In addition, classes of real estate, such as shopping malls and office buildings, continue to face big demand headwinds. This could mean additional pressure ahead for REITs with exposure to these areas of real estate. With bearish sentiment emerging, investors may want to tread carefully in the sector, which includes these seven REITs to avoid in August.

Arbor Realty Trust (ABR)

Arbor Realty Trust (NYSE:ABR) is a mortgage REIT (or mREIT). Instead of buying physical buildings, mREITs invest in mortgages backed by real property. Like their regular mortgage counterparts, mREITs have been hit hard by economic challenges over the past two years.

However, it’s not just uncertainty over interest rates that makes ABR stock a risky prospect. Back in May, Investorplace’s Ian Bezek argued that Arbor, with its focus on bridge loans, is at risk of big price declines, which more than counter ABR’s double-digit dividend yield.

ABR shares have made a big move higher since then, but if anything, if you are looking to avoid REITs before the crash, this name belongs at the top of your sell list. In his double-downgrade of ABR last month, Piper Sandler analyst Crispin Love argued that this mREIT has become overvalued compared to peers, and concerns about its loan portfolio remain.

Easterly Government Properties (DEA)

Easterly Government Properties (NYSE:DEA), which owns and leases office space to the U.S. federal government, also makes the list of top REITs to avoid in August. I have argued for such a case before when talking about a similar name, Corporate Office Properties Trust (NYSE:OFC). The OFC REIT leases out space to government agencies and contractors, which, thanks to security requirements, are less able to shift to a permanently-remote workforce.

Yet while we’ll probably never see a fully remote government workforce, government agencies can still (in an effort to cut costs) consolidate and close offices. As a Seeking Alpha commentator recently pointed out, this could spell doom for DEA stock. Per the commentator, a decrease in lease renewals could lead to a dividend cut, causing Easterly shares to decline in price.

Global Net Lease (GNL)

I’ve previously made the bear case for Global Net Lease (NYSE:GNL). Despite the potential for cost savings from its pending merger with Necessity Retail REIT (NASDAQ:RTL), GNL remains at risk of a dividend cut because of declining cash flow.

This key issue remains, as seen in GNL’s latest quarterly earnings release. Although much of its reported decline in core funds from operations (or FFO) was due to one-time expenses related to the Necessity Retail merger (set to close in Sept.), even on an adjusted basis, FFO declined compared to the prior year’s quarter.

It may look tempting to buy GNL stock, given its 14.4% dividend yield, and the potential for the merger deal to save the day. Yet given the high uncertainty with this “best case scenario” playing out, consider this one of the worst REITs for Aug. and stay away.

Hudson Pacific Properties (HPP)

As InvestorPlace’s Will Ashworth pointed out in June, property diversification has been more like “diworsification” for Hudson Pacific Properties (NYSE:HPP) this year. Remote working trends keep hurting the performance of this REITs office portfolio.

Meanwhile, Hollywood union strikes are a big near-term headwind for HPP’s portfolio of sound stages and film/TV production facilities. Yet, while this REIT’s management has seemingly assuaged strike-related concerns among HPP stock investors, given HPP’s recent post-earnings surge, it may be best to still consider this one of the REITs to avoid in Aug.

Things may not be getting worse for Hudson Pacific’s studio portfolio, but as the situation worsens for its office portfolio (last quarter, occupancy fell to 85.6%, versus 91.2% in the prior year’s quarter), HPP (at around $6.50 per share) could sink back to its 52-week low ($4.05 per share), or perhaps even lower.

Medical Properties Trust (MPW)

Medical Properties Trust (NYSE:MPW) has been popular among some speculators over the last year. Traders have been wagering that the short side’s bearish argument about this hospital facility owner will prove to be overblown.

If this happens, the speculators believe that MPW stock could surge on a short squeeze. Yet, based on the Medical Properties Trust’s latest quarterly results, you may not want to bet against the “smart money” on the short side here. Shares fell more than 14% following the earnings release.

Besides reporting mixed results for the preceding quarter, updates regarding issues with one of MPW’s main tenants (Steward Health Care System) suggest this big risk for the REIT is far from going away anytime soon. As trouble keeps looming over Medical Properties Trust, take heed of the market’s latest reaction to earnings, and stay away.

Paramount Group (PGRE)

Paramount Group (NYSE:PGRE) has been one of the top REITs to avoid this year. This real estate investment trust is focused on ownership of office buildings in New York and San Francisco. The impact of remote work on office demand has been especially high in both areas. That’s not all. As I’ve pointed out before, Paramount Group has had some large, high-profile tenant losses in recent months. The latest results from the REIT underscore the impact of these tenant losses on operating performance.

Last quarter, FFO fell by nearly 28% year-over-year, and the REIT reported a higher-than-expected net loss for the period. Although PGRE is cheap, trading for less than a third of book value, until interest rates fall/demand for downtown office space improves, it’ll likely stay a poor former.

Vornado Realty Trust (VNO)

Vornado Realty Trust (NYSE:VNO) is another office-focused REIT with high New York exposure. Hence, VNO has also experienced similar issues with its financial performance that we’re seeing with Paramount Group.

In contrast to PGRE, VNO  has nearly doubled in price since May. At first, due to rising turnaround hopes, and announced asset sales. Then, more recently, due to the reporting of solid (considering the circumstances) quarterly results has moved shares even higher. Yet while the market today may believe Vornado will continue to turn a corner, it may be best to think otherwise.

On the date of publication, Thomas Niel 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.

Thomas Niel, contributor for InvestorPlace.com, has been writing single-stock analysis for web-based publications since 2016.

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Here’s an example: the difference between Amazon (NASDAQ:AMZN) and many other e-commerce platforms is that the company has a robust cloud business to take into account. Amazon Web Services generates an enormous amount of revenue and profit for the company.

And while it’s an undeniable e-commerce titan, its cloud unit allowed it more flexibility in other areas of its overall business and led to enormous gains in its share price. The same could be said for countless other tech giants as well.

The market is going through a bit of turbulence — down five out of six days so far in August — but that shouldn’t stop investors from looking at the leading cloud stocks.

Microsoft (MSFT)

Microsoft (NASDAQ:MSFT) has become stock market royalty, boasting the second-largest market capitalization in the world with a $2.41 trillion valuation. Lagging only Apple (NASDAQ:AAPL) in market cap, Microsoft has built upon its legacy within the tech space.

However, it hasn’t always been an easy ride for the stock or its long-time investors.

While Microsoft saw an enormous run-up during the dot-com bust — thanks in part to its dominant software — the stock actually topped out in 1999 and didn’t surpass that high again until 2016! Even the stock’s 2001 peak held firm for more than a dozen years before being eclipsed in late-2013.

When Microsoft finally got out of its funk, it needed a catalyst and that catalyst was the cloud. While the company flexes its balance sheet muscles and many excellent revenue streams, its cloud growth has been atop the list when it comes to investors’ focus.

Now that it’s down more than 10% from its 2023 high, investors are wondering if this name will become a buy-the-dip candidate. The easy answer is “yes,” but the harder question is “when?”

Snowflake (SNOW)

Snowflake (NYSE:SNOW) is a peculiar case given that the stock has been incredibly volatile lately. Notably, it’s has been struggling with the $190 area and has now pulled back roughly 20% from this zone.

Back in late-May, the firm reported earnings and, despite beating on earnings and revenue expectations, investors were unimpressed with the guidance. As a result, SNOW stock suffered a one-day 16.5% decline. However, the stock quickly proved its doubters wrong, rallying almost 30% after stringing together a seven-day win streak.

So which is it — a disappointment or a growth darling?

There’s no question that Snowflake has the growth to back up its reputation. Analysts expect annual revenue growth in excess of 30% in each of the next four years. That’s alongside a pivot to profitability.

While the stock commands a high valuation, it is still much lower than it was a few years ago. Even if the stock market has another couple of shakeouts left — potentially putting the $120s back in play — Snowflake seems like an excellent long-term winner.

DigitalOcean (DOCN)

DigitalOcean (NYSE:DOCN) feels a bit more like a wild card at the moment. While the stock had been performing quite well recently — up almost 40% from its late-June low to its mid-July high — the stock’s post-earnings performance has been a drag.

Shares suffered a one-day 24.8% decline on Friday Aug. 4 after the firm reported its quarterly results. The problem? Revenue guidance missed consensus expectations for next quarter and the full year.

On the plus side, management remains focused on turning to profitability and expanding its margins, which continues to come to fruition.

That said, DigitalOcean is a high-growth stock and thus remains in a volatile state. The market has been punishing these names when the earnings disappoint and that’s the simple case with DOCN stock right now. That said, it has a lot of long-term potential if it can continue to churn out double-digit revenue growth and improve its bottom line.

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

Bret Kenwell is the manager and author of Future Blue Chips and is on Twitter @BretKenwell.

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Much of the stock market resurgence came from a handful of tech stocks riding the AI wave. Plus, August’s choppiness might be a sign investors are taking profits while they can. At the same time, though, a handful of key blue chip stocks are massively undervalued. These blue chip stocks have solid fundamentals and steady growth projections but remain widely ignored in the face of renewed tech exuberance.

While they may not mark a true all-time low today, these blue chip stocks are down on their luck. 

Best Blue-Chip Stocks to Buy: AT&T (T)

Like many telecom stocks, AT&T (NYSE:T) declined rapidly over the past few months on allegations of lead contamination. The allegations, first published in July, pushed AT&T’s share price down more than 10% before it settled around $14 per share this month. 

However, the problem may not be as prevalent as initially reported. Better, investors bullish on the telecom could see substantial upside from AT&T as the company works through the legal process and deploys planned growth strategies. In fact, on July 25, AT&T published a press release detailing its plan to address lead-clad cabling concerns. They’re currently working with the U.S. Environmental Protection Agency (EPA) to test and assess the extent of the potential liability. Still, analysts assess see limited long-term fallout and that “the market is overly pessimistic on AT&T’s future.”

AT&T’s wireless revenues are continually increasing. Profitability is up, and free cash flow is increasing. AT&T might be one of the best blue-chip stocks to buy, especially with its 7% dividend yield. 

General Motors (GM)

General Motors (NYSE:GM) will likely be one of the first legacy manufacturers to pivot into electric vehicles successfully. Plus, GM’s recent partnership with Tesla (NASDAQ:TSLA) only reinforces its dominant position. 

Furthermore, the company announced that all five of its electric vehicles will have highly-anticipated vehicle-to-home charging capabilities in the next few years. That means the vehicles will act as supplemental power sources for the home. This capability is critical in emergencies like hurricanes that cut power across states. 

GM is priced around where it was pre-pandemic, indicating investors see much less downside than they did when the stock skyrocketed to almost $60  in 2021. Still, with GM’s current industry dominance and forward-thinking management, GM is one of the best blue-chip stocks to buy.  

Best Blue-Chip Stocks to Buy: Disney (DIS)

Disney (NYSE:DIS) has long been a blue chip stock favorite, but it’s seen better days. The stock hit a 5-year low this week, and investors seem to be running for the door. But, practically speaking, little’s changed in Disney’s overall outlook to create such bearish sentiment. And the company isn’t resting on its laurels, either. Instead, it’s adapting to changing media trends and is keeping pace with even the biggest “new media” giants. 

Disney embraced streaming wholly in recent years. The company leveraged its vast media empire, including Disney+, Hulu, and ESPN+, to capture a growing share of cable cutters. Disney also remains adept at managing their vast intellectual property catalog, licensing franchises to generate massive profits. Star Wars and Marvel alone are worth a combined $95 billion, and watchers of both aren’t demonstrating franchise fatigue yet. 

Ultimately, Disney won’t lose their crown anytime soon, and investors looking for blue chip value should be bullish on Mickey. 

Pfizer (PFE)

Pfizer (NYSE:PFE) is priced well below its pandemic highs. However, it still remains a quality blue chip stock for long-term portfolios. Expectedly, COVID-related sales fell substantially this year, although upcoming cold weather might boost revenues. Still, Pfizer’s core holdings remain robust. Beyond COVID-19 products, net sales jumped 5% this quarter. 

Pfizer remains focused on the future, with a robust pipeline ensuring a steady stream of revenue. Its production and distribution networks also ensure the company can compete against generics, threatening its bottom line. Analysts are just as bullish on Pfizer, with estimates indicating PFE is nearly 35% undervalued today. The company’s growing revenue, profits, and 4% dividend yield also make Pfizer perfect for undervalued blue chip seekers. 

Best Blue-Chip Stocks to Buy: Lockheed Martin (LMT)

Unfortunately, geopolitical conflict is here to stay. That makes Lockheed Martin (NYSE:LMT) a dominant stock in the defense industry. Most recently, Lockheed beat earnings expectations. Better, its flagship F-35 program promises to remain a cash cow by producing new equipment and maintaining existing global fleets. 

Likewise, the US government remains on high alert with the Russia-Ukraine conflict. In addition, US defense spending grew to $1.77 trillion in 2023, with $270 billion allocated toward contracts. Lockheed accounts for 28% of US defense contract spending, so it’s reasonable to infer that growing defense budgets bode well for this defense industry blue chip stock.

JP Morgan Chase (JPM)

Investment giant JP Morgan Chase (NYSE:JPM) just reported a profit of $14.5 billion, even amid economic constraints and interest rate hikes raising its cost of business. 

JP Morgan is the most dominant bank in the industry, making its recent fall from grace even more surprising. But that dominance is unquestioned, and JP Morgan’s competitive advantage remains intact. JP Morgan is one of, if not the largest consumer and commercial banking company in America, extending its reach into Latin America. Geographic diversification is key for continued growth. JP Morgan demonstrates they have what it takes to keep their global advantage. 

Finally, JP Morgan emerged largely unscathed from the early year’s banking crises. This resilience means they’re well-positioned to withstand further economic chaos. This stability should make blue-chip investors confident in the company.   

Chevron Corporation (CVX)

Chevron (NYSE:CVX) suffered through energy market turbulence. Still, global oil prices are rapidly stabilizing, and Chevron is poised for a breakout. 

The company’s July earnings report saw an earnings drop on global oil market instability. However, Chevron remains ready with a hefty cash reserve. The oil giant is also happy to appease investors, buying back $4.4 billion worth of stock last quarter and projecting another $3 billion repurchase this quarter. Analyst consensus indicates Chevron is a Strong Buy, with 14 recommending immediate purchase, 2 projecting outperformance, and the remaining 12 maintaining that the stock is worth holding.  

Chevron also remains committed to a sustainable future. The company invests heavily in low-carbon ventures to meet a (possibly) inevitable pivot away from oil and gas. The company’s pledged a $10 billion investment in the sector by 2028, and Chevron’s existing ecosystem makes it prime to capture a growing green market. 

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

Jeremy Flint, an MBA graduate and skilled finance writer, excels in content strategy for wealth managers and investment funds. Passionate about simplifying complex market concepts, he focuses on fixed-income investing, alternative investments, economic analysis, and the oil, gas, and utilities sectors. Jeremy’s work can also be found at www.jeremyflint.work.

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You don’t want to think poorly of humanity at large. Unfortunately, the vast world of the Internet attracts digital criminals, which cynically bodes well for cybersecurity stocks with growth potential. According to Cybersecurity Ventures, the damage resulting from data breaches might hit $10.5 trillion annually by 2025. What’s more worrying is that as connectivity solutions rise in scope and scale, the know-how and technology to disrupt individuals and institutions likewise accelerate. Therefore, investors should consider must-buy cybersecurity stocks. Sadly, circumstances are only going to get worse.

On that sobering note, below are the top cybersecurity stocks for August to consider.

CrowdStrike (CRWD)

Headquartered in Austin, Texas, CrowdStrike (NASDAQ:CRWD) is one of the more well-known ideas for the best cybersecurity stocks to buy. Per its public profile, CrowdStrike provides cloud workload and endpoint security, threat intelligence, and cyberattack response services. Since the beginning of this year, CRWD gained over 41% of its equity value. However, in the trailing year, it’s down nearly 22%, thus symbolizing a relative discount.

To be fair, CRWD runs a little hot in terms of traditional valuation metrics. For example, shares trade at 60.42x forward earnings. However, the broader software sector runs a forward multiple of 26.81. Nevertheless, what makes CrowdStrike one of the top cybersecurity stocks for Aug. is its robust growth machinery. In particular, its three-year sales expansion rate (per-share basis) clocks in at 43.5%, above 91.08% of sector rivals.

Finally, analysts love CRWD, pegging it as a consensus strong buy. This assessment breaks down as 28 buys, two holds and zero sells. Also, the experts’ average price target lands at $177.71, implying nearly 22% upside. Thus, it’s easily one of the cybersecurity stocks with growth potential.

Palo Alto Networks (PANW)

Based in Santa Clara, California, Palo Alto Networks (NASDAQ:PANW) ranks among the elite entities for best cybersecurity stocks to buy. Per its corporate profile, Palo Alto’s core product is a platform that includes advanced firewalls and cloud-based solutions that extend said firewalls to cover other aspects of the digital security ecosystem. Further, the company serves over 70,000 organizations across over 150 nations.

Unsurprisingly, market demand for PANW has been robust. Since the Jan. opener, shares gained nearly 53%. In the past 365 days, they’re up nearly 27%. Still, the strong chart performance comes at a cost. Right now, shares trade at 43.28x forward earnings, which again is overvalued relative to the software industry.

However, the benefit to Palo Alto is that in addition to its solid three-year revenue growth rate of 22.1%, it’s a profitable enterprise. Its trailing-year net margin is modest but positive at 3.32%. Plus, PANW gets all the love, with analysts pegging it a consensus strong buy. Overall, their average price target comes in at $262, implying nearly 24% upside potential. It’s a great candidate for must-buy cybersecurity stocks.

Okta (OKTA)

Hailing from San Francisco, California, Okta (NASDAQ:OKTA) is an identity and access management firm. In particular, the company provides cloud software that helps its enterprise-level clients manage and secure user authentication into applications. As well, Okta provides means for developers to build identity controls for access to various portals and devices.

So far this year, OKTA has only seen modest gains, up less than 3% since the beginning of this year. Over the trailing one-year period, shares tumbled almost 30%. Still, for gamblers of otherwise leading cybersecurity stocks, OKTA could be intriguing.

On the financial end, the company’s biggest strengths lie in its top line. Over the past three years, it posted revenue growth of 33%, beating out 86.26% of its peers. And while it’s not the most discounted idea, OKTA trades at 2.1x book value, below the sector median of 2.79x. Lastly, analysts view the firm favorably, pegging shares a moderate buy. Overall, the experts’ price target stands at $94.50, implying over 32% upside potential. Thus, it could be one of the best cybersecurity stocks to buy.

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.

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With that caveat out of the way, occasionally swinging for the fences could be an appropriate strategy. For example, high-growth stocks to buy offer significant leverage. Even if you only put down a small amount at risk, the upside potential on these market gambles could lead to substantial rewards.

Plus, going for the best long-term growth stocks may allow you to make up for lost time. Perhaps you suffered some losses on particular trades and wish you can “get one back.” If the stars align right for these compelling enterprises, you almost have a time capsule opportunity.

And with that, below are the top stocks for 2024 for the gambling type to consider.

Block (SQ)

A relevant multinational technology conglomerate, Block (NYSE:SQ) soared during the early years of the Covid-19 pandemic. However, since then, SQ has struggled for traction. Since the beginning of this year, shares tumbled almost 4%. In the trailing one-year period, they gave up 23%. Fundamentally, the idea here is that Block could once again regain its mojo.

Still, does this framework mean that SQ represents one of the stocks to triple your money? Fundamentally, many analysts see much of the doom-and-gloom clouds separating. Plus, if the consumer economy gets positive traction at some point, Block could suddenly find itself in the running again.

Currently, Wall Street analysts peg SQ as a consensus moderate buy. This assessment breaks down as 18 buys, four holds, and one sell. On average, the experts’ price target lands at $86.19, which implies 38% upside over the next 12 months. Still, the high side price target is $100, implying over 60% upside. Thus, it may be one of the high-growth stocks to buy.

SolarEdge Technologies (SEDG)

A specialist in direct current-optimized investor systems, SolarEdge Technologies (NASDAQ:SEDG) benefited handsomely from the Covid-19-sparked housing boom. Basically, over a number of years, acquiring solar energy solutions will pay for itself. Plus, the broader political and ideological winds point to renewable energy initiatives. Unfortunately, SEDG isn’t quite the feel-good play that its narrative implies.

Since the start of the year, SolarEdge stock fell a worrying 37%. In the trailing 365 days, it’s down nearly 43%. Fundamentally, the issue centers on fading demand. Certain state residents enjoy cheaper electricity rates so pivoting to solar doesn’t quite make as much sense. And it’s not just SolarEdge; many other solar-related enterprises are hurting. Still, contrarians could make SEDG one of the stocks to triple your money.

Right now, analysts peg SEDG as a consensus strong buy. This assessment breaks down as 14 buys, two holds and zero sells. On average, the experts’ price target lands at $318.75, implying nearly 79% upside potential. Therefore, it could be one of the top stocks for 2024.

SPI Energy (SPI)

You’ll notice that the prior two ideas to triple your money featured analysts’ price targets that, while impressive, were nowhere close to three-digit percentage returns. With SPI Energy (NASDAQ:SPI) and the other companies below, you’re going to get your fireworks. Here, SPI is a global renewable energy firm and a provider of solar storage and electric vehicle solutions.

Interestingly, since the start of the year, SPI gained 40%. To be clear, though, SPI is an aspirational idea for stocks with triple potential. At the moment, the company suffers a negative three-year revenue growth rate (per-share basis). And its profit margins also sit deep in red ink. Pouring salt on its wounds, its balance sheet suggests a distressed enterprise.

However, analysts appreciate the underlying narrative. Specifically, Maxim Group’s Tate Sullivan pegs SPI a buy with a $5 price target. This forecast implies a gargantuan return of nearly 297% over the next 12 months. That will definitely get you into tripling territory and then some.

Fluent (FLNT)

Priced at 66 cents per share, Fluent (NASDAQ:FLNT) immediately requires a warning. You shouldn’t trade FLNT unless you’re ready for extreme volatility. Conspicuously, shares have already lost more than 43% of equity value since the Jan. opener. Also, with a market capitalization of $53 million, the company barely runs above the threshold of a nano-cap entity. Still, if you’re looking for stocks to triple your money by 2024, you must take risks.

And risks will be exactly what you’ll be absorbing. Aside from a distressed balance sheet that could face imminent bankruptcy, Fluent also suffers from deeply negative profit margins (aside from its 26% trailing-year gross margin). However, the company does print a three-year revenue growth rate of 7.7%. Yet it trades at a lowly 0.15x trailing sales.

Despite the enterprise’s obvious flaws, Fluent carries a very narrow moderate buy consensus view. This assessment breaks down as one buy, one hold. However, with an average price target of $3, FLNT holders would be looking at almost 356% upside potential. For extreme (read reckless) speculators, it could be one of the best long-term growth stocks.

Terran Orbital (LLAP)

Among the most speculative ideas for stocks to triple your money, I could see myself throwing a few pennies at Terran Orbital (NYSE:LLAP). Trading hands at $1.28 at the time of writing, LLAP risks attracting the ire of the New York Stock Exchange. Since the beginning of this year, LLAP slipped over 15%. However, in the past 365 days, the security gave up an alarming 71% of its equity value.

Still, gamblers might regard LLAP as one of the high-growth stocks to buy. Of course, this enthusiasm centers on the company’s satellite-based solutions business. As a report by McKinsey & Company points out, the space economy may grow from its recent valuation of approximately $447 billion to $1 trillion by 2030. Given Terran’s market cap of less than $186 million, that’s a gargantuan total addressable market.

To little surprise, analysts have jumped on LLAP, pegging it consensus moderate buy. This assessment breaks down into four buys, zero holds, and one sell. Overall, the experts’ average price target stands at $5.96, implying almost 366% upside potential. Under this framework, it’s one of the stocks with triple potential.

Meta Materials (MMAT)

Just an outrageously risky enterprise, Meta Materials (NASDAQ:MMAT) will force you to think twice. Since the beginning of this year, MMAT hemorrhaged nearly 76% of its equity value. Also, shares trade hands for around 27 cents, meaning volatility is all but guaranteed. Plus, its market cap of a bit over $126 million translates to an unpredictable ride. However, if you want stocks to triple your money by 2024, you must take these potshots.

According to its website, Meta is a platform technology company, with strong implications toward relevant sectors like aerospace, 5G communications, and EVs. However, a compelling narrative doesn’t always lead to a fiscally sound opportunity. Currently, Meta only sees middling strengths in the balance sheet. Also, its operating and net margins sit woefully deep in negative territory.

However, it cannot be denied that MMAT would be one of the top stocks for 2024 if analysts have their way. Specifically, Alliance Global Partners’ Jake Sekelsky has a buy rating with a $1.20 price target. This implies 352% upside potential if you’re the gambling type.

Immutep (IMMP)

A biotechnology firm, Immutep (NASDAQ:IMMP) works primarily in the field of cancer immunotherapy. Fundamentally, Immutep benefits from a large addressable market. According to Grand View Research, the global cancer immunotherapy market reached a valuation of $115.01 billion last year. Further, experts project that the segment will expand at a compound annual growth rate (CAGR) of 8.7% from 2023 to 2030.

At the culmination of the above forecast period, the sector should ring up revenue of $224.3 billion. Given that malignancies continue to rise, Immutep may “enjoy” a cynical upside. Sure enough, despite its speculative profile, shares gained over 11% of equity value since the Jan. opener. In the trailing year, shares are down about 9%, which isn’t too bad all things considered.

That said, you don’t want to bet the farm on an enterprise with a troubled profitability profile. Still, IMMP enjoys a consensus moderate buy view. As well, the analysts’ average price target clocks in at $8.50, implying nearly 317% upside potential. Therefore, it could be one of the stocks to triple your money (or quadruple it in this case).

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.

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At this juncture, undervalued stocks to buy may offer one of the safest approaches to the equities market. Right now, so many hot names may face a correction due to rising economic pressures. Therefore, acquiring popular ideas may leave you holding the bag. With sleeper stocks with potential, you run a lower risk of that happening. In addition, genuine must-buy sleeper stocks should eventually attract the public’s attention. When they do, the subsequent upside could be fast and furious. Therefore, it often pays to go off the beaten path.

On that note, below are hidden gem stocks for August to consider.

Pfizer (PFE)

Although Pfizer (NYSE:PFE) offered one of the most relevant ideas during the height of fears associated with the Covid-19 pandemic, fading relevance for the underlying solutions has made PFE one of the best sleeper stocks to buy. Sure, the print is ugly, there’s no denying that. Since the beginning of this year, PFE gave up more than 30% of its equity value. Still, the pharmaceutical giant enjoys vast scientific relevancies.

Undoubtedly, investors need to be cautious about certain metrics that make PFE appear significantly undervalued. For example, in its second quarter of 2023, the company posted revenue of $12.73 billion, down 54% from the year-ago quarter.

At the same time, Pfizer’s discounted cash flow (DCF) model – assuming earnings per share without non-recurring items (NRI) of 10.5% over the next 10 years – prints a fair value of $62.24. Given the most recent closing price of $35.64, PFE features a margin of safety of 42.74%. Therefore, it’s one of the hidden gem stocks for August to consider.

Centene (CNC)

A publicly traded managed care company, Centene (NYSE:CNC) is an intermediary for government-sponsored and privately insured healthcare programs. Despite its relevance, the market hasn’t been too kind to CNC. Since the beginning of this year, shares tumbled nearly 17%. Over the past 365 days, the stock is down 30%. Still, for daring contrarians, Centene could rank among the best sleeper stocks to buy.

Generally speaking, the company’s balance sheet could use some improvement. For instance, its Altman Z-Score sits at 2.59, which sits in the gray zone regarding fiscal stability. On the positive side, Centene benefits from a three-year free cash flow (FCF) growth rate (per-share basis) of 71.5%, beating out 85.71% of its healthcare rivals.

Also, CNC symbolizes one of the undervalued stocks to buy. Presently, it trades with a trailing-year earnings multiple (without NRI) of 13.67. In contrast, the sector median stat stands at a loftier 19.09x. As well, CNC trades at 10.23x forward earnings. This stat ranks favorably lower than 77.78% of its peers.

Cal-Maine Foods (CALM)

An American fresh egg producer, Cal-Maine Foods (NASDAQ:CALM) should fundamentally benefit from shifting consumer behaviors. Specifically, if economic pressures build, people will prioritize the necessities over discretionary purchases. However, the market appears to be severely discounting this logical (albeit cynical) thesis. Since the start of the year, CALM slipped more than 18% in equity value.

Still, investors seeking the best sleepers stocks to buy should really consider loading up on CALM. Primarily, the company benefits from excellent stability in the balance sheet. Right now, Cal-Maine has zero debt, giving it incredible flexibility for whatever lies ahead. Operationally, CALM enjoys a strong three-year revenue growth rate of 32.3%, above 92% of its rivals.

At the moment, CALM trades with a trailing-year earnings multiple (without NRI) of 2.92. In contrast, the sector median stat clocks in at 20x. Also, it’s worth pointing out that CALM trades at 0.7x trailing-year revenue. However, the sector median stat comes in at a loftier 0.96x. Combined with the compelling fundamentals, CALM represents one of the sleeper stocks with potential.

Jerash Holdings (JRSH)

An interesting though risky idea for best sleeper stocks to buy, Jerash Holdings (NASDAQ:JRSH) manufactures and exports custom, ready-made sport and outerwear from Jordan. Per its website, Jerash makes products for some of the most popular brands in the world. It’s risky because you don’t really know how well the consumer economy may hold up. However, JRSH could rise if the economy turns out to be more resilient than expected.

For those that want to take a stab at JRSH, the underlying enterprise enjoys a strong balance sheet. In particular, it features a cash-to-debt ratio of 23.15x, superior to 88.47% of its peers in the apparel manufacturing industry. As well, it sees its Altman Z-Score ring up 4.99, indicating high stability and low bankruptcy risk.

Presently, the company runs a three-year revenue growth rate of 10.2%, above 72.36% of rivals. However, it also trades at a lowly 0.35x trailing sales. Therefore, it might be worth consideration for must-buy sleeper stocks.

Petco (WOOF)

Another fundamentally enticing opportunity among the best sleeper stocks to buy that also carries significant risks, pet products retailer and services provider Petco (NASDAQ:WOOF) deserves a spotlight. Primarily, that’s due to America’s love for its pets. Looking at pet industry data in the U.S., consumers continue to shell out big-time bucks for their furry friends. Also, the industry growth trend is impressive because it runs in the face of headwinds such as inflation.

Now, the big question is, will this sentiment continue to hold strong if circumstances truly worsen? To be honest, the jury is out on that question. Sadly, during the Great Recession, harsh financial conditions forced households to abandon their pets. You’d think that the more conscientious millennials will hold onto the bitter end. Still, only time will tell.

In the meantime, Petco prints a very solid three-year revenue growth rate of 14.7%. Nevertheless, it also trades at an attractive sales multiple of 0.32. Thus, it might be one of the hidden gem stocks for August to consider.

MaxLinear (MXL)

An American technological hardware company, MaxLinear (NASDAQ:MXL) provides highly integrated radio-frequency analog and mixed-signal semiconductor products for broadband communications applications. It sounds relevant because it is relevant. Unfortunately, the broader semiconductor market suffers from slowing demand, particularly in the smartphone and PC space.

Notably, MXL fell a bit more than 29% since the Jan. opener. In the trailing year, it gave up almost 39% of equity value. At the same time, for hardened contrarians, MXL could make a case for the best sleeper stocks to buy. Worth mentioning is that MaxLinear boasts an excellent three-year revenue growth rate of 45.8%. Also, its EBITDA growth rate impresses at 72.8% during the same period.

Despite its impressive performance, MXL trades at 1.86x trailing-year sales. In contrast, the sector median stat clocks in at 2.72x. Also, MXL’s forward multiple is 19.79. As a discount to projected earnings, MaxLinear ranks better than 26% of the competition. Thus, it’s one of the undervalued stocks to buy.

Airgain (AIRG)

An extremely small enterprise, Airgain (NASDAQ:AIRG), which specializes in complex antenna design and other connectivity-related solutions, prints a market capitalization of just a whisker under $50 million. For many experts, that’s the cutoff between a nano-cap play and a micro-cap entity. Naturally, investors should be careful here. Also, shares lost more than 29% of equity value since the start of the year.

To be fair, Airgain doesn’t enjoy the greatest financial print, particularly with its negative profit margins (aside from its 36% gross margin). However, the company’s balance sheet is surprisingly robust. Conspicuously, its cash-to-debt ratio clocks in at 4.45x, better than 70.5% of its tech hardware peers.

Operationally, Airgain rings up a three-year revenue growth rate of 10.5%, beating out 68% of sector rivals. Nevertheless, AIRG trades at only 0.66x trailing sales. In contrast, the sector median stat runs at 1.4x. Therefore, AIRG may be one of the best sleeper stocks for those who want to gamble.

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.

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Amazon (AMZN)

Amazon (NASDAQ:AMZN) delivered what was arguably the strongest second-quarter print, sending its stock up 10% in the process. The Seattle-based company beat Wall Street estimates across the board and raised its forward guidance, telling analysts and investors everything they wanted to hear. Notably, earnings per share of 65 cents were 85% higher than the 35 cents expected by analysts.

Second-quarter revenue came in at $134.4 billion, as compared to forecasts for $131.5 billion. Amazon Web Services (AWS) earned $22.1 billion in revenue during the quarter, which was greater than the $21.8 billion expected. Online advertising revenues came in at $10.7 billion, beating forecasts for $10.4 billion. The Q2 results are some of Amazon’s best earnings beat since the fourth quarter of 2020. Looking ahead, Amazon now expects sales of between $138 billion to $143 billion for the current third quarter.

Nvidia (NVDA)

Nvidia (NASDAQ:NVDA) is scheduled to issue second-quarter results on Aug. 23. However, I believe it will be difficult for the company to top its  Q1 results, which were so good they sent the company’s stock up 25% in a single trading session. In fact, in that quarter, Nvidia blew away Wall Street expectations and said that it was seeing “surging demand” for its artificial intelligence chips.

Q1 EPS of $1.09 was well ahead of the 92 cents that was expected among professional analysts. Revenue in Q1 amounted to $7.19 billion compared to $6.52 billion that was forecast. While expectations are sky-high heading into the Q2 print, many analysts expect another beat and raise from the chipmaker. In addition, those first quarter results confirmed expectations that Nvidia’s chips will play a major role in the AI revolution.

Alphabet (GOOG, GOOGL)

Like Amazon, tech giant Alphabet (NASDAQ:GOOG, NASDAQ:GOOGL) redeemed itself with its Q2 financial results. In fact, Alphabet’s stock rose 7% after the company reported EPS of $1.44 as compared to expectations of $1.34. Revenue for the quarter ended June 30 came in at $74.6 billion, as compared to $72.82 billion forecast. Among Alphabet’s various business units, cloud computing was the big earnings driver, with its revenue totaling $8.03 billion compared to the $7.87 billion that was forecast.

Alphabet also announced that its YouTube advertising revenue totaled $7.67 billion as compared to expectations of $7.43 billion. Other Bets, which include the Waymo self-driving car and the Verily life sciences unit, reported a 48% increase in revenue to $285 million in Q2. The company also signaled that it should return to double-digit revenue in this year’s fourth quarter.

Netflix (NFLX)

Netflix’s (NASDAQ:NFLX) second-quarter earnings may not have been hot, but its subscriber additions were. The streaming company reported that it added 5.9 million net new subscribers during the second quarter, which trounced the 1.9 million that Wall Street forecast. The subscriber additions were the company’s best since the depths of the Covid-19 pandemic in 2020. Netflix now has a total of 238.4 million subscribers worldwide.

Additionally, Netflix said that its crackdown on password sharing and launch of a cheaper $6.99 per month advertising tier is starting to bear fruit. Alas, NFLX stock fell 7% after the Q2 print as the forward guidance provided by the company disappointed analysts. A Q3 revenue forecast of $8.52 billion was lower than the $8.67 billion that was anticipated. Still, Netflix executives said that new subscriber sign-ups are exceeding cancellations and they expect sales growth to accelerate through year’s end. NFLX stock is up nearly 50% year to date.

Meta Platforms (META)

Meta Platforms (NASDAQ:META) bounced after the parent company of Facebook and Instagram reported Q2 earnings that soundly beat Wall Street forecasts. Driven by a rebound in digital advertising on its various social media platforms, Meta reported earnings of $2.98 a share as compared to the $2.91 that had been expected. Revenue in the quarter totaled $32 billion compared to consensus estimates of $31.12 billion.

In addition, revenue increased 11% from a year earlier. That was the first time the company reported double-digit sales growth since the end of 2021. In terms of forward guidance, Meta Platforms forecast Q3 revenue of $32 billion to $34.5 billion, implying growth of at least 15% from a year earlier. Analysts forecast Q3 revenue of $31.30 billion. The company has been striving to become more efficient, cutting 21,000 jobs since January of this year. META stock has been red hot, gaining 150% so far in 2023.

Microsoft (MSFT)

As with Netflix, Microsoft’s (NASDAQ:MSFT) latest earnings were overshadowed by the forward guidance provided. The Q3 forecast obscured the fact that the Seattle-based software company posted solid results, including EPS of $2.69, which beat analyst estimates of $2.55. Revenue also beat expectations, coming in at $56.19 billion as compared to the $55.47 billion that was anticipated.

Despite solid numbers, the stock still dropped on news MSFT now expects to post revenue of $53.80 billion to $54.80 billion, suggesting 8% growth for the current quarter. Sadly, that fell short of the $54.94 billion consensus expectation of analysts who follow the company. Microsoft’s pending $68 billion acquisition of video game maker Activision Blizzard (NASDAQ:ATVI) also seems to be weighing on the share price. But don’t forget that Microsoft is also rolling out new AI products that build on its partnership with ChatGPT maker OpenAI.

Intel (INTC)

If there’s a dark horse candidate among this group, it’s Intel (NASDAQ:INTC). The chipmaker saw its stock jump 7% after reporting that it returned to profitability following two consecutive quarters of major financial losses. For Q2 of this year, Intel reported EPS of 13 cents as compared to a loss of three cents that had been expected. Revenue came in at $12.90 billion as compared to the $12.13 billion forecast by analysts.

For the current third quarter, Intel forecast earnings of 20 cents a share on revenue of $13.40 billion. That compares to consensus analyst expectations for 16 cents a share on $13.23 billion in revenue. Intel executives said $3 billion of cost cuts are starting to have beneficial results.

On the date of publication, Joel Baglole held long positions in MSFT, NVDA, and GOOGL. 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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That will bring the price of a barrel of crude oil to an average of $86 for the second half of the year. That’s about 10% higher than the prior forecast.  

Even before the EIA report, investors have been plowing money back into energy stocks, particularly oil and gas stocks. However, just like that other red-hot sector, artificial intelligence, not every energy stock is looking like a good buy. For various fundamental reasons, these three stocks fall into the category of risky energy stocks.  

As I always like to mention in an article like this, selling stocks is a natural part of trading even for long-term oriented investors. It may not be a time to say goodbye to these stocks forever, but when it comes to the oil sector, there appear to be more compelling buys right now.  

Nabors Industries (NBR) 

Nabors Industries (NYSE:NBR) is first on this list of risky energy stocks. The company is one of the world’s leading providers of high-specification onshore drilling rigs. In the company’s first quarter investor presentation, Nabors reported that they had 52% of their rigs in operation throughout the world.  

Nabor’s revenue has been growing on a quarterly and year-over-year basis. Things get trickier when you look at earnings. Onshore drilling is a volatile industry with notoriously low profit margins. Although Nabor’s has managed to show improvement, it still is unprofitable even after its reverse stock split in 2020.  

With the world needing more oil production, it seems logical that Nabors will continue to grow revenue and they may even be able to show a profit. However, among institutional investors, sellers outnumber buyers by a healthy margin.  

This tells me that there may be a decent trading opportunity with NBR stock, but it’s not a good candidate for long-term investors.  

Clean Energy Fuels (CLNE) 

With governments all over the world committing to an energy transition, Clean Energy Fuels (NASDAQ:CLNE) would seem like a stock to buy. The company provides renewable natural gas (RNG), compressed natural gas (CNG), and liquefied natural gas (LNG) for medium and heavy-duty vehicles.  

To be fair, the company is growing its revenue, although the growth has been uneven. The same can be said for the company’s earnings. The company has been in business since 2001 and has yet to turn a profit. The current forecast doesn’t show that it will change in the next two years at least.  

At a time when there are other energy stocks that are turning a profit and are rewarding shareholders, it’s hard to recommend a stock that is doing neither. CLNE stock trades for less than $5 a share as of this writing. That may be attractive to some traders, but without more to see in terms of positive earnings, investors have good reason to put this on a list of risky energy stocks.  

Transocean (RIG) 

Transocean (NYSE:RIG) provides drilling equipment that oil companies need for their drilling operations. The company’s earnings report shows steady revenue that has fluctuated along with oil demand.  

However, like other stocks on this list, the issue comes on the bottom line. Transocean is not profitable, and it doesn’t appear it will be profitable anytime soon. Strictly from a technical standpoint, Transocean is trading near the top of its 52-week range and short interest is around 17%. All signs point to RIG stock moving down in the near term. 

Furthermore, the company competes with companies such as Halliburton (NYSE:HAL). Right now, when I look at HAL stock, I see a profitable company with a forward P/E ratio of just 13x. It even pays a respectable dividend.  

This means that even within its own subsector of the oil and gas market, there are better options. This is one that you can pass on for now.  

On the date of publication, Chris Markoch 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 Markoch is a freelance financial copywriter who has been covering the market for over five years. He has been writing for InvestorPlace since 2019.

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There are many companies within this sector making improvements in products and services, applying technology, science, discoveries and endless innovative tools to bring increased efficiency and effectiveness to the table. Here I bring you the best healthcare stocks to buy right now.

UnitedHealth (UNH)

Picture UnitedHealth Group (NYSE:UNH) as that reliable friend you turn to for health support, both for yourself and your loved ones. Imagine the company as the unsung heroes working tirelessly behind the scenes to ensure quality healthcare is accessible to all. Whether it’s health insurance or medical services, its mission is to make the path to well-being easier for everyone.

UnitedHealth earns such high praise because it’s akin to a championship team in the realm of healthcare. The company not only demonstrated its prowess but has steadily expanded over time. That makes the business a top-tier choice if you’re considering investing in healthcare. Investing in UnitedHealth is like putting your faith in a time-tested and proven entity.

Let’s delve into its most recent financial performance and brace yourself for some surprising news! In the second quarter of 2023, the company managed to rake in approximately $93 billion in revenue. That marks a substantial 16% upswing from the previous year. What’s more, their earnings grew by an impressive 13%, resulting in about $11 billion in operational cash flow. While the earnings per share might seem around $5.82 initially, when you account for certain adjustments, the figure is actually hovering around $6.14 per share. That signifies UnitedHealth’s outstanding performance and commitment.

But hold on, there’s more to their story. UnitedHealth doesn’t just focus on numbers, it is deeply committed to creating meaningful change within communities. The business launched an initiative called UnitedHealthcare Catalyst in Georgia. Collaborating with other organizations, the company is tackling diabetes head-on. That involves offering health education, managing medications and ensuring access to nourishing food. It’s like extending a helping hand to elevate people’s quality of life.

Merck & Co (MRK)

Merck & Co. (NYSE:MRK), also known as MSD, is a major player in the healthcare landscape. Its central mission revolves around crafting medications and therapies that foster well-being. This company is a prime contender for healthcare investment, boasting a track record of successful medical advancements. Merck stands as a leader in pivotal fields like cancer treatment and vaccines.

Turning to its most recent financial update, Merck reported global sales amounting to $15.0 billion, an impressive 3% upturn from the preceding year. The growth underscores the company’s upward trajectory. Excluding the contribution of a drug called LAGEVRIO, its expansion was even more remarkable at 11%. This bodes well for potential investors.

In the realm of flagship products, the drug KEYTRUDA, used to combat various cancers, saw an exceptional 19% surge in sales. That’s a substantial leap! Another triumph comes from the vaccine GARDASIL/GARDASIL 9, which experienced a staggering 47% sales hike. However, LAGEVRIO witnessed an 83% dip in sales, warranting some concern.

Beyond the numbers, Merck also presented compelling data at a medical conference. Clinical trials targeting early-stage cancer yielded positive results, promising a brighter future. Additionally, its collaboration with Moderna (NASDAQ:MRNA) in a clinical trial shows encouraging signs.

Thermo Fisher Scientific (TMO)

Think of Thermo Fisher Scientific (NYSE:TMO) as that brilliant friend who’s always unearthing fascinating discoveries. The company stands as a pioneer in science and health, aiding researchers and pharmaceutical firms in unraveling the intricacies of everything from proteins to medical treatments. Its knack for sparking innovative ideas sets the business apart and makes it an attractive investment in the healthcare sphere. Thermo Fisher’s ongoing innovations, such as an AI-powered super microscope and a precision protein study mass detector, truly make it stand out.

In its latest financial overview, while the company might have slightly dipped in earnings compared to the previous year, its true growth story remains intact. Consider that TMO earned roughly $3.51 per owned share of the company. However, after adjusting certain factors, this figure translates to around $5.15 per share. Despite navigating through a challenging economic climate, its strategic acumen helped weather the storm effectively.

And as if that weren’t impressive enough, Thermo announced its intention to acquire CorEvitas, a move costing about $912.5 million. That development is enthralling because CorEvitas specializes in gathering real-world data from individuals undergoing approved medical treatments. It’s akin to glimpsing into the practical realm of medicine. The data-driven insight empowers pharmaceutical firms to make more informed and prompt decisions — a testament to Thermo Fisher’s commitment to advancing healthcare.

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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While building your retirement portfolio, you not only need to look for stocks that can generate steady income but also look for companies that can withstand the ups and downs in the market. Such companies have a solid balance sheet and will continue to perform no matter what is going on in the market. Holding dividend stocks in your portfolio is an ideal way to ensure steady income, but it makes sense to look for dividend stocks that show steady growth and are reliable. Let’s take a look at the best retirement stocks to buy in August.

Visa (V)

Visa (NYSE:V) is one company that is highly resilient, and can continue to grow in any market situation. The company only ever saw its sales drop during 2020 when the world was struggling with the pandemic. Visa recently announced quarterly results and beat analyst expectations. Its revenue increased by 12%, and it also saw a rise in the cross-border payments volume. It saw a 9% rise in the payment volume, and revenge travel has also led to a surge in the volume. With the world steadily moving towards digitization, the company will continue to see growth in the volume.  

The company makes money through the fees it charges on the transfer of money across its network. Since Visa has global operations and is present in multiple countries, inflation in one country will not have an impact on the company’s business. With more than 100 million locations globally, Visa’s network is only getting bigger. Visa cards have become such an integral part of our lives that a new fintech company won’t be able to achieve such a huge network in terms of merchants and consumers.

V stock is trading at $239 today and is up 15% year to date. It is moving closer to the 52-week high of $245 but I believe it has the potential to move higher. The company has a dividend yield of 0.75% and a quarterly dividend payout of $0.45. Its dividend payout ratio is 19.39% and is lower than the sector’s payout ratio, which means there is a potential for the company to raise dividends in the future.  The demand for Visa is not going to slow down and besides enjoying a steady dividend income, you will also enjoy capital appreciation in the coming years. Visa is one of the top retirement stocks with growth potential. 

Microsoft (MSFT)

One of the top tech companies to own, Microsoft (NASDAQ:MSFT) should be a part of every retirement portfolio. A tech dinosaur, the company has grown so much throughout the past few years that even a slowdown or a disappointing quarter does not lead to a major pullback. In the recent quarter, the company saw sales rise 8% year over year and an 18% increase in the operating income. It expects the top line in the range of $53.8 billion to $54.8 billion. While the company did report a slowdown in cloud business growth, I believe it is temporary and even if there is a slowdown, Microsoft is a diversified business and can continue generating income steadily.

There will never come a time when the world will not need computers, or data storage software or will stop playing video games and this means Microsoft will always be in demand. The company is also benefiting from the investments in AI and we will see it reflected in the revenue over the coming quarters. It has already made a $13 billion investment in OpenAI and the management believes it could become a leader in the AI space over the next decade. 

OpenAI has given access to the research and development resources to Microsoft, which has allowed the company to build its own products and integrate them into the Microsoft software. MSFT is one of the must-buy retirement stocks in August. MSFT stock is trading at $326 today and is up 36% year to date.  It has a dividend yield of 0.83% and paid a quarterly dividend of $0.68. The company has a dividend payout ratio of 27.73% and it has enough cash to be able to increase this in the coming years. 

Apple (AAPL)

Warren Buffet’s favorite company, Apple (NASDAQ:AAPL) is a household name today, and it is one of the leading retirement stocks. The company is known for the iconic iPhone, but it has diversified into other products and services which continue to generate steady revenue. One thing that Apple has and its competitors don’t have is customer loyalty. Apple users seldom switch to other brands when it comes to phones or laptops. The loyal and satisfied customer base is the strength of the company, and consumers are ready to pay a premium for its products. That said, the company is also offering exceptional services and has seen a surge in service revenue throughout the years.  

The company rewards its shareholders through share buybacks and dividends. It has a dividend yield of 0.53% and has recently paid a quarterly dividend of $0.24. The company has a dividend payout ratio of 14.82%, and it has a solid cash balance to be able to increase it in the coming years. In the last quarter, it returned $24 billion to the shareholders and it has increased dividend each year since 2013. AAPL stock is trading at $179 today and is up 43% year to date. All in all, Apple is a stellar company and you should add it to your portfolio for its growth and quality. This is one company that may see temporary ups and downs but it will continue to hold a dominant position in the market. 

On the date of publication, Vandita Jadeja 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.

Vandita Jadeja is a CPA and a freelance financial copywriter who loves to read and write about stocks. She believes in buying and holding for long term gains. Her knowledge of words and numbers helps her write clear stock analysis.

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Other reasons for the downturn in healthcare equities include poor earnings on the part of many healthcare service providers, and a dramatic drop-off in Covid-19 vaccine sales and related medical care. With the outlook for the healthcare sector remaining cloudy, we offer up the following three healthcare stocks to sell in August before they crash and burn. It is no coincidence that these stocks are all makers of Covid-19 vaccines.

Moderna (MRNA)

Moderna’s (NASDAQ:MRNA) stock continues to suffer the worst Covid-19 hangover. The biopharmaceutical company, whose share price skyrocketed during the pandemic, has come crashing back to earth. So far in 2023, MRNA stock is down 44% and trading below $100. The company’s share price is now trading nearly 80% below the all-time high it reached in September 2021 as it racked up billions of dollars in global vaccine sales.

Moderna just reported ugly second-quarter financial results that showed sales of its Covid-19 shot dropping 94% from a year earlier. Total revenue at the company declined to $344 million from $4.75 billion. While the drug maker continues to tout its pipeline of new products that includes several cancer treatments and a medication against influenza, the Covid-19 vaccine is currently Moderna’s only marketable product. MRNA stock is risky and a healthcare security to sell in August.

Novavax (NVAX)

Novavax (NASDAQ:NVAX) just came out with second-quarter financials that showed a surprise profit at the vaccine maker. Having said that, don’t be fooled. The approval and subsequent rollout of the company’s Covid-19 vaccine has been a major disaster. In fact, that the company earlier this year warned about its ability to remain in business. A true Johnny-come-lately, Novavax’s Covid-19 vaccine was so behind in terms of coming to market that by the time it arrived, demand for the medication had dropped all around the world.

Novavax’s strategy for its Covid-19 vaccine largely consisted of offloading it in third-world countries where some demand for the medication remained. That strategy hasn’t proven to be the best one for the company. Novavax was given a lifeline recently by the Canadian government which decided to pay $350 million for forfeiting Covid-19 vaccine doses that were ordered but no longer needed. For Q3 of this year, Novavax warned that it is likely to have no sales as the United States Food and Drug Administration (FDA) isn’t likely to make a decision on its newest Covid-19 shot until late September. NVAX stock has plunged 87% in the last 12 months. It is clearly time to sell.

Pfizer (PFE)

Lastly, we have drug maker Pfizer (NYSE:PFE), which is also enduring a reversal of fortune as sales of its approved Covid-19 vaccine decline. As with Moderna, Pfizer just reported a steep decline in sales of its Covid-19 vaccine during Q2. The company announced a 54% slide in its Q2 revenue to $12.73 billion. However, removing sales of the company’s Covid-19 vaccine and Covid-19 antiviral pill called Paxlovid, revenue at Pfizer actually grew 5% from a year earlier.

Sales of Pfizer’s Covid-19 medications totaled $1.6 billion in the quarter ended June 30 of this year. In 2022, Pfizer sold $37.8 billion of its Covid-19 vaccine worldwide, powering the company’s revenue for that year to a record $100 billion. Now, Pfizer has lowered its 2023 sales forecast to a range of $67 billion to $70 billion, down from a previous outlook of $67 billion to $71 billion, citing continued weakness in Covid-19 vaccine revenues. Company executives continue to say they are in a “transition period.” PFE stock is down 30% this year.

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, while this sort of trading is exciting, the truth is that most risky meme stocks have poor fundamentals. After all, if a company had a high level of profitability and a strong business outlook, it would probably trade at a high valuation regardless of social media’s backing.

In particular, with these worst meme stocks for August, it’s time to sell before the party ends. These stocks may be popular right now, but there’s little guarantee that the popularity will last. Once the meme status wears off, there is little to otherwise justify owning these three meme stocks in August and beyond.

T2 Biosystems (TTOO)

T2 Biosystems (NASDAQ:TTOO) is an in vitro diagnostics company. It offers products such as T2Dx Instrument, T2Candida and T2Bacteria which allow clients to test patient samples for a wide variety of pathogens, biomarkers and/or other abnormalities.

TTOO stock has not had a good run throughout the past year. It fell deep into penny stock territory earlier in 2023 as the company’s operating results have continued to disappoint. With just $17 million in annual sales and operating losses well in excess of that mark, T2’s long-term future seems grim.

That said, TTOO stock got a boost recently. The Nasdaq gave T2 Biosystems an extension for getting back in compliance with its listing requirements. T2 will now have until later in November to get its share price back above $1, and otherwise regain compliance with Nasdaq rules.

That’s good news, to be certain. However, it hardly offsets the bigger issues; unless T2 dramatically boosts revenues or slashes expenses, its balance sheet will be under heavy strain. Meanwhile, TTOO stock has soared from a low of 5 cents back up to 30 cents on the recent meme excitement. That seems like far too large of a move for such a modest development as a Nasdaq listing extension.

Tilray (TLRY)

Tilray (NASDAQ:TLRY) is a long-struggling cannabis company. Since its euphoric peak in 2018, TLRY stock has gone on to lose approximately 99% of its value.

Tilray has grown to be a decent-sized business; it generated more than $600 million in revenues last year. Unfortunately, this has not resulted in a profitable business; Tilray lost an astonishing $1.4 billion throughout the past 12 months. Simply put, the marijuana market simply hasn’t developed in the way that Tilray’s management had hoped.

So, it was time for a pivot. On Tuesday, Tilray announced a surprising move; it will be heavily leaning into the craft brewing business. Specifically, it is buying $85 million of beer brands from Anheuser-Busch InBev (NYSE:BUD); acquired brands include Shock Top and Red Hook.

TLRY stock popped 36% on the news. It’s not hard to understand the enthusiasm as Tilray shifts from its money-losing marijuana operations toward a more profitable industry. Still, beer has proven to be highly competitive, and Tilray is buying brands from Anheuser-Busch InBev. Traders shouldn’t count on Tilray’s beer venture to turn the firm’s fortunes around overnight.

AMC Entertainment (AMC)

AMC Entertainment (NYSE:AMC) has been one of the longest-running meme stocks. However, the magic may be running out on this one.

The economy has been reopened for quite a while now, and yet movie theater attendance has struggled to recover to pre-pandemic levels. Yes, there is the occasional blockbuster movie, such as Barbie that generates a box office boom. However, on average, the data remains disheartening.

As such, AMC is in trouble. It has a ton of debt, and rising interest rates will make it more costly for AMC to service those obligations. The company attempted to deal with much of its debtload by issuing more stock, but shareholders blocked that initiative.

As a second effort, AMC created its AMC Preferred Stock (NYSE:APE) as a unique mechanism to generate more funding. Unfortunately, that has gotten tripped up in legal issues as well. The fact is that AMC likely needs to raise a lot more money, and it’s not clear if it will be able to raise funds in a timely fashion. All this could have AMC inching closer to bankruptcy.

All in all, AMC has been one of the more impressive meme stock phenomena. Unless its financial outlook radically improves, AMC seems doomed to be heading toward penny stock territory.

On the date of publication, Ian Bezek 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.

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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Fueled by favorable stress test outcomes and the fading troubles of regional bank troubles, these leading bank stocks have caught the eye of savvy investors. If the economic engine continues its powerful performance and the job market remains robust, wagering on bank stocks could be an incredibly smart move.

Having said that, let’s look at three bank stocks with potential that could offer beneficial exposure to the sector’s finest. These financial sector stalwarts weather the storm and promise a profitable voyage for those who can stomach the risk.

JPMorgan (JPM) 

JPMorgan (NYSE:JPM) is standing tall as the largest U.S. bank in terms of assets under management. It continues to flaunt its financial might, reporting a massive surge in sales to $41.3 billion in the second quarter. This uptick also saw a record profit during the same period, adding another feather to the cap of the century-old conglomerate.

Though the company’s deposits witnessed a year-over-year dip, these are more likely a reflection of regional banks’ incentives than a cause for concern. Unlike regional competitors, JPMorgan seeks to minimize losses instead of attracting more depositors with higher interest rates.

It boasts an enviable dividend profile yielding over 2.5% with eight consecutive years of payout expansion. Further sweetening the pot, the firm recently announced a 5% year-over-year boost to its quarterly dividend, raising it to $1.05 per share for the third quarter, underlining its sustained financial robustness.

Goldman Sachs (GS)

Goldman Sachs (NYSE:GS) is a titan in Wall Street’s global finance landscape. With an illustrious 150-year history, it’s generated consistent shareholder returns averaging over 20%. Despite facing scandals and criticisms, the bank has effectively maintained its reputation as the best investment bank in the world. Renowned for its expertise in raising capital, mergers, and more, the bank is poised for resurgence as macro uncertainty wanes and the global banking segment recovers.

Though 2022 saw a 24% drop in sales due to the IPO market collapse, the horizon looks promising. The Federal Reserve’s rate hike cycle is nearing the end, pointing to an IPO market revival with successful listings already materializing. Additionally, plans to wind down and potentially sell loss-making segments foreshadow an earnings uptick. Such strategic moves reiterate Goldman Sachs’ resilience and capacity to adapt, fortifying its position as a leading financial powerhouse.

New York Community Bank (NYCB)

Despite a troublesome year for regional banks with three already failed, New York Community Bank (NYSE:NYCB) emerges as an exception. This regional bank has not only survived but thrived, positioning itself as one of the hottest banking stocks at this time — with an incredible dividend to boot. By acquiring most of the deposits and $13 billion in loans from the failed Signature Bank, NYCB has scored a massive victory and boosted its assets by more than 35% to over $120 billion.

Its second-quarter results further demonstrate its rock-solid financial performance. Its adjusted earnings per share of 47 cents crushed the 31 cents average analyst estimate, and net interest income of $900 million blew past the $771 billion consensus. The bank is showing no signs of slowing down. Additionally, total revenue rose 219% year-over-year, painting a bright future for NYCB.

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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DraftKings (DKNG)

The stock of online betting and fantasy sports company DraftKings (NASDAQ:DKNG) continues to run hot following its recent second-quarter earnings report. The Boston-based company announced that the number of unique monthly users on its betting platform rose 44% in Q2 from a year earlier. The company’s loss per share of 17 cents beat estimates of a 25 cent per share loss, and its Q2 revenue of $875 million was higher than consensus forecasts by $112 million.

The bottom line is that sports betting in the U.S. is growing in popularity, and DraftKings is leading the way. The strong Q2 print led DraftKings to raise its forward guidance, saying it now expects full-year revenue in a range of $3.46 billion to $3.54 billion, up from a previous range of $3.14 billion to $3.24 billion. DKNG stock has been on a big run this year, having risen more than 180% since January. The NFL football season that starts September 8 is expected to be a major catalyst, making this one of the best growth stocks to buy in August.

Advanced Micro Devices (AMD)

The stock of microchip and semiconductor company Advanced Micro Devices (NASDAQ:AMD) is recovering nicely after initially dipping following its Q2 financial results. Since announcing the Q2 print on August 1, AMD stock has gained 8% and looks to continue on the growth trajectory, with the share price up 85% year to date. Despite the initial selloff, AMD’s Q2 print was strong, beating Wall Street forecasts on the top and bottom lines.

AMD announcing an 18% year-over-year revenue decline due to an ongoing slump in personal computer (PC) sales had spooked investors and analysts. But the company’s growth trend remains positive, and its focus on chips and semiconductors that enable artificial intelligence (AI) applications positions it well to capitalize on the technology. The company just released its new MI300X chip to help build and run AI chatbots such as ChatGPT and is expected to power sales going forward. This is for sure a top growth stock for August.

Alphabet (GOOG / GOOGL)

Speaking of exposure to AI, how about Alphabet (NASDAQ:GOOG, NASDAQ:GOOGL)? The Google parent company saw its stock jump 7% higher immediately after it reported better-than-expected Q2 results, bringing its year-to-date gain to 46%. Driven largely by growth in its cloud-computing unit, Alphabet reported earnings per share (EPS) of $1.44 versus $1.34, which had been forecast on Wall Street. Revenue for the quarter ended June 30 came in at $74.60 billion compared to $72.82 billion that analysts had forecasted.

However, GOOGL stock is primarily driven higher by expectations surrounding its global leadership in AI. In mid-July, the company’s share price jumped 5% higher in a single trading session on news that Alphabet had expanded its AI chatbot, called “Bard,” to Europe and Brazil. The launch of Bard across the European Union had been held up by regulators who voiced privacy concerns. Now, Alphabet has overcome those concerns, leading to the growth of its chatbot.

On the date of publication, Joel Baglole held a long position in GOOGL. 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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And so, in this climate, some once-promising growth stocks are looking less like the sure bets they did even a few weeks ago. Investors should be careful with the growth stocks in their portfolios. It might be smart to trim some positions and sell others outright as the road ahead gets murkier.

Here are three growth stocks to sell in August before they crash and burn.

Apple (AAPL)

Since reporting its latest financial results, the share price of Apple (NASDAQ:AAPL) has declined nearly 10%. The selloff was prompted by news that sales of the company’s flagship products, notably the iPhone, declined for a third consecutive quarter. Specifically, iPhone sales in the most recent quarter dropped 2% from a year earlier, Mac computer sales declined 7% year-over-year, and iPad revenue sank 20% from the same period of 2022. This has resulted in $200 billion being wiped off Apple’s market capitalization in a matter of days.

Analysts and investors are now trying to figure out what the continued slump in product sales means for Apple and where the consumer electronics giant goes from here. Are the company’s best days behind it? Or is this a temporary slump in demand that will reverse course? Most analysts seem to agree that Apple’s upcoming iPhone 15, due out in September, has to attract consumers and boost global sales. Furthermore, some analysts are focusing on Apple’s pivot to services such as Apple TV and Apple Pay, the company’s payment platform.

Time will tell where AAPL stock ultimately ends up, but for now it’s a growth stock to sell.

Eli Lilly (LLY)

Things are looking frothy with drug maker Eli Lilly (NYSE:LLY), which is usually what happens right before a stock endures a pullback. On the day of this writing (August 8), LLY stock is up as much as 17% in a single trading session after the company reported blockbuster Q2 results and lifted its forward guidance. The beat and raise was largely due to sales of the company’s much hyped medication Mounjaro that is used to treat Type 2 diabetes but may also be used for weight loss. Approval as a weight loss drug is pending regulatory approval.

The company raised its full-year earnings per share forecast to $9.70 to $9.90 a share from previous guidance of $8.65 to $8.85. That increased guidance assumes Mounjaro will be approved by the U.S. Food and Drug Administration (FDA) as a weight loss treatment. Investors are bidding up LLY stock on expectations of that approval too. The company’s share price has gained 45% YTD.

But what happens if the FDA doesn’t approve Mounjaro as a weight loss treatment? The bubble surrounding this stock could burst. Proceed cautiously.

Southwest Airlines (LUV)

Most airlines are crushing it this year as travel across the U.S. and around the world skyrockets following the pandemic, but not Southwest Airlines (NYSE:LUV). The company’s share price shed 9% immediately after it issued Q2 results that showed its revenue declining and its profit missing consensus with Wall Street forecasts. LUV stock is now down 15% over the last 12 months. The carrier blamed the poor Q2 print on an 8.3% decline in ticket sales, as well as higher costs for items such as wages and fuel.

Southwest’s Q2 financial results arrived as rival carriers reported record earnings, and this sent analysts scrambling to downgrade LUV stock. Analysts at Bernstein became the latest to lower their outlook for Southwest Airlines’ stock, dropping their rating to “hold” from “buy” and taking their price target on the shares down to $32 from $41. The slew of downgrades comes as Southwest forecasts that its revenue is likely to fall a further 7% during the current third quarter of the year. This makes Southwest a growth stock to avoid in August.

On the date of publication, Joel Baglole held long positions in AAPL and LLY. 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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That is one of many reasons blockchain stocks make an attractive investment. They’re a bridge between the known and the unknown and offer diversification in general. In time, these firms can pivot into more substantial blockchain investments should things take off. Let’s look at a few stocks providing that type of investment.

Intel (INTC)

Intel’s (NASDAQ:INTC) stock has grown this year due to its association with AI and the potential therein. The company continues to contract based on top-line results while undertaking cost-cutting efforts that have had some positive effects in Q2. That’s generally what investors should know about Intel overall.

However, Intel is less often associated with another growth opportunity outside AI. That opportunity is blockchain. For now, the future of Intel’s blockchain remains in the air. The firm introduced Bitcoin (BTC-USD) mining chips last year to capitalize on trends. Then, less than a year later, in mid-April of 2023, the firm announced it was discontinuing its production.

The so-called Blockscale chips will continue to be sold through October while Intel continues to reassess opportunities in the space. Part of the problem was simply timing. Bitcoin prices fell by more than half between Intel announcing and shipping the chip. Bitcoin traded below $20k at that point. Intel has been very quiet about the decision, but given that prices are again near $30k, Intel could make another run at it. Therefore, Intel is a hybrid blockchain/AI chip stock that could entice investors.

MicroStrategy (MSTR)

MicroStrategy (NASDAQ:MSTR) sells analytics software tailored to various industries. The stock is differentiated from most other SaaS firms in that it holds a massive amount of Bitcoin in its treasury.

That ownership is so substantial that Bitcoin prices significantly influence the firm’s share prices. MicroStrategy holds nearly 153,000 Bitcoins at this point. That amounts to $277 of value for each of its shares which currently trade for $375. Again, as Bitcoin goes, so too goes MicroStrategy.

What’s particularly interesting is that MicroStrategy appears to be winning concerning its BTC holdings. They were purchased at an average price of $28,233, roughly $1,000 below Bitcoin prices. MicroStrategy’s business is relatively flat and contracted by 1% in the second quarter. Frankly, it doesn’t matter much at all. Its Bitcoin holdings much more influence MSTR shares than its business operations. Pundits predict that Bitcoin will continue to rise as distrust in fiat currency increases. Given the recent downgrade to U.S. creditworthiness, there’s reason to believe that could occur soon.

Block (SQ)

Block (NYSE:SQ) is primarily known as a fintech stock, but the firm’s operations also touch on blockchain significantly. The company is clearly invested in the development of blockchain technology because it rebranded to its current name after beginning as Square.

I won’t discuss its blockchain business in great depth here. Instead, I’d like to note that Block has just entered a period of opportunity. Share prices plummeted as expectations of less robust EBITDA growth in the second half caused a selloff. The reaction was overdone following concern around PayPal’s (NYSE:PYPL) earnings the day before. There’s a negative multiplier effect in play.

Block grew while its losses narrowed. Sales exceeded expectations. Block is a contrarian play at the moment. Fintech stocks will continue to attract investment simply due to the growth expectations for the next decade. Block is among the largest, and its Bitcoin holdings make it much more enjoyable.

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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“It’s the biggest investment in high-speed internet ever. Because for today’s economy to work for everyone, internet access is just as important as electricity, or water, or other basic services,” Biden said in a White House address in late June. 

Today, I want to get creative with some not-so-obvious stocks to benefit from Biden’s broadband plan. They won’t necessarily be internet providers or cable companies, but rather some infrastructure stocks that help the internet work properly ranging from data centers to fiber optic cable manufacturers.

As a result, the names I suggest here might be something other than household names. However, I can assure you of two things: they will benefit from Biden’s push and they will already be profitable businesses. 

VeriSign (VRSN)

Did you know Warren Buffett owns a big chunk of the domain registry provider VeriSign (NASDAQ:VRSN)? Because he does through Berkshire Hathaway (NYSE:BRK-A), which owns 12.4% of the internet registry business. However, because Berkshire has so much tied up in one stock — Apple (NASDAQ:AAPL) accounts for 45.2% of the holding company’s $364 billion equity portfolio — the $2.6 billion Verisign holding represents just 0.7%.

Why does Buffett like VeriSign? It made $364.4 million in the first six months of 2023 from $736.4 million in revenue. That’s nearly a 50% net margin, generating tremendous free cash from a slow-growth business. 

The company reported Q2 2023 earnings at the end of July. Thanks to growth at its domain-name registry business, the top line grew by 5.7% to $372 million, while it earned $1.79 in the second quarter, 25 cents higher than a year earlier. 

“Earlier this month we passed 26 years of 100 percent availability for the .com/.net domain name resolution system,” said Jim Bidzos, Executive Chairman and Chief Executive Officer. 

VeriSign noted that it had 174.4 million .com and .net domain name registrations at the end of June, 0.1% higher than a year earlier. To ensure that it continues to make money from this legacy business, it plans to increase the annual registry-level wholesale fee it charges for each new and renewal .net domain name registration by 99 cents to $10.91. That should go into effect on Feb. 1, 2024. 

Adding internet in all parts of rural America will have a knock-on effect on future revenue.

Viavi Solutions (VIAV)

I couldn’t remember why I knew the name Viavi Solutions (NASDAQ:VIAV), which provides testing solutions for fiber and other communications networks through their Network Enablement unit. And then it dawned on me that it was the old JDS Uniphase business. 

In Q3 2023, Viavi’s Network Enablement business accounted for $149.6 million of its $247.8 million in revenue. Its two other segments — Service Enablement (SE) and Optical Security and Performance Products (OSP) — accounted for the rest.

Unfortunately, due to lower R&D spending by potential customers in the first half of calendar 2023, revenues fell by 21.5% YOY, with a 12.9% decline from Q2 2023. That resulted in a 58.2% YOY decline in non-GAAP earnings to $28.3 million.

CEO Oleg Khaykin stated:

“On a positive side, we saw the beginning of stabilization of demand for our field instruments during the March quarter.  In the current quarter, we are seeing the signs of recovery in our Field Instruments and stabilization in the Lab & Production business. We expect the stabilization and recovery momentum to continue into the second half of calendar 2023.”

With VIAV stock down more than 26% over the past year, now would be a good time to look more closely at its shares. Four of the nine analysts covering its stock rate it a Buy, with five at Hold. 

Clearfield (CLFD)

Clearfield (NASDAQ:CLFD) supplies the guts required for telecom, cable, and broadband providers to get fiber into homes and businesses across America. As I recently stated in a July article recommending the stock, “It calls itself ‘The Fiber to Anywhere Company.’ It has 44 patents on its various products.” 

I also highlighted that less than half of American households have access to fiber internet. The Biden administration’s plans ought to help that, and Clearfield will undoubtedly benefit from the extra internet spending. 

On Aug. 3, Clearfield reported its Q3 2023 results stating that revenues fell 10.0% to $61.3 million. As customers continue to work through inventory over the next few quarters, there will likely be a few more quarters with declining revenue YOY. In addition, its community broadband customers are waiting to see about internet funding before placing large orders. 

In the Q3 press release, CEO Cheri Beranek stated,

“With government funding initiatives underway and significant rural broadband builds expected in the coming years, we anticipate strong demand for our core products once order patterns return to normalized levels.”

Once these two issues pass, it should be clear sailing for the company and its sales. 

On the bottom line, Clearfield earned $10.4 million, 13% higher than a year earlier. On a per-share basis, earnings rose at a slower rate of 1.5% due to more shares outstanding. 

The company’s balance sheet is very sound. It has no long-term debt, with nearly $172 million in cash, short-term, and long-term investments. Most of the money ($130 million) is from issuing stock last December for general corporate purposes, which I think was a timely offer. The 1.38 million shares sold were at $100, about 60% higher than today’s value. As a result, the company has plenty of cash to deploy for rural broadband projects over the next 12-24 months. 

On the date of publication, Will Ashworth 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.

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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Federal Reserve Bank of Philadelphia President Patrick Harker just paved the way for a market tantrum.

From Harker yesterday:

Absent any alarming new data between now and mid-September, I believe we may be at the point where we can be patient and hold rates steady and let the monetary policy actions we have taken do their work.

Now, I hope that’s true. But even if it is, why say it?

Harker just cemented the expectation of a September rate pause which, if disappointed, will now result in a Wall Street tantrum.

But Jeff, isn’t it practically a lock that the Fed will, in fact, hold rates steady?

Not if you ask Fed Governor Michelle Bowman. Here’s what she said on Saturday:

I also expect that additional rate increases will likely be needed to get inflation on a path down to the FOMC’s 2 percent target…

We should remain willing to raise the federal funds rate at a future meeting if the incoming data indicate that progress on inflation has stalled.

According to the CME Group’s FedWatch tool, the odds favor a rate pause in September, but the chance of another quarter-point hike comes in at nearly 15%. So, while a pause is likely, it’s not a lock.

If you’re unsure whether you’ll have time to take your 5-year-old to get ice cream as you’re running errands, is it wiser to dangle the ice cream as a possibility even though it might not happen, or wait until you’re certain you have time? Which is more likely to sidestep a potential meltdown?

Harker just floated a trip to Baskin-Robbins…and don’t think that Wall Street is more mature than a 5-year-old.

Here in the Digest, we’ve analyzed a hypothetical in which the number might come in hotter than expected (due to a bad comparable month last July and higher oil prices in recent weeks). But our hypergrowth expert Luke Lango believes the more likely result is a cooler-than-expected number.

From Luke’s Daily Notes in Innovation Investor:

We are also growing increasingly optimistic on this Thursday’s July consumer price index report. We think it will be a major upside catalyst for stocks. 

Current estimates peg July CPI at 3.3%. We think that’s high.

Our proprietary model is targeting a CPI reading of 2.9%, with a range of 2.6% to 3.2%. Therefore, we think the odds favor a bullish surprise for July inflation numbers. 

If we do get that bullish surprise, that will send overextended Treasury yields sharply lower, which should boost stocks significantly.

A cooler number would be fantastic – especially now, in the wake of Harker’s comment. We’ll keep you updated.

Regular Digest readers know that for months, we’ve been running a “commercial real estate watch” segment to monitor this critically important sector of the U.S. economy.

The same factors that resulted in a handful of banking failures this spring are creating cracks in the foundation of the $20-trillion commercial real estate sector.

Unfortunately, if commercial real estate suffers, so too will small banks. That’s because small banks account for 67% of commercial real estate lending.

Well, the ratings agency Moody’s just cut credit ratings of several small to mid-sized U.S. banks. It warned that the sector’s credit strength was running into headwinds related to funding risks and weaker profitability.

And what’s behind that?

You guessed it.

From Reuters:

“Many banks’ second-quarter results showed growing profitability pressures that will reduce their ability to generate internal capital,” Moody’s said in a note.

“This comes as a mild U.S. recession is on the horizon for early 2024 and asset quality looks set to decline, with particular risks in some banks’ commercial real estate (CRE) portfolios.”

Moody’s said elevated CRE exposures are a key risk due to high interest rates, declines in office demand as a result of remote work, and a reduction in the availability of CRE credit.

The worst of this pain is still ahead of us. That’s because $1.4 trillion in commercial real estate debt is coming due by the end of next year. It will have to be refinanced at today’s significantly higher interest rates.

Scour your portfolio for any commercial real estate exposure that’s especially vulnerable to refinancing and interest rate risk. More trouble is on the way for this sector.

In our Monday Digest, we discussed why long-term government bonds yields could be headed higher.

In short, government spending is so out of control, with deficits so enormous, that the government will likely be forced to issue more bonds than normal to generate the funds to pay all these obligations.

The problem is that when you flood a market with an excessive quantity of something, that pushes prices down. And because bond yields and prices move in inverse fashion, lower bond prices mean higher bond yields. That’s not good for the average stock portfolio.

Moving this away from hypotheticals, is there evidence that the government is bringing more bonds to the market?

Yes – this is part of the reason why Fitch just downgraded the government’s credit rating.

From Bloomberg:

The US Treasury boosted the size of its quarterly bond sales for the first time in 2 1/2 years to help finance a surge in budget deficits so alarming it prompted Fitch Ratings to cut the government’s AAA credit rating a day earlier.

Here’s legendary investor Louis Navellier from yesterday’s issue of Accelerated Profits issue with more details:

The other factor that spooked investors was the Treasury Department’s plans to auction $1.0 trillion in Treasury securities in the third quarter. That’s up from the previously anticipated $733 billion.

So, it appears that the Treasury Department may have gotten ahead of itself, but that will ultimately be determined by the bid-to-cover ratios at the actual Treasury auctions.

Yesterday, we learned the government bumped that number again from $1 trillion number to $1.03 trillion. So, we’re talking a surprise 36% increase in the size of the initial bond issuance plan.

The “bid-to-cover” ratio, which Louis referenced, will reveal to what extent demand from buyers will “cover” the increased volume of new bonds. It’s likely everything will be fine (if not, we have serious problems). But even if demand is plentiful, the need to issue this increased volume of bonds is a troubling sign.

We’re seeing what happens when the government promises too many entitlements and spends vastly more than it generates. Of course, Treasury Assistant Secretary for Financial Markets Josh Frost said, “We see limited or no impact on yields or prices.”

Uh huh. And Jerome Powell saw nothing but “transitory inflation.”

Yes, for the handful of Americans who can save a meaningful amount of money each month. Which means “no” for most Americans.

From Bankrate:

Forty-nine percent of Americans have less or no savings than a year ago. And only 43 percent said they could cover an emergency of $1,000 or more using funds from their savings account.

For a different angle on this, yesterday, the New York Fed provided a report showing that Americans are now turning to credit cards to fund basic day-to-day living expenses. This has resulted in credit card debt setting a new all-time-high.

From CNBC:

Americans increasingly turned to their credit cards to make ends meet heading into the summer, sending aggregate balances over $1 trillion for the first time ever, the New York Federal Reserve reported Tuesday.

Total credit card indebtedness increased by $45 billion in the April-through-June period, an increase of more than 4%. That took the total amount owed to $1.03 trillion, the highest gross value in Fed data going back to 2003.

The increase in the category was the most notable area as total household debt edged higher by about $16 billion to $17.06 trillion, also a fresh record.

Now, the pushback to this is “but Jeff, the New York Fed study also reveals that credit card debt as a percentage of total deposits remains near historic lows.”

Fair.

Maybe Americans have tons of other deposits elsewhere. And maybe all this credit card spending is based on consumers really loving their travel reward points.

How can we get more insight?

They’re not.

Back to CNBC:

As card use grew, so did the delinquency rate.

The Fed’s measure of credit card debt 30 or more days late climbed to 7.2% in the second quarter, up from 6.5% in Q1 and the highest rate since the first quarter of 2012 though close to the long-run normal, central bank officials said. Total debt delinquency edged higher to 3.18% from 3%.

Now, you might be latching onto the part of the quote above that references the delinquency rate being “close to the long-run normal.”

That’s fair. But if that’s the case, let’s look at the forces driving the delinquency rate and analyze the overall trend direction.

Back to CNBC:

…Household income adjusted for inflation and taxes is running some 9.1% below where it was in April 2020, putting additional pressure on consumers, according to SMB Nikko Securities.

“This is an issue because the sustainability of consumers’ pandemic debt-binge was partially predicated upon their incomes steadily rising,” Troy Ludtka, senior U.S. economist at SMBC Nikko, said in a client note.

“Instead, the opposite occurred, and now the rate at which borrowers are running late on their debt payments is back to pre-Covid levels. This could be the newest challenge facing embattled commercial banks.”

For months, we’ve been saying “watch out for when the U.S. consumer runs out of pandemic savings and when credit card debt grows too high.” We’re getting closer and closer to that reality.

By the way, don’t miss the reference to what this could mean for banks. In addition to challenges with commercial real estate, they’re now looking at weathering a beleaguered U.S. consumer.

Yes, keep trading stocks higher while bullishness is here. But be careful. We are not in an “all clear” market.

Have a good evening,

Jeff Remsburg

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Workhorse (NASDAQ:WKHS) stock closed down by more than 6% today after the electric vehicle (EV) company announced it will hold a stockholder vote for a proposed increase in the number of authorized Workhorse shares. The vote is set for Aug. 28 as part of the company’s upcoming Special Meeting.

What do you need to know about Workhorse lately?

Well, the commercial EV maker’s latest fundraising effort appears to be rooted in a recommendation from independent proxy advisor Institutional Shareholder Services. Workhorse stated:

“We have taken decisive steps to rebuild Workhorse over the last two years, and we are making important progress executing our strategy to stabilize, fix and ultimately grow Workhorse […] We encourage our stockholders to follow ISS’s recommendation and vote FOR the proposal to increase the number of authorized shares of Workhorse common stock.”

Workhorse has said that the upcoming share expansion comes as a method to fund its ever-expanding management team, “revitalized” facilities and advancing EV roadmap.

The proposal will require the majority of all its common stock shareholders in order to pass. As such, Workhorse is encouraging shareholders to vote as early as today, either online, via phone or by mailing in a proxy card.

If the measure is passed, Workhorse’s share count will nearly double to 450 million, from 250 million.

WKHS Stock Slides on Share Expansion, Disappointing Earnings

Despite Workhorse’s posturing, WKHS stock investors are a bit more cynical over the basis for the company’s latest fundraising maneuver. Indeed, the commercial EV maker is seemingly desperate for cash, a point made apparent at yesterday’s dismal earnings call.

The Ohio-based company revealed it has just $62.4 million in cash on its balance sheet. Furthermore, Workhorse reported a net loss of $23.02 million in the quarter ended June 30, wider than expected. This represented a loss per share of 12 cents. The company also announced just under $4 million in revenue, far below consensus estimates of $14.8 million.

As such, the company’s frenzied cash grab has clearly rung sour for many investors. Reasonably so, the share expansion would dilute current shareholders’ ownership in the company dramatically.

Regardless, investors may still opt into the proposal out of fear of an imminent funding crisis, not unlike Nikola (NASDAQ:NKLA) not so long ago.

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, 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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If you want to invest in all the stocks in this category, it’s pretty easy. All you need to do is buy the ProShares S&P 500 Dividend Aristocrats ETF (BATS:NOBL), which owns all 67 of these “aristocrats” in near-equal amounts.

However, if you want to target even more substantial long-term total returns, selecting some of the highest-potential dividend aristocrat stocks may also be worth looking into.

For instance, the seven dividend aristocrats listed below offer a solid mix of growth, value, and yield, making them strong candidates for your portfolio, whether your investing strategy is focused more on income or capital growth.

Automatic Data Processing (ADP)

If yield and growth are your investing objectives, Automatic Data Processing (NASDAQ:ADP) is one of the top dividend stocks to buy. As you likely know, ADP is a leading payroll provider and related services to businesses.

With this steady, recession-resistant underlying business, it is no surprise that ADP stock has historically produced strong total returns for investors. Although past performance does not indicate future returns, as I argued last spring, this stock has a solid chance to continue producing above-average total returns.

Taking another look at the numbers, I reiterate this view. Sell-side forecasts call for earnings growth of around 10% in the coming years. Assuming shares keep climbing in tandem with earnings growth, coupled with the stock’s 2.03% forward dividend (which has grown by an average of 13.7% annually for the past five years), double-digit returns are likely within reach.

Albemarle (ALB)

If capital growth is your focus, Albemarle (NYSE:ALB) is a dividend aristocrat to consider. Shares in this specialty chemicals company have one of the dividend aristocrats’ lowest forward yields (0.8%). Dividend growth over the past five years (averaging 3.95% annually) has also been modest.

However, due to the stock’s strong growth catalyst, this relatively low yield is more than made up for. Albemarle has high exposure to the current “lithium boom,” fueled by the auto industry’s big pivot towards producing electric vehicles (or EVs). Admittedly, a strong pullback in lithium prices has recently lowered ALB stock.

Yet based on the company’s latest quarterly results and guidance, it’s clear that demand and prices for lithium remain likely to keep rising. This points to more earnings growth, dividend growth, and higher prices ahead for ALB shares.

Cardinal Health (CAH)

Cardinal Health (NYSE:CAH) may be a more appealing choice for value-conscious investors. Shares in the healthcare distributor trade at a forward price-to-earnings (or P/E) ratio of around 16. This is slightly below the average P/E ratio (18.5) for the basket of dividend aristocrat names included in the NOBL portfolio.

While cheaper than average, CAH stock has a forward dividend yield (2.19%). That’s only slightly above the average yield among the aristocrats (1.89%). Dividend growth has also been lackluster in the past five years, averaging just 1.3% annually.

Still, with the prospect of double-digit earnings growth in the coming years (boosted by plans to repurchase up to $3.5 billion worth of shares), CAH (up by 51.5% over the past year) could keep rising due to increased earnings and perhaps, due a possible further expansion of its forward multiple.

Illinois Tool Works (ITW)

Illinois Tool Works (NYSE:ITW) is another of the dividend aristocrats with many years of dividend and earnings growth under its belt that is likely to continue delivering a similar level of performance.

The industrial conglomerate continues to increase its rate of payout steadily. Just last week, ITW raised its dividend by 7%. With this, ITW stock now has a forward annual dividend yield of 2.12%. While the current economic slowdown is expected to affect earnings this year, long-term earnings prospects for Illinois Tool Works remain promising.

Analyst forecasts call for 6% earnings growth in 2024 and more than 7% in 2025. This level of growth, plus ITW’s high-quality reputation, is likely sufficient for shares to maintain their forward multiple of around 25.3. Between shares rising in tandem with this earnings growth, plus the steady, growing dividend, ITW could continue producing solid total returns.

Lowe’s (LOW)

Not only does Lowe’s (NYSE:LOW) hold dividend aristocrat status. The home improvement retailer also holds dividend king status, with its more than 50-year track record of dividend growth.

That’s not the only thing that makes this stock appealing. LOW stock trades for around 16.7 times forward earnings. Lowes’ main rival, Home Depot (NYSE:HD), trades at a much higher valuation (21.8 times earnings). This big gap exists, despite Lowe’s having a higher level of expected earnings growth.

There may be doubts LOW can deliver such earnings growth, yet I believe it is attainable, primarily because of how aggressively the company is buying back shares. This will help to boost earnings per share. Delivering this level of growth may help bridge this valuation gap. Alongside returns stemming from LOW’s 1.97% dividend, this could mean strong returns ahead for investors buying the stock today.

NextEra Energy (NEE)

Rising interest rates have knocked utilities stocks lower, and NextEra Energy (NYSE:NEE) is no exception. However, suppose you’ve been looking to make this one of the dividend aristocrats in your portfolio. In that case, NEE’s selloff works to your advantage, and not only because interest rates aren’t set to stay high forever.

Due to NextEra’s higher exposure to the clean energy revolution than other utilities, NEE stock has long commanded a premium valuation. Yet with NEE’s pullback in price, you can buy it today for 22.2 times forward earnings. This may be a low valuation compared to the company’s growth potential.

As InvestorPlace’s John Blakenhorn recently argued, NextEra’s efforts in renewable energy and battery storage will likely continue to drive earnings growth. This points to further growth of NEE’s dividend (forward yield today of 2.7%) and solid price appreciation over a long time frame.

Realty Income (O)

Paying out dividends monthly since its founding 54 years ago, Realty Income (NYSE:O) has been one of the most consistent dividend stocks. Real estate investment trusts (or REITs), like utilities, have also been hammered by rising interest rates, but again, this may make now a great time to initiate a position in this stock.

Thus, buy O stock today and lock down a 5.18% dividend yield. While Realty Income has a long dividend track record, dividend growth hasn’t been exceptionally high (averaging around 3.73% annually) over the past five years.

Even so, don’t assume disappointing returns lie ahead for O shares. Besides a 5.18% (and gradually growing) yield, there’s also a strong chance this REIT will experience a big rebound in price once interest rates normalize. Considering this, snapping up O today could prove to be a profitable move in hindsight.

On the date of publication, Thomas Niel 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.

Thomas Niel, contributor for InvestorPlace.com, has been writing single-stock analysis for web-based publications since 2016.

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Although lithium carbonate prices have fallen from their peak in 2022, they have rebounded since May, driven by EV and lithium battery production. Electric vehicle sales have also exhibited impressive year-over-year growth, with global sales so far, up 40% from last year. That translates to sustained demand and opportunity for both lithium producers and public equity investors who want to profit from this trend. In this article, we will look at the three best lithium stocks, in my opinion, that have the potential to deliver strong returns for investors in 2023.

Albemarle (ALB)

This company has earned another spot on one of my lists. For readers unfamiliar, Albemarle (NYSE:ALB) is a specialty chemicals company operating three primary business segments: lithium, bromine and catalysts. Albemarle’s lithium business, which extracts and processes both lithium carbonate and lithium hydroxide, is what the specialty chemicals company is best known for. In 2022, the company primarily produced lithium at its brine operations in the Atacama salt flat in Chile and its hard rock mines in Australia. Albemarle made more than $7 billion last year due to elevated lithium prices, and two recent quarterly earnings beats could have the lithium producer achieving another record year.

As I wrote in a prior piece, Albemarle’s operations in Chile were scrutinized by market watchers when Chile’s government crafted plans to increase its involvement in the lithium mining sector. The reaction by the market was largely overblown and created a great opportunity for patient investors at the time. Similarly, last week, Albemarle released its Q2 earnings print and beat Wall Street’s estimates on an EPS basis, but revenue only came in line with estimates.

Since then, ALB shares have sold off slightly, mostly due to investors’ pessimistic sentiments about where lithium prices are headed. Still, Albemarle’s management decided to raise guidance and noted tailwinds in electric vehicle (EV) sales that should drive lithium prices upward. These factors, coupled with ALB trading at only 7.49x forward earnings, should keep investors interested.

Sigma Lithium (SGML)

Originally from Canada but headquartered in Sao Paulo, Brazil, Sigma Lithium (NASDAQ:SGML) wholly owns and operates the Grota do Cirilo project in Brazil, one of the largest hard-rock lithium deposits in the world. The project has an estimated resource of 54.8 million tons of spodumene ore at an average grade of 1.4% lithium oxide. Sigma Lithium’s project is located close to major ports and infrastructure in Brazil, giving it access to key markets in North America, Europe and Asia.

The company also has a long-term off-take agreement with Mitsui & Co., Ltd. (OTCPK:MITSY), a Japanese trading giant that previously provided Sigma Lithium with financing and logistics support. The company completed phase 1 of the project early this year and expected to generate cash flow from lithium production in Q2. Phase 1 annual free cash flow is expected to be approximately $455 million. Phases 2 and 3 await approval and, once completed, would jolt Sigma Lithium’s annual cash flows to $1.8 billion.

Sigma Lithium’s stock has soared 43% year-to-date (YTD), outperforming Albemarle’s shares as well as the S&P500 and the Russell 2000 by wide margins. Shares are currently trading at a valuation of 21.7x forward earnings, which is higher than established competitors like Albemarle but will make sense as Sigma’s lithium operations start production.

Pilbara Minerals (PILBF)

Pilbara Minerals (OTCPK:PILBF) is an Australian company that owns and operates the Pilgangoora project in Western Australia, one of the world’s largest hard-rock lithium-tantalum deposits. The company’s competitive advantage lies in its large-scale production at Pilgangoora, which produced 377,902 dry metric tons of spodumene concentrate in 2022 and is expected to double production in the coming years. Pilbara also sells tantalite concentrate, typically a byproduct of its lithium mining operations. Tantalite concentrate can be used to create tantalum capacitors which are needed in batteries and other electronic circuitry.

Though Pilbara Minerals’ business model is largely based on off-take contracts, the company also leverages an online auction system called Battery Material Exchange (BMX) to sell uncommitted spodumene directly to end-users. That allows the company to capture the market price for its products when there is no contract dictating pricing terms.

In Pilbara’s fiscal year 2022, which ended last June, the lithium producer generated $821 million in revenue and over 387 million in net income, representing a 47% net margin. With lithium production having ramped up, Pilbara Minerals is expected to have a record year, and market watchers have taken note. The company’s shares have surged more than 34% YTD, trouncing both competitors and the broader market. With a relatively cheap valuation at 7.7x forward earnings, investors should get on board.

On the date of publication, Tyrik Torres 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.

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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This article will look at seven momentum stocks that I expect to gain much more from their current prices over the medium-term. The market has been selling off in recent trading days. However, these companies listed below each have solid margins of safety, making them excellent ways to play a return to a risk-on environment in equities.

Let’s dive in!

Koninklijke Philips (PHG)

Koninklijke Philips (NYSE:PHG) is one of the most well-known companies worldwide. That’s particularly a result of the company’s electronics lineup, even though the company has shifted away from that segment in recent decades.

Unfortunately, Philips’ strategic refocusing on its healthcare segment hasn’t aided the company’s growth. Additionally, its financials have been doused in red ink for as long as I can remember. Indeed, the selloff in 2021 was the nail in the coffin for most investors, as the stock plunged almost 80% from its peak to trough.

However, there seems to be light at the end of the tunnel. PHG stock has been on a recovery rally since Nov. 2022, and analysts anticipate roughly 5% sales growth annually over the next five years. In addition, the company’s earnings per share are expected to climb by 21% this year and 23% next year. Thus, this might be a good time to get in before the stock appreciates more.

Over the long run, I believe there is substantial upside potential for this healthcare giant, as it leverages its strong brand recognition, diversified portfolio, and innovation capabilities.

MercadoLibre (MELI)

MercadoLibre (NASDAQ:MELI) is a Latin American fintech and e-commerce player that is up almost 65% year-to-date. Its performance has stood out from its peers in the sector due to consistently higher growth in its core markets. Indeed, the company’s focus on under-banked markets in Latin America has provided some breakneck growth which I think can continue for some time.

Notably, key investors and analysts anticipate MercadoLibre’s top- and bottom-lines to grow at a blistering rate this decade. If expectations are met, the company’s earning per share will expand 12x over the next decade, with revenue increasing more than five-fold.

Of course, while there is massive potential here, I would point out that there are some risks in the Latin American markets. These risks primarily stem from political and economic stability.

However, I think these risks are outweighed by the opportunities that MercadoLibre has to tap into a large and growing consumer base that is increasingly adopting online shopping and digital payments. MercadoLibre has a dominant position in its core markets of Brazil, Argentina, and Mexico, and is expanding into other regions such as Colombia, Chile, and Peru. Thus, I take these growth projections at face value, and expect substantial price appreciation from here.

Air Products and Chemicals (APD)

Air Products and Chemicals (NYSE:APD) is a leading industrial gas supplier that serves various industries such as chemicals, energy, healthcare, metals, and electronics. It also has its hands in up-and-coming sectors like hydrogen energy, which is expected to play a key role in the global energy transition. The company is investing heavily in hydrogen projects around the world, such as Saudi Arabia’s NEOM city South Korea’s hydrogen economy, and Europe’s green hydrogen network.

While APD stock might have not done the best in terms of year-to-date performance, it’s still a great momentum play. The company has delivered strong earnings growth for the past two quarters, beating analysts’ estimates each time. The company also pays a regular dividend that yields 2.4% to sweeten the deal for income-focused investors.

It might not be the flashiest pick, but APD stock is well-positioned to pay off in the long run. Analysts expect the company’s revenue growth to accelerate to 21.5% annually until 2026 before slowing down, while its earnings per share are projected to grow well above double-digits through 2028.

e.l.f. Beauty (ELF)

This stock has provided tremendous returns, so I don’t think it would be just to ignore it. Of course, I often stay away from stocks that have appreciated a lot, and I would not downplay the fact that there is downside risk here if the broader market turns bearish again. Still, over the past year, e.l.f. Beauty (NYSE:ELF) has surged 252%, and 560% from its trough last year.

This sort of appreciation in a non-speculative industry like beauty is something to praise. Elf’s financials have been especially stellar. While analysts do expect growth to slow down next year, they also expect it to re-accelerate sharply in fiscal 2026.

In my opinion, what makes Elf really stand out from its peers is its strong social media presence. The company has leveraged platforms like TikTok and YouTube to create viral marketing campaigns and engage with its customers. It has also partnered with celebrities and influencers to expand its reach and appeal. Moreover, Elf has been on the forefront of innovation when it comes to beauty products and services. Thus, I think the company has what it takes to cater to the changing preferences and needs of its target market. For instance, it has launched a skincare line, a subscription service, and a virtual try-on feature on its website.

Regardless, the momentum with ELF stock is unlikely to continue forever. I do not expect ELF to soar above $150 anytime soon, but it’s a momentum stock to buy on any face-ripping rallies.

Marriott International (MAR)

The recent post-pandemic travel boom has defied all expectations, and two big winners are hotels and casinos. Marriott International (NASDAQ:MAR) recently shot past $200 per share with strong momentum after its earnings surprise last week, riding this catalyst higher.

Obviously, the revival of MAR stock is not just due to the travel recovery. The company’s financials are strong, and analysts remain bullish in this regard. Consensus estimates call for earnings to grow at a double-digit rate annually over this decade. Thus, I see the stock’s current price-earnings ratio as justified.

Notably, Marriott is also pursuing strategic growth initiatives that will enhance its long-term prospects. For example, it is expanding its presence in high-growth markets like China, India, and Southeast Asia, while developing new concepts like home rentals, all-inclusive resorts, and wellness retreats.

Still, there are mixed feelings with this travel play. As with many momentum stocks in this environment, MAR stock provides somewhat meager upside potential if analysts are correct, and signifiant downside risk if the economy starts to slump. That said, I think if momentum picks up in the travel sector, this is the way to play it.

Intel (INTC)

This might not be Wall Street’s favorite stock recently, but I think it’s certainly heading that way in the long-run. Intel (NASDAQ:INTC) has been heavily investing in high-growth sectors like AI chips, cloud, and quantum computing and has dipped its toes in the dedicated graphics card market, doubling its market share in just one quarter. Of course, these products are far from perfect and aren’t the most cutting-edge. But this is definitely not the Intel Wall Street kept selling over the past two years. On a year-to-date basis, INTC stock is up 32%, as the company has even managed to turn the tide in its personal computing segment.

Intel’s new CEO Pat Gelsinger has been instrumental in reviving the company’s fortunes. He has announced a bold plan to invest $20 billion in building and creating a new business unit called Intel Foundry Services that will offer chip manufacturing services to other companies. He has also pledged to regain Intel’s leadership position in chip technology by 2025 and deliver chips with 2-nanometer process nodes by 2027.

I think these moves show that Intel is serious about addressing its challenges and seizing new opportunities in the semiconductor industry. Perhaps it won’t be able to meet these promises on time, but it is undeniable that Intel has changed for the better. For now, the company still has a lot of work to do to catch up with its rivals AMD (NASDAQ:AMD) and Nvidia (NASDAQ:NVDA). That said, Intel clearly has the resources, talent, and vision to do so. Thus, I think it is a great buy for long-term investors who are looking for momentum plays in the chips sector.

Nike (NKE)

Nike (NYSE:NKE) has been marred by controversy in recent years, but it would be unfair to exclude this well-established high-growth business in a list of momentum stocks to buy. Sure, its performance hasn’t been the best since 2021. However, NKE stock has bounced back from its 2022 trough and seems to be at an inflection point.

I certainly see NKE stock going higher from here since it is only up around 14% from its pre-pandemic price. It also trades at a forward price-earnings ratio below 30-times, with sales growth projections comfortably above ~7% annually through 2033. The company’s earnings per share growth is also expected to come in at the double-digit range over this time frame. I think that’s likely to continue for the foreseeable future.

Indeed, buying this well-established brand seems like a no-brainer move right now. But again, I’m not surprised by the negative sentiment surrounding this company, due to various controversies the company continues to battle.

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. TipRanks has consistently ranked him among the top 5% of experts as of August 2023. You can follow him on LinkedIn.

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Earlier this week, InvestorPlace’s Thomas Yeung posed an interesting question: Could Rite Aid (NYSE:RAD) become the next big meme stock? As meme stocks surged last week, The Wall Street Journal flagged the struggling pharmaceutical chain as a likely contender for the next r/WallStreetBets favorite. Yeung elaborated on the fact that, while RAD stock has performed dismally over the past year, that’s exactly what might appeal to contrarian investors seeking their next meme play.

Shares of RAD recently spiked when retail investor interest pushed the stock higher. But speculation is also rising that another new meme stock may be garnering favoritism among traders: T2 Biosystems (NASDAQ:TTOO).

TTOO Stock vs. RAD Stock: Which Is Worse?

Neither of these names are good investments. So, at first glance, it may seem difficult to assess which of these new meme stocks is the worse buy. Granted, the choice is between two unstable companies with minimal growth potential. While both TTOO and RAD stock surged last week on momentum from retail investors and boast impressive gains for the month, there’s no escaping the fact that both have shed almost all their value in the trailing one year. Over that period, TTOO stock is down more than 90% and RAD is down more than 70%.

As Yeung noted, declines of this magnitude could certainly help both companies catch the attention of retail investors seeking companies Wall Street won’t touch. Everyone remembers the iconic GameStop (NYSE:GME) short squeeze of 2021 and everyone wants to find the next one. And while both companies are certainly struggling enough to justify a massive short position, that doesn’t mean a short squeeze is imminent.

Pumping money into a struggling company because of social media hype isn’t usually a good idea. Just ask the retail investors who made ill-advised bets on MMTLP — the preferred shares of Meta Materials (NASDAQ:MMAT) — prior to the December 2022 trading halt.

So, neither RAD stock or TTOO stock are likely to rise long-term. However, it should be noted that the two aren’t quite the same. Rite Aid is a symbol of a bygone era. Meanwhile, at least T2 has the potential to mount a comeback. The company produces diagnostic products and has a decent backing from institutional investors. T2 also just regained compliance with one of Nasdaq’s listing requirements.

Why It Matters

To reiterate, this isn’t meant to imply that T2 is a good buy. But when compared to this week’s other top meme stock contender, it’s clear that TTOO stock is a better choice than RAD. Rite Aid may be trading at a higher price point than T2 right now, but as the meme stock hype dies down, RAD’s current losing streak will continue, likely erasing most of its recent growth.

As Yeung noted:

“Most importantly, investors face getting caught up in a meme frenzy that goes nowhere. Many speculators have bought shares of promising meme bets, only to see shares decline. Mullen Automotive (NASDAQ:MULN) has lost 99.9% of its market value since 2021, despite being among the most popular meme stocks.”

When unstable companies start trending on social media, investors would be wise to stay away. But it’s also important to remember that not all meme stocks are created equal.

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.

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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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The post TTOO vs. RAD Stock: Which New Meme Stock Is the Worst Buy? appeared first on InvestorPlace.

Naturally, it is still important to consider the risk-reward ratios for each prospective portfolio addition. I could simply list the top stocks with the best year-to-date gains this year, but it may not be a smart idea to jump into them. Many such stocks currently offer low upside potential with significant downside risk.

Some may say that’s being hung up on historical prices, but I think it is a smart idea to avoid such names, especially when the market is nearing an inflection point. I will only make exceptions here for well-established businesses that can grow their way out of any near-term declines.

With that said, let’s look into the three hottest stocks investors should consider buying in August.

Royal Caribbean Cruises (RCL)

If you are looking for a great post-pandemic play on the travel boom, you might want to consider Royal Caribbean Cruises (NYSE:RCL). While many speculate that the travel boom is starting to fade, the financials of companies in certain sectors say otherwise. Royal Caribbean Cruises, for example, has delivered tremendous growth, seeing its stock price surge 122% on a year-to-date basis. I think there’s plenty of room for this stock to climb higher from here.

The company reported a strong second quarter, beating analysts’ expectations on both earnings and revenue. The company posted earnings per share of $1.82, which was much higher than the consensus estimate of a loss of $1.54 per share. Revenue came in at $3.52 billion, which also beat expectations by $110 million. Additionally, Royal Caribbean saw a significant improvement in its bookings, with “post-cruise repeat booking rates nearly double 2019 levels.”

Therefore, I believe that Royal Caribbean Cruises is well-positioned to benefit from the pent-up demand for travel and leisure activities. This is certainly among the hottest stocks to buy, in my view. 

Teekay (TK)

Another stock that has been steadily creeping higher (surging 48% year-to-date) is Teekay (NYSE:TK). This company operates a fleet of crude oil tankers that transport oil across the world. The company has been benefiting from increased demand for oil transportation amid increased geopolitical tensions between Ukraine and Russia.

As you may know, Russia is one of the largest exporters of oil and gas to Europe. Thus, with this war has resulted in the country facing sanctions for almost two years, there’s been a material disruption in gas supplies, and a corresponding surge in gas prices in Europe. As a result, many European countries have been turning to alternative sources of energy, such as oil and liquefied natural gas (LNG).

This is where Teekay comes in. The company has been able to capitalize on the higher demand for oil transportation and a higher spot rates for tankers. The company reported a strong second quarter, with a net income of $40 million, up 663% year-over-year, while its revenue increased by 41% year-over-year to $395.4 million.

Now, some may consider TK stock as far too speculative, due to its precarious catalysts. However, I don’t think so. Sure, investors focusing on TK stock at these levels may be considered opportunistic. But regardless of the outcome in the Russia/Ukraine war, I think this transportation stock is one to buy for the long-term.

Overall, I think that TK is one of the hottest stocks to buy right now, especially as the company trades at a forward price-earnings ratio of just over 4-times, and the demand for oil remains strong.

Booking Holdings (BKNG)

Now that we’re back on shore, let’s talk about one of the hottest stocks in the travel sector – Booking Holdings (NASDAQ:BKNG). As I mentioned with Royal Caribbean Cruises, the travel boom still has some legs. This is evident in Booking Holdings’ recent earnings surprise.

The company reported a stellar second quarter, beating analysts’ expectations on both earnings and revenue. The company posted non-GAAP earnings of $37.60 per share, which was 30% higher than the consensus estimate of $29 per share. Revenue came in at $5.5 billion, which was 27% higher than the expected $4.3 billion. The company also saw a significant improvement in its gross bookings, which increased by 16% year-over-year to $39.7 billion.

What really makes Booking Holdings one of the hottest stocks to buy right now is its ability to leverage its scale, network effects, and data to create a superior customer experience and a competitive moat. Analysts believe the company’s earnings per share will grow at a 45.3% year-over-year clip this year, and hover around 18% annually for the next two years. Even then, the stock trades at a reasonable forward price-earnings ratio of 22.4-times.

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. TipRanks has consistently ranked him among the top 5% of experts as of August 2023. You can follow him on LinkedIn.

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As the month progresses, many investors will focus on these must buy machine learning stocks to tap into the industry’s growing potential. With so many options available, which ones truly stand out? Join us as we explore the best machine learning stocks to buy.

Palantir Technologies (PLTR)

Palantir Technologies (NYSE:PLTR) has undoubtedly etched its name as one of August’s must buy machine learning stocks. With a striking year-to-date (YTD) return of 138%, the data-driven behemoth demonstrates what it means to be among the top machine learning stocks for investors keen to ride the AI revolution.

Palantir primarily engages in data analytics. It uses its AI and machine learning models to provide insights that decision-makers can use to improve their decision making process. Initially, Palantir focused mainly on government contracts. Recently, though, it has broadened its commercial clientele and now showcases a varied portfolio.

Moreover, the latest Q2 earnings report, showcased a non-GAAP EPS of 5 cents and a revenue of approximately $533.3 million, aligned with Wall Street’s projections, offering investors a consistent feeling of confidence.

However, it wasn’t solely the earnings that captured the attention of investors. Amid the buzzing AI landscape, Palantir’s strategic decision to raise its full-year sales forecast further cemented its position among leading AI stocks. Bolstering this momentum, the announcement of a $1 billion share buyback program clearly underlines the company’s confidence in its growth trajectory.

Snowflake (SNOW)

As August takes center stage, investors keen on infusing their portfolios with cutting-edge technology may want to zoom in on Snowflake (NYSE:SNOW). With a commendable YTD return of around 13%, Snowflake has secured a spot among the top machine learning stocks this month. But what’s truly fascinating is its Q1 2024 financials. Snowflake reported a robust 48% jump in revenue, raking in $623.7 million. Though it registered a net loss, the rapid growth trajectory shows promise. The three-year revenue growth rate for the company stands at an impressive 80%.

The market’s confidence in Snowflake isn’t solely hinged on these figures. The recent buzz? Snowflake’s expanding alliance with industry behemoths. The stock got a fresh tailwind after announcing a partnership with Nvidia (NASDAQ:NVDA) for generative AI applications. Moreover, its deepening ties with Microsoft (NASDAQ:MSFT), emphasizing generative AI, is an apt testament to its vision. With Morgan Stanley (NYSE:MS) indicating that the cybersecurity industry will gain as much as $30 billion, tech synergy and alliances could potentially play a pivotal role for Snowflake. Furthermore, the upgrade from Scotiabank (NYSE:BNS), which celebrates the company’s revenue and product strength, adds another feather to its cap.

ServiceNow (NOW)

In the ever-evolving realm of machine learning stocks, ServiceNow (NYSE:NOW) is emerging as a standout, charting an impressive 42% YTD return. For the second quarter of 2023, ServiceNow announced a strong revenue figure of $2.15 billion. The number reflects 23% growth from the previous year. Remarkably, the net income surged to an impressive $1.04 billion, representing a fivefold increase. This leap translated to a diluted EPS of $5.08, exceeding expectations by nearly 16%.

Diving deeper into the recent headlines, there’s a palpable buzz around ServiceNow’s innovative strides. The collaboration with Nvidia and Accenture (NYSE:ACN) for the AI Lighthouse project notably bridges ServiceNow’s enterprise automation capabilities with Nvidia’s supercomputing prowess. The recent launch of Starcoder, in alliance with Hugging Face, underscores ServiceNow’s commitment to revolutionizing the digital workflow landscape. Furthermore, the unveiling of Now Platform’s major expansion in Utah promises firms enhanced agility on their digital journeys.

ServiceNow unquestionably leads the pack for those seeking machine learning stocks with consistent growth. The bold forays into AI and strategic partnerships signify their position as a must buy machine learning stock. So, while the AI world is vast and full of contenders, ServiceNow shines brightly, making the future look not just smart but also exceptionally efficient.

On the publication date, Faizan Farooque did not hold (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.

Faizan Farooque is a contributing author for InvestorPlace.com and numerous other financial sites. Faizan has several years of experience in analyzing the stock market and was a former data journalist at S&P Global Market Intelligence. His passion is to help the average investor make more informed decisions regarding their portfolio.

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In my opinion, sacrificing some near-term stability is very much worth the risk, particularly for those focused on time-tested businesses. Additionally, it’s my view that creating a portfolio of strong dividend-paying businesses can outperform the market significantly over the long-term.

With that said, let’s look at the three long-term stocks to invest in right now.

Apple (AAPL)

Apple (NASDAQ:AAPL) is a major holding in the portfolios of most large hedge funds on Wall Street. That’s because AAPL stock is historically among the most solid long-term equities to own, and arguably the best option in the FAANG group.

Apple’s consistent growth, high margins, and strong consumer loyalty highlight its indestructible moat and enduring product appeal. Apple’s closed-loop ecosystem offers seamlessly integrated, user-friendly products within the company’s complete control. Indeed, Apple’s consistency makes it a safe long-term stock.

In addition, the younger generation overwhelmingly prefers Apple products. This trend is projected to drive Apple’s growth, with revenue and earnings per share expected to double by 2031. Recently, AAPL stock dropped about 8.5% from its peak due to a cooling tech rally. I believe this dip presents an excellent opportunity to snap up this long-term gem.

Berkshire Hathaway (BRK.A, BRK.B)

Berkshire Hathaway (NYSE:BRK.A, NYSE:BRK.B) is another no-brainer option for long-term investors. Warren Buffett is widely considered to be one of the greeters investors of all time, meaning investors have an opportunity to ride the coattails of the Oracle of Omaha by owning his stock. His five largest holdings (as of the latest SEC filings) include aforementioned Apple, Bank of America (NYSE:BAC), Occidental Petroleum (NYSE:OXY), Coca-Cola (NYSE:KO), and Chevron (NYSE:CVX).

These holdings have consistently outperformed the market, especially during the most recent elongated bull market. As of writing, the Berkshire’s five-year gain stood at ~77%, significantly higher than the S&P 500’s 59%. Additionally, Berkshire Hathaway holds a substantial cash reserve of over $147 billion, which is great for those uncertain about the future. If things take a turn for the worse, Berkshire’s ability to invest in value stocks posits well for the long-term investors.

Flowers Foods (FLO)

Flowers Foods (NYSE:FLO) is a personal favorite of mine. It might look out of place amidst the previously-mentioned behemoths, but the stock is unlikely to disappoint in the long run. It is a consumer staples company that sells baked foods. It’s also the second-largest U.S. packaged bakery foods producer, also holding subsidiary brands in Europe within its portfolio.

As I write this article, FLO stock is currently seeing some volatility. Indeed, FLO stock has deviated from its long-term upward trajectory due to weaker-than-expected growth. However, I believe this temporary situation provides a great opportunity for patient investors to snap up one of the most consistent long-term stocks to invest in.

Currently, FLO stock offers a 3.7% forward dividend yield, boasting 21 consecutive years of dividend growth. It is currently changing hands below $25 per share, which is really compelling in my view.

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. TipRanks has consistently ranked him among the top 5% of experts as of August 2023. You can follow him on LinkedIn.

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These companies, operating at the intersection of biology and technology, promise groundbreaking treatments, therapies and solutions to some of the world’s most persistent medical challenges. As they push the boundaries of science, investors are keenly watching for opportunities that could translate into significant returns.

Here are three of the best biotech stocks to buy in August, mainly as good news pushes them to the front of investors’ radars.

CRISPR Therapeutics (CRSP)

CRISPR Therapeutics (NASDAQ:CRSP) reported a healthy earnings beat this week, topping analyst estimates by nearly 55%. Likewise, shared jumped 10% on the news. But an earnings beat isn’t the only bullish indicator for this biotech stock.

CRISPR remains the only pure-play gene editing biotech company on the market, making it the only game in town for investors with a long-term outlook. Earlier this year, the company announced the end of a series of FDA applications for sickle cell treatments. The submission marks a significant milestone for CRISPR as, in the words of the company’s chief medical officer, “within a decade, we have progressed from the discovery of the CRISPR platform to the first regulatory filings for a CRISPR-based therapy, which speaks to the transformative nature of CRISPR technology.”

While gene editing and CRISPR technology doubtlessly have a long road ahead, its first-mover advantage and institutional investor interest should prove beneficial as the company creates the future of healthcare today.

Amgen (AMGN)

Amgen (NASDAQ:AMGN) saw two cancer drugs break through clinical study barriers this week. Clinical studies are long and arduous processes with a massive attrition rate over time. Any news of therapeutics advancing to the next round is good, and two at a time is even better.

Supplementing Amgen’s recent win is a decent bench of revenue-producing products that help offset expensive research and development (R&D) costs. On August 3rd, the company saw another round of great news as it beat earnings estimates on the back of those product offerings. Revenue jumped 8% over the quarter, and much of that growth came from a 29% sales increase for the company’s flagship drug Amjevita.

The biotech company also enjoys global diversification, with 46% of net revenue coming from Asian-Pacific markets. Global exposure is critical for biotech companies to penetrate as many viable markets as possible, and Amgen’s proven its worldwide popularity.

Gilead Sciences (GILD)

Gilead Sciences (NASDAQ:GILD) appears highly undervalued in today’s market, and recent HIV drug wins might prove to be the tailwind propelling the biotech company back into fair valuation territory.

A recent quantitative analysis report indicates Gilead might be as much as 40% undervalued, with a $132 price target. At the same time, broad market consensus affirms the bullish outlook, albeit with a broad $100 price target.

Gilead remains one of the most agile of the large biotech companies, and the company’s profit margins for HIV and hepatitis C treatments are massive due to cheap manufacturing costs and dominance in physician protocols. The company also enjoys broad patent protection on its HIV therapeutic portfolio, asserting its position amid generic manufacturers and competitors.

Gilead may not have seen some of the breaking news wins as the other biotech companies in this article. Still, they remain a steady and consistent winner — albeit one substantially undervalued in August.

On the date of publication, Jeremy Flint held no 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.

Jeremy Flint, an MBA graduate and skilled finance writer, excels in content strategy for wealth managers and investment funds. Passionate about simplifying complex market concepts, he focuses on fixed-income investing, alternative investments, economic analysis, and the oil, gas, and utilities sectors. Jeremy’s work can also be found at www.jeremyflint.work.

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One of the more intriguing little-known stocks making a big move in today’s session is Loop Media (NYSEMKT:LPTV). Although they are now down 5%, shares of LPTV stock climbed more than 20% at one point today after the company announced what appears to be a compelling strategic partnership with Microsoft (NASDAQ:MSFT).

Loop Media is a digital video content company, providing free ad-supported TV platforms seen in many gas stations, airport terminals, bars, restaurants and more. The company provides its entertainment through its proprietary Loop Player, which streams a range of content including “sports highlights, lifestyle and travel videos, viral videos and more.”

The company’s new “strategic alignment” with Microsoft Advertising aims to “provide an additional distribution category to advertisers and DSPs from which they can access and purchase Loop Media advertising impressions.” In essence, it appears Microsoft is looking to amplify its advertising business, increasing Loop Media’s reach and visibility to advertisers in the process. Thus, this deal appears to be a win-win for both parties, at least at first glance.

Let’s dive into this announcement and what investors can make of the news.

LPTV Stock Surges on Microsoft Deal

Any time a company valued at around $100 million is able to ink a strategic partnership with a multi-trillion-dollar tech giant like Microsoft, it’s going to be a big deal for shareholders.

This strategic partnership appears to address the growth goals of both parties involved. While I’m not 100% sure why Microsoft went out and partnered with Loop Media rather than recreating this business model on its own, it’s a sign that Loop’s niche may be one the company dominates and is respected in. Thus, perhaps the validation of this strategic arrangement is worth more than any incremental revenue that may be ascribed to Loop as a result of the deal.

Microsoft’s vast customer and advertiser base could certainly provide a boost to Loop Media in the coming quarters. Accordingly, I’ve added LPTV stock to my list and will be watching for whether this deal translates into anything noteworthy.

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.

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On the date of publication, Chris MacDonald 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.

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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The phenomenon began in the early stages of the pandemic and continues to evolve. These days it is less about influencing heavily shorted stocks and much more about sharing investing thoughts through social media.

The result is that there is less speculative behavior overall in meme stocks. 

In fact, the meme stocks that are receiving the most attention currently are the same stocks that Wall Street is discussing and aren’t speculative for the most part. 

Apple (AAPL)

There are basically two ways of interpreting Apple’s (NASDAQ:AAPL) fiscal Q3 results. They’re either positive or negative just as are results for any stock. 

I believe Apple’s 1.4% sales decline is unlikely to hurt the company for very long at all. Yes, it’s the third straight quarter of declining revenue for the largest publicly-traded company in the world.

Yes, iPhone sales declined by 2.4% to $39.7 billion which was worse than anticipated. And yes, Apple is not succeeding in replacing declining product sales with service sales. 

In other words, I’m optimistic about Apple despite the clear issues. For one, Apple remains the most valuable firm in the world.

It got there because investors everywhere believe in the firm’s ability to create winning products time and again: Actually, blockbuster products that create cult followings. 

Apple will begin shipping its mixed-reality Vision Pro headset next year. It expects to ship around 1 million headsets in 2024 at a price of $3,499. That’s $3.5 billion added to the top line if projections pan out.

It actually won’t move the needle much. Apple will continue to move based on iPhone sales primarily. So, if you believe in the iPhone it will continue to make sense to invest in Apple. 

Raytheon (RTX) 

All signs currently suggest that Raytheon (NYSE:RTX) stock is worth buying. Let’s begin with the general sentiment across Wall Street.

The consensus is that TRX shares are worth $101 yet they trade below $90. This is after Raytheon shares fell following its Q2 earnings release. 

The earnings report was strong overall from a purely fundamental perspective. Sales increased by 12% net income grew and earnings and sales were ahead of Wall Street’s expectations.

However, the devil is in the details, and issues with Pratt & Whitney engines caused cash flow projections to drop by $500 million for the remainder of the year. 

So, basically, a contrarian opportunity has emerged. Raytheon has been negatively affected by an unexpected turn of events yet it continues to project confidence.

Raytheon revised overall sales guidance upward by $1 billion to between $73 and $74 billion in the release. One could argue that the net effect cancels out the surprise engine recalls. That suggests an opportunity currently. 

Tesla (TSLA)

Tesla (NASDAQ:TSLA) is either slightly overpriced currently or significantly undervalued depending on where you look.

Wall Street believes TSLA shares are slightly overpriced at the moment. However, independent research site Gurufocus has landed on a price of $450 for Tesla based on its proprietary pricing model. That’s roughly $200 above its current price. 

It’s worth examining the buckets of metrics that go into determining that a firm like Tesla is undervalued by so much.

There are 5 such buckets: Financials, profitability, growth, value, and momentum. Tesla ranks very highly across 3 of those buckets. The issues, as you may have guessed are profitability and value. 

Profitability is suffering because Tesla has lowered prices in order to increase sales volume. Value is negatively affected because investors are willing to pay so much for a dollar of Tesla’s earnings, sales, etc.

That should raise a question in the minds of potential investors as to why people pay so much for Tesla. The answer is obvious: Tesla is a once-in-a-generation firm that has propelled a revolution in the automotive industry.

It isn’t comparable to other EV firms and that’s why valuation metrics don’t apply in this case. 

BJ’s Wholesale (BJ)

BJ’s Wholesale (NYSE:BJ) is the other bulk warehouse grocery stock that often gets overshadowed by Costco (NASDAQ:COST). That means it gets less headline space and as a result less investment.

However, BJ’s has undertaken a digital strategy that promises to ignite new growth at the firm. That could result in an earnings surprise when results are released on Aug. 22. 

In other words, investing in BJ stock now could produce quick returns on its strategic digital implementation. BJ’s Wholesale has been investing in improving its digital capabilities recently in an effort to increase its customer base.

That has meant expansion of services like curbside pick-up and online shopping, same-day delivery, and more functionality on the online app.  

The results were beginning to emerge in Q1 as membership fees increased by 6.1%. Beyond that, BJ’s Wholesale simply continues to make sense in this economy.  Consumers continue to be strained even as signs of dissipating economic troubles emerge. That benefits BJ’s. 

AMD (AMD)

The story to follow regarding AMD (NASDAQ:AMD) stock is all about its pursuit of Nvidia (NASDAQ:NVDA) and its dominance in AI chips. 

I’ve probably written at least a half dozen times recently about AMD chips and their power relative to those from Nvidia. Even if you haven’t read one of those articles you likely know that AMD isn’t that far behind Nvidia in that regard.

Its chips are approximately 80% as capable as those of Nvidia. Further, AMD is especially technically capable in relation to software which is a critical area from which improvements emerge. 

Here’s something else to consider: AMD has a history of chasing down the big dog. It ended  

up catching Intel (NASDAQ:INTC) in data center CPUs. It’s now going after Nvidia and its data center GPUs. AMD expects to see data center revenues spike later this year, likely in the fourth quarter.

Buying AMD now and watching that pursuit play out is very likely to result in returns based on the market’s reaction to AMD in 2023 thus far. 

Fisker (FSR) 

Fisker (NYSE:FSR) released the first set of financial results following the inaugural deliveries of its Ocean One EV.

There was a lot of positive to be taken from the results which should send the stock higher. 

Q2 was the first quarter in which Fisker reported automotive sales revenue. Fisker tallied $825,000 in revenues overall during the period leading to a $62,000 gross margin and a net loss of $85.48 million. 

The road to EV adoption won’t be an easy one overall. Consumers continue to have legitimate concerns including range anxiety. That’s a particular bright spot for Fisker. The Fisker Ocean Extreme, starting at $69k, achieved a range of 360 miles.

That’s the highest for any new EV priced under $200,000 and sold in the U.S. today, which makes it one of the meme stocks to watch.  

Fisker vehicles are currently being sold in Europe and the U.S. with deliveries to begin in India and China late this year and early in 2024, respectively.

Altria (MO)

Investing in Altria (NYSE:MO) stock, as the company pivots away from cigarettes, is a no-brainer at this point.

The maker of Marlboro cigarettes is essentially paying investors a handsome premium to get on board with its transition to smokeless tobacco products and other lower-risk offerings. 

That payment comes in the form of a dividend yielding 8.55%. Sales edged downward slightly with earnings increasing due to Altria’s divestiture of JUUL. 

The argument favoring investing in Altria is fairly straightforward: Marlboro sales will continue to fund the business while it searches for new revenue streams in the evolving tobacco market.

It will pay investors a very high-yield dividend for their investment capital used to fuel that search. As an investor, you don’t have to necessarily even believe that Altria will succeed in that pursuit. It’s perfectly reasonable to invest for the dividend and play it by ear.

If signs emerge that Altria might not succeed on that front, bail. You’ll have collected a bunch of dividend revenue in the process and share prices are unlikely to suffer much even if that happens, making this one of the meme stocks to watch.

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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Palantir Technologies isn’t a member of the “Magnificent Seven” technology stocks. Maybe there should be another list called the “Great Eight.” I would include Palantir in that list, and anyone who hasn’t invested in the company yet should consider buying a few shares today.

PLTR Stock Is Like a Soccer Champion

Earlier this year, Palantir Technologies’ management claimed that the company is “a worldwide leader in Artificial Intelligence.” But it’s one thing for management to brag about a company; it’s quite different when a Wall Street analyst has glowing praise for that company.

Thus, it’s notable that Wedbush analyst Dan Ives called Palantir Technologies the “Messi of AI.” Ives was referring to Lionel Messi, a world-famous soccer player.

Furthermore, Ives initiated his coverage of PLTR stock with an “outperform” rating and a price target of $25. This implies significant upside from the current share price.

Palantir Technologies has, according to Ives, “built an AI fortress that is unmatched and poised to be a major player in this AI Revolution over the next decade.” Moreover, this “fortress” will enable Palantir to develop and deploy an “unlimited number of AI applications” that “redefine business processes across verticals.”

It’s not every day that Ives has this much praise for a company. The analyst claims that Palantir Technologies has a “generational opportunity to gain a significant share” of the total addressable market (TAM) in AI, which Ives expects to reach $800 billion.

Palantir Technologies’ Growing List of Beneficial Deals

Don’t get the wrong idea here. Ives’ bullish argument is powerful, but I want you to conduct your own due diligence before buying PLTR stock.

As you learn more about Palantir Technologies, you’ll undoubtedly be impressed with the mutually beneficial agreements that Palantir has formed. The company works with private businesses as well as government entities.

In the public sector, the Defense Information Systems Agency (DISA) selected Palantir Technologies to provide automation capabilities. This will help to “enhance coordination” and automate workflows between the Department of Defense (DoD) and “commercial spectrum licensees.”

Moving on to the private sector, Palantir Technologies is reportedly teaming up with J.D. Power, a fellow data analytics company. The two companies will collaborate to develop generative AI and “predictive analytics solutions.” These solutions will, according to the press release, “facilitate deeper insights and more strategic decision making by the automotive industry.”

In addition to all of that, Palantir Technologies recently renewed its partnership in Australia with construction equipment dealer WesTrac. This is significant because WesTrac is among the world’s largest equipment dealers for Caterpillar (NYSE:CAT).

PLTR Stock: A Superstar in the Making

Palantir Technologies isn’t part of the “Magnificent Seven,” but so what? Today, we can acknowledge that Palantir is indeed the “Messi of AI” and a member of what might be called the “Great Eight.”

So, don’t let the opportunity pass you by as Palantir Technologies continues to grow its client base. If you’re ready, you can choose to buy PLTR stock today or add to your position if you’re already invested.

On the date of publication, David Moadel 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.

David Moadel has provided compelling content – and crossed the occasional line – on behalf of Motley Fool, Crush the Street, Market Realist, TalkMarkets, TipRanks, Benzinga, and (of course) InvestorPlace.com. He also serves as the chief analyst and market researcher for Portfolio Wealth Global and hosts the popular financial YouTube channel Looking at the Markets.

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Why the massive turn of events? Well, Blue Apron’s management team announced during its earnings call that it cut 20% of its corporate workforce in July alone. This move coincided with the previously announced FreshRealm transaction.

The company has hoped to move toward a more asset-light model. Previously, the announcement of major job cuts boosted the stock price, so perhaps the thinking was to share more details on how these layoffs have been proceeding. However, the announcement of $1.7 million in charge-offs tied to these layoffs (including severance and other expenses) may have some investors shaking their head. The company anticipates it will save $7 million from these layoffs, but it’s unclear if these cuts are being made too deep.

Let’s dive into what investors may want to make of these earnings, and these layoffs.

APRN Stock Sinks on Latest Round of Job Cuts

In a period of belt-tightening, it’s hard to say how much is too much until things start to hurt. It appears many investors are viewing Blue Apron’s aggressive cost-cutting moves as perhaps too much too fast, given the strength of the labor market and intensity of competition.

Indeed, Blue Apron’s business is slowing, with revenue down 6.1% sequentially and 14.5% year-over-year, despite the average order value increasing significantly. This implies a significant drop off in paying customers, something a subscription business will not want to see. Thus, some cuts are likely warranted.

However, in order for Blue Apron to return to its previous growth-focused ways, investing in growth may be necessary. Granted, it’s hard to do that when the company is losing nearly $50 million a quarter. However, this meal kit company will need to decide if it wants to grow its way out of this hole, or shrink its way to profitability in the near term. Investors appear to be questioning which strategy makes more sense right now.

Personally, my outlook for Blue Apron’s overall business isn’t as bright as many analysts. This is a sector that clearly boomed as a result of the pandemic and saw its overall addressable market skyrocket. However, with Blue Apron’s market size stabilizing, it will be a question of how well the company can hold market share and maintain margins moving forward. Personally, I’m not sure these cuts have been too deep. But the market appears to be providing its opinion on the topic today.

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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Much of this has to do with the company’s existing fundamentals and its previous production struggles. The company’s Q2 report, released earlier this week, pointed to strong growth and led to a stock price surge following the report. However, shares have given up some of those gains as investors price in the likelihood of profitable growth moving forward.

Some reports have indicated that Lucid is losing roughly $500,000 per vehicle it sells. For a car company that’s selling its EVs for more than $100,000 a pop, that’s not a great profit margin. It’s dismal.

Thus, short sellers have stepped up to the plate and picked up their short bets following this most recent surge. At the time of wiring, LCID stock has more than 20% of its float sold short, according to the limited data provided by Fintel. This has led to some calling for a potential short squeeze with Lucid.

Is LCID Stock Poised for a Short Squeeze?

There have been many high-profile short squeezes over the past two years, perhaps more than we’ve seen in many decades. Retail investors have caught the scent of beaten-down stocks with brands many retail investors can get behind and have coordinated buying activity to squeeze big-money short sellers out of positions in the past. For Lucid, a company with a $16 billion market capitalization, such a squeeze is possible. But it would take a massive coordinated effort and media campaign to get enough buyers on board to make this happen.

Lucid’s recent capital infusion, and the potential for further dilutive equity offerings, complicates matters. If retail investors swallow up the existing float and the company keeps issuing new shares, it’s difficult to create a squeeze-like environment. Thus, we’ll have to see if Lucid can get closer to breakeven on its production numbers in the third and fourth quarters. Right now, betting on a short squeeze materializing looks unlikely.

That said, anything is possible, and it is feasible that some sort of string of positive headlines released by the company could spur a wave of buying activity, forcing shorts to close their positions and resulting in a price surge higher. I guess that’s what makes markets. Indeed, this will be a fun stock to watch from here.

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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The post Get Ready for a Short Squeeze in Lucid Motors (LCID) Stock appeared first on InvestorPlace.

Nio (NYSE:NIO) stock is in the red after U.S. District Judge Nicholas Garaufis stated that shareholders can move forward as a class in a lawsuit against the Chinese electric vehicle (EV) company. Shareholders who purchased NIO stock during its Sept. 2018 initial public offering (IPO) and between Oct. 8, 2018 and March 5, 2019 are eligible to participate in the class action.

The lawsuit claims that shareholders were harmed by a decline in share price after Nio disclosed in March 2019 that it would cancel plans to build a new factory. Shares fell by 30% to about $7 from roughly $10 following the announcement. During its IPO, Nio claimed that the factory was “under construction.” Shareholders believed that Nio’s construction of its own factory would “alleviate its reliance on a Chinese state-owned manufacturer.”

NIO Stock: Judge Allows Class Action to Move Forward

According to the lawsuit, construction of the factory was never started. This conclusion was made based on communications with former employees and a lack of construction permits. The lawsuit also places blame on underwriters such as Goldman Sachs (NYSE:GS) and Morgan Stanley (NYSE:MS) for failing to appropriately review Nio’s factory plans. Nio itself has denied the allegations, while its attorneys did not immediately comment on the situation.

According to Reuters, obtaining Garaufis’ class action approval was a major step in the litigation process. In addition, securities class action lawsuits rarely make it to trial. The lawsuits that are not dismissed often result in settlements, although Nio “may also ask the judge to rule in its favor without a trial.”

In better news, NIO stock recently received a new price target of $19.20, up from $13.90, from Citi analyst Jeff Chung. Chung believes that Nio’s momentum will last until at least September based on a strong order pipeline, the release of the EC6 and strong seasonality toward the end of the year. The analyst added that a potential positive catalyst could occur if German automakers show cooperation interest with Nio’s battery swap and charging facility stations.

In July, Nio delivered 20,462 vehicles, up 103.6% year-over-year (YOY). The ES6 was the company’s most popular vehicle with over 10,000 deliveries.

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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There have been growth stocks that delivered multibagger returns in the first half of 2023. As an example, Riot Platforms (NASDAQ:RIOT) has quadrupled from undervalued levels year-to-date.

Given the point that overall market conditions remain somewhat challenging, I would be conservative. I believe that the undervalued growth stocks discussed can double or triple in the next 24 months. Clearly, these stocks can be portfolio catalysts.

Let’s discuss the reasons to be bullish on these interesting growth stories.

Cronos Group (CRON)

Recently, Tilray Brands (NASDAQ:TLRY) acquired eight alcohol and beverage brands from Anheuser-Busch InBev (NYSE:BUD), and the stock surged by 36%. That is relevant here as Cronos Group (NASDAQ:CRON) is another name with robust financial flexibility.

As of Q2 2023, Cronos reported cash and equivalents of $841 million. That provides the company with scope for aggressive organic and acquisition-driven growth. It’s also worth noting that the company expects net change in cash to be positive in fiscal year 2024.

Therefore, cost-cutting and streamlining of the supply chain will deliver positive results. I must add here that Cronos currently commands a market valuation of $672 million, which is less than the company’s cash buffer. That puts into perspective the extent of undervaluation.

I also like the point that Cronos has a presence in the recreational as well as medicinal cannabis business. In the wellness segment, Cronos is active in Canada and Israel. With focus on evidence-backed medicinal cannabis, I believe that there is ample scope for expansion in Europe.

Albemarle (ALB)

Albemarle (NYSE:ALB) looks massively undervalued at a forward price-earnings ratio of 7.62. I believe that the 0.82% dividend yield stock is poised for multibagger returns in the next few years.

In terms of business developments, Albemarle has amended its agreement with Mineral Resources (OTCMKTS:MALRF). The company is expected to have full ownership of the Kemerton lithium processing facility. Further, the company will now have 50% ownership in the Wodgina mine in Australia and a 100% stake in the Qinzhou and Meishan facilities in China.

Albemarle has also entered into an agreement with Ford (NYSE:F) to supply more than 100,000 metric tons of lithium hydroxide from 2026 to 2030. Overall, the company expects lithium sales volume to increase at a CAGR of 20% to 30% through 2027. This will translate into sustained revenue growth and cash flow upside.

For Q2 2023, Albemarle reported stellar revenue and EBITDA growth of 60% and 69% on a year-on-year basis. With operating cash flow guidance for 2023 in the range of $1.2 to $1.8 billion, the company is well-positioned to make aggressive investments.

Kinross Gold (KGC)

Kinross Gold (NYSE:KGC) stock has trended higher by 45% in the last 12 months. However, the stock remains massively undervalued at a forward price-earnings ratio of 15. Additionally, KGC stock offers a healthy dividend yield of 2.36%.

It’s worth noting that Kinross commands a valuation of $6.18 billion. As of Q2 2023, the company reported a liquidity buffer of $1.9 billion. Furthermore, the company is on track to deliver annualized operating cash flow of $1.8 billion. I would add that the company reported mineral reserves of 2.1 million ounces as of December 2022. As compared to the company’s assets and cash flow potential, there is a clear valuation gap.

In June 2023, Bloomberg reported that Kinross rejected a takeover approach from Endeavour Mining (OTCMKTS:EDVMF). A potentially attractive offer might be in the cards, and that’s a catalyst for a KGC stock rally. Even without any potential acquisition, the stock is attractive for multibagger returns.

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 banking sector saw some scary days in the first half of 2023. However, fintech companies such as SoFi emerged resilient, and have gained favor among growth investors.

Some of that has to do with the company’s focus on student loan refinancing, and some of that has to do with SoFi’s newfound prospects as a full financial hub.

As more student loan borrowers look to refinance their debts at more favorable rates, SoFi stock should take off.

Of course, some big bank analysts continue to express caution around this name. That said, I think SoFi’s mission to revolutionize traditional banking may not be so far-fetched after all.

Here’s why I think now is the time to buy SOFI stock, before the growth starts rolling in via the resumption of student loan payments.

SoFi is Diversified

As mentioned, student loan refinancing applications are going to drive the vast majority of SoFi’s business, and it should. The company is among the leaders in this space, providing aggressive loans at some of the most favorable rates.

However, SoFi has also beefed up its status as a resilient, defensive fintech offering. The company has diversified its lending portfolio beyond student lending, thriving with a popular digital platform and bank acquisition.

Amid pandemic-induced student loan setbacks, other sectors, like personal loans, experienced notable year-over-year growth.

The company’s adjusted Q1 revenue surged by 43% year-over-year to $472 million, backed by a 37% deposit boost in financial services.

The diversified model offers protection against market fluctuations, particularly crucial in the finance sector where economic shifts affect services variably.

Future Expansion Plans 

Starting as a student loan-centric entity, SoFi became a multifaceted financial services app, attracting users through its user-friendly platform and expanding customer base.

Despite the student loan moratorium challenge, its diversification softened the blow, reflected in a robust 43% Q1 revenue rise. SoFi’s persistent innovation and broader financial services appeal to contribute to its ongoing customer traction.

SoFi is enhancing financials, emphasizing loss reduction. Indeed, SoFi saw a notable improvement in Q1, trimming its net loss from $110 million to $34 million year-over-year.

Positive Adjusted EBITDA growth continued, rising from $9 million to $76 million. Additionally, SoFi’s CFO envisions net income positivity by Q4 2023, hinting at potential future profitability.

SoFi Is Beneficial During Soothing Inflation

Investors aligning with Adelson may favor stable big-bank stocks due to lower volatility, unlike the fast-moving SOFI stock, which is unsuitable for all portfolios.

SoFi enjoys an external boost with inflation easing, evident in reduced Consumer Price Index and core PCE growth rates.

Soothing inflation is positive for SoFi Technologies and stakeholders, boosting SOFI stock by 5% on July 28 after PCE growth news. Reduced inflation empowers consumers for mortgage loans, travel, and investments—areas where SoFi plays a significant role.

What Now?

SoFi’s revenue diversification enhances its appeal as a long-term investment, setting it apart from other student lender stocks. The end of the student loan moratorium could add to its gains.

SoFi has skillfully broadened its offerings beyond student loans. This includes entering personal lending and acquiring Golden Pacific Bancorp to become a bank, bolstering net interest income.

Its technology strength positions it favorably in the expanding banking-as-a-service domain.

While predicting inflation’s future is uncertain, SoFi Technologies’ potential shines if inflation remains controlled. Unlike traditional banks, assess SoFi based on its distinct strengths.

SOFI stock merits a “B+” grade, suited for specific investors aligned with its innovative vision. Potential strong returns in 2023’s second half await those embracing SoFi’s unique disruption.

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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On Tuesday afternoon, Rocket Lab reported a net loss of $45.9 million, or 10 cents per share, a CNBC article noted. According to analysts surveyed by Refinitiv, the consensus estimate called for a loss of 9 cents per share. Further, the red ink was wider than the loss of 8 cents in the same quarter one year ago.

However, on the top line, the space economy specialist posted revenue of $62 million. This tally represented a 12% year-over-year growth rate. As well, it beat the consensus view target $61.8 million.

In addition, Rocket Lab added contracts for 10 more launches in 2023 and 2024, CNBC stated. In addition, the launch services provider in its press release disclosed that it acquired assets and production space from the Virgin Orbit bankruptcy auction, which should help boost its Neutron launch vehicle development.

Analysts Are Enthused About the Potential for RKLB Stock

Although RKLB stock wobbled in the midweek session due in part to wider market drama, it’s been on a tear recently. In the trailing one-month period, shares gained over 9%. And in the past half-year period, they’re up over 43%.

In addition, Rocket Lab founder and CEO Peter Beck voiced strong confidence in the business, pointing to “three successful Electron [rocket] launches, more than 17 spacecraft featuring Rocket Lab satellite components deployed to orbit, and multiple new launch contracts signed with new and returning customers.”

Even better, analysts agree with the overall assessment, presenting a largely united bullish outlook.

• Morgan Stanley’s Kristine Liwag indicated that RKLB stock “still has room to run” despite its already robust performance. Specifically, she sees the enterprise benefiting from newer verticals like spacecraft and hypersonic products. Kiwag pegs RKLB as “overweight” with a $10 price target.
• Deutsche analyst Edison Yu appreciated Rocket Lab’s “strong headline results.” Although recognizing that the company’s space systems revenue came in a bit lower than expected, Yu emphasized “an increasingly stable high-margin business that faces limited competition.” The analyst rates RKLB stock a “buy” with a $10 price target.
• Bank of America’s Ron Epstein was impressed with “[y]et another strong quarter of results.” Further, the expert sees shares more than doubling, highlight the company’s “stronger than expected” gross margin rate in Q2. He has the highest price target among analysts at $14.

Not everyone was so enthusiastic, however. Citi’s Jason Gursky remarked that Rocket Lab’s Q3 sales guidance was about 20% below its estimate. Moving forward, the analyst will carefully watch the company’s execution.

Why It Matters

Overall, data from TipRanks shows that within the past three months, analysts view RKLB stock as a consensus moderate buy. This assessment breaks down as five buys, two holds and zero sells. On average, the experts’ price target lands at $9.81, implying about 50% upside potential.

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.

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Nervousness appears to be apparent ahead of key inflation data set to be released this week. The Consumer Price Index (CPI) report is due on Thursday and is expected to show prices coming down on a year-over-year basis. Of course, base effects from last year make such a prediction a likely outcome. However, until investors see the kind of deceleration the Federal Reserve and other economists have been calling for, many won’t rest easy.

Additionally, this week’s downgrade of a number of small to medium-sized U.S. banks has investors concerned about fears spreading in the already-brittle banking sector. And finally, bond prices have moved higher (and yields lower) as second-quarter results continue to pour in and largely disappoint. Investors appear to be taking off risk-on bets on the markets continuing to surge through year-end.

As I said, there’s a lot for investors to digest today! Let’s dive into these key headlines and see if we can make heads or tails of what’s going on.

Why Are Stocks Down Today?

In normal times, continued cooling of CPI data and lower bond yields should, in theory, translate into higher equity prices. However, we’re clearly not seeing such sentiment flow through into the stock market today.

That’s partly because it appears many investors believe the Fed when it says it will keep rates higher for longer. Such a move will put a continued strain on the banking sector, hence worries around analyst downgrades for the sector. And if rates stay too high for too long, the risk of a recession increases, which, paradoxically, increases the case for rate cuts sooner than later (hence the move in the U.S. 10-year Treasury today.

So, what’s clear to me about the various headlines investors have to consider today is that, well… nothing is really clear. Anxiety around interest rates remains high, and investors appear to be increasingly concerned about the banking sector to a degree that I haven’t seen since the Great Recession.

We’ll see how everything plays out over the medium term. This sentiment shift could be temporary, and we could see the next leg higher soon. Or, investors are correct in taking off some risky positions, hedging against what could be a rough end to the year. We’ll see.

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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That said, there are clear reasons for investors to remain cautious about the outlook for stocks moving forward. Credit card debt recently hit a record high, meaning these higher interest rates could significantly hinder consumers’ purchasing power. Geopolitical and banking concerns aren’t completely gone.

With that in mind, let’s dive into three stocks investors should avoid if a bear market does rear its ugly head. I hope it doesn’t. However, the market is cyclical, and we’re likely to get a prolonged downturn at some point. Thus, for those looking to play it safe, here are some stocks to put on watch right now.

Tesla (TSLA)

Following Tesla’s (NASDAQ:TSLA) Q2 earnings report on July 19, concerns about declining gross margins overshadowed positive earnings and revenue figures, leading to a stock pullback. Additionally, California’s attorney general is probing Tesla for Autopilot safety and false advertising issues, requesting input from customers and ex-employees.

Although the company reported record revenue, operating margins dropped to 9.6%, the lowest in years. Tesla remains a highly-volatile stock despite its massive market capitalization. Further, numerous analysts downgraded and lowered price targets, echoing dwindling confidence. Notably, Quiver Quantitative, a company monitoring Congressional stock trading, disclosed recent TSLA share sales by U.S. representatives.

Other EV stocks offer better growth at lower prices. Thus, with Tesla likely to struggle in Q3 (and potentially see production declines), I think investors may want to consider other EV players for exposure to this sector.

Nvidia (NVDA)

As many companies embrace generative artificial intelligence software, Nvidia’s (NASDAQ:NVDA) graphics processing unit chips cater to AI’s computing demands, making NVDA a strategic pick for the machine learning trend. NVDA stands as the primary U.S. AI chip maker, holding a substantial share of the market and is projected to generate significant AI-specific revenue.

Given the excessive optimism and high expectations from Wall Street experts, it might be wise to lessen your NVDA stock exposure now. Nvidia’s crucial role in the AI hardware supply is acknowledged, and despite my own optimism, the growing consensus of bullish sentiments triggers contrarian concerns. As the saying goes, even trees don’t grow to the sky. The rapid rise we’ve seen in NVDA stock could make way for a rapid move lower in a bear market scenario.

Now, most Wall Street experts highly recommend buying Nvidia stock, projecting increasingly elevated price targets, and its valuation is notably inflated. While I appreciate Nvidia’s merits, contrarians and value-oriented investors should exercise caution. It’s advisable to contemplate profit-taking rather than increasing your NVDA stock position, guarding against potential adverse shifts in share prices.

Apple (AAPL)

One of the stocks I remain the most bullish on from a long-term perspective is Apple (NASDAQ:AAPL). Indeed, in the consumer discretionary sector, there really aren’t any comparable companies investors can point to with the same kind of brand loyalty and competitive moats as Apple. Many investors maintain a positive outlook for the stock, given the company’s ability to grow cash flows and earnings consistently over the long haul.

That said, as a purveyor of high-end consumer discretionary goods, Apple is an obvious choice for this list of stocks to avoid if a bear market materializes. That’s because the ability for consumers to pay $1,500 or $2,000 for a slightly-upgraded phone may be limited if times get tough.

Of course, Apple’s growing services ecosystem remains strong. And while analysts like Dan Ives dismisses the notion of a “broken growth story,” it’s entirely plausible that Apple’s growth at least takes a rest at some point. 

For those looking to play it safe, AAPL stock’s 31 P/E ratio may warrant caution.

On the date of publication, Chris MacDonald has a LONG position in AAPL. 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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Of course, investors need to be very selective as the risk is high. It’s also unnecessary that all suitable business models survive.

Factors such as intense competition or extended industry headwinds can play spoilsport. However, if the stock selection is right, there is scope for massive value creation.

My focus is on three long-term growth stocks to buy with the business likely to be supported by positive industry tailwinds.

Through 2030, these stocks can deliver a minimum of 10x returns. I must add here that I had discussed three growth stocks to buy and hold through 2030 in May. I would add these growth stocks to that list of multibagger stocks.

Let’s discuss the company specific reasons to be bullish.

Lithium Americas (LAC)

Considering the expected lithium supply gap in the coming years, the metal is an attractive investment theme. Lithium Americas (NYSE:LAC) stock is attractive among long-term growth stocks to buy for multi-bagger returns.

High quality assets providing long-term cash flow visibility is the key reason to like Lithium Americas. To put things into perspective, the company’s Thacker Pass project is likely to be a cash flow machine.

The asset has an after-tax net present value of $5.7 billion and is likely to deliver an average annual EBITDA of $1.1 billion.

Further, the company has 44.8% stake in the Cauchari-Olaroz asset in Argentina. Phase one of the project has delivered first lithium in June 2023.

Capacity at this stage should be 40,000tpa of battery-quality lithium carbonate. Stage two should to add another 20,000tpa of lithium carbonate.

The company has received shareholder approval for split of U.S. and Argentia assets into two entities. This is likely to unlock value.

Pinterest (PINS)

Pinterest (NYSE:PINS) stock has gradually trended higher by 17% for year-to-date. Positive business developments have backed the uptrend, and I believe that PINS stock will be a value creator.

For Q2 2023, Pinterest reported revenue growth of 6% year-on-year basis. For the same period, EBITDA growth was 16%. I believe that the company’s EBITDA growth and margin expansion is likely to remain strong.

There are two reasons for this view. First, monthly active user growth for Q2 was encouraging at 8% with MAU growth in emerging markets at 10%.

The company’s average revenue per user in emerging markets increased from 10 cents to 12 cents. This is significantly lower as compared to the global ARPU of $1.53. Even with stable MAU, an increase in ARPU is likely to boost key margins.

It’s important to point out that Pinterest has focused on making the platform shipping friendly. With growth in MAU, I expect advertising revenue to support ARPU growth. I also like the fact that Pinterest is investing heavily in research and development. Platform innovation is likely to boost user growth.

Tilray Brands (TLRY)

Tilray Brands (NASDAQ:TLRY) stock has surged by 86% in the last one month. Two major news items have backed the rally from deeply oversold levels.

I believe that Tilray is among the names in the cannabis industry that’s positioned to survive and grow.

In a recent news, Tilray announced an agreement to acquire eight beer and beverage brands from Anheuser-Busch (NYSE: BUD). This acquisition will position Tilray as the fifth largest craft beer brewer in the U.S.

Further, with multiple acquisitions in the alcohol and beverage industry, the company has built a strong strategic infrastructure in the U.S. This is likely to help in boost cannabis on potential federal level legalization.

Tilray has also been delivering positive news from a financial perspective. The company expects to report positive adjusted free cash flow in financial year 2024. Of course, with acquisitions, revenue growth is likely to accelerate.

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.

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The first stock takes flight in an industry often marred by turbulence. Amidst a bustling airline landscape, it has navigated a path to prosperity. The company isn’t just an airline; it’s a beacon of robust demand, operational excellence and financial stability. The company reaches markets far and wide by leveraging modern fleet expansion and unwavering operational prowess while generously rewarding its investors.

With its groundbreaking “One Network, One Cloud, One Extreme” mantra, the second company has redefined networking. It simplifies the landscape in a world where complexity has long hindered efficiency. Major contracts, cloud supremacy and transparent pricing propel this stock into a realm of rapid growth.

The third doesn’t just browse, it composes innovation. Doubling Average Revenue Per User (ARPU) in just two years, and its harmonious strategy targets high-value users. Fueled by AI-driven advertising and strategic alliances, the company has become a conductor of success. As it ventures into AI integration and gaming, it beckons a new crescendo of user engagement.

Copa Holdings (CPA)

Copa Holdings (NYSE:CPA) is poised for growth due to several fundamental factors strengthening its position in the competitive airline industry.

Firstly, Copa benefits from a robust demand environment in its region, leading to higher load factors and passenger yields. It reflects a healthy market for air travel, which is crucial for sustained revenue growth.

Additionally, the company’s strategic approach to fleet expansion, especially with the incorporation of Boeing (NYSE:BA) 737 MAX 9s, signifies a commitment to modernization and potential operational efficiency gains. By expanding its fleet and targeting new destinations, Copa is bolstering its network and increasing its market reach.

Furthermore, investing in a modernized fleet, as the Boeing 737 MAX exemplifies, aids in cost savings through improved fuel efficiency and lower maintenance expenses.

Also, Copa has exceptional operational performance. That is highlighted by on-time flights and a high completion factor showcasing its ability to offer reliable and efficient services. It fosters customer loyalty and a positive brand reputation, which translates to repeat business and positive word-of-mouth referrals.

Fundamentally, the focus is on maintaining competitive unit costs while delivering a high-quality product in 2023. It underscores the airline’s dedication to sustainable profitability. This balanced approach is crucial in the competitive airline landscape.

Notably, Copa has a unique network strategy. It is targeting underserved city pairs and capitalizing on sixth-freedom traffic. That positions Copa favorably for capturing market share as passenger demand rebounds. Its hub in Panama enhances connectivity and operational efficiency, particularly in serving the Americas.

During the pandemic, Copa’s disciplined decision-making, cost-effective operations and emphasis on offering full-service options set it apart from low-cost carriers. This differentiation attracts higher-paying passengers and boosts premium seating revenues.

Looking ahead, Copa’s growth opportunities lie in expanding connectivity and adding new cities to its network.

Extreme Networks (EXTR)

The distinctive “One Network, One Cloud, One Extreme” approach sets Extreme Networks (NASDAQ:EXTR) apart by simplifying networking management and offering flexibility through hardware, cloud management and AI-driven analytics.

This approach is particularly advantageous in a landscape where complex solutions hinder efficient network management. The competitive differentiation positions Extreme Networks as a go-to choice for customers seeking streamlined and optimized networking solutions.

Notably, the company’s track record of securing significant contracts with major enterprises and institutions underscores its reputation for reliability and innovation. Notable clients like FedEx, the FAA, and Kroger showcase Extreme Networks’ ability to excel in mission-critical network deployments.

Extreme Networks’ strategic focus on cloud-driven solutions aligns with the escalating demand for advanced networking capabilities during the enterprise digital transformation era. The introduction of the “ExtremeCloud Edge” product further bolsters its offerings, catering to customers’ requirements for cloud-managed networking solutions while emphasizing data sovereignty and privacy.

Similarly, simplified licensing and transparent pricing models contribute to customer satisfaction and loyalty, setting the company apart from competitors with convoluted tiered models. That transparent approach ensures a favorable customer experience and reduces the risk of hidden costs.

Additionally, several factors augur well for Extreme Networks’ long-term success. Its emphasis on cloud sovereignty and data security resonates with evolving regulatory standards, positioning it as a preferred choice for organizations seeking compliant and secure networking solutions. Integrating cloud-based and AI-driven solutions aligns with the growing appetite for optimizing operations and deriving insights from network data.

Finally, strategic partnerships and robust channel engagement strategies enhance the company’s growth prospects by expanding its reach and market access. The company’s fabric technology, cloud capabilities and AIOps tools further cement its position as a pivotal player in the networking landscape.

Opera (OPRA)

Opera (NASDAQ:OPRA) is poised to benefit from its strong performance and a well-defined long-term strategy. The company’s approach of focusing on high-value users with the potential for monetization has doubled ARPU over the past two years. That strategy enhances profitability and revenue growth.

Also, the growth in advertising revenue, particularly from Opera Ads, underscores the success of Opera’s approach. The company’s strong execution in this area has led to a 26% increase in advertising revenue compared to the previous year, contributing 56% of total revenue.

Integrating AI services, including collaborations with Open AI and implementing generative AI tools like Chat GPT directly into the browser, sets Opera apart regarding user engagement and differentiation.

Further, the introduction of AI-driven features not only enhances the user experience but also offers potential avenues for revenue growth. While the precise monetization strategy for AI services is still being explored, Opera is optimistic about its potential to drive engagement and generate additional income.

Strategically, Opera has partnerships with original equipment manufacturers to preload its browser on devices. Its focus on AI-driven productivity innovations offers long-term user growth and engagement potential. The company’s expansion into AI-based tools for browsing augments its product offerings, creating further differentiation and user loyalty opportunities.

Lastly, Opera is focused on gaming through its Opera GX browser, which has seen significant growth and engagement among gamers, offering a unique avenue for user acquisition and monetization. Thus, integrating AI features into Opera GX enhances its appeal among this user segment.

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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But relative strength, should it kick in as it appears to now be doing, could be an ominous warning sign that inflationary pressure isn’t done. If we look at the ratio of the Energy Select Sector SPDR ETF (NYSEARCA:XLE) relative to the S&P 500, we can see some strength kicking in.

Why Energy Stocks Are Gaining Now

One of the primary reasons for the recent surge in energy stocks is output cuts by OPEC+ producers, particularly Saudi Arabia. In a strategic move, Saudi Arabia slashed its output by 1 million barrels per day in July — a move it extended through September. This marked the country’s biggest production cut in years and has significantly boosted crude prices. This reduced output coincides with a surge in travel during the summer, which has increased the demand for crude.

This heightened demand, coupled with a positive outlook for the economy as investors grow more optimistic about the Federal Reserve potentially halting rate hikes, paints a promising picture for energy stocks.

Another factor bolstering the outlook for energy stocks is the positive forward-looking guidance issued by oil companies in their recent quarterly earnings reports. For instance, Chevron (NYSE:CVX) stated in its post-earnings conference call that it expects to deliver strong free cash flow for years to come and plans to resume share buybacks through the fourth quarter. This potential signal of confidence in its upcoming financial performance is a positive sign for investors.

Moreover, there is an expectation that OPEC+ will continue to keep oil prices high, which could provide further support to crude prices. This, along with an expected increase in demand as China works to revive its economy, could offer more impetus for energy stocks.

The Bottom Line

Despite this, investing in energy stocks is not without risks, particularly if we see a reversal of the yen carry trade, which I keep emphasizing could be the catalyst for a credit event and global margin call.

In addition, if macroeconomic indicators continue to decline and central banks fail to respond appropriately, the global economy could enter a prolonged recession. Currently, the yield curve seems to suggest this is possible. This could put downward pressure on oil prices and negatively affect the performance of energy stocks.

However, on the flip side, there’s also considerable potential for reward. If oil prices reach $100 a barrel, it could result in significant gains for energy stocks and maybe allow them to diverge from broader equity indices like they did in 2022. I like the relative strength here and think oil prices can continue to move higher.

Just be mindful of the broader implications. Yes – energy stocks can continue to outperform on a relative basis, but that could just mean they go down less if things get violent for the stock market.

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 by entering the promo code “InvestorPlace30” with your order.

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Investing in energy companies, especially oil stocks, can be a good idea for an investor looking to diversify and gain exposure to more portions of the overall market.

It’s just essential for investors to have some grasp on the oil market and pricing so that they get into the market at more of a low point in oil prices, which is why oil stocks to avoid in August should be on your mind.

At its peak in the middle of 2022, oil prices were hovering around $110-$120 a barrel. Towards the tail end of 2022, oil prices began falling to $70 a barrel just a year later.

The oil stocks to avoid in August I have mentioned below have seen a drop in their share price over the past year. It will be interesting to see how they handle the oil market, which is less forgiving for energy companies than a year ago.

HighPeak Energy (HPK)

HighPeak Energy (NASDAQ:HPK) was created in 2019 and started trading publicly in 2020 through a special purpose acquisition corporations called Pure Acquisition Corp.

HighPeak’s operations are located within the Midland Basin in Western Texas.

Over the past year, the company’s share price has fallen approximately 31%. On Aug. 7, the company resale its second-quarter earnings for 2023. Their total revenue grew by 20%, and earnings per share dropped by 61% compared to the previous year. They also announced a second-quarter dividend of $0.025 per share.

At the end of July, HighPeak stated that they closed their underwritten public offering of 14.8 million shares which sold for $151 million. They did this to help with near-term liquidity.

W&T Offshore (WTI)

W&T Offshore (NYSE:WTI) is an oil and natural gas company focusing on acquiring, exploring, and developing various properties in the Gulf of Mexico. The company has successfully drilled 50 different wells offshore since 2011. The company operates shelf and deepwater leases.

W&T Offshore has seen its share price drop by 23% this past year. Their most recent earnings report, released on Aug. 1, stated a total revenue decline of 54% and a net loss of $12 million.

The company has a 100% working interest in two new leases in the Gulf of Mexico which combined cover approximately 10,000 acres. In mid-June, the company announced it would appoint Sameer Parasnis CFO and executive vice president of W&T Offshore.

Devon Energy (DVN)

Devon Energy (NYSE:DVN) is an independent energy company that explores oil and natural gas reserves in North Dakota, Wyoming, New Mexico, Texas, and Oklahoma.

Over the past year, the company’s share price has fallen by 10%. Devon Energy released its first-quarter earnings report on May 8. Their total revenue remains practically unchanged, and net income grew by less than a percent compared to the first quarter of 2022. 

Devon Energy’s board of directors agreed to increase their share buyback program by 50% to $3 billion.

Their Eagle Ford property in Texas saw a 90% production increase due to the Validus acquisition and the introduction of 26 new wells in the area.

In September 2022, Devon Energy completed its acquisition of Validus Energy, an operating energy company in Eagle Ford.

The addition gave Devon Energy access to 42,000 acres near their existing operations in Eagle Ford, which helped dramatically increase their output in the area. The total cash consideration of the acquisition was $1.8 billion.

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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As LCID stock has trended downward lately, experts such as Louis Navellier have soured on it, advising investors to stay away. But as InvestorPlace contributor Larry Ramer reports, the EV producer still boasts a strong cash balance and a high valuation. Now Lucid is gearing up to continue its mission of taking on Tesla with the debut of its answer to the Tesla Model S Plaid. This new EV player comes with plenty of exciting features. Let’s take a look at what aspiring buyers can expect.

LCID Stock and the Lucid Air Sapphire

Here are the most important things that LCID stock investors should know about this new addition to the Lucid product line as the Air Sapphire prepares to hit the road.

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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It seems like T2 Biosystems (NASDAQ:TTOO) stock will live to see another day after regaining compliance with Nasdaq’s minimum market value of listed securities policy. Indeed, this morning, T2 published a note confirming that Nasdaq has given the company written notice that the market value of its listed securities is now acceptable.

What does this mean for T2?

Well, immediately, it means investors are clamoring over TTOO stock in the wake of the announcement. Shares of TTOO are up more than 10% today on the company’s optimistic press release.

If you recall, T2 was first notified by Nasdaq in November 2022 that it had failed to uphold the exchange’s $35 million minimum market value of listed securities for 30 consecutive trading days. T2 regained compliance on Aug. 7, its 10th-straight trading day with the market value of its listed securities over $35 million.

T2 is best known for its gene-analysis technology, capable of detecting sepsis-causing pathogens and antibiotic-resistance genes.

TTOO Stock Is Still Touch-and-Go Ahead of November Share Price Deadline

Despite the promising news, T2 isn’t quite of the woods just yet. In fact, the company still needs to regain compliance with Nasdaq’s minimum $1 bid price rule by Nov. 20, 2023. At the time of this writing, TTOO stock trades for just 35 cents per share — a far cry from $1. Some investors have speculated that T2 will inevitably be forced to initiate a reverse stock split. That is, lowering the company’s total share count by merging shares, and making the price per each share superficially higher.

That said, there’s plenty of time between now and Nov. 20, should T2 attempt to raise its share price the old-fashioned way.

As it stands, TTOO stock remains one of the big losers of this year’s bull market. TTOO is down nearly 80% year-to-date (YTD), even as the Nasdaq Composite eyes a 32% gain over the same period.

It remains to be seen whether today’s news represents the start of a comeback for this biotech company. Either way, fans of TTOO should be pleased with the rather optimistic news.

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, 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 second quarter report is typical. Bloom announced on Aug. 3 that second quarter sales were up nearly 24%, compared to the same quarter a year ago. But there was still an operating loss of $54.5 million, and a net loss of 17 cents per share.

Analysts noted sales were $10.3 million short of estimates, and the loss of 3 cents/share was heavier than anticipated for BE stock. Shares are down 6% since the earnings came out.

A Closer Look at BE Stock

Unlike Plug Power (NASDAQ:PLUG), which focuses on making hydrogen from renewable sources and produces fuel cells for warehouse forklifts, Bloom focuses on low cost back-up power for data centers and utilities.

Bloom’s latest Electrolyzer, announced in July, claims to be 15-45% more efficient at using electricity to create hydrogen than competing products, by using a solid oxide.

Since 2020, this has resulted in 20% annual revenue growth. But profits have proven elusive. The best news in the latest report was a solid non-GAAP gross margin of 20%.

This let Bloom cut operating losses nearly in half, compared to a year ago. The company has also continued to raise cash. It had $767 million of it on the books at the end of June.

International expansion is also part of the strategy. Bloom recently highlighted a sale of 300 kilowatts of fuel cells to a German geothermal plant. Bloom calls this a move toward European energy independence. 

While Plug Power focuses on pulling hydrogen from brine pools or using wind and solar power to power its electrolyzers, Bloom talks about “responsibly sourced” natural gas.

The industry calls this “blue hydrogen” and some analysts wonder why, in that case, hydrogen is necessary at all since you can just burn the gas. Bloom calls its gas “certified,” saying its approach reduces carbon dioxide emissions by 176,000 tons each year.

A Crowd Favorite

Bloom Energy has been making big promises since coming out of stealth mode in 2010. By that time, it had already raised $400 million and was a favorite of politicians and the Silicon Valley elite. Government subsidies helped it in the last decade, but the company  remained viable after those expired.

The dream of cost-effective hydrogen gives fuel cell companies like Bloom a halo other energy companies lack.

Bloom has 14 analysts at Tipranks, 9 of whom tell investors to buy it, even with the stock down 16% this year. Our Muslim Farooque recently suggested buying Bloom, along with Plug Power and BP (NYSE:BP).

The stock is no longer priced as pure speculation, however. The market cap of $3.155 billion represents less than three times last year’s sales. Continuing growth, and falling losses, offer investors some real hope.

The biggest problem is that Bloom’s electricity still costs more to produce than that from coal or natural gas, about 15 cents per kilowatt hour. That’s why its latest Electrolyzer announcement is important.

The Bottom Line

Hydrogen has many use cases as an energy source. Cells produce water as their main pollutant, which is why Plug Power uses them to power forklifts. They’re quiet, which is the argument used by FuelCell Energy (NASDAQ:FCEL) when it sells back-up power to utilities. 

But hydrogen also needs to compete on costs. That’s where Bloom is important. Its fuel cells use sand instead of precious metals. Betting that costs will continue to come down, and that renewable sources of power will continue to expand, is Bloom Energy’s brand.

Investors should keep their eyes on the bottom line, and hope it turns quickly from red to black.

As of this writing, Dana Blankenhorn 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.

Dana Blankenhorn has been a financial and technology journalist since 1978. He is the author of Technology’s Big Bang: Yesterday, Today and Tomorrow with Moore’s Law, available at the Amazon Kindle store. Tweet him at @danablankenhorn, connect with him on Mastodon or subscribe to his Substack.

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According to its press release, Carvana earlier called for positive adjusted EBITDA in Q3, as well as a non-GAAP total gross profit per unit (GPU) above $5,000. However, based on early data, management felt confident enough to both specify and lift these assessments. Now, adjusted EBITDA will land above $75 million. Also, GPU will hit somewhere north of $5,500.

“In the first two quarters of 2023, Carvana posted best-ever quarterly GPU and adjusted EBITDA performances, and our continuing performance so far this quarter has led us to raise our Q3 outlook,” said Carvana Chief Financial Officer Mark Jenkins.

The CFO further added that its strong execution continues to drive lasting business improvements. These upswings include fundamental gains in retail and wholesale GPU that will undergird future results.

Unfortunately, investors didn’t find much in the news. Not only did CVNA stock fall during the midweek session, it dipped roughly 17% during the trailing five sessions.

Analysts Question the Viability of CVNA Stock

Interestingly, the consensus view among analysts for Carvana’s Q3 adjusted EBITDA was $45.7 million. Therefore, the updated guidance of over $75 million should be a hopeful sign that CVNA stock might regain its footing. Unfortunately, the company has been struggling with heavy debt loads as it faces a slowdown in the used car market.

Per Bloomberg, the latest announcement comes just three weeks after Carvana reported better-than-expected second-quarter results. In addition, it announced a debt restructuring, which lifted investors’ spirits. Despite an early morning pop higher, CVNA stock eventually printed red ink.

According to the publication’s Bloomberg Intelligence service, Carvana’s forecast upgrade might do little to swing the needle for CVNA stock:

“Carvana’s upward revision of adjusted Ebitda (a non-GAAP measure) to above $75 million for 3Q, from just positive Ebitda, does little to affirm the path toward long-term profitability. Vehicle sales collapsed to 77,000 units in 2Q from 112,000 a year earlier and, despite head-count reductions to slash costs, leave questions unanswered about the sustainability of the turnaround.”

One of the major headwinds is the aforementioned debt load. So far, Carvana failed to post positive net income for a full year due in part to the significant interest expenses related to its debt. Bloomberg notes that the recent restructuring will lower borrowings by $1.2 billion and provide the company the opportunity to delay some interest payments for the next two years.

Why It Matters

Currently, analysts peg CVNA stock as a consensus hold. This assessment breaks down as only one “buy,” 11 “holds” and five “sells.” Further, the two most recent ratings from Jefferies and Morgan Stanley are sell ratings. Overall, the experts’ average price target sits at $37.14, implying about 13% downside risk.

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.

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During the second quarter, AMC reported $1.347 billion in revenue, up by 15.6% year-over-year (YOY). The company also managed to collect net income of $8.6 million, compared to a net loss of $121.6 million a year ago. As of June 30, the movie theater chain had $643.4 million in liquidity, which includes $208.1 million of unused capital from a revolving credit facility.

“Following an impressive start to the year in the first quarter of 2023, the second quarter yet again showed great progress,” said CEO Adam Aron. “AMC saw more than a 12% growth in attendance, a 15% growth in total revenue and a 71% increase in Adjusted EBITDA compared to the second quarter of 2022.”

CEO Adam Aron Urges APE to AMC Stock Conversion

On July 23, Aron posted an open letter to X, the company formerly known as Twitter. The letter, which has a sobering tone, reflects Aron’s message in his earnings comments:

“Even with our $643 million of quarter-ending liquidity, our ability to continue to raise capital and remain agile are absolutely vital to maintaining our strong recovery trajectory. There are real and potentially severe liquidity hurdles on the horizon that we will need to overcome.”

In the letter, Aron warns that AMC risks the chance of running out of cash by 2024 or 2025 if it is unable to raise equity capital. He echoed this in a post that raised the issue of liquidity concerns:

Reading my Twitter feed: some of you do not get the nuance of our situation. AMC is killing it at the box office right now, so hopefully by 2024/2025, COVID-19 will just be a bad memory. But we face liquidity challenges before then. My recent Open Letter risks are real.

— Adam Aron (@CEOAdam) August 7, 2023

As of now, AMC is currently awaiting word from the court on whether or not its status quo order is still active. The status quo order blocks the conversion of AMC Preferred Equity (NYSE:APE) into AMC stock. AMC attorney Kevin Gallagher has asked to court to make up its mind by this month given “AMC’s current financial situation, and the general pattern of late-summer capital markets activity.”

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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Palantir (NYSE:PLTR) stock may be about to shake its five-day losing streak. The data analytics company has secured a new partnership that will give it valuable exposure to a new sector. Today, Palantir announced a multi-year partnership with Azule Energy.

An Angola-based company, Azule is one of its country’s leaders in the energy field. Now, it will be joining forces with Palantir to further optimize its upstream production through Palantir’s Foundry software. The energy producer is focused on growth and Palantir’s tools are poised to help the company achieve its goals for the coming year. While the news hasn’t boosted PLTR stock yet, that could easily change when markets adjust.

What’s Happening With PLTR Stock?

As noted, Palantir has been struggling lately. Despite its clear appeal as an artificial intelligence (AI) innovator, the company has spent the past five days trending more than 15% downward. Today, PLTR stock is down by about 10% as of this writing, although that can be attributed more so to negative market momentum. Many leading tech stocks, including Microsoft (NASDAQ:MSFT) and Tesla (NASDAQ:TSLA), are currently in the red as well.

Investors should be careful to see the bigger picture when it comes to Palantir’s news. The company is expanding into a new market, establishing a presence in a field with plenty of growth potential. Palantir is known for securing lucrative contracts with the U.S. Department of Defense and other government agencies. But as the AI boom continues, the company’s private-sector endeavors will only boost PLTR stock, helping it demonstrate sustainable growth.

InvestorPlace contributor Alex Sirois recently stated in an analysis of PLTR stock:

“[Palantir] is among the best-known analytics firms that serve the government and defense department through its Gotham and Foundry products. The software platforms have taken across government and the emergence of AI has opened a new dimension for the company’s future prospects.”

All told, the key takeaway from this latest Azule partnership is that Palantir isn’t just a stock built on AI hype. This is a tech sector sleeper with significant potential. Indeed, if the firm can establish itself as a trusted name in international energy markets, PLTR stock could stay well above the $20 mark.

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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Headquartered in California, Joby Aviation builds electric vertical takeoff and landing (eVTOL) aircraft. As we’ll discover, the company has some confident large-scale financial backers. Just maybe, a small share position in Joby Aviation today could achieve liftoff soon — but be aware of the risks and don’t over-leverage yourself.

An Objection to JOBY Stock

Since Joby Aviation isn’t profitable, the company didn’t spend much time discussing sales or income in its second-quarter shareholder letter. This might be off-putting to value-focused investors. Furthermore, it might bother some commentators that Joby Aviation shares have doubled in value year-to-date.

Thus, JPMorgan analysts reportedly downgraded JOBY stock from “neutral” to “underweight,” citing a “largely overblown rally” in the shares. That’s a fair point, and since there’s risk involved in emerging industries, financial traders shouldn’t over-invest in Joby Aviation.

It’s worth noting, though, that Joby Aviation’s capital position seems to be improving. Specifically, the company’s balance of cash and cash equivalents more than doubled from $146.101 million as of Dec. 31, 2022, to $382.673 million as of June 30, 2023.

Certainly, Joby Aviation’s balance sheet has been bolstered by capital infusions from confident backers. These include an investment led by financial firm Baillie Gifford totaling $180 million as well as a $100 million investment from telecommunications company SK Telecom (NYSE:SKM).

Joby Aviation’s Big Contract and History-Making Moment

Like I said earlier, Joby Aviation could be famous someday. The company might even be in the history books. That’s because Joby Aviation’s production prototype aircraft is, according to the company, “expected to become the first-ever eVTOL delivered to a customer.”

This event could happen as soon as next year. Joby Aviation plans to move its prototype aircraft to Edwards Air Force Base to be operated by the company as part of its Agility Prime contract with the U.S. Air Force.

Hence, Joby Aviation is preparing to make history while also generating big-time revenue, as the contract is valued at up to $131 million. Moreover, Joby Aviation has already submitted all of its certification plans to the Federal Aviation Administration (FAA).

According to the FAA’s timeline, urban air taxis could commence service over U.S. cities as early as 2028. Clearly, the path forward will be challenging for Joby Aviation. New milestones could take months or years. That’s why JOBY stock investors will need to be patient and have faith in the company.

JOBY Stock: Keep Your Position Size Small

Hopefully, you’re now aware of the risks and the potential growth of Joby Aviation. It might take a while for Joby Aviation to fully commercialize its aircraft.

Also, JOBY stock recently rallied, so it might pause or waver before taking the next leg up. Still, risk-tolerant investors should consider taking a share position in Joby Aviation. There’s multi-bagger potential here if you’re willing to give the company time to reach its next milestones.

On the date of publication, David Moadel 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.

David Moadel has provided compelling content – and crossed the occasional line – on behalf of Motley Fool, Crush the Street, Market Realist, TalkMarkets, TipRanks, Benzinga, and (of course) InvestorPlace.com. He also serves as the chief analyst and market researcher for Portfolio Wealth Global and hosts the popular financial YouTube channel Looking at the Markets.

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When looking for the best dividend stocks to buy, I’m more interested in the dividend growth than the yield. That’s because growth in dividends is a by-product of earnings growth. The two usually go hand in hand. DGRW delivers these types of companies. 

All three of my dividend stocks to buy now are held by DGRW. I’ve selected three that have grown their annual dividend by 8% over the past 12 months.

Microsoft (MSFT)

Microsoft (NASDAQ:MSFT) is the largest holding in DGRW with an 8.46% weighting. 

The company increased its quarterly dividend by 9.7% to 68 cents with the December 2022 payment. Its annual payment of $2.72 yields 0.84%. It has a five-year dividend growth rate of 9.7%. 

It’s a good thing I don’t focus on dividend yield because Microsoft’s is pint-sized. You can’t pay the rent from its dividend payout unless you’re Bill Gates and own 103 million shares.  

However, despite the tiny dividend, it still managed to pay out $19.8 billion in fiscal 2023 (June year-end). That was 9.2% higher than a year earlier. It also repurchased $22.2 billion in 2023 and $82 billion of its stock over the past three years.   

Many investors are focused on its $69 billion acquisition of Activision Blizzard (NASDAQ:ATVI). Facing intense scrutiny from regulators, the Federal Trade Commission (FTC) filed a lawsuit on June 12, seeking to place a permanent injunction against Microsoft so that it can’t finish its acquisition until the FTC finishes its case looking to block the deal. 

However, on July 14, a U.S. appeals court rejected the FTC’s request to pause the takeover, leaving only the United Kingdom as the last major stumbling block to the deal’s completion.    

On another front, Bernstein analyst Mark Moerdler believes its push into AI could vault it past Amazon (NASDAQ:AMZN) into the top spot in the cloud.  

“AI at Microsoft is far more than Bing Chat,” Barron’s reported the analyst’s May 9 comments. “It is becoming core technology everywhere and in everything that Microsoft does.”

According to the analyst, AI touches about 42% of the company’s revenue in some fashion. This commitment to AI will lead to even greater cloud revenues — its 2023 actual cloud revenue was $111.6 billion with a 12-month run rate of $121.2 billion.

Deere & Co. (DE)

Deere & Co. (NYSE:DE) is the 48th-largest holding in DGRW with a 0.43% weighting. 

The agricultural and construction equipment manufacturer last raised its quarterly dividend by 4.2% with the May 2023 payment. It also raised its payment by 6.2% in February. Year-to-date, it’s increased its dividend by 10.6%. The annualized dividend is $5.00 a share, yielding 1.2%.

As I said in the introduction, it’s more about growth than yield. As for its return on equity and return on assets, they are 9.81% and 43.34%, respectively, in the trailing 12 months ended April 30.

Between the ongoing need for housing and food, Deere plays in some very important sandboxes. It’s a big reason why analysts like its stock. Of the 26 that cover it, 18 rate it as Overweight or an outright Buy with a $455.50 target price, about 8% higher than its current share price. 

One thing to remember: The United States Department of Agriculture (USDA) estimates that U.S. farmers will make $151 billion in 2023, down 21% in 2022. That could translate into lower agricultural equipment sales in the near term.

However, over the long haul, Deere stock is a winner.

Elevance Health (ELV)

Elevance Health (NYSE:ELV) is the 62nd-largest holding in DGRW with a 0.35% weighting. It used to be known as Anthem until its rebranding in June 2022. 

The health insurance provider to more than 48.1 million medical members through various health plans last raised its quarterly dividend by 15.6% with the March 2023 payment. It is the 12th consecutive year it’s raised its dividend. The annualized dividend is $5.92 a share. It yields 1.4%.

Elevance reported its Q2 2023 results in July. It’s gotten off to a good start halfway through the year with an 11.7% increase in operating revenue to $85.28 billion with an operating gain of $5.46 billion, 14,4% higher than the first six months of 2022.

Its pharmacy benefits manager, CarelonRX, had an 18.1% increase in operating revenue in the first half to $23.24 billion, accounting for 32.5% of its overall revenue, flat to a year earlier.

Analysts like its stock. Of the 22 covering it, 18 rate it Overweight or an outright Buy with a median target price of $572, 24% higher than its current share price. 

As a result of its strong quarter, Elevance raised its full-year earnings to $32.85 a share or higher. That’s a reasonable 14.1x its 2023 earnings per share. As for its price-to-sales ratio, it’s trading at 0.68x; it’s cheaper than it’s been since 2017.      

On the date of publication, Will Ashworth 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

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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