dip worth buying. While quantum computing remains an exciting frontier, Rigetti’s financials and valuation suggest it’s a stock to avoid.

Rigetti generated less than $12 million in revenue over the past year, while burning $60 million in cash—a significant mismatch that raises questions about the company’s long-term viability. Even after its steep drop, Rigetti’s market capitalization sits at $2.8 billion, translating to an eye-watering price-to-sales (P/S) ratio of 234. This lofty valuation is hard to justify, especially given the lack of consistent demand for its services and the broader industry consensus that quantum computing is still decades away from widespread utility.

CEO Jensen Huang of Nvidia recently highlighted quantum computing’s potential but tempered expectations by stating the technology won’t be broadly useful for at least two decades. This reality has likely fueled recent sell-offs in Rigetti and other quantum computing stocks as investors recalibrate their timelines and expectations.

Rigetti’s balance sheet also presents a major concern. With just $20 million in cash on hand and a high cash burn rate, the company faces liquidity challenges in the near term. Without significant improvements in revenue generation or access to additional funding, its ability to survive long enough to capitalize on quantum computing’s potential remains in doubt.

While the promise of quantum computing is undeniable, Rigetti’s current financial and operational metrics make it a high-risk investment. For now, this is a stock best avoided.

Workiva (WK): Regulatory Uncertainty Raises Concerns

Workiva (WK) saw its stock drop significantly lat week, sparked by reports of potential changes to the European Union’s (EU) sustainability reporting standards. This development has rattled investors, as Workiva’s platform for tracking and submitting non-financial metrics under the EU’s Corporate Sustainability Reporting Directive (CSRD) has been a key driver of its growth strategy.

The CSRD, which went into effect in January 2023, has created a significant market for Workiva’s services. However, if the EU moves to ease reporting requirements, Workiva could face a considerable shortfall in anticipated sales. While the extent of potential policy changes remains unclear, reports of regulatory easing in the EU have led to concerns that one of Workiva’s primary growth drivers could weaken.

The company is set to release its fourth-quarter earnings on February 25, which may shed more light on its exposure to possible regulatory shifts. Until there’s more clarity, the uncertainty surrounding Workiva’s growth prospects, coupled with its sharp stock price decline, makes this a risky hold for investors.

For those concerned about portfolio stability, Workiva’s dependence on evolving government policies could create continued volatility. It’s a stock worth avoiding for now.

Trump Media (DJT): Lofty Valuation with Uncertain Fundamentals

Trump Media (DJT) saw its stock tumble 18.3% last week, underperforming broader market gains of 1.7% for the S&P 500 and 1.6% for the Nasdaq. This sharp pullback highlights the risks associated with a business heavily reliant on momentum rather than fundamentals.

The sell-off came after President Trump’s inauguration, which initially sparked investor enthusiasm for the stock. However, the anticipated rally failed to materialize, leading to a “buy the rumor, sell the news” dynamic. Adding to the bearish sentiment, the launch of the Official Trump cryptocurrency raised concerns about the company’s focus and direction. While the coin may have generated some excitement, it also drew criticism, potentially reflecting poorly on Trump Media’s broader brand and strategy.

Trump Media’s core business struggles to justify its $7.1 billion market cap, especially with reported revenue of only $1.61 million over its first three quarters as a public company. The Truth Social platform has shown weak user engagement and monetization, and the company’s foray into streaming remains unproven as a meaningful revenue driver.

With limited clarity on how Trump Media plans to scale its business and generate sustainable growth, the stock appears to be trading more on speculation than substance. Its current valuation far outpaces its fundamentals, and without a clear path to profitability, Trump Media is likely to continue behaving like a meme stock—highly volatile and unpredictable.

For investors seeking stability and growth backed by strong business fundamentals, Trump Media is a stock to avoid.

Steel Stocks Set to Surge Under Trump’s Policy Changes

By
Editorial Staff
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0

The U.S. steel industry could be entering a pivotal period as President Trump’s proposed trade policies aim to bolster domestic production and protect U.S. manufacturers. With potential tariffs and fiscal stimulus on the horizon, the sector appears primed for growth. Despite some lingering concerns about global oversupply and pricing pressures, the combination of cyclical factors, such as steady demand and lower interest rates, alongside structural changes like favorable trade policies, suggests promising opportunities for investors.

In this watchlist, we’re highlighting three steel companies that stand to benefit from these developments. These stocks offer exposure to different aspects of the steel industry, from large-scale production to infrastructure-driven growth. Here’s why they’ve caught our attention.

Nucor (NYSE: NUE): A Resilient Industry Leader

Nucor remains a heavyweight in the U.S. steel industry, and its diversified operations position it well for future growth. While the stock has faced challenges this year, falling over 11% year to date, the outlook suggests a turnaround. Analysts forecast 4% annual volume growth and 2% annual pricing growth in 2025, supported by robust demand from construction and manufacturing sectors. Nucor’s ability to navigate cyclical downturns while maintaining steady performance makes it a solid choice for long-term investors. Wall Street’s price target of $166 implies significant upside, bolstered by expectations of steady earnings growth and improved market dynamics.

Commercial Metals Company (NYSE: CMC): A Quiet Performer Ready to Shine

Commercial Metals Company has been a standout performer, with its stock rising more than 23% year to date. The company’s strong focus on construction and infrastructure materials aligns perfectly with potential fiscal stimulus under the new administration. Projections of 4% annual volume growth and 2% annual pricing growth, alongside a compound annual growth rate of 9% by 2026, highlight its growth trajectory. With tariffs likely to limit foreign competition, CMC’s domestic focus could help sustain its momentum. For investors seeking a more stable play in the steel sector, CMC offers both growth potential and resilience.

Cleveland-Cliffs (NYSE: CLF): A High-Risk, High-Reward Play

Cleveland-Cliffs offers a compelling, albeit higher-risk, investment opportunity. Its focus on value-enhancing projects and cost reductions could drive outsized returns, with a projected 47% compound annual growth rate over the next two years. However, the stock has faced headwinds, plummeting nearly 39% year to date. Still, with anticipated annual volume growth of 3% and pricing growth of 1%, along with potential tailwinds from increased infrastructure spending, CLF could see significant gains if trade policies and demand trends unfold as expected. Investors with a higher risk tolerance may find this stock’s upside potential too enticing to ignore.

As we enter a period of heightened trade policy shifts and fiscal initiatives, these three steel stocks represent a strategic way to gain exposure to an evolving industry landscape. While each comes with unique risks and opportunities, the sector’s favorable dynamics and growth prospects make them worth a closer look. Stay tuned for further developments as trade policy details emerge and the U.S. steel industry finds its footing in this new era.

Three Strong Conviction Buys for the Week Ahead

By
Editorial Staff
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0

In the ever-shifting stock market landscape, 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.

CRISPR Therapeutics (CRSP): Betting on Gene-Editing Innovation

CRISPR Therapeutics (CRSP) may be hovering near its 52-week low, but this gene-editing biotech is far from out of the game. With its groundbreaking treatment, Casgevy, for transfusion-dependent beta-thalassemia and sickle cell disease, the company is positioned to make waves in the healthcare space. Casgevy, priced at $2.2 million in the U.S., addresses a patient population of at least 58,000 and is projected to generate over $1 billion in peak sales. While revenue from the treatment hasn’t yet materialized due to its complex administration, it represents a significant opportunity for growth.

CRISPR Therapeutics also boasts a robust pipeline. One standout is CTX112, targeting certain B-cell malignancies. The FDA recently granted this therapy Regenerative Medicine Advanced Therapy (RMAT) designation, a status that accelerates development for treatments showing early promise against serious diseases with limited options. This milestone demonstrates the potential of CRISPR’s pipeline to deliver groundbreaking therapies in the future.

Investing in smaller biotechs like CRISPR comes with risks, such as setbacks in clinical trials. However, for investors willing to stomach the volatility, the upside is compelling. As Casgevy gains traction and CRISPR advances its innovative pipeline, the company could reward patient investors with significant returns. If you’re looking to bet on the future of gene editing, CRISPR Therapeutics is worth a close look.

Berkshire Hathaway (BRK.B): A Diversified Powerhouse Worth Buying

Berkshire Hathaway (BRK.B), led by legendary investor Warren Buffett, has a history that few companies can rival. Over the past six decades, the conglomerate has delivered annualized returns of nearly 20%, handily outpacing the S&P 500. While Berkshire’s stock is currently about 7% off its 52-week high, this dip could be an attractive entry point for long-term investors looking to own a piece of one of the most diversified and successful businesses in the market.

Berkshire’s strength lies in its unique structure. The company’s investment portfolio gets plenty of attention, with each quarterly 13-F filing serving as a roadmap for investors. However, Berkshire’s wholly owned businesses are the real engine behind its success. Spanning vital industries like energy, railroads, consumer goods, and insurance, these businesses generate steady cash flows that allow Berkshire to reinvest and expand its portfolio even in challenging economic environments.

What sets Berkshire apart is its management philosophy. Buffett’s hands-off approach lets the highly capable executives running Berkshire’s subsidiaries operate independently, driving consistent performance. This strategy fosters innovation and growth without the interference of micromanagement, a sharp contrast to activist investment tactics often seen elsewhere.

The company isn’t without near-term challenges—its exposure to the insurance sector means it faces financial implications from events like California’s recent wildfires. Additionally, uncertainty around Federal Reserve rate cuts has weighed on the stock. However, these pressures are temporary, while Berkshire’s structural advantages and cash-generating ability are built for the long haul.

For investors seeking stability, growth, and a chance to align with one of history’s greatest investors, Berkshire Hathaway remains a compelling buy.

Ally Financial (ALLY): A Digital Banking Leader with Growth Potential

Ally Financial (ALLY) has had a challenging year, with shares down 13% over the past six months and only a modest 3% gain in 2024. However, this all-digital banking leader is uniquely positioned for long-term growth, making it worth a closer look for investors seeking opportunities in the financial sector.

As the largest all-digital bank in the U.S., Ally stands out in a crowded market. It has leveraged its first-mover advantage since spinning off from General Motors in 2010, building a platform that now boasts 3.3 million deposit customers and an industry-leading 95% retention rate. In 2024, Ally added 57,000 net new deposit customers and grew retail deposits by $1.3 billion, reaching $141.4 billion. Notably, Millennials and Gen Z account for 74% of new members, providing a strong foundation for long-term customer engagement and growth.

Ally’s auto-lending business remains a key strength, originating $9.5 billion in auto loans in Q3 2024 and on track to process 14 million applications for the year—an increase from 13.8 million in 2023. While high interest rates and elevated defaults have prompted a more conservative lending approach, Ally has tightened its credit standards, with the average FICO score rising to 710. This demonstrates the company’s focus on maintaining quality while navigating a tougher credit environment.

Despite near-term challenges, Ally’s innovative digital platform and robust auto-lending division position it as a standout in the financial sector. With younger generations driving growth and its prudent approach to credit risk, Ally offers a compelling mix of stability and opportunity for investors looking to capitalize on the future of banking.

What’s going on in this strange facility near Mar-a-Lago?

By
Editorial Staff
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Take a look at this building located about 25 miles from Mar-a-Lago.

Most people have no clue this unassuming facility exists. 

Yet on January 20… the minute Donald Trump takes office… 

This could be the most important building in America. 

More important than the Capital, the Pentagon… even the White House. 

Because I believe this will be the epicenter of Trump’s New Manhattan Project… 

Behind those walls… and several additional facilities across America… 

Dozens of America’s greatest engineers, scientists and developers will join forces on the most critical government mission in 80 years. 

A mission to create the most shocking and powerful technology ever conceived. 

A technology so critical to the United States… It’s been declared a matter of national security.

Folks, I just spent the last 6 months investigating this new Manhattan Project…ever since this story first got leaked to the Washington Post. Much of it is highly classified and top secret. 

But what I’ve learned is shocking… 

What is about to happen will not only give the United States undisputed global economic supremacy for generations to come… 

It’s also going to create the biggest investing opportunity in a century. 

And today I’m going to show you how to get a stake in it. 

Go here for the full story.  

Nuclear Energy Stocks Powering Up Amid Big Tech Deals

By
Editorial Staff
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0

The nuclear energy sector has been buzzing with excitement lately, driven by groundbreaking deals between tech giants and nuclear power providers. This renewed focus on nuclear energy stems from its role in powering AI data centers, which have massive energy demands. Earlier this year Microsoft (MSFT) signed a 20-year deal with Constellation Energy (CEG) to supply nuclear power for its data centers. But the real game-changer came last month when Amazon (AMZN) and Google (GOOGL) also jumped into the nuclear game, securing contracts that sent nuclear-related stocks surging.

These contracts signal a critical shift as hyperscalers—companies that run large-scale data centers—look to nuclear energy to meet their rapidly growing power needs. This is not just a trend; it’s a major movement, as more tech firms turn to nuclear energy to fuel their future operations. Below are three nuclear-related stocks that have caught our attention in the wake of these developments.

Oklo Inc. (OKLO)
“Nuclear Startup Backed by Big Tech”
Oklo Inc. has been riding the wave of interest in nuclear power, particularly since major hyperscalers like Amazon and Google signed contracts to explore nuclear energy for their data centers. Oklo, which develops fast fission power plants, is backed by some big names, including Sam Altman, CEO of OpenAI. In October alone, the stock has surged more than 127%, driven by increased investor confidence in the nuclear space.

The company’s fast fission technology is designed to scale efficiently, offering a potential solution to the growing energy demands of AI. With Amazon and Google entering the nuclear space, Oklo’s expertise in this area makes it one to watch. Oklo’s CEO recently described the opportunity as “staggering,” and with the company gaining traction, its growth potential is enormous.

NuScale Power Corp. (SMR)
“Leading the Way in Modular Nuclear Reactors”
NuScale Power is another major player gaining momentum after the tech industry’s recent moves into nuclear. With its stock up 640% in 2024, NuScale has established itself as a leader in the development of modular nuclear reactors (SMRs), which offer a smaller, more scalable approach to nuclear power. The company’s reactors are designed to meet the rising demand for clean energy, particularly in the context of AI-driven data center expansion.

NuScale’s partnership with Microsoft earlier this year was just the start, but with Amazon and Google now jumping into the nuclear game, the company is well-positioned to benefit from further industry adoption. Its reactors, which are projected to come online by 2030, offer a reliable, carbon-free energy solution. The company’s stock is up 40% since Google’s announcement of its nuclear deal with Kairos Power, and NuScale continues to attract attention as more hyperscalers explore nuclear energy.

Nano Nuclear Energy Inc. (NNE)
“Innovating Nuclear for Earth and Beyond”

Nano Nuclear Energy is bringing a futuristic edge to the nuclear space with its portable, on-demand microreactors. The company has seen its stock jump 21% in the past month, and for good reason: it’s not only developing nuclear technology for data centers, but also exploring applications for space. With Amazon and Google’s recent foray into nuclear, Nano Nuclear Energy is in the perfect position to capitalize on this growing demand.

The company has announced the creation of NANO Nuclear Space, a subsidiary focused on using microreactor technology to power space exploration and extraterrestrial missions. Its ZEUS and ODIN reactor designs are intended for long-distance missions, human habitation, and propulsion in space, making it a highly speculative but exciting play in both the energy and space sectors.

The deals signed by Amazon and Google last month mark a turning point for nuclear energy stocks, as these tech giants look to secure long-term, carbon-free power solutions. With AI driving unprecedented energy demand, the nuclear sector is poised for significant growth in the years ahead. Keep an eye on Oklo, NuScale, and Nano Nuclear Energy as these companies navigate the new nuclear landscape and continue to develop game-changing technologies.

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.

Medtronic (NYSE: MDT) – A Steady Performer with Growth Potential

Medtronic, the global medical equipment leader, is attracting attention for its strong dividend yield and promising outlook. The company currently pays a 4% dividend yield with a manageable payout ratio of 48% and a net leverage ratio of just 2 times earnings—signs of financial stability that should appeal to income-focused investors.

The stock has seen mixed analyst sentiment, with 16 out of 33 analysts rating it a strong buy or buy, while 15 recommend holding. Despite dipping 3% last year, Medtronic has gained momentum, advancing over 7% in the last six months and outperforming the S&P 500. Analysts are increasingly optimistic, with an average price target of $95 suggesting more than 15% upside from Friday’s close.

On Wednesday, Medtronic gained over 3% following news that rival Johnson & Johnson had temporarily halted the use of its new heart device due to safety concerns. This disruption could shift attention and potential market share toward Medtronic’s portfolio. Another competitor, Boston Scientific, also benefited from the development, rising 4% in the same session.

For investors seeking a blend of reliable income and growth potential, Medtronic looks compelling. The stock’s recent performance and the strategic advantage from competitor challenges position it as a solid pick for this week’s watchlist.

TaskUs (NASDAQ: TASK) –  A Leader in Digital Customer Experience Ready to Deliver More

TaskUs, a standout player in the digital customer experience outsourcing space, is showing signs of even greater potential heading into the new year. The company recently impressed with a robust third-quarter report, beating expectations on both revenue and earnings. But what really caught our attention is the potential for its fourth-quarter results to serve as a positive catalyst for the stock.

TaskUs has built a reputation for offering premium outsourcing services to high-growth tech companies, and its competitive position in this niche is second to none. Margins remain “best-in-class,” underscoring the company’s operational efficiency. Analyst Cassie Chan recently upgraded the stock to a buy, citing its attractive risk/reward profile and predicting strong fourth-quarter results. Chan also expects TaskUs to guide fiscal 2025 revenue growth ahead of the market consensus at 9%.

After climbing 41% in 2024, TaskUs shares still appear to have room to run. With underperformance earlier in the year now in the rearview mirror, the next quarterly update could be the turning point that pushes the stock higher. For investors seeking exposure to a proven growth story in digital customer experience, TaskUs is well worth a closer look.

Constellation Energy (CEG) – Powering AI Growth

Constellation Energy is at the forefront of the nuclear energy boom, benefiting from its established infrastructure and strategic deals with major tech players. The company operates 21 nuclear reactors across the Midwest and Northeast, making it a cornerstone of U.S. nuclear power.

In 2024, Constellation shares surged 91%, propelled by partnerships like its two-decade agreement with Microsoft to supply nuclear power for AI data centers. The company further bolstered its position with a $840 million contract to provide power to federal agencies, signaling strong government support for nuclear energy expansion. Looking ahead, management projects annual earnings growth of at least 13% through 2030, backed by a robust pipeline of deals and the benefits of the newly clarified hydrogen tax credits. For investors seeking a stable yet growth-oriented energy play, Constellation offers both reliable dividends and a foothold in a rapidly evolving market.

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