🔥 Stock Picks and Market Moves: End-of-Year Insights Inside

This edition of Investing Intel brings you exclusive stock picks, top investment stories, and the week's hot topics.

Dec 18, 2023

Market Snapshot (Past Week)

S&P500: $4,719.19 (2.74%)
Dow Jones Industrial Average: $37,305.16 (2.90%)
Nasdaq Composite: $14,813.92 (3.30%)
Russell 2000: $1,985.13 (5.61%)
S&P/TSX Composite Index: $20,529.15 (1.10%)
PHLX Gold and Silver Sector: $123.76 (6.38%)

The Biggest Investing Stories From the Last 7 Days

This week, we’ve got insights into Google’s unexpected loss to Epic Games, Tesla's massive recall, Adobe Inc.'s cautious AI integration outlook, and significant shifts in advertising strategies by top U.S. corporations. Let's delve into the details.

🙄 Google’s Big Loss

Discover how Google's GOOGL 0.00%↑ recent antitrust lawsuit loss against Epic Games is reshaping the tech landscape and what it means for your investments in Alphabet stock.

Epic Games Win Stirs Uncertainty for Alphabet Stock —>

🏎️💨 Tesla Recalls Over 2 Million Vehicles

Tesla TSLA 0.00%↑ is recalling over two million vehicles in the United States to install new safeguards in its Autopilot system. This action follows safety concerns from the National Highway Traffic Safety Administration (NHTSA) related to driver engagement with Autopilot. Tesla's handling of this issue could impact its stock valuation and market position.

Tesla Recalls Over 2 Million Vehicles for Autopilot Safeguards —>

💉 Zepbound Study Hits LLY Stock

Eli Lilly's LLY 0.00%↑ weight-loss drug Zepbound led to substantial weight regain in patients nearly a year after they stopped treatment. This finding comes from a study published in the journal JAMA, showing a 14% weight regain in obese patients without diabetes after switching from an eight-month course of Zepbound to a placebo.

Eli Lilly's Zepbound Shows Short-Lived Weight Loss Benefits —>

⚠️ Adobe's Cautious AI Outlook

Adobe Inc. ADBE 0.00%↑ has forecast a slower-than-expected revenue contribution from generative AI for 2024, causing investor disappointment. This situation is crucial for retail investors, given the 2023 hype around AI investments.

ADBE Stock Dips on Cautious 2024 Outlook Despite AI Push —>

💸 Meta Benefits from Corporate Ad Spend Shift

Leading U.S. corporations, including Disney DIS 0.00%↑ and Comcast CMCSA 0.00%↑, have increased their investment in Instagram and other social media platforms since leaving Elon Musk’s X. This change in advertising strategies reflects on brand image and consumer perception, and signals market trends in social media advertising.

DIS, CMCSA Shift Ad Spend from X to Instagram, Snapchat —>

PRESENTED BY QYOU MEDIA

India's Youth Surge Fuels Digital Explosion

QYOU Media Inc. (TSXV: QYOU) (OTC: QYOUF) is an India-focused entertainment business that combines social media stars with a wide-reaching network of television channels. QYOU’s experienced and connected leadership team anticipates significant opportunities in India's future and is determined to seize them. If you’re looking for investing ideas in the media and entertainment industry, this is one stock you want on your radar.

Explore this growth investing opportunity —>

Hot Topics

Rate Pivot: The Federal Reserve has indicated potential rate cuts next year, sparking varied reactions. Central banks like the ECB and the Bank of England maintain a cautious stance, highlighting ongoing inflation concerns. This has resulted in a mixed response in global markets, characterized by optimism driven by expectations of disinflation. However, there are also worries about the possibility of market overvaluation and uncertainties surrounding earnings.

Inflation: In November, the U.S. Consumer Price Index (CPI) rose 3.1% year-over-year and edged up 0.1% from the previous month, aligning with economists' expectations. The stock market continues to rally, indicating a shift in investor sentiment towards economic data compared to last year.

US vs China: China's focus on industrial policy and efforts to manage its property sector liquidity crisis have drawn attention. The country is experiencing a unique demographic shift with a growing exodus of millionaires, contrasted by the return of ultra-wealthy youth. Additionally, China's progress in semiconductor technology has escalated tensions with the U.S., particularly in terms of export controls. These developments have notably strained U.S.-China relations.

Bond Market Movements: U.S. bond yields unexpectedly fell amid higher inflation, influenced by the Treasury's decision to complete bond issuances early before the Federal Reserve's policy decision.

Gold: Investor optimism for long-term gold price increases due to supply and demand factors is countered by near-term challenges from China's market influence and major banks' bearish outlooks.

Investing Signals - VTM Stock Picks

This week we’re introducing VTM stock picks. From our stock screeners here we present some hot stock contenders for value, growth and dividends:

💎 Value Stock Picks 💎

New York Community Bancorp Inc (NYSE: NYCB)

P/E Ratio: 2.8
PEG Ratio: 0.3

New York Community NYCB 0.00%↑ stands out with its exceptionally low PE and PEG ratios, indicating significant undervaluation. A high dividend yield is also attractive, making it a compelling choice for value investors.

Explore this value investing opportunity in more depth —>

PVH Corporation (NYSE: PVH)

P/E Ratio: 11.3
PEG Ratio: 0.8

Calvin Klein and Tommy Hilfiger parent PVH Corp. PVH 0.00%↑ presents as a strong value stock pick due to its attractive P/E and PEG ratios, signaling undervaluation compared to industry peers, along with recent upgrades and positive analyst sentiments focusing on its strategic initiatives, margin improvement, and inventory management.

Southwestern Energy Company (NYSE: SWN)

P/E Ratio: 9.9
PEG Ratio: 0.5

Southwestern Energy Company SWN 0.00%↑ is a promising value stock with a PEG ratio of 0.5, suggesting growth potential. Its 'Overweight' analyst rating and a P/E ratio of 9.9 indicate good earnings potential at its current price. The P/B value at 1.5 shows reasonable valuation relative to assets. High interest from institutional investors and hedge funds reflects confidence in its future in the energy sector.

🚀 Growth Stock Picks 🚀

Bird Construction Inc. (TSX: BDT)

ROE: 22.9%
EPS Growth: 41.4%

Bird Construction stands out as a growth stock due to its robust return on equity (ROE) of 22.9%, which indicates efficient management and profitable business operations. Furthermore, its impressive EPS growth of 41.4% signals strong earnings potential, making it an attractive choice for investors seeking growth in the industrials sector.

Installed Building Products, Inc. (NYSE: IBP)

ROE: 50.2%
EPS Growth: 11.4%

Installed Building Products IBP 0.00%↑ showcases exceptional growth potential, highlighted by its extraordinary ROE of 50.2%. This high ROE reflects its effectiveness in generating profits from its investments. Additionally, a steady EPS growth of 11.4% suggests a consistent increase in profitability, rendering it a compelling growth stock in the industrials domain.

Vipshop Holdings Ltd Sponsored ADR (NYSE: VIPS)

ROE: 22.3%
EPS Growth: 44.4%

Vipshop Holdings VIPS 0.00%↑ , a Chinese company that operates the e-commerce website VIP.com specializing in online discount sales, demonstrates strong profitability and earnings growth. It stands out in the consumer non-cyclicals sector as a compelling growth stock. However, China’s economy is on shaky ground, adding risk to investing in Chinese stocks.

🏦 Dividend Stock Picks 🏦

B2Gold Corp. (TSX: BTO)

Dividend Yield: 5.1%
Dividend Payout Ratio: 68.4%

B2Gold Corp, stands out as a dividend stock pick due to its attractive dividend yield combined with a conservative dividend payout ratio. A low P/E ratio and strong EPS growth further enhance its appeal, indicating potential for both income and capital growth in the non-energy materials sector.

Essential Properties Realty Trust, Inc. (NYSE: EPRT)

Dividend Yield: 4.4%
Dividend Payout Ratio: 108.7% (suggests a strong commitment to dividends, though it's above 100% indicating potential pressure on future payments)

EPRT EPRT 0.00%↑ offers a solid dividend yield and a significant EPS growth rate. A strong buy analyst consensus and its position in the finance sector add to its appeal as a potential income-generating investment.

Essential Utilities, Inc. (NYSE: WTRG)

Dividend Yield: 3.4%
Dividend Payout Ratio: 62.7%

Essential Utilities, Inc. WTRG 0.00%↑ stands out as a strong dividend stock due to its consistent dividend yield of 3.4% and robust return on equity at 8.9%. Essential Utilities has been investing to improve its regulated water and natural gas infrastructure systems and to enhance customer service across its operations. It also continues to expand operations through acquisitions.

Stocks Trending on Google Search

Google Search trends are a good indicator of investor trends and interests and a good indicator of stocks you should research to see why they are popular and whether this is a good investment for you.

Antora Energy Stock

Private Company

Google Search Interest: +1,150%

Bill Gates-backed startup Antora Energy is in focus after a CNN report highlighted its exciting thermal storage technology. Antora is exploring the use of graphite, a cost-effective and widely available material with exceptional heat retention capabilities, to enhance energy storage efficiency in its insulated boxes and molten salt cylinders.

Costco Stock Dividend

Google Search Interest: +750%

Costco Wholesale Corporation COST 0.00%↑, after reporting better-than-expected Q1 earnings and significant financial growth, declared a notable special dividend of $15 per share, reflecting its robust financial health and commitment to shareholder value.

Read all about it here COST Stock Surges Post-Earnings Beat —>

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