🕯️ Hygge Future

Happy Sunday to everyone on The Street. 

For most of us, it has been a tough couple of years, economically speaking. But it’s important to keep perspective.

After all, I’m pretty sure none of us misplaced $13 billion, like one Hermès heir apparently did. He fired his financial adviser in response. Talk about an underreaction.

Before we dive in, here’s a quick word from our sponsor:

Sponsored & Written By Wealthpin

Air Force quietly working with sub $10 stock on new tech

Dear Reader: There is a little-known energy technology stock that has made an incredible breakthrough…

Which could become crucial to the operations of the US Military.

And right now there are plans for this stock to undertake a major test project at a US Air Force based in Alaska.

Upon announcing this project a Department of Defense official said:

“The Department of the Air Force announcement today demonstrates how the Department of Defense continues to invest in facilitating U.S.-developed technology that provides mission assurance and advances our national interests in Alaska and the homeland”

Now, this incredible breakthrough is still in its earliest stages…

Which means you still have a chance to get in while its trading for under $10.

So if you want to see exactly what this breakthrough is…

And how they could end up with major contracts with the US Military and large private sector companies…

You need to check out the full story right here.

An Unlikely Opportunity for the Food Industry

Adapt or Die

The weight-loss industry isn’t the only sector being affected by GLP-1 drugs like Wegovy and Ozempic. The food industry is seeing some changes — and not just lagging sales.

These drugs are reducing the demand for unhealthy foods. But they’re also increasing interest in more nutritional options. Some food companies are capitalizing on this trend by developing products with higher protein and fiber content, targeting the unique needs of GLP-1 users.

Giving the People What They Want

Brands such as Conagra (CAG), Danone (DANOY), and Nestlé (NSRGY) are taking advantage of this new market. 

Conagra has started marketing its single-serve frozen meals towards GLP-1 users, highlighting portion control and overall convenience. 

Meanwhile, Nestlé debuted a “Vital Pursuit” frozen meal lineup with high-protein, fiber-rich options. The line was developed with GLP-1 users in mind. Additionally, Nestlé offers supplements designed to assist with nutrient gaps that develop as a result of the decreased food intake for GLP-1 patients.

Playing Both Sides

As GLP-1 drugs continue to grow in popularity, food companies are focusing on current users as well as individuals who are transitioning off the drugs and trying to maintain weight loss. Some in the food industry expect items like protein shakes and bars to rise in favor as former GLP-1 users attempt to keep up a healthy lifestyle.

Analysts are projecting that the drugs will continue to explode over the next decade, which would continue to shake up the food industry’s current norms. And it may create plenty more opportunities to adapt and capitalize on changing consumer demands.

Pfizer Is Down, Not Out

Calling Them Out

Jeff Smith — CEO of activist hedge fund Starboard Value, which holds a $1 billion stake in Pfizer (PFE) — recently criticized the pharma company's management.

Smith accused Pfizer of greatly diminishing shareholder value through a series of bad investments and acquisitions. He didn’t go as far as to call for Pfizer CEO Albert Bourla’s removal, but did urge the board to make a significant effort to increase returns. 

The stock is down over 6% over the past 12 months and around 4% YTD.

A Bargain Deal?

Pfizer has lost almost half its market value since its peak during the pandemic, which could present a chance for patient investors to get the stock at a steep discount. 

The stock is now trading at around 10 times 2025 projected earnings, well below the majority of its peers. It also boasts a 6% dividend yield that stands out within the industry. 

Analysts believe that any positive surprises for Pfizer, like the earnings beat it just reported on Tuesday, could go a long way in lifting the stock back up.

Turnaround on the Horizon?

Pfizer got a much-needed win on Tuesday when its Q3 results beat both revenue and profit expectations. The earnings beat was largely due to strong sales numbers from its COVID-19 vaccine and antiviral Paxlovid. 

The company lifted its full-year forecast, announcing that it now expects EPS to reach up to $2.95 per share. It is also projecting annual revenue to reach up to $64 billion. 

Due to the nature of the pharmaceutical industry, the company is limited in its capacity to generate immediate change. But with shareholders exerting internal pressure and fundamentals on the mend, investors looking for a discount stock with potential upside might want to take a second look at Pfizer.

Bringing Warehouses Into the 21st Century

The Sharp Money Likes It

A Norwegian warehouse automation firm is becoming increasingly popular with investment banks as they urge their customers to buy the stock.

Berenberg projects AutoStore (AUTO.OL) stock to gain around 50% over the next 12 months. The Norwegian company provides technology to automate traditional warehouses and now controls upwards of 90% of this market, per the German bank. 

Using AutoStore’s products and tech has allowed warehouses to store items four times more densely than manually operated warehouses, which results in increased efficiency and lower operating costs.

Revenue Is Down

Berenberg has initiated coverage of AutoStore stock at a target of $1.37 per share, which is around 50% upside from current prices. 

The company posted $154 million in sales and $80 million in adjusted profits in Q2 but is expecting revenue to drop around 7% year-over-year. This poor revenue outlook, compounded with the state of the European economy and a general hesitancy to automate on the part of larger companies, has driven the stock price down.

But the Street seems to think its future prospects are much cozier.

Hygge Future

Overall, analysts are confident in AutoStore’s long-term outlook. Citi (C) is echoing Berenberg, citing the company’s strong return on investment for its customers. For instance, food nutrition firm THG plc (THG-GB) reportedly recouped 80% of its investment in AutoStore automation within the first year of operation. 

Norwegian investment firm Arctic Securities, the biggest bull of the bunch, isn’t worried about potential competition from companies like Amazon (AMZN). In fact, it believes that Amazon will turn to AutoStore’s tech rather than build its own. 

Investment banks could be onto something with this Norwegian stock pick.

Sponsored & Written By Wealthpin

Air Force quietly working with sub $10 stock on new tech

Dear Reader: There is a little-known energy technology stock that has made an incredible breakthrough…

Which could become crucial to the operations of the US Military.

And right now there are plans for this stock to undertake a major test project at a US Air Force based in Alaska.

Upon announcing this project a Department of Defense official said:

“The Department of the Air Force announcement today demonstrates how the Department of Defense continues to invest in facilitating U.S.-developed technology that provides mission assurance and advances our national interests in Alaska and the homeland”

Now, this incredible breakthrough is still in its earliest stages…

Which means you still have a chance to get in while its trading for under $10.

So if you want to see exactly what this breakthrough is…

And how they could end up with major contracts with the US Military and large private sector companies…

You need to check out the full story right here.

Last Week’s Poll Results

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

🟩🟩🟩🟩🟩🟩 Netflix (NFLX)

🟨🟨🟨⬜️⬜️⬜️ Sony (SONY)

Are you bullish or bearish on luxury brands over the next 12 months?

🟨🟨⬜️⬜️⬜️⬜️ 🐂 Bullish

🟩🟩🟩🟩🟩🟩 🐻 Bearish

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

🟩🟩🟩🟩🟩🟩 Eaton (ETN)

🟨🟨🟨🟨⬜️⬜️ Lineage (LINE)

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