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👀 Some Plays for May
One stock has a chance for 95% upside, according to Mizuho.
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 rose Monday. Traders appear to think there is a higher probability of rate cuts this year. Hamas' acceptance of an Egyptian-Qatari cease-fire proposal to end the conflict with Israel also boosted stocks in early afternoon trading.
📈 | One Notable Gainer: Micron Technology shares jumped 5% after Baird upgraded the stock from neutral to outperform citing an attractive valuation.
📉 | One Notable Decliner: Spirit Airlines' stock sunk 10% after posting a loss in the first quarter. The company also warned more pain is ahead.
👀 | Tomorrow's Trade: Some Plays for May. Scroll down for more.
YESTERDAY’S POLL RESULTS
🟩🟩🟩🟩🟩🟩 Bullish
🟨🟨🟨⬜️⬜️⬜️ Bearish
S&P 500 Heatmap. Credit: Finviz
All Stock Heatmap. Credit: Finviz
Global ADR snapshot. Credit: Finviz
MARKET MOVERS
PARA (3%) Sony and Apollo in Talks to Acquire Paramount (NYT) + Warren Buffett Has Sold His Paramount Stock: “We Sold it All, and We Lost Quite a Bit of Money” (THR)
X (4%) US Steel raised at Morgan Stanley with transformation on track even without merger (Seeking Alpha)
MPW (8%) Medical Properties Plunges After Largest Tenant’s Bankruptcy (Tip Ranks)
EH (8%) Morgan Stanley Says Flying Car Maker EHang Has 60% Upside Potential (Investor Place)
BLCO (6%) Morgan Stanley upgrades Bausch + Lomb, cites improving margins (Seeking Alpha)
TOGETHER WITH TRADE SMITH
There's been a lot of buzz surrounding A.I. over the past year…
Most of it is just hype and speculation.
Because it's going to have a very real impact on the lives of everyday Americans...
Billion-dollar fund manager Louis Navellier recently recorded an urgent message going over all the details.
OVERHEARD ON THE STREET
Forex Live: Ken Griffin, who is worth around $40 billion, said a default cycle is going to happen again.
CNBC: Google is laying off at least 200 employees from its “Core” organization, which includes key teams and engineering talent, CNBC has learned. As part of the unit's reorganization, the company will hire corresponding roles in Mexico and India.
Yahoo Finance: Neither New York Fed president John Williams nor Richmond Fed president Thomas Barkin raised the prospect of rate hikes while speaking Monday, offering more assurances to investors who are still hoping for rate cuts from the central bank in 2024.
AP: Former Starbucks CEO Howard Schultz says the company’s leaders should spend more time in stores and focus on coffee drinks as they work to turn around flagging sales.
Front Office Sports: All-sources wagering for the Kentucky Derby Day program reached a record of $320.5 million, up 11% from last year’s mark that also had been a record.
TOMORROW’S TRADE IDEA, TODAY
A Few New Faces
Mizuho Financial Group (MFG) recently released a list of top stock picks as we head into May. The list features three newcomers and some repeat A-listers.
The list consists of 24 stocks across six sectors of the economy. The new faces include Universal Health Services (UHS), EyePoint Pharmaceuticals (EYPT), and Block (SQ).
Nvidia (NVDA), Microsoft (MSFT), and Amazon (AMZN) also kept their spots on the list.
Universal Health
UHS shares are up over 8% this year, and Mizuho has given it a price target of $200. That’s over a 17% upside from Thursday’s closing price.
Mizuho’s coverage is more bullish than other firms, with its price target being around 5% more than the Wall Street consensus.
According to Mizuho analyst Ann Hynes, the company’s earnings are set to see a boost from progressing premium labor trends and a better service mix.
The analyst also believes both its Acute Care and Behavioral Health divisions will see an increase in margins over the next two years as demand increases and labor pressures slow down.
Eyepoint Pharmaceuticals
Eyepoint Pharmaceuticals was the firm’s number-one May pick. Mizuho believes the stock has a 95% upside from Thursday’s close, with a price target of $39 per share.
According to analyst Graig Suvannavejh, the company’s biggest asset, an implant called Duravyu, will serve as a major tailwind throughout 2024. He believes this product has the potential to become the norm when it comes to treating retinal diseases.
Shares are down over 12% year-to-date, but Mizuho is optimistic.
As May rolls along, these stocks could provide investors with an opportunity for gains.
TOGETHER WITH TRADE SMITH
There's been a lot of buzz surrounding A.I. over the past year…
Most of it is just hype and speculation.
Because it's going to have a very real impact on the lives of everyday Americans...
Billion-dollar fund manager Louis Navellier recently recorded an urgent message going over all the details.
ON OUR RADAR
The Hill: Almost 40 percent of renters do not believe they will ever own a home, a double-digit increase from last summer, when 27 percent of respondents said the same.
Forbes: Between 2013 and 2023, Indians immigrating to Canada rose from 32,828 to 139,715, an increase of 326%.
CNBC: The number of households that live above the poverty line but are barely scrapping by is ticking higher. Currently, nearly 40 million families are defined as ALICE, which stands for Asset Limited, Income Constrained, Employed.
BBG: Robinhood, which is best known for stock trading, said on Monday that the SEC's enforcement staff had sent the firm a Wells notice, indicating that it made an initial determination to recommend enforcement action.
BI: Cathie Wood's Ark Invest has destroyed $14 billion in wealth over the past decade.
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