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🛍️ The Pros' Picks
Plus, Elon Musk's latest beef with OpenAI
Pencils down, it’s time for lunch. Here’s what you missed this morning:
🟥 | Market Snapshot: US stocks fell as investors become increasingly worried that the Fed will not cut interest rates at all this year.
🗞️ | In focus: Wall Street is going to be hit with two major pieces of economic news tomorrow: May’s Consumer Price Index and the Fed’s monetary policy update. CPI reports and Fed policy meetings have only fallen on the same day seven times since 2014, making for a potentially bearish double whammy.
❗| Noteworthy: Elon Musk sees a threat on the horizon from the new partnership between Apple and OpenAI. Musk took to X, saying that he would ban all Apple devices at his companies and claiming OpenAI integration is an “unacceptable security violation.”
🛍️ | The Midday Trade: The Pros’ Picks. Scroll down for more.
Plus, today’s partner can give you the details on crypto’s hidden gem.
TOGETHER WITH PROSPERITYPUB
You’ve probably heard from a number of “crypto gurus” about how we’re at the cusp of what could be the greatest crypto bull run in history.
With quotes like that flying around, we’re not surprised that’s the case. But you see… You might not actually want to buy Bitcoin this time around.
That’s because there’s a better way to take advantage of this new bull market… One market expert calls it Crypto’s Hidden Gem
And it’s a new way that has given folks the chance to see bigger and faster moves than the traditional way of buying Bitcoin…
STREET STATS
MORNING MOVERS
AAPL: Apple’s stock popped to an intraday record as investors become more optimistic about its new AI platform, Apple Intelligence (YF)
GM: Shares of General Motors rose after the company’s board approved a new $6 billion share buyback authorization (CNBC)
SHOP: Shopify’s stock after JPMorgan gave it an Overweight rating due to the company’s competitive advantages and margin expansion opportunities (YF)
AFRM: Buy now, pay later (BNPL) company Affirm saw its stock rise after announcing its BNPL loans will be embedded into Apple Pay this year (CNBC)
TSLA: Shares of Tesla slipped ahead of the company’s shareholder vote on whether to reapprove Musk’s compensation package valued at $46 billion (YF)
TOP CALLS
First Horizon: Keefe, Bruyette & Woods Maintains Outperform on First Horizon, Maintains $18 Price Target (Trade It)
Nvidia: Goldman Sachs Maintains Buy on NVIDIA, Raises Price Target to $135 (Trade It)
Oculis Holding: Chardan Capital Reiterates Buy on Oculis Holding, Maintains $30 Price Target (Trade It)
Bravo Mining: BMO Capital Maintains Outperform on Bravo Mining, Raises Price Target to C$6.5 (Trade It)
Yext: DA Davidson Maintains Neutral on Yext, Lowers Price Target to $5.5 (Trade It)
ARM Holdings: Goldman Sachs Maintains Buy on ARM Holdings, Raises Price Target to $143 (Trade It)
THE MIDDAY TRADE
Burlington Stores
TipRanks, which ranks analysts by past performance, has identified three stocks that high-performing analysts are bullish on.
The first is Burlington Stores (BURL), which recently reported solid Q1 earnings. As a result, it raised both its profit margin and earnings expectations for the remainder of FY2024.
Corey Tarlowe of Jefferies highlighted the store's solid gross and operating margins, as well as its inventory, as tailwinds to its strong earnings. The analyst believes its margin runway is not currently priced into its share price, which creates a buying opportunity. He also expects the stock to benefit from the trend of consumers moving away from department stores.
Amazon
Amazon (AMZN) also made the list following a strong Q1 that saw revenue growth and cost reduction. Tigress Financial analyst Ivan Feinseth likes its generative AI business, multi-industry dominance, and strong brand equity.
Feinseth predicts that Amazon Web Services will see sustained growth as businesses increasingly utilize generative AI. He also expects a rise in the amount of LLMs built on the platform.
The analyst also cited its strong balance sheet and cash flows as cause to be bullish, as they allow it to make significant investments to drive growth.
PagerDuty
Digital operations management platform PagerDuty (PD) rounds out the list, despite recently missing revenue expectations.
RBC Capital analyst Matthew Hedberg gave the stock a buy rating, citing its 10% growth in ARR and 11% increase in billings. The company’s management expects ARR growth to continue expanding in the second half of its FY 2025, thanks to multi-year deals.
The analyst is also confident in its federal business, given that the Department of Veterans Affairs granted it an ATO and closed its first public sector seven-figure deal.
For investors interested in what the pros are doing, these stocks were singled out by analysts with a proven track record of success.
TOGETHER WITH PROSPERITYPUB
You’ve probably heard from a number of “crypto gurus” about how we’re at the cusp of what could be the greatest crypto bull run in history.
With quotes like that flying around, we’re not surprised that’s the case. But you see… You might not actually want to buy Bitcoin this time around.
That’s because there’s a better way to take advantage of this new bull market… One market expert calls it Crypto’s Hidden Gem
And it’s a new way that has given folks the chance to see bigger and faster moves than the traditional way of buying Bitcoin…
SURVEY THE STREET
At the start of this year, many economists predicted as many as six or seven rate cuts from the Fed.
Those predictions have moderated substantially, with very few analysts and investors expecting the Fed to lower rates during Wednesday’s FOMC meeting.
However, everyone will still be looking to the Fed’s statements this week for clues on when and how many times the central bank will cut its key rate this year.
✂️ Number of Fed Rate Cuts for this Year |
Plus, Yesterday’s Poll + Results:
🟩🟩🟩🟩🟩🟩 Yes ✅
🟨🟨🟨🟨🟨⬜️ No ❌
What did you think of today's edition? |
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