Tech corporations previously known for offering dream jobs have been trimming their workforces. Job cuts have been helping these companies report higher profits while delivering top-line growth. Here are some stocks to buy after layoffs happen.

Alphabet (GOOG, GOOGL)

Alphabet’s (NASDAQ:GOOG, NASDAQ:GOOGL) have freed up more capital to pour into artificial intelligence efforts. It’s also resulted in higher profit margins and an attractive 27 P/E ratio. The first quarter highlighted those trends. Revenue increased by 15% year-over-year (YOY) while net income surged by 57% YOY.

The advertising giant’s financial strength prompted it to offer its first dividend. Shareholders will soon receive a quarterly dividend of $0.20 per share. The company is returning capital to its shareholders and should have the opportunity to maintain a double-digit compounded dividend growth rate for several years.

Stock market investors have been happy with the company’s returns. Even if you don’t own Alphabet stock, it’s probably in one of your mutual funds or ETFs. Shares are up 26% year-to-date and have more than tripled over the past five years. Advertising, cloud computing and artificial intelligence present compelling long-term opportunities for Alphabet. 

Amazon (AMZN)

Amazon (NASDAQ:AMZN) is another tech darling that has been initiating many layoffs. The company cut its workforce more than any other tech company last year. Despite the layoffs, Amazon is doing well. Net sales increased by 13% YOY in Q1 2024. Net income more than tripled YOY as the company benefits from segments with higher profit margins.

The tech conglomerate got started with its online marketplace. This marketplace still makes up the majority of Amazon’s revenue. However, Amazon Web Services, streaming, advertising and groceries are gaining ground. Cloud computing and advertising in particular have high profit margins that have strengthened the firm’s balance sheet.

Amazon stock has been a top performer in the stock market. Shares are up 21% year-to-date and have roughly doubled over the past five years. Analysts rated the stock as a Strong Buy with the average price target projected a 20% upside from current levels.

Microsoft (MSFT)

Microsoft (NASDAQ:MSFT) also did plenty of layoffs in 2023 as it focused more of its workforce and capital on artificial intelligence. Those layoffs haven’t intimidated analysts who still rate the stock as a Strong Buy. The average price target gives the stock a projected 16% upside.

The tech giant has been a steady performer in the stock market. Shares are up by 17% year-to-date and gained 232% over the past five years. The stock also offers a 0.71% yield and a double-digit dividend growth rate.

While the dividend is a nice bonus, most investors have been accumulating shares due to the corporation’s financials and competitive advantage. Microsoft operates in several high-growth industries and has continued to grow in most of those areas. 

Cloud computing was the biggest area of strength. Revenue in Microsoft Cloud increased 23% YOY and represented more than half of the company’s total revenue. Overall revenue increased by 17% YOY in Q3 FY24. Net income growth was even better and came in 20% higher than during the same period last year.

On this date of publication, Marc Guberti held long positions in GOOG, AMZN and MSFT. The opinions expressed in this article are those of the writer, subject to the InvestorPlace.com Publishing Guidelines.

Marc Guberti is a finance freelance writer at InvestorPlace.com who hosts the Breakthrough Success Podcast. He has contributed to several publications, including the U.S. News & World Report, Benzinga, and Joy Wallet.

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The post This Week in Layoffs: 3 Strong Stocks That Are Still a Buy After Job Cuts appeared first on InvestorPlace.

But now, the markets are coming back around on renewable energy stocks. The pendulum often swings too far each way and these stocks are oversold. With global corporations still aiming to be carbon-free and a concerted effort to move away from fossil fuels, the time has come for renewable energy sources to emerge. Here are three renewable energy stocks to buy in May 2024. 

Constellation Energy (CEG)

Constellation Energy (NASDAQ:CEG) is the largest generator of carbon-free energy in the U.S. Eight of the thirteen analysts following CEG in April rated it a “Buy” or “Strong Buy.” This shows that Wall Street is bullish on CEG. The one-year price target range for CEG is $116 to $242. As such, the high end of this range indicates about a 15% upside from its current price. 

This renewable energy company has a growing portfolio of infrastructure and projects. Constellation primarily works with hydrogen power but has significant investments in nuclear and wind energy. Constellation’s nuclear portfolio powers everything from data centers to 24/7 flexible energy grids that provide backup power. With two million customers and providing services for 75% of Fortune 100 companies, Constellation is a cornerstone of the renewable energy industry. 

Shares of CEG are trading at about 2.9x sales and 27.9x forward earnings. It’s a cheap valuation but slightly elevated compared to its peers with an industry-average ratio of 1.7x sales. However, this is easily made up by the fact that it has also grown its net income at a five-year CAGR of 34%. This vastly outperforms its peers. 

JinkoSolar (JKS)

JinkoSolar (NYSE:JKS) is a company based in Shanghai, China that specializes in solar modules for both commercial and residential use. It is one of the largest solar module manufacturers in the world. It was a rough quarter for JKS so analysts are holding their recommendations on the stock. The average analyst price target of just over $27 shows there is about 10% upside from today’s price. 

This company is going through a rough patch following its recent quarterly earnings report. Solar has always been an industry that is rate-sensitive and the high interest rates are eating into Jinko’s margins. This has led to revenue and profits taking a hit. As we are approaching the end of the rate-hiking cycle, a much more favorable environment seems to be approaching. 

Despite the earnings report, Jinko has managed to grow its sales at a CAGR of 33% over the past 10 years. This is a massive growth rate which we should expect to only continue. Incredibly, shares of JKS are trading at just 0.09x sales and 9.75x forward earnings. If there was ever a time to go long on Jinko, the valuation suggests now would be the time!

Xcel Energy (XEL)

Xcel Energy (NASDAQ:XEL) is better known as a regulated utilities company but it is establishing itself as a renewable energy provider. This stock is currently trading below the low mark of the one-year analyst price target range of $57 to $72. The average price target of $62.74 represents nearly 15% upside which is significant for a utilities stock. 

Xcel provides natural gas and electricity services and in 2018, it announced that by 2050 it would serve 100% carbon-free power to its more than five million customers. How is Xcel going to manage this? It is investing heavily in renewable energy infrastructure such as hydroelectric power, nuclear plants, solar panels and wind turbines.

Shares trade at just 2.2x sales and 15.6x forward earnings indicating that the stock may be undervalued. On top of that, Xcel has continued to grow its net income at a CAGR of 7% for the last 10 years. Given that Xcel has also increased its dividend for more than 20 straight years and currently pays a yield of 3.92%, this stock should be high on any investor’s list of renewable energy stocks to buy. 

On the date of publication, Ian Hartana and Vayun Chugh did not hold (either directly or indirectly) any positions in the securities mentioned in this article. The opinions expressed in this article are those of the writer, subject to the InvestorPlace.com Publishing Guidelines.

Chandler Capital is the work of Ian Hartana and Vayun Chugh. Ian Hartana and Vayun Chugh are both self-taught investors whose work has been featured in Seeking Alpha. Their research primarily revolves around GARP stocks with a long-term investment perspective encompassing diverse sectors such as technology, energy, and healthcare.

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The post Wall Street Favorites: 3 Renewable Energy Stocks With Strong Buy Ratings for May 2024 appeared first on InvestorPlace.

However, some restaurants have been facing pushback for their higher prices. Some people are opting to prepare meals at home to save money, and the trend can continue as the cost of living remains elevated. Luckily, some restaurant stocks to buy are still performing well, including these top picks.

Chipotle (CMG)

Chipotle (NYSE:CMG) has received plenty of love on Wall Street. The stock has 18 Buy ratings and 8 Hold ratings from analysts. The stock has received several price target hikes, including a $3,600 target, implying a 14% upside.

The Mexican restaurant chain has been outperforming many stocks. It’s up 38% year-to-date and has surged 339% over the past five years. A recently announced 50-for-1 stock split has brought additional attention to the company’s stock. 

Chipotle reported a solid first quarter, while other restaurant firms warned about pricing pressure hurting their growth. The restaurant firm reported 14.1% year-over-year (YOY) revenue growth and 23.9% YOY growth in its diluted EPS. Chipotle opened 47 new restaurants and is on track to open 285 to 315 restaurants in 2024.

Many consumers buy food at Chipotle because it is a healthier alternative to other fast food restaurants. Healthy food comes with a higher price, and consumers have stuck around despite the price hikes.

Wingstop (WING)

If you like Chipotle, you’ll probably like Wingstop (NASDAQ:WING) too. This stock comes with a lofty valuation but delivers high revenue and earnings growth. It’s received several Buy ratings from Wall Street analysts. The highest price target of $461 per share suggests the stock can rally by an additional 18%. 

Wingstop crushed the stock market. It’s up 53% year-to-date and surged 393% over the past five years. Investors continue to load up on the stock due to its impressive financials. System-wide sales increased by 36.8% YOY in Q1 2024. The company also opened 65 new restaurants during the quarter, which was more than Chipotle. Total revenue increased by 34.1% YoY, while net income surged by 83.5% YoY.

These developments point to rapid profit margin expansions and plenty of runway for future growth. The company closed the quarter with 2,279 restaurants, which includes 305 international restaurants.

Texas Roadhouse (TXRH)

Texas Roadhouse (NASDAQ:TXRH) won plenty of support on Wall Street with 10 Buy ratings and 14 Hold ratings. The highest price target of $190 per share suggests a 13% gain is on the way.

Like the two restaurant stocks that came before it, Texas Roadhouse has outperformed the stock market. It’s up 39% year-to-date and gained 210% over the past five years. The southwestern steakhouse chain trades at a 34 P/E ratio and offers a 1.34% yield. The valuation can attract value investors scared off by the valuations of the other two restaurant stocks. It even has a good dividend growth rate. Texas Roadhouse recently hiked its quarterly dividend from $0.55 to $0.61 per share. That’s a 10.9% YOY improvement.

Texas Roadhouse also has financials worth your attention. Revenue increased by 12.5% YOY, while net income jumped by 31.0% YOY in Q1 2024. The company opened nine company restaurants and three franchise restaurants in the quarter. Texas Roadhouse has 753 total restaurants across its brands. 

On the date of publication, Marc Guberti did not hold (either directly or indirectly) any positions in the securities mentioned in this article. The opinions expressed in this article are those of the writer, subject to the InvestorPlace.com Publishing Guidelines.

Marc Guberti is a finance freelance writer at InvestorPlace.com who hosts the Breakthrough Success Podcast. He has contributed to several publications, including the U.S. News & World Report, Benzinga, and Joy Wallet.

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The post Wall Street Favorites: 3 Restaurant Stocks With Strong Buy Ratings for May 2024 appeared first on InvestorPlace.

This translates to greater resilience during market downturns as they can tap into deep capital pools and solid credit positions. However, this also means blue-chip stocks have lesser potential for appreciation due to greater market cap weight that needs to be pushed up. For this reason, investors typically seek blue-chip stocks to buy during market downturns, so the valuation boost can be higher.

After the mid-April slump, the S&P 500 is bouncing back toward its all-time high of 5,264.85, having gained 10% year-to-date (YTD). But with so many companies considered blue-chip, which ones have the highest rally potential?

Costco (COST)

Two key ingredients make Costco (NASDAQ:COST) a special retail blue-chip stock to buy. One is financial and the other is social. On one hand, the company relies on membership fees which provide predictable revenue flows. On the other hand, Costco facilitates this model in a world of rampant retail theft that is forcing Walmart (NYSE:WMT) and Target (NYSE:TGT)to pack up and leave in many areas.

Therefore, Costco’s reliable, high-margin business model, based on membership access and tighter control, acts as a shield against social dysfunction. Moreover, Costco’s negotiated larger volume of goods secures regular good deals for customers, even though these goods may be limited in range. 

In addition, this makes customers think of Costco during times of both inflation and recession. In March, the company delivered its Q1 of 2024 earnings report, showing 5.6% increase in revenue to $116.2 billion (24 weeks ended). The retailer’s net income increased to $1.7 billion from $1.46 billion a year-ago quarter.

At 0.335 debt to equity ratio, it is the lowest in ten years, close to February 2020 level of 0.337. As far as analyst forecasts go, COST shares continue to elicit strong buy consensus. Nasdaq’s average COST price target is now $792.36 versus the current $797.38 per share. The stock appreciated by 19% YTD, or 212% over five years, making this company one of the safest blue-chip stocks to buy.

Advanced Micro Devices (¶¶Òõ×îаæ)

Alongside Nvidia (NASDAQ:NVDA), Advanced Micro Devices (NASDAQ:¶¶Òõ×îаæ) is a top chipmaker choice that supplies cutting-edge solutions for generative artificial intelligence (AI) infrastructure.

However, even though the company beat earnings per share (EPS) estimates in the last three consecutive quarters, ¶¶Òõ×îаæ’s shares experienced a notable drop. Not so long ago, they declined by almost 9% and traded at $144.27. This downturn occurred as ¶¶Òõ×îаæ shares are down 14% in the last three months, while NVDA is up by 22% for the same period

The reasons for the slump are two-fold. First, the ASML Holding (NASDAQ:ASML) missed estimated orders forecast in Q1. Second, Nvidia has received such an incredible investment focus that it’s now considered an inflation hedge according to Bloomberg Markets Live Pulse survey.

But this puts ¶¶Òõ×îаæ’s rally potential higher. Not only is ¶¶Òõ×îаæ’s flagship AI chip, MI300X, a strong competitor at a lower price point, but also the company is pushing the envelope on accelerated processing units (APUs). These chips combine GPU and CPU in a single package, with Ryzen 8000G as the latest to rival console gaming performance.

Without having to buy a discrete GPU for gaming, ¶¶Òõ×îаæ’s APU push could land it as the dominant integrated graphics brand. At the same time, the company still caters to higher tier users with budget-friendly and competitive discrete GPUs like the RX 7000 series. Moreover, ¶¶Òõ×îаæ’s RDNA 4 GPUs (RX 8000) are rumored to rival Nvidia’s flagship RTX 4080 for half the cost.

Taking these factors into account, ¶¶Òõ×îаæ analyst consensus, pulled by Nasdaq, is a strong buy. The average ¶¶Òõ×îаæ price target is $192.4 versus current $150.56 per share.

Linde PLC (LIN)

Following the attack on the Nord Stream pipelines, Linde (NASDAQ:LIN) went through multiple valuation spikes. Although based in the U.K., the gas giant has global operations to help diversify Europe’s energy security. Moreover, LIN’s long term contracts and supply chain makes it a wide moat company.

In Q1 of 2024 earnings, Linde PLC reported 6% operating profit increase to $2.1 billion. It delivered $1.8 billion in net income, up 8% year-over-year (YOY). Not only is Linde generating ample cash in every quarter, but also it returned $1.7 billion to shareholders via dividends and stock buybacks.

Pursuing net zero efforts, Linde PLC signed a long-term agreement with H2 Green Steel on May 1st, the world’s first large-scale green steel production plant. Showing strong dedication to ESG compliance, investors can be assured that Linde PLC’s 0.523 debt to equity ratio continues to take advantage of favored financing. 

Given its strong fundamentals and robust returns to shareholders, Linde PLC represents one of the most attractive blue-chip stocks to buy. Nasdaq’s consensus is another strong buy. The average LIN price target stands at $488.91 versus the current $434.78 per share. Even the low estimate of $452 is higher than the present price level.

On the date of publication, Shane Neagle did not hold (either directly or indirectly) any positions in the securities mentioned in this article. The opinions expressed in this article are those of the writer, subject to the InvestorPlace.com Publishing Guidelines.

Shane Neagle is fascinated by the ways in which technology is poised to disrupt investing. He specializes in fundamental analysis and growth investing.

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It’s a company that’s using a new application of AI that will revolutionize a $13.1 trillion industry. I’ll share more details during my The Next $1 Trillion AI Stock strategy session scheduled for Tuesday, May 21st at 7 p.m. Eastern.

You can reserve your spot by going here.

Hello, Reader.

If you ever stumble upon a genie offering to grant you three wishes, you might exhaust your first two on things like a younger physique or a beachfront mansion.

But if you’re an investor, by the time your final wish rolls around, I’ll bet you opt for something of major, practical value… like the ability to invest as perfectly and knowingly as God himself.

Ironically, applying God-like investment acumen to the stock market would subject you to long periods of hellishly poor results.

That’s not a guess or an assumption. It is the shocking conclusion of a 2016 research study.

Allow me to salute Captain Wesley Gray, a Marine veteran with a Ph.D. in finance from the University of Chicago, who designed one of the most fascinating and illuminating investment studies ever conducted.

Titled Even God Would Get Fired as an Active Investor, this study is now 8 years old, but the lessons it imparts are as eternal as God himself.

In today’s Smart Money, I’ll present this captivating study that explains the obstacles even an omniscient figure like God would run into as an investor. Hint: Having patience is key.

Plus, although patience is an investing virtue, I’ll also share a timely AI opportunity that you don’t have to wait for. It’s one you don’t want to miss out on.

Let’s dive in…

Infinite Wisdom, Finite Returns

To conduct his study, Gray tracked the hypothetical portfolio only a “god-like” investor could have created by knowing “ahead of time exactly which stocks were going to be long-term winners and long-term losers.”

Spanning from the end of 1926 through the end of 2016, Gray’s researchers computed five-year “look ahead” returns for the 500 largest U.S.-traded stocks, and then split those results into deciles. The top decile (i.e., 10%) contained the 50 stocks that would produce the largest gains over the following five years. The bottom decile contained the 50 worst-performing stocks over the following five years.

Gray’s “God Portfolio” would buy the top decile of five-year gainers at the start of each five-year period, and then rebalance the names in the portfolio on January 1 of every fifth year.

As Gray explains…

The first portfolio formation is January 1, 1927, and is held until December 31, 1931. The second portfolio is formed on January 1, 1932, and held until December 31, 1936. This pattern repeats every fifth year…

As expected, a portfolio formed on the names that have the best 5-year performance, have the best 5-year performance. Duh. God would compound at nearly 29% a year… but the details are interesting.

The “details” to which Gray refers are the shockingly large drawdowns – or mark-to-market losses – the God Portfolio would have endured during its 90-year run.

For example, this “perfect portfolio” would have plummeted 76% from August 1929 to May 1932 and spent nearly four years underwater.

What We Can Know

But the pain doesn’t end there. On nine other occasions, the God Portfolio would have suffered drawdowns ranging from 20% to 41%. The chart below details those bumps in the road.

Clearly, a “perfect portfolio” can deliver imperfect results for a time. Even possessing perfect foresight, enduring a 20% drawdown – or 74% drawdown – would not be a pleasant experience. But at least you would know the delightful outcome in advance.

We mere mortals possess no such assurance of “things not seen.” For all we know, a 20% drawdown could become 30%, 40%, or 80%… and it could last for many years. We have no way of knowing.

So, the only thing we can know with relative certainty is what we own, not where it’s headed.

We can never know what others will pay for it tomorrow. But if what we own is valuable, and is ultimately increasing in value over time, others will recognize that value eventually… and pay for it.

Although I can’t say I’m as omniscient as God himself, I do know when something is valuable… and when to exercise patience.

For example, in my trading service, I issued a buy recommendation in November 2019 on a wireless telecommunications company called Aviat Networks Inc. (AVNW) – a 5G play.

Just four months later, Aviat had slumped nearly 50% to nearly $3 per share. However, given its fundamentals and growth trajectory, I expected Aviat to move up substantially. So, we sat tight and waited for the stock to rebound.

And did it ever.

Aviat Networks began to turn around in May 2020 and has not looked back since. Since my recommendation, the stock is now up around 350%!

While patience is a virtue, though, meeting the moment is often just as important.

I believe one such moment is here – and it’s all about the next phase of the AI Revolution that I’ll be talking about during my upcoming strategy session.

The first phase of the AI boom was led by companies like Nvidia Corp. (NVDA), Microsoft Corp. (MSFT), and Alphabet Inc. (GOOG). In this early stage of the AI boom, investors didn’t need patience to see incredible gains.

However, as the AI boom is moving into a new phase, a different set of companies will lead the way. For example, I’ve identified a company that’s using a new application of AI that could revolutionize a $13.1 trillion industry. And the time to act is now.

I will share more details about this timely opportunity at my The Next $1 Trillion AI Stock special strategy session on Tuesday, May 21, at 7 p.m. Eastern time. During the event, I’ll also share my AI accelerator strategy that could help you make up to 40 years of Nvidia-type gains on this stock in mere months.

Reserve your spot for that strategy session by going here now.

Regards,

¶¶Òõ×îаæ

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Smart investors jump in when familiar names experience a correction, hoping to join the ride to recovery. However, most investors tend to focus on big names, ignoring the growing tech stocks hidden on the sidelines. 

Today, we’ll look at three tech stocks showing signs of at least 10% growth in revenue and earnings. The companies are sorted based upon the highest earnings growth and in descending order. Let’s dive in.

AppFolio (APPF)

Cloud technology has transformed the ways businesses work in various sectors. Companies like AppFolio (NASDAQ:APPF) provide real estate industry solutions that enable customers to address critical operations and transform their businesses digitally. 

The company’s solutions cater to property managers and investment managers alike. AppFolio offers features that help with tenant screening, insurance-related risk mitigation services, payments and property management. 

Recently, AppFolio reported impressive quarterly results, with revenue touching $187.4 million, up 38% from the same quarter of the previous year. The company’s EPS improvement from a 99-cent loss to a $1.07 gain was even more impressive, up 208% year-over-year (YOY). 

President and Chief Executive Officer (CEO) Shane Trigg attributes the excellent performance to the company’s commitment to innovation and exceptional service. Also, the company fosters deep connections with customers and drives continued success. 

Therefore, AppFolio expects revenues to end between $766 million and $774 million while operating margins grow 23% to 24% for fiscal year 2024. With solid growth and growing profitability, including AppFolio in your tech stocks watchlist makes a lot of sense.

Wix.com Ltd.(WIX)

If you want to attract customers online, you’ll need a website. This makes companies like Wix.com Ltd. (NASDAQ:WIX) an essential part of a growing company’s strategy for scaling its business. 

Wix.com offers solutions that let businesses of different sizes operate various functions, like selling goods, taking reservations and scheduling appointments. Recently, WIX announced the release of AI Website Builder, incorporating artificial intelligence (AI) into the site-building experience. And, it helps customers build unique and professional websites. 

Furthermore, Wix.com ended fiscal year 2023 with a bang, exceeding its targets and hinting at significant growth in future years. Revenue was up 13% YOY and reached $1.56 billion. Also, EPS came in at 58 cents, a 108% improvement from last year’s loss of $7.33 – a full two years earlier than guidance. 

In addition, the company achieved a record free cash flow margin of 16%. Wrapping it up, Wix.com anticipates continued momentum through fiscal year 2024. Therefore, with a strong product list and improved profitability targets, WIX stock belongs on any growth investor’s tech stocks to buy and hold watchlist. 

Okta (OKTA)

If you’ve worked in the corporate world, you may have heard of the terms single sign-on and multi-factor authorization. These security features ensure that only authorized users can access their software. The growth of technology has made companies like Okta (NASDAQ:OKTA) an crucial part of protecting intellectual property and company-sensitive information. 

Okta offers a full-featured identity access management (IAM) solution. It assists companies to employ multi-factor authentication, single sign-on and other features that seamlessly manage identities in the customer’s system. 

Recently, the company announced Fine Grained Authorization. It allows developers to build flexible, scalable and easy-to-use authorization models for business and intended use cases.

Okta ended fiscal year 2024 with impressive revenues and cash flow. Total revenue reached $2.3 billion, up 22% YOY. Also, net loss saw relative improvements, reaching -$2.17 compared to last year’s -$5.16. Meanwhile, free cash flow reached $489 million.

Okta’s focus on modernizing and simplifying identity infrastructure has positioned it well to capitalize on market demand. Moving forward, Okta is optimistic about 2025, anticipating total revenue reaching $2.495 to $2.505 billion.

So, if you want to add tech companies to your portfolio for growth, OKTA stock should be one of your targets.

On the date of publication, Rick Orford did not have (either directly or indirectly) any positions in the securities mentioned in this article. The opinions expressed in this article are those of the writer, subject to the InvestorPlace.com Publishing Guidelines.

Rick Orford is a Wall Street Journal best-selling author, investor, influencer, and mentor. His work has appeared in the most authoritative publications, including Good Morning America, Washington Post, Yahoo Finance, MSN, Business Insider, NBC, FOX, CBS, and ABC News.

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Are you familiar with the 10,000-hour rule?

Made popular by Malcolm Gladwell in his book “Outliers,” the theory states that it takes 10,000 hours of practice to achieve mastery of complex skills.

Do you want to play the cello like Yo Yo Ma? Want to code like Mark Zuckerberg? You’ll need 10,000 hours of intense practice.

A famous story about Pablo Picasso illustrates this point.

Picasso was approached by an admirer while he was at a Paris market. The admirer asked for a quick sketch on a paper napkin.

Picasso quickly complied and handed the napkin back with a request for one million Francs.

The admirer said: “How can you ask for so much? It took you five minutes!”

“No,” he replied, “It took me 40 years to draw this in five minutes.”

Now, this story may not be true, but it demonstrates that painting like Picasso is less about the five minutes spent on one napkin drawing, and more about the 10,000+ hours spent on your artwork.

Like all things, technology is changing the 10,000-hour rule as well.

We’ve still not replaced the requirement for intense practice … but artificial intelligence is making it easier and easier to achieve mastery.

Digital twins advance health care

Maybe you saw the recent story in The Wall Street Journal Thursday about how AI is being used to make medical training and treatment much easier.

From an article titled: “A ‘Digital Twin’ of Your Heart Lets Doctors Test Treatments Before Surgery.”

Clinicians envision a tomorrow where nearly everyone could have a digital twin created by artificial intelligence, using information from medical exams, wearable data devices and medical records. AI could search through data of others with comparable issues and run simulations while providing continuous monitoring of a patient’s health.

Essentially, the doctor could “practice” his treatment on the digital twin without doing anything to the real person. The article continues…

Like a crash-test dummy, a digital twin could be used to test drugs and conduct trials without harming the actual patient. A digital twin of a heart could allow surgeons to visualize the procedure and the patient’s specific vessels before an operation. The technology could be used to design highly accurate prosthetics or determine the most effective rehabilitation exercises. Digital twins of a patient’s uterus and cervix could help predict pregnancy outcomes.

Imagine if your surgeon can establish his or her mastery on a digital twin of your body. Not only can they test treatments, but they can even map out surgeries specific to your body before they happen!

AI usage fuels innovation

Another example of how digital twins accelerate innovation is in the testing of new technology. For example, let’s imagine you designed a new electric car battery. Pre-AI, you must envision it, create blueprints, and then build a bunch of prototypes that will have slight differences.

That’s because you’re trying to get just the right mix of materials and battery chemistry… at a cost that makes sense.

Once you spend all that time designing and building prototypes, then you must do a ton of testing.

You might test 50 different versions of your battery – and that can take years.

What does one version do in 100-degree temperatures? What about 10 degrees?

What does it do when it’s wet? Or in the desert?

How does it perform when used 15 times day? Or 15 times a year?

How long does it perform well? How fast does its performance degrade over time?

This kind of testing of innovative products is long and tedious – but absolutely necessary.

And it’s easy to think of examples in many different industries.

Car companies must do it.

Drug makers must do it.

Medical device companies must do it.

Food companies must do it.

 At the end of the day, creating and testing a new idea… is a brutal amount of work and it takes a ton of time.

 And here again is where a digital twin can speed the process. All the different testing conditions can be done digitally, without the cost and expense of prototypes and tedious data collection under specific conditions.

 The faster you can test, the faster you can innovate.

The tailwinds behind AI investments

Regular Digest readers know that Jeff Remsburg and I joke that we cannot write about AI enough. The opportunity is so big that it will change our society.

Consulting firm PriceWaterhouseCoopers estimates that the total economic impact of AI on the global economy will total $15.7 trillion between now and 2030. With all that money at stake, it’s no wonder innovators are racing to take advantage before the competition.

Global macro investing expert ¶¶Òõ×îаæ has been tracking AI advancement for years.

Here is how he addressed the AI opportunities to his readers.

We believe that artificial intelligence (AI) is only just scraping the surface of its capabilities – and the profits that follow from this revolutionary technology could be life-changing.

 Now, I’m a “macro investor,” which simply means I look at the investing world from a “top-to-bottom” perspective. I chisel away the fleeting trends that often distract investors (meme stocks, anyone?) until we uncover the most dominant “megatrends” – the ones that produce outstanding investment opportunities.

Often, these opportunities fly under the radar, especially when a megatrend is early in its development. But that’s the best time to establish a position in them.

Establishing an early position is the key to getting that 10-bagger

Every AI company that has reached a $1 trillion market cap has showered its investors with wealth-building opportunities.

¶¶Òõ×îаæ believes he has found the next one.

When Eric talks about an opportunity that big, we listen. He has found more than 41 stocks that have gone on to soar more than 10X.

That’s why around the InvestorPlace offices he’s known as “Mr. 1,000%.”

The company Eric is referring to is using a new application of AI that he believes will revolutionize a $13.1 trillion industry.

He’ll share more details on all that during a special strategy session we have scheduled for Tuesday, May 21st at 7 p.m. Eastern.

You can reserve your spot for that strategy session by going here.

Enjoy your weekend,

Luis Hernandez

Editor in Chief, InvestorPlace

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The post Accelerating Gains with AI Innovation appeared first on InvestorPlace.

While the term Web3 refers to a vast digital landscape driven by a fast-paced, secure environment driven by digital ownership and cutting-edge integrations like those promoted by the metaverse, it’s through gaming that we’re likely to gain our first real taste of the technology and its potential. 

At least, this is the perspective of Microsoft (NASDAQ:MSFT) CEO Satya Nadella in the wake of the tech leader’s $68.7 billion acquisition of Activision Blizzard, who said that “gaming is the most dynamic and exciting category in entertainment across all platforms today and will play a key role in the development of metaverse platforms.”

With the gaming landscape set to make inroads into the brave new world of Web3, we’re likely to see its most innovative stocks seize the opportunity to grow alongside the technology. With this in mind, let’s take a deeper look into three key opportunities among gaming stocks that could experience growth as the Web3 gaming landscape kicks into gear. 

Unity (U)

When it comes to innovative gaming stocks, few are as cutting-edge as Unity (NYSE:U). Already, Unity has made strides in the world of decentralized games with The Sandbox, Decentraland and DOGAMÍ, all of which utilize Web3 components like non-fungible tokens (NFTs), monetization and blockchain. 

The stock itself has struggled to recapture its impressive performance during the last cryptocurrency bull market in late 2021, but Q1 2024 revenue of $460.38 million beat expectations by $26.86m and highlights the potential of the innovative gaming firm. 

Crucially, Unity has also welcomed a new interim CEO, Jim Whitehurst, in recent weeks and has projected growth through a series of new initiatives for the firm focused on improving customer sentiment and collaboration. 

The positive movements under Whitehurst have seen the likes of Wedbush place an ‘outperform’ rating on the stock with an impressive price target of $33.50. 

As the industry continues to grow, Unity stands as a key firm to supplement the growth of more impactful games developed through The Sandbox and Decentraland, which also has direct links to the emergence of the metaverse.

Konami (KNM)

Japanese gaming giant Konami (LON:KNM) has enjoyed a strong start to 2024, posting growth of 35.97% in Q1 2024, which was supplemented by first-quarter earnings that surpassed forecasts by 3.2%. 

Konami has been no stranger to the burgeoning Web3 gaming landscape and began recruiting for 13 specialist positions in the industry back in 2022 with the intention of making inroads into the new frontier. 

Last year saw Konami enter the world of blockchain gaming with the announcement of its title, Project Zircon, which is a massively multiplayer online (MMO) game built around a vast community of players that features NFT trading. 

Project Zircon appears to resemble a foray into metaverse gaming for Konami, and its popularity is likely to carry a direct impact on the scale in which the company embraces Web3 gaming in the future. For a gaming studio that has a track record of innovation and beating expectations, KNM could be a smart portfolio addition for investors. 

Coinbase (COIN)

In terms of 2024 performance, Coinbase (NASDAQ:COIN) is already a stock to watch. As a firm that operates primarily as a cryptocurrency exchange, the stock forms a tight correlation to the performance of crypto markets. As a result, buying Coinbase stock is akin to betting on the market capitalization of crypto, and the 69% growth posted in Q1 2024 by COIN as a result is unsurprising following Bitcoin’s strong start to the year. 

But Coinbase has a trick up its sleeve to secure growth beyond its crypto correlations: the firm has been investing heavily in Web3 gaming. 

Coinbase Ventures has sought to build a thriving Web3 gaming ecosystem and counts projects like Ancient8, Avalon, and Azra Games, among many other major industry-relevant investments within its portfolio. 

The platform itself is also likely to be an essential tool as the Web3 gaming landscape grows. The launch of Coinbase’s Web3 wallet can pave the way for the storage of NFTs and game-specific digital assets like currencies to support ownership and is committed to simplifying access to the latest iteration of the internet. 

Iconic Wall Street investor Cathie Wood, CEO of Ark Invest, counts COIN as the largest holding in her investment firm’s portfolio and has specifically highlighted the stock as a key beneficiary from the return of a Bitcoin bull market in the near future. This makes Coinbase a stock that commands attention throughout the retail landscape and beyond.

On the date of publication, Dmytro Spilka did not hold (either directly or indirectly) any positions in the securities mentioned in this article. The opinions expressed in this article are those of the writer, subject to the InvestorPlace.com Publishing Guidelines.

Dmytro is a finance and investing writer based in London. He is also the founder of Solvid, Pridicto and Coinprompter. His work has been published in Nasdaq, Kiplinger, FXStreet, Entrepreneur, VentureBeat and InvestmentWeek.

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The post 3 Gaming Stocks Poised to Dominate the Web3 Frontier appeared first on InvestorPlace.

As such, a severe hurricane season could lead to a nexus of financial conditions for a few key companies whose business models apply directly to hurricane preparation and recovery. While it may seem like this is profiting from the misfortune of others, it’s important to remember that the driver of most emergency response systems in the U.S. is money. Thus, most investors can rest assured investing in such companies, as their services tend to accelerate relief efforts and improve reconstruction outcomes. 

Lowe’s (LOW)

One of the two halves of America’s home improvement duopoly, Lowe’s (NYSE:LOW) tends to see spikes in sales before and after hurricanes. This trend can be attributed to people both trying to prepare for the effects and recover from them on their own. Some analysts speculate that increased sales of sandbags, wood planks, concrete mixes and other general fortification supports are common. Lowe’s even sells things like large battery cells and backup generators, which could see increased demand before a hurricane.

The company’s stock price has seen relative stability year-to-date and currently trades 12% below its 52-week high. It offers a steady dividend of 1.90% for its shareholders and trades at a price-to-earnings ratio of 17.60, which implies it may still have room to grow naturally. Pair this with the potential for a spike in revenue during the hurricane season and LOW stock could provide a lucrative short-term play among hurricane stocks to buy.

Generac Holdings (GNRC)

Widely diversified across several forms of generator technology and power storage, Generac Holdings (NYSE:GNRC) has performed tremendously in the last month despite wider market conditions. The company offers everything from solar power cells to bi-fuel generators and serves both homeowners and business owners with its catalog. The stock is currently at 39.44x for its price-to-earnings ratio, which while higher than the often quoted 25x threshold, is still lower than the electrical equipment’s industry average of 47.28x.

Even better for Generac’s investors, the company’s first-quarter results for 2024 reported a net income of $26 million, or $0.39 per share, as compared to $12 million, or $0.05 per share, for the same period of 2023. This represents a 116% increase year-over-year for the quarter despite relatively stagnant net sales of $888 million. For investors, this means Generac has focused on profitability right before a potential spike in sales, which could lead to some rally-inspiring Q2 and Q3 results this year depending on the severity of the hurricane season.

Fluor (FLR)

One of the stocks with the most exposure to the hurricane industry is Fluor (NYSE:FLR) and its reach has recently gotten bigger. As of February 8, 2024, Fluor is officially the U.S. Federal Emergency Management Agency’s direct support for providing recovery services to its East Zone region. Per FEMA, the East Zone consists of Regions III and IV, which encompass the entire eastern seaboard up to New Jersey. 

With large, populous states like Florida, Georgia, North Carolina and Virginia falling under its jurisdiction, the East Zone contract provides Fluor with an exceptional revenue stream in the event of a nasty hurricane season. The contract, which operates on indefinite-delivery/indefinite-quantity has a one-year base period with four, one-year option periods and is valued at up to $525.6 million.

As such, Fluor almost certainly will profit this hurricane season since it has a blank check from the government and because its main competitor for these contracts, AECOM (NYSE:ACM) has fallen out of favor due to the outcome of its recent Hurricane Katrina lawsuit settlement.

On the date of publication, Viktor Zarev did not have (either directly or indirectly) any positions in the securities mentioned in this article. The opinions expressed in this article are those of the writer, subject to the InvestorPlace.com Publishing Guidelines.

Viktor Zarev is a scientist, researcher, and writer specializing in explaining the complex world of technology stocks through dedication to accuracy and understanding.

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The post The 2024 Hurricane Season Playbook: 3 Stocks to Add to Your Portfolio for Massive Gains appeared first on InvestorPlace.

When it comes to potentially making fortunes in the stock market, the key is to always invest in the next big thing. Don’t pile into what’s big today – focus on what will be big tomorrow. 

Here in May 2024, for example, all eyes are on what we’re calling AI 1.0 – AI software and chatbots like ChatGPT. Since their emergence, they’ve taken over the world and continue to be very popular. 

But when it comes to what will be big tomorrow, we’re focused on AI 2.0. – an emerging AI technology that Elon Musk himself is going all-in on. 

In fact, many say he’s betting Tesla’s (TSLA) entire future on this next-gen iteration. And he’s not alone. 

Nvidia (NVDA), the poster child of the AI Revolution, is also betting big on AI 2.0. 

So are Microsoft (MSFT) – the world’s largest AI company – and Amazon (AMZN). Even OpenAI, the leader of AI 1.0, is staking a claim. 

All are pouring millions of dollars into AI 2.0.

This is the next wave of AI – the next big thing. And, yes, this is a tech megatrend you need to invest in today if you want to make a potential fortune.

AI 2.0: The Rise of the Robot

So, what exactly is AI 2.0?

The real-world application of AI technologies via humanoid robots. 

Yes, I’m talking about AI-powered robots like the ones you’ve seen in science-fiction movies like “iRobot.” 

This application may seem like a pie-in-the-sky dream. But humanoid robots are already in development. This new AI wave is here. 

Don’t believe me? Well, Nvidia also recently announced the introduction of the Project GROOT Foundation AI model, designed to enhance the performance of humanoid robots, alongside a new system-on-a-chip named Thor for robotic use.

This move comes as notable companies such as OpenAI, Microsoft (MSFT), Tesla (TSLA) (more on that in a moment), Amazon (AMZN), and Intel (INTC) heavily invest in humanoid robot development. With Nvidia joining the fray, the advent of sophisticated robots appears imminent. And we’re head over heels for this compelling investment opportunity in AI robotics.

In fact, as I write, Tesla is busy developing a humanoid robot called Optimus. And already, it can do things like fold clothes, make eggs, exercise, and dance. 

Tesla sees a world in the not-too-distant future where these robots are everywhere, helping people all across the globe complete menial tasks like cooking, cleaning, organizing, and more. 

Elon Musk is even on record saying that in time, Optimus could be bigger than Tesla’s core vehicle business. 

And we don’t think he’s delusional. If he is, then it seems Jeff Bezos must be, too. 

The former Amazon founder and CEO is reportedly pouring $100 million into a humanoid robot startup called FigureAI.

Clearly, he sees a bright future for humanoid robots as well. 

And guess who else is investing in FigureAI? Bezos’ old company, Amazon. The titan is pouring $50 million into FigureAI. So is Microsoft, with a $95 million commitment to the startup – not to mention $50 million from Nvidia, too.

Or how about OpenAI? The ChatGPT creator is already FigureAI’s biggest investor, and it’s throwing another $5 million into the firm. 

Plus, Intel (INTC) and Samsung are also reportedly investing in FigureAI right now as well. 

The Final Word

Folks, it seems the writing is on the wall. 

You may think of AI-powered humanoid robots as a mere sci-fi concept. 

But as with the world’s most powerful people, the foremost AI innovators clearly think humanoid robots are the next frontier, too. 

They see them as AI 2.0. And they’re dedicating millions of dollars to create this tech right now. 

We believe we’re seeing this boom’s next evolution unfold right now. And that means it’s time to grab your slice of the pie.

Find out how to do just that right now with a few of our favorite stock picks.

On the date of publication, Luke Lango did not have (either directly or indirectly) any positions in the securities mentioned in this article.

P.S. You can stay up to speed with Luke’s latest market analysis by reading our Daily Notes! Check out the latest issue on your Innovation Investor or Early Stage Investor subscriber site.

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The post Why We’re Excited for the Next Wave of AI Growth appeared first on InvestorPlace.

• Oculis Holding reported earnings per share of -50 cents. This was below the analyst estimate for EPS of -41 cents.
• The company reported revenue of $254,061.
• This was 9.26% worse than the analyst estimate for revenue of $280,000.

InvestorPlace Earnings is a project that leverages data from TradeSmith to automate coverage of quarterly earnings reports. InvestorPlace Earnings distills key takeaways including earnings per share and revenue, as well as how a company stacks up to analyst estimates. These articles are published without human intervention, allowing us to inform our readers of the latest figures as quickly as possible. To report any concerns or inaccuracies, please contact us at editor@investorplace.com.

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The post OCS Stock Earnings: Oculis Holding Misses EPS, Misses Revenue for Q1 2024 appeared first on InvestorPlace.

That $13.1 trillion industry, Eric says, will be a big beneficiary of the AI boom’s Phase 2. So, I invited Eric to join us today so what exactly is causing us to move into AI’s second phase – and to tell us more about his strategy session. Take it away, Eric…

Hello, Reader.

Most investors missed out on the first phase of the artificial intelligence boom.

You know… that era of advancements marked by ChatGPT, AI chips, rapidly evolving robots – and substantial gains.

That’s too bad.

However, another wave of AI innovation is coming…

This time, though, it has nothing to do with any of the previous AI advancements that the mainstream media talks so much about.

In fact, the opportunity here is significantly larger than any of those AI applications.

So, let’s dive into what to expect from this next phase of the AI boom.

And where to find some of that opportunity.

But first, let’s chat some about how we got to this spot in the AI Revolution…

The First Phase of the AI Boom

Although artificial intelligence has been around since the 1950s, it wasn’t until OpenAI released ChatGPT to the public in November 2022 that interest in AI really caught fire.

For perspective… following ChatGPT’s launch, more than 1 million people downloaded it in five days. And over 100 million people signed up for it in two months.

In comparison, it took Facebook more than 4.5 years to reach 100 million users.

In the early phase of the AI boom in 2023, seven clear winners emerged. You know their names. CNBC’s Jim Cramer dubbed them the “Magnificent Seven.”

And their performances certainly were magnificent. They gained an average 111% in 2023.

Of course, the biggest winner of 2023’s boom was Nvidia Corp. (NVDA), the AI chip king, which surged 239% in 2023. Since the unveiling of ChatGPT, shares of the company have skyrocketed nearly 450%.

In different ways, each of these companies has been providing the hardware, software, and processing power that enable enterprises to create and operate AI platforms.

They enabled the AI Revolution.

For example…

• Microsoft Corp. (MSFT) is developing its own in-house semiconductor chip: code name Athena.
• Alphabet Inc. (GOOGL) also has created its own new ARM-based CPU processor, called Axion.
• Amazon.com Inc. (AMZN) has Amazon Q.
• Tesla Inc. (TSLA) has Dojo.
• And Meta Platforms Inc. (META) has Llama 3.

Their efforts are why large language models (LLMs), like ChatGPT and Anthropic’s Claude 3, can be developed so quickly.

Cramer may call these companies the Magnificent Seven, but I think of them more as the “AI Seven.”

However, the sudden dawn of the entire AI boom caught most people – and many investors – by surprise. Therefore, a lot of folks missed out on those big gains from the AI Seven.

The good news is the AI Revolution is about to enter a new phase, and a different set of companies will lead the way. The AI Seven is about to become the AI Eight… Nine… and beyond…

We’ve had the AI enablers. Now enters the “AI appliers.”

The Next Phase of the AI Boom

Unlike the AI enablers, these companies are not at the forefront of producing the material needed to create AI. Instead, they are employing AI technology within their own products and services.

AI appliers are everywhere… and growing by the day.

That universe includes companies as diverse as beauty-products purveyor Coty Inc. (COTY), gold and copper explorer, Ivanhoe Electric Inc. (IE), industrial-solutions provider Rockwell Automation Inc. (ROK), and sports technology company Genius Sports Ltd (GENI).

Clearly, many of these companies operate in niches that are normally not associated with technology. So, they are still lying low… under the radar – but they and many others are ready to explode with the next phase of the AI boom.

Not all of them, however, will deliver gains like we saw from Nvidia and the rest of the AI Seven.

That’s why I’ve spent the past few months deep in research… and I’ve identified a company that I believe will become the next $1 trillion AI stock.

That’s the main topic of our strategy session next Tuesday.

And we’re also going to talk about a strategy we can use to get 40 years of Nvidia gains out of this stock in a matter of months.

This company is about to revolutionize a $13.1 trillion industry… with a potential to serve over 3.8 billion people.

Plus, I’m going to have a free pick for you during the event. It’s an AI stock that operates in this promising niche. I believe it could double your money in the coming months.

I’ll give you all the details during our strategy session, The Next $1 Trillion AI Stock. That’s next Tuesday, May 21, at 7 p.m. Eastern time.

This is going to be a very informative event. In addition to talking about the that next $1 trillion stock and next phase of the AI Revolution, I’ll share…

• My strategy to profit from this boom…
• How billionaires like Elon Musk, Bill Gates, and Jeff Bezos are all investing big in this new AI application…
• And (remember) one FREE stock recommendation.

Click here to sign up for this special event. I look forward to seeing you there.

Regards,

¶¶Òõ×îаæ

Senior Investment Analyst, InvestorPlace

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Buying growth stocks that have impressive profitability and have the cash to run the business until they hit profitability are some of the best bets you can make for the long run.

Let’s delve into seven growth stocks that are likely to perform well through 2025 and beyond.

Celestica (CLS)

Celestica (NYSE:CLS) is a supply chain electronics manufacturing company. CLS stock has been delivering stellar gains and is up 366% in just the past year. However, it could climb even higher.

The firm’s Q1 results far exceeded expectations, with revenue growing 20.2% year-over-year (YOY) to $2.2 billion. Diluted EPS of 85 cents overwhelmingly beat analysts’ estimates by 15.4%. This was fueled by enormous demand from high-volume cloud computing customers in their Communications and Corporate sectors. The net margin in Q1 was just 4.6%, indicating ample room for future growth.

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While their Aerospace and Defense unit also continues achieving double-digit increases, the Industrial side encountered some challenges. However, management sees improving conditions ahead as orders for capital equipment rise again.

Investors are paying less than 16x forward earnings for all this, so it is a buy despite all the gains recently.

SkyWest (SKYW)

SkyWest (NASDAQ:SKYW) is up 172% in the past year but for the right reasons.

Its impressive Q1 showed EPS of $1.45, which was much higher than expected, coming in 26 cents above estimates. Revenue grew 16% YOY to $803.6 million. A big reason for this was a 5% rise in flight time. This growth shows that SkyWest’s pilot staffing challenges are starting to improve. And strong demand continues from their partners like United (NASDAQ:UAL).

While the charter side of SkyWest’s business remains small for now relative to everything else they do, prospects could strengthen as they move forward. I am very bullish due to the growth, and you’re still paying just 11 times forward earnings for this execution.

Sterling Infrastructure (STRL)

Sterling Infrastructure (NASDAQ:STRL) has been delivering stellar returns. This stock is up 980% in the past five years and up over 202% in the past year. However, this is not a pure momentum play by any means, as the company has the fundamentals to back up this surge.

It had a great Q1, with earnings per share reaching $1. This significantly beat analysts’ expectations by 18 cents, fueled by 9.1% revenue growth and margin expansion across all business segments. Also, order backlogs swelled to $2.35 billion, up 45% YOY. The cash flow growth has been tremendous so far.

Click to Enlarge

Additionally, double-digit profit growth in the Energy and Facilities segment despite revenues dropping 10% looks bullish. Likewise, operating income in this division rose 12% as supply chain challenges eased and the business mix shifted toward more profitable projects. With a hefty $961 million order backlog, up 32%, this segment looks ready for a strong 2024.

Analysts expect 18.6% EPS growth and 12.3% revenue growth for all of 2024. Recently, management raised guidance. So, along with the backlog swelling, I wouldn’t be surprised if they beat these expectations by big margins.

Lasertec (LSRCY)

Lasertec Corporation’s (OTCMKTS:LSRCY) has seen positive momentum in the past year, but it has recently stalled. However, the company holds a big market share in semiconductor inspection and measurement.

Click to Enlarge

In Q1, the company reported a staggering 180% YOY increase in sales of products related to semiconductors, reaching nearly 35 billion Japanese Yen. This surge in revenue was complemented by a 53% increase in service sales.

Further, new orders totaled an impressive 76.3 billion Japanese Yen, with a record 14 billion Japanese Yen in service orders. Also, the stock comes with a small 0.47% dividend yield.

However, I am worried about currency devaluation eating into these metrics. Lasertec’s ADR has underperformed its regular stock on the Japanese stock exchange and could decline if the Yen tumbles more. But, if we see rate cuts soon, the Yen should bounce back. Japan’s ultra-low rates make the currency unattractive for now, but I don’t think the Yen will decline forever.

AeroVironment (AVAV)

AeroVironment (NASDAQ:AVAV) is a drone company and a major defense contractor. These drones are becoming more and more critical, and the market is obviously bullish as the U.S. seeks to mass-produce drones in the coming years.

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AVAV’s results for the most recent quarter were quite impressive, with revenue up 39% YOY, reaching almost $187 million. This beat sales estimates by a massive 8.4%. EPS also beat by 83.1%. The top performer was their Loitering Munition segment, more than doubling revenue YOY due to the order surge for Switchblade drones. Over 20 countries express interest, and a potentially huge new contract from the U.S. on the horizon.

However, investors will want to monitor AeroVironment’s ability to expand their production capacity for these increasingly large programs. One such program is the Marine Corps Organic Precision Fires initiative, which is being measured in the billions. If AVAV can scale up manufacturing capabilities while maintaining efficiency, their robust 12% YOY growth in pending orders could further accelerate. Management confidently projects double-digit revenue growth through fiscal year 2025. AVAV may still be undervalued despite its recent performance.

Aena SME (ANYYY)

Aena SME(OTCMKTS:ANYYY) operates two of the top 10 major airports in the European Union. This company is the world’s largest airport operator by passenger volume. Its Q1 passenger traffic soared 11.9% YOY, with traffic at the company’s airports recovering to 115.2% of 2019 levels. This substantial increase in demand resulted in a 20.1% jump in revenue to €1.2 billion YOY. But, it’s quite a bit lower converted to dollars due to the Euro’s devaluation.

Regardless, management reiterated their forecast for full-year traffic implying 7.1% growth. At the same time, ANYYY’s expansion into Brazil through acquisitions opens up another avenue for increasing business. The company has sturdy margins as well.

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The approved dividend of €7.66 per share also puts the forward dividend yield at a solid 4.23%. With travel demand still strong so far, Aena SME’s future looks promising.

GigaCloud (GCT)

GigaCloud Technology (NASDAQ:GCT) is not a cloud company by any means. However, I’m not complaining about the misleading name, considering this end-to-end B2B e-commerce company has delivered stellar gains of 177% since I first featured it in an article back in Dec. 2023. It specializes in big items like furniture. It has good upside potential still.

Click to Enlarge

Its revenue is up 96.5% YOY in Q1, and that beat estimates by 3.3%, along with EPS rising 69.2%, which also beat estimates by 64.7%. Their new “Branding-as-a-Service” approach seems promising. It allows sellers to benefit from well-known brand names and stand out amongst lots of competition in crowded markets. The acquisitions of Noble House and Wondersign appear to come at a good time, as GigaCloud diversifies what it offers customers while integrating these new businesses into its operations.

However, management’s rosy outlook seems overly optimistic compared to recent softening consumer spending trends. An 8% decrease in furniture sales across the U.S. is concerning for future demand. Yet, GigaCloud’s online presence should insulate them from headwinds.

Investors pay just 12 times forward earnings. And analysts expect EPS to rise from $3 to $4.5 in the next two years. They also anticipate revenue rising from $1.1 billion to $1.6 billion in the same timeframe. 

On the date of publication, Omor Ibne Ehsan did not hold (either directly or indirectly) any positions in the securities mentioned in this article. The opinions expressed in this article are those of the writer, subject to the InvestorPlace.com Publishing Guidelines.

Omor Ibne Ehsan is a writer at InvestorPlace. He is a self-taught investor with a focus on growth and cyclical stocks that have strong fundamentals, value, and long-term potential. He also has an interest in high-risk, high-reward investments such as cryptocurrencies and penny stocks. You can follow him on LinkedIn.

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The post 7 Great Growth Stocks You Need to Own Before 2025 appeared first on InvestorPlace.

When analysts raise their ratings, the move signals increased confidence in the company’s future prospects. This newfound optimism can attract more investors to the stock, driving up demand and potentially pushing the price higher. Therefore, we now delve into three such stocks with analyst upgrades, exploring the reasons behind the recent brokerage moves. Then, you can decide whether these companies deserve a place in your long-term portfolio.

Array Technologies (ARRY)

We start our discussion on stocks with analyst upgrades with Array Technologies (NASDAQ:ARRY), which provides utility-scale solar tracker systems. These single-axis tracker structures optimize solar energy capture by adjusting the angle of solar panels throughout the day to maximize sunlight exposure. Array Technologies is leveraging advanced technology to meet the growing demand for renewable energy solutions.

In late March, the solar tracker systems manufacturer reported mixed financial results for the first quarter of 2024. Revenue reached $153.4 million, slightly exceeding analyst expectations. However, adjusted net income declined 77% compared to the previous year to $9 million. Adjusted diluted earnings per share (EPS) came in at 6 cents, beating Street estimates. During the quarter, management secured $400 million in new business, achieving a book-to-bill ratio of over 2.5x, which potentially bodes well for its future revenue streams.

Meanwhile, Array Technologies announced the launch of its Hail Alert Response system in March. The proprietary software suite leverages advanced weather prediction algorithms to proactively safeguard solar assets from hail damage. The system for extreme weather is an example of strategic focus and innovation by the company. In other words, Array is focused on enhancing its product offerings and capitalizing on the growing demand for renewable energy solutions.

Yet, ARRY stock has plunged 31% year-to-date, making its valuation compelling at 10.3x forward earnings and 1.27x sales. Despite this decline, the company’s management remains optimistic about its strategic direction and ability to leverage industry growth. Similarly, analysts have a favorable 12-month price target of $18 for ARRY, suggesting a potential upside of almost 60% from current levels.

Valaris (VAL)

Another stock with a recent analyst upgrade is Valaris (NYSE:VAL), a notable player in the energy equipment and services industry. The company provides offshore contract drilling services with a diverse fleet of ultra-deepwater drillships, semisubmersibles and shallow-water jackups.

The energy equipment and services sector is highly competitive and cyclical, influenced by global oil prices, geopolitical factors and technological advancements. Valaris recently reported mixed financial results for the first quarter of 2024. Revenues jumped 22% to $525 million compared to the prior-year quarter. However, net income plunged 45% year-over-year (YOY) to $25.5 million due to a tax expense of $12.9 million. Meanwhile, diluted EPS dropped 42.6% YOY to 35 cents.

In late April, the offshore drilling contractor announced a significant expansion of its contract backlog through a series of new contract awards and extensions. These deals span across Angola, Brazil, the U.K. North Sea and the Gulf of Mexico. As a result of these strategic wins, Valaris’ contract backlog has climbed to a robust $4.0 billion, putting the company on analysts’ radars.

So far in 2024, VAL stock has advanced 10% and is currently trading at 16.8 times forward earnings and 3.04 times sales. And Wall Street remains optimistic about the prospects of VAL stock, with a 12-month median price forecast of $95.50. Such an upmove could mean a 25% upside, but interested investors could wait for a pullback toward $73 before initiating positions.

Lear (LEA)

Rounding out the stocks with analyst upgrades is Lear (NYSE:LEA), which manufactures automotive seating and electrical distribution systems. Its Seating segment contributes about three-quarters of sales. The rest of the revenue comes from the E-Systems segment, which offers electrical distribution and connection systems.

The automotive seating manufacturer announced positive financial results for the first quarter of 2024 in late April. Revenue reached a record $6.0 billion, an increase of 3% compared to the first quarter of 2023. Adjusted net income of $183 million and adjusted EPS of $3.18, surged 11% and 14%, respectively. Despite flat industry volumes, Lear’s management anticipates higher sales and operating earnings, with expected improvements in margins in the second half of 2024.

In a strategic move to bolster its operational efficiency and safety, Lear has announced the acquisition of WIP Industrial Automation. By acquiring Spain-based WIP, which specializes in advanced automation, Lear is increasing its capabilities in robotics and artificial intelligence (AI) based computer vision. Investors will be watching how the company may further its product offerings and global footprint in the quarters ahead.

So far in the year, LEA stock has lost 7% and is trading at 9.1 times forward earnings and 0.33 times sales. Shares also support an attractive 2.35% dividend yield. Finally, analysts have a 12-month price target of $164 for LEA, suggesting a potential upside of 25% from current levels.

On the date of publication, Tezcan Gecgil did not hold (either directly or indirectly) any positions in the securities mentioned in this article. The opinions expressed in this article are those of the writer, subject to the InvestorPlace.com Publishing Guidelines.

Tezcan Gecgil, PhD, began contributing to InvestorPlace in 2018. She brings over 20 years of experience in the U.S. and U.K. and has also completed all 3 levels of the Chartered Market Technician (CMT) examination. Publicly, she has contributed to investing.com and the U.K. website of The Motley Fool.

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Two of the three stocks discussed below legitimately are at risk of failure in the next few years. The other is facing its worst performance in decades. All three are worth selling at this point. 

Readers should note that the electric vehicle sector continues to be heavily represented here. Many firms in the sector are struggling. Overall EV sales continue to rise but at a lower pace. Slower growth is wreaking havoc on weaker EV firms. The other firm operates in the consumer discretionary sector and faces a multitude of issues social and otherwise.

Fisker (FSRN)

Fisker (OTCMKTS:FSRN) has to be one of the most disappointing EV stocks of the last few years. Investors are now aware that the company is at serious risk of complete failure. There are a handful of narratives that could be discussed in relation to its downfall. Let’s look at a few of them and why they suggest investors should leave Fisker alone completely.

Within the last few days it’s become apparent that Fisker may have stiffed engineering firms responsible for the development of two of its vehicles. Those claims have led to lawsuits against Fisker in addition to at least 30 lemon law lawsuits in connection to its Ocean SUV.

The lawsuits filed by Bertrandt AG allege that Fisker stopped paying its engineering bills in the weeks following the debut of two prototype vehicles last August. 

Those allegations add more trouble to the firm already facing serious claims regarding the safety of its debut Ocean SUV. The company’s Austria unit recently began insolvency proceedings, suggesting that the parent company may soon file for bankruptcy protection proceedings. 

Lucid (LCID)

Lucid (NASDAQ:LCID) looks like a strong EV stock when compared to Fisker. Don’t be fooled. The company continues to face substantial difficulties. Thus, investors shouldn’t realistically believe that its shares will rise in value throughout the remainder of 2024.

While lucid doesn’t appear at risk of immediately going broke it isn’t that much better than Fisker. Lucid’s first quarter earnings report shows that the company has more than $5 billion in liquidity. Unfortunately, Lucid also reported a net loss in excess of $680 million dollars during the first quarter. The company clearly has enough cash on hand to continue operations and to continue producing cars. However, a realistic investor has to ask themselves at what price?

Lucid will likely produce somewhere on the order of 9,000 vehicles this year. That represents a 50% increase over 2023 levels. As good as that may sound, consider this: Lucid incurred a net loss of $3.01 billion in delivering just over 6,000 vehicles in 2023. That equates to a net loss per vehicle in excess of $516,000. Investors have to legitimately ask themselves whether it makes any sense to direct their capital toward such a business endeavor.

Starbucks (SBUX)

Starbucks (NASDAQ:SBUX) stock continues to struggle. Realistically, it will take a long time before Starbucks fails, if ever. the chances of the company going broke anytime soon or effectively nil. However, investors really should consider getting rid of SBUX shares or avoiding them entirely.

The company just reported its worst performance in decades which will not help as the company struggles on the management front. Starbucks is currently run by its third CEO in the post Howard Schultz era. Laxman Narasimhan has inherited a company which is a shadow of its former glory in many respects.

Starbucks is no longer the leader in coffee. The company transitioned to a small shop, drive through format that faces many challengers. Meanwhile, the company has been slow to adapt to trends including recently popular drinks including boba.

Don’t be surprised if the current CEO finds himself on the outside soon. The company continues to struggle in finding a leader to replace Schultz. Failure isn’t a risk in the near term but the company’s continued troubles suggest it is not a good idea to invest.

On the date of publication, Alex Sirois did not have (either directly or indirectly) any positions in the securities mentioned in this article. The opinions expressed in this article are those of the writer, subject to the InvestorPlace.com Publishing Guidelines.

Alex Sirois is a freelance contributor to InvestorPlace whose personal stock investing style is focused on long-term, buy-and-hold, wealth-building stock picks. Having worked in several industries from e-commerce to translation to education and utilizing his MBA from George Washington University, he brings a diverse set of skills through which he filters his writing.

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To begin with, the first company is resilient against market challenges. This is reflected in its foreign market development and revenue diversification, especially through international digital commerce. Its smart investments and strong financial performance reflect its ability to prosper in a competitive environment.

Moreover, the second one has solid growth in its direct-to-consumer (D2C) sector. This marks a sharp rise in revenue and a steadily expanding subscriber base. This also indicates the company’s edge in shifting consumers’ preferences. The company may attain long-term growth and has established a solid lead in the streaming sector.

Lastly, the third one may have a major role in the tech sector’s future because of its technical innovations. This reflects the improvements in its semiconductor production processes. Significant alliances and recognition also support its legitimacy and long-term success potential.

Alibaba (BABA)

Alibaba’s (NYSE:BABA) International Digital Commerce (AIDC) reports solid top-line growth. Sales rose 45% year-over-year (YoY). Improvements in the customer experience and the rise of international retail operations are the main drivers of this boost. Indeed, investments in vital markets have accelerated growth and enhanced brand awareness, as shown in Trendyol’s spread throughout the Gulf region. 

Moreover, despite market competition, Alibaba had an 8% YoY growth in consolidated revenue in fiscal 2024. A double-digit growth in adjusted EBITDA and non-GAAP net income demonstrates solid operational profitability and efficiency. Through its share repurchase program, Alibaba has proved that it is focused on integrating value growth. In fiscal 2024, the number of outstanding shares reduced by 5.1% YoY. In addition, the business announced $4 billion in cash dividends for 2024. Hence, this illustrates its sharp cash flow creation and investor-friendly capital allocation moves.

Lastly, Alibaba Cloud’s revenue grew by 3% YoY in Q4 2024, mostly from adopting AI-related products and high-quality revenues from public cloud usage. The cloud segment’s adjusted EBITDA had a noteworthy 45% growth, primarily attributed to enhanced product mix and operational edge. 

Paramount (PARA)

In Q1 2024, Paramount’s (NASDAQ:PARA) D2C business had a solid 24% YoY top-line growth. Through a boost in subscribers and an uplift in Average Revenue Per User (ARPU), Paramount+’s top line surged by 51% YoY. Subscriptions to Paramount+ exceeded 71 million, with a rapid net increase of 3.7 million throughout the quarter. Similarly, the D2C division had a 31% increase in advertising income, mostly due to growth from Pluto TV and Paramount+ and advantages from Super Bowl LVIII. Moreover, new subscriber additions and increases in the price of Paramount+ memberships drove a notable 22% increase in subscription income.

Additionally, the D2C segment’s robust revenue growth and growing subscriber base highlight Paramount’s progressive content distribution tactics and the rising demand for its streaming platforms. The company’s digital advertising environment is attractive, and its monetization initiatives have been successful, as seen by the significant growth in advertising income. Thus, these patterns indicate a positive future for Paramount’s D2C business, with room to grow and diversify income streams. 

Overall, the considerable increase in advertising revenue from high-profile events like the Super Bowl reflects the segment’s tremendous commercial attractiveness.

Intel (INTC)

With the announcement of Intel (NASDAQ:INTC) 14A, which uses High NA EUV technology, Intel has made a significant scientific development in the structural evolution of semiconductors. Similarly, H2 2024 is anticipated to see the start of the Intel 20A production ramp, illustrating a steady advancement towards sophisticated semiconductor manufacturing techniques. Moreover, the Intel 18A manufacturing ramp is scheduled to begin in early 2025, with Clearwater Forest and Panther Lake already under fabrication. 

Further, Intel was given the largest award under the CHIPS and Science Act, with projected grants, tax breaks, and loans totaling more than $45 billion. Intel Vision 2024 was experienced by over 1K esteemed clients and associates. These include Microsoft (NASDAQ:MSFT), Dell (NYSE:DELL), Bosch, Supermicro (NASDAQ:SMCI), and Roche (OTCQX:RHHBY). No doubt, Intel has a lead in the semiconductor industry. Its potential for further expansion is highlighted by its recognition by the US government as the national semiconductor champion. 

In summary, the partnerships open doors for reaching an expanded target market and boosting sales. Therefore, Intel’s clear strategy for leading the technological space and growing its market share positions it to take a major market share in the AI-driven economy.

As of this writing, Yiannis Zourmpanos held long positions in BABA, PARA and INTC. The opinions expressed in this article are those of the writer, subject to the InvestorPlace.com Publishing Guidelines.

Yiannis Zourmpanos is the founder of Yiazou Capital Research, a stock-market research platform designed to elevate the due diligence process through in-depth business analysis.

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One common problem with growth investments is that they attract many investors and end up with high valuations. High P/E ratios and PEG ratios don’t leave much room for error. Some stocks continue to soar despite high valuations thanks to strong financial growth. However, combining financial growth with reasonable valuations is possible if you know where to look. These are three cheap growth stocks to consider.

Meta Platforms (META)

Meta Platforms (NASDAQ:META) trades at a 27 P/E ratio and offers impressive financial growth. The social media firm reported 27% year-over-year revenue growth and 117% year-over-year net income growth in the first quarter of 2024.

The company has continued growing its advertising revenue and social networks while trimming its costs. Meta Platforms decreased its headcount by 10% year-over-year, which meant costs and expenses only increased by 6% year-over-year. This slight increase and high revenue growth resulted in sizable profit margins.

Investors have noticed these developments. The stock is up by 37% year-to-date and has soared by 157% over the past five years. Investors also enjoy quarterly dividend payments since Meta Platforms started to issue them in Q4 2023. The stock’s 0.42% yield is low, but Meta Platforms is poised to raise its dividend in the years ahead meaningfully. The firm is a leading online advertising giant that will continue to attract ad dollars and users’ attention.

Texas Roadhouse (TXRH)

Many restaurant stocks have been soaring on the prospects of becoming the new giants in the industry. Texas Roadhouse (NASDAQ:TXRH) is no exception to the rule. Shares are up by 42% year-to-date and have gained 210% over the past five years. However, the steakhouse chain only trades at a 34 P/E ratio while offering a 1.44% yield.

It’s a solid dividend growth stock that can attract value and growth investors. The firm has maintained an annualized dividend growth rate of 16.05% over the past decade. The company also recently hiked its quarterly dividend from $0.55 to $0.61 per share. That’s a 10.9% year-over-year increase.

Financial growth supports the dividend hikes. Total revenue increased by 12,5% year-over-year in Q1 2024. Meanwhile, net income jumped by 31.0% year-over-year. Texas Roadhouse has 753 restaurants and is expanding its international footprint through franchises. Expansion into multiple markets can fuel revenue and earnings growth for several years. 

Deckers Outdoor (DECK)

Deckers Outdoor (NYSE:DECK) is an athletic apparel company with iconic brands like HOKA and UGG under its corporate umbrella. The stock trades at a 32 P/E ratio and is gobbling its rivals’ market share. 

The athletic apparel firm reported 16% year-over-year revenue growth to reach a record $1.56 billion in Q3 FY24. This development prompted Deckers Outdoor to raise its fiscal 2024 revenue guidance to approximately $4.15 billion. Revenue wasn’t the only thing that went up. Net income increased by 40% year-over-year in the quarter.

Since its recent inclusion into the S&P 500, more investors have noticed the stock. Shares are up by 33% year-to-date and have rallied by 529% over the past five years. The firm’s high 25.0% net profit margin indicates sustainable growth. The company is also growing in multiple markets. Domestic and international sales were both up by more than 15% year-over-year.

On this date of publication, Marc Guberti held a long position in DECK. The opinions expressed in this article are those of the writer, subject to the InvestorPlace.com Publishing Guidelines.

Marc Guberti is a finance freelance writer at InvestorPlace.com who hosts the Breakthrough Success Podcast. He has contributed to several publications, including the U.S. News & World Report, Benzinga, and Joy Wallet.

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The post 3 Cheap Growth Stocks to Buy Now: May 2024 appeared first on InvestorPlace.

On the other hand, the electric vehicle (EV) leader has made significant strides in the advanced driver assistance systems/self-driving area. Also, the hostility of Washington and the media towards Tesla and CEO Elon Musk could ease after the U.S. elections. The company’s new, low-cost EV could easily become a big hit, while its energy storage business may also take off.

Given these points, along with the automaker’s very high valuation, I recommend that investors sell Tesla stock. Still, because the EV maker has numerous positive catalysts, keep an eye on TSLA stock going forward.

Market Share Losses And Media Hostility

Tesla’s share of the U.S. EV market sank to 51.3% last quarter from 61.7% in Q1 of 2023. The automaker lost share to multiple, veteran automakers, including General Motors‘ (NASDAQ:GM) Cadillac, Hyundai (OTC:HYMTF), BMW (OTC:BMWYY) and Ford (NYSE:F). Moreover, the number of EVs that Tesla actually sold in the U.S fell about 13% in Q1 compared with the same period a year earlier,

Also noteworthy is that two newer EVs the automaker launched in the U.S. — the Cybertruck and the Tesla Semi — have not generated significant demand yet in America.

Hostility towards the automaker by media outlets, in my view, contributed tremendously towards its weak performance in America. Likely angered by Musk’s free-speech policies on X and his harsh, frequent criticism of the Biden administration, the media frequently highlights Tesla’s technical issues and layoffs. Meanwhile, former President Donald Trump remains hostile toward EVs. That has spurred some supportive outlets to also be critical of EVs in general and Tesla’s automobiles in particular.

And in China, Bloomberg estimated last month the automaker’s market share had dropped to 6.7% in Q4 of 2023 from 10.5% in Q1 of last year. According to the news service, Tesla is having trouble because it only sells two types of EVs. Its rivals offer Chinese consumers a large number of choices.

Troublesome Investigations and an Elevated Valuation

The Biden administration is investigating the EV maker for a myriad of issues. They range from the recall of its EVs over a defect in its autopilot system to “personal benefits, related parties, vehicle range and personnel decisions.” The administration is also considering leveling securities and wire fraud charges against the automaker for its comments about its self-driving capabilities.

It is worth remembering that former Nikola (NASDAQ:NKLA) CEO Trevor Milton was sentenced to four years in prison over securities and wire fraud. So Musk himself could be in very hot water if similar charges are leveled against him by the Justice Dept. And of course, Tesla could very well be a different company without Musk at the helm.

Meanwhile, on the valuation front, Tesla stock is changing hands at a price-earnings ratio of 69. That’s very rich for an automaker.

Tesla Could Make a Huge Comeback

The newest version of Tesla’s full-self-driving (FSD) offering appears to be dramatically improved over previous iterations. For example, the amount of “unnecessary braking” is “significantly reduced.” The system’s control over speed is also “dramatically improved,” InsideEVs reported. Moreover, Musk has reportedly ordered the firm to concentrate on improving its advanced driver assistance systems/self-driving capabilities. Over the longer term, Tesla could become the recognized, worldwide leader in this area. It could boost its market share and enable it to charge high subscription fees for FSD.

As I pointed out in the introduction, Tesla’s low-cost EV, which could be out as soon as 2025, could be a positive game-changer for the automaker. Indeed, given the relatively small number of affordable EVs available to American consumers, such an automobile could tremendously boost the firm’s top and bottom lines.

Further, Trump could retake the White House, likely easing the automaker’s regulatory headaches. And the media is likely to become less hostile to Tesla as the country’s focus on politics eases following the election. Finally the company’s energy-storage products may generate much more revenue as the demand for electricity surges.

Still, given the company’s many negative catalysts, Tesla stock is the quintessential “show-me story” at this point.

On the date of publication, Larry Ramer did not hold (either directly or indirectly) any positions in the securities mentioned in this article. The opinions expressed in this article are those of the writer, subject to the InvestorPlace.com Publishing Guidelines

Larry Ramer has conducted research and written articles on U.S. stocks for 15 years. He has been employed by The Fly and Israel’s largest business newspaper, Globes. Larry began writing columns for InvestorPlace in 2015. Among his highly successful, contrarian picks have been SMCI, INTC, and MGM. You can reach him on Stocktwits at @larryramer.

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Perhaps in-device semiconductors may be worth more love for investors, even as the mega-cap tech titan continues investing heavily in their AI-powered cloud capabilities. As the semiconductor landscape evolves, there is sure to be a new class of winners (and laggards).

In any case, don’t feel the need to pay a price you’re uncomfortable with if you can’t stomach the thought of losing money in the face of a potential near-term pullback. Indeed, some of the hottest semi stocks could face the most severe downside. In this piece, we’ll put our value caps on as we hunt for undervaluation in an otherwise overheated corner of the tech sector.

Qualcomm (QCOM)

Qualcomm (NASDAQ:QCOM) stock has been going parabolic lately, up more than 84% in the past year. Undoubtedly, many analysts and investors are realizing the full extent of semiconductor firms’ capabilities as we move deeper into the age of generative AI.

Even after a hot melt-up, shares go for a very modest 25.8 times trailing price-to-earnings (P/E), making it a value play compared to the GPU makers bid up furiously amid the AI boom. Though the GPU heavyweights could prove their worth, I can’t say I’m in a hurry to pay a multiple north of 70 times P/E for NVDA stock, at least not ahead of its quarterly results, which are right around the corner.

With a slate of impressive new chips coming and a recent partnership with Ampere Computing for an AI server push effort, I believe QCOM stock is the perfect mix of value, growth and momentum at this market crossroads.

Applied Materials (AMAT)

Applied Materials (NASDAQ:AMAT) is another way to play the cheaper side of the semiconductor waters. Though shares of the semiconductor manufacturing equipment maker are going for an incredibly fair 25.18 times trailing P/E, AMAT stock is also finding itself hovering close to all-time highs, even after slipping more than 1% in the after-hours session on the back of a good second-quarter result that also saw upbeat guidance.

As one of the standout AI enablers incorporating AI (think it’s data-driven AI inspection machines) into its products, investors seem to be getting a double shot of AI with the name. As AMAT stock retreats following a respectable Q2 beat and raise, perhaps value-conscious AI investors will have their shot to punch their ticket into the name.

It will be interesting to see how the stock settles in the following sessions. If investors are inclined to take profits after having a chance to understand the earnings better, perhaps an opportunity to buy at under $210 per share will open up.

Taiwan Semiconductor (TSM)

Taiwan Semiconductor (NYSE:TSM) is another semiconductor value stock that I think many are still sleeping on. The nearly $ 800 billion foundry giant, which makes chips for some tech heavyweights, most notably Apple (NASDAQ:AAPL), has surged over 67% in the past year. Despite the momentum and new highs, the stock looks discounted 29.39 times, trailing P/E.

Taiwan Semiconductor is firing on all cylinders, with “strong demand for our 3nm and 5nm technologies” expected to support growth in the second quarter, according to CFO Wendell Huang.

With the potential for AI phones (think iPhone 16, which is expected to have its most AI-capable Neural Engine yet) to start a sales boom, I think it’s a mistake to count TSM out of the game. Indeed, the company’s latest sales boom may not be the peak yet, especially now that AI will be on everyone’s mind when they upgrade their devices over the next 18 months.

On the date of publication, Joey Frenette held shares of Apple. The opinions expressed in this article are those of the writer, subject to the InvestorPlace.com .

Joey Frenette is a seasoned investment writer specializing in technology and consumer stocks. Contributing to the Motley Fool Canada, TipRanks, and Barchart, Joey excels in spotting mispriced stocks with long-term growth potential in a fast-paced market.

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So where should investors start with AI and robotics stocks? Usually, the established industry leaders are the best targets. In this case, big tech stocks with plenty of cash flow and a well-developed base of existing users. If you have been wondering about which robotics stocks to research, start with these three foundational AI companies that every investor should own. 

Intuitive Surgical (ISRG)

Intuitive Surgical (NASDAQ:ISRG) is the global leader in robotic surgery equipment with more than 8,800 of its da Vinci Surgical Systems in use worldwide. The current price of ISRG sits near the bottom of its one-year analyst price target range. If we take the average analyst price target, ISRG has about a 10% implied upside from today’s price of $386.70.

The da Vinci Surgical System is nothing short of a medical marvel. The units have already performed over 14 million procedures and have been peer-reviewed in more than 38,000 articles. Today, there are four different generations of da Vinci models, each with its unique use cases and specializations. Not only are these units precise and easy to use, they can be used remotely by the best surgeons from anywhere in the world. 

Intuitive Surgical is a profitable company, which isn’t always something you can say about medical technology companies. It trades at a fairly expensive valuation at 18.9x sales and 61.7x forward earnings but you are getting a 14% compound annual growth rate (CAGR) for net income over the past decade. It’s pricey, but ISRG is the proven industry leader in surgical robotics and is in a position to continue compounding over the next years. 

Amazon (AMZN)

Amazon (NASDAQ:AMZN) is a company that needs no introduction. It is the world’s largest e-commerce and cloud computing company and is used by millions of Americans daily. Amazon has the potential to be the world’s most valuable company one day and analysts agree. The average analyst price target is $226.66, which represents about a 20% upside while the street-high target of $500 is nearly 200% more. 

When it comes to robotics and AI, Amazon is a great place to invest your money. The company already has over 750,000 robots helping humans in Amazon’s massive distribution centers. The complexity and efficiency of Amazon’s robotic systems are also a testament to the power of the AWS cloud infrastructure which will also help shape the AI industry as well. Generative AI and large language models are just some of the technologies already being built using Amazon’s AWS platform. 

Despite having the second-largest annual revenue in the world, Amazon is trading at just 3.36x sales. This is even more impressive considering that Amazon is trading at all-time high prices. It becomes more attractive when you realize that it’s also grown its revenue at a CAGR of 22% over the past ten years. Whether it is AI or robotics, Amazon is positioned to be the global leader in both. 

Microsoft (MSFT)

Microsoft (NASDAQ:MSFT) is the world’s largest company by market cap and the leader in enterprise software. Analysts are bullish on Microsoft even as a $3 trillion company with 53 of 54 recommendations in April rated as Buy or Strong Buy. The average price target of $472.39 represents nearly 15% upside, while the highest price target on Wall Street of $550 is nearly 40% higher than today’s price. 

Why is Microsoft a play on AI and robotics? The company proactively formed a partnership with ChatGPT’s creator OpenAI. The two companies have worked fast to integrate GPT into Microsoft’s suite of applications. 

How cheap is the largest company in the world? Fairly reasonable! Shares of MSFT trade at about 13x sales and only 31x forward earnings. Microsoft has seen a 14% revenue CAGR over the past five years. It expects to see sales increase even further thanks to its work with OpenAI. This valuation and growth should put this stock on any investor’s buy list. 

On the date of publication, Ian Hartana and Vayun Chugh did not hold (either directly or indirectly) any positions in the securities mentioned in this article. The opinions expressed in this article are those of the writer, subject to the InvestorPlace.com Publishing Guidelines.

Chandler Capital is the work of Ian Hartana and Vayun Chugh. Ian Hartana and Vayun Chugh are both self-taught investors whose work has been featured in Seeking Alpha. Their research primarily revolves around GARP stocks with a long-term investment perspective encompassing diverse sectors such as technology, energy, and healthcare.

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These undervalued stocks don’t necessarily have to be unknown by investors on Wall Street. However, they can often be underestimated by the broader market and possess intrinsic value that has yet to be fully recognized. They may belong to sectors poised for resurgence, possess innovative technologies, or demonstrate resilience in the face of market volatility. Through careful analysis, these undervalued stocks to buy could offer the possibility of handsome returns over the long term.  

Now, let’s discover the top undervalued stocks to buy in May 2024.

Taiwan Semiconductor (TSM)

Taiwan Semiconductor (NYSE:TSM) is gearing up for a record year in FY24. They are a crucial player in the AI revolution, which advanced semiconductor chips made by TSMC will largely fuel.

Taiwan Semiconductor is up more than 50% YTD, as Wall Street is starting to notice its role in artificial intelligence. It is no secret that TSMC will significantly benefit from AI tailwinds in 2024. This is largely due to the unprecedented demand for AI GPUs as companies rush to capitalize on generative AI services.

However, TSMC’s recent news is the ultimate game changer for 2024. The company no longer needs ASML’s proprietary EUV machines to create next-generation semiconductor chips. This could save the company billions as it continues ramping up its production capacity in the United States, Europe and Asia. With strategic investments in infrastructure and strong demand for AI GPUs, TSM stock is well on its way to the $1 trillion market cap status.

Meta Platforms (META)

Meta Platforms (NASDAQ:META) continues demonstrating its value as one of the leading social media giants. Their family of Apps (Facebook, Instagram, WhatsApp and Messenger), make them a formidable player in the digital advertising market. Additionally, their key investments in AI infrastructure are only just beginning. 

Meta Platforms have been at the forefront of the social media revolution over the last two decades. Facebook and its family of apps have grown larger and larger, bolstering its advertising growth prospects. However, the company’s key investments in AI and the metaverse will be their primary growth drivers.

The company is coming off a record 2023 fiscal year, which led it to issue its first-ever dividend. Moreover, their CFO, Susan Li, has reiterated that they will ramp up their infrastructure investments in FY24. These two positive developments signal their confidence in the business moving forward. As the advertising market returns to pre-pandemic levels, Meta’s forward P/E of 24.39 makes the stock a bargain at current levels.

Oracle (ORCL)

Oracle (NYSE:ORCL) is a multinational software company set to benefit from the increased demand for AI applications. Their robust data center infrastructure is the backbone of AI, and their Gen2 cloud infrastructure will be the foundation for processing the most demanding AI workloads. 

Oracle has not gotten much love compared to many other pure play AI companies. However, that will soon change as Wall Street digests the scale and impact of its Gen2 cloud infrastructure. Their technology is specifically designed for enterprise workloads and is widely adopted by AI hyperscalers like Microsoft and Amazon.

This infrastructure is crucial for running complex AI models and workloads. However, even more important is the role data centers will play in the new world of AI. Oracle is embracing this reality with a plan to build 100 new data centers to satisfy demand. With its cloud business at a $20 billion annual run rate in 2024, Oracle is just scratching the surface of its AI-driven potential.

On the date of publication, Terel Miles did not have (either directly or indirectly) any positions in the securities mentioned in this article. The opinions expressed in this article are those of the writer, subject to the InvestorPlace.com Publishing Guidelines.

Terel Miles is a contributing writer at InvestorPlace.com, with more than seven years of experience investing in the financial markets.

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These companies, typically valued between $2 billion and $10 billion, offer a unique blend of growth potential and affordability. This makes them ideal for investors seeking to build long-term wealth in the stock market. Mid-cap stocks often have more room to expand and innovate than their larger counterparts. For those willing to do the research and embrace a bit of risk, investing in undervalued mid-cap companies can lead to exceptional returns over time.  

Now, here are the top cheap mid-cap stocks to buy to put you on the path to riches!

Sterling Infrastructure (STRL)

Sterling Infrastructure (NASDAQ:STRL) is a leading infrastructure provider in the United States specializing in transportation, civil construction and e-infrastructure solutions. The company’s robust backlog and diversified project portfolio make it well-positioned for continued growth in 2024.

Sterling Infrastructure is not a well known company on the stock market yet, but that will slowly be changing. They have been around for decades now but have largely remained unprofitable. After delivering record earnings results in the 2023 fiscal year, management has reiterated strong guidance for 2024. Their backlog is growing exponentially, as demand for infrastructure solutions remains robust.

In Sterling’s recent Q1 FY24 results, revenue increased 9% year-over-year (YOY) to $440 million. Earnings per share (EPS) rose by 56% to $1.00 per share, while generating $50 million in cash flow from operations. Moreover, their backlog hit a record $2.35 billion on strong demand in the data center and aviation markets. With strong revenue and adjusted EBITDA guidance for 2024, STRL stock remains one of the top cheap mid-cap stocks to buy now.

Science Applications International (SAIC)

Science Applications International (NASDAQ:SAIC) is undoubtedly one of the best cheap mid-cap stocks to buy in 2024. After delivering strong FY24 financial results in March, management’s updated FY25 guidance reflects higher revenue and free cash flow (FCF) generation.

Science Applications International is not a company that you typically hear about on Wall Street. However, SAIC has seen considerable growth in revenue and EPS growth with the stock far outpacing the S&P 500. Over the last decade, SAIC stock returned 334% to shareholders compared to the benchmark index’s 238%. The company specializes in a diverse range of software solutions for the intelligence community, from mission support analytics to cybersecurity solutions. In FY24, revenue decreased 3% YOY to $7.4 billion. However, EPS increased by 65% YOY to $8.88 per share. Their backlog at the end of fiscal 2024 was $22.8 billion, of which $3.5 billion was funded. This positions them for continued growth through the 2025 fiscal year.

ACM Research (ACMR)

ACM Research (NASDAQ:ACMR), a leading provider of semiconductor cleaning equipment is essential for the manufacturing of advanced semiconductor chips. With the global semiconductor industry experiencing rapid growth due to increasing demand for electronic devices and AI, ACM Research is poised to benefit significantly. 

There are many positive tailwinds to suggest rapid growth will continue in the 2024 fiscal year. Mainly the rebound in the semiconductor equipment market, but also due to increased demand for AI applications.

ACM Research has barely hit its stride and its advanced technology for the efficient cleaning of semiconductor wafers remains robust. After reporting record earnings results in FY23, things are already looking rosy in 2024. In their latest Q1 FY24 results, revenue more than doubled YOY to $152 million. EPS also skyrocketed 136% YOY to 26 cents per share. Total shipments in the first quarter were up 175%, driven by an expansion in their product offerings. With a strong outlook for the 2024 fiscal year, ACMR stock is set to continue benefiting from the positive growth tailwinds of the semiconductor industry.

On the date of publication, Terel Miles did not have (either directly or indirectly) any positions in the securities mentioned in this article. The opinions expressed in this article are those of the writer, subject to the InvestorPlace.com Publishing Guidelines.

Terel Miles is a contributing writer at InvestorPlace.com, with more than seven years of experience investing in the financial markets.

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Although sports betting is nothing new, the sector has definitely grown since its ban was lifted in 2018. Last year, the U.S. sports betting market reached $121 billion, 30% up from 2022’s numbers. Most states have legalized sports betting, and it shows a potential growth area for investors in the coming years.

With the market expanding rapidly, betting is gaining popularity in already-legal states. Here are three top investment options to consider in this burgeoning industry.

DraftKings (DKNG)

DraftKings (NASDAQ:DKNG) recently announced its excellent Q1 2024 earnings report, Making it one of our top sports betting stocks to buy. With an unexpected EPS of $0.03, the company was also proud of its revenue, which hit $1.1 billion and exceeded estimates of $60 million.

DraftKings, a digital sports and gaming powerhouse, excelled in Q1 2024, focusing on user engagement and cost efficiency. Expanding into Vermont and North Carolina responds to growing online betting trends. DraftKings’ innovation led to a 23% increase in Monthly Unique Payers and a 25% rise in Average Revenue per MUP, ensuring sustainable growth.

In Q1 2024, DraftKings expanded into two states, with a notable 53% revenue increase, attracting 3.4 million users. DraftKings demonstrated operational efficiency by surpassing EPS estimates and boosted ARPMUP to $114, enhancing customer value. These show how DraftKings is excellent in thriving in a competitive market.

Caesar’s Entertainment (CZR)

Caesars Entertainment (NASDAQ:CZR) is probably one of the biggest names in sports betting and casinos. The company operates in 18 states and offers sports betting in 31 jurisdictions. While CZR faces risks, it’s potentially attractive to speculators. Despite the post-quarantine era, consumers still prioritize experiences, potentially boosting CZR stock. 

Analysts forecast a challenging EPS of 37 cents this year but with a high-side estimate of $3.10. Last year’s revenue was $11.53 billion, with 2025 estimates ranging from $12.09 to $12.59 billion. CZR could be a buy for those banking on a post-pandemic travel surge. Currently undervalued, CZR’s future targets show promise.

In other news, the company partnered with the Fiesta Bowl Organization for the first-ever sports betting collaboration in college football bowl games. CZR will set up new fan lounges, sponsor pregame parties and support responsible gaming. The partnership is set to enhance the fan experience and promote responsible gambling.

MGM Resorts International (MGM)

Although there has been a strong stigma in gambling, it is evident that the popularity of it in the U.S. is strong. This is also due to disposable income and legalization. Well-positioned to the benefit, MGM Resorts (NYSE:MGM) has a strong buy rating and significant undervaluation from analysts.

In March, the MGM Collection with Marriott Bonvoy, a collaboration between MGM Resorts International and Marriott International, offers unique experiences. Now bookable on Marriott.com and the Marriott Bonvoy app, it provides access to 16 iconic destinations — Marriott Bonvoy Moments® feature exclusive experiences like Bellagio fountain shows and Cirque du Soleil performances. 

Peggy Roe, Marriott’s Executive Vice President, emphasizes creating unforgettable experiences. This collaboration promises epic moments and impeccable service at renowned Las Vegas and U.S. resorts.

On the date of publication, Chris MacDonald did not have (either directly or indirectly) any positions in the securities mentioned in this article. The opinions expressed in this article are those of the writer, subject to the InvestorPlace.com Publishing Guidelines.

Chris MacDonald’s love for investing led him to pursue an MBA in Finance and take on a number of management roles in corporate finance and venture capital over the past 15 years. His experience as a financial analyst in the past, coupled with his fervor for finding undervalued growth opportunities, contribute to his conservative, long-term investing perspective.

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According to the IEA, investments in clean energy have increased by 40% since 2020. Furthermore, this growth could still increase as government bodies push legislation that will help meet these climate goals and super this capital-intensive industry. That opens up opportunities for investors to ride the growth in this sector.

To come up with the list of renewable energy stocks to buy, I screened for the criteria:

• Companies operating in the renewable energy space
• Low annual debt-to-EBITDA ratio
• Revenue growth of at least 10%

I looked for low debt-to-EBITDA companies to focus only on those with a good chance to thrive in this capital-intensive industry. Debt-to-EBITDA measures a company’s ability to pay off its incurred debt before taxes and other expenses are accounted for. 

So, here are three top renewable energy companies to buy based on the above screen. 

Nextracker (NXT)

Nextracker (NASDAQ:NXT) creates solar trackers and software solutions, famous for being the best in the industry. The solar tracker’s ability to follow the sun’s movements allows the full optimization of solar energy generation. 

The company recently announced its new flagship solution, NX Horizon. The low-carbon tracker solution offers a 35% lower carbon footprint, marking a significant milestone for solar energy.

The company’s Q3’24 ended with $710.4 million in revenue, up 38% year-over-year (YOY), and adjusted EBITDA soared 168% over the same period. In addition, gross profits hit $209.7 million, highlighting its continued strength. 

Nextracker expects GAAP net income to reach between $374 million and $429 million and revenue to be between $2.425 billion and $2.475 billion. The debt-to-EBITDA ratio stands at 0.41, emphasizing its strong capability to pay off its incurred debt even with a slowdown in the market. 

First Solar (FSLR)

Solar energy is one of the top choices for alternative energy sources to date, and First Solar (NASDAQ:FSLR) has been reaping the benefits of its growth. The company is one of the top photovoltaic cell (PV) producers, which allows solar companies to transform sunlight into electricity, making IT an integral part of transforming the green economy. 

The growing demand for solar has led to the acquisition of the Ohio facility and the conversion of the distribution center into a key addition to increase its manufacturing capability.

First Solar’s Q1’24 saw an excellent 45% YOY improvement in net sales. Meanwhile, EPS ended at $2.21, improving from 40 cents in the same period last year and recording a 452% growth. 

The debt-to-EBITDA ratio stands at 0.42, highlighting its strong financial position. So, if you want to take a pick from renewable energy stocks, FSLR might be one of your best bets to buy.

Broadwind (BWEN)

The ongoing transition to clean energy has boosted the solar power industry, wind power and renewable energy companies like Broadwind (NASDAQ:BWEN). Broadwind produces and sells clean tech, infrastructure and wind energy equipment components. 

According to its latest financials, the company’s proprietary Pressure Reducing System technology is seeing growing market demand, highlighting its products’ growing impact in the clean energy industry.

The increased demand is evident in its FY’23 numbers, with revenue growing 15.1% YOY. Earnings also made a turnaround, a profit of 36 cents, a 175% improvement from last year’s 48 cents in the previous year. ’23 numbers, as revenue grew 15.1% YOY, reaching $203.5 million compared to last year’s revenue of $176.7 million. Earnings made a turnaround profit of 36 cents, a 175% improvement from last year’s 48-cent loss.

Broadwind’s debt-to-EBITDA currently stands at 2. Though it’s higher than the other renewable energy stocks on the list, Broadwind is still in its growing phase. Plus, it is still below the relative accepted debt-to-EBITDA ratio of 3.

Furthermore, its impressive and consistent growth suggests that good things are yet to come for the company. So, those who want to get on the ground floor of renewable energy stocks might want to consider Broadwind for their portfolio. 

On the date of publication, Rick Orford did not hold (either directly or indirectly) any positions in the securities mentioned in this article. The opinions expressed in this article are those of the writer, subject to the InvestorPlace.com Publishing Guidelines.

Rick Orford is a Wall Street Journal best-selling author, investor, influencer, and mentor. His work has appeared in the most authoritative publications, including Good Morning America, Washington Post, Yahoo Finance, MSN, Business Insider, NBC, FOX, CBS, and ABC News.

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I always prefer to keep expectations on a base-case scenario. Therefore, I expect a 50% rally in the short-squeeze stocks discussed. However, a 2x or 3x rally in a few months is likely if the meme stock euphoria gathers steam.

Also, the ideas discussed in the column are purely speculative. As of today, I would refrain from taking investment positions in any of these stores. The stocks discussed are purely trading bets with average to weak fundamentals.

Let’s talk about the reasons that can serve as a possible catalyst that triggers the big short-squeeze rally.

Lucid Group (LCID)

Lucid Stock (NASDAQ:LCID) is among the hot favorites for a big short-squeeze rally. LCID stock has been on a downturn with a correction of almost 60% in the last 12 months. While bullish on a short-squeeze rally, I would avoid the stock as a long-term investment idea.

Recently, Biden announced a 100% tariff on Chinese-made electric vehicles. This is a potential catalyst for a meaningful rally from deeply oversold levels. Intense competition has impacted Lucid, and the announcement will likely translate into some optimism for the stock.

Specific to Lucid, a liquidity buffer of $5 billion is a positive even as cash burn sustains. Further, the management is optimistic about the impending launch of Lucid Gravity. These positives are not big enough to believe Lucid will create value in the coming years. However, it provides a good reason for speculators to build long positions for a big rally in quick time.

Aurora Cannabis (ACB)

Aurora Cannabis (NASDAQ:ACB) stock is another name with high short interest and looks poised for a big rally. An important point is that one trigger for a short-squeeze or meme stock rally is impending news that can be a game-changer.

When Biden was elected President in 2021, cannabis stocks delivered 10x to 20x returns in a few months. This was in anticipation of the federal-level legalization of cannabis. With Presidential elections due later this year, the legalization of cannabis will be a hot topic for discussion. This will translate into some excitement and a potential rally for cannabis stocks.

It’s worth noting that Aurora Cannabis is well diversified geographically, with a presence in 15 countries. For Q3 2024, the company’s international medicinal cannabis revenue increased by 41% yearly. If healthy revenue growth is sustained, it’s likely to translate into EBITDA margin expansion. With improving fundamentals and the likelihood of regulatory tailwinds, ACB stock is positioned for a big short-squeeze rally.

Beyond Meat (BYND)

Beyond Meat (NASDAQ:BYND) stock was among the market’s darlings. Towards the end of 2022, BYND stock was trading near $200. The meltdown has, therefore, been significant, with the stock trading in single digits. Even after the big crash, the short interest in the stock remains above 40%. I believe the stock is oversold and poised for a massive short-squeeze rally.

Recently, Beyond Meat reported Q1 2024 numbers. Revenue declined 18% on a year-on-year basis to $75.6 million. The company also reported an adjusted EBITDA loss of $32.9 million. Beyond Meat is struggling.

However, it’s too early to believe that the story is over. In April, the company launched the fourth generation of Beyond Burger and Beyond Beef. According to the company, the “products’ meatier flavor and taste were preferred over the previous version in consumer testing.” The coming quarters will tell if there is a positive impact on financials.

For now, oversold levels coupled with the new launch will likely trigger a short-squeeze rally. This is particularly true at a time when meme stocks are back in action.

On the date of publication, Faisal Humayun did not hold (either directly or indirectly) any positions in the securities mentioned in this article. The opinions expressed in this article are those of the writer, subject to the InvestorPlace.com Publishing Guidelines.

Faisal Humayun is a senior research analyst with 12 years of industry experience in the field of credit research, equity research and financial modeling. Faisal has authored over 1,500 stock specific articles with focus on the technology, energy and commodities sector.

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• PrimeEnergy Resources reported earnings per share of $4.41.
• The company reported revenue of $42.42 million.

InvestorPlace Earnings is a project that leverages data from TradeSmith to automate coverage of quarterly earnings reports. InvestorPlace Earnings distills key takeaways including earnings per share and revenue, as well as how a company stacks up to analyst estimates. These articles are published without human intervention, allowing us to inform our readers of the latest figures as quickly as possible. To report any concerns or inaccuracies, please contact us at editor@investorplace.com.

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• ABVC BioPharma reported earnings per share of -40 cents.
• The company reported revenue of $1,205.

InvestorPlace Earnings is a project that leverages data from TradeSmith to automate coverage of quarterly earnings reports. InvestorPlace Earnings distills key takeaways including earnings per share and revenue, as well as how a company stacks up to analyst estimates. These articles are published without human intervention, allowing us to inform our readers of the latest figures as quickly as possible. To report any concerns or inaccuracies, please contact us at editor@investorplace.com.

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• ThermoGenesis Holdings reported earnings per share of -46 cents. This was below the analyst estimate for EPS of 1 cent.
• The company reported revenue of $2.74 million.
• This was 27.97% worse than the analyst estimate for revenue of $3.80 million.

InvestorPlace Earnings is a project that leverages data from TradeSmith to automate coverage of quarterly earnings reports. InvestorPlace Earnings distills key takeaways including earnings per share and revenue, as well as how a company stacks up to analyst estimates. These articles are published without human intervention, allowing us to inform our readers of the latest figures as quickly as possible. To report any concerns or inaccuracies, please contact us at editor@investorplace.com.

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• Arena Group Holdings reported earnings per share of -46 cents.
• The company reported revenue of $28.94 million.

InvestorPlace Earnings is a project that leverages data from TradeSmith to automate coverage of quarterly earnings reports. InvestorPlace Earnings distills key takeaways including earnings per share and revenue, as well as how a company stacks up to analyst estimates. These articles are published without human intervention, allowing us to inform our readers of the latest figures as quickly as possible. To report any concerns or inaccuracies, please contact us at editor@investorplace.com.

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• Digital Ally reported earnings per share of -$1.37.
• The company reported revenue of $5.53 million.

InvestorPlace Earnings is a project that leverages data from TradeSmith to automate coverage of quarterly earnings reports. InvestorPlace Earnings distills key takeaways including earnings per share and revenue, as well as how a company stacks up to analyst estimates. These articles are published without human intervention, allowing us to inform our readers of the latest figures as quickly as possible. To report any concerns or inaccuracies, please contact us at editor@investorplace.com.

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A progression of dominos is tipping over today…and the final one casts a dark shadow over your income and savings.

We’ll begin with the figure “$6,218.”

This is the average credit card debt carried by your typical U.S. consumer. It’s up a whopping 8.5% from last year.

According to a report released earlier this week by the Federal Reserve Bank of New York, a growing number of U.S. households are coming under major financial pressure, resulting in rising credit card delinquencies.

From CNBC:

Over the last year, roughly 8.9% of credit card balances transitioned into delinquency, the New York Fed reported.

According to TransUnion’s research, “serious delinquencies,” or those 90 days or more past due, reached the highest level since 2010.

Yesterday, Walmart released earnings, showing better than expected results. However, a deeper analysis reveals who’s most responsible for those profits.

From Yahoo! Finance:

Online sales in the United States surged 22%, surpassing the 17% growth it posted during the typically robust holiday season. Growth was driven by…households earning more than $100,000 per year.

“It was nice to see that sales increased because of volumes and not just prices. The dispiriting aspect is that wealthier consumers are continuing to do the heavy lifting,” said Brian Jacobsen, chief economist at Annex Wealth Management…

While Americans have generally managed to navigate through higher prices, prolonged inflation has sparked worries that lower-income consumers might be more pressured and potentially slow down an anticipated recovery in spending.

This conclusion echoes the CNBC article we highlighted on Monday titled “McDonald’s and other big brands warn that low-income consumers are starting to crack”:

Some of America’s best-known corporations are saying their consumers are being pinched by inflation as prices continue rising…

“It is clear that broad-based consumer pressures persist around the world,” McDonald’s CEO Chris Kempczinski said on the fast-food chain’s earnings call early Tuesday.

But as we just noted, these “consumer pressures” aren’t being felt equally. We’re seeing a widening of the divergence between the top 20% of American earners and the bottom 80%.

Inflation makes all sorts of items and goods more expensive. But for those Americans who own these items and goods – think assets such as real estate, stocks, commodities, collectibles, etc. – their wealth has mostly floated atop the rising tide of inflation.

Take residential real estate and stocks…

Here we are at or near all-time highs in both asset classes, thanks in large part to the trillions of dollars printed by the government that flooded our economy in the wake of the pandemic, eventually finding their way into the stock and housing markets.

And who owns stocks and homes? Well, mostly the top 20% of earners, as you can see below:

(The various shades of blue represent real estate, stocks, retirement accounts, private businesses, and other assets.)

To be clear, the after-inflation value of these assets might not have increased all that much. But from an optics perspective, these Americans undoubtedly appear wealthier while lower-income Americans are increasingly pinched.

We’re reminded of a quote from French businessman and economist, Frederic Bastiat in the 19th century:

When false money, under whatever form it may take, is put into circulation, depreciation will ensue, and manifest itself by the universal rise of everything that is capable of being sold.

But this rise in prices is not instantaneous and equal for all things. Sharp men, brokers, men of business, will not suffer by it; for it is their trade to watch the fluctuation of prices, to observe the cause. And even to speculate upon it.

But little tradesmen, countrymen and workmen, will bear the whole weight of it.

If you want a reminder about this “false money…put into circulation,” last year, The Kobeissi Letter reported that since 2020, the U.S. has printed nearly 80% of all the U.S. dollars in circulation.

From The Kobeissi Letter:

To put that in perspective, at the start of 2020 we had ~$4 trillion in circulation.

Now, there is nearly $19 TRILLION in circulation, a 375% jump in 3 years.

We are paying the price for trillions of Dollars that were printed seemingly overnight.

In the year since The Kobeissi Letter published this, our M2 Money Supply has risen ever higher – from nearly $19 trillion to more than $21 trillion.

Now, here’s where things take a frustrating turn for me…

Let’s be clear – it was the government’s own policy of fire-hosing the economy with money that played an enormous role in the recent widening of the wealth gap. So many of those trillions of dollars eventually flowed to Americans with assets.

But instead of owning up to that, the resulting wealth divergence has now become a political talking point.

“The rich have gotten even richer. They must pay their fair share.”

Now, I’d like to avoid a potential misunderstanding: I’m not against the rich or the affluent paying more in taxes (or various corporations). But I am very much against a deliberate misrepresentation of the truth about taxation.

Here are the numbers from The Wall Street Journal:

The top-earning 1%, which makes 18% of all income, paid 25% of all federal taxes and 40% of all income taxes.

The bottom-earning 60% earned 23% of income but paid only 13% of federal taxes.

That population included the bottom-earning 40%, which had a combined average income-tax rate of negative 6.4%.

America’s top tax rates often exceed international norms. Our top income-tax bracket of 43.7%—including typical state taxes—exceeds that of the standard OECD nation (40.4%). 

Sure, our wealthy could pay more in taxes. But the idea that they aren’t paying their “fair share” is naïve at best and intentionally divisive from our political leaders at worst.

I write this as someone who is not in the top income bracket, but who has eyes and a willingness to see the truth.

Would that solve our government’s debt/spending problem and the inflation-fueled wealth gap?

Beginning with alleviating our government’s debt burden, here’s Brian Riedl, senior fellow at the Manhattan Institute, published in the WSJ:

As budget deficits surge toward the stratosphere, Congress will soon have to get serious about savings proposals. Yet reforming Social Security and Medicare—the leading drivers of long-term deficits—remains a political nonstarter.

Neither party is willing to raise middle-class taxes. And cutting defense and social spending would save at most $200 billion annually from deficits that are projected to approach $3 trillion by 2034.

That leaves one option: Tax the rich. It won’t be nearly enough…

It’s farcical…to suggest that the tax-the-rich pot of gold is large enough to rein in our deficits and finance new spending programs.

Seizing every dollar of income earned over $500,000 wouldn’t balance the budget. Liquidating every dollar of billionaire wealth would fund the federal government for only nine months.

Riedl dives into greater detail on the mess our government has created, eventually dovetailing into our final domino – you and me (underline added):

As deficits soar toward 10% of GDP, taxing the rich can certainly be on the table as part of a deficit-reduction package. Yet most savings will have to come from Social Security and healthcare spending, which are driving long-term deficits upward.

Any major tax component will also have to include the middle class.

The tax-the-rich solution is a fantasy.

I believe most people would be in favor of reasonable, effective steps to help those on the low end of the economic spectrum. The challenge is what happens when rubber meets road.

Let’s look at an example…

Home equity is a huge contributor to the overall net worths of millions of Americans. Between 2020 and last summer, the price of the average U.S. home exploded 44%.

So, on paper, we now have an even greater wealth disparity (in large part due to our government’s own policy). What’s the solution?

Does the government tax homeowners on these unrealized gains and then redistribute those proceeds to non-homeowners? How many Americans have the liquidity to pay a tax bill on a 44% climb in the value of their home equity?

While that might sound crazy, recently in the Digest, we profiled President Biden’s plan to tax unrealized capital gains on ultra-wealthy Americans. Given our government’s toxic financial position, why are we to believe such a policy wouldn’t eventually widen to impact more regular Americans?

Meanwhile, what’s mentioned less frequently is that our system is already far more redistributionist than our political leaders let on.

From Bloomberg:

I have news for you: The United States is becoming more redistributionist. Whether you like it or not.

The broader historical trends show that the US tax-and-transfer system is getting more progressive, including in recent years. And the US government is increasingly redistributing wealth to the bottom half of the income distribution.

This portrait belies the common view that the US doesn’t have a “real” welfare state, at least as compared to, say, the Nordic countries…

The Bloomberg article dives into all sorts of details which we don’t have time to flesh out today. But here’s their bottom line:

Cliches about the US are easy to come by. While conservatives like to suggest that income redistribution is by its very nature anti-American, progressives say that America is uniquely cruel in its rejection of the welfare state.

Neither narrative is quite correct. As America gets more wealthy, the data show, it is redistributing more of its wealth.

At the end of the day, there’s no easy answer here. But as we connect the breadcrumbs between rising credit card debt, inflation, wealth disparity, and our government’s endless need for more money, one thing becomes increasingly clear…

Get ready to give more to Uncle Sam.

Circling back to the investment implications, the importance of generating wealth from the markets today while conditions are decidedly bullish is magnified.

And that’s our goal here in the Digest. We’re thrilled to be able to bring you the research and investment ideas from some of the smartest, most successful analysts in the business.

We’ll bring you more details in upcoming Digests, but here’s the preview of the latest trade idea from our macro expert ¶¶Òõ×îаæ…

There’s something interesting happening in the Rust Belt today. In short, it’s a revitalization through high-tech industries that are relocating to the area.

Eric has been tracking this “Rust Belt revival” and the investment implications:

As investors, capitalizing on this trend is not particularly easy… or obvious.

However, I’ve identified one sector that sits at the nexus of AI and the Rust Belt Renaissance… and the one company within that sector that I believe will be the next trillion-dollar AI company.

We’ll go over all the details on that sector during my special strategy session, The Next $1 Trillion AI Stock, scheduled for Tuesday, May 21, at 7 p.m. Eastern time. And we’ll explore how we can make 40 years of Nvidia-type gains on that stock in just months.

We’ll bring you more details on this on Monday, but to go ahead and reserve your seat for this event, click here.

Have a good evening,

Jeff Remsburg

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The post Consumers Are Cracking…How It’ll Impact You appeared first on InvestorPlace.

• Better Choice Co reported earnings per share of -$3.60.
• The company reported revenue of $7.90 million.

InvestorPlace Earnings is a project that leverages data from TradeSmith to automate coverage of quarterly earnings reports. InvestorPlace Earnings distills key takeaways including earnings per share and revenue, as well as how a company stacks up to analyst estimates. These articles are published without human intervention, allowing us to inform our readers of the latest figures as quickly as possible. To report any concerns or inaccuracies, please contact us at editor@investorplace.com.

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A cheap stock can be measured by fundamentals like its price-to-earnings (P/E) ratio. However, in many cases, a stock’s price is the barometer of cheap or expensive. In this article, we’re looking at stocks trading for $20 or less.

At this price, investors get the benefit of accumulating a significant amount of shares for a modest investment. Another advantage of finding undervalued cheap stocks under $20 is that a little price movement can have significant benefits for your portfolio. Here are seven stocks that look undervalued but have catalysts for future growth.

Clean Energy Fuels (CLNE)

Clean Energy Fuels (NASDAQ:CLNE) stock is down 42% in the last 12 months, and it’s not hard to understand why. The company’s primary business comes from renewable natural gas that the company provides for heavy-duty trucks, buses and other large vehicles in North America.

But natural gas prices have been kept in check, along with the price of oil. That could be changing, however, as surging demand for natural gas seems inevitable.

Many analysts predict the demand for data centers to support artificial intelligence (AI) applications will require amounts of energy that current renewable energy resources will be insufficient to meet. Natural gas may be able to fill that need. 

And while Clean Energy Fuels isn’t directly involved in providing natural gas for data centers it’s a case of a commodity being the rising tide that lifts all boats. In this case, the increased demand for natural gas will lift the entire sector.

Clean Energy Fuels is currently a penny stock trading at just $2.62 per share. But analysts don’t believe it will be a penny stock for long. The consensus price target of eight analysts for CLNE stock is $7.00, 167% higher than its current price, and is listed as a Strong Buy.

Kinder Morgan (KMI)

The theme of rising demand for natural gas will also be a catalyst for Kinder Morgan (NYSE:KMI). This is a midstream company that owns an expansive network of oil and natural gas pipelines in the United States and Canada. 

And there’s another reason to believe that natural gas prices may be moving higher. As Josh Enomoto wrote, you can feel the geopolitical screws tightening as it relates to oil. Russia’s war against Ukraine and rising tensions in the Middle East give investors a reason to consider energy stocks that will be a critical link in the supply chain.

KMI stock is up 14% in the last three months. However, over the last three years, the stock has been range-bound. That’s what makes this a critical moment for one of the undervalued cheap stocks. At around $19.60 per share, the stock is butting up against what has been a level of resistance. If the stock breaks out, analysts may start to raise their price targets above the consensus target of $20.31.

DigitalBridge Group (DBRG)

DigitalBridge Group (NYSE:DBRG) gives you another way to invest in the increased demand for data centers. Specifically, DigitalBridge is a real estate investment trust (REIT) that invests heavily in data centers. The company manages $75 billion in digital infrastructure assets.

The bullish case for DigitalBridge will depend on profitability. That will likely come in time as the company (i.e., the asset manager) earns a fee on every dollar of equity it manages.

That said, the company is already posting revenue and earnings growing year-over-year. That adds credibility to the analysts’ projections for 38% earnings growth in the next 12 months. If that’s the case, DBRG stock may shoot past its 52-week high as the analysts suggest it will.

AT&T (T)

It could be said that AT&T (NYSE:T) isn’t your father’s AT&T. But few people would imagine that T stock is closer to your grandfather’s AT&T. But that’s the case, as the company has simplified its business model. It went far afield from its core phone business. And as the world went digital, AT&T got leapfrogged. 

The final indignity for shareholders was when the company halved its dividend after spinning off its TimeWarner business. But with T stock down about 35% in the last 10 years, it may be time to give the company a closer look. 

Streamlining the business has allowed the company to slowly but surely lower its debt. In fact, in the company’s first quarter 2024 earnings report, AT&T had the lowest amount of debt on its balance sheet while increasing its free cash flow to $3.1 billion, $2.1 billion more than in Q1 2023.

That brings us back to the dividend, which still carries a yield of 6.42%. The company hasn’t raised it in over a year, but it’s one way the company could reward shareholders.

Nintendo (NTDOY)

By traditional metrics, such as the price-to-earnings (P/E) ratio, Nintendo (OTCMKTS:NTDOY) doesn’t immediately come across as undervalued. Its P/E ratio of 20.4x is in line with the broader market average.

However, what sets the company up as one of the undervalued cheap stocks comes down to a company that knows what it does well. In this case, Nintendo generates 90% of its revenue via its popular Nintendo Switch device.

The company is preparing to launch the next generation of the Nintendo Switch before March 2025. It’s been nine years since the Switch has had a refresh. That should create strong pent-up demand for the device for its loyal customer base. 

That expectation is likely a key reason why the consensus price target of 25 analysts is $57.45. That’s a whopping 319.9% gain from the NTDOY stock price on May 16, 2024.

Barrick Gold (GOLD)

Investing in commodities is challenging. Investing in mining stocks tied to the underlying commodities is even more difficult. That’s been the case with Barrick Gold (NYSE:GOLD), one of the world’s leading gold mining companies.

The company has one of the largest portfolios of Tier One gold and copper assets in the mining industry. In its Q1 2024 earnings report, Barrick reported gold production of 940 thousand ounces. That was lighter than the prior quarter due to what the company termed “planned maintenance.”

If you look at the spot chart of gold and the GOLD stock chart, you’ll notice both were trading in a range over the last two years. Gold appears to be breaking out of that range and is soaring to what some experts believe will be $2,600 an ounce. But mining stocks are only beginning to move higher.

The latest readings on inflation don’t change the long-term narrative for owning gold or gold stocks. Many investors can see the U.S. dollar continues to drop in value. That’s where gold shines. It’s also why investment banks can’t buy enough of it right now.

Prosus (PROSY)

The simplest way to describe Prosus (OTCMKTS:PROSY) is a company that invests in technology. The company operates internet platforms in food delivery, classifieds, payments & fintech, EdTech and retail businesses.

As was the case in 2023, Tencent Holdings (OTCMKTS:TCEHY) is the largest holding of Prosus, which owns 25% of the Chinese company. As Will Ashworth wrote in 2023, Prosus has a lot of moving parts that make it difficult to evaluate.

Nevertheless, the argument for PROSY stock to be included as one of the undervalued cheap stocks comes from the company’s latest investor presentation in which Prosus shows strong growth through each of its businesses. And the company is now accelerating its forecast for profitability into the second half of this calendar year.

If that happens, the consensus price target of $9.04, a 13.8% gain, will likely move higher.

On the date of publication, Chris Markoch did not hold (either directly or indirectly) any positions in the securities mentioned in this article. The opinions expressed in this article are those of the writer, subject to the InvestorPlace.com Publishing Guidelines.

Chris Markoch is a freelance financial copywriter who has been covering the market for over five years. He has been writing for InvestorPlace since 2019.

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The post The 7 Most Undervalued Stocks Under $20 to Buy in May 2024  appeared first on InvestorPlace.

I’m talking about the Producer Price Index (PPI), the Consumer Price Index (CPI) and the U.S. retail sales report for April, respectively.

On Tuesday, the PPI came in hot. The CPI, meanwhile, was better than expected – while the retail sales report was worse than expected.

The latter two reports drove bond yields lower (the 10-year Treasury yield fell to 4.36%), which fueled a stunning rally in stocks this week. Meanwhile the S&P 500 broke 5,300 for the first time and the Dow broke 40,000.

With the release of these inflation reports, the big question is when will the Federal Reserve start cutting key rates?

In today’s Market 360, I’ll answer that question as well as review the CPI and U.S. retail sales numbers. Then I will share insight into a new tech revolution currently taking place with a company that could be the next NVIDIA Corporation (NVDA).

Breaking Down the Latest Numbers

Now, in Tuesday’s Market 360, I broke down the results of the PPI. The PPI is considered to be a leading indicator of inflation. That’s because it tells us details about the prices producers are paying, which are then usually passed on to consumers.

Here’s a quick review:

• Headline PPI increased 0.5% in April, above the 0.3% economists were expecting and up 2.2% in the past 12 months.
• Core PPI, excluding food, energy, and trade, climbed 0.4% last month and was up 3.1% in the past 12 months.
• Interestingly, March’s PPI was revised lower, from an initial reading of a 0.2% increase to a decrease of 0.1%.
• Energy inflation remains a problem at the wholesale goods level. If we strip out April’s energy data, then goods prices would only be up by 0.1% (instead of 0.4%).

The PPI news dampened the mood on Wall Street, but it wasn’t for long. Because the CPI was released Wednesday morning, and investors cheered.

Consumer Price Index (CPI)

Headline CPI in April rose 0.3% over the previous month and 3.4% in the past year. Economists expected a 0.4% rise in April. That’s also down from a 0.4% monthly increase and a 3.5% annual pace in March.

Core CPI, which excludes food and energy, climbed 0.3% over the prior month and up 3.6% over last year. This was in line with economists’ expectations.

Looking closer at the details…

• Rent and owners’ equivalent rent each rose 0.4% on a monthly basis, matching March’s rise.
• Gas prices rose 2.8% from March to April.
• The food index increased 2.2% in April over last year, with food prices falling flat from March to April.

Shelter costs were the biggest contributor to the inflation gain in April. If this number can come down, inflation will really dissipate and will push the Fed to cut key interest rates.

U.S. Retail Sales

• Retail sales were flat in April, a sharp decline from the 0.6% increase in March. Economists were expecting a 0.4% increase, so this was a big surprise.
• Excluding auto and gas, retail sales declined 0.1% last month. This is lower than economists’ expectations of a 0.1% increase.
• Non-store retailers led the retail sales decline, falling 1.2% from the previous month.

These numbers fall in line with what I’ve been watching from both the University of Michigan and Conference Board measures of consumer confidence. The latest Conference Board report in April, for example, showed a reading of 97. That was a sharp drop from a revised 103.1 in March – and economists were expecting a reading of 104. That’s its lowest reading since July 2022 and the third-straight monthly decline.

In other words, American consumers are showing signs of fatigue. They’re cutting back on spending, partly due to high prices at the gas pump.

When Bad News Is Good News

Right now, we are in an environment where bad news is good news. Take the retail sales numbers, for example. The report was dismal, yet the market cheered. That’s because Wall Street desperately wants the Fed to hurry up and cut rates.

The European Central Bank and the Bank of England will be cutting rates in June, and both have telegraphed approximately three rate cuts this year. Now, our Fed was going to join them in a global-coordinated rate cut. But inflation, believe it or not, is running lower in Europe than it is here. And the answer to why has all got to do with shelter costs.

We’ve seen overbuilt markets like Austin, Texas, where the prices have cracked both on rents and homes. We’ve also seen other hot markets like Florida cooling off. But it’s just not showing up in the data just yet.

The truth is the Fed is dealing with some bad data right now. It’s going to take some time for them to get a clearer picture on where things stand. In fact, Fed Chair Jerome Powell pretty much acknowledged this on Tuesday, saying he thinks the Fed needs more than a quarter’s worth of data to really know for sure if inflation is steadily falling towards its 2% target.

If we take that at face value, then this means the Fed will need more than three inflation reports to feel confident enough to cut rates. That would push the timeline to September.

In fact, according to the CME FedWatch Tool, traders are predicting a 33.8% that rates will stay the same at the September meeting.

Personally, I think the first cut could be on July 31 – and then we could see another cut in September.

The Best Defense is a Good Offense

As I’ve said before, I don’t want you to worry too much about rate cuts.

Why? Because the best defense is a good offense of fundamentally superior stocks that will dropkick and drive your portfolio higher.

I’m talking about the kinds of stocks you’ll find in my Growth Investor service.

In fact, I recently told my readers about a new tech revolution that’s quietly happening behind the scenes.

It’s nearly ready for primetime – and when it is, it could overturn the dominance of AI stocks in the market. It’s called Quantum Computing-as-a-Service (QaaS).

Remember that phrase. You’re going to hear more about quantum computing (and QaaS) a lot more in the months and years to come.

QaaS is set to disrupt major industries like pharmaceutical, oil & gas, telecom, and more. And as you know, the time to get in on the market’s next big winners is before the crowd catches on.

That’s why I shared the name of a tiny company with my Growth Investor subscribers. Experts think could become the next NVIDIA…

Click here to learn how to gain access to this exclusive report now.

(Already a Growth Investor subscriber? Click here to log in to the members-only website.)

Sincerely,

¶¶Òõ×îаæ

Editor, Market 360

The Editor hereby discloses that as of the date of this email, the Editor, directly or indirectly, owns the following securities that are the subject of the commentary, analysis, opinions, advice, or recommendations in, or which are otherwise mentioned in, the essay set forth below:

NVIDIA Corporation (NVDA)

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While silver reached $30/oz in intraday trading back in 2021, it hasn’t finished the day over that price in a decade.

There’s plenty of potential reasons for silver’s recent spike. Signs that inflation is slowing, the notion of falling interest rates, the recent meme stock frenzy and general financial and industrial strength may all be playing a factor in silver’s climb.

Silver prices have also likely risen as a result of supply issues surrounding the metal. Indeed, 2024 marks the fourth year of a silver shortage, with this year in particular being one of the most intense on record.

Silver has enjoyed a strong year thus far. Indeed, the metal is up 30% year-to-date (YTD). Despite this, it’s still historically cheap compared to gold. Indeed, per Seeking Alpha, it takes about 80 oz of silver to purchase just one ounce of gold. This is far higher than the 20-year average ratio of 68:1.

Gold prices have also climbed quite substantially this year. Indeed, gold futures are up about 17% YTD. Just last month, gold prices reached a new all-time high of about $2,431 per ounce before falling back down. Gold prices aren’t too far behind currently, however, at $2,415/oz.

Will Silver Prices Continue to Rally in 2024?

Some believe the metals have even further to go this year. According to JC O’Hara, Chief Technical Strategist at ROTH Capital, the price of gold “now appears poised to move higher and break out of the recent highs made in April.”

“We can set a technical upside price target to $2,600,” said O’Hara.

In the same note, O’Hara stated that if silver prices can move above $30, silver “will have little resistance until the $35/$37 area.”

Metals prices tend to move inversely with interest rates. That’s why the somewhat cool inflation data — which strengthened the case for rate cuts this year — caused a spike in metals prices.

Whether the rally continues, then, may be dependent on good inflation data over the next few months — and further evidence of rate cuts to come.

On the date of publication, Shrey Dua did not hold (either directly or indirectly) any positions in the securities mentioned in this article. The opinions expressed in this article are those of the writer, subject to the InvestorPlace.com Publishing Guidelines.

With degrees in economics and journalism, Shrey Dua leverages his ample experience in media and reporting to contribute well-informed articles covering everything from financial regulation and the electric vehicle industry to the housing market and monetary policy. Shrey’s articles have featured in the likes of Morning Brew, Real Clear Markets, the Downline Podcast, and more.

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The most recent retail sales report for April was flat, providing further evidence that consumer spending is slowing down amid sticky inflation and persistently high interest rates. Relief might be on the way should the U.S. Federal Reserve begin to lower interest rates this September as many economists and analysts expect. Lower interest rates would provide a much needed tailwind to retailers and could help boost their stocks.

As we inch closer to a lower interest rate environment, here are three retail stocks to buy with strong ratings.

Walmart (WMT)

Discount retailer Walmart (NYSE:WMT) just reported first-quarter financial results that topped Wall Street estimates due to growth in its e-commerce sales. The latest print explains why Wall Street rates WMT stock a strong buy. The median price target on the shares is $66.64, which is 3% higher than current levels. And that’s after the stock rallied 6% on news of the solid Q1 print. But it’s not surprising that a retail giant like Walmart would be top of the list of retail stocks to buy.

Walmart announced earnings per share (EPS) of 60 cents versus 52 cents that had been forecast among analysts. Revenue came in at $161.51 billion compared to $159.5 billion that was estimated on Wall Street. The profit and sales beats were driven by e-commerce sales that grew 22% year-over-year (YOY). Walmart said that it also grew its high-margin businesses, like advertising, as it pushes to increase its earnings faster than its sales. Global advertising sales increased 24% during the quarter.

WMT stock has gained 28% in the past 12 months and analysts see more upside ahead.

Lululemon Athletica (LULU)

Analysts are urging investors to buy the dip in Lululemon Athletica (NASDAQ:LULU). Despite LULU stock declining 34% this year, 21 analysts on Wall Street rate the shares a consensus strong buy. The median price target on Lululemon’s stock is $472.60, which is 41% above where the shares presently trade. Analysts clearly feel that the selloff in LULU stock has been overdone and is unwarranted.

Lululemon’s stock got crushed after the maker of athletic apparel and sneakers delivered financial results at the end of March that showed slowing sales in the U.S. and included weak forward guidance. The company has since announced plans to close a distribution center in Washington state and eliminate 100 jobs. Despite the gloomy outlook, Lululemon’s last print beat Wall Street expectations across the board.

Analysts have pointed out that Lululemon’s numbers have not been that bad, and also note that the company’s international expansion is succeeding. Lululemon’s Q4 2023 international sales grew 54% YOY, with sales in China increasing 78%. Despite the current pullback, LULU stock is up 94% over the last five years.

AutoZone (AZO)

AutoZone (NYSE:AZO) is another favorite stock on Wall Street. The largest retailer of aftermarket car parts and accessories in the U.S., the company has been in business since 1979 and today has more than 7,000 stores nationwide. A total of 18 professional analysts collectively rate AZO stock a strong buy with a median price target of $3,314.72, implying 13% upside.

Analysts like AutoZone’s niche focus on automotive parts and accessories and the company’s dominant position within the marketplace. This has translated into strong financial results for AutoZone. The company’s most recent earnings print was better than expected, lifted by a growing trend towards do-it-yourself (DIY) automotive repairs, particularly for older model vehicles.

AZO stock is up 13% this year and has almost tripled over the past five years. Long-term, the performance is even better. AutoZone’s stock has increased 95 times since the company began repurchasing its own shares in 1999. The stock has grown from $25 a share to nearly $3,000 in the last 25 years. There are rumors of a stock split coming.

On the date of publication, Joel Baglole did not hold (either directly or indirectly) any positions in the securities mentioned in this article. The opinions expressed in this article are those of the writer, subject to the InvestorPlace.com Publishing Guidelines.

Joel Baglole has been a business journalist for 20 years. He spent five years as a staff reporter at The Wall Street Journal, and has also written for The Washington Post and Toronto Star newspapers, as well as financial websites such as The Motley Fool and Investopedia.

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Though, if you’re following the mainstream media’s lead, you may be considering the wrong stocks to buy to prepare for this boom. 

See; most of the current AI hype has been centered around chipmakers like Nvidia (NVDA) and software companies like Microsoft (MSFT). Those are the AI stocks that CNBC and Bloomberg are writing about. They’re the ones making all the headlines and grabbing most investors’ attention…

But those AI stocks are not the ones that have the real experts in the industry – like the CEO of DeepMind, Google’s AI Business – most excited. And they are certainly not the AI stocks with the most explosive upside potential as the AI Boom rages on. 

Rather, that title belongs to a different type of AI stock – in a subsector where a perfect storm is brewing to potentially fuel staggering gains in a short amount of time. 

I’m talking about biotech stocks. 

Seriously, biotech stocks are on fire right now. 

One tiny biotech firm named Corbus Pharmaceuticals (CRBP) is up more than 600% this year already – and we’re not even halfway through the year. Another named JanOne (JANX) is up more than 365%, while Skye Bioscience (SKYE) is up about 320% year-to-date. 

Certain biotech stocks are soaring right now. And we think many will only keep rising.

Why? It’s all thanks to the convergence of AI and biotechnology. 

AI Meets Biotech: Unlocking Enormous Economic Value

The application of AI in the field of biology could prove to be massively profitable. 

We aren’t alone in that thinking. Google DeepMind CEO Demis Hassabis agrees. In fact, he recently said that AI applied to biotechnology has the potential to unlock “enormous economic value.” 

What’s driving all this bullishness? Data. 

After all, when it comes to the human body, there is no dearth of quality data. In fact, there is more high-quality data than anywhere else on Earth.

That’s because, like computers, humans are really nothing more than a bunch of data strung together.

At their core, computers are just a bunch of 1s and 0s coded in sequence, with each number corresponding to a certain action for the computer to perform. Humans, similarly, are a bunch of As, Gs, Cs, and Ts strung together – or the four base types found in human DNA molecules – with each determining a person’s characteristics, traits, and even actions.

In that sense, the connecting element between humans and computers is data. 

That means AI can have an especially profound impact on the human body. 

Quality Data Leads to Powerful Results

Of course, what is AI at the end of day? It’s just a machine-learning algorithm using data analysis to learn how to perform certain tasks. That means that ultimately, the quantity and quality of data an AI model has access to determines the quality of that model itself. 

And when it comes to the human body, there is no dearth of quality data.

Apply AI to all that data, and you will change the world. 

Consider this: It takes about $900 million and 13.5 years to develop a new successful drug.

The drug development process is so expensive and time-consuming that firms cannot afford to push that many drugs forward. This creates a huge shortage in drug candidates and programs relative to what is possible given all the permutations of human biological data.

But AI can significantly shorten and cheapen this process.

It can map out genetic data, identify mutations, and run simulations to find the right compounds and combat those mutations – all almost instantly.

Essentially, researchers can use AI to find new drug candidates much faster than is currently possible.

And this is already happening. 

Last year, Japanese pharma giant Takeda Pharmaceutical (TAK) bought an experimental psoriasis drug for $4 billion – a drug that was created in only six months by using AI.

It isn’t alone.

Other pharma giants like Bayer, Roche, Sanofi (SNY) and AstraZeneca (AZN) are actively using AI technology for drug discovery purposes.

Even Nvidia is in this game, partnering with AI biotech startups to develop foundational models for AI-powered drug discovery and development. 

The future of medicine starts now. And it’s big business.

The Final Word on AI in Biotech

Research firm Deep Pharma Intelligence estimates that investments in the field of AI-powered drug discovery have tripled over the past four years to nearly $25 billion.

Morgan Stanley believes this tech will lead to an additional 50 novel therapies being brought to market over the next decade, with annual sales in excess of $50 billion!

But according to DeepMind’s CEO, even those estimates are conservative 

DeepMind is considered one of the leaders in AI-powered drug discovery. Its foundational tool, AlphaFold, leverages AI to predict protein structures. And the firm just launched a new version that can model a range of molecular structures – including DNA and RNA – to predict how they interact with one another. This represents a huge step toward scalable AI-powered drug discovery. 

And DeepMind’s CEO hopes to create a multi-hundred-billion-dollar business from AlphaFold.

We think that’s entirely possible. 

Global drug sales represent a market that’s running north of $1.5 trillion per year. 

We believe that AI-powered drug discovery should disrupt that entire industry. From that perspective, AI-powered drug discovery could one day be a trillion-dollar market. 

The time to invest in this emerging, hidden corner of this boom is now. 

Per our research, there are two firms outside of DeepMind who are leading the AI Biotech Revolution. 

They are world-class firms led by the smartest people in the industry and with the best technology in the game. They are each attacking massive opportunities with very promising development pipelines. And perhaps most importantly, they are backed by the biggest AI companies in the world – Microsoft and Nvidia. 

Trust me. These are two stocks you want to know about right now. We’re confident each could soar more than 1,000% over the next few years. 

Learn all about these potential biotech behemoths.

On the date of publication, Luke Lango did not have (either directly or indirectly) any positions in the securities mentioned in this article.

P.S. You can stay up to speed with Luke’s latest market analysis by reading our Daily Notes! Check out the latest issue on your Innovation Investor or Early Stage Investor subscriber site.

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As interest rates went higher in 2022 and 2023, small-cap stocks fell out of favor. Many of these stocks are those of small, early stage companies that are not yet profitable. The rising cost of capital due to higher interest rates can most affect these companies.  

That’s the risk that can come from investing in small-cap stocks. However, these are also the stocks that make a 10x gain more probable. That magnitude of gain is more likely after a time when these stocks have been under pressure. That’s why a little investment in these three small-cap stocks to buy could be a smart play before the Federal Reserve cuts interest rates.  

Clean Energy Fuels (CLNE) 

Clean Energy Fuels (NASDAQ:CLNE) specializes in providing natural gas in alternative forms such as renewable natural gas, compressed natural gas and liquified natural gas for a variety of applications.  

At the onset of Russia’s invasion of Ukraine, natural gas prices spiked sharply. Many analysts saw this as the beginning of a long-term uptrend for natural gas. But instead of moving higher, natural gas prices have come down and are trading at levels not seen for over 20 years.  

Not surprisingly, you can see the same price action play out in the chart for CLNE stock.  

However, natural gas demand is expected to spike due to the power needs of data centers, which are used to power artificial intelligence applications. That will be bullish for companies such as Clean Energy Fuels, which is responsible for refining and marketing natural gas.  

Nine analysts have a consensus price target of $7.06 for CLNE stock. That would be a gain of over 155% in the next 12 months. Considering that we’re only at the beginning of a multi-year cycle of increased natural gas demand, CLNE stock is likely to be one of the small-cap stocks to buy for years to come.  

Bitdeer Technologies (BTDR) 

The recent Bitcoin halving event brought Bitcoin (BTC-USD) miners to the forefront for many investors. Bitdeer Technologies (NASDAQ:BTDR) is one of those Bitcoin mining stocks that warrants a second look.  

Bitdeer not only mines Bitcoin, but has also developed its own Bitcoin mining chip, the 4 nm SEALMINER chip offering 18.1 J/TH efficiency. Bitdeer markets it as a chip designed by miners, for miners. It will also help the company avoid supply chain disruptions and optimizing its operational efficiency. Bitdeer also offers cloud computing, AI cloud, and data center solutions for businesses.  

That said, BTDR stock has not been following Bitcoin higher in 2024. In fact, the stock is down 45% this year. Nevertheless, eight analysts have a consensus price target of $13.31 for Bitdeer, which would be a 147% return in the next 12 months.  

Affimed (AFMD) 

Any decent list of small-cap stocks to buy for $10 or less per share with high upside potential will include biotech stocks. Many of these companies, such as Affimed (NASDAQ:AFMD), are developing innovative treatments for existing diseases and chronic conditions.  

Affimed is attacking cancer treatment via its Innate Cell Engager (ICE) molecules, which in layman’s terms, help the body’s natural (or innate) immune system fight solid and liquid tumors. The company’s lead candidate, AFM13-202 for peripheral T cell lymphoma, completed Phase 2 trials. That means it will take some time to get it approved.  

Biotech investors often worry that their company will run out of cash before it gets a product approved. However, Affimed reports that it is funded through the first half of 2025. That will allow the company to “drive clinical development to meaningful inflection points.” 

The consensus price target of seven analysts is $15.08. That would be a whopping 190% gain from the stock’s price at this writing. Six out of those seven analysts give AFMD stock a “strong buy” rating.  

On Penny Stocks and Low-Volume Stocks: With only the rarest exceptions, InvestorPlace does not publish commentary about companies that have a market cap of less than $100 million or trade less than 100,000 shares each day. That’s because these “penny stocks” are frequently the playground for scam artists and market manipulators. If we ever do publish commentary on a low-volume stock that may be affected by our commentary, we demand that InvestorPlace.com’s writers disclose this fact and warn readers of the risks.

Read More: Penny Stocks — How to Profit Without Getting Scammed

On the date of publication, Chris Markoch did not have (either directly or indirectly) any positions in the securities mentioned in this article. The opinions expressed in this article are those of the writer, subject to the InvestorPlace.com Publishing Guidelines. 

Chris Markoch is a freelance financial copywriter who has been covering the market for over five years. He has been writing for InvestorPlace since 2019.

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The post Small-Cap Sensations: 3 Stocks Under $10 With 10X Potential appeared first on InvestorPlace.

• Polar Power reported earnings per share of -12 cents.
• The company reported revenue of $1.78 million.

InvestorPlace Earnings is a project that leverages data from TradeSmith to automate coverage of quarterly earnings reports. InvestorPlace Earnings distills key takeaways including earnings per share and revenue, as well as how a company stacks up to analyst estimates. These articles are published without human intervention, allowing us to inform our readers of the latest figures as quickly as possible. To report any concerns or inaccuracies, please contact us at editor@investorplace.com.

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The post POLA Stock Earnings: Polar Power Reported Results for Q4 2023 appeared first on InvestorPlace.

• Altisource Asset Mgmt reported earnings per share of $49.98.
• The company reported revenue of $234,000.

InvestorPlace Earnings is a project that leverages data from TradeSmith to automate coverage of quarterly earnings reports. InvestorPlace Earnings distills key takeaways including earnings per share and revenue, as well as how a company stacks up to analyst estimates. These articles are published without human intervention, allowing us to inform our readers of the latest figures as quickly as possible. To report any concerns or inaccuracies, please contact us at editor@investorplace.com.

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The post AAMC Stock Earnings: Altisource Asset Mgmt Reported Results for Q1 2024 appeared first on InvestorPlace.

• Asset Entities reported earnings per share of -10 cents.
• The company reported revenue of $124,841.

InvestorPlace Earnings is a project that leverages data from TradeSmith to automate coverage of quarterly earnings reports. InvestorPlace Earnings distills key takeaways including earnings per share and revenue, as well as how a company stacks up to analyst estimates. These articles are published without human intervention, allowing us to inform our readers of the latest figures as quickly as possible. To report any concerns or inaccuracies, please contact us at editor@investorplace.com.

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The post ASST Stock Earnings: Asset Entities Reported Results for Q1 2024 appeared first on InvestorPlace.

• MyMD Pharmaceuticals reported earnings per share of -$5.14.
• The company did not report any revenue for the quarter.

InvestorPlace Earnings is a project that leverages data from TradeSmith to automate coverage of quarterly earnings reports. InvestorPlace Earnings distills key takeaways including earnings per share and revenue, as well as how a company stacks up to analyst estimates. These articles are published without human intervention, allowing us to inform our readers of the latest figures as quickly as possible. To report any concerns or inaccuracies, please contact us at editor@investorplace.com.

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The post MYMD Stock Earnings: MyMD Pharmaceuticals Reported Results for Q4 2023 appeared first on InvestorPlace.

• AYRO reported earnings per share of -$1.46. This was below the analyst estimate for EPS of -$1.31.
• The company reported revenue of $58,351.

InvestorPlace Earnings is a project that leverages data from TradeSmith to automate coverage of quarterly earnings reports. InvestorPlace Earnings distills key takeaways including earnings per share and revenue, as well as how a company stacks up to analyst estimates. These articles are published without human intervention, allowing us to inform our readers of the latest figures as quickly as possible. To report any concerns or inaccuracies, please contact us at editor@investorplace.com.

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One of the most significant developments regarding the legalization movement came Thursday when President Biden posted a video message regarding his administration’s intentions to reclassify marijuana from a Schedule I drug to Schedule III. “Too many lives have been upended because of our failed approach to marijuana,” he remarked.

As InvestorPlace’s Shrey Dua noted, the move is significant. “Schedule I drugs are considered to have virtually no health benefits and are highly addictive. Other drugs in this class include heroin and LSD. Meanwhile, Schedule III drugs reflect a low-to-moderate potential for dependence, with some medicinal uses to boot,” Dua wrote.

From a financial perspective, the policy shift carries potential tax benefits. Schedule I drugs, Dua stated, face “steep taxes and regulation that may ease in the face of the progressive legislation.” Still, Canopy must deliver, and that’s where CGC stock becomes a complex picture.

CGC Stock Counts Down to a Critical Earnings Showdown

Since the beginning of the year, CGC stock gained about 126% in equity value. However, the overall ride has been incredibly choppy. In the past 52 weeks, the security has only gained roughly 3%. Therefore, longstanding skepticism still surrounds the cannabis enterprise.

For the fiscal fourth quarter, Wall Street analysts are targeting a consensus loss per share of 33 cents. On the high side, the most optimistic expert anticipates a loss of 15 cents, whereas the pessimistic view calls for 58 cents in the red. In the year-ago quarter, Canopy suffered a loss of $9.46 per share.

On the top line, analysts, on average, are looking for sales of $53.23 million. Notably, the high-side estimate calls for $63.5 million, while the pessimistic view sits at $50.56 million. In Q4 of the prior year, Canopy generated revenue of $64.64 million.

Data from Yahoo Finance reveals no EPS revisions for the upcoming earnings disclosure. And only one expert upped the bottom-line target in the past seven days.

However, not everyone is convinced about CGC stock despite the reclassification news. In particular, Bank of America Securities Lisa Lewandowski reiterated a “sell” rating on Canopy. Per Markets Insider, Lewandowski cited multiple headwinds, “including a projected stagnation in quarterly sales and the company’s valuation presenting a significant premium to its peers despite operational inconsistencies.”

Should You Buy Canopy Growth?

Although CGC stock is exciting, it still carries a moderate sell consensus view among analysts. Naturally, Lewandowski’s downbeat assessment doesn’t help. Significantly, the expert mentioned that true reform will be necessary for Canadian cannabis operators to profitably venture into the U.S. market. Therefore, prospective investors will want to exercise caution, especially at the current valuation.

On the date of publication, Josh Enomoto did not have (either directly or indirectly) any positions in the securities mentioned in this article. The opinions expressed in this article are those of the writer, subject to the InvestorPlace.com Publishing Guidelines.

A former senior business analyst for Sony Electronics, Josh Enomoto has helped broker major contracts with Fortune Global 500 companies. Over the past several years, he has delivered unique, critical insights for the investment markets, as well as various other industries including legal, construction management, and healthcare. Tweet him at @EnomotoMedia.

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During Q1, Tiger Global initiated a position in RDDT stock, picking up 500,000 shares. That’s equivalent to 0.13% of the hedge fund’s 13F portfolio, making Reddit its 33rd-largest position out of 41 total positions. Tiger Global’s allocation is still small, which hints at the hedge fund taking a starter position while waiting for additional confirmation to adjust its stake.

This is noteworthy because Reddit had its initial public offering (IPO) on March 21, while Tiger Global’s 13F documents its holdings as of the end of March. This means that the hedge fund purchased shares right after the IPO.

RDDT Stock: Tiger Global Buys 500,000 Shares

Tiger Global operates as a long-term investor, making it likely that it is still holding onto its Reddit shares. It has an average 13F holding period of 11.71 quarters, or nearly three years. Its total 13F assets under management (AUM) tallies in at a significant $18.29 billion.

The hedge fund’s purchase was quite timely, as RDDT is up by almost 30% since the end of March. This morning, the company announced a licensing deal with OpenAI, sending its shares higher.

“OpenAI will bring Reddit content to ChatGPT and new products, helping users discover and engage with Reddit communities,” said Reddit. “To do so, OpenAI will access Reddit’s Data API, which provides real-time, structured, and unique content from Reddit.”

On top of that, OpenAI will also become a Reddit advertising partner while providing the company with new features powered by AI.

Tiger Global wasn’t the only 13F filer interested in RDDT stock. These investors own a total of 20.60 million shares. FMR was the largest buyer during Q1, picking up 2.36 million shares, followed by Inclusive Capital Partners with its 2.08 million share purchase.

On the date of publication, Eddie Pan did not hold (either directly or indirectly) any positions in the securities mentioned in this article. The opinions expressed in this article are those of the writer, subject to the InvestorPlace.com Publishing Guidelines. 

Eddie Pan specializes in institutional investments and insider activity. He writes for InvestorPlace’s Today’s Market team, which centers on the latest news involving popular stocks.

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The first one shows that it can take advantage of growing consumer credit needs. It has record-breaking network volume and smart entry into the point-of-sale (POS) sector. Meanwhile, the second one has sharply increased new orders, particularly its innovative HAMR technology. This indicates that the market is beginning to recognize it as a major player in the data storage industry. Finally, the third is notable for its technological mastery in artificial intelligence (AI)-driven analytics. It allows cloud migration to be done easily and meets the growing demand for insights based on data.

Overall, suppose one has a sharp eye and strategic insight. In that case, one may be positioned to ride the wave of growth driven by the first’s network proficiency, the second’s technical advances, and the third’s advancements in analytics technology. These firms may be positioned to rule the market due to their strong fundamentals.

Pagaya (PGY)

In Q1 2024, Pagaya (NASDAQ:PGY) generated a record network volume of $2.42 billion, surpassing estimates of $2.2 billion to $2.4 billion, a substantial 31% year-over-year (YOY) increase. This remarkable rise shows Pagaya can attract more customers and quickly increase its market share. Indeed, there is substantial demand for Pagaya’s products, leading to the realization of growth possibilities in the US consumer credit sector.  

Additionally, to grow its point-of-sale (POS) business, Pagaya partnered with a bank. In the second half of 2024, the network will come online and the company will expand into new markets. This growth represents Pagaya’s effective entry into one of the U.S. consumer credit markets with the quickest growth rate. In Q1 2024, Pagaya recorded record total revenue and other income of $245 million, exceeding expectations of $225 million to $240 million.

Finally, the company posted massive 31% YoY network volume growth. The solid 35% rise in income from fees was the main driver of the revenue growth. To sum up, this demonstrates the efficacy of Pagaya’s monetization tactics.

Intevac (IVAC)

In Q1 2024, Intevac (NASDAQ:IVAC) received more than $20 million in new orders. Hard disk drive (HDD) media technology updates are the primary source of income for Intevac, as this is a stable and expanding industry. Leading data storage firms have placed early orders for the company’s heat-assisted magnetic recording (HAMR) technology improvements, demonstrating the market’s approval and adoption of their technology. HAMR improves media’s writability by focusing heat energy to assist grain reversal.

Additionally, after reaching a payment terms agreement with its biggest client, Intevac maintained its strong delivery and installation of HAMR upgrades. When the joint development agreement (JDA) for Intevac’s automated coating platform TRIO was resolved, Intevac became engaged directly with major OEMs and their suppliers. Indeed, this led to easier direct shipments and increased market reach. An Asian display cover glass finishing plant received the first TRIO system. The TRIO platform’s solid customer base suggests market demand and revenue development potential. 

Lastly, for 2024, Intevac anticipates overall sales in the low $50 million range. TRIO may generate sales beyond $10 million, supporting further expansion. Thanks to continuous technological advancements, sales of HDDs are close to $40 million. This is highly progressive.

Teradata (TDC)

The technology delivered by Teradata (NYSE:TDC) may rapidly meet the expanding demand for large-scale AI-driven analytics. The company’s design demonstrates that migration to the cloud can be done easily, as demonstrated by happy customer experiences. Teradata’s innovations, such as AI Unlimited and VantageCloud, show how dedicated the company is to giving clients access to cutting-edge solutions. Moreover, Teradata’s lead in technology highlights its capacity to adapt to changing market demands, especially in AI and analytics. 

Further, Teradata focuses on enhancing execution and promoting profitable growth despite a slight drop in total annual recurring revenue (ARR). With a non-GAAP EPS of 57 cents, the company’s performance was within its quarterly range. Teradata offers a projection for 2024 that maintains current growth ranges for recurring revenue and total ARR while projecting a reacceleration of growth in cloud ARR and total ARR over the year.

Finally, Teradata demonstrates resilience and strategic planning through its capacity to remain profitable and offer assistance in the face of market adversities. The firm is dedicated to its long-term growth goals, which include reaching $1 billion in cloud ARR by 2025, despite short-term changes. 

On the date of publication, Yiannis Zourmpanos did not hold (either directly or indirectly) any positions in the securities mentioned in this article. The opinions expressed in this article are those of the writer, subject to the InvestorPlace.com Publishing Guidelines.

Yiannis Zourmpanos is the founder of Yiazou Capital Research, a stock-market research platform designed to elevate the due diligence process through in-depth business analysis.

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While the narrative has certainly been more bullish this week, thanks to weaker-than-expected inflation data, there’s also plenty to watch in the week ahead. Between macro factors and various sector-specific catalysts and headwinds, investors have plenty to keep them on their toes.

Let’s dive into five of the major stories investors may want to stay attuned to next week.

The Week Ahead in Stocks

We’ve seemingly moved away from a Federal Reserve-driven market, but it’s clear that the top priority for many investors this coming week will be incoming Fed speak and housing market data. On Wednesday, existing home sales will be published, along with the Federal Open Market Committee (FOMC) meeting minutes, which will be parsed by investors for specific language. Thursday will also bring PMI and jobless claims data, with a slew of Fed speakers set to talk to the media throughout the week. Any sort of shift in narrative should shape how the market responds this upcoming week.

The second and third key factors I think are important to watch are index levels (can the Dow remain above the key psychological threshold of 40,000?) and how earnings reports will affect the overall indices. A full slate of earnings is ahead, with many consumer-facing companies putting forward their numbers. Investors will certainly infer what these numbers mean for the respective companies, but also the overall market.

Finally, the last two factors to hone in on next week are commodity prices and whether the relatively low volatility we’ve seen via the Volatility Index (VIX) continues. We’ve seen a surge in precious metals, cocoa and other key commodity inputs, although that hasn’t translated into stock market volatility. We’ll have to see whether this dynamic changes in the week to come.

On the date of publication, Chris MacDonald did not hold (either directly or indirectly) any positions in the securities mentioned in this article. The opinions expressed in this article are those of the writer, subject to the InvestorPlace.com Publishing Guidelines.

Chris MacDonald’s love for investing led him to pursue an MBA in Finance and take on a number of management roles in corporate finance and venture capital over the past 15 years. His experience as a financial analyst in the past, coupled with his fervor for finding undervalued growth opportunities, contribute to his conservative, long-term investing perspective.

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Today, the Dow Jones is up another 0.2%, within spitting distance of closing above this level. The 40,000 level for this index is a key psychological one, with traders positioning their portfolios accordingly. Higher index levels have been driven by large-cap performance (as is the case with other indices), though the makeup of the Dow is considerably different from the S&P 500 or Nasdaq.

With a focus on more industrial and blue-chip names, this index is often viewed as much more representative of the overall U.S. economy. If the market is gauging things right, perhaps that spells good times ahead.

Let’s dive into what to make of this move, and whether the Dow can end the year above this key level.

Put On Your Dow 40,000 Hats

We’ve yet to see a daily close above 40,000 on the Dow, so today’s price action will certainly be more closely watched by market pundits, traders and investors alike. Like any round number, many put outsized emphasis on where the Dow is currently trading and what may take this index to the 50,000 level down the road.

Consumer spending has remained strong, and the large-cap blue-chip stocks held in this index have certainly benefited from this trend. While less tech-heavy than other indices, it’s worth noting that the Dow does hold key mega-cap tech darlings such as Microsoft (NASDAQ:MSFT), Apple (NASDAQ:AAPL) and Amazon (NASDAQ:AMZN), which happen to be the three largest Dow components by market capitalization.

So, this index isn’t immune to the artificial intelligence (AI) related catalysts taking the market higher but is more defensive in nature. It’s also more expensive to buy (via ETFs), meaning big money investors tend to focus on this index over others. That’s something that’s worth noting for retail investors looking to gain exposure to this space.

Over time, the stock market has historically headed higher, and I think it’s just a matter of time for us to celebrate 50,000 on the Dow. How long that will take is anyone’s guess, but this price action is certainly worth paying attention to today.

Chris MacDonald’s love for investing led him to pursue an MBA in Finance and take on a number of management roles in corporate finance and venture capital over the past 15 years. His experience as a financial analyst in the past, coupled with his fervor for finding undervalued growth opportunities, contribute to his conservative, long-term investing perspective.

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Sales of weight loss drugs, led by GLP-1 agonists, are expected to grow at a compound annual rate above 19% between 2023 and 2029. The drugs reduce appetite while slowing emptying of the stomach. The result is astounding weight loss for users. That alone will  fuel increasing demand.  By the way, demand metrics are pretty incredible. Some estimates contend that 9% of the U.S. population may be on the drugs by 2030. 

Viking Therapeutics (VKTX)

Viking Therapeutics (NASDAQ:VKTX) is the most exciting pharma stock among the top performers this year. The company has emerged as one of the primary challengers in the development of weight-loss therapeutics. Share prices have more than quadrupled throughout 2024 with more gas left in the tank. 

The company recently shared updates on its lead candidate drugs, VK2809 and VK2735. Each drug has continued to show incredible promise in producing weight loss. 

However, it’s VK2809 that investors should pay particular attention to. The drug is currently in Phase 2B clinical trials for the treatment of non-alcoholic steatohepatitis (NASH). That is essentially a form of fatty liver disease for which it is showing promising efficacy. There are a few important things to note on that front. First of all, if the company can successfully prove that it is safe and effective for that purpose it opens its potential utility as a weight-loss drug. Many insurers are hesitant to pay for weight-loss drugs. Those drugs will face a much easier approval process if they have a secondary purpose.

Moreover, VK2809 is a pill. None of the leading weight-loss drugs is currently available in pill form. The first commercialized weight-loss pill is almost certain to be a blockbuster. Viking Therapeutics is in the running. It’s hard to bet against the stock at this point. 

Eli Lilly (LLY)

Eli Lilly (NYSE:LLY) is a stock that will continue to confound investors throughout 2024. Those investors are well aware of the continued potential in the stock following its strong Q1 earnings report at the end of April.

Revenue growth reached 26% during that period. As encouraging as those results appear, those sales came up short of expectations. One way to assess Eli Lilly’s current potential is to simply look at its price relative to forecast prices. Current share prices are above consensus at the moment suggesting it’s entirely logical to be cautious.

At the same time, Eli Lilly will continue to face challengers like Viking Therapeutics which promise to capture market share moving forward. My best guess is that Eli Lilly is going to trade sideways for the time being. The weight-loss drug market will continue growing rapidly in the coming years but Eli Lilly’s gains over the last year won’t continue for the next 12 months. it’s a great story but not one worth investing in at this point. 

Novo Nordisk (NVO)

Novo Nordisk (NYSE:NVO) stock is facing the same issues as Eli Lilly but continues to trade slightly below consensus prices. That said, I don’t think investors should assume Novo Nordisk will fare any better than Eli Lilly for the remainder of 2024.

Like Eli Lilly, Novo Nordisk missed sales estimates during the most recent period. Wall Street was expecting the company to produce $1.52 billion in sales of Wegovy, but the company produced only $1.35 billion. 

List prices for the drug continue to fall as competition rises. Those factors are not expected to change for the remainder of 2024. Thus, it’s reasonable to anticipate the drugmaker will continue trading sideways during the year.

Novo Nordisk’s challengers include not only small firms such as Viking Therapeutics but also large multinational pharmaceutical companies including Amgen (NASDAQ:AMGN). Its weight loss drug may produce longer-lasting weight loss than currently available therapeutics. The overall thrust here is that most of the returns for Novo Nordisk have already been had.

On the date of publication, Alex Sirois did not have (either directly or indirectly) any positions in the securities mentioned in this article. The opinions expressed in this article are those of the writer, subject to the InvestorPlace.com Publishing Guidelines.

Alex Sirois is a freelance contributor to InvestorPlace whose personal stock investing style is focused on long-term, buy-and-hold, wealth-building stock picks. Having worked in several industries from e-commerce to translation to education and utilizing his MBA from George Washington University, he brings a diverse set of skills through which he filters his writing.

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The appeal of penny stocks is understandable, though. Controlling only a handful of shares can make you a killing if the stock moves higher by just a few pennies. Unfortunately, that rarely happens, and most investors who buy penny stocks don’t ever see that return. They end up getting slaughtered. Penny stocks are a playground ripe for manipulation, fraud and pump-and-dump schemes. 

Yet the Securities & Exchange Commission classifies any stock selling under $5 per share as a “penny stock.” That gives us more leeway to find a real business. By pulling back our lens, we can find businesses offering products and services that consumers want to buy and still represent an opportunity for growth. 

Below are three undervalued penny stocks to buy in May before the market catches onto their bargain-basement pricing.

Iamgold (IAG)

At around $2,380 an ounce, gold is trading near its all-time high. The yellow metal has been on a tear for five years, doubling in value. Canadian gold miner Iamgold (NYSE:IAG) hasn’t had as long of a run of good fortune, but this year shares are up 76% to around $4.50 per share. They could go higher.

Iamgold completed its first gold pour at the Cote gold mine in Ontario as it nears its commissioning date. When in full production, Cote could be the third-largest gold mine in Canada. Iamgold expects gold production to reach 220,000 ounces to 290,000 ounces this year. Cote has a total estimated measured and indicated mineral resource of 16.5 million ounces with an additional 4.2 million ounces inferred. That would give the gold mine an estimated life expectancy of 18 years with significant growth opportunities.

Iamgold will then have three mines in operation. With global tensions rising on many fronts, expect gold prices to remain elevated and Iamgold stock to rise alongside heightened demand for the precious metal.

Tilray Brands (TLRY)

Marijuana stock Tilray Brands (NASDAQ:TLRY) has several levers it can pull to continue growing. Tilray stock is down 12% this year to $2, and shares sit 40% below their 52-week high.

The primary catalyst for growth is legalization of marijuana in Germany. Tilray is the largest cannabis stock in Germany by revenue. It might take a minute for the recreational use market to get going until regulations are adopted but Tilray already has a sales team on the ground. 

That is because its Tilray Pharma distribution arm already distributes medical marijuana to 13,000 pharmacies in the country. The pot stock also has production facilities in Portugal and Canada and exports marijuana to Germany. Tilray is the best-positioned cannabis company to take advantage of this opportunity.

The potential for U.S. legalization also represents the possibility for future growth. While Tilray would likely have to make an acquisition to jumpstart operations here, with extensive experience in Canada and soon Germany, it would be a small hurdle to get over.

Petco Health & Wellness (WOOF)

Admittedly Petco Health & Wellness (NASDAQ:WOOF) hasn’t worked out as well as I anticipated when I identified it last August as a bargain stock ready to run. Apparently I was just early. While Petco stock lost 65% since then to $2.40, shares are up over 50% in the past month.

The long-term trends of the pet industry are why I chose Petco and why I am still bullish today. According to the American Pet Products Association, U.S. pet parents spent $147 billion on their four-legged fur babies in 2023, up 7.5% from the year before. Pet owners will spend another $150 billion on them this year. Of that, $64.4 billion will be food and treats, while $38.3 billion goes to veterinarian care and products.

Petco offers a wide range of pet food, products and services, including vet care, that consumers will gravitate towards. It is only dramatically underperforming the market because it is heavily weighed down with debt. Because the Federal Reserve raised interest rates at an unprecedented rate and then embarked on a higher-for-longer policy, Petco’s variable interest rate loans come at a high cost.

Inflation just inched down in April so the Federal Reserve may be more inclined to cut rates eventually. As Petco reduces its debt and becomes cheaper to finance, look for Petco to rise above its penny stock status.

On Penny Stocks and Low-Volume Stocks: With only the rarest exceptions, InvestorPlace does not publish commentary about companies that have a market cap of less than $100 million or trade less than 100,000 shares each day. That’s because these “penny stocks” are frequently the playground for scam artists and market manipulators. If we ever do publish commentary on a low-volume stock that may be affected by our commentary, we demand that InvestorPlace.com’s writers disclose this fact and warn readers of the risks.

Read More: Penny Stocks — How to Profit Without Getting Scammed

On the date of publication, Rich Duprey did not hold (either directly or indirectly) any positions in the securities mentioned in this article. The opinions expressed in this article are those of the writer, subject to the InvestorPlace.com Publishing Guidelines.

Rich Duprey has written about stocks and investing for the past 20 years. His articles have appeared on Nasdaq.com, The Motley Fool, and Yahoo! Finance, and he has been referenced by U.S. and international publications, including MarketWatch, Financial Times, Forbes, Fast Company, USA Today, Milwaukee Journal Sentinel, Cheddar News, The Boston Globe, L’Express, and numerous other news outlets.

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