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 ahead of the biggest batch of earnings this quarter. Alphabet, Amazon, Apple, Meta, Microsoft, and more will report this week.

• 📈 | One Notable Gainer: Arm Holdings’ stock added 4.4% on bullish reporting from the likes of Bloomberg and The Motley Fool.

• 📉 | One Notable Decliner: Centene shares shed 4%, giving up some of its sharp gains after Friday’s earnings beat due to Medicaid concerns.

• 💡 | Tomorrow's Trade: You Probably Own Its Products. Should You Also Own Its Stock? Keep scrolling for more or read on our site.

Plus, today’s sponsor outlines why they think this is a winning momentum trade this week…

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MARKET MOVERS

3M, Boeing, Carnival

MMM (+4.5%) / BA (-2.8%) No Quick Fix for 100-Year-Old Industrial Giants That Lose Their Way (Bloomberg)

CCL (+4.8%) Carnival stock sails to 52-week high, reaches $21.92 (Investing.com)

PHG (-16%) / GEHC (-2.8%) Philips Stock Plunges After China Warning. GE HealthCare Is Dropping Too. (Barron’s)

STLD (+4.7%) IFM Investors Pty Ltd Grows Position in Steel Dynamics, Inc (MarketBeat)

OVERHEARD ON THE STREET

NYT: The US economy historically tends to continue to perform in the wake of contentious elections. Could this time be different?

YF: A lackluster quarter for NYCB raised more red flags for the commercial real estate sector.

FT: Salad companies like Sweetgreen and Cava are valued like tech stocks — but their rally may not be sustainable.

CNBC: Shares of Trump Social surged following former President Donald Trump’s campaign rally at Madison Square Garden.

SeekingAlpha: Steep US debt and the conclusion of the BRICS summit could put upward pressure on gold prices.

TOMORROW’S TRADE IDEA, TODAY

You Probably Own Its Products. Should You Also Own Its Stock?

Electrification Capitalization

The world is being electrified, and French-based Schneider Electric (SBSGY) looks well-positioned to capitalize.

This electrical equipment firm may not be a household name stateside, but its products can be found in many American homes. These include circuit breakers, panelboards, and power supplies.

Its market value of nearly $150 billion beats Eaton (ETN) and Honeywell (HON) and its sales are expected to jump 5% in 2024. This is largely due to AI’s electrical needs, but not solely — its products allow for the electrification of just about anything. 

Worth the Price?

Analysts view Schneider as a top-of-the-line electricity play, and evidently, so do many investors. The stock is up around 75% YTD, trading at an expensive multiple of 26 times 2025 estimated earnings.

However, the expensive price tag is in line with other similar industrials, Barron’s points out. And Schneider CEO Peter Herweck said he expects market growth to reach around 7% annually, while forecasting earnings to surpass the average growth rate for industrials.

Herweck hopes to drive some of this growth through acquisitions. This month, Schneider announced plans to purchase a majority stake in Motivair, which provides cooling technologies essential for AI data centers.

Going Green

Schneider is also well-positioned as a sustainable energy company. Its digital technologies are able to generate up to 84% carbon reduction in existing commercial buildings. 

Tech giants like Amazon (AMZN) and Microsoft (MSFT) have recently signed high-profile deals with such companies to power data centers. Schneider may be able to benefit from similar demand moving forward.

JPMorgan (JPM) has given the stock a Buy rating, with a $58 price target for its ADR. This represents around 13% upside from current prices. In other words, Schneider’s high price might still be a discount.

TOGETHER WITH MONEY

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Accident & illness policies, accident coverage, and wellness riders all offer varying degrees of protection. Which one do you need? View our list of the Best Pet Insurance providers to find the best fit for you.

SEE PROVIDERS

ON OUR RADAR

YF: The White House has launched a new student debt relief plan aimed at borrowers at risk of default.

Bloomberg: China filed a diplomatic complaint in response to US weapons sales to Taiwan, escalating tensions over the region.

WSJ: Here’s how the US contributed to Israel’s unprecedented strike on Iran.

FT: US and European hydrogen stock prices are slumping due to lower-than-expected demand, regulatory uncertainties, and increasing investor skepticism.

ABC: Missouri voters are debating a sports betting ballot measure that could make the state the 40th to legalize the practice.

FRIDAY’S POLL RESULTS

Are you bullish or bearish on Live Nation Entertainment (LYV) over the next 12 months?

🟩🟩🟩🟩🟩🟩 🐂 Bullish

🟨🟨🟨🟨⬜️⬜️ 🐻 Bearish

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