NVDA Fever ❤️🔥, M&A, Stock Picks and Market Moves 📈
This edition of Investing Intel highlights chosen stock picks, top investment news, and major discussions of the week.
Market Snapshot (Past Week)
S&P500: $5,088.80 (+1.15%)
Dow Jones Industrial Average: $39,131.53 (+1.31%)
Nasdaq Composite: $15,996.82 (+1.37%)
Russell 2000: $2,016.69 (-0.79%)
S&P/TSX Composite Index: $21,413.15 (+0.75%)
PHLX Gold and Silver Sector: $106.72 (-1.04%)
The Biggest Investing Stories From the Last 7 Days
Explore the latest investing highlights, covering top financial stories from the past week.
🐂 Nvidia Sparks Bullish Bets
Options trading soars as Nvidia's NVDA 0.00%↑ impressive earnings report ignites demand for bullish bets and validates investment strategies, enticing retail investors.
Nvidia's Earnings Report Sparks Bullish Bets —>
💳 Capital One Buys Discover
Capital One COF 0.00%↑ and Discover DFS 0.00%↑ merge in a $35B deal, creating a credit card giant that shakes up the industry.
Capital One Buys Discover for $35bn Creating Top US Credit Card Firm —>
🛒 Walmart’s Strong Q4
Walmart's WT 0.00%↑ Q4 success with sales, margins, and earnings, along with market share gains and e-commerce growth, presents signals for retail investors.
Walmart Exceeds Expectations with Strong Q4 Performance —>
📱Rapid Market Adoption
Casual gaming app redefines mobile entertainment, reaching 2.5M app downloads within 4 months and setting new benchmarks.
Entertainment Unleashed: 2.5 Million Rapid App Downloads —>
🛢️ BHP Profits
BHP Group BHP 0.00%↑ reports strong profits, record-breaking copper production, and positive long-term outlook.
BHP Group Reports Strong Profits and Dividend in First Half of 2024 —>
💼 OXY’s Pipeline Sale Initiative
Occidental OXY 0.00%↑ explores the sale of Western Midstream, a US pipeline operator, to alleviate debt and capitalize on industry consolidation.
Occidental Petroleum Explores Sale of Western Midstream Partners —>
🚀 Reddit IPO
Reddit gears up for a landmark IPO in March, navigating a dynamic ad market.
Reddit Eyes Public Debut, Plans IPO in March —>
PRESENTED BY QYOU MEDIA
India's Youth Surge Fuels Digital Explosion
QYOU Media Inc. (TSXV: QYOU) (OTC: QYOUF) is a unique entertainment business offering retail investors a chance to invest in India’s exciting growth opportunity. Ample public market evidence backs the conviction that India's financial landscape will one day mirror China's meteoric rise over the past two decades. Therefore, QYOU’s current positioning in India strategically locates it to capitalize on this impending growth. US-based QYOU’s experienced and connected leadership team is aligned with shareholder goals.
Explore this Growth Opportunity Now —>
Hot Topics
This week, the US will report the core PCE deflator, expected to rise by 0.4%. The eurozone will also release inflation and unemployment data, which could influence the ECB's decision on potential rate cuts later this year. We can also expect earnings reports from Lowe's LOW 0.00%↑, Icahn Enterprises IEP 0.00%↑, and Anheuser-Busch InBev BUD 0.00%↑ among others.
Nvidia Gains: Nvidia NVDA 0.00%↑ experienced the largest one-day stock market gain in history, adding $277 billion following a stellar quarterly report. The surge, driven by optimism about artificial intelligence, saw Nvidia's stock soar 16.4% to a record high. The company's dominance in the AI chip market and strong demand fueled its remarkable growth. However, concerns linger about U.S. restrictions on chip sales to China and the rapid pace of Nvidia's gains, prompting investor caution. Despite mixed analyst reactions, Nvidia remains a key player in the market, attracting significant attention and investment.
Index Reshuffle: Amazon AMZN 0.00%↑ replaces Walgreens WBA 0.00%↑ in the DJIA, reflecting shifts in retail. Walmart's WMT 0.00%↑ stock split led to this change, but Walmart remains. In the DJTA, Uber UBER 0.00%↑ replaces JetBlue JBLU 0.00%↑ for better representation of the ride-sharing industry. Adjustments to the indices' divisors ensure accurate reflection of the U.S. stock market. AMZN Joins Dow Jones Industrial Average (DJIA), Replacing WBA Stock
401(k) Reckoning: The future of 401(k) plans is under scrutiny, with growing intellectual and political support for ending their tax-advantaged status. As the government looks for new revenue sources, the fate of these retirement savings vehicles, used by 56% of US workers, is increasingly uncertain, raising questions about how Americans will save for retirement without them. Your 401(k) Will Be Gone within a Decade.
Central Banks: Federal Reserve officials highlight risks of easing too soon, with Goldman Sachs now predicting rate cuts in June, not May. The People's Bank of China favors unexpected rate adjustments to lift confidence, while the ECB's Holzmann doesn't foresee cuts before the Fed. Reserve Bank of India minutes show no plans for reducing rates, underscoring a global trend towards caution in monetary easing.
Energy Sector: The Department of Energy (DOE) reported a lower-than-expected increase in crude inventories, signaling tighter oil supply conditions. Meanwhile, the Environmental Protection Agency (EPA) has issued a final rule permitting certain states to sell gasoline blended with 15% ethanol throughout the year, a move likely to impact fuel markets and corn demand. Additionally, Iraq has reopened its North Refinery in Baiji, which was closed for a decade, adding 150,000 barrels per day (bpd) of refining capacity back into operation.
LNG Demand: Global demand for liquefied natural gas (LNG) is expected to surge over 50% by 2040, driven by China's shift from coal to gas in its industrial sector and increased LNG usage in South Asian and Southeast Asian countries to fuel their economic expansion according to Shell.
VTM Stock Picks
This week, VTM's stock screeners have identified several promising stocks, with a focus on value, growth, and dividend potential.
💎 Value Stock Picks 💎
Valero Energy Corporation (NYSE: VLO)
P/E Ratio: 5.7
PEG Ratio: N/A
Valero Energy VLO 0.00%↑ exhibits a low P/E ratio, signaling undervaluation, coupled with a robust dividend yield. Its significant number of buy ratings and a consensus overweight rating suggest strong market confidence. Moreover, the forward-looking indicators are positive, highlighting expected growth or revaluation.
Ternium S.A. Sponsored ADR (NYSE: TX)
P/E Ratio: 10.7
PEG Ratio: 0.9
Ternium S.A. TX 0.00%↑ stands out as a value stock due to its low P/E ratio combined with a competitive PEG ratio, indicating strong earnings growth potential relative to its price, alongside a high dividend yield of 7.3%, making it an attractive pick for value investors. Ternium S.A. reported strong operating results in Q4 2023, with notable growth in Mexico's steel shipments and a proposed annual dividend increase, despite challenges in Argentina and the consolidation of Usiminas' operations impacting its financial performance.
Albemarle Corporation (NYSE: ALB)
P/E Ratio: 9
PEG Ratio: N/A
Albemarle Corporation ALB 0.00%↑ stands out for its strong buy ratings and a relatively low P/E ratio, indicating favorable analyst sentiment and potential undervaluation. Its dividend yield and price to book value further solidify its position as a value investment.
🚀 Growth Stock Picks 🚀
Camping World Holdings, Inc. Class A (NYSE: CWH)
ROE: 24.9%
Mean Sales Growth Rolling 12 Months: 0.5%
Camping World Holdings CWH 0.00%↑ showcases impressive EPS growth, which signals its ability to increase profitability. Although its sales growth is modest, the company's substantial ROE suggests it efficiently utilizes its equity. These factors, combined with its position in consumer cyclicals, make it a promising choice for those seeking growth opportunities.
TopBuild Corp. (NYSE: BLD)
ROE: 31.7%
Mean Sales Growth Rolling 12 Months: 7%
TopBuild Corp. BLD 0.00%↑ demonstrates robust performance across all key growth metrics. Its high return on equity indicates effective use of investor capital, while solid EPS and sales growth over the last year highlight its strong growth potential. These characteristics position it well for future growth, making it a compelling option for investors looking for dynamic growth stocks.
🏦 Dividend Stock Picks 🏦
AbbVie, Inc. (NYSE: ABBV)
Dividend Yield: 10%
Dividend Payout Ratio: 220.3%
AbbVie, Inc. ABBV 0.00%↑ offers a high dividend yield, making it an attractive choice for those seeking income. However, its higher payout ratio suggests investors should watch for sustainability.
Energy Transfer LP (NYSE: ET)
Dividend Yield: 8.5%
Dividend Payout Ratio: 113%
Energy Transfer ET 0.00%↑ provides a robust dividend yield with a payout ratio that is within a range that may be considered by those looking for significant income potential.
VICI Properties Inc (NYSE: VICI)
Dividend Yield: 5.5%
Dividend Payout Ratio: 65.1%
VICI Properties VICI 0.00%↑ emerges as a solid investment for those focusing on real estate. Its attractive dividend yield, paired with a reasonable payout ratio, suggests a good balance between income generation and dividend sustainability.
Top Reads
🧑🤝🧑 Google’s attempts to subvert racial and gender stereotypes created new problems. It has now paused Gemini’s ability to generate AI images of people.
🍄 These athletes suffered life-changing injuries. Then, they turned to psychedelics.
🤪 OpenAI’s ChatGPT Went Completely Off the Rails for Hours. The Daily Beast reports it’s lost its mind.
🌱 The environmental toll of Generative AI is skyrocketing, yet much of it remains concealed from public view. A groundbreaking US bill aims to tackle the environmental repercussions of this technology, signaling a crucial step forward.
🎥 Even before its public release, OpenAI's Sora artificial intelligence video model has captured widespread attention, marking it as a standout AI breakthrough of the year.