I understand that there are concerns on the regulatory front. Furthermore, I understand that competition has intensified and some cannabis companies continue to burn cash. Even with these facts, the sector looks attractive.

Encouragingly, the cannabis market is growing in the United States even without federal-level legalization. More than 50% of states have legalized cannabis. In fact, the market is forecasted to be worth $71 billion by 2030 without legalization. And of course, the European market has big potential in the recreational as well as medicinal cannabis segment.

I believe the concerns are therefore overdone, and I would look to buy some quality cannabis stocks for robust returns. Let’s look at three together.

Curaleaf Holdings (CURLF)

Curaleaf Holdings (OTCMKTS:CURLF) is among my top picks for the potential multibagger stocks within the cannabis sector. It’s worth noting that for year-to-date (YTD), CURLF stock has declined by 12%. The stock seems resilient at oversold levels, and I expect a breakout on the upside.

It’s worth noting that Curaleaf has not reported stellar revenue growth. For Q3 2023, revenue increased by 2% on a year-on-year (YoY) basis to $333 million. However, the big positive is an adjusted EBITDA of $75 million and operating cash flows of $47 million.

Encouragingly, the company has indicated “a strong end to 2023 and an exciting 2024.” And with their expanding presence in Europe, there is a strong case for growth acceleration.

I also like the fact that Curaleaf has a strong presence in the U.S. With a focus on research and development, the company is likely to create value without federal-level legalization. This is a surefire pick for my list.

Tilray Brands (TLRY)

Tilray Brands (NASDAQ:TLRY) is another stock that I would hold for multibagger returns in the next few years. While the stock has corrected by 50% in the last 12 months, I believe that positive business developments in 2024 will be a catalyst for stock upside.

Through multiple acquisitions, Tilray has established itself as the fifth largest craft brewer in the United States. And the craft beer market is expected to grow at a CAGR of 7.2% through 2030. The diversification is likely to support growth and create value. Furthermore, the company has a strong strategic infrastructure in the U.S. and can expand aggressively in a federal level cannabis legalization scenario.

The good news is that Tilray has reported international cannabis revenue growth of 37% on a YoY basis for Q1 2024. Led by a strong presence in Canada, the company’s international sales seem to be gaining traction.

Tilray has also guided for positive adjusted free cash flow for the 2024 financial year. As financial metrics improve coupled with growth acceleration, TLRY stock is likely to surge higher from undervalued levels.

Cronos Group (CRON)

Cronos Group (NASDAQ:CRON) is an undervalued cannabis stock that’s I think is likely to breakout on the upside. In the last six months, CRON stock has trended higher by 16%. I expect this positive momentum to sustain backed by fundamentals.

An obvious positive is the fact that Cronos has $840 million in cash and equivalents. For context, that’s more than the company’s market valuation. In a federal level legalization scenario, Cronos will have flexibility to aggressively pursue organic and acquisition driven growth. For now, Cronos seems to be holding back its resources and is in a wait-and-watch mode.

Another positive from a financial perspective is that Cronos expects net change in cash to be positive in 2024. With respect to cost cutting, the company has been successful in improving key margins. Once growth accelerates, operating leverage will drive significant EBITDA margin expansion. I must add that the Company’s focus on research driven medicinal cannabis products is likely to create value in the next five years.

On the date of publication, Faisal Humayun did not hold (either directly or indirectly) any positions in the securities mentioned in this article. The opinions expressed in this article are those of the writer, subject to the InvestorPlace.com Publishing Guidelines.

Faisal Humayun is a senior research analyst with 12 years of industry experience in the field of credit research, equity research and financial modeling. Faisal has authored over 1,500 stock specific articles with focus on the technology, energy and commodities sector.

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The robust economic growth is beneficial for the travel industry, as increased consumer confidence and spending power translate into higher demand for tourism services. With a flourishing economy, investors should purchase these three travel technology stocks for long-term gains as they travel in the years to come.

Alphabet Inc. (GOOG, GOOGL)

You’ve probably heard of Alphabet Inc. (NASDAQ:GOOG, NASDAQ:GOOGL), the largest technology company through its primary international business Google. Notably, GOOGL is up 54.6% year-to-date (YTD) thanks largely to its product announcements, which brings us to the Pixel Watch 2.

In 2022, the wearable technology industry was valued at $61.3 billion. Currently, the 2023 figure is projected to reach $71.91 billion and $186.14 billion in 2030 from a 14.6% CAGR. Released in October, the Pixel Watch 2 is Google’s latest smartwatch and boasts enhanced processing power, additional sensors, and a significantly extended battery life. These are significant improvements compared to its predecessor, the Pixel Watch 1. Promisingly, critics have lauded the sleek design and noted substantial improvements in the operating system and overall performance.

As mentioned, the company’s financials were successful in Q3 2023. Revenue in Q3 was $76.69 billion, growing 11% year-over-year (YoY). Additionally, net income and diluted EPS also grew 41.55% and 46.23% YoY, respectively. Topping it all off, the company surpassed industry projections for EPS and revenue by 7% and 1%, respectively.

Looking ahead, the advancements of the Pixel Watch 2 position the watch as a formidable competitor to industry giants such as Apple. The mainstream upgrades have effectively elevated Google’s wearable technology to meet and even surpass industry standards. And with strong financials to back its growing list of wearable tech, GOOGL is a stock worth purchasing based on its recent product developments and strong financials.

General Motors (GM)

General Motors (NYSE:GM) is an American automotive manufacturing company responsible for notable brands such as Buick, Cadillac, and Chevrolet. Despite GM declining 15.67% YTD, growth prospects elevate GM to be a growth stock. 

Valued at $3.3 trillion in 2022, the automotive industry holds a lucrative standing with growth prospects in future years. Thanks to a projected 8-year CAGR of 7%, the industry is projected to reach $6.1 trillion in 2030.

GM currently possesses a 17.09% market share in 2022 of the industry and is primed for growth. In Q3 alone, it reported $44.13 billion in revenue marked a 5.35% YoY increase, beating earnings estimates by 2.03%. Additionally, net income and EPS were reported at $3.06 billion and $2.20 respectively, marking net increases for both. 

With recent advancements in autonomous driving technology, General Motors is strategically positioning its Cruise model to lead in the autonomous vehicle market. The company is poised to achieve significant success, with projected annual revenue reaching $1 billion by 2025. The commitment to success is evident in recent strategic decisions, including a change in Cruise’s leadership to stay at the forefront of the autonomous vehicle landscape. 

With these reasons and more from recent advancements, GM is a stock worth a investing in for the long-term.

United Airlines Incorporated (UAL)

With 924 aircrafts in operation, United Airlines Incorporated (NASDAQ:UAL) is the third-largest commercial fleet in the world. Impressively, UAL stock is up 7.55% YTD, indicating a trend of healthy growth. Analysts predict the bullish trend will continue, with average 12-month price targets to be $59.75.

The commercial aviation industry is forecasted to have a CAGR of 7.65% from 2023 to 2028. The most prominent driver of growth is the demand for travel, as tourism accounts for 7.6% of the world’s GDP and long-distance travel is essential to the general population.

After a revenue decrease of 64.50% in 2020 in response to Covid-19, revenue in 2022 increased by 82.49% from $24.6 billion to $44.9 billion. Free cash flow has also witnessed an extreme increase.

United Airlines’ ability to take advantage of the demand for travel is proving to be a key catalyst for the company’s growth. Recently, the company has ordered 110 new aircrafts starting in 2028, which ensures the company’s long-term growth. Additionally, United is upgrading its flights, upping both quantity (offering more flights than ever before) and quality, by incorporating technology like Bluetooth and adding amenities to flights.

Overall, United Airlines is a great travel stock to buy because of its strong financial record and its position for both long and short-term growth.

On the date of publication, Michael Que did not have (either directly or indirectly) any positions in the securities mentioned in this article. The opinions expressed in this article are those of the writer, subject to the InvestorPlace.com Publishing Guidelines.

The researchers contributing to this article did not hold (either directly or indirectly) any positions in the securities mentioned in this article.

Michael Que is a financial writer with extensive experience in the technology industry, with his work featured on Seeking Alpha, Benzinga and MSN Money. He is the owner of Que Capital, a research firm that combines fundamental analysis with ESG factors to pick the best sustainable long-term investments.

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Yet waiting for biotech stocks to blossom fully means missing out on substantial gains. Predicting the victor in this field is similar to finding a needle in a haystack. That said, there’s wisdom in casting a wider net. Investing across the spectrum increases the odds of striking gold. Even a single triumph can offset a myriad of setbacks. Now is the time to explore these opportunities before the market fully recognizes their incredible potential.

Crispr Therapeutics (CRSP)

Crispr Therapeutics (NASDAQ:CRSP) is on the cusp of a groundbreaking moment. With the U.S. Food and Drug Administration’s advisory vote’s nod of approval for its innovative sickle cell disease treatment, the optimism remains high for the final FDA decision. The advisory panel’s minimal safety concerns and the therapy’s impressive efficacy in trials hint at a potential game-changer for patients. All eyes are now on the Dec. 9 Prescription Drug User Fee Act (PDFUA) date, marking a critical moment for CRISPR’s future.

Standing distinct in the biotech landscape, CRISPR Therapeutics shines with its gene editing capabilities. Despite the weight of regulatory scrutiny and the cost of intensive research and development (R&D), the company’s pioneering technology is likely to redefine healthcare. The anticipation is building with the FDA’s critical review of the sickle cell therapy exa-cel looming on Dec. 8.

Arcellx (ACLX)

Arcellx (NASDAQ:ACLX) is revolutionizing the battle against multiple myeloma, a common blood cancer, through offering its innovative CAR T-based treatment, CART-ddBCMA. The treatment has shown incredible promise in a Phase 1 study, where all 38 patients treated with CART-ddBCMA experienced improving conditions. Impressively, 71% of these patients exhibited no trace of cancer post-treatment, with the breakthrough placing the firm in a spotlight of high expectations.

December marked a major alliance between Arcellx and Gilead (NASDAQ:GILD), signaling robust industry confidence in CART-ddBCMA’s future. This partnership, forged in the wake of impressive clinical data, saw Gilead investing massively in Arcellx, with $225 million in cash and a $100 million stock purchase. Moreover, Arcellx’s recent earnings report shows a power foundation boasting $304 million in cash and equivalents plus $204 million in marketable securities.

Vertex (VRTX)

Vertex (NASDAQ:VRTX) remains at the forefront of a medical revolution thanks to its trailblazing, non-addictive, non-opioid pain medication, VX-548. As the world grapples with the challenges of addiction and the negative effects linked with typical pain medications, VX-548 emerges as a beacon of hope. Its unique mechanism, blocking sodium channels responsible for pain sensation, promises effective pain relief without the addiction risk.

Beyond pain management, Vertex’s visionary approach extends to curative therapies for chronic diseases. Their work on a CRISPR/Cas9 therapy aimed at curing sickle cell anemia exemplifies this. This focus on transforming treatments into cures positions the company as a game-changer in healthcare. With multiple clinical trials concluding in 2024, Vertex is not just treating diseases. Still, it is on the verge of providing transformative care, starkly contrasting the temporary solutions many offer. The company’s commitment to groundbreaking science and transformative therapies makes the company a long-term compelling addition to any investment portfolio.

On the date of publication, Muslim Farooque did not have (either directly or indirectly) any positions in the securities mentioned in this article. The opinions expressed in this article are those of the writer, subject to the InvestorPlace.com Publishing Guidelines

Muslim Farooque is a keen investor and an optimist at heart. A life-long gamer and tech enthusiast, he has a particular affinity for analyzing technology stocks. Muslim holds a bachelor’s of science degree in applied accounting from Oxford Brookes University.

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Gold is on the verge of pushing through a multi-year resistance level to set a new all-time high.

Get ready – if the breakout happens on strong volume, this is a trade you want to be in.

Stepping back, we all know the stock market is on fire. The combination of cooler inflation and Goldilocks economic data has Wall Street embracing a “soft landing” outcome as it eyes rate cuts in 2024.

The latest data supporting this arrived earlier today. The core personal consumption expenditures price index (that excludes food and energy) rose 0.2% for the month and 3.5% on the year. This was in line with estimates.

This growing soft-landing hope has juiced stocks all month. Since October 30th, the S&P has erupted more than 10%. It’s now barely 5% below its all-time high.

But what might not be on your radar is gold, which has surged 13% since October 6th. This is nearly double the performance of the S&P over the same period.

One, there’s the expectation of rate cuts as we just noted.

Gold tends to underperform when rates are higher because investors prefer income-paying assets, and gold pays no dividend. But when rates fall, that opportunity cost decreases, and gold’s appeal increases.

Two, there’s significant geopolitical risk with two regional wars that could spread.

Historically, when investors are worried, or uncertain about the future, gold is the go-to asset for wealth preservation.

Three, our government’s financial position continues to deteriorate.

As we’ve chronicled here in the Digest , our government’s spending/debt problem is unsustainable – and the purchasing power of our dollars is collateral damage. Protecting your wealth requires moving into assets outside of the dollar. Historically, gold is one such “wealth preserver” asset.

Four, the U.S. dollar is pulling back.

After hitting a recent local top of nearly 107, the U.S. Dollar Index has fallen sharply, now coming in at 103.

When the dollar is weaker, it requires more of those weak dollars to buy the same volume of gold. This pushes up the dollar-denominated price of gold.

Now, before we get to our prospective gold trade, let’s establish some context by looking at the type of trade we’ve recommended most recently in the Digest.

Regular Digest readers are familiar with “mean reversion” trades. In short, this is when a quality asset suffers a market selloff that goes too far, too fast.

When we see “oversold” conditions show up in our technical charts such as the Relative Strength Index and the MACD, we step up to the plate and take a swing (assuming other favorable conditions are in place too).

To illustrate, in our October 9th Digest, we profiled a handful of stocks that appeared oversold and potentially ripe for a trade based on our analysis of their Relative Strength Index and MACD charts.

To be fair, our takeaway wasn’t that each one of those stocks was a “buy” on that exact day. But they were close enough to be on our radar, in the discussion. So, for convenience, let’s just look at what these stocks have done since that Digest.

For context, since October 9th, the S&P has climbed 5.7% (as I write Thursday morning). And here’s the performance of our highlighted stocks from smallest to greatest return:

• Realty Income (O): 7.7%
• Coca-Cola (KO): 8.8%
• The Utilities Select Sector ETF (XLU): 9.0%
• Verizon (VZ) – discussed in our 10/25 Digest: 22.8%
• Dollar General (DG): 24.7%

With a mean-reversion trade, we’re trying to catch the beginning of a directional inflection point. We’re betting that kneejerk bearishness has been exhausted, so we’re buying a stock in expectation of cooler heads bidding up the price quickly.

In essence, we’re trying to capitalize on new, bullish momentum – and as you can see above, it can be very profitable.

But what if we forgot about the “new” part, and instead, looked for “proven” bullish momentum that’s in mid-move?

In other words, what if we just hopped aboard a rocket-ship that was already pushing into the stratosphere?

I used to be nervous about buying a stock when it was setting a new all-time high (or a 52-week high). My fear was: “We’re in thin air up here. It feels like heightened risk for a big pullback.”

If you’ve felt that way too, a study of market history tells us such a fear isn’t warranted.

William O’Neil, who founded Investor’s Business Daily and created the very popular swing-trading system known as CANSLIM, had a quote about this:

It is one of the great paradoxes of the stock market that what seems too high usually goes higher and what seems too low usually goes lower.

My friend Meb Faber, the CEO of Cambria Investments, is a widely respected quant analyst. Here’s his take:

Is buying stocks at an all-time high a good idea?

No, it’s not a good idea, which should surprise no one.

The fact that it is a GREAT idea, well, that should surprise everyone.

Meb detailed the results of a back-test he ran that had two rules: remain in stocks if they’re trading at all-time highs at the end of the month. If they’re not at all-time highs, then move into to government bonds.

Here’s the conclusion:

It turns out, it’s a pretty damn good strategy.  Better returns than just stocks, lower volatility, and WAY lower drawdowns… It’s an acknowledgement that all-time highs are nothing to be afraid of.

And this brings us full circle to gold.

As we pointed out at the top of this Digest, gold is poised to set a new all-time-high. But if it breaks out to a new high, the ensuing gains could come fast and furious thanks to a triple top of resistance.

As I write Thursday, gold trades at $2,054. This is just a few dollars beneath its all-time-high of $2,074 set in August of 2020.

But gold has hit its head on this all-time-high level twice before, creating a triple top (if it fails here again, it would be a quadruple top).

But such repeated failures generate tremendous pressure.

The stronger the resistance, the greater the strength required to break that resistance, the more explosive the gains often are on the other side of that resistance.

Case in point, look at gold and its multi-year resistance level of roughly $1,360.

In 2016, gold hit the general $1,360 level, then pulled back. For three years it tried – and failed – to push through this level. While disappointing to gold investors, it created enormous pressure.

When the yellow metal finally broke $1,360 in 2019, that pressure pushed it more than 50% higher as it soared to its current all-time-high.

Below is how this looks. Note how many times gold tried and failed to break $1,360. And then look at the vertical ascent afterward.

It appears we’re repeating this pattern today.

After three years of consolidation and head-bumping on $2,074, gold is stepping up to the plate yet again.

Now, there’s no guarantee it’ll break out, but given the economic climate we referenced earlier, there’s a strong likelihood.

Keep your eye on this, and then – importantly – watch the volume.

Volume is to a breakout trade what wind is to a sailboat. You can point your rudder in the right direction, but without sufficient wind, you’re not going to go anywhere.

If gold breaks out to a new high, to put the odds in our favor that it’s a trade we want, check the volume. We’d like to see very heavy volume, preferably at least 1.5X – 2X the normal volume. This would be evidence that traders across the board are buying into the move, not just a handful.

If you want to make this trade, the easiest way is with GLD, the SPDR Gold Shares Fund. You can also add more potential return (and risk) to your trade by looking at gold miners. Check out the holdings in the VanEck Gold Miners ETF GDX for ideas.

AI Trader is Luke’s AI-powered trading system. It’s engineered with a similar methodology we just looked at – identify stocks that are breaking out in strength. The difference is it uses artificial intelligence to help pinpoint these breakout stocks.

Yesterday, one of AI Trader’s stocks, Rover (ROVR), surged 30% after news broke that Blackstone is acquiring it.

Subscribers will close out their position for roughly 70% profits in less than two months.

But it’s not just Rover that’s been climbing in the AI Trader portfolio.

Their BellRing Brands trade is up 27% since early-October…

Their Intel position has jumped 39% since the end of last month…

And their Heritage Insurance Holdings has exploded 78% since mid-October.

As we’ve been saying for months in the Digest, let’s trade this market higher as long as we can. Luke and his AI Trader subscribers are doing exactly. So, a big congratulations.

Returning to gold, watch for the breakout to a new all-time-high, confirm it’s a high-conviction move by monitoring the volume, and if so, get in and hang on for what we hope will be a historic move higher.

Have a good evening,

Jeff Remsburg

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The post This Gold Breakout Could Be the Big One appeared first on InvestorPlace.

However, changes have occurred since the pandemic. In fact, streaming numbers aren’t as high as they once were. And, competition has tightened up, forcing early adopters to change their business models or increase their offerings. More and more companies are throwing in their streaming service bets, which can only be good for consumer choice. The industry is poised for additional growth.

So, let’s examine some of the three best streaming stocks to buy right now. 

Spotify Technology SA (SPOT)

Luxembourg-based Spotify Technology SA (NYSE:SPOT) is a digital music streaming company. Best known for shaking up the music industry, SPOT changed the way artists are paid for their music.

So, instead of album sales and performances, Spotify pays artists based on the number of song streams. This enables artists to earn more money, which levels the playing field for smaller artists. 

Also, the platform provides its users with ready-made playlists by experts and fans. Additionally, it allows users to discover new tracks while building their collections. Its Spotify Premium offers additional features like ad-free music, unlimited skips, and offline listening. 

Recently, SPOT reported a solid Q3 by turning a profit for the first time in over a year with a $0.36 EPS and a surprise of 280%. This is crucial as the company has been making strides in reducing costs. Plus, it is strategically investing in podcasts while implementing price hikes. And it’s safe to say that it’s starting to pay off.

Additionally, Spotify Technology SA garnered 16% more premium subscribers and 26% more monthly active users over the quarter. All this pushed the stock to a 52-week high, and analysts remain bullish about its prospects.

Netflix Inc. (NFLX)

Next up is probably one of the most popular streaming companies that started the “binge-watching” era of viewership.

Netflix Inc. (NASDAQ:NFLX) revolutionized the industry by bringing an entire series season to its audience on a single release day. Hence, this move has shaped the way consumers consume content. Also, the company revolutionized the TV industry with its strong “Netflix Originals” offerings.

Additionally, NFLX’s business model offers various streaming membership plans that vary depending on the country. And it can be accessed by a single user or a family. Members can stream via TVs, computers, and mobile devices for disruption-free binge watching. 

Netflix’s third-quarter report exceeded expectations by hitting $8.5 billion in revenue, a 7.8% increase year over year (YOY). Netflix raised expectations for FY23 operating margins to 20% and a higher free cash flow of approximately $6.5 billion. Also, the company’s Q3 had a strong content slate. They offered new originals like the live-action adaptation of One Piece, Dear Child, and Sintonia, increasing viewership.

This strong track record of growth and increase in investments in content makes Netflix a top streaming stocks to buy.

FuboTV Inc. (FUBO)

FuboTV Inc. (NYSE:FUBO) focuses on sports, with live TV-streaming of tens of thousands of live sporting events. Also, FUBO provides news and entertainment content annually.

They offer a base plan, Fubo Pro, with Nielsen-rated networks and dozens of sports, entertainment, and double-digit news channels. Additionally, subscribers can add premium channels and upgrades that provide enhanced, interactive experiences.

FuboTV reported a strong third quarter. Revenue from North America increased by 43% YOY, achieving a record number of 1.477 million paid subscribers, equivalent to 20% growth YOY. Further, the company has substantially progressed to meet its 2025 positive cash flow goal. In fact, FUBO has improved its free cash flow, net loss, and adjusted EBITDA for three straight quarters. Raising 2023 guidance, it now expects a 34% YOY revenue growth and 10% YOY growth in paid subscribers for North America. As such, analysts recommend it as one of the top streaming stocks to buy. 

And, according to Fubo’s CEO and co-founder David Gandler, the company aims to take advantage of the competitive streaming landscape. They plan this by aligning with market trends, personalizing user streaming experiences, and being a super aggregator.  

On the date of publication, Rick Orford did not have (either directly or indirectly) any positions in the securities mentioned in this article. The opinions expressed in this article are those of the writer, subject to the InvestorPlace.com Publishing Guidelines.

Rick Orford is a Wall Street Journal best-selling author, investor, influencer, and mentor. His work has appeared in the most authoritative publications, including Good Morning America, Washington Post, Yahoo Finance, MSN, Business Insider, NBC, FOX, CBS, and ABC News.

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There’s no question that interest rates will affect what investing trends play out next year. “Central banks will have to get the balance correct between tightening just enough and easing quickly enough,” says Serena Tang, Chief Global Cross-Asset Strategist at Morgan Stanley Research. “For investors, 2024 should be all about threading the needle and looking for small openings in markets that can generate positive returns.”

While it’s always hard to know what will pop and when, keeping a finger on the pulse is the first step in making smart investments throughout the year. With that being said, here are three 2024 investing trends that investors should be paying attention to.

Small Caps Make a Comeback

The Russell 2000 is the most popular of the small-cap stock indexes. Approximately 81% of $1.67 trillion in institutional assets use the index as their benchmark. In 2023, the Russell 2000 is up just over 3%, about one-sixth the performance of the S&P 500.

Over the past decade, small-cap stocks have been the top-performing asset class on just two occasions (2013 and 2016). However, when they perform, they perform well, which is why small caps are the second-best performing asset of the past decade through the end of 2022. 

Small cap stocks have failed to lead all of the major asset classes every year since 2016, but it’s time for them to return to the head of the table in 2024. Reversion to the mean is just around the corner. 

“As LSEG I/B/E/S estimates show, the estimated earnings growth rate for the Russell 2000 is expected to improve from -11% in 2023 to +31% in 2024; one reason there may be attractive opportunities in the small-cap universe,” states Charles Schwab’s 2024 U.S. outlook.  

Schwab also points out that the Russell 2000’s forward price-to-earnings (P/E) ratio is 21.4, 370 basis points ahead of its current trailing P/E. 

The iShares Russell 2000 ETF (NYSEARCA:IWM) is an excellent way to take advantage of potential small cap growth in 2024.

Sustainable Investing Takes Off

A CNN Business article from Oct. 23 said that environmental, social and corporate governance (ESG) investing was “fundamentally broken” and dying on Wall Street.

“In the U.S., assets under management in ESG funds declined from $339 billion in the second quarter to $315 billion by the end of September,” CNN Business reported. But to paint ESG investing with such a negative broad stroke is likely to be off the mark for 2024. ESG investing has been badly hurt in the past 12 to 18 months from institutional investors, and full acceptance by institutional and retail investors will take much longer than initially thought. But there is no turning back and Barenberg Bank believes a big theme in ESG in 2024 will be “transition investing.”

While much of the sustainable investing focus up until this point has been on overtly sustainable organizations, companies considered part of the transition investing market have a plan for decarbonization that they intend to stick to. The focus for transition investing is more on companies that will be making positive changes versus ones that were already there. For example, Occidental Petroleum (NYSE:OXY) is one stock to consider under transition investing as it is doing more than most oil and gas producers regarding carbon capture and storage.

Non-U.S. Investments Get Investor Love

Vanguard’s 2024 outlook suggests U.S. equities are overvalued compared to those outside the country. 

“Valuations are most stretched in the U.S. As a result, we have downgraded our U.S. equity return expectations to an annualized 4.2%–6.2% over the next 10 years from 4.4%–6.4% heading into 2023,” Vanguard states. 

It goes on to suggest that the best opportunities in equities in 2024 exist outside the U.S. “U.S. equities have continued to outperform their international peers. The key drivers of this performance gap over the last two years have been valuation expansion and U.S. dollar strength beyond our fair-value estimates, both of which are likely to reverse. … We project 10-year annualized returns of 7.0%–9.0% for non-U.S. developed markets and 6.6%–8.6% for emerging markets.”

The Vanguard FTSE All-World ex-US ETF (NYSEARCA:VEU), which owns approximately 2,200 stocks outside the U.S., generated a cumulative five-year return of 21%, less than half the S&P Composite 1500. When you consider how badly non-U.S. stocks have performed over the past five years, it makes sense that they should outperform over the next 5-10 years. When looking to implement this top investing trend for 2024, investors should look at VEU or other broad-based non-U.S. equity ETFs.      

On the date of publication, Will Ashworth did not hold (either directly or indirectly) any positions in the securities mentioned in this article. The opinions expressed in this article are those of the writer, subject to the InvestorPlace.com Publishing Guidelines.

Will Ashworth has written about investments full-time since 2008. Publications where he’s appeared include InvestorPlace, The Motley Fool Canada, Investopedia, Kiplinger, and several others in both the U.S. and Canada. He particularly enjoys creating model portfolios that stand the test of time. He lives in Halifax, Nova Scotia.

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The first one’s impressive surge in average revenue per user (ARPU) reflects a strategic pivot toward higher-value user segments. The second one, navigating the claims landscape, eyes a substantial market share despite its global presence. Meanwhile, the third stock’s subscription-based model paints a portrait of consistent growth. These companies strategically leverage technology, customer diversification and monetization strategies, positioning themselves as resilient contenders in their respective industries.

The modest stock prices belie their potential for investors seeking promising yet undervalued assets. These underdogs might redefine the investment landscape. Despite their humble price tags, these stocks under $15 offer a glimpse into the future of lucrative returns.

Opera (OPRA)

Opera’s (NASDAQ:OPRA) key achievement lies in its substantial growth in ARPU. It indicates the company’s successful efforts in catering to higher-value user segments. For instance, in Q3 2023, the 11% sequential increase in ARPU and the significant 24% year-over-year rise to $1.31 showcase Opera’s prowess in attracting and retaining users who generate higher revenues per capita.

Fundamentally, this ARPU growth represents Opera’s ability to effectively target and engage with users in diverse markets, especially in Western regions and among gaming enthusiasts. By focusing on these segments, Opera has expanded its user base and intensified its monetization strategies by appealing to audiences more likely to interact with paid services, premium features and targeted advertising.

Another critical aspect of Opera’s success has been its impressive 24% growth in advertising revenue. It now represents a significant portion, 59%, of its total revenue. That substantial growth highlights Opera’s adeptness in leveraging its user base for advertising opportunities and its success in expanding its advertising revenue streams.

The growth in advertising revenue has been attributed to Opera’s proficient execution of targeted advertising campaigns through in-house operations and by extending its audience reach. The combination of increased advertising revenue from Opera’s proprietary platforms and expanding its audience extension businesses underscores the company’s effective monetization strategies.

Finally, Opera’s ability to capitalize on the growth of its user base in Western markets has played a pivotal role in driving advertising revenue. Opera’s monetization strategies have been intelligently aligned with its user acquisition tactics. Thus, its strategy of replacing lower-monetized users with higher-value segments has led to revenue growth and sustained profitability.

Crawford (CRD-B)

Crawford (NYSE:CRD-B) strategically focuses on scaling its business across complementary service offerings within the claims space. With a global presence, the company manages an impressive volume of over $18 billion in claims annually. This highlights the company’s substantial market reach and operational capacity. Operating globally, Crawford boasts a workforce of approximately 10,000 employees and a vast network of field resources, underscoring its extensive operational infrastructure.

Despite its significant global presence, Crawford estimates its market share to be in the low single digits. That suggests a vast untapped market opportunity for the company to expand its footprint and capture a larger share of the claims processing industry. Notably, Crawford has a customer base that is diversifying and expanding. Thus, this encompasses a broad spectrum of prominent brands increasingly turning to Crawford as their preferred claims solution provider.

The company recognizes substantial growth prospects within the claims landscape. Natural catastrophes are escalating in frequency and severity, necessitating increased resources to aid policyholders in post-disaster recovery. Crawford’s non-underwriting risk approach positions it advantageously, allowing collaboration with carriers, self-insured corporations and captives to offer outsourced claim solutions.

In response to mounting pressure on property and casualty (P&C) margins, there’s a noticeable trend toward outsourcing major and complex claims. Crawford capitalizes on this market shift by leveraging its nimble and empathetic response to major catastrophe events. The company’s growing scale is a significant competitive advantage in the fragmented U.S. independent loss-adjusting market.

Finally, the company’s industry-leading insurtech capabilities, including investments in machine learning, data visualization and SaaS-based offerings, highlight its commitment to technological advancement, paving the way for double-digit growth across its platform segment. Hence, this technological edge differentiates Crawford as an innovator and industry leader in technological evolution within the claims processing domain.

Arlo (ARLO)

Arlo’s (NYSE:ARLO) remarkable achievement in subscriber growth indicates its market appeal and strategic execution. For instance, as of Q3 2023, Arlo’s robust 59.5% year-over-year growth in annual recurring revenue (ARR) signifies the success of its subscription-based business model. Also, the substantial growth in subscribers, reaching 2.5 million and growing at approximately 50% year-over-year, significantly contributes to the increase in ARR.

Additionally, Arlo strategically lowered upfront hardware costs while increasing recurring service prices. This move aimed to reduce the barrier of entry into the Arlo ecosystem, enticing more customers to adopt Arlo’s products and services. Notably, Arlo maintains robust product sales (up over 20% sequentially) despite challenges in the consumer environment. This showcased the company’s ability to position itself favorably in the competitive market.

Arlo’s ARPU of $700 per subscriber highlights the company’s efficient monetization strategies. That strong ARPU signifies the substantial value generated by each user within the ecosystem. It ensures a higher lifetime value and increased revenue potential. Favorably, the company has kept its momentum in quarter-over-quarter growth in paid accounts, with an expected range of 170K to 190K new paid accounts.

Finally, Arlo has transitioned towards a services-first approach, where services accounted for nearly 40% of total revenue and represented 86% of total non-GAAP gross profit. That highlights the effectiveness of its strategy in bolstering recurring revenue streams and overall ARR. Overall, the consistent growth trajectory in the installed base and paid accounts, combined with the upward trend in service revenue, indicates a sustained momentum in revenue generation and reinforces the potential for continued ARR growth.

On the date of publication, Yiannis Zourmpanos did not hold (either directly or indirectly) any positions in the securities mentioned in this article. The opinions expressed in this article are those of the writer, subject to the InvestorPlace.com Publishing Guidelines.

Yiannis Zourmpanos is the founder of Yiazou Capital Research, a stock-market research platform designed to elevate the due diligence process through in-depth business analysis.

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Is a strong argument to be made that sticking with the biggest Silicon Valley firms is the way to go. Those firms have invested heavily into machine learning and artificial intelligence. They are currently reaping the benefits of that investment and should continue to do so. Thus, if you can only buy a single machine learning stock in December, it should be one of these firms listed below.

Alphabet/Google (GOOG,GOOGL)

Alphabet/Google (NASDAQ:GOOG,GOOGL) Hasn’t received as much attention in regard to machine learning as some of its peers. However, it would be a big mistake to disregard the company and its stock in relation to machine learning.

It goes without mentioning but Google is utilizing AI to improve its search function and other products that are integral to the stock and its performance. Google’s machine learning platform is called TensorFlow. TensorFlow Is an open source framework used in machine learning applications.

Further, Google and its parent company, Alphabet, obviously have deep pockets and an innate interest in artificial intelligence. The company has used those resources to create what is one of the most respected AI research divisions in Silicon valley.

There’s absolutely no reason to discount Google in relation to machine learning and AI. On top of that, Google’s advertising revenues are getting stronger by the day. With peak rates at hand, it’s logical to assume that those revenues will only be strengthening moving forward. 

ASML (ASML)

ASML (NASDAQ:ASML) He’s well known as one of the more unique and best positioned semiconductor firms globally. Its lithography machines are bus-sized pieces of equipment that can cost several hundred million dollars. It essentially has no rivals so that makes its stock perpetually interesting.

ASML is applying machine learning to understand how to improve its already strong position. The company is applying those results in order to figure out how to improve those machines. further it is applying AI to better understand the maintenance needs required for those lithography machines.

In general, ASML is one of the better stocks to consider in regard to AI and machine learning currently. companies of all sizes are going to require greater and greater quantities of higher performance chips. asml’s machines are at the leading edge of that production.

It continues to be an excellent picks-and-shovels investment in the overall growth of AI. Further, ASML is a very stable company and provides a modest amount of income through a dividend yielding 0.8%.

Microsoft (MSFT)

Microsoft (NASDAQ:MSFT) deservedly continues to receive a lot of attention in regard to machine learning and artificial intelligence. The company offers several machine learning products. Those products include Azure Machine Learning and Cognitive Services.

Azure Machine Learning Is a set of cloud-based machine learning tools used to build machine learning models. It allows users to engage in tasks vital to machine learning including classification, clustering and regression.

Cognitive Services Is a set of APIs focused on language, speech, and vision. Microsoft continues to make leading technology and deploy that technology across the enterprise space. The company has established  a very strong foothold in the AI space in 2023. Its investment in OpenAI will continue to pay dividends for a long time. Speaking of dividends, Microsoft continues to pay a very modest dividend, but one that continues to grow.

There’s no compelling reason not to invest in Microsoft for the long-term.

Nvidia (NVDA)

Every investor realizes that Nvidia’s (NASDAQ:NVDA)  chips have become a must-have for all things artificial intelligence. Its stock has skyrocketed in 2023 for that reason. The company continues to garner headlines for that reason as well.

Nvidia’s leading chips are also highly applicable to machine learning. The company is known for its dominant GPUs, or graphic processing units. Basically, any firm with any interest in artificial intelligence and machine learning, which is almost every company, demands Nvidia’s chips.

That strong demand has resulted in incredible prices for Nvidia’s H100 chips which dominate the space. Those chips are known to be the industry standard and companies simply have to do what they can to secure their supply of the chips. The difference between Nvidia’s chips and those of its competitors matters. 

That gap is only going to grow in the future because the company has just announced its H200 GPU. that chip will have even greater performance specifications applicable to machine learning and AI. Therefore, it’s reasonable to anticipate another period of massive demand as enterprises of all sizes scramble to secure H200 chips. This is the machine learning stock everybody is talking about, and for good reason.

AMD (AMD)

AMD (NASDAQ:AMD) is admittedly far behind Nvidia in most respects. That’s also true of its machine learning capabilities. Nonetheless, the stock continues to be one to consider in regard to machine learning.

Earlier in 2023, the company captured headlines in relation to its pursuit of Nvidia in machine learning capability. At that time, it was assumed that AMD’s chips were roughly 80% as powerful as Nvidia’s for machine learning applications. 

As mentioned, Nvidia just announced that it will be releasing new and improved H200 chips. Those chips are slated to be released in the second quarter of 2024. That means AMD will have to provide some sort of technological Leap Forward in that time frame in order not to fall farther behind.

That said, AMD’s chips continue to have lots of applications across the machine learning space. firms are using its chips for applications such as natural language processing, fraud detection, and other uses such as computer vision.

Amazon (AMZN)

Amazon (NASDAQ:AMZN) Is known primarily as an e-commerce stock. Additionally, Amazon is among the leading cloud computing firms globally. it has a strong, deep position in the machine learning world that makes it a compelling choice overall.

Amazon is applying machine learning across its operations. Machine learning is used by the company to  improve product recommendations for e-commerce customers. The company is applying machine learning in its AWS Cloud operations as well. Amazon web services is one of the leading platforms for the deployment of machine learning. 

The company offers several machine learning products for enterprise customers. Those products, including Amazon SageMaker, allow developers to Create and train machine learning models. the company’s deep ability in this regard make it among the best long-term choices for machine learning investors. 

Beyond that, the business cycle also favors Amazon at the moment. The markets seem to have avoided the worst outcome and are instead headed toward future rate cuts. that promises to bring more and more customers both on the e-commerce and machine learning sides.

Snowflake (SNOW)

Snowflake (NASDAQ:SNOW) Is fairly similar to Amazon in relation to machine learning. However, Snowflake does not engage in e-commerce, and instead is solely a cloud company.

The company offers Machine learning capabilities across three main areas. SnowPark ML allows developers to build ML models using Python language. It also offers a space to store the building blocks of those models which are then further developed. Further, Snowflake features the ability to integrate external ml models created elsewhere. Thus, it’s clear that Snowflake is heavily invested in pulling customers away from the larger cloud machine learning firms.

That’s an interesting angle to snowflake because switching costs are extraordinarily high in the machine learning space.

Overall, investors should consider Snowflake as one of the best machine learning stocks to purchase in December. The company is growing at an extraordinarily fast rate. Investors would be hard pressed to find a better positioned growth stock  with a heavy ML presence to take advantage of upcoming rate cuts.

On the date of publication, Alex Sirois did not have (either directly or indirectly) any positions in the securities mentioned in this article. The opinions expressed in this article are those of the writer, subject to the InvestorPlace.com Publishing Guidelines.

Alex Sirois is a freelance contributor to InvestorPlace whose personal stock investing style is focused on long-term, buy-and-hold, wealth-building stock picks. Having worked in several industries from e-commerce to translation to education and utilizing his MBA from George Washington University, he brings a diverse set of skills through which he filters his writing.

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Today, companies are integrating AI into applications such as email, shopping carts, and customer service. Indeed, over the next decade, this technology is set to become ubiquitous.

Due to the expected growth, tremendous growth is happening in first derivative beneficiaries. For instance, Nvidia (NASDAQ:NVDA), manufacturing graphic processing units for training and inference, is up over 230% year to date (YTD). Also, Microsoft (NASDAQ:MSFT), at all-time highs, is witnessing rising investor interest as it launches Copilot.

And while clear beneficiaries, these two stocks are already trillion-dollar companies. Their multibagger potential may be limited going forward due to the law of large numbers.

Instead, look out for these smaller AI stocks with new market innovations to power your portfolio.

ServiceNow (NOW)

The IT service management (ITSM) leader ServiceNow (NYSE:NOW) offers workflow applications across technology, customer and industry, employee, and creator domains. The company provides these applications through the Now Platform. This allows global organizations to digitize workflows while improving productivity.

Today, the firm is leveraging generative AI to help organizations improve business outcomes and human experiences. The latest release, Vancouver, features generative AI capabilities for every workflow.

According to CEO Bill McDermott, generative AI represents a growth tailwind. At the end of Q3 fiscal year 2024, ServiceNow had over 300 customers in its pipeline for its GenAI product. After Vancouver’s release on September 29, the company received the highest number of customer requests in history. Notably, with only one day to close the quarter, it signed four large deals.

Further, leading companies such as Nvidia are using the Now Platform, and governments are another growth vector. For instance, in Q3, demand from federal customers soared, with net new annual contract value growing 75% year over year (YOY).

Due to AI-driven growth, management sees subscription revenues of $8.635 billion to $8.640 billion, representing 25% YOY growth. Renewal rates and new customers are increasing as CEOs lean on generative AI to drive business transformation.

Intuit (INTU)

Intuit (NASDAQ:INTU) is an accounting and tax solutions service that helps small and medium-sized businesses handle their financials. Currently, the company has over 100 million consumer and business customers globally.

Due to its scale, Intuit has access to large amounts of customer data. Over the last five years, the company has worked towards becoming an AI-driven expert platform. Even before AI was fashionable, the firm was making AI investments.

Generative AI will be crucial in unlocking Intuit’s $300 billion TAM. The company relies on customer data to train its models and build differentiated customer value. Recently, the company launched Intuit Assist, a generative AI-powered assistant that offers personalized and intelligent recommendations. It delivers productive insights across Intuit products such as TurboTax, QuickBooks, Mailchimp, and Credit Karma.

By harnessing robust customer data, Intuit Assist can deliver personalized recommendations for consumers and businesses. For instance, Intuit Assist for TurboTax can decipher a customer’s tax situation and provide recommendations. Additionally, it will offer insights on accurately filing taxes and maximizing tax refunds.

On the other hand, Credit Karma users will benefit from personalized answers to their money questions. Using their financial data, Intuit Assist will help members contextualize their finances and provide customized recommendations. Intuit Assist for QuickBooks will unearth financial insights such as business cash flow hot spots.

Customers adopting Intuit Assist means significant upsell opportunities. Additionally, the company has other AI products, including MailChimp Creative Assistant and GenOS, to build capital.

NICE (NICE)

NICE (NASDAQ:NICE) provides contact center services to businesses globally. Although the Israel-based company suffered a temporary setback due to the Hamas attack, it remains a top AI stock. The adoption of generative AI is transforming customer service within the contact center.

Over the years, automating the customer experience has been attempted. With AI, creating an agentless and consumer-led experience is possible. NICE customer experience AI has the data, knowledge, and interactions to deliver a proactive AI-driven service. Notably, the company counts 85 of the Fortune 100 companies as customers.

On October 16, Morgan Stanley upgraded the stock to overweight. Analyst Meta Marshall believes the firm will capture the conversational AI market among enterprise customers. According to Marshall, the contact center technology market will grow 18% annually over the next five years, driven by demand for virtual agents.

Considering its leadership position, NICE is well-positioned to capture this demand. Indeed, according to Gartner, the company has been a leader in Contact Center as a Service (CCaaS) for nine consecutive years. CXone, its customer experience cloud platform, is now a comprehensive digital engagement and AI platform.

In the third quarter report, management highlighted the incremental revenue opportunity from AI. During the quarter, 80% of new enterprise deals included the CX AI platform. Additionally, CXone AI bookings have increased 163% YTD.

On the date of publication, Charles Munyi did not hold (either directly or indirectly) any positions in the securities mentioned in this article. The opinions expressed in this article are those of the writer, subject to the InvestorPlace.com Publishing Guidelines.

Charles Munyi has extensive writing experience in various industries, including personal finance, insurance, technology, wealth management and stock investing. He has written for a wide variety of financial websites including Benzinga, The Balance and Investopedia.

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According to recent reports, the United Auto Workers (UAW) union has set its sights on several other prominent automakers after its historic victory against Detroit’s “Big Three.” The union has confirmed that it plans on targeting some 150,000 workers across 13 companies as part of its new campaign, described by The Wall Street Journal as “one of the largest organizing drives in its history.” The list of automakers includes Tesla as well as newer electric vehicle (EV) startups like Lucid (NASDAQ:LCID) and Rivian (NASDAQ:RIVN).

Given the turbulence that Ford (NYSE:F), General Motors (NYSE:GM) and Stellantis (NYSE:STLA) experienced during the recent UAW strikes, some investors may be worried about what this news means for EV stocks. These concerns are understandable. However, it won’t necessarily be bad news if the UAW campaign reaches the EV sector. In fact, it could ultimately be beneficial for some companies.

What’s Happening With EV Stocks?

It hasn’t been a good day for EV stocks in general. Many of the sector’s biggest names are down today, starting with Tesla. The EV leader just began deliveries of its Cybertruck but, so far, that news hasn’t been enough to boost shares. Today’s negative momentum is likely being driven more by a lack of optimism around the Cybertruck than the recent UAW update, though.

While news of the union campaign doesn’t seem to be impacting EV stocks too much today, it still warrants a closer look. Tesla CEO Elon Musk has made it clear that he does not support unions. In fact, Musk drew ire in 2018 for an anti-union tweet sparked by a report of undisclosed safety violations at a Tesla factory. In the same thread of posts, Musk openly criticized the UAW.

Given the CEO’s history with the UAW, he more than likely won’t react well to the union’s mission of organizing Tesla workers. But it makes perfect sense that the UAW would set its sights on Tesla in particular. The company’s questionable history with worker safety speaks for itself. The Drive reports that “data collected by Forbes shows that Tesla has accumulated more than three times the number of Occupational Safety and Health Administration (OSHA) violations that its top 10 competitors amassed from 2014-2018.”

The Road Ahead

Even if Musk attempts to strike back at the UAW, it’s important for investors to face the facts. And one fact is that the prospect of Tesla workers unionizing doesn’t mean TSLA stock will suffer in the long run. In 2021, an academic study found compelling evidence that pro-union policies can actually decrease a company’s risk of its stock price crashing:

“We find that the effect of unionization on crash risk is stronger among firms with greater risk-taking, more overinvestment, and higher opacity. These results suggest that unionization reduces stock price crash risk by limiting risk-taking, constraining overinvestment, and improving information flow.”

Ultimately, adapting pro-union policies could end up benefiting both companies and investors. Musk will probably argue against any claims made by the UAW rather than take responsibility for the problems his company has caused for workers. But investors should be careful to see the bigger picture here. EV stocks can still succeed if their workers end up unionizing. Indeed, leading companies in other sectors have embraced pro-union policies before and still generated healthy returns for investors. Regardless of what Musk says, the UAW’s new campaign shouldn’t instantly be seen as bad news.

On the date of publication, Samuel O’Brient did not hold (either directly or indirectly) any positions in the securities mentioned in this article. The opinions expressed in this article are those of the writer, subject to the InvestorPlace.com Publishing Guidelines.

Samuel O’Brient has been covering financial markets and analyzing economic policy for three-plus years. His areas of expertise involve electric vehicle (EV) stocks, green energy and NFTs. O’Brient loves helping everyone understand the complexities of economics. He is ranked in the top 15% of stock pickers on TipRanks.

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Increasing labor costs are driving increased demand for automation overall. Firms are increasingly looking to reduce the costs associated with that labor force in particular. Therefore, automation remains a prime target.

Further, the advent of artificial intelligence (AI) and machine learning served to increase that demand. Industry experts expect AI will speed the development of robotics and automation to a much faster degree. Let’s look at a handful of stable investments in that space.

Rockwell Automation (ROK)

Rockwell Automation (NYSE:ROK) represents a few important characteristics that automation investors seek in a stock. First of all, the company is a pure-play automation firm. Therefore, it exposes investors to strong returns based on the overall sector growth. Second of all, ROK shares are quite stable and are trading nearer to their 52-week low than their high.

Rockwell Automation is a particularly strong stock to consider in the automation space in light of its recent performance. The company reported earnings on November 2nd that indicated the company is doing very well. Revenues increased 25% during the period, reaching $2.275 billion.

The company’s net income figures were particularly impressive. A year ago, the company reported $53.9 million in earnings. That figure increased to $300 million due to increased sales along with higher pre-tax margins.

Rockwell Automation’s recent strong performance, future outlook and stable nature make it a great choice among automation stocks. It’s also a good choice for income investors and provides a dividend yielding 1.82%.

Intuitive Surgical (ISRG)

Intuitive Surgical (NASDAQ:ISRG) is best known for its da Vinci surgical robots. The robots are used to perform minimally invasive procedures and continue to be in high demand.

There are two primary reasons to consider investing in Intuitive Surgical at the moment. First of all, it’s reasonable to anticipate that demand for da Vinci systems will only get stronger. The reason is that AI is fundamentally changing medicine. The application of this technology to its robotics systems is exciting. AI can be used to determine more optimal procedures than was previously possible. The da Vinci system is a prime beneficiary of that potential period.

In fact, Intuitive Surgical is already growing with or without AI. Da Vinci procedures have grown at a compound annual growth rate of 17% between Q3 2019 and Q3 2023. Further, the company continues to place more of its systems in the locations of healthcare providers. In the third quarter, Intuitive Surgical placed 312 da Vinci systems. A year earlier, the company placed 305 such systems.

Nvidia (NVDA)

Nvidia’s (NASDAQ:NVDA) leading-edge semiconductors are applicable across almost every technological sector. That includes robotics. Thus, it should be no surprise that Nvidia stock is recommended among the very best robotics equities overall.

Firms across every sector have scrambled to secure their supply of Nvidia’s H100 chips during 2023. Companies remain unwilling to settle for the alternatives. The stakes are simply too high in the early stages of the AI gold rush. Nvidia’s chips perform faster and are more capable overall. That can mean the difference between success and failure.

Those chips have found wide application in training automated robots to do multiple tasks. For example, Nvidia’s chips are well suited to tasks including robot perception training as well as navigation training. 

Nvidia is only going to get stronger in this regard. The company recently announced it will release its H200 chips in the second quarter of 2024. The H200 chip will be even more capable than the H100 chip. Thus, it should be very well received. It’s logical to anticipate that firms across every industry, robotics included, will scramble to secure their supply of those chips.

On the date of publication, Alex Sirois did not hold (either directly or indirectly) any positions in the securities mentioned in this article. The opinions expressed in this article are those of the writer, subject to the InvestorPlace.com Publishing Guidelines.

Alex Sirois is a freelance contributor to InvestorPlace whose personal stock investing style is focused on long-term, buy-and-hold, wealth-building stock picks. Having worked in several industries from e-commerce to translation to education and utilizing his MBA from George Washington University, he brings a diverse set of skills through which he filters his writing.

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Linde (LIN)

Linde Plc (NASDAQ:LIN) is making waves as a strong contender in the industrial gases sector, especially as a promising hydrogen stock this December. Despite a slightly challenging economic outlook, its third quarter highlights reveal resilience and growth.

Sales fell 7%, but underlying sales rose 3%. Operating profit was up 15% with an impressive adjusted margin of 28.3%. Earnings per share (EPS) rose a solid 26% to $3.19, and adjusted EPS was up 17% to $3.63.

Looking ahead, Linde’s positive outlook shines brightly as they have raised their full year 2023 adjusted EPS guidance, projecting notable year-over-year growth from 14% to 15%. One of their major achievements is the long-term agreement to supply industrial gases, including hydrogen, to Indian Oil Corporation’s Panipat refinery in India.

In another impactful move, they are championing sustainability with agreements in Brazil to source more than two million megawatt hours per year of renewable energy. This aligns with its commitment to double the purchase of low-carbon energy by 2028 and reduce greenhouse gas emissions. The company’s dedication to environmental responsibility is reinforced by its estimates that its solutions help customers avoid more than double the emissions generated by their own operations.

On top of that, they are returning value to shareholders with a quarterly dividend of $1.275 per share and a new share buyback program of up to $15 billion. This not only underscores its confidence in financial strength, but also signals its commitment to rewarding shareholders. All that we discussed make this a top hydrogen stock for you to consider.

Plug Power (PLUG)

In the world of green energy, Plug Power (NASDAQ:PLUG) stands out as a leader in providing comprehensive hydrogen solutions. Its technology focuses on electrolysis and hydrogen solutions, from mobility to sustainable fuels.

Although 2023 has presented challenges in hydrogen supply in North America, especially in the liquid market, Plug Power has demonstrated resilience. Despite negative impacts on gross margins, the third quarter saw notable sequential improvements, with a 21% increase in gross margin compared to the second quarter.

In other news, Plug Power was chosen to provide a 280 MW electrolysis system to Arcadia eFuels. This project will drive the production of green hydrogen and sustainable aviation fuel. In addition, they have partnered with Fortescue, a leader in green energy, to supply electrolyzers for the Gibson Island project, leading the way to mass production of green hydrogen.

Fortescue and Plug Power are not only working together in North America, but also exploring global investment opportunities. The proposed plant in Australia has the ambitious goal of producing 385,000 metric tons of green ammonia per year.

Ballard Power (BLDP)

Ballard Power Systems (NASDAQ:BLDP) is a leading company in the hydrogen fuel cell sector, specializing in various applications such as heavy mobility, stationary power and emerging markets. In the third quarter of 2023, it posted strong financial results, with a 29% year-on-year increase in total revenues, highlighting notable growth in the heavy mobility sector, especially in the rail and marine sectors.

Despite the challenges, the company effectively managed operating expenses, with a 9% reduction. Of particular note was Canadian Pacific Kansas City’s order for additional fuel cell engines, which support the development of hydrogen-powered locomotives in Alberta and align with the broader goal of environmental sustainability.

Ballard’s collaboration with Ford Trucks to supply a fuel cell system for a prototype hydrogen-powered vehicle is another significant milestone. This partnership, which includes an initial order for 2 FCmove-XD 120 kW fuel cell engines, demonstrates Ballard’s commitment to advancing clean energy solutions in the automotive industry.

In addition, its multiple purchase orders from Solaris, one of Europe’s leading bus manufacturers, solidify its presence in the hydrogen-powered public transport sector. The company’s dedication to reducing carbon emissions is evident in these collaborations, as evidenced by its funding of the Emissions Reduction Alberta program and participation in the European Union’s Horizon Europe ZEFES project.

As of this writing, Gabriel Osorio-Mazzilli did not hold (either directly or indirectly) any positions in the securities mentioned in this article. The opinions expressed in this article are those of the writer, subject to the InvestorPlace.com Publishing Guidelines. 

Gabriel Osorio is a former Goldman Sachs and Citigroup employee. He possesses discipline in bottom-up value investing and volatility-based long/short equities trading.

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What do you need to know about housing lately?

Well, per a new report, contract signings for existing homes have slowed to their lowest rate in more than 20 years in October. According to the National Association of Realtors (NAR) home sales under contract slipped 1.5% from the month prior, while on a yearly basis, pending transactions have dropped 8.5%.

This has left the Pending Home Sales Index (PHSI) at 71.4, the lowest number in the index’s history, dating back to 2001. For context, the PHSI is a “forward-looking indicator of home sales based on contract signings.” The base level of the index is 100, the rate of contract activity at the index’s origin.

As you might imagine, mortgage rates are the primary culprit behind the slip in pending sales.

“During October, mortgage rates were at their highest, and contract signings for existing homes were at their lowest in more than 20 years,” said Lawrence Yun, NAR’s chief economist.

“Recent weeks’ successive declines in mortgage rates will help qualify more home buyers, but limited housing inventory is significantly preventing housing demand from fully being satisfied. Multiple offers, of course, yield only one winner, with the rest left to continue their search.”

What Does Falling Pending Sales Mean for a Potential Housing Market Crash?

Pending sales tell us largely what is already widely known: the demand for homes in the U.S. is rapidly deteriorating. Mortgage rates tipped past 7.5% in October, the highest since 2000. With the average price of homes still up compared to last year, home affordability is at something of a crisis level in many parts of the country.

The obvious question remains: why are home prices still up despite low demand? Well, this reflects the highly imbalanced state of the U.S. housing market. Indeed, the country has a very limited inventory of available homes for sale. The total housing inventory in the U.S. was 1,150,000 in October, less than half the U.S. average inventory from 1982 to 2023 of 2,282,880.

The limited supply of homes means even though demand for housing is in the gutters, home prices aren’t liable to fall by any notable amounts. Indeed, U.S. home prices are actually up 2.2% from the same time last year, while the number of homes sold is down nearly 7%.

As such, home construction has been a point of focus for the housing market. Yun had this to say on the matter:

“Sales for properties priced above $750,000 were higher than a year ago, because there is more inventory at this price point than what we saw last October. Additionally, newly built home sales are up 4.5% year-to-date due to homebuilders’ ability to create more inventory. It is vital that we continue to focus on boosting housing supply by all means in all corners of the country over the coming months.”

On the date of publication, Shrey Dua did not hold (either directly or indirectly) any positions in the securities mentioned in this article. The opinions expressed in this article are those of the writer, subject to the InvestorPlace.com Publishing Guidelines.

With degrees in economics and journalism, Shrey Dua leverages his ample experience in media and reporting to contribute well-informed articles covering everything from financial regulation and the electric vehicle industry to the housing market and monetary policy. Shrey’s articles have featured in the likes of Morning Brew, Real Clear Markets, the Downline Podcast, and more.

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The post Pending Home Sales Are the Latest Red Flag That a Housing Market Crash Is Coming appeared first on InvestorPlace.

Data from Hartford Funds shows that going all the way back to 1930, there’s not been a single decade where dividend stocks on the S&P 500 lost money. Even when the market was losing money during the Great Depression and the so-called “Lost Decade” of the 2000s, income-generating stocks still reported gains for shareholders. 

Hartford also found that from 1960 on, reinvested dividends represented an astounding 69% of the index’s total return. Coupled with the power of compounding, a $10,000 initial investment in dividend payers turned into $4.1 million 60 years later. Compare that to $641,000 just by investing in the index alone.

Wall Street’s elite are well aware of that outperformance. The smart money was buying up high-yielding dividend payers this past quarter. What follows are three income stocks billionaires love to buy with yields at least four times greater than the S&P 500’s 1.51%.

Pfizer (PFE)

Covid vaccine darling Pfizer (NYSE:PFE) fell on hard times afterward. Record revenue of over $100 billion is now down 42% year to date as Paxlovid sales all but evaporated (down 95%) and Comirnaty revenue plunged 70%. Pfizer also took a one-time no-cash charge of $4.2 billion related to the return from the United States government of an estimated 7.9 million unused Paxlovid doses.

Convincing people today to receive additional Covid shots year after year is a hard sell. The non-cash charges Pfizer took swiped $0.84 per share from the drugmaker’s earnings. It turned what would have been a profit into a $0.42 per share loss.

Yet Pfizer has a large portfolio of non-Covid-related therapies. It expects those will generate 6% to 8% revenue growth for the full year. No doubt that is what Bill & Melinda Gates Foundation were looking at when they bought $2 million worth of Pfizer stock this quarter. Similarly, David Katz of Matrix Asset Advisors increased his stake 71% and now holds $6.4 million worth of stock.

Pfizer Shares are down 41% year-to-date but trade at nine times expected earnings. Its dividend yields 5.2%, which could make it too good of an opportunity for some billionaires to pass up. I wouldn’t be a buyer though. New acquisitions to make up for lost revenue will be expensive. Its recent purchase of Seagen (NASDAQ:SGEN) for $43 billion is a case in point. It paid a 33% premium above the oncology stock’s asking price. Pfizer will be a buy again one day, but I don’t see it there today.

Enterprise Products Partners (EPD)

Oil and gas middleman Enterprise Products Partners (NYSE:EPD) also attracted smart money support this past quarter. Bruce Berkowitz of Fairholme Capital Management increased his holdings by 15% and now owns 5 million shares worth $138 million.

Shares of the master limited partnership (MLP) are up 10% in 2023, but it’s not a stock that will impress you with stellar growth. Rather it is a steady performer that pays a dividend yielding a lucrative 7.6% annually. 

It carefully invests in its operations to grow the business for the benefit of itself and for shareholders. It then returns substantial sums to them as a reward. Enterprise Products distributed $1.9 billion in dividends to investors in the third quarter while raising the payout 5.3%. It’s increased the payout for 25 consecutive years. 

The benefit of the MLP is that its business makes money no matter which way the oil and gas markets go. Operating on long-term fixed contracts, Enterprise Products Partners gets paid whether its customers take the product or not. It’s a sweet spot to be sitting pretty. There are complex tax issues, however, that need to be considered when investing in MLPs.

Verizon (VZ)

Telecom giant Verizon (NYSE:VZ) faces headwinds from inflation and rising interest rates that make its capital-intensive business expensive to operate. It also faces intense competition from rivals AT&T (NYSE:T) and T-Mobile (NYSE:TMUS) creating difficulty in attracting customers to its services.

However, Verizon finally found its footing again in the third quarter. It brought in 100,000 new wireless customers and 434,000 new broadband subscribers. Still, revenue and earnings per share were down year over year, though by less than 3%. Its dividend continues to offer a healthy yield of 7.0%, which ranks amongst its highest levels in recent years.

The telecom saw two new billionaires buy into its stock this quarter. Yachtmann Asset Management and Mairs & Power Growth Fund started new positions with the latter buying nearly $78 million worth of stock. Hillman Value Fund also increased its stake by 22%.

The shares still offer a good value even after jumping 25% above their lows. The stock trades at just eight times projected earnings and a bargain basement nine times free cash flow. This is a company that still has plenty of growth in its future, even if it’s not the meteoric kind. The national 5G rollout offers substantial opportunities as consumers upgrade their phones.

On the date of publication, Rich Duprey held a LONG position in T stock. The opinions expressed in this article are those of the writer, subject to the InvestorPlace.com Publishing Guidelines.

Rich Duprey has written about stocks and investing for the past 20 years. His articles have appeared on Nasdaq.com, The Motley Fool, and Yahoo! Finance, and he has been referenced by U.S. and international publications, including MarketWatch, Financial Times, Forbes, Fast Company, USA Today, Milwaukee Journal Sentinel, Cheddar News, The Boston Globe, L’Express, and numerous other news outlets.

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In the Mountain West, it’s been snowing since October. In fact, the snow is now at my Reno home, which is at a 5,000-foot elevation.

It’s also cold all over the world… there have been a lot of record-low temperatures already set in the Northern and Southern Hemispheres this year, including in tropical climates like those found in South America.

This year, around the world, we’ve seen record cold temperatures already in:

• Tongulakh, Siberia (-62.4 degrees Centigrade)
• Halifax airport, Nova Scotia (-45.4 degrees Centigrade)
• Shepherd Bay, Nunavut, Canada (-49.6 degrees Centigrade)
• Kinbrace in Scottish Highlands (-15.2 degrees Centigrade)
• Mount Washington, New Hampshire (-78 degrees Centigrade)
• Boston, Massachusetts (-23 degrees Centigrade)
• Providence, Rhode Island (-23 degrees Centigrade)
• Sydney, Australia (1.8 degrees Centigrade)

Not to mention the record low temperatures this year in the Southern Hemisphere in Argentina, Brazil, Chile and Uruguay. So, today I want to share with you why we are experiencing these cold temperatures… and how your portfolio can benefit from them – if you invest in the right stocks.

Wild Jet Stream Oscillations

The main reason for the extreme temperatures is due to a wild oscillating jet stream in the Northern Hemisphere and the polar jet stream in the Southern Hemisphere.

Now, the Northern jet stream and the Southern polar jet stream are oscillating because the magnetic poles are moving and will eventually shift, which they do every 60,000 years or so (that is how rocks are dated for all the magnetic pole shifts recorded).

In the Northern Hemisphere, the magnetic North Pole has been moving since being tracked in 1840 and appears to be getting ready to shift again. The net result is more wild jet stream oscillations, so we experience more extreme weather, both hot and cold.

So far, this winter is tracking better. Part of the reason why, and another reason for the extreme temperatures, is it’s an El Nino year. El Nino also influences the tropical jet streams in the Northern and Southern Hemispheres.

El Nino typically causes a wet winter in California and in the southern states. Also, when the jet stream dips during El Nino, it tends to dip farther east, and the northeast can become bitterly cold.

How the Cold Can Benefit Certain Stocks

One reason why I am focused on these record low temperatures is because they can affect natural gas prices – and ultimately natural gas stocks – this winter.

Colder temperatures can have a dramatic impact on natural gas demand in the winter months. We not only need cold weather for natural gas demand to rise, but we also need the cold temperatures to spread to populated areas where a lot of people live (think Chicago, New York, Boston, London, Berlin, etc.). Last year, it was cold out west but not in the northeast. So, natural gas demand moderated, and prices plunged.

However, now that we’re experiencing record-low temperatures, natural gas prices should rise. In addition, any arctic cold blasts in the northeast, as well as in Europe, should help boost natural gas prices, too.

This bodes well for fundamentally superior natural gas companies.

Take Dorian LPG Ltd. (LPG), for example. Dorian LPG operates a fleet of “very large gas carriers,” or VLGCs, that primarily haul liquified petroleum gas around the world. The company’s fleet consists of 22 VLGCs, each with the capacity to carry 1.8 million cubic meters (cbm). Dorian LPG has offices in the U.S., U.K., Greece and Denmark; and it partners with several big-name oil companies, including BP p.l.c. (BP) and Shell PLC (SHEL).

I should add that Dorian LPG has been a major outperformer this year – surging nearly 124%. You can see the stock’s rise in the chart below:

In comparison, the S&P 500 and Dow are up about 19% and 8.5%, respectively.

So, what’s been behind Dorian LPG’s strength?

It’s not just because of the increasingly cold weather. It’s also because of Dorian LPG’s stunning fundamentals…

The reality is the stock has been on fire since the company reported results for its second quarter in fiscal year 2024 on November 2. Second-quarter adjusted earnings surged 336% year-over-year to $75.0 million, or $1.85 per share, up from $17.2 million, or $0.43 per share, in the second quarter of 2023. The analyst community only expected earnings of $1.80 per share. Second-quarter revenue increased 90.5% year-over-year to $144.7 million.

Since the earnings report, shares of LPG are up more than 21% – and they even hit a new 52-week high this past Monday.

I’m pleased to say that I recommended Dorian LPG in Accelerated Profits in February 2023, allowing my subscribers to capture much of the stock’s rise. It’s up about 82% since my initial recommendation.

Now, I should note that I didn’t pick Dorian LPG at random. I use my revolutionary software Computational Risk-Integrated System for Income Stability, or “C.R.I.S.I.S. Cash” for short.

At its core, C.R.I.S.I.S. Cash uses a series of artificial intelligence algorithms to constantly scour massive amounts of data looking for patterns. Many of these patterns are nonlinear, meaning you’re not going to be able to see them with the naked eye. But the more data you feed it, the more patterns it can spot.

It’s what led me to Dorian LPG in February, and it’s how I’ve been able to find stocks that allowed my Accelerated Profits Buy List to soar nearly 10% higher in November, versus the S&P 500’s 8.9% gain and the Dow’s 8.8% rise. Breaking it down further, 30 stocks posted double-digit gains between 10% and 67% over the past four weeks.

So, if you’re cold and your portfolio is cooling down, put on a jacket and join me at Accelerated Profits today. You’ll be able to warm up your portfolio with stocks that do well in the cold and can outperform the broader market.

(Already an Accelerated Profits member? Log in to the members-only website here.)

Sincerely,

Louis Navellier

P.S. Unless you’ve been living under a rock, you’ve seen how generative AI software like ChatGPT are exploding in popularity… and threatening to decimate many professions including: graphic design, computer programming and law.

But AI will have another victim… and, unfortunately, nobody sees it coming.

In a brand-new presentation, I revealed a revolutionary way to use AI that’s going to completely shake up one of America’s biggest industries.

If you think AI is dangerous, you’re going to want to click on this link below.

Go here now to view this brand-new presentation.

The Editor hereby discloses that as of the date of this email, the Editor, directly or indirectly, owns the following securities that are the subject of the commentary, analysis, opinions, advice, or recommendations in, or which are otherwise mentioned in, the essay set forth below:

Dorian LPG Ltd. (LPG) and Shell PLC (SHEL)

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The post How Record Cold Temperatures Could Heat Up Your Portfolio appeared first on InvestorPlace.

But these trends have now reversed. Stimulus programs long ago ran out, debt repayments have started up again and inflation is hitting hard. Add it all up and U.S. retail sales dipped into negative territory in October as consumers, facing higher credit card balances, seem to be pulling back.

This is hitting discretionary firms hard, with sectors such as luxury retail on the decline. But there should be a trade-down effect here that works to the benefit of more value-focused retailers. These are three leading discount retailer stocks that will take advantage of this trend.

Dollar General (DG)

Dollar General (NYSE:DG) is one of America’s large chains of dollar stores.

These have developed a proven appeal with people that are maximizing purchasing power. In addition, Dollar General has invested heavily in building out stores in rural areas where there is little competition. This has, in effect, given Dollar General something akin to a local monopoly in many smaller communities.

Despite Dollar General’s strengths, the company fell onto hard times over the past year. The labor shortage left many Dollar General stores understaffed which in turn led to a number of media scandals around store safety and cleanliness. In addition, profit margins dipped due to supply chain issues.

At the end of the day, however, Dollar General’s issues are fixable. And the softening economy should bring Dollar General’s core customer base back to the stores in droves next year. With DG stock down nearly 50% over the past year, investors can get in at an attractive 17 times forward earnings for this leading bargain retailer.

Walmart (WMT)

Here’s a fun fact. Out of the 30 stocks that make up the Dow Jones Industrial Average, Walmart (NYSE:WMT) was the only one whose stock went up between 2007 and March 2009. Put another way, Walmart was one of the only big blue-chip companies in America to produce a positive return during the onset of the 2008 Financial Crisis.

This success probably shouldn’t be too surprising. Walmart has unmatched expertise in brick-and-mortar sales and ground logistics. The company’s ruthless efficiency and unwavering commitment to everyday low prices has given Walmart an incredibly strong brand and competitive position.

Walmart is not the most glamorous shopping experience. But in times of economic duress and heightened inflation, Walmart’s appeal to bargain shoppers is unmatched.

Walmart has cautioned that it sees weaker consumer spending in 2024. That’s not surprising given the macroeconomic environment. Regardless, Walmart recently posted strong quarterly earnings and raised guidance. Investors can count on WMT stock to deliver the goods regardless of whether a recession starts next year.

Ross Stores (ROST)

Ross Stores (NASDAQ:ROST) is a leader discount apparel and home goods and fashion retailer.

In essence, Ross brings shoppers the outlet experience, but at convenient urban locations rather than out-of-the-way outlet centers.

Ross has a competitive advantage thanks to its large store base, with more than 2,000 operating locations across its various brands. In addition, it has strong merchandise sourcing and has developed a “treasure hunt” style atmosphere with large discounts versus full-price competitors.

In addition, other retailers’ struggles should benefit Ross. We’ve seen a number of rivals like Bed Bath & Beyond and Big Lots (NYSE:BIG) either go bankrupt or run into deep financial trouble. That should allow Ross to gain market share, and that’s doubly true in a recession when consumers look for the cheapest available shopping options.

On the date of publication, Ian Bezek held a long position in DG stock. The opinions expressed in this article are those of the writer, subject to the InvestorPlace.com Publishing Guidelines.

Ian Bezek has written more than 1,000 articles for InvestorPlace.com and Seeking Alpha. He also worked as a Junior Analyst for Kerrisdale Capital, a $300 million New York City-based hedge fund. You can reach him on Twitter at @irbezek.

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However, even to those who surpass expectations, the landscape isn’t much kinder. As we’ll explore, even stellar performers aren’t immune to market volatility. They, too, can face harsh reactions post-earnings beats.

This paradoxical scenario underscores the complexity and unpredictability of today’s financial markets, offering little to long-term investors. This dynamic environment presents a daunting challenge for investors. It compels them to navigate effectively through the tumultuous waters of corporate earnings.

Alphabet (GOOG,GOOGL)

Alphabet (NASDAQ:GOOG, NASDAQ:GOOGL) has established itself as a true giant through Google Search, cloud services, and generative AI.

The strategic move has paid off, with the firm’s third quarter revenue hitting an impressive $76.7 billion. The figures speak for themselves, resulting in a 22% increase in Google Cloud revenue and an 11% rise in Search revenue year over year (YOY). However, the real star has been YouTube, with ad revenue soaring to $7.95 billion, primarily due to generative AI integration.

Despite a brief dip in stock value post-Q3 announcements, Alphabet’s prospects remain remarkably bright. Moreover, with its continued investment in generative AI across all business segments, Alphabet efficiently leverages its whopping data capabilities. With an attractive price-earnings ratio of 26 times, Alphabet stands out as a prudent choice for investors eyeing growth in the AI sphere.

Abercrombie & Fitch (ANF)

Abercrombie & Fitch (NYSE:ANF) is a prominent apparel retailer based in New Albany, Ohio. Recently, it shared its third quarter financial results, coming in ahead of expectations across key metrics.

Despite a robust performance, the company’s stock experienced an 8% dip in price. Additionally, in a detailed financial breakdown, Abercrombie & Fitch reported a notable non-GAAP EPS of $1.83, exceeding estimates by 76 cents. Also, the company’s revenue climbed to $1.06 billion. That marks a significant 20.4% YOY bump while surpassing expectations by $77.6 million.

Furthermore, Abercrombie & Fitch has revised its net sales growth projection for 2023 to 12% to 14%, up from the previous estimate of 10%. This adjustment comes on the heels of earning $3.7 billion in 2022. Additionally, the company’s operating margin is now expected to be around 10%. That marks a stark improvement from the previously forecasted range of 8% to 9%. Also, with its stock trading at an attractive 5.7 times trailing twelve-month cash flows, Abercrombie & Fitch emerges as a compelling long-term investment opportunity.

Norwegian Cruise Line (NCLH)

Norwegian Cruise Line (NYSE:NCLH) presents an enticing opportunity for long-term investors, trading at an appealing three times forward cash flow.

The company’s third quarter performance reinforces its attractiveness, showcasing a robust financial standing. Moreover, it reported a non-GAAP EPS of 76 cents, exceeding estimates by eight cents. Furthermore, its revenue reached $2.54 billion, a massive 56.8% increase YOY, blowing past expectations by $30 million.

Norwegian Cruise Line demonstrates resilience and efficiency, essential qualities for long-term growth in a challenging industry. Notably, the firm achieved an impressive occupancy rate of 106% in the quarter, in line with its market forecasts. This performance underpins Norwegian’s projection of a full-year 2023 adjusted EBITDA of approximately $1.86 billion.

Despite external challenges, including the Maui wildfires and tensions in Israel, NCLH’s ability to navigate rough waters reaffirms its position as a desirable stock. Post announcement of these encouraging earnings results, NCLH stock is down 3.7%, suggesting a potential upside for those looking to invest.

On the date of publication, Muslim Farooque did not have (either directly or indirectly) any positions in the securities mentioned in this article. The opinions expressed in this article are those of the writer, subject to the InvestorPlace.com Publishing Guidelines.

Muslim Farooque is a keen investor and an optimist at heart. A life-long gamer and tech enthusiast, he has a particular affinity for analyzing technology stocks. Muslim holds a bachelor’s of science degree in applied accounting from Oxford Brookes University.

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The October Personal Consumption Expenditures Report was released this morning. It includes the Federal Reserve’s preferred inflation gauge, the PCE price index. That index rose just 3% year-over-year last month, below estimates for a 3.1% increase and significantly down from the 3.4% rise reported in September.

In other words, inflation rates are falling significantly right now.

They are projected to keep falling, too. The Cleveland Fed’s Inflation Nowcasting model predicts the PCE inflation rate dropping to 2.8% next month. It also sees the core PCE inflation rate decreasing, confirming that disinflation is returning.

That’s important because inflation has been the nemesis of the stock market over the past two years.

Ever since late 2021, the paths of inflation and stocks have been inversely correlated.

When inflation rose in the first half of 2022, stocks fell.

When inflation dropped in the second half of 2022 and the first half of 2023, stocks rose.

When inflation rose again in late summer 2023, stocks fell again.

Now that inflation is falling again in late 2023, stocks are rising again.

The story of the stock market over the past two years is shockingly simple: When inflation rises, stocks fall; when inflation falls, stocks rise.

Right now, inflation is falling, and stocks are rising. Inflation is projected to continue falling in December and into early 2024.

That means stocks are likely to keep rising as well.

It’s time for you to join this rally.

But if you’re tired of the stock market’s seesawing — up one day, down the next — then I have a unique investment opportunity for you. This opportunity does not involve daily volatility and potentially yields far greater returns.

It’s the same investment opportunity Elon Musk used to become a millionaire during the Dot-Com Boom.

And now, you too can capitalize on it in the early days of the AI Boom.

Seize this chance! Discover more about this unparalleled investment opportunity.

On the date of publication, Luke Lango did not have (either directly or indirectly) any positions in the securities mentioned in this article.

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Even better, it could lead to “a revolution for humanity bigger than fire, bigger than the wheel,” according to Haim Israel, Head of Global Thematic Investing Research at Bank of America, as quoted by Barron‘s. Plus, according to Fortune Business Insights, the market – currently valued at about $717.3 million could grow to $6.52 billion by 2030. 

Again, much like we saw with AI so far, there’s big excitement with quantum computing. All of which could lead to substantial gains for stocks, including:

Quantum Computing Stock 101: IonQ (IONQ)

The first time I mentioned IonQ (NYSE:IONQ), it traded at just $4.56 on March 13. Today, after hitting a high of $19.68, it trades at $12.45, with plenty of upside potential. 

All thanks to a booming quantum computing market, which could fuel big upside for quantum computing stocks. Granted, the company’s Q3 EPS of 22 cents missed by seven cents, and Q3 bookings did fall from $28 million to $26.3 million quarter over quarter.

However, revenues were up 121% year over year to $6.1 million, which beat by $1.1 million. Also, IONQ increased its full-year revenue guidance to $21.2 million to $22 million from prior guidance for $18.9 million to $19.3 million. Better, full-year bookings are expected to come in between $60 million and $63 million from prior guidance of $49 million to $56 million.

Rigetti Computing (RGTI)

There’s also Rigetti Computing (NASDAQ:RGTI), a $153 million company that develops quantum integrated computers, and the superconducting quantum processors, as noted on the company’s website. 

Fueling interest, it was just awarded Phase 2 of a Defense Advanced Research Projects Agency (DARPA) Quantum Benchmarking Program to “develop benchmarks for quantum application performance on large-scale quantum computers,” as noted in a press release. Even better, it also signed a five-year Indefinite Delivery Indefinite Quantity contract with the Air Force Research Lab Information Directorate to supply its researchers with quantum foundry services.

Defiance Quantum ETF (QTUM)

Or, for solid diversification and low cost, look at the Defiance Quantum ETF (NYSEARCA:QTUM).

The last time I mentioned the QTUM ETF, it traded around $50. Now, after some wild volatility, it’s back to breakeven and still has plenty of upside potential. That’s especially true with the quantum computing market expected to explode higher.

With an expense ratio of 0.40%, the fund provides exposure to cloud computing, quantum computing, artificial intelligence, and machine learning stocks. Some top holdings include Ionq, Rigetti Computing, Intel (NASDAQ:INTC), Nvidia (NASDAQ:NVDA), and Applied Materials (NASDAQ:AMAT) to name a few. This is a great quantum computing stock to add to your portfolio.

On the date of publication, Ian Cooper did not hold (either directly or indirectly) any positions in the securities mentioned. The opinions expressed in this article are those of the writer, subject to the InvestorPlace.com Publishing Guidelines

Ian Cooper, a contributor to InvestorPlace.com, has been analyzing stocks and options for web-based advisories since 1999.

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Yesterday, the all-in-one personal finance platform announced that it would cease its cryptocurrency services beginning on Dec. 19. Existing customers will be given the option to transfer their account to Blockchain.com, while access to the creation of new cryptocurrency accounts on the platform has already been ceased.

A SoFi spokesperson stated that the decision was made due to Federal Reserve regulatory concerns. In addition, SoFi’s bank charter, which it received last year, was conditionally received on the terms that it would receive the needed approvals for its cryptocurrency services or end it completely. The Fed stated that SoFi’s cryptocurrency subsidiary, SoFi Digital Assets, was “engaged in certain crypto-related activities that the Federal Reserve has not found to be permissible for a bank holding company.”

Another factor was the Fed’s novel activities supervision program, which launched in August. The program increased scrutiny of cryptocurrency activities provided by banking organizations.

5 Investors Betting Big on SOFI Stock

Tracking institutional ownership is important, as these large investors provide liquidity and support for stocks. During the third quarter, 487 13F filers disclosed a stake in SOFI stock, a decline of 13 filers from the prior quarter. Seven of those filers own SoFi in their top 10 positions. In total, the filers own 345.49 million shares, down by 1.78% from 351.77 million shares when compared to the second quarter. Overall, aggregate institutional ownership of the company doesn’t appear to have significantly changed.

Hedge funds, which are included in 13F statistics, leaned more bearish. Total shares owned by hedge funds totaled 74.47 million shares, down by 9.33%. Generally, hedge funds carry a lower holding period than your average 13F filer.

With that in mind, let’s take a look at SoFi’s five largest shareholders as of the third quarter:

On the date of publication, Eddie Pan did not hold (either directly or indirectly) any positions in the securities mentioned in this article. The opinions expressed in this article are those of the writer, subject to the InvestorPlace.com Publishing Guidelines. 

Eddie Pan specializes in institutional investments and insider activity. He writes for InvestorPlace’s Today’s Market team, which centers on the latest news involving popular stocks.

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Among the other fields that quantum computing could significantly improve are artificial intelligence (AI), financial modeling and cybersecurity. Despite the vast potential, the value of most quantum computing stocks is quite low, allowing patient investors to generate huge profits as the technology matures. Such investors should consider snapping up these three quantum computing stocks, which appear to be tremendously undervalued.

Rigetti Computing (RGTI)

Rigetti Computing (NASDAQ:RGTI) “develops quantum computers and superconducting quantum processors,” along with “a quantum-computing-as-a-service platform adaptable for various cloud setups,” another InvestorPlace columnist, Matthew Farley, noted.

Impressively, the company was founded by Chad Rigetti, a “physicist and computer scientist” who developed quantum computing for IBM (NYSE:IBM) before launching his own company in 2013. Although Rigetti left his namesake firm earlier this year, he obviously left a tremendous imprint on it.

Rigetti Computing seems to be making significant progress, as it sold its first quantum processing unit in the second quarter, leading research firm Benchmark to predict the company will make similar, additional deals going forward. Indeed, RGTI delivered another QPU last quarter.

Praising the ease of use of RGTI’s offerings, Benchmark raised its rating on the shares to Buy from Hold and placed a $4 price target on the name versus its current price of just over $1.

Another big achievement by the company was its attainment of a five-year deal to provide the Air Force Research Lab with the ability to create “customized quantum systems.”

The market capitalization of RGTI is just $150 million, a level that vastly undervalues the company’s long-term potential.

D-Wave Quantum (QBTS)

D-Wave Quantum (NYSE:QBTS) has reportedly created “the first quantum computer ready for industrial applications,” giving it an important, first-mover advantage in the space.

And somewhat validating D-Wave and its technology, the company has several very impressive customers, including Volkswagen (OTCMKTS:VWAGY), Toyota (NYSE:TM), Lockheed Martin (NYSE:LMT) and Japanese auto parts maker Denso (OTCMKTS:DNZOY).

Moreover, in the first three quarters of the year, D-Wave’s bookings jumped 125% year-over-year to $8.4 million, while its “Average Deal Size per booking increased by 172% for commercial customers and 178% for all customers when comparing the most recent four quarters with the immediately preceding four quarters.”

Given D-Wave’s rapid growth and huge potential, its $134 million market capitalization is clearly quite low, making it one of the best quantum computing stocks to buy.

Arqit Quantum (ARQQ)

Arqit Quantum (NASDAQ:ARQQ) developed a “quantum encryption” system that’s “unbreakable” and can, relatively cheaply, protect “every edge device and cloud machine in the world,” according to Seeking Alpha columnist Jay Capital.

He and many other commentators predicted that quantum computers will be able to hack Public Key Infrastructure (PKI) systems over the longer term. PKI is currently the most popular means of protecting data. As a result, new methods of protecting data will have to be found, and ARQQ appears to have a first-mover advantage in that area.

Among ARQQ’s customers are the “U.K. Government [and] the European Space Agency,” along with BT Group, a huge British telecom company and Sumitomo (OTCMKTS:SSUMY), a Japanese conglomerate.

Among those testing the product are Verizon (NYSE:VZ), BP (NYSE:BP) and Northrup Grumman (NYSE:NOC).

Arqit looks poised to become a gigantic cybersecurity company, and almost none of that potential is reflected in its current market capitalization of $82 million.

On the date of publication, Larry Ramer did not hold (either directly or indirectly) any positions in the securities mentioned in this article. The opinions expressed are those of the writer, subject to the InvestorPlace.com Publishing Guidelines.

Larry Ramer has conducted research and written articles on U.S. stocks for 15 years. He has been employed by The Fly and Israel’s largest business newspaper, Globes. Larry began writing columns for InvestorPlace in 2015. Among his highly successful, contrarian picks have been PLUG, XOM and solar stocks. You can reach him on Stocktwits at @larryramer.

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This all bodes well for the companies that specialize in the design and manufacture of the microchips and semiconductors that power the most advanced artificial intelligence models and platforms. Here are three must-own stocks as demand for AI chips soars.

Taiwan Semiconductor Manufacturing Co. (TSM)

Few if any companies are as important to AI microchips as Taiwan Semiconductor Manufacturing Co. (NYSE:TSM). The company, which is based in Taiwan, makes nearly three-quarters (75%) of all the microchips and semiconductors in the world. It has a near-monopoly position when it comes to fabricating chips and semis. While there are some political risks involved in TSM stock with China’s sovereign claims over Taiwan, they don’t take away from this company’s huge growth potential.

There’s an opportunity to buy TSM stock right now as it has retreated 11% from its 52-week high since the summer of this year and is currently trading 30% below the all-time high its shares reached in January 2022. For a tech company with a nearly half trillion dollar market cap, Taiwan Semi’s valuation looks cheap right now with the stock trading at 17 times future earnings estimates. And TSM stock pays a decent dividend of 46 cents per share each quarter, for a yield of 1.85%.

The median price target on TSM stock is 16% higher than where the shares currently trade.

Intel (INTC)

Hoping to give Taiwan Semiconductor a run for its money in the microchip production business is Intel (NASDAQ:INTC). The company is spending billions of dollars with the goal of becoming the second largest chip foundry by 2030, behind TSMC. While Intel is investing huge sums of money to achieve its ambitions, the company’s latest financial results seem to suggest that the gamble is starting to pay off. INTC stock rose 7% in one day following the company’s Q3 print.

For this year’s third quarter, Intel reported earnings of 41 cents per share versus 22 cents that had been expected. Revenue amounted to $14.16 billion versus $13.53 billion that was anticipated. Company executives reiterated plans to cut costs by $3 billion this year and stressed that operating expenses were 15% lower than a year ago. The company’s foundry unit remains a small part of Intel’s overall business. However, the foundry business’ sales grew nearly 300% from a year ago to reach $311 million in Q3.

During an earnings call with analysts and media, Intel’s management team said that the company is on track to catch up with Taiwan Semiconductor’s chipmaking technology by 2025. INTC stock has gained 68% this year.

Arm Holdings (ARM)

Now for the new kid on the block. That would be Arm Holdings (NASDAQ:ARM). Not only are the British company’s microchips found in nearly every smartphone on the planet, but it just recently unveiled a new new Cortex-M52 processor that’s capable of running AI applications on the smallest Internet of Things (IOT) devices. Arm Holdings has also established a partnership with Nvidia (NASDAQ:NVDA), the world’s leading AI chip designer to develop chips for personal computers.

Arm only went public in September of this year. And while its stock has pulled back since its heavily hyped initial public offering (IPO), there’s reason to be optimistic about the company and the future of its stock. Arm’s first earnings report as a publicly traded concern contained some encouraging numbers. If nothing else, Arm is already profitable, which is more than can be said for most companies that go public these days.

The company reported earnings per share (EPS) of 36 cents, which was in line with analyst forecasts. Revenue totaled $806 million versus $744.3 million that was expected. The company’s revenue was up 28% from a year earlier, and Arm boasted that it sold more than 7.1 billion microchips during Q3 of this year. Since its market debut, ARM stock has gained 2%.

On the date of publication, Joel Baglole held long positions in NVDA and MSFT. The opinions expressed in this article are those of the writer, subject to the InvestorPlace.com Publishing Guidelines.

Joel Baglole has been a business journalist for 20 years. He spent five years as a staff reporter at The Wall Street Journal, and has also written for The Washington Post and Toronto Star newspapers, as well as financial websites such as The Motley Fool and Investopedia.

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To begin, Snowflake — which offers cloud-based data storage and analytics under a business model often labeled as Data as a Service (DaaS) — disclosed adjusted earnings per share of 25 cents, up 127% year-over-year (YOY). In contrast, analysts covering SNOW stock anticipated EPS to hit 16 cents.

On a GAAP basis, the technology specialist reported a loss of 65 cents compared to a loss of 63 cents a year earlier. However, the Street expected the company to post a loss of 76 cents. However, investors paid more attention to the revenue tally of $734.2 million, representing a 32% YOY lift. Further, this haul beat the consensus target of $713.8 million.

Encouragingly, William Blair analyst Jason Ader noticed that management echoed commentary from its software and cloud peers regarding stabilization trends in customer consumption. As well, the company’s growth in September exceeded expectations.

Specifically, Blair cited expansions within Snowflake’s largest customers as catalysts for the consumption improvement. Said consumption centers on optimization initiatives and renewed interest in migrating away from legacy data warehouses.

Investment and Speculative Interests Boost SNOW Stock

Looking ahead to the fourth quarter, Snowflake anticipates product revenue to land between $716 million to $721 million. On the other hand, analysts had previously anticipated $696 million. Naturally, the improved top-line outlook helped fire up SNOW stock. Significantly, management stated that the company has 436 customers with trailing 12-month (TTM) product revenue greater than $1 million.

Also, on a fundamental level, Reuters mentioned that Snowflake is pushing further into artificial intelligence (AI). Management stated that spending on cloud-related software has been on the rise as enterprises look to adopt AI-linked applications. Given the greater interest in generative AI, Gartner’s projections of 20.4% growth in public cloud services may be reasonable.

To that end, several institutional investors back SNOW stock. The five largest supporters based on an increase in holdings based on the latest Form 13F disclosures are as follows:

• Fidelity Investments increased its holdings by nearly 1.5 million shares.
• Winslow Capital Management increased its holdings by 1.48 million shares.
• Holocene Advisors increased its holdings by 1.26 million shares.
• Vanguard Group increased its holdings by 743,211 shares.
• Citadel Advisors increased its holdings by 735,000 shares.

Additionally, bullish options traders find themselves in a favorable position. Specifically, Fintel’s options flow data shows that earlier, institutional investors sold call options that are either in the money (ITM) for call buyers or near ITM.

In other words, bearish positions are getting blown up or are about to. That may fuel speculation for short-covering tactics, which may add further upside pressure to SNOW stock.

Why It Matters

According to TipRanks, analysts rate SNOW stock as a consensus strong buy. This assessment breaks down as 25 buys and five holds. Overall, the average price target lands at $215.63, implying about 16% upside from the time of writing.

On the date of publication, Josh Enomoto did not have (either directly or indirectly) any positions in the securities mentioned in this article. The opinions expressed in this article are those of the writer, subject to the InvestorPlace.com Publishing Guidelines.

A former senior business analyst for Sony Electronics, Josh Enomoto has helped broker major contracts with Fortune Global 500 companies. Over the past several years, he has delivered unique, critical insights for the investment markets, as well as various other industries including legal, construction management, and healthcare. Tweet him at @EnomotoMedia.

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Tech stocks in the Nasdaq index have been on a bit of a bender since the end of October. Investors might collectively believe strongly in marquee names. True, Nvidia (NASDAQ:NVDA) or Amazon (NASDAQ:AMZN) still have the potential to surge higher.

Beyond the big names, investors should focus on the smaller tech stocks. These companies have favorable enterprise value-to-market cap ratios, with many are witnessing explosive top-line revenue growth.

Also, they’re likely to benefit from a considerable rise in their stock prices amid the entire market moving higher. But these stocks now when they can be scooped up at a relative bargain compared to their likely January price.

So, for investors in the market to buy tech stocks, let’s examine three now.

Cerence (CRNC)

Cerence (NASDAQ:CRNC) is a little-known AI stock making waves. CRNC stock specializes in voice recognition and natural language understanding. These technologies have broad current applications in products we use today.

Amazon’s Alexa is one example. But in the future, this tech could be used in high-end electric vehicles, such as Tesla (NASDAQ:TSLA).

Aside from CRNC’s catalysts for future growth, more supporting evidence suggests its stock price could take flight soon. Specifically, its revenue surged by 38.9% to $80.76 million last quarter. Additionally, its EPS was positive at $0.09, up from -$0.14 one year ago. These metrics have outperformed many peer companies, which suggests it could also be undervalued based on these metrics.

Regarding CRNC’s undervaluation, analysts’ consensus price target is $26.14, or 45.79% higher than the current price. Also, unlike most other tech stocks, CRNC is presently cash flow positive, which reduces its downside risk.

Therefore, there’s good reason to buy CRNC now based on its fundamentals before it becomes more expensive later.

Enphase Energy (ENPH)

If you’re after a tech stock operating in the renewable energy sector, then Enphase Energy (NASDAQ:ENPH) is your pick. ENPH stock specializes in the production of microinverters. These devices plug into solar panels to convert direct current to alternating current to power household products.

Some cursory glances at discount cash flow models suggest the stock is considerably undervalued. Of course, a large part of the reason it’s cheap is because it has been caught up in some controversy. ENPH seemed caught up in the over-enthusiasm for growth and meme stocks, and its valuation detached from its fundamentals. This occurred around the same time revenue growth slowed, but its top line remains firm year over year (YOY).

Still, despite its possibly temporary slowdown, its margins are improving through cost-cutting measures. And, it is presently cash flow positive with high revenue per employee. With the stock slipping 60% year to date (YTD), it could be poised to recover sharply in December.

Appian Corporation (APPN)

Appian Corporation (NASDAQ:APPN) is another tech stock that may rally near the end of the year. AAPN stock allows startups and entrepreneurs to develop applications using artificial intelligence (AI) quickly.

A key benefit of its offering allows companies to quickly build data workflows without expensive, risky overhead of maintaining large development teams.

Another way of thinking about APPN is its connection of customer databases and workflows with AI. This allows them to be controlled and interfaced in practical and creative ways.

Also, APPN is a standout pick for a stock that could rally because it’s trading near a new yearly low. Therefore, it could be undervalued on a momentum basis. Also, analysts’ average price target is $48.33, a 33.36% increase from the current price. Hence, the market seems to agree it’s due for an upward correction.

Also, other factors support the bull case. Those include $525.83 million revenue, future growth forecast of 18.85% over the next five years, and a robust gross margin of 72.57%.

On the date of publication, Matthew Farley did not have (either directly or indirectly) any positions in the securities mentioned in this article. The opinions expressed are those of the writer, subject to the InvestorPlace.com Publishing Guidelines.

Matthew started writing coverage of the financial markets during the crypto boom of 2017 and was also a team member of several fintech startups. He then started writing about Australian and U.S. equities for various publications. His work has appeared in MarketBeat, FXStreet, Cryptoslate, Seeking Alpha, and the New Scientist magazine, among others.

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First off, Salesforce — which provides customer relationship management (CRM) software and applications — grabbed business headlines for its earnings print. In Q3, the company posted EPS of $2.11 according to CNBC, which stands favorably next to the analyst expectation for EPS of $2.06. For revenue, the software specialist also rang up $8.72 billion, matching the consensus view.

Notably, revenue increased 11% from the year-ago quarter’s tally of $7.84 billion. However, as CNBC points out, Salesforce has historically expanded the top line by “well over 20%” annually. Unfortunately, the firm’s growth rate slipped due to businesses looking to “reduce spending due to economic uncertainties and high interest rates.”

That said, Salesforce did see revenue pop up by 12% to $2.07 billion in its biggest business unit, which covers customer support. Software sales increased by 12% to $1.9 billion as well. Looking ahead, management now foresees full-year adjusted EPS landing between $8.18 and $8.19, up from a prior forecast of between $8.04 and $8.06.

Two Catalysts Undergird CRM Stock

In an interview with Barron’s, Salesforce Executive Vice President for Investor Relations Mike Spencer said that the company enjoyed a strong quarter in the Americas, helped by “a large deal.” At the same time, Spencer remarked that the firm encountered something of a dichotomy: Weak tech-sector demand and strong public-sector demand.

Nevertheless, Spencer also said that the company’s conversations with its customers reflected a “more optimistic tone” about the economic outlook. Further, Salesforce has witnessed “early adoption of its new data-cloud offering,” with some clients beginning to test artificial intelligence (AI) based application features.

Given the broader strategic implications of AI — which, by Spencer’s admission, will take some time to materialize — it’s no surprise that CRM stock enjoys institutional support. Below are top five backers of CRM based on 13F disclosures:

• Vanguard owns 82.38 million shares as of Q3 2023.
• BlackRock (NYSE:BLK) owns 70.80 million shares as of Q3.
• State Street (NYSE:STT) owns 44.17 million shares as of Q3.
• FMR LLC owns 36.07 million shares as of Q3.
• Capital World Investors owns 19.10 million shares as of Q3.

However, CRM stock appears to be benefiting from near-term speculation as well. Specifically, Fintel’s screener for options flow — which exclusively targets big block transactions likely made by institutions — reveals a large number of sold calls that are in the money (ITM) for the countervailing party (i.e. bullish call buyers) or near ITM.

To cover this exposed liability, call writers (sellers) basically have two choices: Buy the calls in question or buy the underlying security in the open market (especially if the position is naked). Either way, the bulls are likely anticipating a tactical bonanza.

Why It Matters

Within the last three months, Wall Street analysts rate CRM stock as a consensus moderate buy. This assessment breaks down as 26 buys, 12 holds and one sell rating. The average price target for shares lands at $271.97, implying about 9% upside potential.

On the date of publication, Josh Enomoto did not hold (either directly or indirectly) any positions in the securities mentioned in this article. The opinions expressed in this article are those of the writer, subject to the InvestorPlace.com Publishing Guidelines.

A former senior business analyst for Sony Electronics, Josh Enomoto has helped broker major contracts with Fortune Global 500 companies. Over the past several years, he has delivered unique, critical insights for the investment markets, as well as various other industries including legal, construction management, and healthcare. Tweet him at @EnomotoMedia.

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ACM Research (ACMR)

ACM Research (NASDAQ:ACMR) is a leading supplier of wet processing equipment and technologies for the semiconductor industry. Semiconductor manufacturers use ACM’s wet-cleaning and front-end processing tools to produce higher yields in their manufacturing processes. The company focuses on China, where it conducts most of its product development, manufacturing and support services. Though China is still enduring a slower-than-expected economic recovery, innovations within its semiconductor industry have been one of the bright spots, and ACM certainly stands to benefit.

Wall Street analysts have looked upon ACMR fondly. According to Koyfin, the stock currently has a “strong buy” rating. The stock only trades at 17.0x forward earnings, which is not cheap but also far from semiconductor equipment peers, including Cohu (NASDAQ:COHU) and Veeco Instruments (NASDAQ:VECO).

Super Micro Computer (SMCI)

Super Micro Computer (NASDAQ:SMCI) is a global leader in high-performance server solutions for enterprise, cloud, data center and edge computing. The company offers a wide range of products, such as servers, storage systems, networking devices and software solutions that are customized to meet the specific needs of its customers. In recent years, Super Micro Computer has benefited from the increasing demand for cloud infrastructure and data processing capabilities, generating strong, double-digit revenue growth in their fiscal years 2022 and 2023.

In their first quarter of fiscal 2024 earnings print, which ended in September 2023, the company beat both revenue and net income estimates. Furthermore, Super Micro Computer’s end-markets, which include AI and 5G applications, will be in high demand for years to come, resulting in analysts giving the company a “strong buy” rating.

Camtek (CAMT)

Camtek (NASDAQ:CAMT) is a leading inspection and metrology equipment manufacturer for the semiconductor industry. The company’s products enable chipmakers to detect defects and measure the critical dimensions of wafers and circuits during manufacturing. Robust demand for semiconductors, especially from the memory and advanced packaging segments, has benefitted Camtek’s top-line growth for many years.

However, in 2023, the company has definitely hit a speed bump as the chip slump has negatively affected many semiconductor companies (albeit some more than others) this year. During the third quarter, for example, the company reported only a 2% decline in revenue from a year-over-year perspective. However, analysts seem optimistic about Camtek’s long-term potential, as the stock maintains a “strong buy” rating.

Moreover, as the chip slump appears to be approaching an end, Camtek could see more growth next year.

On the date of publication, Tyrik Torres did not have (either directly or indirectly) any positions in the securities mentioned in this article. The opinions expressed in this article are those of the writer, subject to the InvestorPlace.com Publishing Guidelines.

Tyrik Torres has been studying and participating in financial markets since he was in college, and he has particular passion for helping people understand complex systems. His areas of expertise are semiconductor and enterprise software equities. He has work experience in both investing (public and private markets) and investment banking.

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The average dividend yield among companies listed on the benchmark S&P 500 index stood at 1.63% on the last trading day of September this year. Real-estate and utilities stocks continue to offer the highest dividend yields among the S&P 500’s 11 subsectors at 3.89% and 3.72%, respectively.

Dividend payouts in Q3 got a lift from the $3.1 billion dividend initiation of T-Mobile (NASDAQ:TMUS), and a $2.1 billion increase to the dividends paid by tech giant Microsoft (NASDAQ:MSFT). Many other companies have either raised their regular dividend payments, issued a special one-time dividend or announced plans to offer a dividend for the first time in recent weeks.

But if you can only buy one dividend stock in December, it better be one of these three names.

General Motors (GM)

On the day of this writing, General Motors (NYSE:GM) announced that it is raising its quarterly dividend payment to stockholders by 33% to 12 cents a share starting in 2024. The dividend hike will take the Detroit automaker’s dividend yield up close to 2%. News of the dividend increase, along with a $10 billion stock buyback, sent GM stock up 11% in a single trading session, its biggest one-day move in more than a year. The company also reinstated its 2023 earnings guidance.

The dividend increase is aimed at helping GM regain the confidence of investors after a labor strike by the United Auto Workers (UAW) union that cost the automaker $800 million in lost vehicle production and led to an expensive new collective agreement. The strike was the latest issue to weigh on GM stock, which has been a chronic underperformer and is now trading at the same level it was at a decade ago. That said, at only four times future earnings estimates, the shares look undervalued right now.

Ryanair Holdings (RYAAY)

Earlier in November, Irish airline Ryanair (NASDAQ:RYAAY) announced that it will pay its first ever dividend to shareholders following record results that saw its profit increase nearly 60%. The carrier said it would spend 400 million euros (US$440 million) on dividend payments in 2024, making the payments to shareholders in February and September. The dividend payment for the entire year works out to 1.57 euros (US$1.72) per share.

Ryanair said it plans to return 25% of its after-tax profits to stockholders in the form of dividend payments. The inaugural dividend comes after Ryanair posted a record profit of 2.18 billion euros (US$2.39 billion) for the six months ended Sept. 30. The company attributed the strong result to airfares that rose 24% during the summer. Ryanair’s latest profit was 59% higher than a year earlier. RYAAY stock jumped 10% in one day on news of the dividend payment. The shares are now up 60% on the year.

HSBC Holdings (HSBC)

HSBC Holdings (NYSE:HSBC) announced that it will pay its shareholders a special dividend after the bank reported that its third-quarter profit rose 135% from a year earlier. The London-based lender said that its Q3 after tax profit totaled $6.26 billion, up from $2.66 billion in the same period of 2022. Europe’s largest bank attributed the profit increase to higher interest rates charged on its loans. Consequently, HSBC’s board of directors approved a special one-time dividend payment of 10 cents per share.

The bank also said that it will initiate a new share buyback program worth $3 billion, which is to be completed by the end of February 2024. In the past year, HSBC has undertaken three share buybacks totaling $7 billion, as well as three special dividend payouts that total 30 cents a share. This is on top if its regular quarterly dividend payment of 66 cents per share. The combined regular and special dividend payments have given HSBC a sky high annual dividend yield of 7%, making it a dividend stock to own.

Over the past 12 months, HSBC’s stock has increased 25%.

On the date of publication, Joel Baglole held a long position in MSFT. The opinions expressed in this article are those of the writer, subject to the InvestorPlace.com Publishing Guidelines.

Joel Baglole has been a business journalist for 20 years. He spent five years as a staff reporter at The Wall Street Journal, and has also written for The Washington Post and Toronto Star newspapers, as well as financial websites such as The Motley Fool and Investopedia.

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AMC wasn’t the only movie theater company to receive a price target reduction. Macquarie also lowered its target for Cinemark Holdings (NYSE:CNK) to $21 and its target for IMAX (NYSE:IMAX) to $25.

AMC Stock: Macquarie Lowers Price Target, Issues 2024 Box Office Warning

For 2024, Macquarie doesn’t expect any film to generate more than $300 million in sales. The firm also provided a list of movies that are expected to sell well next year, such as Deadpool 3, Mufasa: The Lion King and Joker 2.

Meanwhile, Macquarie “remains comfortable” with its fourth quarter box office estimate of $2 billion. For 2024, the firm forecasts $8.9 billion in sales, reflecting a 2% decline from its estimated 2023 numbers and a 22% decline compared with 2019.

B. Riley analyst Eric Wold also recently provided his thoughts on AMC with a much higher price target. Earlier this month, he lowered his fourth-quarter box office estimate to $1.878 billion from $2.167 billion. That would bring his 2023 box office estimate to $8.927 billion from $9.216 billion. For 2024, he expects box office revenue of $8.609 billion, down by a significant 10.5% from his prior estimate of $9.617 billion. He also lowered his 2025 estimate to $9.920 billion from $10.299 billion. His 2025 estimate is about 87% of pre-pandemic levels as some movie-goers shift to streaming and other readily available entertainment channels.

The analyst still remains “positive” about the industry:

“With our view that moviegoing demand remains strong in the post-pandemic era and that a hiccup in 2024 is only a reflection of strike-driven production delays, we remain positive on the outlook for the industry.”

Wold carries a “neutral” rating on AMC with a price target of $15, implying an upside of about 120%.

On the date of publication, Eddie Pan did not hold (either directly or indirectly) any positions in the securities mentioned in this article. The opinions expressed in this article are those of the writer, subject to the InvestorPlace.com Publishing Guidelines. 

Eddie Pan specializes in institutional investments and insider activity. He writes for InvestorPlace’s Today’s Market team, which centers on the latest news involving popular stocks.

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It is very important not to get drawn into companies just because they are experiencing a significant increase in their share price. It’s best to research a stock and see how it has traded in the past and its future outlook before putting money into a company that may have reached its peak.

Below are three companies that, in my opinion, are overbought now. And investors should look to avoid them.

Walt Disney Company (DIS)

Walt Disney (NYSE:DIS) is an entertainment company that owns a number of television and film studios, including Freeform, FX, Fox, National Geographic, A&E, Pixar, Lucasfilm, Marvel, 20th Century, ESPN, and ABC. The company also operates streaming platforms known as Disney+ and Hulu. Disney also has an experiences segment that includes theme parks such as Disney World Resort, Disneyland Resort, Disneyland Paris, and Shanghai Disney Resort.

Since late November of 2022, the stock has fallen by 2%. On November 8, they released their earnings for the fourth quarter and full-year fiscal 2023. It stated that its net income more than doubled, and its revenue grew 5% year-over-year. But, their operating income for their entertainment segment has fallen by 32% in fiscal year 2023 compared to 2022. And their experiences segment has grown by 23% within the same time period.

In its most recent earnings report, some of its numbers, like revenue and net income, look promising. Still, looking deeper, it’s clear that its experiences segment props them up like its theme parks, and its segment for movies, TV shows, and streaming services could be performing better. This makes Disney somewhat unpredictable as to their future, and investors should tread carefully.

Coinbase Global (COIN)

Coinbase (NASDAQ:COIN) operates as an infrastructure company for cryptocurrency. The company offers a platform to trade cryptocurrency and financial accounts and assists users.

Year-to-date, Bitcoin is soaring; it has seen an increase of 127%, which leads investors to purchase shares of companies affiliated with cryptocurrency, such as Coinbase. The company’s earnings report for the third quarter came out on November 2. It stated that total revenue grew by 14% year-over-year. The company reported a net loss shrank from $545 million in Q3 2022 to $2 million in Q3 2023.

Investors have renewed interest in Coinbase following the spike in cryptocurrency prices. They have seen their stock nearly quadruple year-to-date. And who knows how much higher their share price will climb. With the overall uncertainty surrounding the future of cryptocurrency and the fact that Coinbase has been a very violated stock since its inception and during 2022, it lost nearly 90% of its value from the bearish outlook for crypto at the time.

Snap (SNAP)

Snap (NYSE:SNAP) is a social technology company that owns and operates Snapchat, a popular visual messaging application.

The company has seen its share price rise by approximately 47%, primarily due to the growth of its active user base. In their third-quarter report, their daily user grew by 12% year-over-year to just over 400 million. But, their most recent earnings report, which was released on October 24, stated a drop increase in revenue of 5%, and their net loss grew by 2% compared to the year before.

Their financial situation is definitely not ideal, with very minimal growth and a persistent issue with profitability. Snap is also a very volatile company, and even with the recent growth, they are still trading at nearly 90% of what they were trading at just two years earlier. Snap looks like a very overbought company that will likely fall back to earth soon.

As of this writing, Noah Bolton did not hold (either directly or indirectly) any positions in the securities mentioned in this article. The opinions expressed in this article are those of the writer, subject to the InvestorPlace.com Publishing Guidelines.

Noah has about a year of freelance writing experience. He’s worked with Investopedia dealing with topics such as the stock market and financial news.

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The end of earnings season tends to be a particularly opportune time to pick-up beaten down stocks on the cheap as the share prices tend to fall sharply in the short term if a company misses Wall Street expectations and the market overreacts. Here are three cheap stocks to buy today.

Ford Motor (F)

Ford Motor (NYSE:F) may have resolved its labor dispute with the United Auto Workers (UAW) union, but that hasn’t helped its stock. At least not yet. F stock is down 22% over the last year, including a 15% decline in the past six months. However, the stock is now trading at just seven times future earnings estimates, making it look historically undervalued. The automaker also pays its stockholders a quarterly dividend of 15 cents a share for a yield of 5.63%.

To be sure, Ford has some work ahead of it to recover from the UAW strike, which lasted six weeks and cost the company an estimated $1.3 billion in lost production. Citing the financial uncertainty of the strike, Ford pulled its forward guidance for the remainder of this year. The company has also delay about $12 billion in previously announced electric vehicle investments. All that said, the end of the UAW strike removes uncertainty for Ford and the company can now rebuild. F stock looks cheap at current levels.

Dick’s Sporting Goods (DKS)

Retailer Dick’s Sporting Goods’ (NYSE:DKS) got a nice bounce higher after its recent Q3 print, beating Wall Street estimates on the top and bottom lines. However, DKS stock still trades 16% below its 52-week high and is changing hands at just 11 times future earnings estimates, which is less than half the average price-to-earnings (P/E) ratio of 24.59 among S&P 500 listed companies. Dick’s too pays a strong quarterly dividend of $1 per share, giving it a healthy yield of 3.13%. Earlier this year, the dividend was doubled.

The Q3 results represented a bounce back quarter for Dick’s Sporting Goods, with the company announcing earnings per share (EPS) of $2.85 versus $2.44 that had been expected. Revenue came in at $3.04 billion compared to $2.94 billion that was forecast. Sales rose nearly 3% from a year earlier. Looking forward, Dick’s said it now expects EPS of $11.45 to $12.05 for all of this year, ahead of Wall Street views. The company even said that it’s “excited” for the holiday shopping season.

HP (HPQ)

For a cheap tech stock, checkout HP (NYSE:HPQ). The personal computer (PC) manufacturer’s stock is currently trading at just eight times future earnings estimates. Most tech stocks the size of HP trade for five times that valuation. The company’s P/E ratio has been brought lower as HPQ stock has stagnated. Over the last 12 months, the share price is flat (up 0.59%). However, the stock is currently trading 15% below its 52-week high.

Like the other names on this list, HP is notable for paying a high-yielding dividend. The company currently rewards stockholders with a quarterly payout of 28 cents a share, giving it a yield of 3.80%. Considering that most tech stocks pay no dividend, HP’s reimbursement looks very attractive. The company recently caught the attention of investors when it said that it sees a turnaround coming in 2024, with the global PC market expected to return to growth after slumping coming out of the pandemic.

On the date of publication, Joel Baglole did not have (either directly or indirectly) any positions in the securities mentioned in this article. The opinions expressed in this article are those of the writer, subject to the InvestorPlace.com Publishing Guidelines.

Joel Baglole has been a business journalist for 20 years. He spent five years as a staff reporter at The Wall Street Journal, and has also written for The Washington Post and Toronto Star newspapers, as well as financial websites such as The Motley Fool and Investopedia.

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However, you may want to consider which of these names are in the “Green Zone.”

TradeSmith offers investors valuable tools for determining which stocks to watch. A good example is its Health Indicator feature. This comprehensive indicator provides an overall rating of a stock’s current health.

Using this metric, you can quickly find potential opportunities to explore. Broken down into three “zones” (green, yellow, and red), you’ll have a general idea about whether it’s best to be bullish, bearish, or neutral on a particular stock.

As you may have guessed, stocks in the “Green Zone” are performing well, with little indication that the trend is on the verge of shifting.

A stock in the “Yellow Zone” has corrected by more than 50% of its volatility quotient (VQ), a proprietary TradeSmith metric that helps measure a stock’s risk. When a stock in your portfolio goes from green to yellow, it may be a good time to reassess whether to maintain the position.

Stocks entering the “Red Zone” have corrected by more than their calculated volatility quotient. VQ can be useful when adding stop losses to your positions. View any move into the “Red Zone” as a warning sign to exit your position for now.

With this, let’s take a look at three stocks to buy, each of which is currently in the ‘Green Zone.”

UiPath (PATH)

UiPath (NYSE:PATH) has been in the “Green Zone” for over 10 months. During this time frame, shares in this robotic process automation (or RPA) software provider have steadily climbed higher. Even as the market has been on the fence whether the rise of generative AI helps or hurts the company’s prospects, factors like strong quarterly results have helped to weigh investor sentiment toward bullishness.

The next big event for PATH is set to happen on Nov. 30. That’s when the company will release its latest quarterly results. A majority of analysts have raised their pre-earnings forecasts for UiPath, but another revenue/earnings beat isn’t out of the question.

That’s not all. Further guidance regarding UiPath’s ability to capitalize on generative AI could also spark a new round of high investor enthusiasm. TradeSmith’s volatility quotient for PATH is 54.38%, which makes it a sky-high risk stock.

Palantir Technologies (PLTR)

Palantir Technologies (NYSE:PLTR) has been in the “Green Zone” for over 6 months. This is not a surprise, considering that the market has aggressively bid up the company’s shares. Largely, due to increasing confidence in its ability to capitalize on the rapid adoption of artificial intelligence applications by commercial and governmental end-users.

Yes, after nearly tripling in price so far this year, PLTR stock has spiked in price faster than its underlying business has grown. However, given the high level of customer count growth (34%) last quarter, confidence is rising that Palantir is starting to experience a growth resurgence.

If this plays out in the quarters ahead, PLTR may be able to not only sustain its current stock price (around $20 per share), but add to these gains as well. TradeSmith’s volatility quotient for PLTR is 52.46%, which makes it a sky-high risk stock.

Roku (ROKU)

Roku (NASDAQ:ROKU) entered the “Green Zone” three weeks ago. After surging and sinking earlier in the year, shares in the streaming platform operator have been on a tear since the company’s latest quarterly earnings release on Nov. 1.

For the quarter, Roku reported 20% year-over-year revenue growth, large increases in total active accounts and streaming hours, and earnings that handily beat expectations. Yet even after nearly doubling in price, don’t assume that ROKU stock has ceased to be one of the top stocks to buy.

Between a rebounding ad market, the company’s recently implemented cost-cutting measures, as well as continued growth of its user base, there’s much in motion that could keep ROKU soaring in 2024. While not a strong catalyst, Roku has been cited as a possible takeover target as well. TradeSmith’s volatility quotient for ROKU is 55.24%, which makes it a sky-high risk stock.

The TradeSmith Research Staff member primarily responsible for this article did not hold (either directly or indirectly) any positions in the securities mentioned in this article.

TradeSmith’s mission is to put easy-to-use, technology-based tools into the hands of individual, self-directed investors. TradeSmith began as a simple way to track portfolios using trailing stops and has evolved to become a powerful suite of risk-management and portfolio analysis tools.

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The good news is semiconductor stocks to buy have lower valuations than TSM and smaller market caps. Although these companies might be riskier, they also give investors the prospect of a proportional upside.

So, let’s dive into multiplying your capital with three lesser-known semiconductor stocks.

Microchip Technology (MCHP)

Microchip Technology (NASDAQ:MCHP) is brand that produces analog semiconductors and microcontrollers. MCHP’s product strategy is producing lower-priced chips representing good customer value.

Bulls might want to take a close look at MCHP. In the short term, it is benefiting from strong momentum amid the announcement of its new PIC18-Q24 microcontroller. This chip offers security benefits, including a Programming and Debugging Interface Disable (PDID) for added protection.

MCHP’s recent reveal of the PIC18-Q24 chip should be seen in context with its PIC18 Q20 MCU family of units, which analysts predict could unlock substantial shareholder value.

Then, sturdy fundamentals give it the potential for strong capital appreciation. Its market cap is relatively small in comparison to its larger peers at $44.90 billion. Also, it has extremely high institutional ownership at 94.60%, which should give retail investors confidence that smart money is on their side.

Shares of MCHP are relatively cheap, too, as its forward P/E ratio is 18.59 times earnings. This may entice investors into making an entry.

Monolithic Power Systems (MPWR)

Monolithic Power Systems (NASDAQ:MPWR) provides integrated power semiconductors. This company is a more contentious pick amid its share dilution and company executives selling shares. However, the worst could be over, and its upside remains intact.

Some good news for MPWR is that it recently exceeded its third-quarter EPS estimates despite a higher number of shares outstanding. Furthermore, its revenue for the period met analyst expectations. Management said it would grow its top line at around 12% for the next three years.

Despite its unusually high share price of $546.04, its market capitalization hovers around 27.47 billion. Its stock could still have a lot of potential to move higher. Indeed, according to their consensus estimates, Wall Street analysts are overwhelmingly bullish on MPWR stock, with a consensus rating of strong buy.

For next year, analysts expect its EPS to grow by 14.98%, which could lead to substantial capital appreciation.

Silicon Laboratories (SLAB)

Silicon Laboratories (NASDAQ:SLAB) is a slightly different pick from the other companies. It produces silicon chips, but has additional product lines that target customers in the Internet of Things (IoT) segment. Therefore, its earnings might be more diversified than relying solely on the cyclical semiconductor industry.

Also, SLAB differs from others because it’s more of a contrarian play for those who like to go against the grain. The company’s share is down 29.68% over the past year. This decline in SLAB’s stock price started in July but accelerated amid posting forward guidance that disappointed the market.

The weak guidance can largely be chalked up to the short-term lack of demand for its chips, which still account for most of its earnings and revenues. On a bright note, these headwinds are expected to inverse long-term. Its business execution remains strong, managing to beat EPS estimates despite a bearish backdrop.

Analysts remain bullish on SLAB, which has a potential upside of 47.31% over the next year. In fact, some say that its stock will rise by up to 85.76%. These predictions were based on SLAB’s historically strong performance in growing its EPS and revenues and is therefore, one of those semiconductor stocks to buy.

On the date of publication, Matthew Farley did not have (either directly or indirectly) any positions in the securities mentioned in this article. The opinions expressed are those of the writer, subject to the InvestorPlace.com Publishing Guidelines.

Matthew started writing coverage of the financial markets during the crypto boom of 2017 and was also a team member of several fintech startups. He then started writing about Australian and U.S. equities for various publications. His work has appeared in MarketBeat, FXStreet, Cryptoslate, Seeking Alpha, and the New Scientist magazine, among others.

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Also noteworthy is that the city’s casinos and hotels likely benefited a great deal from the huge Formula 1 Las Vegas Grand Prix auto race, held in Las Vegas from Nov. 16 to Nov. 18. Also very likely to help casinos and hotels in the area is the upcoming CES tech conference in January, which should be bigger than ever, given the excitement over artificial intelligence (AI). The Super Bowl will also happen in Las Vegas in February. On top of all that, online sports gambling has become huge, as legal U.S. wagers on sports jumped 33% in Q3 versus the same period in 2022.

MGM Resorts (MGM)

MGM Resorts (NYSE:MGM) reported very strong third-quarter results on Nov. 8, as the casino owner’s revenue jumped 16% versus the same period a year earlier, and its net income came in at an impressive $161 million, versus a loss of $577 million in Q3 of 2022.

BetMGM, the company’s online betting joint venture, generated $13 million in profits for MGM last quarter. With BetMGM growing very rapidly and continuously expanding to new markets, the venture’s contribution is likely to easily constitute 15% to 20% of the parent company’s bottom line within the next year.

Meanwhile, MGM is opening a new casino and hotel in Japan and looks poised to obtain a casino license in New York. Both of those markets should become very lucrative needle movers for the company.

Changing hands at a very reasonable 21 times analysts’ average 2024 earnings per share estimate, MGM stock has an attractive valuation, solidifying its status as one of the top gambling stocks to buy.

Melco Resorts (MLCO)

Melco Resorts (NASDAQ:MLCO) is getting a big boost from the rejuvenation of Macau, as the lion’s share of its revenue comes from the region.

Indeed, last quarter, the company’s operating revenue soared 321% year-over-year to $1 billion, while its operating income came in at $94.7 million versus an operating loss of $198.5 million in Q3 of 2022.

Also encouragingly, CEO Lawrence Ho, speaking on the company’s Q3 earnings call on Nov. 7, said, “We’re feeling good about Macau. And travel and tourism is the leading sector in China right now.” He added, “I think after 3 years of being not being able to travel during COVID, people are coming to Macau in force.”

The forward price-earnings ratio of MLCO stock is a very low 10.

Wynn Resorts (WYNN)

Wynn Resorts (NASDAQ:WYNN) is benefiting tremendously from the huge rebound of Macau and the continued strength of Las Vegas.

The firm’s revenue from Las Vegas climbed $74.6 million versus the same period a year earlier to $544.4 million, while its Macau sales advanced by $450 million to $524.8 million.

Wynn’s overall EBITDAR, excluding some items, soared by $356.9 million to $530.4 million.

“Looking ahead, we have a strong pipeline of forward group demand, very healthy gaming market share and a robust programming calendar with F1 and Super Bowl just ahead of us,” CEO Craig Billings stated on the company’s Q3 earnings call, held on Nov. 9.

In September, research firm Trefis estimated that the value of WYNN stock was about $109, well above its current level of around $84.

On the date of publication, Larry Ramer held a long position in MGM. The opinions expressed in this article are those of the writer, subject to the InvestorPlace.com Publishing Guidelines.

Larry Ramer has conducted research and written articles on U.S. stocks for 15 years. He has been employed by The Fly and Israel’s largest business newspaper, Globes. Larry began writing columns for InvestorPlace in 2015. Among his highly successful, contrarian picks have been PLUG, XOM and solar stocks. You can reach him on Stocktwits at @larryramer.

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Unfortunately, the broader tech sector is deep in the red today, and SOFI stock is no different, dropping more than 2.5% in early afternoon trading. Thus, it’s hard to gauge how the market is reacting to this move as an independent catalyst.

However, it’s worth noting that Cathie Wood’s purchase decision coincided with SoFi’s decision to exit the crypto game altogether by the end of the year. Wood’s various actively managed exchange-traded funds (ETFs) have been accumulating shares of SOFI stock for some time, with recent estimates being that her funds now hold more than 1.7 million shares of the fintech company.

Let’s dive into what investors may want to make of this news today.

SOFI Stock Is Down, Despite News of Yet Another Cathie Wood Purchase

What’s interesting about Wood’s recent decision to add to her position in SoFi is how this move coincides with other transactions of late. Notably, Ark Invest sold another big chunk of Coinbase (NASDAQ:COIN) stock in a move that appears to choreograph a strategy of shifting away from having too much exposure to crypto and blockchain-related companies.

To what extent SoFi’s move away from crypto influenced Wood’s purchase decision is unclear. But this move, alongside her Coinbase sale, does add to the narrative that perhaps many institutional investors aren’t yet ready to load up on digital assets and related companies.

Another aspect of this transaction I think is worth reflecting on is the sustained nature of Wood’s purchases. With SoFi stock appearing to consolidate around the $7-$8 per share level, perhaps Cathie Wood views this stock as a longer-term hold. If so, value investors, and those in this stock for the long-term may take solace in these moves.

On the date of publication, Chris MacDonald did not have (either directly or indirectly) any positions in the securities mentioned in this article. The opinions expressed in this article are those of the writer, subject to the InvestorPlace.com Publishing Guidelines.

Chris MacDonald’s love for investing led him to pursue an MBA in Finance and take on a number of management roles in corporate finance and venture capital over the past 15 years. His experience as a financial analyst in the past, coupled with his fervor for finding undervalued growth opportunities, contribute to his conservative, long-term investing perspective.

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PTC (PTC)

PTC (NASDAQ:PTC) offers a wide variety of computer software services, such as product lifecycle management and computer-aided design. The company’s stock is up 30% year-to-date (YTD).

Yahoo! Finance reports 17 analysts with a mean 1-year price target of $167.47, ranging from $155.00 to $182.00. Eleven out of 11 analysts gave PTC a Buy or Strong Buy rating.

PTC reported solid FYQ4 financials. Revenue of $547 million missed expectations by $12.34 million and grew 7.7% year-over-year (YoY), and EPS of $1.20 beat expectations by $0.06.

The company recently acquired pure-systems, a leading provider of product and software variant management solutions. It helps manufacturing companies manage different software and systems engineering assets efficiently. The acquisition builds from their previous partnership, meaning the pure systems’ product was already integrated into PTC. That makes this acquisition much smoother and will allow them to receive the benefits faster. It will be a significant growth catalyst for PTC since this combination positions the company as a leading provider of software requirements, configuration, testing and validation solutions. 

Due to its selective, yet effective set of partnerships and acquisitions, PTC is definitely set to grow.

Intuitive Surgical (ISRG)

Intuitive Surgical (NASDAQ:ISRG) is an American company specializing in producing robotic products to improve the clinical outcomes of patients through minimally invasive surgery.

ISRG’s stock is up 17% YTD. In addition, it is covered by 26 analysts who are projecting a 12-month price forecast with a median-high price of $320 to $400, representing increases of up to 29%. 

Intuitive Surgical saw its market cap rise from $93.77 billion in 2022 to $108.84 billion in 2023, representing an increase of 16.07%. In addition, revenue went up in the same timeframe, reaching $6.85 billion. Earnings also increased by 7.1%, and the P/E ratio went up by 42.81%. Gross profit margin (TTM) also grew substantially, by 66.61%, 18.12% more than the section median of 56.39%. These metrics indicate that ISRG is both profitable and growing at a steady rate.

ISRG is an intuitive leader in medical robotics due to its competitive advantages, mainly its business model combining some benefits of an installed base, razor and blades. ISRG also innovates building tools with guidance from state-of-the-art surgeons. ISRG innovated mechanized arms in surgery, greatly reducing the risk of errors. The surgeon makes the hand movements, transmitting that motion to the robot, which completes the task more accurately. Overall, these levels of intuition and innovation are ISRG’s key competitive advantages.

Due to its competitive advantages and the industry growing at a rapid rate, I give ISRG a Buy rating.

AeroVironment (AVAV)

AeroVironment (NASDAQ:AVAV) is an American defense contractor that designs and manufactures unmanned aerial vehicles (UAVs). It also specializes in electric vehicle (EV) charging solutions. 

AVAV’s revenue of $152.35 million grew 40.39% YoY, beating analysts’ expectations by 16.29%. Its diluted EPS of $0.84 grew 347.06% YoY, topping analysts’ expectations by 235.57%. Further financial growth is evident through a net profit margin of 14.37% YoY, a growth of 285.66% and a net income of $21.9 million, representing a whopping 360.81% jump YoY. 

Aero announced the company’s JUMP 20 VTOL Medium UAS exceeded expectations. “The JUMP 20 provided ship-based intelligence, surveillance, reconnaissance and targeting (ISR-T) support to USFOURTHFLT and USSOUTHCOM during at-sea exercises.” The vehicle has already flown over 130,000 land-based hours supporting the U.S. Special Operations Command combat deployments. By extending JUMP 20 operations to the shipboard environment, AeroVironment is now equipped to deliver these services on a global scale. That strategic move should drive increased sales over the long term.

Because of the strong growth opportunity, AVAV stock is one of the robotic stocks for investors to consider buying.

On the date of publication, Michael Que did not hold (either directly or indirectly) any positions in the securities mentioned in this article. The opinions expressed in this article are those of the writer, subject to the InvestorPlace.com Publishing Guidelines.

The researchers contributing to this article did not hold (either directly or indirectly) any positions in the securities mentioned in this article.

Michael Que is a financial writer with extensive experience in the technology industry, with his work featured on Seeking Alpha, Benzinga and MSN Money. He is the owner of Que Capital, a research firm that combines fundamental analysis with ESG factors to pick the best sustainable long-term investments.

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Hennessy Funds has added four retailers to its Cornerstone Mid Cap 30 Fund (NASDAQ:HFMDX) following a rebalance of the portfolio in October. Hennessy switches up the stocks in the fund annually, screening for companies with relatively low price-to-sales ratios and strong fundamentals.

Ryan Kelley, Hennessy’s chief investment officer and portfolio manager for the Mid Cap fund, said at a lunch event in New York Wednesday that the firm likes three apparel retailers as well as a supermarket chain.

The fund has added three stalwarts of the shopping mall: Gap (NYSE:GPS), Abercrombie & Fitch (NYSE:ANF) and Guess? (NYSE:GES). The other retailer? Organic foods grocery chain Sprouts Farmers Market (NASDAQ:SFM).

Kelley joked that the three clothing store retailers may be companies that people have left for dead due to the increased popularity of online shopping. These three chains, which all cater to younger buyers, are also subject to fickle fashion whims and changing consumer trends. But Kelley thinks this trio should benefit from continued strong consumer spending in 2024. And all three stocks remain attractively valued, even though The Gap and Abercrombie & Fitch have each soared this year. (Guess? has been a market laggard, rising just 4% in 2023.)

Retail Stocks vs. Magnificent 7

Kelley said these retailers may not be as sexy as the so-called Magnificent 7 growth stocks that grab most of the headlines. But he cautions investors to be wary of “market myopia” and look for cheaper opportunities in other sectors since there should be an eventual reversion to the mean.

Kelley added that there aren’t many technology companies in the Mid Cap fund because valuations are too high. To that end, the fund sold its stake in server manufacturer Super Micro Computer (NASDAQ:SMCI) in October as part of this year’s rebalancing because the tech stock, which was added to the portfolio in 2022 and rode this year’s artificial intelligence (AI) wave, is no longer a good value following a nearly 250% surge in 2023.

As for Sprouts, Joshua Wein, a co-manager with Kelley for the Mid Cap fund, said at the Hennessy event that this is a more defensive bet for the portfolio.

Even if the economy does cool next year following the series of interest rate hikes by the Federal Reserve in 2022 and the early part of 2023, consumers are still likely to keep spending on food, beverages, and household goods. Shares of Sprout have gained more than 30% in 2023 but the stock was still trading at a bargain price-to-sales ratio of less than 1 times revenue for the past 12 months. That’s key.

In a market that now is bordering on frothy, investors need to look for stocks like these four retailers that are trading at more reasonable valuations than the giants of tech.

As of this writing, Paul R. La Monica did not hold (either directly or indirectly) any positions in the securities mentioned in this article. The opinions expressed in this article are those of the writer, subject to the InvestorPlace.com Publishing Guidelines.

Paul R. La Monica is a veteran financial journalist with nearly 30 years experience (including more than 20 at CNN) covering the stock market and other asset classes, the economy and other corporate and business news.

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If history teaches us anything, it is that a bull market follows every steep double-digit decline in the market. Over time the stampede wipes away the painful memory the bear market wrought. That’s because it gives investors the chance to buy low and sell high. You can profit handsomely in these situations. So it’s interesting that many fear declining stock prices.

But it explains in part the reason Wall Street analysts tend to have a bullish outlook on stocks. Very few of their ratings actually recommend you sell. According to the 12-month price targets of select analysts, the following three stocks to buy for the next bull market are poised to soar between 197% and 395%!

JD.com (JD)

Chinese online marketplace JD.com (NASDAQ:JD) faces intense competitive challenges for e-commerce dominance. Beyond traditional rival Alibaba (NYSE:BABA), the online sales platform is threatened by upstarts like ByteDance and PDD Holdings (NYSE:PDD), which owns discount e-commerce players Pinduoduo and Temu.

JD’s third-quarter sales only rose 1.7% from last year, though that was enough to handily beat expectations. But it came at a cost as JD had to subsidize merchant fees on its site to increase the number of sellers. That ultimately ate into profits, though, they also exceeded expectations.

To remain competitive with its deep discount rivals, JD cut prices and moved away from its traditional focus on big-ticket items. It is still the leader in that space and gained share in the most recent quarter. But, it was forced to cut research and development spending as well as general and administrative expenses. Earlier this year it laid off hundreds of workers.

With the stock cut in half in 2023, shares trade at extremely discounted valuations. It goes for 9 times earnings expectations, a fraction of its forecast earnings growth rate and a minuscule percentage of sales. Wall Street has a $81 per share target price on JD.com, implying 197% growth potential over the next year. Even if it only hits the low end of the forecast range of $51 per share, that’s still a near-double.

Enphase Energy (ENPH)

High interest rates plague the U.S. residential solar industry, undermining the growth track of Enhpase Energy (NASDAQ:ENPH).

Previously, industry analysts expected the market to expand at exponential rates. The Federal Reserve’s interest rate hikes, however, now have them rapidly decelerating.

Wood MacKenzie says after growing 31% in 2021 and 40% in 2022, the solar market will only rise 9% this year and contract next year. Yet, it’s expected to pick up again in 2025. As one of just two top manufacturers of residential solar inverters, Enphase Energy stock took a hit. Shares are down 62% this year. Inverters convert the direct current (DC) produced by solar panels into the alternating current (AC) used in homes.

The Fed paused its rate hike program, but it doesn’t seem likely it will reverse course anytime soon. Because it’s expensive to finance a residential solar system install, Enphase Energy’s position looks like it could get uglier before it gets better. Yet the industry’s eventual return to growth forecast bodes well for the inverter maker.

Finally, analysts peg Enphase Energy’s one-year stock price at $315 per share or 212% upside potential. Actually, the stock is up 38% over the past few weeks after inflation reportedly rose less than expected. That may have had more to do with changes in how the government calculates healthcare costs. It led to an improbable 34% decline in such costs last month. Still, it shows the market simply needs some good news on the inflation front to send the solar sector soaring.

Lucid Group (LCID)

Hope springs eternal at luxury electric vehicle (EV) maker Lucid Group (NASDAQ:LCID). The stock is up 20% from its low point earlier this month after signing a memorandum of understanding (MOU) with Saudi airline Riyadh Air. Even so, the stock is down 75% from its 52-week high and has lost 90% of its value since going public.

Recently, the EV maker disappointed investors by stating it plans to deliver only 8,000 vehicles this year, not the 10,000 previously promised. Yet, investors remain hopeful its planned Gravity vehicle slated for introduction in 2024 will attract buyers. It will be a lower-priced model under $80,000.

In fact, Lucid’s problem is falling demand for EVs.

New EV cars cost $50,683 on average, down from $65,295 a year ago. But, people still find them too expensive, even with government subsidies. Worse, Fortune says used EV prices plunged to under $35,000 in October, a 34% drop from last year. High-end automaker Mercedes-Benz (OTCMKTS:MBGAF) called the EV market “brutal”, while Mazda (OTCMKTS:MZDAF) warned inventory was “piling up”.

So, Wall Street’s consensus price target of $22 per share becomes hard to swallow. A 395% premium would require a major reversal. Yet Lucid is selling fewer cars and won’t have a more affordable model ready until next year. Overall EV demand is down too. Seeing any of that as a catalyst for growth is simply hope. I’d be leery of buying Lucid stock even under the $5 a share point it trades at now.

On the date of publication, Rich Duprey did not hold (either directly or indirectly) any positions in the securities mentioned in this article. The opinions expressed in this article are those of the writer, subject to the InvestorPlace.com Publishing Guidelines.

Rich Duprey has written about stocks and investing for the past 20 years. His articles have appeared on Nasdaq.com, The Motley Fool, and Yahoo! Finance, and he has been referenced by U.S. and international publications, including MarketWatch, Financial Times, Forbes, Fast Company, USA Today, Milwaukee Journal Sentinel, Cheddar News, The Boston Globe, L’Express, and numerous other news outlets.

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The post A New Bull Market Is Coming! 3 Stocks Set to Soar Up to 395% Higher appeared first on InvestorPlace.

On Nov. 28, Meta submitted a hearing request in front of the Nasdaq Hearings Panel to appeal the decision. The panel accepted and scheduled the hearing for March 21, 2024. In the meantime, MMAT will continue to trade on the Nasdaq while the company awaits the panel’s decision.

“There is no assurance that a favorable decision will be obtained from the Panel at the hearing,” warned Meta Materials.

MMAT Stock: Nasdaq Intends to Delist Meta Materials

MMAT stock trading below 10 cents isn’t Meta’s only compliance issue. On March 20, the company received a noncompliance notice due to its shares closing below $1 for 30 consecutive trading days. Meta was given 180 calendar days to resolve the issue, or until Sept. 18. In order to regain compliance, MMAT must close at or above $1 for at least 10 consecutive trading days, but generally no more than 20 consecutive trading days.

Meta failed to regain compliance by Sept. 18. However, Nasdaq informed the company that it was eligible for another 180-day extension, or until March 18, 2024, to regain compliance.

March will be a paramount month for Meta, as it has two major Nasdaq compliance events during that month. The deadline for Meta’s second compliance period ends before the date of the hearing by three days.

Meta has failed to turn a profit in recent years, which factors into why MMAT stock is down so much this year. During the third quarter, revenue tallied in at $2.2 million, down by 10% compared to a year ago. Revenue for Q2 2023 came in at $2 million. For the fourth quarter, analysts expect revenue of around $3 million and a GAAP EPS loss of 2 cents.

On Penny Stocks and Low-Volume Stocks: With only the rarest exceptions, InvestorPlace does not publish commentary about companies that have a market cap of less than $100 million or trade less than 100,000 shares each day. That’s because these “penny stocks” are frequently the playground for scam artists and market manipulators. If we ever do publish commentary on a low-volume stock that may be affected by our commentary, we demand that InvestorPlace.com’s writers disclose this fact and warn readers of the risks. 

Read More: Penny Stocks — How to Profit Without Getting Scammed

On the date of publication, Eddie Pan did not hold (either directly or indirectly) any positions in the securities mentioned in this article. The opinions expressed in this article are those of the writer, subject to the InvestorPlace.com Publishing Guidelines.

Eddie Pan specializes in institutional investments and insider activity. He writes for InvestorPlace’s Today’s Market team, which centers on the latest news involving popular stocks.

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As one of the biggest EV manufacturers in the world’s largest EV market, it is a stock investors ought to notice. Even so, I’ll admit upfront I’m always leery of Chinese stocks because there’s no telling what Beijing will do next. A couple of years ago, the tech stock crackdown sent the likes of Alibaba (NYSE:BABA) and JD.com (NASDAQ:JD) careening lower. 

Yet investors still ought to pay attention to Li Auto even while exhibiting sufficient due caution. Opening your eyes wide open is the best way to approach LI stock.

A Battle for Supremacy

Li makes plug-in hybrid electrics (PHEV). It has three main models in its L-series of SUVs: the five-seat L7 and the six-seat L8 currently rank No. 1 and No. 2 in sales, respectively, and the full-size L9, which has dominated its category for 13 consecutive months. 

The EV maker just unveiled the Li MEGA, its first battery EV (BEV), or what Li calls its “super flagship” EV. It intends to make the MEGA the top-selling SUV for multi-generational households in China. It will go on sale in December.

The Chinese EV market is rapidly expanding, and Li is targeting the premium end of the market. It’s led the sales charts for six straight months for SUVs priced above 300,000 renminbi (RMB), or about $42,000 at current exchange rates. The MEGA will be priced under RMB600,000 (approximately $84,000).

It intrigues investors that premium vehicles like Li’s tend to have better profit margins than their lower-priced rivals. Li sports gross, operating, and net margins significantly ahead of XPeng (NASDAQ:XPEV) or Nio(NYSE:NIO).

A Big Fish in a Big Pond

According to the China Passenger Car Association, NEV retail sales totaled almost 6.4 million units in the first 19 days of November, a 35% increase from the year-ago period. NEV wholesale sales soared 40% year over year to 439,000 units. That accounts for 45% of all passenger vehicle sales for the two-week-plus period. 

Although BYD (OTCMKTS:BYDDF) is the largest vehicle maker in China, Li Auto is holding its own against the competition. That includes Tesla (NASDAQ:TSLA), which has recently raised vehicle prices. It had 39,300 new vehicle insurance registrations for the week ending on November 19, compared to 25,400 for Li Auto. 

Li’s ability to keep pace has Wall Street excited. Analysts forecast sales will more than double in the last quarter of 2023 to $5.43 billion, a 112% increase from last year, with full-year gains of 163%, or $17.5 billion. The pace will ease up a bit in 2024, with sales growing just 59% to $27.5 billion. Profits are expected to widen 56% to $1.50 per share.

LI Stock: Why You Should Get Behind the Wheel

In the burgeoning and still-growing Chinese EV market, there is plenty of room for numerous EV makers to succeed. Li Auto staked out its position at the premium end of the market. It is running away from the competition within the space.

LI stock has doubled so far this year, but unlike its cars, it doesn’t trade at much of a premium. It goes for 23 times next year’s earnings and twice sales. That seems a fair value for what it is achieving. Investors should look for any dips to take a stake in this top EV company. Just be mindful that Beijing is mercurial and can alter objectives on a whim.

On the date of publication, Rich Duprey did not hold (either directly or indirectly) any positions in the securities mentioned in this article. The opinions expressed in this article are those of the writer, subject to the InvestorPlace.com Publishing Guidelines.

Rich Duprey has written about stocks and investing for the past 20 years. His articles have appeared on Nasdaq.com, The Motley Fool, and Yahoo! Finance, and he has been referenced by U.S. and international publications, including MarketWatch, Financial Times, Forbes, Fast Company, USA Today, Milwaukee Journal Sentinel, Cheddar News, The Boston Globe, L’Express, and numerous other news outlets.

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The post Why You Should Get Behind the Wheel of Li Auto on the Next LI Stock Dip appeared first on InvestorPlace.

This outlook is tied to the probable surge in cryptocurrency market volatility amid concerns of a looming U.S. economic recession. In addition, the historically influential practice of Bitcoin halving is known for initiating growth cycles.

Below are the best cryptos to buy before the end of the year. They include the most promising crypto projects with proven years of development experience and active communities.

Bitcoin (BTC-USD)

Bitcoin (BTC-USD) has stood out as a top-tier, long-term investment. In November, it broke through pivotal resistance levels, steadying around $38,000. Analysts anticipate it could reach between $45,000 and $50,000 over the next three to four months.

Throughout 2023-2024, Bitcoin will retain its position as the most reliable cryptocurrency. This earns it a place in any portfolio. Its primary growth outlook stems from the potential approval of a spot Bitcoin ETF within the U.S. market, anticipated to attract trillions of dollars. Plus, BTC remains the only cryptocurrency that has decent support from the Securities and Exchange Commission (SEC). Currently, the SEC considers other cryptocurrencies as potentially illegal securities, restricting their access to the traditional exchange market.

Furthermore, Bitcoin demonstrates excellent capital inflow indicators, signaling investor confidence in BTC. If the SEC approves spot ETF applications, BTC could easily surpass the $50,000 mark in the first few days.

Solana (SOL-USD)

Similarly, Solana (SOL-USD) holds considerable promise. Solana deserves particular attention among the best cryptos in the altcoin category.

Despite navigating a crisis triggered by the collapse of the FTX crypto exchange in November 2022, the coin persevered. In September 2023, a court ruling permitted FTX and Alameda to initiate the sale of blocked cryptocurrency amounting to $3.4 billion. $1.16 billion of that constituted of SOL, given FTX’s substantial token holdings. Notably, investors staked around 5.5 million SOL in FTX’s staking program in October. This move signaled positivity amid FTX’s revival efforts, consequently driving SOL’s price up by 30%.

The Solana blockchain stands as a prominent rival to Ethereum and has recently gained significant traction. Renowned for its high-performance capabilities and minimal fees, Solana is an exceptionally appealing platform for developers and investors, particularly within the decentralized finance sector.

Moreover, SOL remains significantly undervalued as evidenced by its recent price surge. The active endeavors of the project’s team in forming strategic partnerships and enhancing technical metrics might yield substantial profit as early as 2024.

Chainlink (LINK-USD)

Chainlink (LINK-USD) persists as a coin holding considerable promise. LINK has a decentralized network of oracles that allow blockchains to interact with external data streams safely. Simply put, it is a platform-mediator that aggregates databases and transmits them to the blockchain. The technology is particularly popular in the decentralized finance segment.

Over the past month, the coin appreciated by 160%. Also, growth was observed in other LINK metrics, setting a new three-month record. Analysts believe that this growth is related to major partnerships and upcoming network updates. In particular, in June, the startup attracted SWIFT as a partner. In the fall of 2023, the first joint programs were launched. Additionally, tomorrow, the saving v0.2 staking feature will be launched, allowing blocked coins to be withdrawn at any time.

The examples of SOL and LINK show that before the to-the-moon cycle, it makes sense to search for undervalued coins from the TOP-100. These coins may lack sufficient drivers to attract a sudden influx of capital. But if BTC rises by 10%, the synergy effect could boost altcoins by 20%-30%.

On the date of publication, Julia Magas did not hold (either directly or indirectly) any positions in the securities mentioned in this article. The opinions expressed in this article are those of the writer, subject to the InvestorPlace.com Publishing Guidelines.

Julia Magas is a writer who covers the latest trends in finance and technology. Her work is published in a number of financial media outlets such as Nasdaq, Cointelegraph, Investing, SeekingAlpha, FXEmpire, and Beincrypto. She primarily covers cryptocurrency and blockchain technology with a focus on market performance, innovations and trends.

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However, since solar stocks are trading at low valuations, now may be the time to invest for the long term. Below are three solar stocks that could be multibaggers in the maker.

First Solar (FSLR)

While investors have doubts about solar companies in 2023, solar panel manufacturer First Solar (NASDAQ:FSLR) has increased earnings while growing revenue by double-digit percentage points. First Solar also announced a new manufacturing site in the U.S., which would add to its current manufacturing capacity.

Most importantly, First Solar will be pivotal in the broader shift to renewable energy. The company has already generated more than $3 billion in revenue on an LTM basis, and perhaps most importantly, the company is profitable with a 15% net margin over the last 12 months. First Solar currently trades at 13.3x forward earnings. Government support from the Inflation Reduction Act of August 2022 extended the federal investment tax credit (ITC) for solar projects to 26% through 2025. Thus, First Solar could see its top-line growth rate and valuation boosted in the long term.

SolarEdge Technologies (SEDG)

SolarEdge Technologies (NASDAQ:SEDG) is another pure-play solar energy company. However, SolarEdge specializes in providing inverters and “smart energy” power optimizers for solar systems. The company also develops software and hardware solutions for monitoring and controlling solar energy production and consumption. Thanks to a generous policy environment, SolarEdge Technologies has been enjoying strong growth in both residential and commercial segments and in international markets such as Europe and Australia.

Unfortunately, SolarEdge has had mixed earnings and guidance recently. In their Q3 report, revenue came in 13% lower year-over-year. The company attributed this to a lack of demand, particularly in Europe. However, while the demand for solar energy remains challenging, things could improve as the global economy avoids a recession. With this in mind, SolarEdge, which trades at around 21.3x trailing earnings, could be a good investment for long-term holders.

Canadian Solar (CSIQ)

Canadian Solar (NASDAQ:CSIQ) is one of the world’s largest solar module manufacturers and project developers, producing high-quality solar modules for residential, commercial, industrial and utility-scale customers globally. Like the two entries above, Canadian Solar had impressive revenue and earnings growth in the past two years, fueled by a strong global demand for solar energy and projects.

In the first quarter of this year, the solar company beat earnings on an EPS-basis. At that time, Canadian Solar expected total revenues to come between $9.0 and $9.5 billion, up from the previous guidance that had given a wider range of $8.5 to $9.5 billion. Fast forward to their third quarter results; while Canadian Solar missed revenue and EPS estimates, management expects 2024 to be a significant growth year for the company.

On the date of publication, Tyrik Torres did not have (either directly or indirectly) any positions in the securities mentioned in this article. The opinions expressed in this article are those of the writer, subject to the InvestorPlace.com Publishing Guidelines.

Tyrik Torres has been studying and participating in financial markets since he was in college, and he has particular passion for helping people understand complex systems. His areas of expertise are semiconductor and enterprise software equities. He has work experience in both investing (public and private markets) and investment banking.

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Diving into these stocks reveals a tale of operational prowess, financial stability, and market adaptability. Through prudent management decisions, enhanced operational volumes, and aligned strategic planning, these stocks seem poised to deliver dividends and steady, sustainable growth. As the investment landscape fluctuates, these dividend dynamos offer investors a sanctuary of stability and promise for the upcoming year.

Hess Midstream (HESM)

Hess Midstream (NYSE:HESM) focuses on enhancing shareholder value through consistent distribution growth. It is a fundamental strength contributing to its attractiveness as an investment opportunity. For instance, the quarterly announcement of a $0.6175 per Class A share distribution for Q3 2023 signifies a 2.7% increase compared to the previous quarter. This increase comprises a 1.5% rise in distribution levels per Class A share and a consistent quarterly 1.2% increase. This growth is aligned with their target of achieving at least 5% annual growth in distributions per Class A share through 2025.

This consistent distribution growth indicates the company’s financial stability, strong operational performance, and strategic focus on delivering value to shareholders. Hess Midstream expects to maintain over $1 billion of financial flexibility through 2025. It can be used to support its return on capital framework. This reserve allows the company to seize strategic opportunities, invest in growth initiatives, and return value to shareholders through distributions or potential unit repurchases.

Hess Midstream acted towards significant increases in throughput volumes across its operational segments to support distributions. Gas gathering and gas processing increased by 9%; terminaling saw a notable surge of 17%; and water gathering witnessed a substantial increase of 19%.

Fundamentally, these increments were primarily attributed to heightened Hess Midstream drilling activity, improved gas capture, and increased third-party volumes. Thus, the growth in throughput volumes signifies operational efficiency and effective utilization of infrastructure and resources.

Finally, the increased throughput volumes and strong partnerships with Hess Corporation (NYSE:HES) and other third-party entities demonstrate the company’s ability to handle growing demand. Lastly, the growth in operational volumes lays a robust foundation for revenue generation and supports distribution plans.

Energy Transfer (ET)

Energy Transfer (NYSE:ET) has a track record of maintaining and increasing investor distributions. In Q3 2023, the company announced a quarterly cash distribution of $0.3125 per common unit, marking an increase from the previous quarter. Energy Transfer displays a 9.11% forward dividend yield, paying $1.25 annually with a high 116.51% payout ratio.

Notably, the company can generate substantial discounted cash flow (DCF), reaching $1.99 billion for Q3 2023, indicating a healthy cash flow position to sustain and potentially increase distributions. Energy Transfer’s management typically evaluates distributions relative to DCF, ensuring a sustainable payout ratio. Therefore, this disciplined approach helps balance rewarding shareholders and retaining capital for growth initiatives.

The DCF is supported by operational efficiencies such as NGL fractionation, transportation, and exports, achieving new partnership records in NGL fractionation volumes (up 9%), transportation volumes (up 14%), and exports (up more than 20%), highlighting the company’s strong market position and efficient operational management. Also, the substantial growth in these segments indicates robust demand and the ability to handle increased throughput effectively.

Looking at Midstream and Natural Gas Transportation, witnessing the growth in gathered volumes (up 4%), intrastate (up 2%), and interstate natural gas transportation volumes (up 15%) showcases the company’s operational robustness and adaptability in diverse operating regions.

Finally, upgrading Energy Transfer’s senior unsecured debt rating to BBB with a stable outlook by Standard & Poor’s suggests improved creditworthiness and enhanced investor confidence in the company’s financial stability. As a result, this enhanced rating can potentially lead to better access to capital markets and reduced borrowing costs. It may further strengthen the company’s financial position to support distributions.

Northrim BanCorp (NRIM)

Northrim BanCorp (NASDAQ:NRIM) offers an attractive forward dividend yield of 4.82%, providing investors with a decent income stream. The annual payout of $2.40, with the company’s 13-year history of consistent dividend growth, showcases its stability and focus on rewarding shareholders. Also, the payout ratio of 50.21% indicates that Northrim BanCorp is using roughly half of its earnings to pay dividends, suggesting a sustainable payout level.

Looking at the fundamentals supporting distributions, the company experienced significant loan growth, reaching $1.72 billion on September 30, 2023, marking a remarkable 14% increase from December 31, 2022, due to the increased commercial and consumer mortgage loan activities. Fundamentally, the loan surge indicates robust lending operations and potential revenue expansion through interest income.

At the macro level, the real estate market in areas where Northrim Bank operates exhibited consistent growth in average sales prices despite declines in housing unit sales. In Anchorage, the average sales price of a single-family home rose 7.6% in 2022 to $456,544. These trends suggest stability and appreciation in residential property values, supporting the bank’s lending activities.

Finally, Alaska’s forecasted growth in crude oil production is expected to reach 504,000 barrels per day in fiscal year 2024 and further increase to 556,000 barrels per day in 2028. Thus, this indicates positive prospects for the region’s economic development. This growth primarily stems from new online production in the NPR-A region west of Prudhoe Bay, signifying potential opportunities for businesses related to the oil and gas sector.

On the date of publication, Yiannis Zourmpanos did not hold (either directly or indirectly) any positions in the securities mentioned in this article. The opinions expressed in this article are those of the writer, subject to the InvestorPlace.com Publishing Guidelines.

Yiannis Zourmpanos is the founder of Yiazou Capital Research, a stock-market research platform designed to elevate the due diligence process through in-depth business analysis.

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Instead, Web3 can be viewed more of an addition to the web, as it opens up new products for people, especially those who are seeking more privacy and want to move away from mainstream digital products that lack privacy. There are many Web3 products and cryptos people use already. For example, a decentralized crypto exchange is a Web3 product, such as Uniswap (UNI-USD), and its token would be considered a Web3 crypto.

As the use cases of smart contracts grow, we are seeking more products that appeal to the average Joe. Render Token (RNDR-USD) allows its users to rent their GPU power to others through the blockchain, while Film.io is a blockchain-based filmmaking platform. Many projects like these are popping up, and I believe buying up a small position in the up-and-coming ones can lead to juicy returns down the line.

I’m most optimistic about next year, as the highly-anticipated Bitcoin (BTC-USD) halving is about to coincide with a likely batch of rate cuts. This could potentially drive altcoins much higher, make small positions quickly turn into much bigger ones. Of course, these are very speculative investments, and I would expect you to only throw in some fun money, if you do decide to invest in the first place. 

As a final note of caution, most small-cap cryptos are outright shady, and I strongly recommend you do your own research and dig deep before you invest. With that in mind, let’s dive in!

ScPrime (SCP-USD)

I have featured cloud storage cryptos like Storj (STORJ-USD) and Filecoin (FIL-USD) in the past, as I believe the data storage boom is likely to spill over into the crypto market in the next few years as demand for data soars. Another candidate, albeit smaller, is ScPrime (SCP-USD), which offers decentralized cloud storage.

Similar to most cloud storage cryptos, users earn SCP by renting spare disk space. Considering cloud spending is nearing $600 billion this year, it’s a huge end market for these cryptos, if blockchain models gain adoption as well. ScPrime has an edge here, with its storage competitively-priced at $6.99 monthly per TB.

Of course, the big caveat is that it is not very well known right now, at least compared to STORJ and FIL. Reaching customers is still hard without big corporate backers. But by proving itself over time, ScPrime will see gradual traction, in my view.

Crypto Asset Governance Alliance (CAGA-USD)

Crypto Asset Governance Alliance (CAGA-USD) launched earlier this month. The project constitutes a new DeFi protocol, prioritizing transparency and community ownership. Beyond good staking yields, CAGA lets token holders shape proposals. This gives it more say than shareholders may have in the world of traditional finance. Engagement bonuses and investment returns also make it stand out from other competing staking platforms, due to its dual-reward structure.

Now, will decentralization create real financial change? Nothing is guaranteed. However, CAGA aligns its incentives with collective decision rights. This presents an opportunity to shift wealth and governance dynamics at scale.

The decentralized autonomous organization (DAO) driven project has seen massive growth in recent weeks and is up almost 9,600% in the past 16 days, according to CoinMarketCap. Even then, the market capitalization with this token is quite small. But if the momentum continues, I believe it can squeeze out multi-bagger gains by next year.

MetaTrace (TRC-USD)

MetaTrace (TRC-USD) is a project that fuses entertainment with crypto innovations. It provides Web3 mini-games and quests with real-world tie-ins. If you’ve heard of projects like Axie Infinity (AXS-USD), you’d know what I’m talking about. This is a free play-to-earn game with a world map that runs on Polygon (MATIC-USD). It’s more than just a world map, though, since branded quests, SocialFi mechanics, mini-games, and Trace Ads are in the ecosystem.

In September, the number of users who joined the Trace Quest exceeded 1,000,000 and is now close to 2,000,000 registered users. MetaTrace also launched TraceAds in November, a new product where crypto platforms can place advertisements that users will be incentivized to view for rewards.

In my opinion, with over one million users achieved already, MetaTrace shows play-to-earn’s appeal among casual users in growth markets. Once the metaverse gains traction, or play-to-earn games run hot again in the next rally, this is another crypto I think can deliver outsized gains. The project’s CertiK audit also makes it safer than other penny crypto competitors.

On Low-Capitalization and Low-Volume Cryptocurrencies: InvestorPlace does not regularly publish commentary about cryptocurrencies that have a market capitalization less than $100 million or trade with volume less than $100,000 each day. That’s because these “penny cryptos” are frequently the playground for scam artists and market manipulators. When we do publish commentary on a low-volume crypto that may be affected by our commentary, we ask that InvestorPlace.com’s writers disclose this fact and warn readers of the risks.
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On the date of publication, Omor Ibne Ehsan did not have (either directly or indirectly) any positions in the securities mentioned in this article. The opinions expressed in this article are those of the writer, subject to the InvestorPlace.com Publishing Guidelines.

Omor Ibne Ehsan is a writer at InvestorPlace. He is a self-taught investor with a focus on growth and cyclical stocks that have strong fundamentals, value, and long-term potential. He also has an interest in high-risk, high-reward investments such as cryptocurrencies and penny stocks. You can follow him on LinkedIn.

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Indeed, in comments on Tuesday, Bowman took a markedly hawkish stance on future monetary policy.

“My baseline economic outlook continues to expect that we will need to increase the federal funds rate further to keep policy sufficiently restrictive to bring inflation down to our 2% target in a timely way,” Bowman said.

According to Bowman, economic uncertainty, “uneven” inflation progress, resilient consumer spending and the potential of new labor shortages all point to the possible necessity of additional rate hikes. Bowman is also of the opinion that some businesses are showing signs of interest rate insensitivity and that changes in economic structure may require higher rates in general compared to before the pandemic.

“In my view, given potential structural changes in the economy, such as higher demand for investment relative to saving, it is quite possible that the level of the federal funds rate consistent with low and stable inflation will be higher than before the pandemic,” said Bowman, per Reuters.

In this regard, Bowman is reportedly in the minority of Fed officials as it pertains to policy. Speaking of which, also on Tuesday, Fed Governor Chris Waller expressed confidence that current interest rate levels will be sufficient to ease inflation to the Fed’s 2% target.

Will the Fed Cause a Stock Market Crash?

Bowman’s comments directly clash with the predominantly dovish sentiment taking over the market in the wake of two strong October inflation readings by way of the Consumer Price Index (CPI) and recently released Personal Consumption Expenditures (PCE) reports.

Both reports showed slowing inflation, with price growth coming out basically unchanged from September to October. The Fed-preferred PCE showed annual inflation of just 3% compared to the year prior, even better than the CPI’s 3.2% annual price increase. While not quite at the Fed’s 2% goal, it’s still an impressive 67% improvement from the 9.1% peak inflation recorded in June 2022. This has raised hopes that the Fed may opt to cut rates at its next policy meeting, having turned the corner on the inflation battle.

Still, fears of a Fed-induced recession are elevated heading into the new year. For months now, economists have predicted that the Fed’s accelerated rate-hike campaign may eventually yield some nasty sideeffects in the form of rising unemployment and reduced consumer spending. That said, at least for the moment, these ramifications haven’t yet been truly felt. Both jobs and spending are proving increasingly resilient to the Fed’s hawkish monetary policy.

Some economists believe the Fed may actually achieve it’s long-shot “soft landing” scenario, where inflation returns to normal levels without triggering an economic downturn. In that regard, cutting rates could help ensure the country “gets while the getting is good.”

According to Bowman, however, ensured long-term price stability may yet require adding more fuel to the fire.

On the date of publication, Shrey Dua did not hold (either directly or indirectly) any positions in the securities mentioned in this article. The opinions expressed in this article are those of the writer, subject to the InvestorPlace.com Publishing Guidelines

With degrees in economics and journalism, Shrey Dua leverages his ample experience in media and reporting to contribute well-informed articles covering everything from financial regulation and the electric vehicle industry to the housing market and monetary policy. Shrey’s articles have featured in the likes of Morning Brew, Real Clear Markets, the Downline Podcast, and more.

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That’s because financial data can help investors pick the right companies for technical analysis. Consider the consumer staples and utility stocks of the Russell 3000, a group of firms that tend to mean-revert thanks to their predictable earnings. $10,000 invested using a mean-reverting Bollinger Band strategy would have grown into $15,140 between 2018 and 2023, vastly outperforming the $9,200 obtained through a buy-and-hold strategy. The RSI Index — another mean-reversion strategy — would have yielded $14,000.

To take a specific example, here are Bollinger Bands in action for trading Colgate-Palmolive (NYSE:CL), a company that has consistently traded in a narrow $60 to $85 range since 2018. Naturally, investors who bought in the low end and sold at the high end would have earned consistent profits, even if shares went nowhere over time.

Meanwhile, technical strategies can be run in reverse to help investors avoid marginal bets. Consider Grubhub, a Chicago-based startup (now owned by Just Eat Takeaway.com (OTCMKTS:JTKWY)) that once competed in the hyper-competitive world of meal-delivery services. An investor using a reverse RSI strategy would have seen plenty of technical warnings to sell in the $70 range. By 2020, shares fell to $30.

That’s why investors should pay particular interest to the latest 23 companies that MarketMasterAI has chosen. My AI stock-picking strategy automatically combines fundamental data, industry estimates and technical data to create stock price predictions.

The system works, as I outline here. “A+” rated firms have more than doubled the returns of “F” rated ones and the outperformance is rising over time as the system gathers more data.

Using Bollinger Bands

Bollinger Bands are a charting tool that combines moving averages (MA) with price volatility. When prices become volatile, these bands widen to dissuade investors from accumulating shares too quickly. And as prices settle back down, the bands narrow to create more buying opportunities.

Bollinger Bands are particularly helpful for identifying entry points in high-quality stocks that trade in narrow ranges. Here’s what happens when we apply the mean-reverting Bollinger Band strategy to Clorox (NYSE:CLX), a firm where shares “gravitate” back to a central price. With this strategy, we buy when prices hit the bottom band and sell when it hits the top.

Investors using this strategy could have generated significant profits. $10,000 invested in Clorox in 2021 using this strategy would have generated $3,659 of profits by 2023, compared to a $4,026 loss from a buy-and-hold strategy.

However, identifying the right companies to track requires fundamental analysis. Not every household goods company is a stable firm; packaged food producer Kraft Heinz (NASDAQ:KHC) saw shares drop 75% between 2017 and 2020 after botched attempts at corporate cost-cutting. And not every “risky” tech company is truly high-risk. Shares of tech firm Dropbox (NASDAQ:DBX) have the same beta (a measure of risk) as blue-chip industrial goods firm Ball Corp (NYSE:BALL).

That’s why these firms particularly stand out for their near-bottom Bollinger Band readings.

1. Becton, Dickinson & Co (BDX)

Medical technology company Becton, Dickinson & Co (NYSE:BDX) saw shares plummet recently on weaker-than-expected guidance. The company expects revenues of between $20.1 billion and $20.3 billion in 2024, which fell short of Wall Street’s $20.4 billion estimates.

The selloff was far too harsh. Becton Dickinson’s 2024 revenue projections still represent a 4.5% to 5.5% increase and profits are expected to continue rising. Analysts believe the firm’s EPS will hit a record $13.01 in fiscal 2024.

BDX also has a long history of outperforming estimates. Before last quarter’s 1-cent earnings miss, the company had recorded at least 19 consecutive quarters of earnings beats. The firm is also highly profitable for its industry; its pretax return on assets (ROA) are better than 62% of companies in the medical equipment industry, thanks to high switching costs in the surgical industry. Becton is also one of the world’s largest manufacturers of needles and syringes, which gives it significant cost advantages in that commoditized space.

It’s why MarketMasterAI awards BDX a healthy “A-” grade and a 4% to 6% upside over the next several months. History has trained the algorithm to seek high-quality companies to buy on dips. A bottom-up analysis shows an even more significant upside of roughly 30%.

With BDX shares now trading well below their lower Bollinger Band range, investors have a golden opportunity to buy a high-quality medical device firm at a discount.

2. Air Products

Industrial gas firm Air Products (NYSE:APD) saw a similar selloff after announcing mixed Q3 earnings. Revenues of $3.03 billion missed Street estimates while EPS beat estimates. The stock cratered on the news.

This isn’t the first time Air Products has seen share prices sink on virtually no news. In Q1 2022, the stock plummeted 13% after the firm announced earnings that met Street expectations (not a miss!). And a roughly 1% EPS beat the following quarter would see a 6% selloff.

Nevertheless, Air Products’ shares quickly recovered each time. The company’s margins have continued to expand and fears of a deep world recession have proven overblown. (Management’s focus on long-term contracts also insulates Air Products from price changes). Wall Street analysts now expect net income to hit a record $2.9 billion in fiscal 2024, driven by a 140 basis point margin increase and 6% growth in revenues.

The MarketMasterAI system agrees with the Street, awarding the firm an “A-” score. Shares should recover to the $280 to $290 level by early next year.

3. Cigna (CI)

Shares of medical insurance firm Cigna (NYSE:CI) are now moderately valued after a 10% selloff this month. MarketMasterAI estimates that shares should recover to the $310 range by early next year.

Cigna is admittedly a riskier bet from its exposure to Congressional whims. Healthcare is a strangely regulated industry that tends to allow monopolistic pricing. In a more unrestricted market, Cigna’s financial returns would resemble levels earned by auto, life and property and casualty (P&C) insurers.

Still, a bet on Cigna is reasonable, given the current gridlock in Congress. Few lawmakers seem to have the appetite for healthcare reform. That means Cigna’s financials will likely keep growing. Analysts now expect the health insurance firm to grow revenues by 19% in fiscal 2024 and net income is set to surge to $8.2 billion.

Technical figures support this bullishness. According to the Bollinger Band strategy, investors should buy at current prices and sell in the $325 range.

Using the Relative Strength Indicator (RSI)

4. Johnson & Johnson (JNJ)

It has been a challenging year for Johnson & Johnson’s (NYSE:JNJ) stockholders. The world’s largest healthcare products firm has seen its shares sink 15% year-to-date (YTD) despite posting impressive financial results. JNJ has beat earnings by at least 5% in the last four quarters.

Behind this drawdown is a growing concern about upcoming patent expirations. Revenues for fiscal 2023 are expected to fall 10.7% and Wall Street analysts believe growth will remain in the low-single-digits through 2026.

But JNJ has several promising drugs in its pipeline. Analysts expect Tremfya, a replacement for an older immunology drug, to generate as much as $5 billion annually by 2028. Several cancer-beating drugs are also expected to become blockbusters.

JNJ also has a large, diversified business beyond pharmaceuticals. The company generates 30% of its sales from medical devices and 20% from consumer products. U.S. prescription drugs make up less than 30% of total revenues.

It’s why MarketMasterAI awards JNJ a solid “A” grade and expects shares to recover to the $160 to 170 range by 2024. Just be sure to take profits when the pendulum swings higher, since Johnson & Johnson’s shares typically trade in a narrow range.

5. Schlumberger (SLB)

Shares of blue-chip energy firm Schlumberger (NYSE:SLB) have been in freefall this quarter on sagging oil prices. The value of West Texas Intermediate (WTI) has now fallen 20% from its $95 peak reached in the summer. Climate forecasters are now calling for a milder-than-expected start to the winter because of the El Nino effect.

Still, technical and quantitative projections suggest that investors are better off buying the dip in “A” rated Schlumberger, a pioneer of hydraulic fracturing (fracking) technologies. The company is a leader in its field, outspending many larger rivals in research and development (R&D). Aging U.S. wells will additionally require more services to pump remaining reserves.

Most importantly for tactical traders, Schlumberger’s shares have traditionally recovered strongly after selloffs in the energy market. A 50% collapse in SLB’s share price when oil prices went “negative” in 2020 was followed by an equivalent 100% surge over the following two years. MarketMasterAI projects a $56 to $60 target price in 2024.

Note: Investors should take profits in the $60-plus range since oil markets are expected to shrink over the longer term.

6. Mattel (MAT)

Shares of Mattel (NASDAQ:MAT) have sunk in recent weeks on fears of a consumer slowdown. Retailers from Target (NYSE:TGT) to Macy’s (NYSE:M) have previously lowered year-end guidance. A comedown from summer’s Barbie sugar rush might also be to blame.

Yet, Mattel is a well-run firm that has continuously bounced back after selloffs. The last time shares hit the oversold “30” RSI level in March, they would eventually surge 30% to $21.

This time around, it looks no different. MarketMasterAI estimates that Mattel’s shares are worth north of $20, given its strong earnings and strong estimated growth. Analysts expect the California-based firm to increase net income by 7% next year and 11% the year after, driven by more licensing deals and improving consumer demand.

Things haven’t always been smooth for Mattel. The company struggled in the late-2010s after video games began to take market share from traditional toys. The bankruptcy of retailer Toys R Us also hit sales hard. Weak forecasts led an analyst at Davidson to quip “either they are super lowballing or the company is falling apart.”

Nevertheless, a two-pronged turnaround strategy by CEO Ynon Kreiz has proven successful. By licensing its intellectual property (IP) for movies and cutting costs, Mattel has reemerged as a blue-chip toymaker to buy on the dips.

7. Dover (DOV)

Swing traders are occasionally given second chances at buying companies on the dip. Last week, Dover (NYSE:DOV) made that list after seeing a slight decline. Shares had initially dropped after a disappointing Q3 earnings report and the recent pullback brought prices back to that initial level.

Dover is a highly diversified industrial company that spans engineered products, clean energy, imaging and climate products. Essentially, they produce everything from loader dump trucks to miniature pumps for healthcare use.

The result is a stable firm with share prices that march along with economic growth. As a point of comparison, its implied volatility is about 6% lower than 3M (NYSE:MMM).

That makes the selloff in this “A+” rated stock particularly interesting. According to MarketMasterAI, shares should rise 14% over the next several months — an excellent return for a company that typically sees only a 10% rise in a year.

What Blue-Chip Stocks Tell Us About Market Timing

Earlier this month, payroll processing company ADP (NASDAQ:ADP) seemed to be in trouble. The company had just announced weaker-than-expected revenues and the stock had fallen 11%. It was ADP’s third-worst week since 2012.

But the selloff proved short-lived. Within two weeks, the stock had recovered roughly half of the selloff. An investor who bought in at the bottom could have seen gains of as much as 8% — a large amount for a very low-volatility stock.

History tells us that markets often overreact to slightly bad news, especially with blue-chip companies. Many investors seem trained to expect better-than-expected earnings and so they sell shares if things don’t meet their rosy projections.

However, these periods are often the best moments to buy. By following a consistent technical strategy — and applying it to the right companies — investors can remove emotions from the equation and see these selloffs for what they truly are: Perfect moments to buy high-quality companies at a discount drop.

On the date of publication, Tom Yeung did not hold (either directly or indirectly) any positions in the securities mentioned in this article. The opinions expressed in this article are those of the writer, subject to the InvestorPlace.com Publishing Guidelines.

Tom Yeung is a market analyst and portfolio manager of the Omnia Portfolio, the highest-tier subscription at InvestorPlace. He is the former editor of Tom Yeung’s Profit & Protection, a free e-letter about investing to profit in good times and protecting gains during the bad.

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One should look closer at the short interest data to identify potential stocks that could stage a short squeeze rally. More precisely, the short interest ratio is a metric that reveals the proportion of shares held short in a stock relative to its average daily trading volume. 

This ratio provides a quick indication of whether a stock is heavily shorted or not, offering insights into market sentiment. Usually, a short interest as a percentage of float above 20% is regarded as high.

Hence, a short squeeze occurs when a stock experiences a sudden and substantial increase in its price, catching short sellers off guard. As the price rises, short sellers who initially bet on the security’s decline face increasing losses. In response, some short sellers may choose to cut their losses and exit their positions. This rush to cover short positions amplifies the price increase.

Let’s take a look at three short-squeeze stocks that might experience this phenomenon before the year’s end.

Short-Squeeze Stocks: Novavax (NVAX)

Novavax (NASDAQ:NVAX) is a biotechnology company focused on developing drugs to address global health challenges. Notably, their Covid-19 vaccine — NVX-CoV2373 — has gained attention for its efficacy against the virus.

According to the data from Nov. 15, Novavax stock has a short interest of 37.3%, which is extremely high. Based on Wednesday’s closing price, Novavax has a market capitalization of $660 million. Shares are down 46% year-to-date (YTD).

The stock moved a bit higher this week after NVX-CoV2601, a new type of the Covid-19 vaccine, received an Emergency Use Listing (EUL) from the World Health Organization (WHO) for individuals aged 12 and above. The decision was supported by non-clinical data demonstrating the vaccine’s efficacy against XBB.1.5, XBB.1.16, and XBB.2.3 variants, contributing to efforts in combating Covid-19.

C3.ai (AI)

C3.ai (NYSE:AI) is a leading enterprise artificial intelligence (AI) software provider that is developing products and solutions to enhance business decision-making and operational efficiency. The company focuses on integrating advanced analytics, machine learning, and IoT data to enable clients to optimize processes.

As expected, C3.ai has been a major beneficiary of the generative AI (GenAI) transformation, with shares up 170% since the start of the year. Still, the stock has a 34.7% short interest as short-sellers argue that C3.ai is yet to see a meaningful material boost from AI. 

Their thesis received a major boost in September when the company delayed its profitability target, casting a major doubt on AI hype. More concretely, the company said it expects to be cash-positive in Q4 FY 24. In FY 25, the non-GAAP profitability will only arrive in FY25 due to expensive investments in GenAI solutions.

While C3.ai faces challenges as its expanding applications suite puts it in direct competition with more rivals, the company is also making steady progress on the AI front. If this progress can translate into a material financial improvement, the stock is very likely to re-rate significantly higher amid a very high short interest.

Short-Squeeze Stocks: SunPower (SPWR)

SunPower (NASDAQ:SPWR) offers comprehensive residential solar solutions complemented by personalized customer service and an industry-leading warranty. The company has nearly four decades of experience in the solar sector. It is the only U.S.-based solar company with a track record longer than its 25-year warranty.

Still, its shares are down 76.3% YTD in light of the challenging period for solar companies. The industry is grappling with inflation and rate hikes that have dampened demand, particularly for residential solar services. As a result, short-sellers have been boosting their bets that the stock will continue to fall, resulting in a 34.8% short interest.

Most recently, the solar services provider announced a restatement of some previous financial statements, triggering a sharp decline in its stock. The correction of financial statements for 2022 and the first two quarters of 2023 adds to a series of volatility episodes in the solar sector. Another major solar services provider, SolarEdge (NASDAQ:SEDG), saw its stock fall significantly in late October when it cut its outlook, citing soft demand in Europe. 

Given the improving environment for risk assets, after the Federal Reserve said it is likely done with raising rates, the solar sector could stage a more meaningful bounce given these oversold levels. The next earnings report could act as a catalyst in this context.

On the date of publication, Shane Neagle did not hold (either directly or indirectly) any positions in the securities mentioned in this article. The opinions expressed in this article are those of the writer, subject to the InvestorPlace.com Publishing Guidelines.

Shane Neagle is fascinated by the ways in which technology is poised to disrupt investing. He specializes in fundamental analysis and growth investing.

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Tesla is holding an official launch event for the electric truck at its headquarters in Austin, Texas. That event is set to start at 3:00 p.m. Eastern. Company leader Elon Musk also noted that deliveries of the EV will start today as well.

It’s still unknown how many of these EVs will be delivered today, but the first batch will go to those who put down a deposit right after preorders opened years ago. It’s also worth noting that Tesla plans to release other trim variants of the Cybertruck at varying prices following the launch.

Tesla Cybertruck Details

One thing that fans of TSLA stock are hoping for are more concrete details about the Tesla Cybertruck at the event. The company is expected to reveal more information about the truck, including its specs and pricing, during the launch event.

Anyone wanting to watch the event can do so through the Tesla X account. That makes sense as the home to the livestream, considering that Musk owns both Tesla and X, which was rebranded from Twitter after the billionaire purchased the social media platform.

TSLA stock is down 1.8% as of Thursday morning but is up 121.7% since the start of the year. It could also get a boost from the event later today.

There’s plenty more stock market news that traders are going to want to know about below!

We have all of the hottest stock market news investors need to read about on Thursday! A few examples include why shares of Mullen Automotive (NASDAQ:MULN), Snap (NYSE:SNAP) and Soligenix (NASDAQ:SNGX) stock are moving today. All of that news is ready to go at the following links!

More Stock Market News for Thursday

• Dear MULN Stock Fans, Mark Your Calendars for Dec. 5
• Jefferies Is Pounding the Table on Snap (SNAP) Stock
• Why Is Soligenix (SNGX) Stock Up 285% Today?

On the date of publication, William White did not hold (either directly or indirectly) any positions in the securities mentioned in this article. The opinions expressed in this article are those of the writer, subject to the InvestorPlace.com Publishing Guidelines.

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The post TSLA Stock Alert: The Tesla Cybertruck Launches Today appeared first on InvestorPlace.

On the surface, this may seem like a positive step. However, the reality is that many of these major developers are already overleveraged and have defaulted on their bond payments. The looming question is whether lending more money to these developers is a wise decision, or if it’s akin to throwing good money after bad.

The problem has roots in the fact that these companies are already drowning in debt. Piling more debt on top seems like a Band-Aid solution to a deep-rooted problem. The conundrum is that the two most probable solutions — a major stimulus package from the People’s Bank of China (PBoC) or letting the sector fail and reset — seem equally unfeasible.

A significant PBoC stimulus package, although an attractive proposition, appears unlikely. The reason is China’s already high debt-to-GDP ratio. This makes it difficult for the government to pump more money into the system without exacerbating the country’s debt situation.

Friendly remind that China's debt to GDP is 104.3% (likely way higher than the official numbers) and that imploding real estate there is a global systemic risk independent of your AI $NVDA narratives. pic.twitter.com/GlqpF1fTyn

On the other hand, letting the sector fail and reset would have a catastrophic impact on the economy and the livelihoods of millions.

The real estate sector in China is not just about buildings and land. It’s closely tied to the country’s economic health, impacting consumer spending, job markets, and local government services.

The figures are indeed alarming. Property sales have suffered a decline of about 20% year over year. Property investment has seen a drop by approximately 19%. Furthermore, both S&P Global and Fitch predict property sales will decline by up to another 5% in 2024.

The Bottom Line on China’s Real Estate Crisis

The situation is dire, and 2024 seems to be a year where it may only worsen. The Chinese government’s steps to cool down the housing market to prevent a bubble have ironically led to a crisis, with developers teetering on the brink of bankruptcy due to high levels of debt accumulated over the years.

Systemic risk is very real, and the odds of an extreme decline increase when the starting point of a crisis is high debt. The Chinese real estate sector is currently walking on thin ice.

While lending more money to overleveraged developers doesn’t seem like the best solution, the alternatives, too, are fraught with complications.

On the date of publication, Michael Gayed did not hold (either directly or indirectly) any positions in the securities mentioned in this article. The opinions expressed in this article are those of the writer, subject to the InvestorPlace.com Publishing Guidelines.

The Lead-Lag Report is provided by Lead-Lag Publishing, LLC. All opinions and views mentioned in this report constitute our judgments as of the date of writing and are subject to change at any time. Information within this material is not intended to be used as a primary basis for investment decisions and should also not be construed as advice meeting the particular investment needs of any individual investor. Trading signals produced by the Lead-Lag Report are independent of other services provided by Lead-Lag Publishing, LLC or its affiliates, and positioning of accounts under their management may differ. Please remember that investing involves risk, including loss of principal, and past performance may not be indicative of future results. Lead-Lag Publishing, LLC, its members, officers, directors and employees expressly disclaim all liability in respect to actions taken based on any or all of the information on this writing. Michael A. Gayed is the Publisher of The Lead-Lag Report, and Portfolio Manager at Tidal Financial Group, an investment management company specializing in ETF-focused research, investment strategies and services designed for financial advisors, RIAs, family offices and investment managers. InvestorPlace readers that are new subscribers to the The Lead-Lag Report can receive a 30% discount.

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Indeed, CEO Elon Musk has suggested that high interest rates contributed to Tesla’s challenges, emphasizing the need to make cars more affordable. However, competition and market-share losses likely played a more significant role in the substantial decline in Q3 profits.

Here are some other reasons why you should get rid of your TSLA stocks now if you still have them.

Issue with Swedish Workers

After about a month of strikes by Swedish postal workers and mechanics refusing to service Tesla cars, CEO Elon Musk responded, calling the situation “insane.” The strikes originated when a Tesla subsidiary in Sweden refused to recognize the labor union of about 130 striking mechanics.

The strike, initiated by Sweden’s IF Metall union seeking better wages, pensions, and insurance for Tesla workers, expanded to dockworkers and electricians, disrupting car deliveries and maintenance. Despite prolonged negotiations, Tesla refused to sign a collective bargaining agreement, challenging established labor market principles in Sweden, where most of the workforce is unionized.

Tesla’s unionization efforts in the U.S. faced challenges, with three unsuccessful attempts attributed to aggressive anti-union measures and limited labor protections. The National Labor Relations Board criticized Tesla and Musk for illegal actions, including employee interrogations and discriminatory actions against union supporters. In 2023, the company terminated over 30 union backers in Buffalo, New York, shortly after the unionization initiative began.

Musk, the wealthiest individual globally, faced scrutiny from labor agencies for anti-union stances, including a directive to delete a 2018 tweet implying stock options loss for unionizing Tesla workers. The strikes in Sweden could empower German Tesla employees, where unions push for a collective bargaining agreement amid claims of lower pay and dismissal of frequently ill workers. Over 1,000 workers at the Berlin factory joined a union protest in the past month.

Lawsuit Due to Autopilot Function on a Tesla Model 3

Another reason investors should throw the towel in for TSLA stock is because of its continuous issues and allegations on Tesla car models.

A Florida judge has ruled that a lawsuit against Tesla and its autopilot system, linked to a fatal 2019 crash, can proceed to trial. The judge found “reasonable evidence” suggesting Elon Musk and other executives were aware of the system’s defects but continued to promote and sell it. The crash occurred when a Tesla Model 3, with autopilot engaged, collided with a semi-truck, resulting in the death of Jeremy Banner.

The National Transportation Safety Board reported that, during the fatal crash involving a Tesla, the car was traveling at 69 mph with no attempt to brake or evade the truck crossing in front of it at 11 mph. Following the collision, the car coasted and stopped 1,680 feet away. Tesla did not respond to NPR’s request for comment. Elon Musk disbanded the company’s media and public relations department four years ago.

Court documents in the case, initially sealed, briefly appeared on the Palm Beach County Court’s website. Kim Banner, wife of the deceased, accused Tesla of gross negligence and intentional misconduct in a lawsuit. The judge, Reid Scott, noted the accident’s similarity to Tesla’s first autopilot-related death in 2016, involving a Model S colliding with a semi-truck. Tesla had attributed the incident to autopilot and the driver failing to detect the trailer’s white side against a bright sky.

Cathie Woods Sold Her Tesla Holdings

ARK Investment Management reportedly reduced its stake in Tesla by 15.79%, selling 764,970 shares in Q3 2023. The filings lack details on the reason behind the sale, leaving speculation about potential profit-taking by CEO Cathie Wood.

Speculation abounds regarding Cathie Wood’s TSLA stock sale—was it profit-taking or tax-loss harvesting? Regardless, Goldman Sachs analyst Mark Delaney projects Tesla’s Full Self-Driving (FSD) software could generate $1 billion to $3 billion in annual revenue, potentially reaching tens of billions by 2030. Monitoring FSD’s growth is crucial for investors.

Why Now May Be a Good Time to Trim TSLA Stock

Individuals may have ethical concerns or follow Cathie Wood’s example by selling Tesla shares, but making informed decisions about Tesla’s 2024 growth is crucial. While FSD software presents revenue potential, uncertainties about Tesla’s growth and low-growth trends advise caution. I still think this stock is too highly valued for its future growth and profitability forecasts.

On the date of publication, Chris MacDonald did not have (either directly or indirectly) any positions in the securities mentioned in this article. The opinions expressed in this article are those of the writer, subject to the InvestorPlace.com Publishing Guidelines.

Chris MacDonald’s love for investing led him to pursue an MBA in Finance and take on a number of management roles in corporate finance and venture capital over the past 15 years. His experience as a financial analyst in the past, coupled with his fervor for finding undervalued growth opportunities, contribute to his conservative, long-term investing perspective.

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“Designed with drivers and efficiency in mind, these vehicles feature more cargo space, maximized payload, the ability to navigate narrow urban streets, and much more,” said Mullen. “Plus, learn about how advanced telematics and enhanced connectivity can help you make more informed decisions and optimize operations.”

At the event, Mullen will discuss how EVs can increase the efficiency and profitability of a commercial fleet. The company will also provide a “360° tour” of the ONE and THREE.

MULN Stock: Mullen to Hold Commercial Vehicle Webinar on Dec. 5

Director of Product Planning & Marketing Paul Loewer, Senior Vehicle Software Manager Prashant Agrawal and Director of Parts & Service Matthew Gostek will be the three speakers at the event.

The ONE carries a starting price tag of $34,500 and is equipped with a 42 kilowatt-hour (kWh) battery that can provide a range of 110 miles. The vehicle is also eligible for a $7,500 federal tax credit.

Meanwhile, the THREE starts at $68,500 and is eligible for the $7,500 vehicle credit as well. Its 89 kWh battery provides 125 miles of range.

Earlier this month, Mullen announced that its retail dealership partner, Randy Marion Automotive Group (RMA), had received its North Carolina dealer license to retail Mullen’s commercial EVs. This license, along with Mullen’s original equipment manufacturer (OEM) license, allows for the delivery of vehicles to customers.

On Nov. 20, Mullen began the process of delivering the THREE to three commercial customers. The next 40 THREEs will be shipped out from the company’s assembly plant in Tunica, Mississippi. Deliveries of the ONE will begin next month.

Mullen expects to deliver 150 THREEs this year, of which 10 have already been confirmed to have been delivered. The company also expects to deliver 300 ONEs this year and 6,000 ONEs next year.

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Read More: Penny Stocks — How to Profit Without Getting Scammed

On the date of publication, Eddie Pan did not hold (either directly or indirectly) any positions in the securities mentioned in this article. The opinions expressed in this article are those of the writer, subject to the InvestorPlace.com Publishing Guidelines.

Eddie Pan specializes in institutional investments and insider activity. He writes for InvestorPlace’s Today’s Market team, which centers on the latest news involving popular stocks.

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