🚂 Ride These Stocks for the Long Term

Plus, the shocking number of Gen Zers turning away from stocks.

June 19, 2024

Pencils down, it’s time for lunch. Here’s what you missed this morning:

  • ❌ | Market Snapshot: The US stock market is closed today in observance of Juneteenth.

  • 🗫 | In focus: There was a bevy of commentary from the Fed yesterday, with six regional Fed presidents and governors speaking publicly. Despite all the new commentary, the Fed seems to be singing the same old tune: no one sees a recession, they expect inflation to trend downwards, and they remain in “wait-and-see mode.”

  • 😓 | Noteworthy: According to a recent Bank of America survey, only 14% of Gen Z and millennial investors believe stocks are good for growing wealth, and 72% believe it is no longer possible to achieve above-average returns from stocks and bonds.

  • 🚂 | The Midday Trade: Ride These Stocks for the Long Term. Scroll down for more.

Plus, today’s partner explains the latest developments in AI.

TOGETHER WITH THE RUNDOWN AI

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STREET STATS

MORNING CRYPTO MOVERS

The US stock market may be closed, but cryptocurrencies are still making moves.

ENS (+18%) Ethereum Name Service rose as the SEC clarified Ethereum’s status as a non-security and closed an investigation into securities sales allegations (CS)

CVX (+32%) Convex Finance’s token surged as inflows into the veCRV ecosystem hit the highest level in years (UnchainedCrypto)

MATIC (+5%) Polygon MATIC is recovering after its price recently hit an 8-month low (Beincrypto)

BTC (-0.5%) Bitcoin fell below $65,000 for the first time in more than a month amid concerns about the global economy and lower summer liquidity (CNBC)

JASMY (-6%) JasmyCoin’s price fell today after a recent rally following a rumor of a potential Nvidia collaboration that boosted investor optimism (CoinTurk)

TOP CALLS

Tayasha: Needham Reiterates Buy on Taysha Gene Therapies, Maintains $7 Price Target (Trade It)

Zentalis: Wells Fargo Downgrades Zentalis Pharma to Equal-Weight, Lowers Price Target to $9 (Trade It)

Paycom Software: Citigroup Maintains Neutral on Paycom Software, Lowers Price Target to $162 (Trade It)

Silk: Lake Street Downgrades Silk Road Medical to Hold, Lowers Price Target to $27.5 (Trade It)

Bilibili: JP Morgan Upgrades Bilibili to Overweight, Announces $21 Price Target (Trade It)

Nvidia: Tigress Financial Maintains Buy on NVIDIA, Raises Price Target to $170 (Trade It)

THE MIDDAY TRADE

Risk and Reward

A hallmark of retirement investing is the “buy and hold” strategy. According to Susan Dziubinski of Morningstar, index funds are often the best way to do this, particularly for conservative investors or those nearing retirement, as they provide instant diversification.

However, according to Dziubinski, younger, less risk-averse investors have an opportunity to generate greater returns using a basket of individually selected stocks. The analyst likes undervalued companies with stable cash flows and competitive advantages to provide long-term growth.

Kenvue

Kenvue (KVUE) is one stock that Dziubinski is particularly interested in. The consumer health company spun off from Johnson & Johnson (JNJ) in 2023.

The analyst admits that the industry it competes in is extremely competitive with constantly changing consumer demands. However, she highlighted the fact that Kenvue’s brands are often at the top of their particular market segment. These brands include Tylenol and Listerine.

The firm predicts that its five-year compound annual sales growth will reach 3.1% by 2028. It has given the stock a $25.50 price target.

Nike

Dziubinski also likes Nike (NKE) for retirement portfolios. Like Kenvue, it exists in an incredibly competitive industry but has managed to become the largest athletic apparel brand in the world.

She is confident that Nike will maintain its market share well into the future thanks to its branding, products, and digital strategy. As it stands, Morningstar believes it can remain economically viable for at least the next 20 years with compound average sales growth at 5% over the next 10.

Saving for retirement is a journey, and the younger you are, the more risk you can take on. For those just starting out, these individual stocks could provide excess growth for years to come.

TOGETHER WITH THE RUNDOWN AI

Keep up with AI

How do you keep up with the insane pace of AI? Join The Rundown — the world’s largest AI newsletter that keeps you up-to-date with everything happening in AI, and why it actually matters in just a 5-minute read per day.

SURVEY THE STREET

Last month, California lawmakers advanced 30 new measures in the biggest effort yet to regulate AI technology.

If similar legislation were to be adopted at the federal level, America's attempts to out-innovate foreign competitors could be doomed.

However, Congress recently backed off a recent push for large-scale AI regulation, with House Majority Leader Steve Scalise stating that “there’s no consensus right now.”

Will Sweeping AI Regulations Become Federal Law Before 2026?

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Plus, Yesterday’s Poll + Results:

🟨⬜️⬜️⬜️⬜️⬜️ Yes ✅ 

🟩🟩🟩🟩🟩🟩 No ❌ 

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