Happy Thursday 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 Rose on Thursday. Technology stocks brought the S&P 500 and Nasdaq Composite back into positive territory, gaining 1% and 2%, respectively.

• 📈 | One Notable Gainer: Apple shares rose 4% after JPMorgan announced the stock still has a 25% upside. JPMorgan expects the iPhone 17 to be Apple’s first “AI phone.”

• 📉 | One Notable Decliner: Used vehicle seller CarMax saw its shares tumble 9% after missing analyst estimates for fourth-quarter results and delaying its vehicle sales goal.

• ➡️ | Tomorrow's Trade: Moving in the Right Direction. Scroll down for more.

Plus, this company made the award winning platform for investing in blue-chip art.

YESTERDAY’S POLL RESULTS

Which stock do you think will outperform over the rest of 2024?

🟩🟩🟩🟩🟩🟩 PayPal (PYPL)

🟨⬜️⬜️⬜️⬜️⬜️ GFL Environmental (GFL)

🟨🟨🟨🟨⬜️⬜️ Mastercard (MA)

MARKET MOVERS

Nike, Alpine Immune Sciences, & Rocket Lab

NKE (+3%) Nike shares rose after BofA upgraded the stock, saying estimates are bottoming and looking achievable ahead of the Paris Olympics (IBD)

FAST (-7%) Fasteners and tools distributor Fastenal reported lower-than-expected quarterly results, showing a 4.4% drop in fastener sales (Investopedia)

ALPN (+37%) Alpine Immune Sciences skyrocketed after Vertex Pharmaceuticals announced it’s acquiring the company in a $4.9 billion deal (IBD)

RKLB (+3%) Shares of Aerospace company Rocket Lab rose after it was selected for a $32 million contract with the US Space Force for its Victus Haze project (SN)

TEAM (+5%) Software company Atlassian got a boost after a Barclays Capital upgrade from Equal-weight to Overweight, citing a healthy growth profile (SA)

TOGETHER WITH MASTERWORKS

This market with 63% price growth isn't just for billionaires anymore…

Over the last 20 years, record prices achieved for Banksy’s art have grown at an astounding 63% compound annual rate. Even more impressive? It's not just the ultra-wealthy benefiting from this phenomenal growth. Thanks to Masterworks.  

Masterworks enables its 820,000+ users to access investments in multi-million dollar artworks by artists like Banksy, Basquiat, and Picasso for just a fraction of the cost of an entire piece. 

When Masterworks sells a painting, like the 16 it’s already sold, investors can get a return on their investment. With 3 recent sales, Masterworks investors realized net annualized returns of 17.8%, 21.5% and 27.3%.

Every offering is limited, and shares can sell out in just minutes, but [Newsletter] readers can skip the waitlist with this exclusive link.

Skip the waitlist

Past performance is not indicative of future returns, investing involves risk. See disclosures masterworks.com/cd

OVERHEARD ON THE STREET

AP: A Senate subcommittee has summoned Boeing CEO David Calhoun to testify on its jetliner safety following new whistleblower charges.

BI: Goldman Sachs economist Jan Hatzius believes the Fed will cut interest rates just two times in 2024 following the hotter-than-expected March CPI report.

AP: Ford is recalling nearly 43,000 small SUVs because gasoline can leak from the fuel injectors onto hot engine surfaces, increasing the risk of fires.

Bloomberg: Apple, aiming to boost sluggish computer sales, is preparing to overhaul its entire Mac Line with AI-focused M4 chips.

Reuters: Elon Musk said he will visit India to meet Prime Minister Modi. Two sources told Reuters they expect Musk to announce a new factory in the country.

TOMORROW’S TRADE IDEA, TODAY

Moving in the Right Direction

An Essential Product

Ball bearings are an essential part of everyday life. According to D.A. Davidson analyst Michael Shlisky, almost everything built with a moving part utilizes them. 

Timken (TKR) is a global powerhouse when it comes to manufacturing ball bearings. It supplies ball bearings to a wide range of industries from automobiles to kitchen gadgets. 

Shlisky is bullish, but many other analysts are skeptical of the stock's cyclical nature and weakening Chinese demand. Shlisky gave the stock a $94 price target, but the average is $90.15. The stock is currently trading at around $85 per share.

Shifting Towards Growth

Earnings are expected to fall 11% this year but rise 13.5% in 2025. That climb will be largely driven by recurring business, which makes up 40% of the company’s revenue. Because Timken’s products are essential for the machines it supports, its repeat customers and market share remain stable.  

The company also has an impressive history of generating consistent free cash flow and profit margins. 

The ball bearing manufacturer has shifted focus away from automobiles (which have been slumping), towards faster-growing categories to set itself apart from the competition.

Looking to the Future

According to analysts, Timken doesn’t over-leverage itself. Instead, it uses its steady stream of free cash flow for stock buybacks and consistent dividends. Currently, shares are yielding 1.5%. 

The company has also gotten a boost from new CEO Tarak Mehta, who Oppenheimer analyst Brian Blair believes has the perfect background to lead the company toward growth. 

The stock is currently trading at 12.4 times its projected 2025 earnings, a bargain compared to other large industrial stocks. 

2024 might not be a great year for the stock, but the next few years look bright. If analysts are correct, now could be the ideal time to buy this consistent company poised for future growth.

TOGETHER WITH MASTERWORKS

This market with 63% price growth isn't just for billionaires anymore…

Over the last 20 years, record prices achieved for Banksy’s art have grown at an astounding 63% compound annual rate. Even more impressive? It's not just the ultra-wealthy benefiting from this phenomenal growth. Thanks to Masterworks.  

Masterworks enables its 820,000+ users to access investments in multi-million dollar artworks by artists like Banksy, Basquiat, and Picasso for just a fraction of the cost of an entire piece. 

When Masterworks sells a painting, like the 16 it’s already sold, investors can get a return on their investment. With 3 recent sales, Masterworks investors realized net annualized returns of 17.8%, 21.5% and 27.3%.

Every offering is limited, and shares can sell out in just minutes, but [Newsletter] readers can skip the waitlist with this exclusive link.

Skip the waitlist

Past performance is not indicative of future returns, investing involves risk. See disclosures masterworks.com/cd

ON OUR RADAR

Bloomberg: According to a Federal Reserve Bank of Philadelphia report, US credit card delinquency rates were the highest on record in the fourth quarter.

Newsweek: The share value of Trump Media & Technology Group has declined by more than half the amount it was valued at when the stock went public.

CNBC: The European Central Bank held interest rates steady for a fifth straight meeting but gave its strongest indication yet that rate cuts could be ahead.

AP: China sanctioned two US defense companies, accusing them of supporting arms sales to Taiwan and freezing their assets held within China.

Bloomberg: Canadian cities are being overwhelmed by a record surge of newcomers seeking asylum, straining temporary shelters and city budgets.