🦉 3 Cheap Stocks That Shouldn’t Be Cheap for Long
byDaljit Kalsi-
Earnings growth typically drives stock prices. Three stocks are set to grow at double and even triple-digit rates this year, yet their prices stay at more than 30% discounts from their 52-week highs. Whether underrated or just forgotten, they are cheap stocks that shouldn’t be so. The names to keep in mind for your ‘growth at a discount’ watchlist can include Hecla Mining (NYSE: HL), Wayfair Inc. (NYSE: W), and even Mobileye Global Inc. (NASDAQ: MBLY). Combining tailwinds in the global economy on top of above-average earnings per share (EPS) growth can allow investors to grow their portfolios by double digits in this new cycle. Professional traders use a process called ‘top-down’ analysis to understand the macro developments at play. .
Equity markets advanced ahead of the final trading day for the month and quarter. The S&P 500 has gained about 2.7% for the month, setting new highs along the way, and is on track to continue the gains next month. With the FOMC on track to cut rates later this year, the broad market will likely continue to rise until the outlook changes of the first cut are finally made. As it is, the market expects the first cuts to come by mid-summer.
Next week will be a busy one for market watchers and traders. The PCE Price Index will be released this Friday after the market closes, and next week's calendar is hot. The monthly labor data will likely confirm resilient economic conditions and persistently high inflation, aligning with higher-for-longer and an eventual soft economic landing. The risk is that cutting interest rates too soon will accelerate activity, inflation and the Fed back into policy tightening mode.
Earnings growth typically drives stock prices. Three stocks are set to grow at double and even triple-digit rates this year, yet their prices stay at more than 30% discounts from their 52-week highs. Whether underrated or just forgotten, they are cheap stocks that shouldn’t be so. The names to keep in mind for your ‘growth at a discount’ watchlist can include Hecla Mining (NYSE: HL), Wayfair Inc. (NYSE: W), and even Mobileye Global Inc. (NASDAQ: MBLY). Combining tailwinds in the global economy on top of above-average earnings per share (EPS) growth can allow investors to grow their portfolios by double digits in this new cycle. Professional traders use a process called ‘top-down’ analysis to understand the macro developments at play.
China's nationalist leader, Xi Jinping, called for closer trade ties with the U.S. during a meeting on Wednesday with top American business leaders in Beijing that came amid a steady improvement in relations that had sunk to the lowest level in years.Xi emphasized the mutually beneficial economic ties between the world's two largest economies, despite heavy U.S. tariffs on Chinese imports and Washington's accusations of undue Communist Party influence, unfair trade barriers and theft of intellectual property.China's economy has struggled to recover from severe self-imposed restrictions during the COVID-19 pandemic that it lifted only at the end of 2022.
When traders stampede into call options, it typically means they expect an event to come, pushing the underlying stock higher soon. Because options expire at a given date, these traders must get their thesis right before expiration or risk losing their entire investment. Today, three stocks show unusual call option activity, which could lead investors to reverse engineer these decisions and find out why stocks like Spirit AeroSystems Holdings Inc. (NYSE: SPR), Hims & Hers Health Inc. (NYSE: HIMS), and even PulteGroup Inc. (NYSE: PHM) can outperform the market in the coming months. Whil...
A British financial trader, who has been described as the ringleader in the manipulation of a key interest rate before and after the global financial crisis, lost his appeal Wednesday to have his conviction quashed.Tom Hayes, 44, who was a former trader at U.S. bank Citigroup and Switzerland's UBS, became in 2015 the first person to be found guilty of manipulating the so-called London Inter-Bank Offered Rate, or LIBOR, between 2006 and 2010.Hayes, who was described at his trial as being at the center of an enormous fraud, spent half of his 11-year sentence in prison before his release in 2021. He was also convicted in a U.S.
UiPath Inc (NYSE: PATH) is a leader in robotic process automation (RPA) and business process automation (BPA) solutions. Their platform enables companies to use artificial intelligence (AI) powered software robots (bots) to automate repetitive and rule-based tasks that humans typically perform. This streamlines processes and workloads and improves efficiencies while enabling humans to focus on more complex tasks at hand. Capitalizing on 2 Secular Tailwinds UiPath capitalizes on 2 secular tailwinds, automation and AI. This business services sector company It is a clear benefactor in the AI trend like C3.ai Inc.
A British financial trader, who has been described as the ringleader in the manipulation of a key interest rate before and after the global financial crisis, lost his appeal Wednesday to have his conviction quashed. Tom Hayes, 44, who was a former trader at U.S. bank Citigroup and Switzerland's UBS, was found guilty in 2015 of manipulating the so-called London Inter-Bank Offered Rate, or LIBOR, between 2006 and 2010. Hayes, who was described at his trial of being at the center of an enormous fraud, spent half of his 11-year sentence in prison before his release in 2021. He was also convicted in a U.S.
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