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☀️ Profitable Picks
Plus, a Tesla Autopilot issue has been linked to this many crashes.
Happy Friday afternoon to everyone on The Street. Here's a snapshot of where markets ended the trading session, plus tomorrow's trade idea delivered to you today.
🟩 | US Stocks Rose On Friday. A rally in Big Tech names with strong earnings caused the S&P 500 and Nasdaq Composite to surge and notch their best week since November.
📈 | One Notable Gainer: Shares of Google parent company Alphabet rallied 10% after the company posted better-than-expected first-quarter results and approved its first-ever dividend.
📉 | One Notable Decliner: Intel’s stock fell 9% after a downbeat forecast signaled that the AI boom was diverting spending away from its traditional data center chips.
☀️ | Tomorrow's Trade: Profitable Picks. Scroll down for more.
YESTERDAY’S POLL RESULTS
🟩🟩🟩🟩🟩🟩 Bullish
🟨🟨🟨⬜️⬜️⬜️ Bearish
S&P 500 Heatmap. Credit: Finviz
All stocks on US exchanges. Credit: Finviz
Global ADR snapshot. Credit: Finviz
MARKET MOVERS
MSFT (+2%) During the fiscal third quarter, Microsoft’s Intelligent Cloud segment generated $27.71 billion in revenue, 21% above expectations (CNBC)
XOM (-3%) Exxon Mobil reported mixed Q1 2024 results with an earnings miss but showed a strong $10.1 billion in free cash flow during the quarter (YF)
SNAP (+28%) Snapchat parent company, Snap, saw its shares surge as its improved ad system paid off, bringing in $1.2 billion in revenue (The Guardian)
RMD (+19%) Medical device company ResMed saw its shares rise sharply after it filed a quarterly report that “left Wall Street cheering” (Barron’s)
SKX (+11%) Shares of Skechers skyrocketed to an all-time high Friday after the company announced record financial results for the first quarter (Motley Fool)
TOGETHER WITH MASTERWORKS
It’s one of the oldest markets in the world, but until recently, the average person would never dream of investing in it. Until a Harvard data scientist and his team cracked the code with a system to identify “excess alpha.”
The best part? Everyday people are already benefiting.
The company that makes it all possible is called Masterworks, whose unique investment platform enables savvy investors to invest in blue-chip art for a fraction of the cost. Their proprietary database of art market returns provides an unrivaled quantitative edge in analyzing investment opportunities.
So far, it's been right on the money. Every one of their 16 exits has been profitable, with recent exits delivering +17.8%, +21.5%, and +35.0% net annualized returns.
Intrigued? The Street Sheet readers can skip the waitlist with this exclusive referral link.
OVERHEARD ON THE STREET
CNBC: Paramount Global and Skydance Media are making progress on a deal that would merge the two media companies.
WSJ: In the last quarter, Microsoft had to spend billions on infrastructure to accommodate the booming appetite for AI.
CNBC: Federal authorities say a “critical safety gap” in Tesla’s Autopilot system contributed to at least 467 collisions, 13 resulting in fatalities.
CNN: TikTok’s Chinese parent company, ByteDance, said Thursday that it has no plans to sell the social media platform.
Reuters: The FDA approved Pfizer’s treatment for a rare genetic bleeding disorder, marking the company’s first gene therapy to win clearance in the U.S.
TOMORROW’S TRADE IDEA, TODAY
It’s All About the Profits
Last year, the S&P 500’s trailing four-quarter return on equity (ROE) surged to 20.8%. To put that figure in perspective, it’s in the 98th percentile of the index’s recorded ROE.
As we continue into an uncertain second quarter, Goldman Sachs has highlighted some stock picks expected to see massive profit growth over the next 12 months.
GE Aerospace
Goldman Sachs has big expectations for GE Aerospace (GE), seeing potential ROE growth of 48%, while the rest of the industrials sector is expected to decline 2%.
GE Aerospace split off from General Electric at the start of April, allowing investors to focus their funds on the American aircraft engine supplier.
On Tuesday, GE Aerospace released its first earnings report as a standalone company, raising its full-year profit guidance and expecting profit to reach between $6.2 billion and $6.6 billion.
The stock could also see a boost from Boeing’s continued manufacturing woes. With fewer new airplane deliveries, airlines will operate older planes for longer. This means GE Aerospace could have a pickup in revenue from its aftermarket servicing business, known for its high profits.
First Solar
Goldman Sachs is also set on renewable energy tech company First Solar (FSLR). The firm claims the solar company could grow its ROE by 34% in the next 12 months while the information technology sector is expected to decline by 4%.
First Solar’s stock could also be an international trade war play. Janney Montgomery Scott initiated coverage of the company with a buy rating, believing First Solar benefits from a “tougher on China” trade policy.
Wednesday the company led a group of seven solar panel manufacturers to petition the US government to impose additional tariffs on $12.5 billion of imported panels from Southeast Asia.
Goldman Sachs believes these stocks and more might allow investors to get in on the profits.
Which stock do you think will outperform over the next 12 months? |
TOGETHER WITH MASTERWORKS
It’s one of the oldest markets in the world, but until recently, the average person would never dream of investing in it. Until a Harvard data scientist and his team cracked the code with a system to identify “excess alpha.”
The best part? Everyday people are already benefiting.
The company that makes it all possible is called Masterworks, whose unique investment platform enables savvy investors to invest in blue-chip art for a fraction of the cost. Their proprietary database of art market returns provides an unrivaled quantitative edge in analyzing investment opportunities.
So far, it's been right on the money. Every one of their 16 exits has been profitable, with recent exits delivering +17.8%, +21.5%, and +35.0% net annualized returns.
Intrigued? The Street Sheet readers can skip the waitlist with this exclusive referral link.
ON OUR RADAR
WSJ: Donald Trump’s allies are quietly drafting proposals that would attempt to erode the Fed’s independence if the former president wins a second term.
CNBC: Honda plans to invest $11 billion in Ontario, Canada to create a “comprehensive EV value chain” with new assembly and battery plants.
Axios: The first cargo ship passed through Baltimore's newly opened deep-water channel on Thursday since the Francis Scott Key Bridge collapse.
CNBC: Venice has become the first city in the world to charge tourists for visiting. The pilot program exacts a fee of 5 euros from day-trippers.
Bloomberg: California commercial real estate foreclosure filings almost tripled in January from a year earlier, according to data provider Attom.
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