Happy Tuesday 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 Tuesday, with the S&P 500 and the Nasdaq Composite hitting record highs. Investors seem optimistic ahead of Nvidia’s earnings report.

• 📈 | One Notable Gainer: Eli Lilly’s stock rose 3% and hit a new all-time high after its diabetes drug tirzepatide received approval from Chinese regulators. This approval sets up intensifying competition with rival Novo Nordisk in the key Asian market.

• 📉 | One Notable Decliner: Shares of Peloton plummeted 16% after it announced a sale of a $1 billion loan offering to help refinance existing debt and recover from a recent slump in sales.

• 🏁 | Tomorrow's Trade: Down, but Not Out. Scroll down for more.

Plus, our partner is expanding its mining presence in Liberia with the Dugbe Gold Project.

YESTERDAY’S POLL RESULTS

Are you bullish or bearish on The Trade Desk (TTD) over the next 12 months?

🟩🟩🟩🟩🟩🟩 Bullish

🟨⬜️⬜️⬜️⬜️⬜️ Bearish

MARKET MOVERS

Lam Research, AstraZeneca, & Macy’s

LRCX (+2%) The board of semiconductor-equipment company Lam Research approved a $10 billion share repurchase authorization (Barron’s)

AZN (+3%) AstraZeneca’s stock surged after announcing it is on a fast growth track and set its revenue target to hit $80 billion by 2030 (Fierce Pharma)

VFS (-19%) EV maker VinFast Auto saw shares tumble after the NHTSA launched an investigation into a fatal VF 8 crash that killed a family of four (Reuters)

AZO (-4%) AutoZone’s stock fell after the auto-parts retailer reported strong earnings but disappointing sales (Barron’s)

M (+5%) Macy’s first-quarter earnings topped Wall Street’s expectations as the retailer pointed to early signs of momentum in its turnaround strategy (CNBC)

TOGETHER WITH PASOFINO GOLD

A Liberian Gold Rush? Introducing Pasofino Gold’s Dugbe Gold Project

Pasofino Gold is expanding its mining presence in Liberia with the Dugbe Gold Project, aiming to tap into West Africa's untapped gold exploration potential. The project is located within the Birimian geological province, known for hosting West African gold deposits. Pasofino owns 100% of the project through its subsidiary, ARX Resources Limited. 

The known discoveries in the project, such as the Dugbe F and Tuzon areas, indicate a combined Measured and Indicated Resource of around 3.3 million ounces of gold. The project also has large mineral reserves, estimated at 2.76 million ounces, supporting an annual gold production of 200,000 ounces from open-pit mining.

In January 2024, Pasofino closed a non-brokered private placement of $2.3 million to insiders to fund the Dugbe Gold project which allowed the company to progress the development of the Project and the maximization of its value. Currently, a new drill program is underway to extend the Tuzon mineralization along with possible additional exploration targets previously identified.

Click here to keep reading

OVERHEARD ON THE STREET

Reuters: Nestle is planning a new line of $5 frozen pizzas and protein-enriches pasta designed for people taking weight loss drugs like Wevory and Ozempic.

CNN: United Airlines revealed that demand for flights to Lisbon, Portugal, where Swift is performing for her “Eras Tour,” shot up 25% for this weekend.

WSJ: A report from the Senate Finance Committee found that BMW, Jaguar, and VW parts may have been made with forced labor.

BI: Wendy’s just announced a new value meal shortly after McDonald’s, showing that the fast food war is heating up.

WSJ: A Boeing 777-300ER departing London’s Heathrow Airport hit severe turbulence, leaving one dead and dozens injured.

TOMORROW’S TRADE IDEA, TODAY

Down, but Not Out

A Lackluster Season

Nestlé (NSRGY) is the largest food company on the planet, but it hasn’t been performing like a global all-star recently. The stock’s US shares have lost over 15% over the past year, well behind the broader market. 

The Swiss giant owns 30 well-known brands that help it bring in over $100 billion in total annual sales. Still, its sales volume has been weak over the past several quarters. 

The stock has grown around 7% over the past 5 years, dragged down by inflated food costs affecting consumers. But things might be about to change for the 158-year-old company.

Light at the End of the Tunnel

CEO Mark Schneider recently stated that the company’s Q1 numbers were skewed by mostly one-off circumstances like the US government cutting payments to low-income households. He expects volume to bounce back throughout the rest of the year. 

The CEO is confident Nestlé will hit its organic sales goal of 4% growth and its earnings per share goal of 6% to 10% growth. Should that come to fruition, analysts believe it will serve as a tailwind for the stock price. 

The company isn’t known for making major business moves. Instead, it has focused on more efficient product development and health and nutrition acquisitions.

Available at a Discount

Currently, Nestlé stock trades for around 19 times 2024’s projected earnings at a comparable price to its peers. However, the stock is cheaper when accounting for its stake in L’Oréal (LRLCY). Then, its price-to-earnings ratio is closer to 15. 

40% of Nestlé’s sales come from the developing world which has recently seen a rise in population and wealth. This trend is expected to continue to benefit the company in the future. 

Nestlé is a historic and iconic company with a portfolio of impressive brands. That, coupled with its cheap valuation and projected growth, could provide investors with a timely opportunity.

TOGETHER WITH PASOFINO GOLD

A Liberian Gold Rush? Introducing Pasofino Gold’s Dugbe Gold Project

Pasofino Gold is expanding its mining presence in Liberia with the Dugbe Gold Project, aiming to tap into West Africa's untapped gold exploration potential. The project is located within the Birimian geological province, known for hosting West African gold deposits. Pasofino owns 100% of the project through its subsidiary, ARX Resources Limited. 

The known discoveries in the project, such as the Dugbe F and Tuzon areas, indicate a combined Measured and Indicated Resource of around 3.3 million ounces of gold. The project also has large mineral reserves, estimated at 2.76 million ounces, supporting an annual gold production of 200,000 ounces from open-pit mining.

In January 2024, Pasofino closed a non-brokered private placement of $2.3 million to insiders to fund the Dugbe Gold project which allowed the company to progress the development of the Project and the maximization of its value. Currently, a new drill program is underway to extend the Tuzon mineralization along with possible additional exploration targets previously identified.

Click here to keep reading

ON OUR RADAR

Reuters: Under the European Chips Act, European research labs will receive 2.5 billion euros in funding to develop and test advanced computer chips.

Barron’s: SEC staff told exchanges yesterday that they are leaning towards approving exchange-traded funds holding Ether.

Bloomberg: Manhattan apartment rents rose last month to a new high for April, an increase that suggests another record-shattering summer to come.

Axios: THC-infused drinks are popping up more often in breweries and alcohol retailers due to a loophole in the 2018 farm bill.

Reuters: California's state court is considering a labor union challenge on whether Uber and Lyft can keep classifying drivers as independent contractors.