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.

Also, it's the last day of the month, which means it's time for the Last Cast Letter. If you like reading about real estate and want to invest alongside us, use this automatic one-click link to subscribe.

• 🟩 | US Stocks Rose on Friday. The Dow rose 575 points, marking the index’s best day in 2024 as the Fed’s preferred inflation measure came in within expectations.

• 📈 | One Notable Gainer: Shares of Gap popped 29% after beating quarterly estimates on top and bottom lines and raising its full-year guidance. All four of Gap’s brands posted positive sales for the first time in years.

• 📉 | One Notable Decliner: Dell’s stock plummeted 18% after the company beat analyst expectations and offered optimistic guidance. However, Dell also reported that its AI servers are being sold at “near-zero margins.”

• 🛞 | Tomorrow's Trade: Oiling the Wheels. Scroll down for more.

Plus, find out more about the role nickel holds in our modern economy from our partner.

YESTERDAY’S POLL RESULTS

Are you bullish or bearish on Autoliv (ALV) over the next 12 months?

🟩🟩🟩🟩🟩🟩 Bullish

🟨🟨🟨🟨⬜️⬜️ Bearish

MARKET MOVERS

Salesforce, Boston Beer, & MongoDB 

COST (-1%) Shares of Costo fell despite reporting earnings that topped Wall Street expectations, with higher sales and low operating costs (CNBC)

CRM (+8%) Salesforce bounced today but is still headed for its worst week in more than a decade, as shares are still down 14% for the week (CNBC)

SAM (+22%) Boston Beer, the American brewer known for its Samuel Adams brand, is in talks to be acquired by Japanese whisky-maker Suntory (WSJ)

MDB (-24%) Database company MongoDB reported slower growth than expected, profits fell, and it offered disappointing guidance (Motley Fool)

JWN (+5%) Nordstrom reported a wider-than-expected loss but beat revenue estimates as sales at its off-price Nordstrom Rack stores surged (Investopedia)

TOGETHER WITH SPROTT

Nickel Could Ride The Wave Of Rising Demand For Clean Energy And EVs

Base metals, particularly nickel, are essential to our modern economy and hold significance in supporting sustained economic growth. Nickel’s versatility is evident in numerous use cases, and most nickel demand historically has been for stainless steel. However, two key trends within today’s economy, clean energy and electrification, have further driven nickel demand in recent years – impacting the demand mix – and are projected to continue doing so in the years to come.

OVERHEARD ON THE STREET

CNBC: The Fed’s preferred inflation measure, the personal expenditures price index, increased 0.2% in April, as expected.

WSJ: Bill Ackman plans to take his investment firm, Pershing Square, public as soon as next year as he looks to capitalize on his new social media fame.

Bloomberg: Delta CEO Ed Bastian said that supply-chain chokepoints that developed in the wake of the pandemic continue to constrain the industry.

Axios: The FDA approved Moderna’s respiratory syncytial virus (RSV) vaccine for older adults today. The company expects to launch the vaccine this fall.

CNBC: In other Big Pharma news… Pfizer announced that its drug for advanced lung cancer has shown promising long-term trial results.

TOMORROW’S TRADE IDEA, TODAY

Oiling the Wheels

Stock Struggles

American staple WD-40 (WDFC) is a miracle worker when it comes to greasing squeaky wheels and preventing rust. Its formula is under lock and key, and the brand is so iconic that experts give it a nearly perfect 98% brand recognition. The company has ridden that recognition to a $3 billion market cap. 

Despite all this, WDFC stock has been slumping, down over 7% this year. Shares fell 8.6% in early April following the company’s earnings call revealing slowing sales. 

Also plaguing the stock is the fact that it currently trades at 40 times 12-month forward earnings. But according to analysts, the high price tag may be worth it.

Lofty Goals

WD-40 has managed to stay popular and profitable for many years, producing consistent earnings and sales growth. The Wall Street consensus is that earnings per share will rise in both FY 2024 and FY 2025, up to $5.89.

On top of that, WD-40 returns 25% on invested capital and has a goal of reaching 55% gross margins by FY 2026. Management sees this materializing with lower supply costs and substantial pricing power. 

The company also continues its stock buybacks, buying $5.3 million worth of shares in 2024 and allocations to repurchase another $45 million worth.

Executing the Plan

According to D.A. Davidson analyst Linda Bolton Weiser, WD-40’s expected EPS growth, solid balance sheet, and growth strategy are cause to be bullish. 

The company’s strategy has included selling off lagging brands such as its US and UK home-care and cleaning products. This move allows it to focus on core business, expanding the uses of its lubricant and marketing it for commercial uses. 

As the company continues to fine-tune and get back to its roots, analysts are confident the stock price will see a boost.

TOGETHER WITH SPROTT

Nickel Could Ride The Wave Of Rising Demand For Clean Energy And EVs

Base metals, particularly nickel, are essential to our modern economy and hold significance in supporting sustained economic growth. Nickel’s versatility is evident in numerous use cases, and most nickel demand historically has been for stainless steel. However, two key trends within today’s economy, clean energy and electrification, have further driven nickel demand in recent years – impacting the demand mix – and are projected to continue doing so in the years to come.

ON OUR RADAR

CNN: China announced that it will restrict exports of aviation and space components to protect the nation’s national security interests.

BBC: All Santander staff and 30 million customers had their confidential information stolen from the same hacking group that hacked Ticketmaster.

CNN: The Department of Labor is suing Hyundai, alleging that the company and two of its suppliers illegally employed a 13-year-old for 60-hour work weeks.

CNBC: The Trump campaign raised a record $34.8 million in donations after the former president was found guilty in his criminal hush money case in New York.

Newsweek: Home sales dropped in April across the four regions of the country, another sign of a struggling housing market due to elevated mortgage rates.