Happy Friday afternoon to everyone on The Street. Here's a snapshot of where markets ended the trading session, plus tomorrow's trade idea delivered to you today.

• 🟩 | US Stocks Surged on Friday. Each of the three major indexes rose nearly 1%, and the Dow climbed above 40,000, marking a record close as the market’s rally expands beyond tech.

• 📈 | One Notable Gainer: Lucid Group’s stock surged 25%, bringing shares up a total of 36% for the week after hitting a new record for EV vehicle deliveries in Q2 and reporting a strengthened partnership with Saudi Arabia.

• 📉 | One Notable Decliner: Shares of coconut water company Vita Coco declined 9% following a downgrade from Piper Sandler, which cited rising freight costs that could increase operational expenses for the company.

• 😴 | Tomorrow's Trade: Don’t Sleep on This Stock. Scroll down for more.

Plus, today’s partner is pioneering 2024 with breakthrough laser systems, key distribution partnerships, and continuous advancements in laser technology innovation.

YESTERDAY’S POLL RESULTS

Which stock do you think will outperform over the next 12 months?

🟩🟩🟩🟩🟩🟩 Gitlab (GTLB)

🟨⬜️⬜️⬜️⬜️⬜️ Monday.com (MNDY)

MARKET MOVERS

Delta Air Lines, Snowflake, & Citigroup

DAL (-3%) Delta Air Lines announced it expects to take a $100 million hit as travelers avoid Paris this summer due to the Olympics (NBC)

SFTBY (+1%) Japanese investment holding company SoftBank announced it acquired British AI chip company Graphcore (WSJ)

SNOW (-2%) Shares of data cloud company Snowflake dipped following the AT&T leak of customer data that was stored on Snowflake’s platform (Barron’s)

C (-2%) Citigroup’s stock fell despite posting Q2 results that topped expectations and showed a 60% surge in investment banking revenue (CNBC)

ARRY (+9%) Array Technologies’ stock surged after Citi upgraded it to Buy, citing potential for shares to rebound after losing 31% year to date (Barron’s)

TOGETHER WITH LASER PHOTONICS

Laser Photonics Has Been Busy Launching Products, Forging New Partnerships; More To Come

Laser Photonics Corp. (NASDAQ: LASE) is off to a good start in 2024, rolling out new products, inking distribution deals and churning out next-generation laser tech in its R&D lab. 

Take products for starters. In 2024 it launched its CleanTech next-generation laser system which includes mobile connectivity for remote monitoring and control, a new compact form factor and a smart overheat protection feature for increased safety. Then there’s its SaberTech next-generation laser system which incorporates turbo piercing and cold-cutting technology alongside the company’s existing laser-cutting technology to achieve precise, high-quality cuts during manufacturing and fabrication. The company also rolled out products to meet the unique needs of the defense market. 

On the distribution front, LPC now counts Brokk Inc., Fastenal Company (NASDAQ: FAST) and Incredible Supply & Logistics (ISL) as partners. R&D and marketing aren’t an afterthought either. LPC dedicates a lot of time and money to both efforts to boost sales and continue to be an innovator.

To learn more about LPC and its next-generation lasers, click here.

OVERHEARD ON THE STREET

WSJ: SpaceX is pushing to sharply increase rocket launches in Texas, with 25 Starship flights annually, five times higher than what’s currently permitted.

Axios: Lyft‘s second safety report showed an increase in vehicle fatalities and fatal physical assaults but a decline in sexual assaults.

FT: Apple is seeking a “killer app” to help attract consumers to its $3,500 Vision Pro as developers primarily create new apps for the iPhone and iPad.

Axios: The United States Postal Service is raising stamp prices starting Sunday, marking the second price hike this year and the fifth one in 24 months.

Fox Business: Kroger and Albertsons, who are looking to merge, have identified the 579 locations from their combined grocery store count.

TOMORROW’S TRADE IDEA, TODAY

Don’t Sleep on This Stock

Oversold

ResMed (RMD) is down about 10% since Eli Lilly (LLY) reported that clinical trials of its drug Zepbound had positive results with easing sleep apnea. 

What’s the connection? ResMed makes masks and CPAP machines for treating sleep apnea. Eli Lilly’s news dampened investors' sentiment on future product demand for ResMed. However, some analysts believe this was an overreaction, and the stock’s current valuation is now well below its true worth.

The Reality

According to Mike Matson of Needham, the company will lose around $37 million of revenue in 2024. This is less than 1% of the sales consensus estimate, which sits at $4.8 billion. 

Shane Ponraj of Morningstar believes that GLP-1 drugs could even increase the medical company’s CPAP sales as the general public becomes more health-conscious. 

According to ResMed, patients currently on GLP-1 drugs are 11% more likely to start using therapy machines than those who aren’t. And the market for sleep apnea treatments isn’t going anywhere, as nearly a billion people worldwide suffer from it.

Sales Growth

Analysts expect ResMed’s sales to grow just under 10% each year to hit $5.9 billion by 2027, according to FactSet data. And the company’s operating margins are expected to rise from 31.6% to 32.6%.

The company is gearing up to put $1 billion of free cash flow to work by buying back $200 million of shares annually. Matson has given the stock a $236 price target, representing an 18% increase from yesterday’s close. 

Several analysts think ResMed stock is oversold and undervalued, signaling a timely opportunity.

TOGETHER WITH LASER PHOTONICS

Laser Photonics Has Been Busy Launching Products, Forging New Partnerships; More To Come

Laser Photonics Corp. (NASDAQ: LASE) is off to a good start in 2024, rolling out new products, inking distribution deals and churning out next-generation laser tech in its R&D lab. 

Take products for starters. In 2024 it launched its CleanTech next-generation laser system which includes mobile connectivity for remote monitoring and control, a new compact form factor and a smart overheat protection feature for increased safety. Then there’s its SaberTech next-generation laser system which incorporates turbo piercing and cold-cutting technology alongside the company’s existing laser-cutting technology to achieve precise, high-quality cuts during manufacturing and fabrication. The company also rolled out products to meet the unique needs of the defense market. 

On the distribution front, LPC now counts Brokk Inc., Fastenal Company (NASDAQ: FAST) and Incredible Supply & Logistics (ISL) as partners. R&D and marketing aren’t an afterthought either. LPC dedicates a lot of time and money to both efforts to boost sales and continue to be an innovator.

To learn more about LPC and its next-generation lasers, click here.

ON OUR RADAR

CNBC: According to data released today, China’s imports fell in June, missing expectations for slight growth, while exports grew more than expected.

Bloomberg: European health authorities claim there is a risk of anesthesia complications for patients being treated with weight-loss drugs.

Pew: According to a recent Pew Research poll, about half of Americans (53%) believe that the American dream is still possible.

NPR: Google’s greenhouse gas emissions have risen by 48% since 2019, and Microsoft’s have increased by 29% since 2020 due to AI energy demand.

AP: The EU said that blue checkmarks from X are deceptive and that the online platform falls short of transparency and accountability requirements.