Weekly Radar: Our Top Stock Picks for This Week

June 11, 2023

Stocks inched higher last week as cautiously optimistic investors positioned themselves ahead of a crucial upcoming Fed meeting. The S&P 500 rose for the fourth week in a row, closing the week at 4,299, eclipsing the level needed to exit the bear market it had been in since January 2022. Each of the major U.S. indexes produced a fractional weekly gain in a mostly quiet week of trading.

The Federal Reserve is scheduled to conclude its upcoming policy meeting on Wednesday; most observers expect that the Fed will maintain its key benchmark interest rate at a range of 5.00% to 5.25%, potentially breaking a string of 10 consecutive meetings in which it has lifted rates. Market participants will be watching for indications as to whether the Fed might shift back to a rate-hiking mode at its subsequent meeting ending July 26 if it chooses to keep rates unchanged at its June session.

The S&P 500 is up about 20% from its mid-October lows, a threshold that could indicate a bull market. The economy has defied expectations for a slowdown in the face of higher interest rates. Still, some form of an economic slowdown could lie ahead, even as the foundation of a new bull market is likely already formed. Any renewed phase of volatility may bring opportunities to position your portfolio for a more sustainable rebound. Here are three stocks to watch as the market’s ‘come back’ unfolds.

Fasty Inc. (FSLY)

Cloud-computing platform provider Fastly has been getting much attention this year, which may be just the beginning. Despite an astonishing 91% increase this year, FSLY’s share price remains significantly (88%) below its October 2020 ATH of $126.58.

The company has yet to turn a profit. Nevertheless, over the past three years, revenue increased at an average rate of 23% per year. That’s well above most other pre-profit companies. Interestingly, the share price has fallen an average of 9% each year over the same period. This disconnect between valuation and revenue growth forms the foundation for an intriguing investment, especially for growth-oriented investors.

Fastly posted solid earnings in early May. Management’s efforts to cultivate the conditions for long-term success were evidenced by a year-over-year gain in new customers and decreased capital expenditures, which has allowed for enhancements to the company’s technology and its business model. As it rolls out more straightforward product packaging and pricing tiers, customer acquisition and growth across the platform should be supported. Based on current free cash flows, the mighty mid-cap company has a sufficient cash runway for over three years. Its debt is well covered by its earnings, and management forecasts a reduction in losses over the next twelve months.

Strong execution and favorable underlying fundamentals seem likely to continue to support this turnaround story. At less than $17 per share, FSLY seems worthy of consideration.

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Las Vegas Sands (LVS)

With American consumers expected to continue cutting back on discretionary spending in the second half of the year, resourceful investors have taken a shine to leisure names with significant exposure in China, where a robust recovery in travel and tourism spending is underway. As the U.S. consumer softens, Macau-centric Las Vegas Sands has been gaining steam.

While travel restrictions impacted LVS’s Q1 performance, Wall Street is enthusiastic about the company’s performance throughout 2023 and the years ahead. Stifel recently upped its 12-month price target for the stock to $73 from $66 on the attractive risk/reward setup, stating, “If the U.S. consumer does decline, the pent-up demand from China’s and Singapore’s only gaming market should be healthy for another 12 months.”

LVS has risen 19% year to date and currently holds an 80% Buy rating. The pros covering the stock see a 50% upside over the next twelve months, a figure which has risen 10% over the past 30 days.

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Plug Power, Inc. (PLUG)

The “green wave” has given way to multiple opportunities for investors seeking stocks with exponential growth potential. The alternative energy industry is expected to expand in value by an astounding 1000% over the next five years. After a deep dive into this burgeoning industry, we’ve come up with one name that we believe could be the next massive breakout from the green energy group.

Plug Power is a leading provider of alternative energy technology, specializing in hydrogen and fuel cell systems. PLUG’s solutions are primarily used in the material handling and stationary power markets. PLUG offers fuel cell systems that replace lead-acid batteries in electric vehicles, benefiting distribution and manufacturing companies.

PLUG’s stock is down YTD by 28.82%, but it’s showing great promise, and I like it for its upside potential. PLUG has a $4.5 billion market cap and TTM revenue of $770 million at $1.32 per share. Recently exceeding analysts’ MRQ revenue forecast by a modest 1.53%, a win is a win. With a P/B ratio of 1.15x, PLUG has YOY revenue growth (+49.65), EPS (+31.56%) growth—30.89% quarterly growth—and profit margin growth (+11.62%). With a 10-day average trading volume of 24.02 million shares, it’s clear that PLUG’s recent business deals to optimize its impact and effectiveness have popularized the stock. Here’s another great thing: PLUG has a median price target of $15, with a $78 high and a low of $7.50, representing the potential for a 785% price increase from where it sits now. Analysts are on to PLUG, too; Buy, is what they say.

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Three Stocks to Avoid Next Week

Editorial Staff

June 8, 2023

Seeking out great stocks to buy is important, but identifying quality investments is only half the battle. Many would say it’s just as essential for investors to know which stocks to steer clear of. A losing stock can eat away at your precious long-term returns. By taking a proactive approach to avoid losing stocks, you can set yourself up for greater success in your investing journey.

Even the best gardens need pruning and our team has spotted a few stocks that seem like prime candidates for selling or avoiding. Read on to find out why we believe these particular stocks are poor investment choices and learn how to apply our analysis to your own portfolio management strategy…

Mondelez International Inc. (MDLZ)

Recession fears and concerns around the financial sector have investors seeking refuge in consumer staples stocks to shore up their portfolios. However, based on technical analysis some of these traditionally defensive tickers now seem overbought. Case in point – Mondelez.

A stock is considered overbought if its 14-day RSI goes above 70, and is typically seen as an indicator to consider cutting back on exposure. By this measure, with an RSI of 89.2 MDLZ tops the list as one of the most overbought names from the S&P 500. Wall Street sees little-to-no upside potential for the stock over the next twelve months. According to FactSet, the average analyst price target for Mondelez implies an upside of just 3%.

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Meta Materials (MMAT)

Semiconductor company Meta Materials develops and produces functional materials and nanocomposites, particularly in lithium battery materials. The micro-cap company is losing far more money than it’s bringing in. In the first quarter MMAT reported revenues of $1.4 million and operating expenses of $24.8 million. The company posted a net earnings loss of $79.1 million for the entire year.

Not to mention, the company is embroiled in litigation on accusations of involvement in “spoofing, naked short selling, market manipulation, and fraud.” Meta Materials share price is down 78% this year, falling to less than 25 cents per share.

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Gap Inc. (GAP)

Interest rates in America are now at their highest level in 16 years. While higher rates might tame inflation in the long run, they are likely to slow the economy in the near term and negatively impact certain areas of the market. Clothing retailers such as Gap Inc. tend to suffer when consumers cut back on discretionary spending. This reality has been reflected in Gap’s earnings performance, which have disappointed over multiple quarters. The current high-interest rate climate has proven to be a double whammy for The Gap, coming on the heels of two years of pandemic restrictions at its stores.

The retailer is likely to continue struggling while rates remain high and consumers tighten their purse strings. Slowing sales and poor financial results, coupled with pressure from higher interest rates have pushed GPS stock 17% lower this year. The company’s share price is now down nearly 70% over the past five years. The current consensus among 20 polled analysts is to Hold Gap shares.

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Three LiDAR Stocks Set to Explode

Editorial Staff

June 8, 2023

Every now and again, a technical breakthrough occurs that irrevocably affects both our lives and the world around us. Henry Ford’s assembly line delivered automobiles to the public, the internet revolutionized the way we communicate, and mobile phones only amplified those developments, while becoming a phenomenon in their own right. Today, advances in computing, vehicles, and networking are merging together and will have a significant impact on the intricacies of our automobiles.

The modern advancement we can point to is already visible. Light detection and ranging (LiDAR) technology is a sensor technology that already improves car safety and navigation systems by providing driver assistance, as well as providing the sensitivity required to enable autonomous vehicles. Last year, worldwide demand for LiDAR in the automotive industry reached $555 million, and this figure is predicted to rise by more than $8.6 billion by the end of this decade, representing a compound growth rate of 40% or more. As we’re seeing an autonomous driving revolution heading our way, few industries provide such potential for development, making LiDAR an excellent long-term investment for patient investors.

There are three equities in this particular space that I’m excited about. I’m specifically narrowing my focus to outstanding growth stocks, each reasonably priced (to not overwhelm anyone), with a very bright future ahead of them. Let’s break down these timely tickers:

Allegro Microsystems Inc (ALGM)

Allegro MicroSystems, Inc. (ALGM) develops, produces, and distributes a wide range of sensor integrated circuits (ICs), as well as photonics and 3D sensing components such as photodiodes for LiDAR applications. The majority of ALGM‘s goods are sold to original equipment suppliers in the automotive and industrial industries. ALGM was established in 1990 and is based in Manchester, NH. ALGM is up YTD by 29.38% with a positive SMA, and has a $7.44 billion market cap, a P/E ratio of 27x, a D/E of 2.59%, TTM asset growth of 30.91%, and TTM revenue of $973 million at 97 cents per share, with its net income of $187.4 million being made possible via a 19.24% net margin. ALGM most recently beat analysts’ EPS and revenue forecasts by 2.73% and 1.67%, respectively, and has a free cash flow of $119.5 million. With a 10-day average volume of 1.62 million shares, ALGM has a median price target of $51, with a high of $54 and a low of $50, representing a potential 39% price upside. ALGM has 6 buy ratings.

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Luminar Technologies Inc (LAZR)

Luminar Technologies, Inc. (LAZR) is a global provider of sensor software and technology for passenger automobiles and commercial trucks. LAZR is a market leader in LiDAR manufacturing in addition to autonomy software applications, particularly for automotive manufacturers. LAZR was established in 2012 and is based in Orlando, FL. LAZR is curiously up YTD by 30.30%, yet its stock has been trading at the bottom of its existing 52-week range, proving itself to be full of momentum. LAZR has a $2.26 billion market cap, TTM revenue of $48.35 million, and, for the present quarter, is forecasted to show revenue of $16.2 million. Per its cash flow statement, LAZR displays an end cash position of over $340 million, and regarding growth, it shows quarterly EPS growth of 3.72%, and annual EPS and revenue growth of 11.56% and 112.20%, respectively. With a 10-day average trading volume of 8.24 million shares, LAZR has a median price target of $12, with a high of $20 and a low of $4.50, representing a potential more than 210% price jump from where it sits now. LAZR has been assigned 8 buy ratings and 3 hold ratings.

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Aeva Technologies Inc (AEVA)

Aeva Technologies, Inc. (AEVA) creates 4D LiDAR chips on a global scale. AEVA uses frequency-modulated continuous wave tech to build its products. AEVA provides a system with embedded software for automotive, industrial, and security applications, as well as algorithms for factory automation and consumer devices. AEVA was established in 2017 and is headquartered in Mountain View, CA. AEVA is down YTD by 19.49%, and is at the very bottom of its 52-week range. WIth a $214 million market cap, AEVA has a P/B ratio of 0.65, YOY growth in EPS (+0.88%) and revenue (+48.64), and a $306 million end cash position, with TTM assets totaling $356.63 million. At its most recent earnings call, AEVA boasted surprises on analysts’ revenue and EPS projections by margins of 38.55% and 9.90%, respectively. With a 10-day average trading volume of 955,000 shares, AEVA has an analyst-assigned median price target of $2.00, with a high of $6.00 and a low of $1.10, which represents a stunning potential price upside of 448%. While perhaps not getting all the attention it deserves to get, it certainly caught mine, and I see a great opportunity here for any long-term investor. The analysts currently have AEVA marked with 5 buy ratings and 3 hold ratings.

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Three Dynamic Dividend Stocks We Can’t Afford to Ignore

Editorial Staff

June 8, 2023

Summer is here! As is often the case during this time of year, investors will often implement one of a few “seasonal” investing strategies. However, this isn’t just another fiscal year…

It’s been a wild first half of 2023, in fact, with significant changes having a seamless impact…

And with all of that excitement on Wall Street comes uncertainty. If one is looking for a safe investment space to help ensure a stress-free summer vacation, dividend stocks are one way to go.

Today, I’m looking at dividend payers with more to offer than their payouts alone. But, especially when you need a break from the chaos, those checks are pretty damn great, aren’t they?

It’s time to cover these three dividend tickers, indicating a safe, stable summer. Join me:

Restaurant Brands Inc (QSR)

Restaurant Brands Inc. (QSR) is known for owning and operating three popular chains: Tim Horton’s, Burger King, and Popeye’s. Investing in QSR would be a good move for the sake of its growth potential, rising dividends, and commitment to its shareholders, its community, and the environment, not to mention its persistent global reach in the fast-food industry.

With a 0.55 beta—making it safe from the broader economy’s volatility—and a very lucrative ROE (return on equity) of 41.69%, QSR stock is currently up 14.16% YTD. QSR has $6.64 billion in TTM (trailing twelve-month) revenue at $3.31 per share, making $1.01 billion in profit through its 15.26% net margin. At its most recent earnings call, QSR exceeded analysts’ projections, most notably on EPS, where it reported $0.75 per share vs. $0.64 per share expected (a 17.76% surprise). QSR also beat by 1.97% on revenue, showing year-over-year growth of 9.38%. QSR currently pays an annual dividend yield of 2.92% at a quarterly payout of 56 cents ($2.24/yr) per share, with a 66.36% payout ratio. With a free cash flow of $1.16 billion and a 10-day average volume of 1.18 million shares, QSR has a median price target of $78.05, with a high of $85 and a low of $66; this represents an upside potential of 7% and higher. Buy and Hold.

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Realty Income Corp (O)

Amidst the uncertainty, here’s a perfect little gift: a monthly dividend stock trading below fair value. Offering stability and room for growth, Realty Income (O) doesn’t have much in the way of theatrics but instead shows unmatched fortitude. While the others on this list pay dividends quarterly, O is well-known for its generous monthly dividends, which it has also increased for over 100 consecutive fiscal quarters.

O’s stock is, as mentioned, consistent, so I’ll point to that with some numbers: Slightly down YTD by 2.45% with a generalized 12-month asset growth of 15.98% and an 0.80 beta score, O’s enterprise value of $57.93 billion vs. its $40 billion market cap shows that there’s “a lot to the company,” if you will. O shows $3.47 billion in TTM revenue at $1.42 per share, from which it profited $895 million in net income via its 25.77% profit margin. To further evidence its stability, here are arguably the most exciting numbers: O’s annual dividend yield is 4.98%, and it offers shareholders a monthly payout of 25 cents ($3.00/year) per share on a very generous 210.35% payout ratio. With $1.81 billion in free cash flow and a 10-day average volume of 4.37 million shares, O’s average price target is $69.71, with a high of $74 and a low of $66. From where O’s price sits now, the range represents a nearly 15% increase. Buy and Hold.

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Devon Energy Corp (DVN)

Devon Energy (DVN), a U.S.-based oil and gas firm, recently faced a 13% decline amid falling oil prices. However, the future looks promising for DVN as oil prices are expected to rebound. DVN has shown insider confidence and ongoing stock ownership, while the management’s 50% expansion of the share buyback program underscores the stock’s appeal. With efficient operations and secure assets, DVN’s stock is an excellent opportunity for investors to benefit from its attractive valuation and dividend yield. Stock-wise, DVN is down YTD by 12.32% but has plenty of breathing room for price appreciation. DVN boasts a stunning ROE (return on equity) of 58.90%, a PEG (price/earnings/growth) ratio of 1.54x, a P/S (price to sales) ratio of 1.70x, and a P/B (price to book) ratio of 2.93x. During its MRQ (most recent quarter) earnings call, DVN met analysts’ revenue forecasts. Still, regarding EPS, it reported $1.46 per share vs. the $1.40 per share expected (a 4.62% surprise), also showing YOY EPS growth of 3.38%. DVN has a 10.46% annual dividend yield, with a quarterly payout of 72 cents ($2.88/year) per share, riding its 64.09% payout ratio. With an operating free cash flow of $8.37 billion and a 10-day average trading volume of 8.57 million shares, DVN has a median price target of $64.32, with a high of $82 and a low of $49. This range offers a more than 30% jump from DVN’s current pricing. Buy and Hold.

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Unleashing the AI Titans Part II: Three Companies Set to Reshape the Future

Editorial Staff

June 8, 2023

Captivating the world with endless potential, AI applications such as ChatGPT and Apple (AAPL)’s recently launched iVision Pro perhaps aren’t as revolutionary as some might think because, as I discussed in my last article, AI has already been playing a role in our everyday lives. Look back to the iPhone and the iMac, and you’ll notice that, in both cases, it was only the beginning of something bigger. What we consider a revolution today could be commonplace in… who knows how long?

There is still time to expose our portfolios to winning AI stocks and hold them tightly. We see that the insatiable hunger for more probably won’t stop, so we should at least pay very close attention.

For Part Two of our machine learning (or AI) list, I’m looking at three chipmakers that have performed incredibly well year-to-date, and Wall Street has applauded. Take a look with me:

Marvell Technology Inc (MRVL)

A leading provider of comprehensive data infrastructure and semiconductor solutions, Marvell Technology Inc. (MRVL) covers the entire data-network spectrum. MRVL’s expertise lies in developing and scaling complex “System-on-a-Chip” architectures that combine analog, mixed-signal, and digital signal processing capabilities. With a global presence spanning from the U.S. to Vietnam to Israel, MRVL was founded in 1995 in Wilmington, DE, where its headquarters remain. Stock-wise, MRVL is up YTD by 59.64% but, astonishingly, is still trading beneath its average price target; this leaves room for a possible price jump. MRVL shows TTM revenue of $5.8 billion, a positive 200-day SMA (simple moving average), and a D/E (debt to equity) of 30.16%. MRVL most recently surpassed analyst forecasts on EPS and revenue by 5.40% and 1.67%, respectively. MRVL has a 0.41% annual dividend yield and a quarterly payout of 6 cents ($0.24/yr) per share. With $1.74 billion in free cash flow and a 10-day average volume of 31.68 million shares, MRVL has a median price target of $65, with a high of $100 and a low of $50, representing an almost 70% price increase. MRVL has 28 buy ratings and three hold ratings.

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Synopsys Inc (SNPS)

Synopsys, Inc. (SNPS) provides semiconductor design and software testing products. SNPS’s offerings span Digital and Custom IC Design, FPGA design, and IP solutions for various applications. SNPS also offers system-on-chip infrastructure, prototyping, and optical system design tools. SNPS, established in 1986, is based in Mountain View, CA, and serves various industries. SNPS’s stock is up by 39.02% YTD, nearing the top of its 52-week range. With $5.28 billion in TTM revenue at $5.93 per share, SNPS profited $920.5 million on its 17.41% net margin. SNPS boasts an ROE (return on equity) of 16.16%, a PEG ratio of 2.49x, and a remarkably low D/E (debt to equity) of 0.35%. For its most recent earnings call, SNPS surprised analysts’ EPS and revenue projections by healthy margins and showed year-over-year revenue growth of 9.04%. SNPS is forecasted to deliver $1.5 billion in sales for the current quarter at an EPS of $2.73. With a 10-day average trading volume of 1.67 million shares, SNPS has a median price target of $447, with a high of $505 and a low of $410; this range still leaves room for a 14% price increase from its current position. SNPS has 15 buy ratings and two hold ratings.

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Cadence Design Systems Inc (CDNS)

Another leader in the semiconductor space is Cadence Design Systems, Inc. (CDNS), which provides software, hardware, and reusable integrated circuit (IC) design blocks. CDNS’s offerings encompass verification services with platforms like JasperGold, Xcelium, Palladium, and Protium. CDNS also offers digital IC design and analysis products for printed circuit boards and IC packages. CDNS serves diverse markets, including aerospace and defense, healthcare, mobile, consumer, and hyper-scale computing. CDNS has seen a massive boost thanks to the rise in machine learning, with its stock currently up YTD by 42.41%. CDNS has a TTM revenue of $3.68 billion at $3.12 per share, from which it made $855 million in net income via its 23.24% profit margin. CDNS boasts an ROE of 30%, a D/E (debt to equity) measure of 23.06%, and the firm most recently beat analysts’ earnings projections for EPS and revenue by 2.97% and 1.51%, respectively. With an operating free cash flow of $1.17 billion and a 10-day average volume of 3.28 million shares, CDNS’s median price target is $232.50, with a high of $250 and a low of $210, leaving room for an almost 10% leap from it currently sits. CDNS has 13 buy ratings and three hold ratings.

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Copper Unleashed: Exploring Three Unmissable Investment Prospects

Editorial Staff

June 7, 2023

Copper prices have reached their lowest levels in nearly a year, presenting an enticing opportunity for investors.

Copper prices suffered a nearly 6% decline in May, the worst month since June 2022, But the market is currently in a “significant deficit” phase, said Goldman analysts. China’s demand for copper remains robust and has outperformed growth concerns, while a negative shock in mine supply further tightens the market. Moreover, the long-term global demand for copper continues to grow, driven by ongoing policy support for renewable energy and electric vehicles.

Encouraged by these prospects, several Wall Street analysts have shifted towards a bullish stance on the metal, predicting a potential price surge. Citi’s projections indicate that copper could experience a remarkable increase of almost 50% by 2025, reaching $12,000 per ton in their base case scenario. In a more optimistic bull case, prices could even double to $15,000 per ton. Similarly, Goldman Sachs forecasted a 25% upside in copper prices over the next 12 months, with a target of $11,000 per ton.

While current copper prices may seem subdued, analysts and financial institutions project a promising future for this versatile metal, prompting investors to consider seizing the potential buying opportunity it presents. Here are three tickers we like for various reasons.

Teck Resources Ltd (TECK)

Copper is expected to play a vital role in the shift away from fossil fuels, given it is essential for most electricity-related infrastructure, including wind turbines and solar photovoltaic panel wiring, and to transfer electricity.

Canada’s largest diversified miner Teck Resources Ltd, recently produced its first bulk of copper concentrate from its Quebrada Blanca 2 (QB2) deposit in Chile. This project is expected to almost double the amount of copper it annually produces. At full production, Teck expects QB2 to produce 285,000 to 315,000 tonnes of copper annually between 2024 and 2026. Overall, it expects to increase its copper production to between 545,000 and 640,000 tonnes per year in the same period.

The company is in the news after Switzerland-based commodities company Glencore raised its offer to buy Teck from the initial $22.5 billion proposition Glencore made in March. TECK’s share price is up 17% in 2023 and currently has a 72% buy rating on Wall Street.

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Freeport-McMoRan (FCX)

Freeport-McMoRan, one of the leading copper producers worldwide, has established itself as a prominent player in the industry. Apart from copper, the company also engages in the production of gold and molybdenum, a crucial element utilized in the creation of high-strength steel alloys.

The crown jewel of Freeport’s impressive portfolio is the Grasberg mine in Indonesia, renowned as one of the largest sources of copper and gold globally. Additionally, the company operates substantial mines in Arizona and Peru. In 2022 alone, Freeport achieved a remarkable copper production of 4.2 billion pounds.

Looking ahead, Freeport possesses an extensive organic development pipeline that holds the potential to significantly increase its copper production in the coming years. By implementing initiatives to enhance leaching, a chemical process employed to extract copper from ore, and potentially adopting new leaching technology, the company aims to augment its annual production capacity by an estimated 800 million pounds in the near and medium terms. Furthermore, several expansion projects are in the pipeline, projecting substantial production capacity growth over the medium and long term.

The company’s commitment to expanding copper production is expected to yield positive results for its shareholders in the form of increased cash returns. Freeport has devised a framework aiming to allocate up to 50% of its excess cash flow towards shareholder returns, encompassing dividends and share repurchases. As the mining company’s copper production continues to grow, shareholders can anticipate enhanced cash rewards as a result of its strategic approach.

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Global X Copper Miners ETF (COPX)

For anyone looking to buy into the sector, there is perhaps no better way to do so than through Global X Copper Miners ETF. COPX is the first ETF option for a pure-play copper exposure in the equity space. The fund gets this exposure by tracking a market-cap-weighted index that offers broad equity exposure to the global copper mining industry. Although technically a global fund, it has strong North American exposure. The fund ranks companies according to their average daily trading volume with respect to its exchange over three months. The highest-ranked funds are included in the index. The index is rebalanced semi-annually.

Unleashing the AI Titans Part I: Three Companies Set to Reshape the Future

Editorial Staff

June 5, 2023

Along with the newly-reclaimed world’s richest person, Elon Musk, there have been crucial players in the world of AI and machine learning (ML). Many of us are likely thinking to ourselves, “Should we be more excited or more worried about it?” At the moment, there are a couple of more pressing questions:

– Can we expect to profit from it?

– How excited should we feel about said profit?

The short answers are yes and very much so, respectively. Let’s use the here and now to secure our profit now while AI only makes forward, red-hot progress. A significant portion of us already uses this revolutionary tech in many aspects of our daily lives. Wouldn’t now be a good time to hop on board?

For Part 1 of 2, I’ll look at three companies that, regardless of the market’s AI craze, are names that we’re more than likely to remember years from now. Join me here for a peek:

Micron Technology Inc (MU)

Known for its cutting-edge memory and storage tech, Micron Technology Inc. (MU) has been a crucial part of the AI and ML (machine learning) discussion(s). From data centers to self-driving cars, its high-performance products have always had something to show for their presence amidst the market competition. One “AI boost,” if you will, was its acquisition of FWDNXT in 2019. Having a good future outlook among shareholders and analysts alike, MU is up YTD by 38.72% and shows $23.06 billion in TTM (trailing twelve-month) revenue at $1.34 per share, during which it earned a net income of $1.61 billion via its 7.02% profit margin. MU has a P/S (price to sales) ratio of 2.98x, a P/B (price to book) ratio of 1.44x, and a low 25.97% D/E (debt to equity) measure. MU presently offers an annual 0.67% dividend yield with a quarterly payout of 12 cents ($0.48/yr) per share, using a 31.56% payout ratio. With a 10-day average volume of 25.21 million shares, MU has a median target of $70, with a high of $100 and a low of $45, representing almost 45% of its upside potential. Analysts say Buy and Hold.

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Tesla Inc (TSLA)

Some maintain, even during the ChaptGPT revelation, that Mr. Musk’s TSLA remains one of the premier AI stocks available. There are certainly arguments to be made for TSLA because it’s poised to reap powerhouse profits from the AI revolution. An early player in the space, TSLA owns proprietary data sets, has domain expertise, and has an already-developed grasp of AI technology. With the world’s largest driving data pool at its disposal, TSLA‘s fusion of ML (machine learning) data and powerful AI modeling gives it rock-solid strength.

With a TTM asset growth of 31.49%, TSLA has $86.03 billion in same-period revenue at $3.45 per share, from which it profited $11.8 billion through its 13.66% net margin. With 3-5 year forecasted EPS growth at 80.7%, a PEG (price/earnings/growth) ratio of 1.31x, and an ROE (return on equity) of 28.70%. TSLA is expected to show $23.9 billion in sales at $0.77 cents per share for Q2 2023 and has a levered free cash flow of $2.45 billion with a 10-day average trading volume of 135.84 million shares. TSLA’s median price target is $187.40, with a $300 high and a $71 low. Its new range allows room for a more than 44% price jump, and analysts recommend we Buy and Hold TSLA.

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Microsoft Corp (MSFT)

Since 2019, Microsoft (MSFT) has been actively invested as the name behind OpenAI, the visionary creators of ChatGPT. In January 2023, MSFT reinforced its dedication to AI-related innovations by expanding the partnership with a multiyear, multibillion-dollar investment. With a mission to democratize AI, MSFT is committed to universal accessibility. Through its Azure cloud computing platform, MSFT further empowers individuals and organizations globally to continue unlocking AI’s potential.

MSFT boasts a 0.93 beta, while it casually carries an enterprise value of just over $2.25 trillion. With a TTM revenue of $207.59 billion at $9.25 per share, MSFT made a net income of $69 billion via its 33.25% profit margin. During its latest earnings call, MSFT surprised analysts’ EPS and revenue predictions by 9.76% and 3.59%, respectively, also reporting year-over-year growth in revenue (+7.08%), net income (+9.39%), EPS (+10.36%), and net profit margin (+2.15%). MSFT currently has a 0.82% dividend yield and a quarterly payout of 68 cents ($4.76/yr) per share. With a PEG of 2.3x, $42.96 billion in free cash flow,and a 10-day average volume of 21.53 million shares, MSFT’s median price target is $340, with a high of $450 and a low of $232, allowing room for a potential price increase of over 35%. Buy and Hold MSFT.

Net Zero Carbon Stocks With Massive Return Potential

Editorial Staff

June 5, 2023

We’re always hearing about climate change, right? Well, that’s because many of us—at the risk of sounding cliche—care about the planet. Moving away from traditional fossil fuels and carbon-based energy resources is essential. The goal is to hit net zero, and it’s been a global undertaking.

Here’s the exciting part for investors: Renewable energy, once considered a niche market, is already beginning to power the world. While this energy transition is underway and many of us hug the sidelines as casual observers, we don’t have to wait to start profiting from it. Some organizations are clearly leading the way to make a net zero future come to fruition, and hey… I’ve found some!

To learn what makes these renewable energy stocks great portfolio choices, join me here:

TPI Composites Inc (TPIC)

One of the aforementioned businesses leading the way in renewable energy is TPI Composites Inc. (TPIC), which specializes in manufacturing and selling what makes up a vast portion of the world’s wind turbine blades. To provide a clearer picture of its production, in Q1 2023, TPIC made 655 blade sets, a notable increase from 547 sets in 2022. Requiring 37 manufacturing lines, TPIC’s output translates to nearly 3,000 megawatts of energy production, enough to power at least 1.2 million homes annually. The momentum is strong for TPIC, as it’s at the very bottom of its 52-week range, yet its stock is up YTD by 5.13%. TPIC’s TTM revenue is $1.58 billion, well over its $452 million market cap. It most recently beat analyst revenue forecasts by 5.60%, reporting $404.7 million vs. $382.64 expected, and TPIC’s revenue growth sits at 17.62%, expected to show another $406.5 million in sales for this quarter. With a PEG ratio of 0.76x, a P/S (price to sales) ratio of 0.26x, and a 10-day average volume of around 611,820 shares, TPIC has a median price target of $16, with a high of $22 and a low of $9, representing a more than 106% potential jump from current pricing. Given these metrics, we should Buy and Hold.

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Algonquin Power & Utilities Corp (AQN)

Servicing a customer base of over one million across North America, Canada-based Algonquin Power & Utilities (AQN) offers regulated utilities and a diverse portfolio of clean energy solutions, including hydroelectric power, solar, wind, and thermal energy. Through its efforts, AQN lights the path to a greener future and has the numbers to back it up. AQN’s 0.45 beta score makes it safe from volatility, and also reassuring is the fact that during its last quarterly earnings report, it beat analysts’ EPS and revenue projections by 5.52% and 6.12%, respectively. AQN shows healthy YOY growth in essential areas such as revenue (+5.34%), net income (+196.97), EPS (+200%), and net profit margin (+180.66%). AQN presently offers an annual 5.15% dividend yield with a quarterly payout of 11 cents ($0.44/yr) per share. With an operating free cash flow of $487 million and a 10-day average volume of 3.29 million shares, AQN has a median price target of $9.22, with a high of $10.50 and a low of $7. This high-low suggests a potential price upside of 25%, and AQN, although up YTD by 29.29%, still trades near the bottom of its existing range, giving it plenty of space to do its thing. Analysts suggest that we Buy and Hold AQN.

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General Electric Co (GE)

Although it might be surprising to see it on this particular list, General Electric (GE) has, over time, become known for its innovations in the alternative energy arena. For instance, GE’s wind turbines have propelled the business to the forefront of wind technology, helping to drive clean energy generation on the global scale I’ve previously mentioned. GE‘s commitment extends to investing in other renewable sources like solar power and hydroelectricity. Stock-wise, GE shows plenty of muscle, showing $74 billion in TTM revenue with a $6.84 EPS, during which it’s made $7.98 billion in net income on an 11.31% profit margin. For its last earnings report, GE surprised analysts’ EPS forecasts by a whopping 97.56%, reporting $0.27 per share vs. $0.14 expected. GE shows YOY growth in revenue (+14.29%), net income (+768.74%), EPS (+721.30), net profit margin (+678.35%), and operating income (+1,542.42%). GE has a 0.32% dividend yield and a quarterly payout of 8 cents ($0.32/yr) per share. With $6.36 billion in free cash flow and a 10-day average volume of 5.03 million shares, GE has a median price target of $109, with a $121 high and a low of $90, leaving healthy room for a price increase even though it’s up 55.30% YTD. Analysts say we should Buy and Hold GE.

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Three Global Growth Names Set to Explode

Editorial Staff

June 4, 2023

Expanding international economies, increasing productivity, and improving standards of living are the first indicators of the rise of a new global middle class. Indeed, it seems as if the world’s most dramatic economic growth over the next century will occur outside the U.S.

For market participants looking to strengthen their portfolios through diversification or create new avenues to explosive growth, international stocks can be an excellent addition. Here are three tickers that are well positioned to benefit as international economies strengthen.

Taiwan Semiconductor’s (TSM) share price has been on the rise after hitting a two-year low in October due to a sharp slowdown in global chip demand. Still down more than 35% from its January 2021 peak, anyone on the sidelines might consider now an appropriate time to strike. “Only a small number of companies can amass the capital to deliver semiconductors, which are increasingly central to people’s lives,” said Tom Russo, a partner at Gardner, Russo & Quinn.

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MercadoLibre (MELI) is a leading provider of e-commerce and fintech services in Latin America. The company operates an e-commerce marketplace that has a dominant presence in some of the most populous nations in the region, including Brazil and Argentina. MercadoLibre has continued to increase sales at a rapid clip despite macroeconomic headwinds, and the business’s forefront positions in online retail and fintech point to huge expansion potential as these services become more popular in Latin America.

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As a major player in the digital payments space, India’s largest private sector lender, HDFC Bank (HDB), is in a favorable position to benefit from “the war on cash,” as the country’s economy continues to develop. The company has over 6,300 branches across more than 3,100 cities and towns. HDFC is also a player in the digital payments space and appears poised to benefit from “the war on cash.”

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Three Stocks to Avoid Now

Editorial Staff

June 3, 2023

Bank of Hawaii (BOH)

With the failure of three regional banks (Silicon Valley Bank, Signature Bank, and First Republic Bank) in the past two months it seems wise to avoid struggling regional players like Bank of Hawaii. Policymakers made one thing very clear back in March: Uncle Sam will protect depositors, not shareholders. But the ugly truth is that there must be a limit to this protection. If more banks continue to fail, it could outstretch the government’s capacity to maintain this commitment. With such a steep risk involved, avoiding BOH seems like a no-brainer.

BOH gained nearly 9% last week. In the trailing one-month period, the stock tumbled nearly 23%. And since the start of this year, it printed a loss of 50% of equity value. The 6 pros covering the stock give it a Hold rating with none rating it a Buy.

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Abrdn Income Credit Strategies Fund (ACP)

Closed-end fund, Abrdn Income Credit Strategies Fund offers a high forward dividend yield of 14.35%. However, Over the past year, ACP shares have fallen by more than 20%. Further declines may be ahead for two reasons.

First, higher interest rates have had an inverse effect on the value of ACP’s portfolio of low-rated debt securities. Second, the current economic downturn could increase the default risk of ACP’s holdings. This may also result in another dividend cut, like the 16.7% cut implemented in 2020.

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Adeia (ADEA)

Adeia is an intellectual property licensing firm with a fairly low forward dividend yield of 1.89%. Taking into account downside risk, questionable whether the company can maintain its current rate of payout. Sell-side analysts anticipate ADEA’s earnings will fall by nearly 30% this year. If management’s plan to maximize its portfolio fails, not only could its payout get cut to ribbons. This may result in a steady decline for ADEA stock as well.

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Copper prices have reached their lowest levels in nearly a year, presenting an enticing opportunity for investors.

Teck Resources Ltd (TECK)

Freeport-McMoRan (FCX)

Global X Copper Miners ETF (COPX)

Micron Technology Inc (MU)

Tesla Inc (TSLA)

Microsoft Corp (MSFT)

TPI Composites Inc (TPIC)

Algonquin Power & Utilities Corp (AQN)

General Electric Co (GE)

Bank of Hawaii (BOH)

Abrdn Income Credit Strategies Fund (ACP)

Adeia (ADEA)

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