Happy Monday 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 were mixed on Monday. The Dow Jones Industrial Average closed at a record high. It initially climbed more than 200 points but retreated to an ultimate 65-point gain. The S&P 500 fell 0.32% while the Nasdaq Composite lost 0.85%.

• 📈 | One Notable Gainer: Warner Bros. Discovery shares climbed 2%, though there is no clear catalyst for the rally. However, the company is currently mired in a legal battle with the NBA.

• 📉 | One Notable Decliner: China's PDD Holdings, owner of online marketplace Temu, missed quarterly revenue estimates as reduced consumer spending led to a 29% stock drop.

• 🏔️ | Tomorrow's Trade: Is Everest Far From Its Peak?

Plus, Cboe is providing a list of brokers and trading platforms that offer Cboe index options. Click here to see their recommended brokers.

MARKET MOVERS

Uber, SolarEdge, Icahn Enterprises

Uber (-2%) Uber hit with $324 million fine by Dutch data agency (Fast Company)

SEDG (-9%) SolarEdge’s stock reverses lower as CEO steps down after 5 years in the role (MarketWatch)

IEP (-11%) Icahn Enterprises hit near 21-year low on share sale worth up to $400 mln (Reuters)

PBR (+9%) Petrobras Eyes Argentina Deals to Boost Energy Imports (Bloomberg)

MU (-4%) Analyst updates Micron stock price target after conference (The Street)

TOGETHER WITH CBOE

OVERHEARD ON THE STREET

CNBC: Dexcom launched Stelo, an over-the-counter glucose monitor for prediabetics and Type 2 diabetics, priced at $99 or $89 with a subscription.

CNN: Apple announced its next major event will be held on September 9 with the tagline “It’s Glowtime,” suggesting a focus on artificial intelligence.

Bloomberg: IBM is closing its hardware research team in China due to geopolitical tensions between the US and China.

CNBC: Intel is working with Morgan Stanley to fend off activist investors after a 60% drop in value this year, struggling with AI competition.

AP: NASA’s decision to not use Boeing’s capsule for returning astronauts is expected to worsen the company’s reputation more than its finances.

TOMORROW’S TRADE IDEA, TODAY

Is Everest Far From Its Peak?

Insurer of the Moment

The stock price of insurer Everest (EG) may not match its potential.

Everest is the fourth-largest property and casualty reinsurer in the world, and it has been extremely profitable over the last few years. But according to some analysts, its stock price doesn’t reflect the insurer’s strength — nor its potential for future growth.

Right now, Everest is capitalizing on the current trend of higher premiums for catastrophe insurance. And its net written premiums are expected to jump 12% this year — double their 2019 level.

Base Camp Multiple

Despite exponential growth and profits, the stock is trading at just 6 times projected 2024 earnings, and less than 1.2 times book value per share. That gives Everest one of the lowest P/E’s in the entire S&P 500 index. 

Companies that trade at a multiple similar to Everest’s typically do so because they have extremely weak earnings, according to Scott Black of Delphi Investments, but that’s not the case here. Everest has generated more return on equity this year than Warren Buffett’s Berkshire Hathaway (BRK.B).

Risks vs. Rewards

According to KBW analyst Meyer Shields, Everest’s book value could hit $350 per share by year’s end and $410 per share at the end of 2025. Shields also projects that profits will rise 10% next year, and holds an Outperform rating on the stock. 

It wouldn’t be Everest without some risks. Black maintains that a few factors hold the stock back, such as investor concern over extreme weather events in the coming quarter and the cost of its international expansion efforts. 

But any company trading at such a low multiple, despite strong earnings and a roadmap for continued growth, is worth another look for investors.

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ON OUR RADAR

AP: Canada is imposing a 100% tariff on Chinese electric vehicles, matching U.S. tariffs over concerns about unfair subsidies.

Reuters: Damola Adamolekun, former CEO of P.F. Chang's, will lead Red Lobster following court approval of the chain's bankruptcy plan.

Oil Price: Oil prices surged amid geopolitical tensions, including Israel-Hezbollah clashes, Russia's attacks on Ukraine, and Libya's oil production halt.

CNN: Telegram CEO Pavel Durov's arrest in France has brought significant attention to both the messaging service and its founder.

Fox Business: Over 9,500 cases of Walmart apple juice are being recalled due to high levels of inorganic arsenic, according to the FDA.

FRIDAY’S POLL RESULTS

Are you bullish or bearish on FTAI Aviation (FTAI) over the next 12 months?

🟩🟩🟩🟩🟩🟩 🐂 Bullish

🟨⬜️⬜️⬜️⬜️⬜️ 🐻 Bearish