As a 6-year-old, I was certain that the phrase was “the bear of bad news” rather than the “bearer of bad news.”

We begin today’s Digest with me combining the two as the bearer of bearish news…but we won’t end there.

Here’s the bottom line for my initial bearishness.

My bullish friends, the premium that you’re willing to accept today for owning stocks instead of bonds (called the “equity risk premium” or “ERP”) is at its lowest level in 23 years.

In other words, you’re getting a terrible deal when buying the typical stock today.

Rather than enjoying the “risk-free return” of quality bonds held to maturity, you’re in danger of adding “return-free risk” to your portfolio when you buy some very overvalued parts of the stock market.

Let’s fill in a few details on this, but then we’ll switch things up…

I’ll throw off the mantle of “bearer of bearish news” and switch over to the “bearer of reasonably bullish news.”

After all, there are still plenty of fantastic returns available to investors today when looking in the right areas, and with the right perspective.

Most investors don’t like risk…but they do like big returns.

So, investors live with an ongoing tension – the tug of war between how much risk to accept in exchange for some anticipated size of return.

Do you invest in U.S. government bonds that are considered “risk free?” Or do you reach for even greater returns by investing in stocks, knowing that you risk loss of capital?

Investors demand an “equity risk premium” to compensate them for taking this extra risk. We measure this extra return through the ERP.

It compares a stock’s earnings yield (which is the inverse of the price-to-earnings ratio using a company’s expected earnings over the next year) to a bond yield.

So, how much additional return are investors demanding today for stocks over bonds?

Try about 0% on for size.

Here’s our hypergrowth expert Luke Lango:

The 10-year Treasury yield continues to spike, yet stocks do not fall, leading to an Equity Risk Premium (ERP) that is now at a new cycle low of just 0.10.

This figure is far too low.

The S&P 500 should not trade at 23.5 times forward earnings when the 10-year Treasury yield is near 4.2%.

One of these metrics must adjust.

The ERP is not a market timing tool.

If anything, it’s more of a gauge of investor sentiment. Today’s ERP has fallen toward zero as bullish investors have bid up stock prices, which reduces their earnings yield, making stocks less attractive relative to high-yielding bonds (hence a low ERP).

But we cannot ignore this ERP reading. Studies show that long-term stock market returns often underperform in the wake of very low ERPs.

This makes sense because one of the key variables of the ERP is a stock price. In essence, a low ERP shows, in part, that investors have already paid top dollar for expected earnings going forward.

But if investors are already paying high prices today, that means they’ll have to pay even higher, nosebleed prices tomorrow to keep the bull market going. And at some point, there’s a limit to what people will pay for stocks. It may not be tomorrow, but lofty stock prices and a low ERP are not supportive of a long and healthy bull market.

So, though today’s anemic ERP doesn’t mean “get out of stocks immediately,” it does suggest the typical stock isn’t going to do well over the coming years.

“CAPE” stands for “cyclically adjust price-to-earnings” ratio. It’s a long-term measure of a market’s valuation.

It’s the traditional price-to-earnings ratio of a stock but it uses rolling 10-year average earnings to smooth out business cycle fluctuations.

Like the ERP, the CAPE ratio isn’t a market timing tool. But it does offer investors a helpful and remarkably accurate expectation of long-term forward returns.

This happens because markets tend to mean revert over time. So, a stock or index that has a high CAPE value today is more likely than not to see its value fall in the coming years. That would mean below-average stock returns.

On the flip side, a stock or index that has a low CAPE value today is more likely than not to see its value rise in coming years. And that would be based on above-average returns.

The more extreme the starting CAPE value (either high or low), the more pronounced those ensuing 10-year returns often are.

Below is a chart from my friend and quant investor Meb Faber. Starting in 1900, the chart shows initial CAPE values of the S&P and what the ensuing 10-year returns were after beginning at the specified CAPE value.

Dark green represents the cheapest CAPE starting years (CAPEs between 5 and 10).

Red represents the most expensive (CAPEs between 20 and 45).

As you’ll see visually, most of the “green” starting years (low CAPE ratios) end up on the right side of the chart — meaning big 10-year returns.

On the flip side, “red” starting years (high CAPE ratios) usually end up on the left side of the chart — meaning low and negative 10-year returns.

So, what’s the S&P’s current CAPE value?

33.61 – the second highest level since the Dot Com peak, and deep into the “red” bucket of dangerous starting valuations.

In short, today’s near-zero ERP and nosebleed CAPE say one thing…

The typical stock isn’t likely to perform well over the next 10 years.

This echoes Stanley Druckenmiller of Duquesne Capital, perhaps the greatest trader of all time, who said last year:

If I liked the stock market, I would be exposed to it, and I’m not exposed to it.

[Due to high valuations, elevated profit margins, and fiscal challenges, it is] hard for me to envision stocks being higher in 10 years.

Now, the reality is that Druckenmiller is exposed to this market. He owns a fair amount of Nvidia and Microsoft among other stocks.

So, perhaps a more accurate rewrite of his comment would be “I’m not exposed to this broad market. I’m being very selective in what I own.”

And that’s where we begin to pivot today’s Digest from bearish to bullish.

In this market, you don’t want ho-hum stocks littering your portfolio. You want to focus on stocks with earnings strength, primed to continue growing in today’s shifting economy.

But you do want to be invested today – absolutely. There’s simply too much strength out there not to be taking advantage of it.

We all know that Big Tech – most notably, the Magnificent Seven – have enjoyed enormous price run-ups over the last 12 months.

And we know that these Mag 7 stocks have a massive influence on the overall S&P due to their heavy weightings within the index.

So, what would happen to the red-flag ERP value if we used the S&P 500 Equal-Weight Index in our calculation rather than the traditional weight-averaged S&P Index?

Fortunately, Luke has crunched the numbers for us:

[The low ERP and its implied overvaluation for stocks] is driven almost entirely by a handful of Big Tech stocks.

The S&P 500 Equal-Weight Index trades at 18.7 times forward earnings, which is in line with its 10-year average, and the Russell 2000 trades at 32 times forward earnings, below its 10-year average.

This paints today’s stock market in a whole new light. And it underscores a point that we repeat regularly here in the Digest…

It’s not so much a “stock market” as it is a “market of stocks.”

The market is not one huge monolith that rises and falls in unison. It’s made up of thousands of different stocks that perform well and poorly at different times, for different reasons, and in different market environments.

In yesterday’s Digest we highlighted how all three of our expert analysts – Louis Navellier, Eric Fry, and Luke – believe that there are far better stocks for your portfolio here in 2024 than the Mag 7.

In that Digest, we went on to profile the opportunity in small- and mid-cap AI stocks. We also highlighted a string of 30%+ winners that Louis Navellier has locked-in in recent weeks – it’s more evidence that strong returns are possible in a low-ERP/high-CAPE market.

By the way, Louis’ gains are made possible in part thanks to his Quantum Cash system. He’s spent 40 years developing this market approach that helps him find select stocks that are poised to climb regardless of market conditions. You can learn more about his Quantum Cash system by clicking here.

Regular Digest readers know that I skewed bearish in 2023.

So, did that mean anyone reading my Digests missed out on last year’s explosive returns?

I hope not, because my repeated refrain was “mind your stop-losses but trade this market higher for as long as the bullishness is with us.”

At the end of the day, the ERP, CAPE, and every other indicator out there are just background noise if you’re in a surging stock.

Bullish momentum trumps everything.

So, here’s what that means, practically speaking…

Say you’re invested in a Mag 7 stock with a lofty PE, but you don’t want to sell. After all, that Mag 7 stock is still grinding higher.

Well, don’t sell. Continue riding it for as long as it climbs, but you should consider using a tighter stop-loss. Or perhaps you want to sell down part of your position today to lock in some profits and have less exposure to it.

A broad rule of thumb would be “the loftier the valuation, the tighter the leash” whether that’s through your chosen trailing stop-loss or a smaller position size.

But at the end of the day, if a stock is climbing, it’s doing its job for you. So, don’t interrupt it.

Bottom line: Yes, the typical stock doesn’t appear all that attractive today, but that doesn’t have to influence your portfolio.

Focus on the strength/weakness of your specific holdings and the bullish/bearish momentum of each position. Mind your stop losses and be aware of indicators that suggest “danger,” but ride the bullishness as long as it’s making you money.

That way, you can safely ignore bearers of bearish news.

Have a good evening,

Jeff Remsburg

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These days, it seems like the traditional tech companies are gaining more of an edge over the fintech pure-plays. As an investor looking to capitalize on the rise of digital payments and other fintech innovations, which includes everything from digital wallets to savings investing and even cryptocurrency investing, it’s worth broadening one’s perspective to encompass stocks that wouldn’t be necessarily viewed as a fintech play first and foremost.

As with most technological trends, there will be winners (share gainers) and losers. Let’s check in with three different ways to play fintech that could be winning bets.

SoFi Technologies (SOFI)

SoFi Technologies (NASDAQ:SOFI) is a wildly popular finance app that’s been incredibly popular among young people, like millennials, some of whom are not big fans of the big banks. At its lowest point, SOFI stock shed more than 80% before bottoming out and marching higher in 2023, thanks partly to hopes for lower interest rates.

Undoubtedly, the $7.47 billion company was ultra-sensitive to interest rates, given it only recently clocked in its first quarterly profit. With lower rates on the way, newfound momentum (it’s still down about 69% from its highs, though) following a solid Q4 earnings beat, and profitability in sight, it’s hard not to want to give the innovative neobank play the benefit of the doubt.

Since its late-2022 lows, SOFI stock is up around 77%. It’s been a turbulent ride since then, but many investors hope the company can explode higher over the coming years as growth meets better margins.

Block (SQ)

Block (NYSE:SQ) is another fintech play that’s been riding higher lately, now up 70% from its October 2023 lows. Like SoFi, Block is a high-growth play that could really use a handful of rate cuts as it attempts to balance growth with margin enhancement. As certain analysts turn their back on SOFI stock, many others are hiking their ratings on Block stock.

Recently, BTIG hiked SQ stock to Buy from Neutral, thanks in part to strength and growth prospects across its Square and Cash App platforms. Though Square, Square’s Point-of-Sales payments platform, has also been picking up traction of late, it’s tough to look past the robustness of Cash App as Block offers a growing range of services that go above and beyond just sending money to a friend for a lunch.

Cash App is a great place to bank, buy stocks and crypto, and even file one’s taxes. Undoubtedly, Cash App looks increasingly like a super app for those seeking to meet all their financial service needs in one place. That alone warrants a heftier multiple, in my opinion. At just shy of two times price-to-sales, SQ stock is definitely one of the most intriguing as it looks to add to its recent gains. This certainly earned a spot on our list of hot stocks.

American Express (AXP)

American Express (NYSE:AXP) is an old-time financial services company with a rich history that saw it shift from express delivery services (hence the firm’s name) to travelers’ cheques and, eventually, to credit and charge cards. With new fintech-flavored financial services offered by a broader range of firms, it appears that American Express (or AMEX) is evolving again to become more of a fintech firm.

Today, the stock’s at a fresh all-time high of around $210 per share. The latest surge (of around 7% in a session) was largely thanks to upbeat management guidance following what was otherwise an in-line quarter. As a part of the new guidance, AMEX expects revenue to come in at 9-11%. CEO Squeri also noted his “aspiration of revenue growth of 10% plus” for the near future.

With a solid growth profile enriched by younger new cardholders drawn in by Millennial-tailored perks and other services (think convenient installment-based payments), I find the 18.65 times trailing price-to-earnings multiple to be way too low for a firm that’s continuing to evolve for the modern era. Up ahead, I’d look for data analytics and more tech-driven financial services to draw in even more cardholders, especially from the Zoomer and Millennial generations. This and the other hot stocks we mentioned would be great additions to your portfolio.

On the date of publication, Joey Frenette owned shares of American Express. The opinions expressed in this article are those of the writer, subject to the InvestorPlace.com Publishing Guidelines.

Joey Frenette is a seasoned investment writer specializing in technology and consumer stocks. Contributing to the Motley Fool Canada, TipRanks, and Barchart, Joey excels in spotting mispriced stocks with long-term growth potential in a fast-paced market.

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Following COP28, where global leaders pledged to shift from fossil fuels to renewable energy, over half of the participating nations, including major oil producers like the UAE, committed to “phase down” or “phase out” oil production. This landmark agreement exerted immense pressure on the fossil fuel industry, making these three oil stocks vulnerable investments to offload before facing inevitable challenges amid evolving market dynamics.

Icahn Enterprises (IEP)

The recent trajectory of Carl Icahn’s investment venture, Icahn Enterprises (NYSE:IEP), has left investors in a predicament. Following a once robust dividend payout cut from $2 to $1 per share, the firm’s dividend yield has dramatically plunged, previously soaring above 25%. This reduction diminished its standing in the energy sector and echoed the repercussions of a troubling report by Hindenburg Research in May. The report accused the enterprise of engaging in practices akin to a Ponzi scheme, using new investor funds to support allegedly “unsustainable” dividends, casting a long shadow over its financial strategies.

Moreover, IEP’s stock has witnessed a steep 65.35% dip year-over-year. The third-quarter financials further accentuate the turmoil, with GAAP earnings per share of negative cent and revenue declining 10.3% year-over-year to $3 billion. Additionally, with negative net income for the past five consecutive years, the firm’s prospects for a swift recovery seem increasingly bleak, fostering investor skepticism about its future.

BP Prudhoe Bay Royalty Trust (BPT)

The BP Prudhoe Bay Royalty Trust (NYSE: BPT), anchored in Alaska’s prolific Prudhoe Bay oil field, has unfortunately cemented its position as one of the most precarious investments within its sector. The trust, managed by The Bank of New York Mellon, has announced yet another quarter without distribution. This marks the fourth consecutive quarter of no payouts, a direct consequence of oil prices failing to meet the threshold above the Trust’s escalating chargeable costs. This pattern underscores a grim trend, highlighting the trust’s struggle to navigate the volatile oil market.

Furthermore, BPT’s stock has plummeted by an alarming 77.82% in the past year, with a jaw-dropping decline of 98% over the past decade. Such numbers not only depict a harrowing picture for the trust but also starkly contrast with the sector’s broader financial health. When juxtaposed with the sector’s median revenue growth of negative 4.98%, BPT’s own downturn at negative 69.57% is markedly pronounced, underscoring the magnitude of its financial woes.

NCS Multistage Holdings, Inc. (NCSM)

NCS Multistage Holdings, Inc. (NASDAQ:NCSM) faces significant headwinds in the oilfield services industry, with a notable 35.52% plummet in stock value over the past year amid a sector-wide slowdown.

Adding to its troubles in early 2023, NCS Multistage had to earmark $17.5 million for a litigation provision due to a jury verdict related to damages from 2018 attributed to a product defect. This legal challenge not only strained its finances but also highlighted the operational risks of its business model.

Subsequently, by the third quarter of 2023, the company’s revenue fell to $38.3 million, down 22% year-over-year. This was a direct consequence of shrinking sales, particularly service revenues in North America and a decrease in international service revenues, slightly mitigated by increased international product sales. This period also saw rig counts decline by 6% in Canada and 15% in the United States, further stressing the broad challenges NCS faces in stabilizing its operations and finances.

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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There are quite a few winning stocks at 52-week highs that investors should continue to let run. The following three stocks may be at new peaks, but they have plenty of room to move higher still if you let them. That also means it’s not too late to buy these top-notch stocks and handsomely profit from them.

AbbVie (ABBV)

With AbbVie (NYSE:ABBV), investors are getting the excitement and growth potential of a small biotech but one that has the weight and gravitas of a stalwart pharmaceutical. The drugmaker’s stock is up 12% in 2024 after reporting solid earnings last week. They showed the loss of patent protection on its arthritis treatment Humira won’t be the devastating impact originally believed. ABBV stock is literally pennies away from setting a new all-time high.

Despite competition from biosimilars, Humira remains AbbVie’s largest source of revenue. It generated $3.3 billion in global sales, a 41% drop year-over-year. Yet AbbVie’s non-Humira portfolio turned in impressive quarterly results offsetting the sting of its lead drug’s decline. Skyrizi saw a 52% jump in global sales to $2.4 billion, Rinvoq was up 63% to $1.3 billion, and Vraylar soared 40% to $789 million.

AbbVie’s strength lies not only in its deep bench of billion-dollar drugs but also in a robust pipeline of therapies under development. That’s important because there is always new competition coming to market in biosimilars and generics. Cancer treatment Imbruvica, for example, generated $3.6 billion in sales last year, but that’s down 21% from 2022 as new drugs were released.

Sales will fall over the next few years as Humira fades but there are plenty more drugs in the wings. AbbVie also generates strong cash flows that support its dividend, which yields 3.6% annually.

Spotify (SPOT)

Streaming music leader Spotify (NYSE:SPOT) is another stock hitting a 52-week high after an impressive earnings report. Fourth quarter results benefited from double-digit revenue growth as both its ad-supported and premium services drove higher members and margins.

Monthly active users (MAUs) hit 602 million representing 23% year-over-year growth. The 28 million net additions surpassed Spotify’s guidance by 1 million MAUs. It had 236 million premium subscribers, up 15% from last year, and 379 million MAUs on its ad-supported channel, a 28% increase.

Spotify is the world’s biggest streaming music service. Though it’s not yet profitable, there is a good chance it crosses that threshold this year. The biggest hurdle it faces is how record labels will react to demands for music. It’s a variable beyond Spotify’s control. Three labels control 80% of all music licensing and hold large sway over pricing. It’s why Spotify’s move into podcasting is welcome. It allows for greater self-determination.

Of course, Spotify has the world’s biggest podcast personality in Joe Rogan. It just signed him to a new contract worth up to $250 million. The original $200 million contract that brought him to the platform shook the market but it’s paying off for the streamer. It’s why they signed him to a new multi-year deal. 

There may be some upper bounds that SPOT stock may not cross but it’s not near them yet. The 52-week high is only just the next leg higher.

American Express (AXP)

American Express (NYSE:AXP) rounds out our trio of stocks at 52-week highs. While its stock has been rising since late last year, the Federal Reserve didn’t announce any interest rate cuts at its meeting this week. While it might not raise rates anymore the central bank is in no mood to cut them either. It wants to keep rates elevated to contain inflation which is running at 3.4% currently.

That takes pressure off American Express, which will likely see its net interest income (NII) continue growing as a result. Falling rates could weigh on NII but that’s been pushed to the back burner until inflation approaches the targeted 2% level.

American Express is also enjoying stronger-than-expected credit quality, lower-than-expected net charge-offs and rising loan growth. Despite pursuing younger borrowers, which many thought might dint the credit card issuer, that hasn’t been the case. Of course, American Express still has a target demographic that’s wealthier than other card issuers so they tend to feel any financial pinch later. With the economy seemingly making the hoped-for soft landing, AmEx is performing above expectations.

That could slow later in the year as the Fed indicated it wants at least three rate cuts, assuming inflation complies. However, with a stock up 10% after just a month of trading and American Express looks like it has more room to run. If you are looking for stocks that hit 52-week highs, start here.

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

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

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Yet, the construction sector did show some growth in 2023, but that single digit growth came from inflation. That’s a double-edged sword. First, there’s only so much cost that companies can pass along. And second, elevated prices can cause would-be customers to delay new projects.  

Help may come from the Federal Reserve cutting interest rates. While the timing and scope of those cuts has yet to be determined, they could jump start an industry that’s poised for growth. 

In the meantime, government spending is likely to provide a catalyst for construction spending. Money from the Infrastructure Act started to make its way into the economy. That should be one catalyst for higher spending. Another will come from the Chips Act which encourages semiconductor manufacturers to onshore at least a portion of their manufacturing operations. 

All of that may make construction stocks appealing. Here are three that can satisfy an appetite for growth and value.  

KBR (KBR)

KBR (NYSE:KBR) provides scientific, technology, and engineering solutions to government and commercial customers around the world. The company’s two divisions are Government Solutions and Sustainable Technology Solutions. That should peak your interest.  

And when you dive a little deeper, you see that the company does business in many key areas that will drive construction spending in 2024. This includes space, aerospace and defense, not to mention renewable and sustainable energy solutions.  

Therefore, the company’s revenue and earnings are unremarkable. And its dividend yield of around 1% isn’t particularly exciting even though KBR has increased it in each of the last four years.  

But when you look ahead, the story gets more interesting. KBR is showing strong organic growth with a strong backlog of projects, currently over $21 billion between the two divisions. That’s significantly higher than the approximately $7 billion in revenue the company will post in 2024.  

With a valuation of 18.5x forward earnings, the stock is not currently pricing in the company’s forecast for 11.5% earnings growth. But, analysts believe it will and give the stock a $67.03 consensus price target that implies 25% capital appreciation.  

Howmet Aerospace (HWM)

One company’s pain is another company’s gain.

That could summarize the recent price action with Howmet Aerospace (NYSE:HWM). The company reported earnings in early January. The report coincided with the news that a Boeing (NYSE:BA) 737 Max 9 jet was forced to make an emergency landing shortly after an Alaska Air Group Inc. (NYSE:ALK) flight took off.  

Boeing is still reeling from the aftermath. But in that same timeframe, Howmet’s stock is up more than 8% and continues to push to new all-time highs. That must bring a smile to the face of analysts at Truist Financial (NYSE:TFC) who gave the stock a $74 price target after the earnings report.  

Howmet Aerospace forecasts 21.9% earnings growth that would take earnings from $1.78 to $2.17 a share. But at 33x forward earnings, the stock price is not accounting for that growth.  

Approximately 23% of HWM’s revenue comes from its commercial aerospace segment which supplies titanium products used in various components for Boeing and Airbus. That supports the company’s earnings outlook and room for the stock price to move higher.  

Weyerhauser (WY)

For many investors the housing sector is one of the first places your mind goes when you think about construction spending. Mine did, too. That’s a good reason to look at Weyerhauser (NYSE:WY). The company is one of the world’s leading lumber companies with 12.4 million acres of land open for logging in the United States. 

However, it’s not hard to see how Weyerhauser would be affected by inflation and high interest rates. Nevertheless, WY stock has been trading in a defined range for about a year. It seems that the strength in the homebuilding sector has put a floor on the stock. At the same time, the stagnant housing market is keeping a ceiling on WY stock as well. 

But if the Federal Reserve, as expected, lowers interest rates, it may jumpstart the housing sector. That would likely be enough to push the stock above the $35 level that has been acting as resistance and close to the consensus analyst price target of $37.88. 

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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While investors fear that the artificial intelligence hype may be overblown, there’s still plenty of reason to remain bullish. After all, artificial intelligence is just starting to change life as we know it — another solid catalyst for some of the best AI stocks.

Let’s look at seven of the best AI stocks that could double this year.

Nvidia (NVDA)

By far, one of the best AI stocks to own is Nvidia (NASDAQ:NVDA). At the moment, it trades for about $625, with a target price of $1,100. That’s less than double, but it did start the year at $481.68.

Nvidia showed investors in 2023 that analysts –  even bullish ones –  underestimate its potential. All of 2023 was marked by extraordinary earnings beats from Nvidia. For example, in each of the last three quarters beginning in April of 2023, the company produced EPS and revenue results that exceeded estimates by double-digit percentage margins.

Nvidia benefits from having the largest and most capable supply chain in the AI industry per its admission. Yet despite its strengths, it continues to struggle to fulfill demand for its AI chips. That has led to incredibly high prices for its products. and with its h200 chips scheduled to be launched this year, that beneficial business mix is likely to persist. Those strong Dynamics continue to suggest that NVDA shares have all the potential to double this year.

Advanced Micro Devices (AMD)

Advanced Micro Devices (NASDAQ:AMD) Is Nvidia’s primary challenger for the booming demand across enterprises for AI chips. 

Recently, it was revealed that Microsoft and Meta Platforms (NASDAQ:META) gobbled up 60% of the 500,000 chips sold by Nvidia. Those firms are on record stating that they will switch to AMD as their chip provider. AMD’s M1 mi300x chips give the company a real shot at dethroning Nvidia and will certainly chip away at its lead if nothing else.

CEO Lisa Su believes in the continued opportunity in AI data centers. She sees the opportunity ballooning to $400 billion by 2027. According to NewStreet analyst Pierre Ferragu, even if that opportunity only reaches $200 billion, it could result in a tripling quadrupling of AMD’s price. 

If rapid AI data center adoption continues to materialize, many believe AMD is the strongest way to benefit from that growth. Whether that results in a doubling of share price in 2024 remains to be seen But the future is indeed very bright for AMD.

UiPath (PATH)

Artificial intelligence continues to fundamentally change the future of workplace productivity. UiPath‘s (NYSE:PATH) software helps enterprises to streamline repetitive tasks. For example, RPA technology helps to reduce the time required when filling out a repetitive legal document as one example. 

The company is particularly well regarded because its fundamentals are improving as demand for its technology grows. During the third quarter, revenues increased by 24% to $326 million. Sales are expected to increase to approximately $386 million during the fourth quarter. 

Moving forward, generative AI is likely to play an increasing role in UiPath’s growth. The company will continue to grow and challenge other software firms including Salesforce (NYSE:CRM). When it comes to workplace automation and efficiency increases, UiPath is definitely a name to consider in 2024 and beyond.

SoundHound AI (SOUN)

SoundHound AI (NASDAQ:SOUN) is a stock to consider for. conversational AI.

Conversational AI refers to voice recognition tools that have wide application in industries from automobiles to fast food to banking and more. The company has partnered with firms across many of those Industries including Stellantis (NYSE:STLA), for example. Its technology is also used across the fast food industry with partners across many smaller but well-known brands.

Shares currently trade for $1.75 and have a low target price of $3.60. Those prices range to a high of $5 so there’s some real potential in SoundHound AI. The topic of conversational AI as an investment opportunity will continue to grow particularly because it has such important implications for firms.

Palantir (PLTR)

Palantir (NYSE:PLTR) doubled throughout 2023 and continues to be a stock to watch in 2024.

Sure, Palantir continues to be maligned by much of the investment world. Specifically, Jefferies believes that the AI hype surrounding the firm is overblown. That assertion led it to downgrade its target price for Palantir to $13. 

However, PLTR has plenty of bulls on its side, too. Many note the company has been delivering several quarters of profitability. Plus, its AI tools are being used by the U.S. military and government, which should continue to serve as a strong catalyst moving forward.

Microsoft (MSFT)

Microsoft (NASDAQ:MSFT) rocketed from $250 to $400 over the last 12 months. Forecasts suggest that those prices could rise to $600 throughout 2024. That is of course not a 100% return, and instead closer to 50%. 

However, Microsoft has emerged as one of the leading two AI firms overall and it’s hard to discount it and its continued potential. The markets aren’t particularly impressed by the company’s fourth quarter earnings release. However, 18% Top Line growth is impressive particularly in consideration of Microsoft’s size.

CEO Satya Nadella notes that the company has implemented AI throughout its tech stack. Perhaps more importantly, Microsoft’s Cloud revenue increased by 24% during the quarter. 

The marriage between cloud computing and artificial intelligence is of particular interest to investors and those interested in the wider economy. Microsoft’s Azure Cloud is one of the biggest competitors in that regard. The company is incredibly strong in AI Cloud applications and will continue to thrive due to its early investment in OpenAI.

Baidu (BIDU)

Baidu (NASDAQ:BIDU) is China’s leading internet search provider and as such often draws comparisons to Google (NASDAQ:GOOG, GOOGL). Both firms continue to invest heavily in AI. That investment promises to result in stronger share prices for both moving forward.

In fact, Baidu’s AI investment is already bearing fruit. In the third quarter, the company provided unexpectedly strong results due to AI. Sales and earnings were higher than expected which was particularly welcomed by the firm given the slowdown currently affecting the Chinese economy.

Company management reiterated what so many other tech firms are stating in regard to AI: it will continue to invest heavily in generative AI in order to build out its artificial intelligence platform’s capability. 

As negative sentiment continues to swirl over Chinese stocks Baidu has emerged as a strong contrarian opportunity. China’s tech leaders are very analogous to those in the United States. both will continue to seize the opportunity in AI through massive investment. That investment should help those large leading firms further consolidate their dominance over their respective geographies.

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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Investors often gravitate toward undervalued blue-chip stocks when they don’t want to take as many risks. While some blue-chip stocks leave money on the table relative to growth stocks, other blue-chip stocks still have plenty of growth left.

Some undervalued stocks combine decent valuation metrics with double-digit revenue and earnings growth rates. These are some of the most undervalued blue-chip stocks to consider. 

Amazon (AMZN)

Amazon (NASDAQ:AMZN) delivered earnings that got many investors excited. The company reported 14% year-over-year (YOY) revenue growth and exceeded $10 billion in net income to close out 2023.

Two of the corporate giant’s top segments were third-party seller services and advertising services. These segments achieved 20% and 27% YOY revenue growth, respectively. 

Amazon’s artificial intelligence offers have been picking up momentum. The company’s CEO, Andy Jassy, mentioned rising demand and hinted AI could have a more pronounced role in future earnings reports.

“AWS’s continued long-term focus on customers and feature delivery, coupled with new genAI capabilities like Bedrock, Q and Trainium have resonated with customers and are starting to be reflected in our overall results,” Jassy stated in the press release.

Jassy also mentioned the advertising business and expressed optimism about the company’s new business ventures. Amazon stock has more than doubled over the past five years and more gains seem likely for long-term investors.

Alphabet (GOOG,GOOGL)

Alphabet (NASDAQ:GOOG, NASDAQ:GOOGL) has delivered a 47.23% gain over the past year and has a 5-year gain of 168.84%. The company has been doing a good job of diversifying money away from its advertising segment while continuing to grow in the industry.

Ad revenue increased by 11.0% YOY in Q4 2023 while Cloud revenue outpaced it with a 25.7% YOY growth rate. Google Cloud recently became profitable and is operating with better margins. This development will help Alphabet command a lower P/E ratio in the coming months. 

Growth rates have been accelerated as a dismal 2022 is far off in the rearview mirror. The company’s Q4 revenue growth rate exceeded its revenue growth rate for the full year of 2023.

The company’s “Other Bets” segment has tremendous top-line growth but operates at a net loss that has narrowed YOY. Google Cloud generated enough profits to offset the net losses from the “Other Bets” segment.

Broadcom (AVGO)

Broadcom (NASDAQ:AVGO) is one of the few stocks that offer high appreciation, dividend growth and a decent valuation. Most stocks only give you one of those three traits, and a few of them offer two of them.

Shares have almost doubled over the past year and have gained 370% over the past five years. Growth stems from the company’s semiconductor chips and enterprise software products. Its AI chips and the recent acquisition of VMware are catalysts for these high-growth verticals.

Even with the substantial gains over the past five years, Broadcom still has a 1.63% dividend yield. Broadcom closed out fiscal 2023 with a 14% dividend increase compared to the previous quarter. 

The company has regularly increased the dividend by at least 10% per year for several years. Broadcom has raised its dividend for 13 consecutive years ever since its first dividend distribution in fiscal 2011. The quarterly dividend per share was $1.02 back in 2017. Now, it’s $5.25 per share every quarter.

Broadcom trades at a forward P/E ratio of 26 which is solid for a company with its growth potential. With other chipmakers reporting strong earnings, investors should feel excited about Broadcom’s next earnings report.

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

Marc Guberti is a finance freelance writer at InvestorPlace.com who hosts the Breakthrough Success Podcast. He has contributed to several publications, including the U.S. News & World Report, Benzinga, and Joy Wallet.

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It’s important to note that speculative activity is high among undervalued penny stocks. Then again, we also have to consider that not all penny stocks have poor fundamentals. After all, there are some quality ideas that can deliver multi-bagger returns.

I would, however, refrain from considering more than 10% to 15% exposure to undervalued penny stocks. It’s a high-beta bet and considering the global macroeconomic scenario, I would remain overweight on blue-chip and high-quality growth stocks instead. That said, here are a few of the top, most undervalued penny stocks to bet on.

Archer Aviation (ACHR)

Archer Aviation (NYSE:ACHR) is a deeply undervalued name among flying car penny stocks. My view is based on the potential growth in the next five years with the commercialization of eVTOL aircraft due in 2025. Helping, Archer announced a collaboration under the NASA Space Act Agreement. This partnership will focus on achieving the highest levels of battery cell safety and systems for Advanced Air Mobility and space applications.

It’s also worth noting that Archer has stitched partnerships for expansion in the UAE and India in 2026. With strong collaborations, the company is positioned for stellar growth once certifications are received.

From a backlog perspective, Archer has orders worth $142 million from the U.S. Air Force. Further, in November 2023, the company won a contract worth $500 million from Air Chateau International for 100 Midnight aircraft. I expect the order backlog to swell further this year.

Blink Charging (BLNK)

Blink Charging (NASDAQ:BLNK) fell by nearly 80% in the last 12 months. However, I do expect a strong rally from deeply oversold levels backed by positive business developments. With short interest in the stock at 37%, a massive short-squeeze rally seems likely.

For Q3 2023, Blink Charging reported stellar revenue growth of 152% on a year-on-year basis to $43.4 million. Further, the Company reported a 167% increase in gross profit to $12.8 million.

With significant room for penetration in the U.S. and Europe, revenue growth is unlikely to be a concern. The U.S. market alone is expected to require an investment of $100 billion by 2040 to boost the EV charging infrastructure.

However, the good news is that Blink Charging expects to deliver positive adjusted EBITDA by December 2024. It’s likely that EBITDA margin will continue to expand in the next few years with operating leverage.

Lithium Americas (LAC)

Lithium Americas (NYSE:LAC) fell 36% for year-to-date. This does not come as a surprise with sentiments remaining negative for lithium. However, I am bullish on LAC stock for the long-term considering the asset potential.

As an overview, Lithium Americas has ownership of the Thacker Pass asset. It’s the largest known measured and indicated lithium resource in North America. The asset has a mine life of 40 years with an after-tax net present value of $5.7 billion. With an average annual EBITDA potential of $1.1 billion, Thacker Pass promises to be a cash flow machine.

It’s worth noting that General Motors (NYSE:GM) is a strategic partner in the asset and has committed to invest $650 million. Further, GM has an offtake agreement for phase one production for ten years. This ensures clear cash flow visibility once production commences.

Bitfarms (BITF)

For investors bullish on Bitcoin (BTC-USD), Bitfarms (NASDAQ:BITF) is an attractive pick. The Bitcoin miner looks undervalued even after a rally of 100% in the last 12 months. With significant expansion plans, the company is positioned for stellar revenue and cash flow growth.

To put things into perspective, Bitfarms reported a hash rate capacity of 6.5EH/s as of January. The Company is targeting a capacity of 12EH/s in the first half of the year. Capacity is further expected to expand to 21EH/s by the end of the year. With visibility to triple capacity, the growth outlook is robust.

It’s also worth noting that Bitfarms reported a liquidity buffer of $117 million as of December 2023. Further, the company expects to be debt-free this month. Therefore, financial flexibility is high for financing aggressive growth. If Bitcoin trades at new all-time highs this year, Bitfarms will generate ample cash flows to pursue the next leg of expansion in 2025.

Hecla Mining (HL)

Hecla Mining (NYSE:HL) is an interesting bet among precious metal penny stocks to buy. With a strong jobs report for January, HL stock has corrected as expansionary policies might not come relatively soon. However, the correction is a good accumulation opportunity with the Company positioned for healthy production growth.

For 2023, Hecla announced silver production of 14.3 million ounces. With the restart of operations at Lucky Friday and Keno Hill ramp-up, production growth is likely to be robust. Hecla has guided for 20 million ounces in silver production by 2025. If this is associated with upside in gold and silver prices, the Company will be positioned to report healthy free cash flows.

From a financial perspective, Hecla reported a liquidity buffer of $165 million as of Q3 2023. Further, with a net leverage ratio of 2.2, the Company has high financial flexibility. This is important to mention as Hecla has pursued acquisition driven addition to its portfolio of assets.

Blade Air Mobility (BLDE)

Blade Air Mobility (NASDAQ:BLDE) has been weak in the last few quarters. However, fundamentals have improved and the stock looks undervalued considering the growth outlook.

As an overview, Blade Air is a provider of air transportation alternatives to the congested ground routes in the United States. The Company has an asset-light business model and growth seems to be gaining traction.

For Q3 2023, the Company reported 56% revenue growth on a year-on-year basis to $71.4 million. It’s important to note that the Company achieved adjusted EBITDA profitability during the quarter. It’s likely that EBITDA margin expansion will sustain in the coming quarters on the back of operating leverage.

I must add that that the Company’s medical segment revenue growth has been healthy. Blade Air is involved in the air transportation of human organs for transplant in the United States. Being a necessity, this segment is likely to continue growing at a strong pace.

Overall, the business model is unique and there is increasing demand for air transport. BLDE stock is a potential multibagger from current levels of $2.9.

Solid Power (SLDP)

Solid Power (NASDAQ:SLDP) is working towards the commercialization of solid-state batteries. If the Company can achieve success, I believe that SLDP stock can deliver 10x or 20x returns from current levels. Without doubt, it’s a high-risk bet, but some exposure can be considered after a correction of 55% in 12 months.

In terms of business progress, Solid Power shipped its first A-1 EV cell to BMW (OTCMKTS:BMWYY) to formally enter automotive qualification. If the validation testing yields positive results, SLDP stock is likely to skyrocket.

In another recent development, the Company has deepened its partnership with SK On. Under the agreement, Solid Power will install a pilot cell production line for SK On at the Korea facility. SK On will also be using Solid Power’s cell technology for research and development and to produce batteries. This agreement provides revenue visibility besides creating a parallel research and development platform.

Penny Stocks

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, 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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For example, growth stocks demand greater financial and fundamental figures than in the zero interest rate policy (ZIRP) era. Back then, any company promising massive future gains couldn’t get enough investor cash, no matter its underlying financial strength. But today, investors are weighing choices more carefully and avoiding speculative stocks to a greater degree.

The same holds for dividend stocks, but somewhat in reverse. Whereas investors want greater stability in growth picks, they’re looking for long-term expansion from their value picks. We can still snag some short-term Treasuries and generate a 5%+ yield. Income-producing stocks must pick up the slack and offer a higher yield or long-term capital gain opportunities or, even better, both.

Let’s delve into three must-buy dividend stocks investors won’t want to miss out on this month.

Realty Income (O)

Realty Income (NYSE:O) consistently ranks at the top of the list of must-buy dividend stocks.

Income and dividend investors absolutely love it, thanks to its Dividend Aristocrat status, monthly distributions, and attractive 5.75% yield. Despite a nearly 20% decline over the past year, Realty Income’s fundamental strength remains unchanged. It presents a prime buying opportunity for long-term investors seeking to compound wealth.

The company maintains a high occupancy rate of more than 98% across its properties, with 80% of its retail tenants operating in recession-resistant sectors. Realty Income’s triple-net lease model offloads all operational risks and costs, including those for property maintenance, onto the tenants. This strategy insulates the company from the cost pressures associated with rising material and labor costs. Also, the company benefits from long-term leases, averaging over 15 years. Further, its current active average lease period remains close to 10 years.

Also, Realty Income is exploring growth opportunities, specifically via a new European sale-leaseback agreement with French company Decathlon SE. The combination of growth potential, low relative per-share price, and dividend aristocracy makes Realty Income one of the best must-buy dividend stocks on the market today.

H&R Block (HRB)

We’re in the middle of tax season, and H&R Block (NYSE:HRB) stands out among must-buy dividend stocks. As a cyclical company, it builds year-round revenue streams.

In a strategic pivot to mitigate the tax sector’s seasonal fluctuations, HRB introduced a mobile banking service called Spruce. This venture proved to be a hit, and HRB’s most recent filing reports more than $456 million in net customer deposits and 316,000 total customer signups. And, HRB is happy to explore new tech angles to efficient tax filing. They are developing an AI-powered tax assistance product in partnership with Microsoft (NASDAQ:MSFT).

HRB’s must-buy dividend stock status is reinforced by its total yield, which sits at a whopping 11.61%. This remarkable yield is supported by a modest 34% payout ratio, suggesting that HRB retains a significant portion of its earnings for growth initiatives while still generously rewarding its shareholders.

AT&T (T)

Like Realty Income, AT&T (NYSE:T) is a long-standing must-buy dividend stock, despite its 2022 fall from Dividend Aristocrat status. And, AT&T sets itself apart with a forward-looking, innovative perspective even as it extends its market maturity.

The company is a key investor in AST SpaceMobile’s (NASDAQ:ASTS) ambitious project to provide satellite-based cellular service. They aim for a 2024 commercial debut. While it may not be an overnight game-changer for AT&T, the investment and support indicate AT&T’s willingness to test new expansion avenues in a bid to remain competitive in a saturated market.

In a late-January earnings release, AT&T’s results missed some earnings targets but showcased robust growth sectors. A notable highlight is the nearly 4% year over year (YOY) growth in wireless service revenue. This point demonstrates the company’s effective navigation through economic challenges to retain and grow its subscriber base through strategic pricing. This is underscored by AT&T’s impressive addition of 526,000 postpaid phone subscriptions. The latte exceeds the anticipated 487,500, defying the odds in a highly competitive market.

Despite some skeptics labeling it a yield trap, AT&T maintains a dividend yield of 6.56% with a sustainable payout ratio of 56%. Therefore, it continues to be an attractive stock for dividend-focused investors.

On the date of publication, Jeremy Flint held no positions in the securities mentioned. 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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Given this data, it seems as though investors’ phobia of small-cap companies that are not yet profitable, which took a highly justified hiatus late last year, has returned. Consequently, momentum traders and momentum investors should look to buy large-cap, highly profitable stocks whose issuers have strong balance sheets. Here are three strong buy large-cap stocks for them to consider.

IBM (IBM)

Driven by strong demand for its AI software and services, as well as its hybrid cloud offerings, IBM (NYSE:IBM) reported impressive fourth-quarter results on Jan. 25.

Specifically, its income from continuing operations climbed 14.5% year-over-year to $3.285 billion. Moreover, Big Blue’s free cash flow surged 1.7% year-over-year to $6.09 billion. Finally, the firm provided 2024 free cash flow guidance of $12 billion, well above Bank of America’s (NYSE:BAC) estimate of $11 billion to $11.5 billion.

IBM’s AI business is growing rapidly, as its bookings related to the technology soared 100% in Q4 versus Q3. With many companies quickly integrating AI and turning to IBM for help with doing so, the phenomenon should continue to provide a major positive catalyst for the firm’s profitability and for IBM stock going forward. This raid growth makes IBM one of the market’s strong buy large-cap stocks.

Broadcom (AVGO)

Broadcom (NASDAQ:AVGO) develops computer chips for many different products, and it’s also a leader in the Wi-Fi and server storage sectors. Like IBM, AVGO has been a major beneficiary of the AI Revolution.

Indeed, JPMorgan (NYSE:JPM) recently began coverage of AVGO stock with an “overweight” rating, based on the strength of its AI chips business. Specifically, the bank expects the firm to benefit from strong demand for its chips used by datacenters which are both creating AI and facilitating much of its utilization at this point.

Moreover, Broadcom’s partnerships with both Meta (NASDAQ:META) and Alphabet (NASDAQ:GOOG, NASDAQ:GOOGL) should also boost its top and bottom lines in the medium-term and the long-term.

Also noteworthy is that AVGO has acquired Vmware, which should benefit from its alliance with the largest AI chipmaker, Nvidia (NASDAQ:NVDA). Additionally, VMware has made Broadcom less dependent on its four largest customers, decreasing the risk that it faces.

General Motors (GM)

General Motors (NYSE:GM) stock surged on Jan. 30 after the automaker delivered fourth-quarter results that came in significantly above analysts’ average estimates. While the shares have largely tread water since then, they do appear to have formed a bullish reverse head-and-shoulder pattern this month.

What’s more, as we get closer to the U.S. Federal Reserve cutting interest rates, I believe that the shares are likely too pop. That’s because lower rates makes buying vehicles much cheaper for the vast majority of purchasers who take out loans on them.

Another factor that could boost GM this year is the rapid winding down of the work-from-home phenomenon. As many more Americans resume commuting five days per week, the demand for GM’s vehicles should surge.

Bank of America has a $75 price target on the shares, far above their current level of around $39.

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

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

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In preparation for this event, I wanted to share an article written by Luke, where he discusses the real threat that brand-new AI is presenting. You can check it out below…

Artificial intelligence (AI) has experienced a meteoric rise, sparking excitement for some and posing an existential threat for others.

Will AI usher in an era of unprecedented prosperity and abundance, or will it dominate society, rendering humans obsolete?

Currently, these questions are merely theoretical, suitable for discussion at dinner parties during the holiday season. After all, we will not know the actual answers for decades. True artificial general intelligence (AGI), the level of AI that can perform any task a human can but more efficiently, remains far from reality.

Or does it?

The Breakthrough at OpenAI

A few years ago, the consensus was that AGI would not be achieved in our lifetimes.

Earlier this year, the consensus shifted, with some experts believing AGI was about 10 years away.

Now, technology experts such as Tesla (TSLA) CEO Elon Musk and Nvidia (NVDA) CEO Jensen Huang think AGI is just three to five years away.

Notice the trend?

The timeline to AGI is becoming increasingly shorter, and it is now believed that the level of artificial intelligence that could either save or destroy humanity may be only a few years away.

That is terrifying. If you are already spooked by that sobering reality, you may want to stop reading now.

Because new reports actually suggest that AGI may already be here.

Reuters recently reported that OpenAI, the creator of ChatGPT, discovered an AI breakthrough so significant that its own researchers said it could “threaten humanity.”

While the details are scarce, the company has confirmed that the model is real.

Reportedly, this model has learned to use synthetic data to reason through complex mathematics and science problems. If true, this is a breakthrough that experts recommend could be the most significant leap yet toward true AGI.

Is it time to sound the alarms?

I think so.

The Upcoming Divide

I consider myself an “AI Optimist.” I believe that artificial intelligence, with its ability to augment productivity, will usher in an era of unprecedented economic prosperity and abundance.

I am very confident in this belief.

However, I understand that every situation has its drawbacks. In contrast to the AI-driven prosperity and abundance, there is a grim outlook for individuals and businesses that do not embrace artificial intelligence.

The AI Boom is already creating a divide between the “haves” and the “have-nots.” Take Wall Street, for example. Numerous AI stocks increased by hundreds of percent in 2023. In comparison, the rest of the market, as measured by the S&P 500 Equal Weight Index, barely scraped by 10%.

To put it another way: AI stock investors are making money hand over fist, while other investors are not.

I am confident that this is the new norm, and that artificial intelligence will divide society into two groups.

On one side are investors and businesses who embrace AI, invest in it, and use it to enhance productivity…

On the other side are those who neglect AI, do not invest in AI stocks, and fail to adopt the technology in their daily lives. I believe these individuals are setting themselves up for failure for the next several decades.

Very soon, AGI will significantly and irreversibly accelerate this division.

That is why OpenAI’s breakthrough should terrify you.

The Final Word

If you are not on the right side of the AI Boom, you will be stuck on the losing side, potentially forever.

The time to act is now.

Because this new breakthrough could accelerate an unprecedented AI arms race, dramatically enhance business productivity, and potentially trigger a surge in specific AI stocks.

This pivotal shift, which I’ve dubbed the “AI Endgame,” presents a window of opportunity that savvy investors cannot afford to miss. To get ahead of this upcoming endgame, it is imperative to act swiftly – before Feb. 29. 

Position yourself at the forefront of this wave to capitalize on the explosive opportunities that lie ahead.

Sincerely,

Luke Lango

Editor, InvestorPlace

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At the same time, you’re not going to get rich just by exclusively betting on enterprises that everybody else believes in. Put another way, the reason why blue chips represent stable investments is because their businesses are relatively predictable.

However, you pay a price for that predictability with limited upside. On the other hand, you don’t quite know what you’re going to get with undervalued stocks under $5.

To minimize this risk, I explored relevant enterprises where the market either does not recognize the fundamental catalysts or are severely underrating the upside potential. Either way, you can end up the winner with these contrarian but compelling ideas for undervalued stocks under $5.

Sibanye Stillwater (SBSW)

Although a terribly risky idea, metals and mining specialist Sibanye Stillwater (NYSE:SBSW) could be worth a look for speculators seeking undervalued stocks under $5. Still, let’s get the bad news out of the way first. For one thing, the market performance is absolutely horrible. Over the past 52 weeks, SBSW lost almost 57% of equity value. Fundamentally, Sibanye’s challenges centered on reduced metal prices and operational challenges.

With commodities priced in dollars, it didn’t help that the Federal Reserve embarked on an interest-rate-hiking campaign. Subsequently, the hawkish pivot contributed to demand containment for core industrial metals like platinum and palladium. Factor in security costs related to protecting mines against illegal and criminal activities and Sibanye shareholders didn’t have a great time last year.

However, it’s possible that SBSW’s lowly forward earnings multiple of 7.97X – on paper lower than about 67% of the competition – could be credible. With harsh winter conditions crimping electric vehicle drivers, combustion-powered cars might see a relevance surge. And that could lead to increased palladium demand due to their use in catalytic converters.

Yes, Sibanye is risky, no doubt about it. However, it also has an underappreciated narrative.

Ammo Inc (POWW)

Obviously, with a name like Ammo Inc (NASDAQ:POWW), we’re going to touch onto some controversial subject matter. However, I’d like you to bear with me as the appropriately named ticker POWW offers a viable idea for undervalued stocks under $5. As a manufacturer of ammunition and an owner of a popular firearms-related online marketplace, Ammo addresses a massive retail market.

As the Pew Research Center pointed out recently, guns are “deeply ingrained” in American society. Unsurprisingly, about four in 10 U.S. adults say they live in a household with a gun. And that includes 32% who say they own one. Further, the social issues and anxieties stemming from the COVID-19 pandemic sparked a boom in firearm sales.

Like it or not, someone has to “feed” all those guns. Politically, if President Joe Biden wins reelection, one of his talking points will surely zero in on gun control. That should catapult gun sales and in turn provide a downwind benefit to AMMO stock.

With analyst backing and a very modest forward earnings multiple of 11.35X, POWW makes a tempting case for undervalued stocks under $5.

Broadwind (BWEN)

A precision manufacturer of structures, equipment, and components for clean technology and other specialized applications, Broadwind (NASDAQ:BWEN) provides technologically advanced high-value products to customers with complex systems and stringent quality standards that operate in energy, mining, and infrastructure sectors. Its capabilities include but are not limited to functions such as heavy fabrications, welding, metal rolling, and coatings, among many others.

Fundamentally, as the clean and renewable energy sector continues to expand, Broadwind should benefit. Yes, the company caters to enterprises in the traditional hydrocarbon ecosystem. However, much of the infrastructure is built out. On the clean and renewable side, however, it’s a relatively new field. Moreover, should President Biden win a second term, the push for green solutions could help lift BWEN.

That’s really what analysts are anticipating with their unanimous strong buy view. As well, the average price target of $6 implies 150% upside potential. To be fair, investors must consider the 52-week loss of 47%. Still, with the aforementioned fundamental relevance combined with a modest trailing-year earnings multiple of 14.12X, Broadwind is one of the undervalued stocks under $5 to gamble on.

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

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

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Recently, I shared my step-by-step account of trading Biomea Fusion (NASDAQ:BMEA) options. One element that I discovered was the intense emotions that are part and parcel of involvement in the derivatives market. Glued to the trading desk, I was zeroed in on every blip and every dip. I also agonized in the closing hours of the session whether I should stay or leave.

With long-term stocks to buy, you don’t think about that stuff at all. Instead, you’re typically dealing in a timeframe of years, not minutes or even seconds. That means you can perform your due diligence, sit back and let others run around with their hair on fire.

Investing doesn’t have to involve unnecessary drama. If you’re feeling this mood, these are the long-term stocks to buy and hold.

UnitedHealth (UNH)

As a healthcare stalwart focused on insurance and other key services, UnitedHealth (NYSE:UNH) isn’t going anywhere. Fundamentally, it’s one of the top long-term stocks to buy and hold indefinitely because of myriad and burgeoning relevancies. Yes, everyone needs care, which keeps the lights on and then some at UnitedHealth. However, the company will also benefit from longstanding demographic trends.

Following the end of World War II, the U.S. experienced a massive population growth – the baby boom. However, humans get older and when they do, they increasingly require care. Further, the focus on future political administrations in dealing with various healthcare reforms should be a net benefit to UnitedHealth. Again, aging is an inevitability and that affords UNH a level of permanent relevance.

Unsurprisingly, hedge funds understand this concept very well. Since the fourth quarter of 2022, these major players’ exposure to UNH increased by over 27%. Moreover, TipRanks characterizes the underlying confidence signal as “very positive.”

Lastly, analysts rate UNH a consensus strong buy with a $593.13 price target, implying over 14% upside.

Western Digital (WDC)

A computer drive manufacturer and data storage enterprise, Western Digital (NASDAQ:WDC) has been having a quietly robust year. In the past 52 weeks, shares gained almost 36%. Part of the sentiment surrounds the company’s decision – announced late October last year – to split into two independent public enterprises. Both businesses could be exciting and offer significant implications for future applications.

For example, Western Digital’s enterprise-level solid-state drives (eSSDs) can help accelerate data center workloads and achieve maximum throughput. Further, as artificial intelligence protocols expand in scale and scope, computers will almost certainly require more storage and memory needs. To that end, Western Digital recently announced that it will invest billions into the development of cutting-edge memory chips for advanced innovations such as generative AI.

Not shockingly, hedge funds’ sentiment toward WDC is “very positive.” Per TipRanks, their collective exposure to WDC increased by 73.5% between Q1 and Q3 of last year. Analysts also peg shares a moderate buy with a $66.76 price target. Thus, it’s one of the long-term stocks to buy.

Occidental Petroleum (OXY)

At first glance, the idea of targeting hydrocarbon specialist Occidental Petroleum (NYSE:OXY) as one of the long-term stocks to buy seems odd. After all, electric vehicles are the future – and renewables and zero emissions and all that sweet jazz. However, the reality is that the world runs on oil. Part of that comes down to science. Simply put, fossil fuels command much higher energy densities than other forms of energy.

So, it very well might be that the world may continue to run on oil for a long time. After all, why would the U.S. Energy Information Administration fret about the possibility of running out of oil if wind turbines and solar panels represent our future? As my fellow elementary school students used to say when they held up three fingers: read between the lines.

And that’s exactly what the hedgies are doing, reading between the lines. Exposure to OXY among these top investors has increased substantially since Q4 2021. And insider sentiment is positive, with Warren Buffett’s Berkshire Hathaway (NYSE:BRK-B) recently buying up shares.

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

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

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Recently, news broke that King Charles III is receiving treatment for cancer. Sure enough, well wishes from around the world poured in because Britain’s monarch and head of state reminded us of the frailty of the human experience. If one of the most powerful people on the planet can get cancer, it demonstrates that this disease cares not for any of the artificial barriers that we hold so dear.

Stated differently, cancer doesn’t discriminate. Whether rich or poor, privileged or underserved, if it wants to strike, it will do so. And that goes for other diseases and conditions. The good news? Innovations are sprouting all the time, bringing light to the shadows. With that, below are compelling biotech stocks that are fighting America’s deadliest diseases.

Bristol Myers Squibb (BMY)

One of the premier biotech stocks to buy, Bristol Myers Squibb (NYSE:BMY) manufactures prescription pharmaceuticals and biologics in several therapeutic areas. One of its specialties involves blood cancers such as leukemia or lymphoma. According to the Leukemia & Lymphoma Society, an estimated combined total of 184,720 people in the U.S. are expected to be diagnosed with hematological malignancies.

To address this devastating class of diseases, Bristol Myers Squibb has two drug candidates undergoing Phase 1 trials. As well, it has several other drugs in a similar stage of safety trials for specific conditions such as acute myeloid leukemia (AML).

On a business level, BMY commands a large addressable market. According to Data Bridge Market Research, the global blood cancer therapeutics sector reached a valuation of $43.71 billion in 2021. Further, by 2029, the segment should hit $89.68 billion by 2029. If so, that would represent a compound annual growth rate (CAGR) of 9.4%.

Analysts expect good things out of BMY, rating shares a consensus moderate buy with a $57.79 average price target.

Gilead Sciences (GILD)

Another top-flight name among biotech stocks, Gilead Sciences (NASDAQ:GILD) has been at the forefront of groundbreaking medical research. In full disclosure, Gilead has been incredibly volatile this year, losing about 11% of equity value. Still, that might be a discount for long-term investors. One of the company’s core relevancies centers on developing antiviral drugs used in the treatment of HIV/AIDS.

According to government statistics, approximately 1.2 million people in the U.S. have HIV. What’s concerning is that about 13% of these individuals don’t know it and therefore require testing. Further, health agencies have described the situation as an epidemic. To address this growing need, Gilead researchers have developed 12 HIV medications, including the first single-tablet regimen to treat HIV.

Per Grand View Research, the global HIV therapeutics market size reached a valuation of $10.33 billion in 2022. By 2030, the sector could hit revenue of $11.34 billion. Overall, analysts peg GILD a consensus moderate buy with an $88.69 average price target. The high-side target lands at $115, implying almost 55% upside potential.

Biogen (BIIB)

Another large-capitalization enterprise, Biogen (NASDAQ:BIIB) is one of the most recognized biotech stocks. Offering a range of therapeutics, it arguably offers excellent long-term value. Yes, shares have slipped about 24% over the trailing five years. However, its leadership in several key areas, particularly neurological diseases should make BIIB relevant for decades to come.

According to its website, Biogen commands a world-class neurology research and development organization, which pushes toward novel approaches for previously intractable neurodegenerative conditions such as Alzheimer’s disease. Further, the company explains that 55 million people suffer from dementia worldwide, with 60% to 70% of cases being Alzheimer’s.

Financially, one of Biogen’s biggest strengths is its excellent margins across the board. As well, it enjoys a return on equity (ROE) of 10.6%, beating out nearly 70% of other drug manufacturers.

Analysts view BIIB as a consensus moderate buy with a $306.29 average price target, implying over 27% upside potential. The high-side target lands at $379, projecting almost 58% growth.

BioMarin Pharmaceutical (BMRN)

One of the mid-cap biotech stocks, BioMarin Pharmaceutical (NASDAQ:BMRN) features offices and facilities in the U.S., South America, Asia, and Europe. Per its public profile, BioMarin’s core business and research revolves around enzyme replacement therapies. Notably, the company was the first to provide therapeutics for mucopolysaccharidosis type I and phenylketonuria. In the trailing year, BMRN dipped 19% although it’s attempting to recover in recent sessions.

On a broader level, BioMarin intrigues as one of the biotech stocks fighting America’s deadly diseases through its directive on addressing rare genetic diseases. While such conditions don’t always generate headlines, because of that very situation, they impose high medical needs. Through BioMarin’s pipeline, the biotech offers hope through therapeutics that address diseases like achondroplasia (a rare genetic bone growth disorder) and phenylketonuria, a metabolic disorder.

According to Grand View Research, the global rare disease treatment market size reached a valuation of $119.6 billion. By 2030, the segment could be worth almost $336 billion. Notably, analysts peg shares a moderate buy with a $107.10 average price target. However, the high-side target shoots up to $170.

Alkermes (ALKS)

A fully integrated biopharmaceutical company, Alkermes (NASDAQ:ALKS) focuses on developing medicines for psychiatric and neurological disorders. While this broad umbrella might not seem to be particularly deadly, mental health represents a complex and interwoven matter. Without proper treatment, circumstances can spiral out of control, leading to depression and self-harm. Fortunately, Alkermes is burning the midnight oil to address this mental health crisis.

In particular, Alkermes played a significant role in combating the opioid dependence epidemic. Looking ahead, the company has several therapeutic candidates under the neuroscience category in various clinical stages. Broadly speaking, Alkermes falls under the central nervous system (CNS) therapeutics market, which is a sizable one. According to Grand View Research, the global CNS therapeutics sector reached a valuation of $116.2 billion in 2020.

By 2028, the space could print revenue of $205 billion. If so, that would represent a CAGR of 7.4%. Analysts have high hopes, rating shares a moderate buy with a $34.67 average price target. Further, the high-side target hits $42, projecting growth of over 57%.

Arrowhead Pharmaceuticals (ARWR)

Based in Pasadena, California, Arrowhead Pharmaceuticals (NASDAQ:ARWR) develops medicines that treat intractable diseases by silencing the genes that cause them. To accomplish this directive, it uses a broad portfolio of RNA chemistries and efficient modes of delivery to induce rapid, deep, and durable knockdown of target genes. Further, its latest Form 10-K states that its pipeline consists of 14 clinical-stage investigational medicines, ranging in the development stage from Phase 1 to Phase 3.

Over the past 52 weeks, ARWR slipped about 3%. However, this underperformance could be an opportunity to get in. As a specialist in the field of novel drug development, it enjoys tremendous upside potential. According to Precedence Research, the global drug discovery market reached a valuation of $55.46 billion. By 2032, the sector could jump to $133.11 billion, or a CAGR of 9.2%.

That might be on the conservative side. Per Acumen Research and Consulting, the same space could soar to $181.4 billion by 2032. Either way, analysts peg ARWR shares a consensus moderate buy with a $53.70 price target. And the high-side target jumps to $90, a 184% profit.

Agios Pharmaceuticals (AGIO)

Headquartered in Cambridge, Massachusetts, Agios Pharmaceuticals (NASDAQ:AGIO) is a pharmaceutical company pioneering therapies for genetically defined diseases. Per its public profile, it features a near-term focus on developing therapies for hemolytic anemias. Moreover, its Form 10-K explains that it levers leadership in the field of cellular metabolism to create differentiated, small-molecule medicines for rare diseases. Over the past year, shares dipped about 20%.

Currently, one of the reasons why AGIO is gaining traction among biotech stocks to buy is its acumen rare metabolic diseases. As mentioned earlier, it’s attempting to help people living with hemolytic anemias, who may suffer acute symptoms and long-term complications. Further, their disorders may significantly impact their quality of life and daily functioning.

Notably, Agios is plying its trade in a sizable market. For example, the global inherited metabolic disorders testing market reached a valuation of $603.4 million in 2022. However, by 2030, this space could fly to over $1.12 billion.

Finally, analysts rate shares a consensus strong buy with a $43 average price target, implying almost 82% upside.

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

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

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Space stocks represent underappreciated investments due to the market’s current obsession with AI and electric vehicles (EVs). With these strong buy space stocks out of the limelight, it’s likely their upsides haven’t yet been fully priced into their valuations.

So, let’s explore three best space stocks that investors should put on their watch lists this month.

Spire Global (SPIR)

Spire Global (NYSE:SPIR) is a provider of space-based data, analytics, and space services. A simple way to think about SPIR’s business model is that it helps scientists and engineers with unique datasets about Earth.

SPIR’s financial performance for the first three quarters of 2023 impresses. In the most recent quarter, the company saw its revenue and Annual Recurring Revenue (ARR) grow significantly. In fact, revenue projections fall between $104 million to $109 million and ARR is expected to be in the range of $125 million to $135 million.

Furthermore, the company is forecasting strong growth for its customer base for additional ARR, anticipated to be between 800 and 830 by year’s end. The company said this should translate to a revenue growth of 30% to 36% for the full year of 2023.

Naturally, Wall Street appreciates these kinds of projections. So, it has issued SPIR stock with a collective strong buy rating. Also, the Street is forecasting that its stock price will increase 84.32% within the next twelve months.

Rocket Lab USA (RKLB)

Rocket Lab USA (NASDAQ:RKLB) specializes in satellite parts and space launch systems. 

RKLB is somewhat of a contrarian play for many interested in the space sector. The company’s stock price has fallen 10.86% in the past year and 56.52% over the past five years. The brand has suffered from persistently negative operating margins and low gross margins. Additionally, sensationalized rocket failures have placed a damper on the company’s potential.

But, the company appears to be turning a corner. The brand has had an increase in its gross margins over the trailing twelve months, with space systems gross margins growing beyond 30% and launch margins inching closer to 50%.

By FY2026, Wall Street believes it could reach breakeven profitability, with a projected increase of 71.81% for its revenues next year. 

Howmet Aerospace (HWM)

Howmet Aerospace (NYSE:HWM) is known for its aerospace and defense components. Although it’s a lesser-known space stocks, it may have the highest potential to surge upwards.

Certainly, some strong momentum factors are at play for HWM. For the most recent quarter, the company’s sales increased to $1.658 billion. This marks a 16% year over year (YOY) growth, and EBITDA climbed to $382 million for an 18% increase. This expansion is supported by improvements in margin rates across all segments.

Additionally, for the next quarter, HWM expects revenue of nearly $1.635 billion, EBITDA of $375 million, and EPS of $0.45. This guidance was revised upwards recently, which strongly deserves investors’ attention.

As a bonus, a dividend hike was also awarded. This may be a small step in bringing its dividend yield closer to that of its peers in the defense sector, which is well-known for paying high dividends. A 25% increase to its dividend was declared in September, bringing its quarterly dividend to $0.05 and its forward yield to 0.4%. 

Hence, Howmet Aerospace is one of those strong buy space stocks to watch.

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

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

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As a result, several lithium stocks have seen their share prices and valuations shatter. For investors desiring to profit from the battery markets’ long-term prospects, their best bet may be to start considering these three undervalued lithium stocks.

Ganfeng Lithium Group (GNENF)

Ganfeng Lithium Group (OTCMKTS:GNENF) is a China-based company that happens to be one of the world’s largest producers of lithium products. The Chinese lithium producer has established strategic partnerships with several battery and EV manufacturers, including LG Chem, Volkswagen (OTCMKTS:VWAGY), BMW (OTCMKTS:BMWYY) and Tesla.

Outside of mining for lithium in China, the company gained stakes in several lithium projects worldwide, including Caucharí-Olaroz in Argentina, Sonora in Mexico, Mt Marion in Australia and Bacanora in the U.K. Ganfeng Lithium’s financials have struggled in recent quarters. In particular, the company has been hit by an oversupply of lithium in China.

The lithium producer forecasted a 70 to 80% drop in profit for 2023. In turn, investors have been lukewarm on Ganfeng Lithium’s stock. The company’s share price has fallen 72% over the past 12 months. That means Ganfeng is currently trading at 8x forward earnings, making it immensely undervalued. Despite these financial setbacks, Ganfeng is still pursuing agreements and partnerships with EV manufacturers. The company recently announced a 4-year lithium supply agreement with Hyundai Motor (OTCMKTS:HYMTF).

As the economy continues to recover, so should demand for EVs and lithium carbonate. Patient investors are likely to be rewarded in this context.

Sociedad Quimica y Minera de Chile (SQM)

Sociedad Quimica y Minera de Chile (NYSE:SQM) is the second-largest producer of lithium in the world, with operations in both Chile and Argentina. The company also operates one of the largest mines in the world at Salar de Atacama, Antofagasta, Chile. Salar de Atacama not only provides a low-cost and high-quality source of lithium brine but is one of the largest and richest salt flats in the world. Like many lithium producers, SQM had an excellent 2022 due to elevated lithium prices. SQM reported revenue of $10.7 billion and net income of $3.9 billion, representing YoY revenue growth and net income margin of 274% and 36%, respectively.

Unfortunately, the company can expect its 2023 fiscal year results to not be as stellar due to the precipitous fall of lithium carbonate prices throughout the year.

However, there are still developments to be hopeful about. Tesla announced the opening of its first store in Santiago, Chile, which would also represent its first store in Latin America. The famed EV maker grabbing market share in Latin America could eventually lead to stronger ties between Tesla and SQM. Moreover, the lithium producer’s shares are trading cheaply at 8x forward earnings, and this could also be an opportunity for investors waiting for the lithium market to rebound.

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. (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 in 2023, and the producer has already begun making lithium shipments. 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 dropped 53% over the past 12 months, primarily due to the weakening market situation for lithium. Shares are currently trading at a valuation of 5x forward earnings, which is cheaper than most other lithium competitors.

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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What’s up with MARA stock lately?

Well, MARA is up a surprise 20% today, likely benefiting from the rise of the price of the primary commodity it mines: Bitcoin. Indeed, BTC is up 5% over the past five trading days, recently even crossing the $45,000 per coin threshold.

While the stock is likely receiving a boost from Bitcoin’s recent climb, it’s likely not what’s behind today’s jump, at least not entirely. According to data from the financial data site Fintel, MARA stock has a notably high short interest.

MARA has a 22.36% short interest, far higher than most normal securities. This suggests that the stock’s recent surge may be the result of an ongoing short squeeze.

Is There a MARA Stock Short-Squeeze in the Making?

A short squeeze entails an organized effort to raise the price of a security as part of a plan to force those who hold short shares of said security to sell their holdings, thus pushing the stock up even more. As stock prices rise, those with short positions on the security are “squeezed” into selling as a way to avoid sometimes substantial losses.

Short squeezes have become something of a mainstay among Reddit investors, with companies like Tesla (NASDAQ:TSLA) and GameStop (NASDAQ:GME) experiencing historic rallies off the back of investor manipulation. The latter, in particular, saw the video game retailer climb to an all-time high of $500 per share, from just $17, purely from the effort of thousands of r/WallStreetBets investors.

While it’s difficult to tell if today’s jump falls into short-squeeze territory, MARA’s high short interest certainly strengthens the case.

After today’s gains, MARA stock is still down more than 8% year-to-date, though the company is up 209% in the last 12 months.

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

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

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Another benefit to monthly dividend stocks centers on the concept of compounding benefits. Basically, investors have the choice to reinvest their dividends more frequently. By targeting the right opportunities three times in a quarter as opposed to once, this reinvesting process can stack up. In turn, the overall performance can be greater over time.

Lastly, payouts every 30 days can help reduce the volatility of income for stakeholders. By not having to be dependent on the timing of quarterly payments, investors enjoy more stability in their payouts. With so many advantages, it’s a good opportunity to consider monthly dividend stocks to buy.

Whitestone REIT (WSR)

Based in Houston, Texas, Whitestone REIT (NYSE:WSR) owns and operates community-centered retail properties in high-growth markets. It’s mostly concentrated in various compelling cities in its home state along with Arizona. For example, Whitestone has a presence in San Antonio, which is projected to grow by more than three million residents by 2050. Stated differently, the real estate investment trust (REIT) is located where the money will be.

Unsurprisingly, investors appreciate the long-term potential behind WSR. Over the past 52 weeks, shares gained over 25% of equity value. It’s also off to a solid start in the new year. Overall, analysts rate WSR a consensus strong buy with an average price target of $13.63. While modest, the high-side target lands at $15. Given the potential of its key regions, that could be the more realistic forecast.

Regarding passive income, Whitestone offers a forward yield of 3.74%. While a bit light compared to other REITs, WSR also enjoys the aforementioned growth narrative. Thus, the combination of growth and passive income makes it one of the monthly dividend stocks to buy.

Stag Industrial (STAG)

Headquartered in Boston, Massachusetts, Stag Industrial (NYSE:STAG) primarily invests in single-tenant industrial properties. Moreover, these properties play a significant role in supporting the logistics and distribution networks that facilitate e-commerce operations. Of course, that’s a significant factor to consider because of the sustained relevance of online retail transactions.

As data from the U.S. Census Bureau demonstrates, e-commerce sales as a total of all retail transactions slipped to 14.4% in the second quarter of 2022 after hitting an all-time high of 16.5% in Q2 2020. However, even with the cynical COVID-19 catalyst firmly in the rearview mirror, this metric started to rise. By Q3 of last year, the index hit 15.6%, confirming strong consumer demand for the convenience of e-commerce.

Therefore, STAG is well positioned. Overall, analysts peg shares a consensus moderate buy with a $41 price target. Regarding passive income, Stag offers a forward yield of 3.94%. It also enjoys six years of consecutive payout increases. Thus, it’s an intriguing idea for monthly dividend stocks.

Gladstone Land (LAND)

Founded in 1997, Gladstone Land (NASDAQ:LAND) is a REIT that owns farmland and leases it to farmers. It also offers cash purchases of agricultural land, with the offer to keep existing tenant-farmers in place or to find new farmers if needed. On its website, Gladstone boasts of its strong operating history and deep farming resources. As well, all of the REIT’s farms are presently 100% occupied.

Fundamentally, Gladstone plies its trade in one of America’s most important endeavors: ultimately to feed its people. Further, experts stated that last year, cropland values were anticipated to rise 8.1%. As well, ranchland values were projected to increase by 6.7%. That’s not really a surprise because let’s face it – they aren’t making any more new land.

However, investors haven’t really seen the value in LAND stock, sending it down sharply over the past year. Still, that could be a mistake given the solid revenue growth and lowly revenue multiple of 5.28X. As for passive income, Gladstone carries a forward yield of 4.12%. It does have a negative payout ratio but that’s likely due to the company reinvesting more money than it’s paying to shareholders.

Realty Income (O)

One of the most popular monthly dividend stocks, Realty Income (NYSE:O) is no stranger to the topic. Indeed, I’ll bet that if you search for articles about frequent passive income, Realty Income will be mentioned in 90% of them. Per its public profile, the REIT invests in free-standing, single-tenant commercial properties in the U.S., Spain, and the U.K.

Also, the company has registered a trademark for the phrase “The Monthly Dividend Company.” It’s hard to argue with the moniker. At the moment, the enterprise offers a forward yield of 5.73%. That’s resoundingly above the real estate sector’s average yield of 4.46%. Also, it sports 31 years of consecutive annual payouts. Even in troubling or ambiguous market cycles, Realty is the name you can trust.

Interestingly, though, you can pick up O stock on a relative discount, which is down double digits in the past 52 weeks. That seems a bit harsh given the solid revenue and EBITDA growth over the past three years. In addition, analysts assess Realty as one of the monthly dividend stocks to buy with an average $61.98 price target.

Gladstone Investment (GAIN)

Headquartered in McLean, Virginia, Gladstone Investment (NASDAQ:GAIN) is a business development company (BDC). Primarily, the enterprise invests in small and mid-sized businesses. Generally speaking, BDCs help enterprises grow during the initial stages of their development. As well, they can also help distressed companies regain their footing.

To be fair, the case for Gladstone is a bit tricky because of the tough economic circumstances that materialized in 2022 and 2023. Typically, BDCs perform better during bull markets because interest rates tend to be lower. In turn, this reduces the cost of capital, which can ultimately enhance their profitability. Still, with the economy avoiding a recession last year and hopes for a soft landing rising, Gladstone may become a beneficiary.

Within the past three months, no analyst has covered GAIN. Extending out to early November, two ratings came in – one hold, one buy. That said, speculative investors may be attracted to the passive income. Currently, the company levers a forward yield of 6.88%, well above the financial sector’s average yield of 3.18%.

If you can handle the risks, it could be an enticing candidate for monthly dividend stocks.

LTC Properties (LTC)

For the patient high-conviction investor, LTC Properties (NYSE:LTC) may be one of the most exciting monthly dividend stocks. Now, that comes with its positive and negative territories. As a REIT that invests in senior housing and healthcare properties, LTC doesn’t need to explain its relevance. With the aging baby boomer population likely to drive demand, longtime believers are confident in the upside narrative.

However, the market is also testing their patience. Over the past 52 weeks, LTC absorbed a sizable hit. Also, the company suffered annual revenue growth declines between 2020 and 2021. However, to counterbalance this pessimistic narrative, sales shot up in 2022 and it’s projected to do so again based on trailing-12-month (TTM) trends. Additionally, by 2030, all baby boomers will be age 65 or older. That’s almost an inevitable tailwind.

As for passive income, the company offers a robust forward yield of 7.47%. However, one factor to watch out for is that analysts only peg shares a consensus hold. Still, with a high-side target of $37, LTC could be an interesting idea among monthly dividend stocks.

EPR Properties (EPR)

Ranking among the more speculative ideas for monthly dividend stocks, investors will need high conviction to bet on EPR Properties (NYSE:EPR). Structured as a REIT, EPR focuses on entertainment, recreation, and education properties. During the post-pandemic revenge travel sentiments, the former two categories offered an attractive narrative. Still, with stubbornly elevated inflation and high borrowing costs, questions exist about the health of the consumer economy.

Given the undulations of EPR stock during the past 52 weeks, it’s tough to get a read on market sentiment. Also, reviewing its point-and-figure chart, EPR printed what’s known as a high pole warning. Basically, the demand that previously helped push prices higher could give way to supply pressure. At the same time, I don’t think it’s proper to outright ignore the resilience of the consumer.

Also, by avoiding a recession last year, that in and of itself represents a major victory. If we could somehow materialize a soft landing, consumer sentiment may rebound vigorously. While you’re waiting for that narrative, EPR offers an incredibly generous 7.69% forward dividend yield.

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

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

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The first one has groundbreaking advancements in process technology. Meanwhile, the second one has rapid expansion fueled by increasing demand. At the same time, the third one strategically focuses on global market penetration.

Each company offers unique opportunities for investors seeking to ride the wave of the technological revolution. This article delves into the key factors propelling these tech stocks toward doubling their valuations by 2025.

Learn why the trio is a must-buy stock for savvy investors looking to capitalize on future tech.

Intel (INTC)

Intel’s (NASDAQ:INTC) improving performance and leadership in process technology serve as the key factors fabricating the potential for massive valuation. For instance, in Q4 2023, revenue was at the higher end of guidance, exceeding expectations.

The company delivered substantial EPS upside due to a focus on driving operating leverage and effective expense management. The attainment of the $3 billion cost savings commitment for 2023 indicates progress on the focus. The target to attain considerable progress on the IDM 2.0 journey in the next 12 months boosts the potency for sustained growth.

On the product side, Intel’s execution across its process tech roadmap in 2023 brings in major milestones. This includes becoming the world’s first high-volume manufacturer of logic devices using EUV. Hence, incorporating gate-all-around and backside power delivery in a single process node, unexpectedly two years ahead of competitors, builds Intel’s technical moat.

Furthermore, the roadmap includes the launch of Sierra Forest and Granite Rapids, with Sierra Forest having final samples at customers and Granite Rapids ahead of schedule. There is an anticipation of breaking into the Angstrom era with Intel 20A and Intel 18A, demonstrating Intel’s focus on maintaining a continuous node migration path.

Additionally, Intel’s focus on bringing AI everywhere is aligned with the growing demand for AI workloads. The company targets to participate in 100% of the $1 trillion semiconductor TAM by 2030 related to AI and Silicon Logic. 

Finally, specific products like Gaudi 3 AI accelerators suggest price-performance leadership. Hence, the launch of Intel Core Ultra represents a significant architectural shift for AI-capable client processors, positioning Intel at the edge in the AI space. 

Super Micro (SMCI)

To begin with, Super Micro’s (NASDAQ:SMCI) strong performance is attributed to a surge in demand and improving supply conditions for GPUs and related key system components. The revenue growth of 133% (Q2 fiscal 2024) reflects a market that is receptive to Super Micro’s offerings and actively seeking its products.

Additionally, the accelerating demand phase suggests that Super Micro can secure many more customer wins. This signifies the strength and capacity of its current offerings to adapt to market and macro dynamics.

On the other hand, a significant strategic move by Super Micro to support its rapid growth is the increase in working capital through an equity offering. Through this, the company is raising approximately $600 million, highlighting a tangible infusion of capital into the company’s operations. This enables the company to scale its activities, invest in research and hit on the increasing demand for its products.

Super Micro’s positive outlook suggests strong momentum and growth potential. Notably, the anticipation of Q3 revenue in the range of $3.7 billion to $4.1 billion and the forecast for 2024 ending in June raised to a range of $14.3 billion to $14.7 billion reflect sustained growth.

Furthermore, the anticipation of new platforms, including Nvidia’s (NASDAQ:NVDA) CG1, CG2 Grace Hopper Superchip, H200 and B100 CPUs and GPUs, L40S Inferencing-Optimized GPUs, AMD’s (AMD) MI300X and MI300A and Intel’s Gaudi 2 and Gaudi 3, suggests a focus on staying at the edge of AI technology.

Finally, there is a continuous improvement in the time-to-delivery (TTD) factor, up to 5,000 racks per month, indicating a focus on customer responsiveness. Hence, these factors may continue to boost its topline performance and valuations.

ACM Research (ACMR)

ACM Research (NASDAQ:ACMR) focuses on expanding its customer base in China and internationally. This is a strategic move towards long-term sustainability. Notably, nearly all semiconductor manufacturers in China now use ACM Research tools. This signifies the company’s strong market penetration and recognition within its domestic market.

Additionally, procuring a purchase order from a large US manufacturer for the Ultra C backside cleaning and bevel etch tool indicates ACM Research’s lead in diversifying its global customer base. There is potential for deepening relationships and generating demand for additional tools in the US and Europe. This demonstrates the company’s capability to stabilize toplines based on trust and deliver value to customers.

Furthermore, the investments in facility expansion indicate ACM Research’s focus on providing efficient support to its growing customer base. The expectation to spend about $75 million in capital expenditures for 2023 reflects an inclination toward infrastructure development. Specifically, ACM Research focuses on investing in Lingang production and research centers in China. Also, there is a facility expansion in Korea, and leasing a facility in Oregon for service support boosts sustainable financial growth.

Financially, ACM Research’s outlook for 2023, with revenue expected from $520 million to $540 million, suggests a pragmatic approach. Overall, the solid revenue growth observed in ACM Research’s Q3 2023 reflects the company’s effective market positioning. A 26% increase in revenue, totaling $168.6 million, signifies brawn financial standing. Therefore, the capability to adapt to market trends may continue to support the company’s market value expansion and meet customer demands.

As of this writing, Yiannis Zourmpanos held long positions in INTC, ACMR and NVDA. 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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Supportive government policies, technological advances and changes to consumer preferences will continue supporting demand for EVs in the long run. Even though there may be hiccups in terms of growth, the EV trend is likely here to stay. Below we explore three EV stocks that have received “Strong Buy” ratings from Wall Street.

BYD (BYDDY)

BYD (OTCMKTS:BYDDY) earned numerous spots on my ‘buy’ lists in recent months. The EV maker’s growth in both China and abroad appear unmatched at this point in time. Last year, BYD became the world’s top EV maker in 2023, trouncing its American rival, Tesla (NASDAQ:TSLA) in terms of electric vehicle sales. In Q4 2023, BYD sold 526,409 electric vehicles, while Tesla sold 484,507.

BYD has also diversified its business into not only manufacturing electric vehicles but also supplying the batteries that power them. The automaker became a key player in the battery market, ousting LG Energy Solutions as the world’s number 2 EV battery supplier.

Despite the success, BYD’s share price growth has continued to lag behind that of Tesla’s. China’s sluggish economic recovery and BYD’s exposure to mainland China stock exchanges are partially to blame for this. Wall Street, however, is still pleased, with numerous analysts rating BYD shares a “strong buy”.

The Chinese EV maker has enough secular tailwinds behind it, and investors should start to pay serious attention to what BYD does next.

Li Auto (LI)

Li Auto (NASDAQ:LI) is another leading electric vehicle (EV) manufacturer in China. This EV maker particularly focuses on producing smart SUVs with extended-range technology, and the company also has received a “Strong Buy” rating from Wall Street analysts. The company’s flagship model is the Li L7, a five-seater premium SUV that can run on both electricity and gasoline and competes directly with Tesla’s (NASDAQ:TSLA) Model Y.

Li Auto’s shares have received more love from investors. In 2023, the EV maker’s Nasdaq-listed shares rose 83.5%. Consistent monthly sales growth continues to show Li Auto’s vehicles are in high demand in the world’s largest auto market. Li Auto’s total deliveries increased 182% on a year-over-year basis in 2023 to 376,030. The automaker has so far deliveries over 600,000 vehicles.

Since the start of trading in 2024, Li Auto’s share price has certainly taken a beating, falling more than 17%. Still, interested investors desiring exposure to China’s burgeoning EV market could see this as an opportunity.

Aehr Test Systems (AEHR)

Final in our list of “strong buy” EV stocks is a semiconductor equipment manufacturer: Aehr Test Systems (NASDAQ:AEHR). Aehr Test Systems is a global provider of test systems for burning-in and testing logic, optical and memory integrated circuits.

The company is famous for providing testing equipment and services for electric vehicle (EV) microchip components. Demand for electric vehicles continued throughout 2023, which in turn benefitted AEHR revenue growth. However, recent speculation of an EV market slowdown has led AEHR shares to tumble more than 58% over the past 12 months. AEHR shares currently trade at 17.0x forward earnings, which is much lower than some of the vaunted and well-known semiconductor companies.

As EV demand remains uncertain, AEHR should definitely be a stock that investors watch over the coming months.

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

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

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He’s calling this shift the “AI Endgame.” And the time to act, to stay on the right side of the divide, is now.

Take it away, Luke…

Artificial intelligence (AI) has experienced a meteoric rise, sparking excitement for some and posing an existential threat for others.

Will AI usher in an era of unprecedented prosperity and abundance, or will it dominate society, rendering humans obsolete?

Currently, these questions are merely theoretical, suitable for discussion at dinner parties during the holiday season. After all, we will not know the actual answers for decades. True artificial general intelligence (AGI), the level of AI that can perform any task a human can but more efficiently, remains far from reality.

Or does it?

The Breakthrough at OpenAI

A few years ago, the consensus was that AGI would not be achieved in our lifetimes.

Earlier this year, the consensus shifted, with some experts believing AGI was about 10 years away.

Now, technology experts such as Tesla (TSLA) CEO Elon Musk and Nvidia (NVDA) CEO Jensen Huang think AGI is just three to five years away.

Notice the trend?

The timeline to AGI is becoming increasingly shorter, and it is now believed that the level of artificial intelligence that could either save or destroy humanity may be only a few years away.

That is terrifying. If you are already spooked by that sobering reality, you may want to stop reading now.

Because new reports actually suggest that AGI may already be here.

Reuters recently reported that OpenAI, the creator of ChatGPT, discovered an AI breakthrough so significant that its own researchers said it could “threaten humanity.”

While the details are scarce, the company has confirmed that the model is real.

Reportedly, this model has learned to use synthetic data to reason through complex mathematics and science problems. If true, this is a breakthrough that experts recommend could be the most significant leap yet toward true AGI.

Is it time to sound the alarms?

I think so.

The Upcoming Divide

I consider myself an “AI Optimist.” I believe that artificial intelligence, with its ability to augment productivity, will usher in an era of unprecedented economic prosperity and abundance.

I am very confident in this belief.

However, I understand that every situation has its drawbacks. In contrast to the AI-driven prosperity and abundance, there is a grim outlook for individuals and businesses that do not embrace artificial intelligence.

The AI Boom is already creating a divide between the “haves” and the “have-nots.” Take Wall Street, for example. Numerous AI stocks increased by hundreds of percent in 2023. In comparison, the rest of the market, as measured by the S&P 500 Equal Weight Index, barely scraped by 10%.

To put it another way: AI stock investors are making money hand over fist, while other investors are not.

I am confident that this is the new norm, and that artificial intelligence will divide society into two groups.

On one side are investors and businesses who embrace AI, invest in it, and use it to enhance productivity…

On the other side are those who neglect AI, do not invest in AI stocks, and fail to adopt the technology in their daily lives. I believe these individuals are setting themselves up for failure for the next several decades.

Very soon, AGI will significantly and irreversibly accelerate this division.

That is why OpenAI’s breakthrough should terrify you.

The Final Word

If you are not on the right side of the AI Boom, you will be stuck on the losing side, potentially forever.

The time to act is now.

Because this new breakthrough could accelerate an unprecedented AI arms race, dramatically enhance business productivity, and potentially trigger a surge in specific AI stocks.

This pivotal shift, which I’ve dubbed the “AI Endgame,” presents a window of opportunity that savvy investors cannot afford to miss. To get ahead of this upcoming endgame, it is imperative to act swiftly—before Feb. 29.

Position yourself at the forefront of this wave to capitalize on the explosive opportunities that lie ahead.

Sincerely,

Luke Lango
Editor, Hypergrowth Investing

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Following a strong January — a month that tends to be very predictive for markets overall —  Lee now believes the S&P 500 could rise as high as 5,500 this year. The leading index currently sits at 4,900, and Lee had earlier predicted it could rise as high as 5200. 

When one of 2023’s best-known bulls ups his already bullish outlook, investors should take note of these stocks to buy.

Nvidia (NVDA)

Nvidia (NASDAQ:NVDA) was the dominant force in the stock market’s bull run in 2023. If 2024 is to be the same, Nvidia will again be one of the primary players. This year has begun as 2023 ended for the firm: continued gains despite worries the AI boom has been overhyped.

Nvidia has rocketed from $480 to $700 throughout January. Those investors who question whether the AI boom is overhyped should consider one simple fact as it relates to Nvidia: No other firm has monetized AI like Nvidia.

Companies of all sizes continue to scramble to secure their supply of the company’s chips. That’s only going to continue, especially because the company will release its updated chips this year.

For investors still on the fence and worry that Nvidia is overpriced, consider this: Nvidia’s P/E ratio is higher than over 85% of all other companies in the semiconductor industry. If that sounds overvalued consider that Nvidia could become one of the most important companies ever.

Microsoft (MSFT)

Investing in Microsoft (NASDAQ:MSFT) stock offers the same sort of predicament as buying Nvidia at the moment. Both stocks are trading at historically high prices, and both have gotten there due to AI’s tailwinds.

Despite high prices and a market capitalization over the three $3 trillion threshold, Microsoft is deserving of all the bullishness at the moment. Its net income increased by 33% in the most recent quarter, the highest jump since late 2021. If you’ll remember, that was the very tail end of the quantitative easing error during which free money flowed readily. Microsoft is now back at that level due primarily to its AI investment.

If Nvidia has been the champion of AI monetization, Microsoft is not far behind. It continues to introduce new AI integrations that promise to revolutionize workplace efficiency fundamentally. Microsoft’s Cloud business is a particular strength. It grew by 30% during the quarter and is a particularly important investment target for AI overall. The Magnificent Seven will continue to play an outsized role in market growth in 2024, and Microsoft will be a huge part of that.

Taiwan Semiconductor Manufacturing (TSM)

Taiwan Semiconductor Manufacturing (NYSE:TSM) recently projected a lot of confidence over its 2024 outlook. That confidence should positively affect its stock price moving forward. It was in mid-January that the world’s largest and most important Foundry projected 20% revenue growth on a strong AI demand. 

Despite lagging cell phone and EV chip sales, Taiwan Semiconductor Manufacturing is very bullish about chip sales this year. The company projects a 20% increase in sales due to the continued growth of AI.

TSM is not as prominent as the other AI firms it serves. Yet, it is arguably the most important firm in the world for several reasons. Of course, it is the world’s largest foundry and provides chips for everyone from Nvidia to AMD (NASDAQ:AMD) and beyond. TSMC is also geopolitically positioned in a country that is incredibly important. It’s an easy investment to make given its recent confidence, geopolitical position and economic importance.

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

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

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Rivian (RIVN)

Our first choice is no stranger to “best EV stocks to buy” lists. Rivian (NASDAQ:RIVN) offers an electric two-row pickup truck consumer vehicle, the R1T and a three-row sport utility vehicle (SUV), the R1S, for the consumer market. The company also offers the Rivian Commercial Vehicle (RCV) platform for the commercial market. Rivian also provides Amazon’s Electric Delivery Vans (EDV) and has recently ended its exclusivity agreement with the retail giant: they are now free to offer EDVs to other commercial customers. The company’s other services include insurance, financing, maintenance and FleetOS solutions that unify full fleet telematics. Apple’s previous vice president for hardware engineering recently joined RIVN, strongly indicating a concerted push to improve its self-driving functionality. 

Rivian’s latest quarter reported $1.337 billion in revenue, a significant increase from $536 million in the prior year quarter. This quarter’s 15,564 vehicle deliveries mainly drive the growth. Meanwhile, the quarter ended with an overall net loss of $1.37 billion—a 20% improvement from last year’s $1.77 billion loss. That said, RIVN is making strides in reducing material and production costs, leading to narrowing losses and potential profitability shortly.

The company also maintains strong liquidity with cash, cash equivalents and short-term investments summing up to $9.13 billion. While Rivian is experiencing short-term growth challenges, it’s better positioned than many of its competitors through its operational efficiency and improving metrics. Even Wall Street analysts rate it as a “Strong Buy” with a high target price of $40.00. While others may not agree, in our view, it is worth watching as a potential EV stock to buy.

NIO (NIO)

China’s premium EV market is seeing intense competition, and one of the most promising companies to throw its hat into the ring is NIO (NYSE:NIO). NIO is a China-based holding company researching and developing premium smart electric vehicles. Its primary vehicle products include ES8, ES6, EC6 and ET7. The company also developed autonomous driving technologies and battery-swapping technologies for its smart EV vehicles. NIO previously announced its new executive flagship, ET9, targeted at high-end business users. 

NIO’s latest quarter results showcased a robust 75.38% vehicle delivery growth, from 31,607 to 55,432 YoY. The company’s vehicle margin also increased to 11%. As a result, total revenue surged by 46.60%, reaching 19.07 billion RMB ($2.61 billion).

Investors interested in NIO might be happy to learn that the company has been making strategic moves to boost its growth further. These initiatives include launching the All-New EC6, offering convertible senior notes, and partnering with companies like Geely Holdings—all aimed to strengthen its position in a very competitive EV market.

The company’s efforts have been noticed, earning it a “Buy” recommendation from analysts. To be sure, NIO’s resilience, continued product development and dominant position in China’s premium electric vehicle market make it a compelling choice for any shortlist of underrated EV stocks to buy.

Xos (XOS)

EV manufacturers aren’t the only ones to benefit from increased adoption. Case in point: Xos (NASDAQ:XOS) is a company that designs and manufactures Class 5-8 battery-electric commercial vehicles that travel around 200 miles per day, a great value proposition for any EV producer. In addition, the company also offers charging infrastructure products and fleet management software. This helps commercial fleet operators have a superior experience than traditional counterparts. Its Fleet-as-a-Service offering helps owners transition from conventional internal combustion engine vehicles to battery-electric vehicles and adapt to the market’s growing demand. The company has been recognized as one of the fastest-growing companies in North America based on Deloitte’s Technology Fast 500. 

XOS’s last financial report showed impressive product delivery growth for the quarter, reaching 105 units (104 vehicles & 1 powertrain) and highlighting its accelerating momentum in the electric vehicle market. While the company ended the quarter with a $14.10 million loss, this greatly improved from last year’s $19.96 million net loss. XOS also achieved a robust 52% revenue growth YoY, reaching $16.7 million. In addition, the company reported a strengthened financial position with $23.40 million in cash & cash equivalents, while inventories ended at $48.90 million. This demonstrates its resilience and potential for ongoing expansion. XOS’s 2023 full-year guidance anticipates 250 to 350 unit deliveries and revenue from $36.3 to $54.7 million. With the rapidly growing electric vehicle industry, XOS offers investors a chance to capitalize on one of the best underrated EV stocks in the market.

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

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

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Visa (NYSE:V) goes for 32 times earnings. Fiserv (NYSE:FI) sells for 29 times earnings. Even Capital One Financial (NYSE:COF), which made its name as a credit card bank, is up over the last year. But Paypal (NASDAQ:PYPL) is lagging. It’s down a lot over the last year. Analysts call PayPal a bargain but they just laid off 9% of the workforce. According to my PYPL stock forecast, this bodes poorly.

Competition’s Impact on the PYPL Stock Forecast

While companies like Fiserv make their money inside the payment process, PayPal lives at the edge. It’s a brand name. Services like Venmo are sold directly to consumers. Braintree sells directly to banks. PayPal itself sells payment systems to online merchants.

It’s here that the Cloud Czars, especially Apple (NASDAQ:AAPL) and Alphabet (NASDAQ:GOOGL)(NASDAQ:GOOG), have set out their stalls. Apple Pay and Google Pay make things easy for consumers. They interact with existing systems through credit cards and don’t threaten the processors (yet). But they do aim to take over the relationship.

On the bank side, it’s Block (NASDAQ:SQ) that is the disrupter. Their simple dongle-based system, combined with the Cash App, continues to gain share among small merchants. Then there’s Amazon.Com (NASDAQ:AMZN), which offers payment services to all its third party merchants.

PayPal Solutions

New PayPal CEO Alex Chriss, formerly with Intuit (NASDAQ:INTU), is aware of all of this. He has a good track record, having led Intuit’s acquisition of Mailchimp.

Chriss said he would “shock the world” with new announcements on Jan. 26. Faster checkouts, smart receipts, and automated offers sound great, but other companies already have them. Wall Street was unimpressed.

Just days later, PayPal announced the layoffs. This followed the previous management’s letting go of 7% of their workers. PayPal will announce earnings today after the market closes, and analysts aren’t expecting much. Earnings of $1.36 per share would only be 9% ahead of last year. Expectations for 2024 are only 10% ahead of the 2023 numbers.

Table Pounders

The pall around PayPal has some analysts pounding the table, predicting a break-out. It’s trading at a discount, the reasoning goes, so just catching up with the pack should bring an 18% gain.

The layoffs should bring more money to the bottom line, others say. PayPal stock could double in five years. Visa has done that over the last five.

Bulls are also teasing PayPal’s AI initiatives, like its Advanced Offers. But most of these are things Amazon and Google have done for years.

Still. It’s a cheap stock, it does have valuable brands like Venmo, and Chriss still has that new car smell about him. PayPal doesn’t have to become the unquestioned industry leader for investors to see a gain, the thinking goes. Just get back into the middle of it again.

The PYPL Stock Forecast

PayPal’s history is one of first-mover advantage.

When payments were new, when international payments were expensive, when Web stores were starting out, PayPal got there first and took the business.

That heritage still exists in the PayPal stablecoin launched last year. The aim is to enable purchases of real goods with cryptocurrency, making PayPal a key feature in online consumer wallets.

When the earnings call comes out, I’ll be listening closely to hear how that’s going, and about the take-up of other innovations announced last month.

The danger is that the Cloud Czars are still coming, and they won’t let up. Being first to market puts a target on your back.

As of this writing, Dana Blankenhorn had LONG positions in GOOGL, AMZN and AAPL. 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 a Seeking Alpha report, Macquarie downgraded BABA stock to “neutral,” with analysts concerned about the underlying company’s balancing of defensive and expansionary endeavors. These contradictory directives could potentially cap earnings upside for the foreseeable future. As well, the experts — led by Ellie Jiang — reduced the price target by 4% to $85.40.

Not helping matters was a muted performance in Alibaba’s fiscal third quarter (ending December). Per CNBC, revenue missed expectations, growing just 5% on a year-over-year basis. Conspicuously, the company’s e-commerce business and cloud computing division remained slow.

Moreover, Macquarie stated that Alibaba’s leadership team committed to stepping up investments to defend its market leadership. Therefore, they decided to cut EBITDA estimates to reflect the more aggressive spending.

To be sure, Alibaba expressed a commitment to reignite growth in its core businesses of e-commerce and cloud computing. However, skepticism lingers over the company due to massive broader headwinds.

BABA Stock Contends with a Challenging Economic Backdrop

For BABA stock and the underlying Chinese economy, it’s a tale of two cities. On the one hand, the U.S. — which represents a key destination for China’s exported products — has seen its economic engine rise from the ashes of the Covid-19 disruption. But on the other hand, consumer spending in the world’s second-biggest economy hasn’t roared back to pre-pandemic levels yet.

Compounding matters for BABA stock is a deep concern among investors and officials that China no longer represents a reliable growth engine, per The Economist. As it pointed out, “[t]he country’s property boom is over. Cash-strapped developers are afraid to start building flats and people are afraid to buy them. The infrastructure mania has run out of road: indebted local governments lack the funds.”

On the surface, then, Macquarie appears right to be skeptical about BABA stock. However, that doesn’t necessarily mean that Alibaba is doomed for failure. But the path to progress will likely be difficult, which depends on the company’s ability to pivot.

Specifically, Nikkei Asia argued that China’s slowdown won’t stop growth in Southeast Asia. If so, that might be a lifeline for BABA stock. Over the years, Alibaba has invested billions in Lazada, a Southeast Asian online shopping platform that it controls.

Why It Matters

Still, even with Alibaba’s concerted efforts in boosting Lazada, it still faces significant pressure. Last month, the company issued a headcount reduction. Further, the business arm competes against fierce rivals in the region. Nevertheless, the good news is that BABA stock still commands a strong buy consensus view among analysts overall.

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

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

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Nvidia is on the verge of passing both Amazon (NASDAQ:AMZN), which is now worth $1.76 trillion, and Google owner Alphabet (NASDAQ:GOOG, NASDAQ:GOOGL), which has a market cap of $1.82 trillion. Saudi Aramco, which is valued at just under $2 trillion, is within Nvidia’s reach as well.

Nvidia Is Racing to Take Amazon’s Crown

After that, the stock would have a ways to go before it catches Microsoft (NASDAQ:MSFT) and Apple (NASDAQ:AAPL), which are each worth around $3 trillion. Still, Nvidia’s potential ascension to becoming the third most valuable company on the planet would be an amazing milestone.

The question now for investors though is whether Nvidia shares may eventually run out of steam. After all, the stock has climbed more than 200% in just the past 12 months and has skyrocketed nearly 1,800% in the past five years. That type of appreciation is unsustainable. Even if you don’t subscribe to the notion that what goes up must eventually come down, it seems reasonable to expect the pace of Nvidia’s stock price appreciation to inevitably slow.

But when will that happen? Nvidia bulls still have much to cheer. The company is expected to report in a few weeks that its earnings per share more than quintupled in its fiscal fourth quarter. Analysts are forecasting a revenue surge of more than 200%. For the full fiscal 2024 year, sales are estimated to more than double. And Wall Street thinks revenue for fiscal 2025 will soar another 60% and that earnings will be up more than 70%.

Despite this, Nvidia shares still trade at a reasonable (if not exactly dirt cheap) valuation of 33 times earnings estimates for its next fiscal year. And it’s worth wondering if those fiscal 2025 earnings estimates are too low. The consensus earnings projection for next year has increased by nearly 25% over just the past three months. If Nvidia reports another blowout quarter on Feb. 21, analysts may have to frantically raise their forecasts again just to keep up.

The Bottom Line: NVDA Stock Forecast

Of course, there is no guarantee that Nvidia will eclipse the market caps of Amazon and Alphabet anytime soon. Both of those companies have momentum as well, with each of them benefiting from AI investments too. But Nvidia is the quintessential Wall Street darling right now. Nearly all (34 out of 38) of the analysts that cover the company have Nvidia rated a buy.

Sure, there is the substantial risk that Nvidia is an increasingly crowded trade and that even the slightest miss on earnings or indication that profit growth won’t live up to the considerable hype could send investors fleeing for the exits. Nvidia also must contend with increased competition in AI from rivals like Advanced Micro Devices (NASDAQ:AMD) and Intel (NASDAQ:INTC). But for the time being, Nvidia is the undisputed champion of the semiconductor industry.

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

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

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Solana (SOL-USD)

Solana (SOL-USD) wasted no time and showed a triple-digit increase in value over the past year. The $30 mark seemed unattainable at the beginning of 2023, but now this cryptocurrency recently exceeded $100 per coin. The historic high set in 2021 has raised expectations for the coin. With a market capitalization of roughly $45 billion, Solana is the fifth most valuable token in the world.

A 340% year-over-year return made some investors think the same rapid growth in 2024 was unlikely. But with the bull run approaching, SOL is an ideal candidate for the list of cryptos to buy.

This first-tier blockchain shows its versatility and adaptability. It supports decentralized applications (dApps), smart contracts, and NFTs. At the same time, one transfer will cost about $0.00025. This set of advantages has led to recent forecasts of a 50-fold increase in value within a year.

SOL successfully maneuvered through the crypto events of 2023. The FTX scandal failed to sink the cryptocurrency, and the court’s decision on XRP, on the contrary, played into its hands. Thanks to the successful reactions of the SOL chart to market changes, it has become the most efficient highly capitalized cryptocurrency in recent times. 

Solana’s potential lies in the project’s technological achievements. The processing speed is more than 50,000 transactions per second. This outshines competitors who also charge higher fees for gas. Thanks to these advantages, Solana’s Jupiter temporarily took the lead from Uniswap Ethereum in terms of daily trading volume.

Cardano (ADA-USD)

Since 2017, Cardano (ADA-USD) has been gaining the trust of crypto enthusiasts due to its functionality and reliability. And the community has been able to appreciate this cryptocurrency, as the market capitalization has surged to $18 billion. The convenience of creating verifiable smart contracts and dApps has led to an increase in the project’s profitability.

To remain at the top of the list of cryptos to buy, Cardano continues to build up its technical capabilities. The new version of ClientLab (v0.5.1) shows the project’s potential. Conway Era support and easy integration with the QuickTX management API allows users to register DReps. 

In their accounts, they can also create proposals, delegate authority, and vote. Cardano has already launched eight new projects and continues to grow. The community appreciates the opportunities provided. This is evidenced by the platform’s indicators. ADA users conducted more than 4 million transactions in December and January. Another 17 Cardano projects are under development. As these releases come out, the crypto world may see spikes in ADA’s value.

The price surge at the end of 2023 rekindled hope for Cardano’s upward trajectory. Some analysts even see similarities in the token’s behavior now and during the 2020 bull cycle. Repeating the historical models would mean a transition to a consolidation phase until April 2024. In this case, ADA could break the historic high of 2021. The rally promises to make investors rich with a possible price of the cryptocurrency around $8.

Time (TIME-USD)

With the Web 3.0 market projected to reach $5.5 billion by 2030, the demand for qualified specialists in this industry is increasing among big IT companies. Chrono.Tech (TIME-USD) is the first company to meet these needs by offering an enhanced alternative to UpWork. Launched by Australian entrepreneur Sergei Sergienko, the platform quickly gained a major share in the recruiting market. Today, it is used by over 100,000 freelancers and 2,000 employers, including whales like Gate.io, Rarible (RARI-USD), and 1inch (1INCH-USD). 

The product’s innovativeness is based on the use of digital contracts that fully automate both the work search and hiring process and the contractual relationship between the parties, with terms such as payments, deadlines, and KPIs coded onto the blockchain. Mutual financial interests are secured through digital escrow, which locks the funds once the contract is signed and releases them upon the work approval. 

Chrono.Tech plans to introduce cryptocurrency payments for full-time employees via smart contracts in 2024. This may increase the company’s share significantly. Employees will be able to receive automatic compensation every hour, day, week, or month. Leading analysts anticipate significant growth in the Web3 labor market in 2024, making TIME promising entities to watch in the new year. 

Leading analysts anticipate significant growth in the Web3 labor market in 2024, making TIME promising entities to watch in the new year. 

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

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

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Of course, putting this move in context is important. Shares dropped from a close last week just shy of 50 cents per share down to around 5 cents yesterday. Thus, today’s tripling of the stock price still has NSTG stock pegged around 15 cents. That’s a stark drop from where it was trading last week.

With so many investors flushed out of this stock, it’s clear that speculators are at work with this micro-cap name. Let’s dive into what’s driving the action in NanoString today.

Why Is NSTG Stock Surging Today?

In order to grasp how such moves can happen, let’s first take a look at the trading volume with this little-known genomics company. Today, more than 360 million shares have traded hands so far (and there’s plenty of time left in the session). On an average day, the stock’s trading volume is closer to 3.7 million shares.

That’s nearly 100 times the average daily volume we’re seeing today alone. The company’s very low price per share (I mean, you can buy a lot of shares for 5 cents apiece) undoubtedly has something to do with this volume increase. However, considering that the stock was trading 10 times cheaper on a relative basis yesterday compared to last week, this 100-times surge in volume can’t be accounted for by stock price movements alone.

Indeed, speculators appear to be out in full force with certain low-volume stocks once again. Today’s move in NSTG stock is reminiscent of many of the short squeezes we saw litter the market two years ago. Investors who are seemingly looking past the company’s dismal outlook — (bankruptcy isn’t a catalyst that generally invites investors to buy the dip) — are buying this stock in heavy quantity today, looking to bid up its price and push short sellers out of their positions.

There’s also another dynamic that could be building here. Specifically, those who have shorted this stock may have looked to exit their short ahead of a full-on bankruptcy proceeding. At 5 cents per share, nearly all of the juice has been squeezed out of this lemon. Accordingly, in order to close out these positions, investors could have been forced to buy back shares at the market price, potentially driving some of today’s move.

In any case, NSTG stock looks to be, for all intents and purposes, a zero. Investors looking to pick up some pennies here may be doing so in front of a steamroller. Some serious caution is warranted when looking at this stock from any angle.

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, 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 majority of stocks in the index continue to lag its overall performance. So lopsided is the current performance of the S&P 500 that when the index rose 1% on Feb. 2, the average stock in the index was down on the day. The gain in the S&P 500 on Feb. 2 was mostly due to a 20% rise in the share price of Meta Platforms (NASDAQ:META) on news that the company plans to pay a dividend for the first time. The current rally may eventually broaden out.

But for now, it remains highly concentrated in a few names. Here are three doomed S&P 500 stocks to dump before they dive: February 2024.

The New York Times Co. (NYT)

The New York Times Co. (NYSE:NYT) suddenly looks vulnerable. While the newspaper publisher’s fourth quarter 2023 print contained some impressive figures, it also unveiled some worrying trends. On the positive side, the company added 300,000 paid digital subscribers in the final months of last year, and the continued growth pushed its annual revenue for digital subscriptions above $1 billion for the first time. But the Times also saw a drop in advertising and raised concerns about artificial intelligence.

Overall advertising at The New York Times declined in Q4 by 8.4% to $164.1 million. Digital advertising fell 3.7% while print advertising dropped 16.2%. The number of print subscribers also continues to decline, falling to 660,000 at the end of 2023 from 730,000 at the end of 2022. And the Athletic, the sports site the company bought two years ago, continues to lose money, posting a $4.4 million loss for Q4 2023. The share price fell 8% after its latest print, making The New York Times look like a doomed stock.

United Parcel Service (UPS)

United Parcel Service (NYSE:UPS) continues to struggle after the Covid-19 pandemic ended. So far in 2024, UPS stock is down 7%, bringing its 12-month decline to 22%. The company’s shares have been sliding lower ever since it lowered its forward guidance for this year, citing weak demand for its services. The world’s largest delivery and logistics company said that it expects 2024 revenue of $92 billion to $94.50 billion, which is below Wall Street forecasts of $95.57 billion.

The company said that it continues to wrestle with weak demand, particularly among e-commerce shipments. For the final quarter of 2023, UPS reported earnings per share (EPS) of $2.47, which was a smidge ahead of Wall Street forecasts of $2.46. Revenue totaled $24.92 billion, missing the consensus expectation among analysts of $25.40 billion and marking the sixth consecutive quarter that the company’s revenue missed expectations. Sales were down 8% from a year earlier. Along with its latest print, UPS announced 12,000 job cuts.

BP (BP)

British Petroleum (NYSE:BP) put the best spin possible on its most recent earnings report. Or rather than company distracted media and analysts by announcing that it plans to buyback a total of $14 billion of its own stock through 2025, including $3.50 billion in this year’s first half. News of the increased stock buybacks dominated the headlines and led to BP stock rising 5%. However, beneath the cheering there were some worrisome signs in BP’s latest print, including a big drop in its annual profit.

BP reported a net profit for all of last year of $13.80 billion. That was half of the record $27.70 billion the company earned in 2022 when crude oil prices were above $100 a barrel. The company also announced that its net debt stood at $20.90 billion at the end of 2023, basically the same level it was at a year earlier. And the European oil giant now has a new and unproven CEO in Murray Auchincloss, who replaces former CEO Bernard Looney who resigned last fall after a workplace scandal.

BP stock has declined 5% in the last 12 months and is down 15% over the past five years, making it a doomed S&P 500 stocks to dump before it dives further.

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

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

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Both stocks are up on very heavy volume, and these returns don’t reflect the surges these penny stocks saw earlier today. In fact, HKIT stock was up more than 500% this morning before giving up some of its gains.

Let’s dive into what’s driving these moves amid a relative lack of news for these two companies today.

HKIT and HOLO Stock: Why Are These Penny Stocks Rocketing Higher Today?

As InvestorPlace financial news writer Eddie Pan pointed out earlier today, Hitek is the “latest Chinese stock to mysteriously surge higher.” Chinese officials have made it clear they’re intent on supporting the stock market and pumping cash into certain key areas. Investors have taken this narrative as a reason to load up on specific Chinese equities, though the capital inflows into this company that still only has a market capitalization of just $50 million after today’s move is unknown.

For MicroCloud Hologram, there was some news yesterday about an industry association partnership, but that shouldn’t have been enough to move the needle for this Chinese company.

We’ve seen other Hong Kong and China-based companies surge in a similar fashion in the recent past. One credible idea floating around in investing circles is that a mix of limited liquidity, the domicile of these companies, and a low share price/low float can lead to short-term squeezes in such stocks. This appears to be the case in both these names once again today.

Personally, I think both stocks are far too speculative and carry far too high of a risk profile for the average investor. While these moves are certainly incredible to watch, I think the viewing is best from the sidelines. When these stocks do eventually settle down toward more reasonable valuations, the market equilibrium price for these stocks will likely be a lot lower.

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, 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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While the fiscal trajectory remains challenging, the slight improvement in the projections signals a more optimistic outlook for the U.S. economy. Investing in these big-data stocks has the potential to propel your portfolio to success, mirroring the achievements of our thriving economy.

Palantir Technologies (PLTR)

Palantir Technologies (NYSE:PLTR) is a SaaS company focused on the development of data integration and software solutions for the private and public sectors, primarily through the implementation of AI. Founded by people heavily involved in AI, such as Peter Thiel, Palantir has been among the most innovative companies in this sector.

Q4 2023 earnings records exceeded expectations, leading to a surge of nearly 20%. This has defied market expectations, with analysts expecting a potential downside of 27.097%. However, financial indicators, and certain institutions, suggest otherwise. On receiving Q4 earnings, Citigroup gave a neutral outlook on PLTR, an upgrade from the previous sell position. 70% YoY domestic revenue growth, GAAP net income of $93 million, with a 15% margin, and multiple other metrics indicate strong financial growth. 2023 was also the first fiscal year where Palantir posted a profit.

While governmental interest in Palantir is drying up, the commercial market is propelling its growth. The company reports that it is expecting a revenue of $640 million from U.S. commercial markets, a 40% YoY increase. PLTR’s Artificial Intelligence Platform (AIP), a data integration and analysis service for enterprises, has become a leading product.

As the demand for AI solutions increases, Palantir has great growth potential. Continued innovation will lead to Palantir continuing to do great. Strong financials and growth outpacing Wall Street expectations make it a strong buy.

MongoDB Inc. (MDB)

MongoDB Inc. (NASDAQ:MDB) offers a general-purpose database platform, which it hosts on the cloud, on-premise, and in a hybrid environment. Its stock currently trades for $457.39 and is up 105.45% from 12 months prior. 

MongoDB’s products particularly stand out from its competitors due to their relevance to AI. Many organizations today are creating generative AI using large language models. To power these generative AI platforms, companies need to use vector databases that store data in numeric representations. To take advantage of this trend, MongoDB released the MongoDB Atlas vector search. The tool uses machine learning to navigate these databases, providing users with high accuracy of information and accelerated data indexing.

With its strong competitive advantage in AI capabilities, MongoDB reported $432.9 million in revenue, a 30% increase YoY. The company also continued its strong customer growth and now has 46,400 customers compared to 39,100 12 months ago. 

In summary, generative AI provides a huge opportunity for MongoDB. Combined with its double-digit revenue and customer growth, these factors position the company for success. 

Datadog Inc. (DDOG)

Datadog Inc. (NASDAQ:DDOG) is an observability and security platform for cloud applications and provides infrastructure monitoring, database monitoring, cloud security management, and more. Currently, large amounts of data are collected every day and companies require data analytics platforms to understand the information. Combined with high levels of cloud adoption across enterprises, these factors are driving growth in the observability tools and platforms market which is expected to grow at a CAGR of 11.7% until 2028. Datadog, a key player in this market, stands to benefit. Its stock has already shot up 62.62% in the past 12 months and currently trades for $130.62. 

Datadog is currently experiencing strong growth, and management expects it to continue. For Q3 2023, the company reported revenue of $547.5 million, up 25% YoY. For Q4 2024, management predicts revenue to be as high as $568 million which would be a YoY increase of 21%. In addition to revenue growth, Datadog has been focusing on profitability. In Q3 2023, the company achieved a gross margin of 82.3% compared to a gross margin of 81.3% in Q2 2023 and 79.7% in Q3 2022. 

Moreover, Datadog recently released a generative AI copilot, Bits AI, which helps users identify relevant Datadog workflows to solve issues. Bits AI’s natural language capabilities can facilitate deeper investigations to draw meaningful information from large amounts of data, streamline incident response, and prevent issues from recurring. 

To summarize, Datadog’s strong growth, increasing profitability, and AI integration make it a compelling investment.

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

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

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

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The good news is that there are a number of securities that pay dividends on a monthly basis, helping to deliver a steady stream of income. This article will discuss three of the best monthly dividend stocks right now.

STAG Industrial (STAG)

STAG Industrial (NYSE:STAG) is an owner and operator of industrial real estate. It is focused on single-tenant industrial properties and has about 563 buildings across 41 states. The focus of this real estate investment trust (REIT) on single-tenant properties might create higher risk compared to multi-tenant properties, as the former are either fully occupied or completely vacant. However, STAG Industrial executes a deep quantitative and qualitative analysis on its tenants.

As a result, it has incurred credit losses that have been less than 0.1% of its revenues since its initial public offering (IPO). As per the latest data, 53% of the tenants are publicly rated and 31% of the tenants are rated “investment grade.” The company typically does business with established tenants to reduce risk.

In late October, STAG Industrial reported financial results for the third quarter of fiscal 2023. Core funds from operations (FFO) per share grew 3.5% over the prior year’s quarter, from 57 cents to 59 cents, exceeding the analysts’ consensus by 2 cents, thanks to the sustained strength of the REIT’s tenants and material hikes in rent rates. Net operating income grew 7% over the prior year’s quarter while the occupancy rate edged down sequentially from 97.7% to 97.6% and interest expense increased 12% year-on-year due to high interest rates. STAG Industrial has proved fairly resilient to the surge of interest rates to 16-year highs thanks to its decent balance sheet.

STAG Industrial has a well-laddered lease maturity schedule, with a weighted average lease term of 4.9 years and about half of the leases maturing after the end of 2025. Thus, the cash flows of the REIT can be considered fairly reliable under normal business conditions.

STAG has increased its dividend for 12 consecutive years. STAG Industrial currently offers a 4.2% yield and has never cut its dividend throughout its short history.

Agree Realty (ADC)

Agree Realty (NYSE:ADC) is an integrated REIT focused on ownership, acquisition, development and retail property management. Richard Agree founded Agree Development Company, which is the predecessor to Agree Realty Corporation, in 1971. Agree has developed over 40 community shopping centers throughout the Midwest and Southeast.

The company’s business objective is to invest in and actively manage a diversified portfolio of retail properties net leased to industry tenants. Agree Realty has paid a growing dividend for 11 consecutive years.

On Oct. 24, 2023, Agree Realty reported third-quarter results for fiscal year 2023. The company revealed significant investment activity and positive performance metrics. The company invested $411 million in 98 retail net lease properties and completed eight development projects totaling over $41 million in committed capital. Despite a 12.4% decrease in net income per share attributable to common stockholders, Core FFO per share increased by 2.1% to 99 cents, and adjusted funds from operations (AFFO) per share rose by 4.2% to $1.

The quarter also saw strategic financial moves, including a $350 million 5.5-year term loan at a 4.52% fixed rate, share sales generating $87 million in net proceeds, and a balanced balance sheet with a 4.5 times net debt to recurring EBITDA ratio. In terms of net income, the three-month period ending Sept. 30, 2023, showed a 5.6% increase to $39.7 million, compared to the same period in 2022.

The company maintained a shareholder-friendly dividend policy, declaring an October monthly dividend of 24.7 cents per common share. That’s a 2.9% year-over-year increase. ADC stock yields 5.1%.

EPR Properties (EPR)

EPR Properties (NYSE:EPR) is a specialty REIT that invests in properties in specific market segments that require industry knowledge to operate effectively. It selects properties it believes have strong return potential in Entertainment, Recreation and Education. The REIT structures its investments as triple net, a structure that places the operating costs of the property on the tenants, not the REIT. The portfolio includes about $7 billion in investments across 300+ locations in 44 states, including over 250 tenants.

EPR reported third-quarter earnings on Oct. 25, 2023, and results were better than expected on both the top and bottom lines. FFO came to $1.47 per share, which was 8 cents better than expected. Revenue was $189 million, 17% higher year-over-year. That is also better than estimates by almost $26 million. The company said it continues to see ongoing stabilization in its portfolio, as well as stronger box office sales, and a master lease agreement with Regal, a large movie theater tenant.

For many years, EPR enjoyed exceedingly high occupancy rates, which afforded it pricing power and higher margins over time. The coronavirus pandemic upended many of EPR’s tenants. But with the pandemic in the past, EPR’s exposure to experiential parts of the economy is a growth driver. Recent results seem to indicate that the worst is behind EPR, and the Regal restructuring is a big step forward.

We are forecasting the payout ratio to decline to 71% of AFFO by 2028, which is in line with most years in the past decade. EPR’s competitive advantage is its portfolio of specialized properties. EPR has methodically identified the most profitable properties through years of experience and focuses its investments in these areas.

EPR stock currently yields 7.6%.

On the date of publication, Bob Ciura 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.

Bob Ciura has worked at Sure Dividend since 2016. He oversees all content for Sure Dividend and its partner sites. Prior to joining Sure Dividend, Bob was an independent equity analyst. His articles have been published on major financial websites such as The Motley Fool, Seeking Alpha, Business Insider and more. Bob received a bachelor’s degree in Finance from DePaul University and an MBA with a concentration in investments from the University of Notre Dame.

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This teaming agreement will allow Palantir to bring its artificial intelligence (AI) and machine learning (ML) technology into the commercial space domain, providing an edge that could help strengthen national security capabilities.

It’s no secret that Palantir’s dynamic reach across multiple tech markets has made it a winner among AI stocks. But now it is venturing into even more lucrative areas, giving investors more reason to bet on PLTR stock. Once again, the company appears to be strategically placing itself to offer investors exposure to another booming market.

Taking PLTR Stock to the Moon

When a stock shoots up 50% in value in just five days, it’s hard not to be impressed. That’s exactly what we’re seeing from PLTR stock. Indeed, while shares haven’t seen much growth for most of the past month, the company is now managing a successful turnaround. This growth is due mostly to the Q4 earnings smash, but partnering with Voyager Space is also an important step — and for multiple reasons.

Firstly, the commercial space markets are skyrocketing in more ways than one. Recent data indicates that the space tourism market is expected to expand at a compound annual growth rate (CAGR) of almost 50% between 2024 and 2032, for instance. Space stocks that can secure a share of the lucrative and fast-growing space markets will likely have tremendous growth potential. While Voyager is still privately held, by joining forces with it, Palantir could also establish itself as a space stock, attracting even more interest from investors.

That brings us to another reason why this agreement is an important step. Palantir already has a demonstrated history of using its technology to enhance national security measures. In June 2023 alone, it received three separate contracts to provide data-as-a-service capabilities to the U.S. Air Force. Now, Palantir will be able to help enhance “national security capabilities in the commercial space domain” through use of its AI technology at a time when AI and ML are quickly transforming the industry. This partnership could make Voyager a leader in its sector, thereby boosting PLTR stock as it grows.

Ready to Blast Off

2024 is looking like an excellent year for both AI stocks and space stocks. What’s more, Palantir is taking a place at the forefront of both of these sectors. If the company continues expanding its reach across these industries, it may even double investors’ money as InvestorPlace contributor Vandita Jadeja predicts.

All told, it’s fitting that this company is venturing further into the space domain. Right now, PLTR stock looks like it could be headed for the moon.

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 is a Reporter for InvestorPlace, where his work focuses primarily on financial markets, global economic trends, and public policy. O’Brient writes a weekly column on recent political news that investors should be following.

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This year’s Super Bowl will happen in Las Vegas and will certainly be among the most-watched events of the year. Let’s dive into some of the prices fans can expect to pay to partake in the festivities this year.

Ticket Prices

For those looking to attend this game in Las Vegas, let’s just say it’s not going to be cheap.

Fans can buy tickets on a variety of platforms, including StubHub, Ticketmaster and Vivid Seat. Currently, the cheapest seats are trading hands just shy of $6,000 apiece (depending on the platform), with some tickets at the higher end of the spectrum coming in at more than $50,000.

The Super Bowl 58 weekend in Vegas is more than just the game. Those who buy tickets will have plenty to do in Sin City. More than 450,000 people could flock to Las Vegas just for the festivities alone. Whether it’s watch parties, events or other star-studded entertainment, there will be plenty to keep fans busy. Of course, each of these outings has a price tag, so fans may want to set a budget before getting on a plane or hopping in the car.

Of course, there’s always the option of watching this event at home. But there’s nothing like the real thing. The question is whether the tailgate and all-day events are worth potentially half a year’s salary for some individuals.

Plenty to Budget For, Aside From the Game

The Excessive Celebration Bowl Bash in Vegas will feature 25 live shows, cirque-style acts, a Grid Iron Girls show, a Silent Disco and prizes for a truly excessive celebration. Bruno Mars will perform at Dolby Live, while Adele will have her “Weekends with Adele” at Caesars Palace. Comedians Tom Segura and Bert Kreischer will perform stand-up shows at the MGM Grand Garen Arena. So, even those who aren’t fans of the game can find a way to be entertained (and empty their wallets).

Ultimately, plenty of events are available for ardent fans to get involved in the game, each with its own price tag and associated costs (the food and drinks aren’t free). For those watching at home with a cable subscription, these are the only costs, but they can add up. However, the average viewer will spend more than $86 a person to watch the game at home, a number that actually came in lower than I was expecting — considering how expensive Super Bowl parties can be.

For those without cable, streaming the game will come at a cost, as it’s included in several streaming packages that aren’t free. Those who already have Paramount Plus, YouTube TV, Hulu with Live TV or Fubo can watch the game as part of their monthly subscription cost. These services each have varying costs ranging from $6 to $80 per month.

The Experience Economy Remains Strong

My view is that experiences matter. Whether it’s spending $86 on food and drinks at home or shelling out $50,000 for the best seats in Las Vegas and making a weekend out of it, fans will find a way to justify the cost in the name of being there live or just enjoying the game.

However, it’s important to consider the opportunity cost of spending money on any experience. If it’s not your thing, investing that money (yeah, I know, boring) can provide greater long-term happiness. It’s really just a question of priorities. But you only live once.

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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Some analysts saw metaverse as a potential new phase in the evolution of the internet, and often described as the next significant revolution in digital technology. Metaverse envisions a fully immersive, three-dimensional virtual space where users can interact, work, play, and participate in a digital economy, transcending the traditional boundaries of the internet as we know it today. 

This digital universe proposes to blend virtual reality (VR), augmented reality (AR), and video where users “live” within a digital universe. Mark Zuckerberg, a leading voice in tech, was particularly instrumental in propelling the metaverse narrative. Demonstrating his commitment to this vision, Zuckerberg took a significant step in October 2021 by rebranding Facebook to Meta (NASDAQ:META), signaling a strategic pivot towards the metaverse.

However, more than two years after this bold move, Zuckerberg’s ambitious vision for the metaverse appears to be encountering significant challenges. Reality Labs, Meta’s division dedicated to virtual and augmented reality technologies, has incurred losses measured in tens of billions of dollars. 

While Meta stock has skyrocketed in recent months, the rally is a result of improving cost efficiencies and Reels taking off rather than metaverse investment paying off. While these losses can be attributed to long-term investments, with Meta not anticipating immediate returns, the lack of substantial progress raises concerns about the viability of such a massive gamble. 

Here we look at 3 doomed metaverse stocks that investors should avoid until the macroeconomic environment improves.

Match Group (MTCH)

Match Group, Inc. (NASDAQ:MTCH) is a leading provider of dating products designed to help people connect online and help them find relationships. The company has become synonymous with online dating through its portfolio of well-known brands. 

Its key products include Tinder, the swipe-based app that revolutionized the dating scene; Match.com, one of the first dating websites that cater to individuals seeking long-term relationships; Hinge, marketed as the app “designed to be deleted” for those looking for serious connections; and OkCupid, which uses a question-based algorithm to find compatible matches. 

Together, these platforms cater to a diverse range of preferences and demographics, making Match Group a dominant force in the global online dating market. However, this dominance hasn’t really translated into a strong stock performance with shares down ~80% from the record high set in 2021. 

Amid these issues, Match Group decided to reduce its focus on developing metaverse dating features within Tinder and has abandoned its plans to introduce a Tinder Coins currency within the app.

The company recently reported an earnings per share (EPS) of $0.81 for the quarter, significantly better than the anticipated $0.50. Its revenue was reported at $866.2 million, exceeding analyst expectations of $861.33 million.

However, Match Group disclosed a 5% YoY drop in its paying user base during the fourth quarter, with the number falling to 15.2 million. For the upcoming first quarter, the company projects its revenue to be in the range of $850 million to $860 million, which was slightly below the average analyst forecast of $867 million.

Matterport (MTTR)

Matterport Inc. (NASDAQ:MTTR) is a technology company specializing in spatial data capture and creating digital twins of physical spaces. Its innovative platform enables users to create, modify, navigate, and share 3D spaces online, revolutionizing industries like real estate, architecture, and construction by enhancing virtual tours, property listings, and project planning processes.

The company reported results for the third quarter in November with a 35% YoY increase in total subscribers, reaching 887,000. It also saw a 28% rise in spaces under management, totaling 11.1 million. Total revenue grew by 7% from the previous year to $40.6 million, with subscription revenue climbing 20% to $22.9 million.

Overall, Matterport stock surged on these results. However, these gains did not prove to be sustainable with shares plunging in December. The decline in Matterport’s stock price in December was driven by a change in investor sentiment regarding the company’s short-term earnings potential, which appears to be years away from aligning with its substantial market capitalization. Hence, investors are likely to stay away from this doomed metaverse stock in the near term.

Unity Software (U)

Unity Software Inc. (NYSE:U) is one of the leading platforms for creating and operating interactive, real-time 3D content. Widely used by game developers, it also serves industries such as film, automotive, and architecture. Unity’s comprehensive suite enables the development, management, and monetization of 2D, 3D, VR, metaverse, and AR experiences for mobile, console, and desktop platforms.

Its shares fell more than 25% in the last few weeks as the company continues to cut jobs in an effort to reduce costs as it fights to accelerate its top-line growth. Just in November, Unity’s shares dropped almost 15% after the company refused to provide a financial forecast for Q4 2023. Moreover, investors are likely to stay away from Unity stock in the near term amid rising uncertainty.

The company cited ongoing changes that may result in further job reductions and the discontinuation of certain products as reasons for this decision. Overall, Unity stock is down about 15% over the last 52 weeks.

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

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

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Last year, there were nearly $33 billion in stock sales to just $9 billion in purchases. He completely exited several long-held stocks like Johnson & Johnson (NYSE:JNJ), Mondelez International (NASDAQ:MDLZ) and UPS (NYSE:UPS) while others he just trimmed here and there. The other day, he filed notice with the Securities and Exchange Commission (SEC) that he again reduced his stake in ratings agency Moody’s (NYSE:MCO) to 11%. At one point he owned 20% of the stock.

Below are three stocks he was selling in 2023. Let’s see if these Warren Buffett stocks to sell should be jettisoned from your portfolio too.

Amazon (AMZN)

Although Berkshire Hathaway still owned a sizable position in Amazon (NASDAQ:AMZN) at the end of the third quarter, Buffett pared back the holding by 551,000 shares, or over 5%. If you’ve heard of buyer’s regret, do you think Buffett has seller’s regret?

Amazon reported stellar earnings the other day as artificial intelligence (AI) drove the cloud service business to new heights. AMZN stock soared on the news. Since the end of October, Amazon is up 28%.

It’s not likely Buffett regrets the decision as he rarely seems to be affected by short-term stock movement. He’s generally a long-term investor who likes a bargain. On the surface, Amazon certainly didn’t seem to be one back then and definitely doesn’t appear to be so today after the big rally. Yet cloud services will be a big growth driver for the foreseeable future, and Amazon Web Services is the industry leader by far. Buffett still owns 10 million shares worth $1.2 billion. I’m not sure I’d be a seller of Amazon at these levels.

HP (HPQ)

The second stock Buffett sold down is computer hardware maker HP (NYSE:HPQ). Although the stock is off 10% in 2024, it’s still up 6% from the end of the third quarter. But go back to the second quarter when the Oracle of Omaha began selling his shares. HP stock is down 14%, so on the whole, Buffett seems to have gotten it right.

PC sales are in a secular decline. Gartner says the worldwide PC market contracted 9% in the third quarter last year, and the eighth consecutive quarter shipments fell. Yet HP hopes to lead a turnaround in sales with the release of an AI PC this year.

Already, HP sells AI workstations for enterprise customers. But a consumer-class AI PC could cause a renaissance in sales. AI is infusing everything and turbocharging growth. An AI-enhanced PC could have the same effect as it takes work, gaming, and entertainment to new levels.

Yet, that’s all speculative. Therefore, it’s understandable that Buffett would want to reduce his HP holdings. I’d still be tempted to hold onto at least a small stake in the event a new revolution does materialize.

Chevron (CVX)

Integrated oil and gas giant Chevron (NYSE:CVX) has been on the outs with Buffett for a long time. Yet, the investing guru dives ever deeper into the sector by simultaneously buying Occidental Petroleum (NYSE:OXY). When Buffett sold 53 million shares of Chevron last year, he purchased 54 million shares of Occidental.

Of course, Berkshire Hathaway still has $18.6 billion worth of Chevron stock. But at $14.5 billion, Occidental is closing the gap. Both stocks have been a dud, though, each dropping around 7% in value since the end of the first quarter.

Where Chevron does shine, however, is in paying dividends. The oil and gas giant pays $6.49 per share yielding 4.3% annually. Conversely, the Permian Basin star pays just $0.68 per share and yields 1.2%. Also, Chevron just announced an 8% dividend hike to $6.52, the 37th consecutive year the energy stock raised its payout.

Oil stocks have long underperformed the market, but there is still a big role for leaders like Chevron to play in the future. 

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

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

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With PricewaterhouseCoopers (PwC) projecting AI’s contribution to the global economy at a staggering $15.7 trillion by 2030 and McKinsey highlighting generative AI’s potential to add between $2.6 trillion and $4.4 trillion across diverse applications, the allure of AI stocks is undeniable. These figures effectively validate the sector’s explosive growth while underscoring the critical role of leading AI stocks in shaping a future rich with innovation and financial promise.

Alphabet (GOOG,GOOGL)

Despite the chatter about Alphabet (NASDAQ:GOOG, NASDAQ:GOOGL) lagging behind Microsoft and other tech giants in the AI race, such views might be too hasty. Alphabet, Google’s parent company, remains poised to silence the skeptics. Introducing AI-driven products, including Bard and the Search Generative Experience, showcases Google’s commitment to evolving with technology. Moreover, the company’s reservoir of high-quality training data, drawn from its massive user base across multiple products, gives it a key edge in developing sophisticated, context-aware AI features. In December 2023, Google released Gemini, its latest and most powerful LLM, proving Alphabet is still a key player in the AI race.

Alphabet’s recent earnings report further solidifies its standing in the tech arena. With an earnings per share (EPS) of $1.64, surpassing analyst expectations, and a 13% jump in sales on a year-over-year basis of $86.31 billion, Alphabet demonstrates robust financial health. On top of that, the Google Cloud segment is reporting a 26% bump, marking a significant turn into profitability with earnings of $864 million in the fourth quarter of 2023. This profitability signals Alphabet’s successful pivot towards sustainable cloud computing and AI expansion.

Microsoft (MSFT)

Microsoft (NASDAQ:MSFT) is a true juggernaut in the AI realm, positioning itself as a formidable contender in the AI chip market. With plans to introduce ‘custom-designed’ AI-optimized chips, Microsoft is in an excellent position to challenge the current leadership and redefine its positioning among the tech giant. While Nvidia currently leads the pack in 2024, Microsoft’s strategic ventures into AI technology highlight its potential to disrupt and innovate efficiently within this competitive space.

Elevating its status, Microsoft has effectively reclaimed the title of the world’s most valuable company, with its valuation soaring past the $3 trillion mark. This surge is largely attributed to the AI boom and the success of ChatGPT since its debut in November a couple of years ago, propelling Microsoft’s stock by over 50% and adding a staggering $1.5 trillion to its market cap. Despite facing a post-earnings dip, Microsoft’s ambitious efforts to monetize AI through initiatives, including Office Co-Pilot, signal a transformative shift in productivity tools. This strategic focus on AI, alongside powerful growth in cloud services and Office365, cements Microsoft’s trajectory for continued expansion and innovation.

Nvidia (NVDA)

Nvidia (NASDAQ:NVDA) continues to demonstrate its prowess across a myriad of technological frontiers, from AI and quantum computing to blockchain, marking itself as a multilayered growth engine for investors. As the vanguard of GPU-accelerated computing, Nvidia has efficiently carved out a niche in sectors poised for exponential growth: gaming, professional visualization, data center operations, and automotive technologies.

The company’s recent financial achievements underscore the effectiveness of its diversified strategy. In the third quarter of 2023, Nvidia reported a staggering 205.5% year-over-year increase in sales, reaching a whopping $18.12 billion. This growth was complemented by a monumental bump in net income and diluted earnings per share (EPS), which soared over 1,250% year-over-year to $9.24 billion and $3.71, respectively. These figures comfortably shattered previous records while significantly exceeding market expectations, with EPS and revenue beating forecasts by 18.7% and 12.5%, respectively. Under the leadership of CEO Jensen Huang, Nvidia’s focus on GPUs, CPUs, networking, AI foundry services, and Nvidia AI Enterprise software has positioned it at the forefront of technology’s next frontier.

Baidu (BIDU)

Baidu (NASDAQ:BIDU) is often referred to as China’s Google, making major strides in the generative AI landscape with its strategic pivot towards a comprehensive AI-driven ecosystem. Through its advanced foundation models and the development of a robust ERNIE bot, Baidu has created a platform that efficiently enables AI-native applications, attracting more than 10,000 businesses to its monthly subscription service. This move enhances Baidu’s product offerings and solidifies its position in the AI sector, capable of handling millions of daily queries with ease.

Furthermore, the integration of ERNIE into Samsung’s Galaxy S24 marks a major collaboration, introducing real-time translation features and cutting-edge AI capabilities poised to rival Apple’s latest iPhone. Despite facing a 22% drop in 2023, Baidu’s financial performance remains incredible, with more than 20% growth in operating income, a 5% increase in total revenue, and a 6% rise in non-online marketing earnings. This financial resilience, coupled with Baidu’s commitment to AI innovation, positions the company for a strong rebound.

Amazon (AMZN)

Amazon (NASDAQ:AMZN) remains at the forefront of integrating AI to revolutionize its operations, primarily in the retail and cloud computing spheres. With the use of generative AI, Amazon is transforming inventory and workforce management within its retail operations, employing predictive analytics for customer needs while streamlining processes. Amazon Web Services (AWS), a true leader in the cloud computing domain, effectively enhances its AI offerings with custom solutions, including Amazon Personalize and Amazon Forecast, catering to the growing demands of customer personalization and business forecasting.

The company’s recent fourth-quarter results further underline Amazon’s burgeoning profitability, with major prospects for growth from its AI tool offerings and advertising sales. As Amazon continues to expand its AI capabilities across various sectors, it is uniquely positioned to reap substantial benefits from the burgeoning AI market. The strategic implementation of AI technologies bolsters Amazon’s operational efficiency and sets a robust foundation for future revenue streams, cementing its status as a key player in the AI revolution.

Accenture (ACN)

Accenture (NYSE:ACN), headquartered in Dublin, Ireland, is making major strides in the AI sector, aligning with the explosive demand for the technology. With a robust portfolio of more than 1,450 patents in AI, Accenture is at the forefront of empowering sectors, including retail and manufacturing, to harness and scale AI capabilities. The firm’s introduction of specialized services utilizing generative AI for developing personalized enterprise solutions showcases its commitment to innovation. This commitment is reflected in its financial achievements. Accenture reported a whopping $300 million in GenAI sales last fiscal year and an impressive $450 million in bookings for the first quarter of FY2024.

Furthermore, Accenture’s financial performance further emphasizes its market leadership and operational excellence. The company recently surpassed market expectations by reporting earnings per share (EPS) of $3.27, outperforming the expected $3.14 while achieving sales of $16.20 billion, above the forecasted $16.17 billion. These results highlight Accenture’s consistent ability to exceed earnings estimates, evidencing the firm’s sturdy financials.

SoundHound AI (SOUN)

SoundHound AI (NASDAQ:SOUN) has been one of the most promising players in the investment world with its state-of-the-art voice recognition technology and its strategic expansion into many sectors. Its foray into the restaurant sphere with an AI assistant that understands natural speech for order-taking exemplifies its innovative capabilities. This advancement enhances operational efficiency and underscores the firm’s adaptability and growth potential within the AI domain. As we move into 2024, SoundHound’s distinctive approach to AI model training, emphasizing human interaction, positions it for a promising future.

Since its 2021 IPO, SoundHound has evolved from its roots in music identification to a key player in the broader AI space. The launch of Houndify 2015, a voice-enabled conversational interface, marked SoundHound’s early dedication to AI, prepping it for extensive applications across multiple sectors. On the financial front, the firm seems to be killing it with a 33% increase in sales last year and a substantial improvement in its adjusted EBITDA, highlighting SoundHound’s robust financial health and trajectory toward profitability. Moreover, its innovative drive and expanding market influence make it a strong contender in the tech investment space, signaling a bright future ahead.

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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A stock isn’t necessarily a buy just because it is more than 10% below its all-time high. However, some stocks only have valuation as a concern. When these stocks dip, they offer investors a greater margin of safety. If these growth stocks to buy dip down, you may want to consider accumulating shares.

E.l.f. Beauty (ELF)

E.l.f. Beauty (NYSE:ELF) is a beauty brand experiencing rapid growth and healthy profit margins. The company reported 76% year-over-year (YoY) net sales growth in the second quarter of fiscal 2024 while increasing net income by 184% YoY.

E.l.f. Beauty closed out the quarter with a 15.4% net profit margin. The corporation also raised its outlook for fiscal 2024. This context comes as the company achieved 19 consecutive quarters of net sales growth, with fiscal 2023 representing a significant takeoff in the company’s revenue growth rate.

The company is gaining market share, while many of its competitors are losing ground. This data point comes from Nielsen XAOC and is displayed on the 10th page of e.l.f. Beauty’s Q2 FY 2024 Earnings Webcast Presentation.

ELF makes itself different from the competition by avoiding unethical ingredients. Consumers can use e.l.f. Beauty products without wondering if an animal had to suffer to get the ingredient. Unfortunately, many beauty firms overlook this practice in exchange for the ingredients they seek.

This beauty company’s differentiation and product line resulted in the equity gaining 1,684% over the past five years. Shares are up by 130% over the past year.

Celsius Holdings (CELH)

Celsius Holdings (NASDAQ:CELH) omits many of the unhealthy ingredients common in other sports drinks. The company’s beverages do not contain high fructose corn syrup, sugar, artificial colors, gluten or aspartame.

The drink continued to fly off shelves and resulted in 104% YoY revenue growth in the third quarter of 2023. Net income also more than doubled YoY. The stock has delivered a 76% gain for investors over the past year and recorded a 5-year gain of over 4,244%.

Despite the high growth rates, Celsius Holdings is still in its early innings. The company makes the overwhelming majority of its revenue from North America. Its global footprint is very small, and the company is investing in international expansion.

Celsius Holdings’ entry into international markets will allow it to tap into a vast addressable market. Strong demand in North America suggests consumers are looking for healthier alternatives. Celsius Holdings can deliver on this sentiment while rewarding long-term shareholders.

Fortinet (FTNT)

After a few bad quarters, Fortinet (NASDAQ:FTNT) shares are rallying. The stock is up by 20% year-to-date and has gained 330% over the past five years. Fortinet offers cybersecurity solutions in secure networking, security operations and universal SASE.

These three segments have a total addressable market of $125 billion in 2023. TAM is expected to reach $199 billion by 2027. Universal SASE has the highest projected compounded annual growth rate at 20% from 2023 to 2027.

Most of Fortinet’s billings are in the Secure Networking segment. The segment made up 70% of Fortinet’s total billings, while Security Operations and Universal SASE made up 10% and 20% of Q3 2023 billings, respectively.

The firm’s main weakness is a deceleration in billings growth. The growth rate only came in at 5.7% YoY in the third quarter compared to 30%+ in previous quarters. Lower billings growth accompanied lower revenue growth, but profit margins remained elevated.

Other cybersecurity stocks have soared past Fortinet, but the firm now has a more reasonable valuation. FTNT stock has more to gain when growth reaccelerates.

On this date of publication, Marc Guberti held long positions in ELF, CELH and FTNT. The opinions expressed in this article are those of the writer, subject to the InvestorPlace.com Publishing Guidelines.

Marc Guberti is a finance freelance writer at InvestorPlace.com who hosts the Breakthrough Success Podcast. He has contributed to several publications, including the U.S. News & World Report, Benzinga, and Joy Wallet.

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For example, as recently as September 2023, the conventional wisdom suggested that the United States Drug Enforcement Association (DEA) was ready to reclassify marijuana from a Schedule I controlled substance to a Schedule III controlled substance. 

The industry and investors are still waiting.  

Nevertheless, hope springs eternal for some investors. And hope is the currency of penny stocks. If you have the patience and appropriate risk tolerance, here are three cannabis penny stocks that have the potential to turn a modest investment into a million dollars. 

Cresco Labs (CRLBF) 

As they say in sports, sometimes the best deal is the one you don’t make. That’s the broad theme that Cresco Labs (OTCMKTS:CRLBF) hopes to pitch to investors. In late 2023, the company backed away from acquiring Columbia Care. In doing so, the company prioritizes its current targeted growth strategy in its core markets instead of gaining scale. 

Cresco is “on a mission to normalize, professionalize and revolutionize cannabis.” One example of this strategy is the company’s limited-edition THC-infused buffalo wing sauce. The sauce is a collaboration between the Fifty/50 sports bar in Chicago’s Wicker Park and Cresco and went on sale in select markets on February 2, 2024.  

The company sells both retail and medical cannabis products in 10 states that make up the company’s core market. Furthermore, Cresco cites that it offers the industry’s #1 portfolio of cannabis brands according to its customers.  

Cresco is not yet profitable; its revenue in the last two quarters is down year-over-year. However, analysts are bullish on CRLBF stock, setting a $3.32 price target with 9 out of 13 analysts offering a Strong Buy rating.  

WM Technology (MAPS) 

Including WM Technology (NASDAQ:MAPS) on this list of cannabis penny stocks is a reminder that the cannabis business is a business. That means in addition to the products that make their way to consumers, there are a lot of less pleasant tasks.  

WM Technology provides cannabis companies with software solutions that help them deal with a complex regulatory environment. That will only become more important if, and more likely when, the legislation around cannabis becomes more favorable.  

The company’s financials don’t show anything spectacular in either direction. Revenue in the first three quarters of the year is down from the prior year, but earnings paint a more mixed picture, showing the company may be gaining efficiency.  

That’s one reason MAPS stock is down 31% in the last 12 months. And trading at just 99 cents a share as of this writing, it’s a stock likely to show a lot of volatility. It also isn’t heavily covered by analysts. However, the consensus price target of three analysts is $2.37, which would be a 144% gain.  

GrowGeneration (GRWG) 

GrowGeneration (NASDAQ:GRWG) makes this list of cannabis penny stocks that have the potential to be a millionaire maker, because it’s already done it once. Opportunistic investors that bought GRWG stock in early 2020 saw the stock rocket 800% higher. That could turn a $10,000 investment into a million dollars and more.  

The problem is the stock is back to that 2020 level as the leading hydroponic and other pot cultivation equipment retailer is facing the same problems that other retailers are facing.  

On the financial front, GrowGeneration is telling investors the same story as the other cannabis penny stocks on this list. Revenue is falling year-over-year, and the company, which was profitable in 2021, has dipped back into negative earnings territory. On the positive side, the losses are narrowing; the company has a cash balance on its books with no debt.  

Like many cannabis companies, GrowGeneration would benefit from a cut in interest rates. Analysts remain bullish on GRWG stock with four Strong Buy ratings and a $4.37 consensus price target.

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, 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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Indeed, a discerning eye is essential, as the market’s enthusiasm often outpaces the financial realities of certain ventures. With governments worldwide rallying to foster a sustainable energy future, the investment landscape is ripe with both opportunities and pitfalls.

Therefore, we spotlight three green energy stocks currently waving red flags within this context of change and challenge. These entities, amidst the fervor for green innovation, have signaled a ‘sell’ due to their lackluster performance.

SolarEdge Technologies (SEDG)

SolarEdge Technologies (NASDAQ:SEDG), renowned for enhancing solar panel efficiency through its power optimizers and inverters, has encountered a stormy period. The company’s stock plummeted 76% over the past year, compelled by a challenging market landscape to lay off 16% of its workforce in a bid to streamline operations. This strategic contraction underscores SolarEdge’s battle against softened demand for its solar inverters and regulatory shifts in the U.S. that have further strained the solar market.

Recent financial disclosures further paint a grim picture, with Non-GAAP earnings per share falling short by 21 cents and revenue tumbling 13.3% year-over-year. The operational recalibration has yet to stem the tide, as evidenced by an 88% dip in non-GAAP operating income from the previous year.

Looking ahead, SolarEdge’s fourth-quarter revenue forecast signals a stark contraction, anticipating figures of $300 million to $350 million, significantly below analyst expectations of $715 million. This revision reflects the acute challenges SolarEdge faces amidst a recalibrating solar market and evolving economic conditions.

Plug Power

Plug Power’s (NASDAQ:PLUG) journey on Wall Street has been fraught with hurdles, right from its IPO marred by a class-action lawsuit alleging investor misinformation to recent legal woes resulting in a $1.25 million SEC fine due to accounting discrepancies. This backdrop has contributed to a steep 73.67% plunge in its stock over the past year.

In the latest quarter, Plug Power’s financials failed to meet expectations, with revenue falling short by $23.02 million and a GAAP earnings per share deficit of 47 cents, 16 cents below forecasts. These figures indicate a larger-than-anticipated quarterly loss and revenues that didn’t hit the mark.

Furthermore, the company attributed its underwhelming performance to “unprecedented supply challenges” in the North American hydrogen market, including significant shortages and operational inefficiencies across hydrogen facilities. This situation has adversely affected deployment schedules, fuel prices, and the reliability of service infrastructure, leading Quant analysts to label it a ‘strong sell.’

Sunrun (RUN)

Sunrun (NASDAQ:RUN), a front-runner in the U.S. residential solar market, finds itself navigating through a turbulent phase. The company’s valuation has plummeted by 44% in the past year, exacerbated by a hefty $1.2 billion charge stemming from its acquisition of Vivint Solar, signaling a significant devaluation.

Additionally, Sunrun is currently under the scrutiny of an IRS audit, with allegations from Wall Street analyst Gordon Johnson of a potential $40 billion in undeserved tax subsidies, dubbing it possibly “the biggest tax fraud in the history of the U.S.”

The financial turbulence is mirrored in Sunrun’s recent quarterly performance, where revenues dipped by 10.8% year-over-year, falling short of market expectations by $11.9 million. Moreover, the company’s earnings per share registered a substantial miss, with a GAAP Actual of negative $4.92, veering off from projections by $4.82. This underperformance has led SA analysts to cast RUN as a green energy stock to sell, signaling a cautious or bearish outlook for the company’s near-term prospects.

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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Blue-chip companies may face near-term headwinds. These can be industry or company specific. Strong fundamentals ensure that blue-chip names navigate challenging times and continue to invest in growth. Therefore, when blue-chip stocks trade at a valuation gap, the name may deliver high total returns in the next few years.

This column focuses on three blue-chip stocks that have been relatively depressed in the last few quarters. However, these stocks are poised for a break-out rally with an improving growth outlook. Let’s talk about the positives that make these undervalued names worth considering.

Newmont (NEM)

Newmont (NYSE:NEM) is among the best blue-chip stocks to buy for high total returns by 2025. After a correction of 31% in the last 12 months, NEM stock looks undervalued and poised for a strong comeback rally.

It’s noteworthy that gold continues to trade above $2,000 an ounce even after a relatively strong jobs report in January. Further, geopolitical tensions will support gold prices, and I am bullish on the precious metal’s remaining uptrend.

Newmont is well-positioned to benefit from an investment-grade balance sheet and quality asset base. To put things into perspective, Newmont reported $6.2 billion in liquidity and a net-debt-to-adjusted-EBITDAX of 0.7x as of Q3 2023.

Further, for Q3, the company reported $1 billion in operating cash flows. With gold trending higher, the annual cash flow visibility will likely be $4.5 to $5 billion for the year. This would provide flexibility for dividend growth and aggressive exploration investments.

Pfizer (PFE)

Pfizer (NYSE:PFE) is another blue-chip stock that has witnessed a deep correction in the last few quarters. This has been behind growth concerns as COVID-19 vaccine revenues decline. However, the correction in PFE stock is overdone, and at a forward price-earnings ratio of 12.4, the stock looks attractive. Further, the stock offers a dividend yield of 6.11%.

While revenue de-growth has impacted sentiments, I see the following positives. First, Pfizer received a record number of nine new molecular entity approvals by the U.S. Food and Drug Administration in 2023. This will have a positive impact on revenue in the coming years. Further, the current product pipeline has 31 molecular entities in phase three. The deep pipeline will ensure the continued launch of new products.

Further, Pfizer has been active on the acquisition front. The company completed the acquisition of Seagen in December 2023. This strengthens Pfizer’s position in the oncology segment. By 2030, Pfizer expects $25 billion in incremental revenue from new business deals.

AT&T (T)

AT&T (NYSE:T) stock has been recovering after a sustained sell-off. In the last six months, T stock has increased by 23.7%. However, even after the uptrend, the stock trades at an attractive forward price-earnings ratio of 8. I expect the rally to sustain this 6.3% dividend yield stock.

Recently, AT&T reported Q4 2023 numbers with several positives to note. First, AT had a full-year free cash flow of $16.8 billion. This was higher than the guidance, and robust free cash flows would support deleveraging and dividends.

Further, the company’s mobility service and fiber business witnessed subscriber growth. The company’s mid-band 5G spectrum covers 210 million people, and I expect growth to be sustained backed by a strong infrastructure.

I must add that AT&T has guided for $17 to $18 billion in free cash flows for this year. With robust FCF, the company expects to achieve a net debt-to-adjusted EBITDA target of 2.5x by the first half of 2025. With all these positive developments, T stock will likely close the valuation gap in the coming quarters.

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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Each of the three cryptos below has a unique catalyst investors are watching closely. I think these tokens have real long-term value and could certainly go on a run if the sector sees strong momentum again. There’s always the potential for another interest rate cut-fueled rally later this year.

With that said, let’s look at these three top cryptos.

Ethereum (ETH-USD)

The world’s second-largest cryptocurrency, Ethereum (ETH-USD), doesn’t require an introduction. The backbone of the DeFi sector, Ethereum is commonly associated with its smart contract platform, being the first major player in utility generation in the crypto space.

For optimistic investors, a potential SEC-approved Ethereum spot ETF could attract more institutional interest to this token. While uncertainty remains around whether such an ETF will ultimately get approved, I think such news would likely have an outsized impact on Ethereum relative to Bitcoin.

That’s because Ethereum provides users with real-world value and has a much more robust ecosystem of decentralized applications. With the network now operating under a proof-of-stake consensus, there’s also the option of earning yield by staking Ethereum tokens. Thus, the range of ETF offerings could be more vast and intriguing than those provided for Bitcoin.

This is the under-the-radar catalyst investors should focus on regarding Ethereum.

Solana (SOL-USD)

Solana (SOL-USD) excels in the world of layer one networks—Solana’s speedy transactions position the blockchain well as key competitors to Ethereum in the burgeoning DeFi sector. With more than $1.57 billion in total value locked, Solana is the primary blockchain investors are focused on when it comes to the world of non-fungible tokens (NFTs).

I think a resurgence of growth for NFTs could be a hidden catalyst that Solana investors aren’t focusing on. Solana’s recent NFT boom facilitated $2.1 billion in stablecoin transfers, generating $591,416 in fees and $850 million in trading volume. That’s something to write home about. Accordingly, analysts foresee continued growth on the horizon, with the token hitting as much as $150 apiece if this rally continues.

I have to admit another NFT surge does seem unlikely, and I have yet to see many widespread and viable use cases for these tokens. However, value is in the eye of the beholder, and if we do see an NFT renaissance, Solana ought to be a go-to token to consider.

Aptos (APT-USD)

Aptos (APT-USD) has seen some rather impressive upward surges in recent months. Indeed, after settling below $5 per token late last year, Aptos now trades closer to the $9 range. That’s the kind of growth investors are after.

Aptos’ collaborations with various blockchain networks and prominent crypto figures position it as a promising asset. In early January, Aptos surged as OKX endorsed its NFT inscriptions. This move affirmed Aptos as a leading blockchain for NFTs, leveraging its unique Move programming language. If more partnerships and listings are announced, Aptos could be an under-the-radar token with the potential to move much higher.

Of course, betting on future catalysts that are uncertain is, in itself, a risky strategy. But Aptos’ network growth and its surge into a top-30 spot by market capitalization seems to validate the market’s view that this project has underlying value.

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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Snap (SNAP)

How about Snap (NYSE:SNAP)? Shares of the social media company are down 34% following poor revenue figures and weak forward guidance. The company behind the Snapchat social media platform announced earnings per share (EPS) of 8 cents, which was better than consensus estimates of 6 cents. Unfortunately, revenue in the fourth quarter of 2023 came in at $1.36 billion versus the $1.38 billion expected on Wall Street.

Worse, Snap forecasted a loss of $55 million to $95 million in the current first quarter of 2024. That is much higher than analysts’ projections for a Q1 loss of $21.9 million. The company continues to struggle following a downturn in digital advertising coming out of the COVID-19 pandemic. This was the sixth consecutive quarter of single-digit growth or sales declines. Recently, Snap announced that it will cut 10% of its global workforce. But it remains to be seen if that move will ultimately help its finances.

SNAP stock is now down 6% over the last 12 months and looks doomed.

Boeing (BA)

Another day brings another safety concern regarding Boeing’s (NYSE:BA) 737 Max jets. The latest bad news from the company is that it discovered two improperly drilled holes in some fuselages, and that discovery will further delay the delivery of about 50 of its aircraft. Also, aviation investigators found that some required bolts on 737 Max planes are missing entirely. That is just the latest in a series of safety problems at Boeing dooming the company’s stock.

Boeing and its line of 737 Max aircraft have endured two fatal crashes and repeated groundings by the Federal Aviation Administration (FAA) in the last five years. Boeing is under intense regulatory scrutiny following the mid-air blowout of a door plug on an Alaska Air (NYSE:ALK) flight that occurred on Jan. 5. Boeing also continues to have problems with sub-contractor Spirit AeroSystems (NYSE:SPR) that manages much of the construction on the 737 Max planes.

The problems have conspired to push BA stock down 17% year-to-date. Over the last five years, Boeing’s share price has declined nearly 50%, making this a doomed stock to dump before it dives further.

Peloton (PTON)

Peloton’s (NASDAQ:PTON) stock is down 26% less than six weeks into the year and trading near a 52-week low. This after the maker of internet-connected treadmills and stationary bikes issued woeful Q4 2023 financial results and provided a dire outlook. The company guided for a loss in the current first quarter of between $20 million and $30 million. Analysts had a loss of $2 million penciled in for Peloton. The company now says it hopes to return to revenue growth in a year’s time.

Clearly, the turnaround strategy Peloton announced coming out of the pandemic is not working. Management had developed a strategy to focus less on treadmill and bike sales and instead try to grow subscriptions to its online fitness classes. But now, Peloton says it is having trouble growing its paid app subscribers and sees an uncertain future ahead. That is not what analysts or investors wanted to hear from the company. Consequently, PTON stock has dropped 72% in the last 12 months.

On the date of publication, Joel Baglole 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.

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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Since that day, TSLA stock has dropped more than 20%. 

For all the hype that surrounded the Cybertruck’s release, it has become clear that the highly anticipated EV hasn’t been the catalyst Musk hoped it would be. This has led more than a few experts to question the EV company’s growth prospects, particularly as a troubling earnings report casts further doubt on Tesla’s future.

TSLA Stock in the Age of the Cybertruck

There’s no denying that TSLA stock is facing several obstacles as it heads further into 2024. 

The company recently reported earnings for the fourth quarter of 2023, coming in below analyst forecasts on both earnings and revenue. On top of that, Tesla warned investors that EV growth may slow down this year. That would make sense, as the EV market is recovering from a difficult year marked by falling demand. 

So, the Cybertruck seems to have debuted at an inopportune time. It doesn’t help that concerns regarding its functionality are rising, either. Reports of frustratingly long charging times and problems with how the truck performs on snowy road conditions have cast doubt over the model’s practicality and utility.

These instances haven’t set a positive tone for the Cybertruck’s first year. If an expensive truck can’t perform the functions that its consumer base needs, the EV will likely have a difficult time making market inroads. 

Scott Acheychek, CEO of REX Shares, thinks that while the Cybertruck may be visually impressive, it may also not be as practical as the vehicles it competes against. He told InvestorPlace that the Cybertruck could end up a “novelty item for tech enthusiasts and Tesla diehards.” Additionally, it won’t be easy for the EV to compete against electric versions of already-popular trucks, like Ford’s (NYSE:F) F-150 Lightning and the Chevy Silverado EV from General Motors (NYSE:GM).

Michael Schmied, a lead financial consultant at Kredite Schweiz, offered InvestorPlace further context on the Cybertruck’s limited appeal. He notes that, while the vehicle’s features may seem impressive on the surface, it still represents a venture into an unexplored area for Tesla. The company has never produced a truck or vehicle intended for off road purposes and towing.

“While the Cybertruck boasts advanced features such as an ultra-hard stainless steel exoskeleton, Tesla Armor Glass, and the ability to tow over 14,000 pounds, [it’s] a significant departure from traditional pickup trucks. Its high cost could be a deterrent for the typical pickup truck consumer. Affordability is a key factor in vehicle purchases, and until the cost of owning an EV like the Cybertruck comes down, I believe the majority of pickup truck users will stick with more traditional, and affordable, models.” 

Entering a new product market can compromise a company if the reception from consumers is poor. And since the Cybertruck is facing problems with both its design and software systems, it’s looking increasingly like Tesla will have a difficult time establishing itself as an EV truck maker. That may cast more uncertainty over its growth prospects and further compromise TSLA stock.

Other experts have even said that the Cybertruck isn’t actually a truck, noting that it’s more similar to a two-door El Camino in terms of design and structure. Since its release, even the Cybertruck’s towing capabilities have drawn criticism from drivers.

These complaints severely limit the model’s utility as a work and heavy-duty vehicle. The many consumers who purchase trucks primarily do so for work-related purposes or with a heavy-duty job or activity in mind. If the Cybertruck’s problems with towing and off-road travel persist, it will be hard to market the EV as a better option than other EV trucks. 

Rising Competition on the Road Ahead

It doesn’t help that many of Tesla’s competitors are pumping out more traditional, affordable electric trucks. The Cybertruck has a starting price of $60,990, substantially higher than the $39,900 price tag Musk originally promised. That puts it above some beloved truck models that have recently gone electric. For example, the Ford F-150 Lightning starts at $49,995 while the Chevy Silverado EV will hit the market soon for $52,000. The market will become even more crowded when the GMC Sierra EV releases this year with a starting price of $50,000.

“The growing competition in the electric truck market from companies like Rivian and Ford, with more conventional designs, could challenge Tesla’s market share,” Rob Dillan, founder of EV charging platform EVHype, told InvestorPlace. “This could be a critical factor for Tesla’s long-term stock performance.”

Meanwhile, although other electric trucks like the GMC Hummer EV and Rivian (NASDAQ:RIVN) R1T boast higher price tags, the reviews more than make up for it, with emphasis placed on luxury and style. Reviews for the Cybertruck haven’t been as positive. Despite giving the EV an 8/10 rating, even the BBC’s Top Gear admits that “the way it drives […] isn’t ideal.”

Tesla has held an impressive EV market share, but it’s down significantly from the company’s roughly 79% share in 2020. The company clearly hoped that the Cybertruck would help give it an edge and retake lost ground. If anything, however, the new model is likely to drag Tesla down.

The Bottom Line

Unfortunately for Tesla, its problems aren’t likely to stop at the Cybertruck failing to drive growth. Some experts see Tesla’s latest vehicle as genuinely detrimental and fear it could end up pushing TSLA stock down further. 

Jefferies analyst Philippe Houchois stated that “cancelling [the] Cybertruck would probably be positive for shares” in a November note to investors before the start of deliveries. Instead, Houchois encouraged Tesla to focus on higher-volume vehicle opportunities. The analyst has since maintained a “hold” rating on TSLA stock and a $185 price target, below where shares currently trade.

Given TSLA stock’s poor performance of late, it makes sense that the analyst is sticking to his skeptical stance. The Cybertruck hasn’t spurred growth for Tesla so far. It’s looking like a novelty item and isn’t likely to appeal to the broader consumer base that actually buys trucks. 

Tesla appears to have picked the wrong vehicle to rely on for its turnaround. Less than three months out from its rollout, the Cybertruck has generated more uncertainty than hype. Its path forward looks highly questionable. 

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 is a Reporter for InvestorPlace, where his work focuses primarily on financial markets, global economic trends, and public policy. O’Brient writes a weekly column on recent political news that investors should be following.

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In recent years, the stock market has been facing much uncertainty. However, the S&P 500 surged roughly 20% over the past year. Long-term investors may expect a bumpy ride, but while uncertainties loom, consistent investment in robust businesses shows potential growth. Such investments allow one to capitalize on market highs and leverage downturns for additional investments. 

Although past performance doesn’t guarantee future success, resilient companies with solid use cases and a broad competitive advantage tend to thrive over time, contributing to a robust and diversified portfolio.  Here are three of the best industry-graded stocks that deserve a spot in your portfolio. 

McDonald’s (MCD)

Achieving 9% global same-store sales growth, McDonald’s (NYSE:MCD) is truly the fast food behemoth investors should never miss out on. The company boasts profitability and a record-high diluted earnings per share of $11.56. While the company’s 2024 outlook is less-than-positive with some analysts downgrading the company’s profitability on its claims of becoming more affordable, growth can still be possible over time if volumes rise as a result. Thus, many investors anticipate McDonald’s growth rate slowing to the low-single-digit level, and a flat operating profit margin in the coming year.

That said, McDonald’s moat around its core brand and global presence remains unchallenged. I have another company in the same industry on this list, for the same reason. Fast food sales tend to remain robust in times of trouble. As consumers look to trade down in their dining preferences, McDonald’s could conceivably see a larger share of wallet in the overall dining sector.

Renowned for pricing power, McDonald’s maintains a solid global market presence, and remains a buy in my books.

Berkshire Hathaway (BRK-B)

Even with looming inflation and economic struggles, Berkshire Hathaway (NYSE:BRK-B) is in a strategic and optimistic position. Boasting over $150 billion in cash, $341.1 billion in securities, the Warren Buffett-led giant stands out as a defensive conglomerate with growth potential. Buffett’s long-term approach emphasizes capital preservation, making it a prudent choice in downturns. With ample liquidity, Berkshire is poised to seize opportunities in a major correction.

Moreover, the company’s endurance an strength are evident in its growth. The company is poised to succeed in the coming years as it showcased impressive revenue growth, from $162 to $302 billion over the past two years. With substantial investments in Apple (NASDAQ:AAPL), Japanese firms, and others, the stock attracts value and momentum investors. As Berkshire pursues a long-term strategy, it is a value-conscious option amid tech uncertainties.

Restaurant Brands (QSR)

Prioritized for growth, this other fast food chain stock Restaurant Brands (NYSE:QSR) is also wasting no time in seizing new opportunities worldwide. With about 30,375 worldwide restaurants, major efforts are starting to pay massive dividends. The company has begun evaluating master franchisees and joint ventures. In Q3 2023, 250 new restaurants opened, fostering a 4.2% year-over-year increase in the overall count.

Restaurant Brands emphasize service improvement through training, operations, reimagining, and appealing menus for enhanced guest satisfaction, driving comparable sales. Core platforms, menu balance, delivery expansion, promotions, breakfast focus, and product launches fueled traffic and revenue growth. Additionally, the company prioritized digital sales, with a 40% year-over-year increase in Q3 2023, driven by kiosks and delivery, reflecting vital digitalization and Tim Hortons’ growth. Optimism surrounds international digital sales growth with diverse service modes.

Restaurant Brands International CEO, Josh Kobza, recently announced the acquisition of Carrols Restaurant Group, aiming for long-term, high-return investments. While solving a crucial issue adds a $750 million debt for Restaurant Brands, this deal hasn’t come without investor scrutiny. That said, if Restaurant Brands’ management team executes smoothly, the remodeling strategy could pay off big-time over the long-term.

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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Look at ACADIA Pharmaceuticals (NASDAQ:ACAD), for example. At one point, it traded at 70 cents, as it developed treatment for Parkinson’s disease psychosis. Years later, it would hit a high of $45.10 for a win of about 6,300%. 

Most recently, and in far less time, CRISPR Therapeutics (NASDAQ:CRSP) exploded from a low of about $40 to a high of nearly $77.50. Even Corbus Pharmaceuticals (NASDAQ:CRBP) popped from about $5 to a high of nearly $40 a share in months. All thanks to a positive Phase 1 trial of a potential cancer drug. 

The best news it that there’s plenty of undervalued biotech stocks with similar potential. In fact, here are three I’ve been watching for some time.

Viking Therapeutics (VKTX)

Viking Therapeutics (NASDAQ:VKTX) already ran from about $8.50 to a recent high of $24.63. But it’s still severely undervalued, even with positive trial data on its obesity treatment. After all, when it comes to obesity treatments, the potential is significant. 

Look at Eli Lilly (NYSE:LLY), for example. Now trading at $730 a share, it just blew earnings out of the water, thanks in part to obesity drug sales. In fact, sales of its Zepbound treatment soared to $175.8 million in less than a month, according to Seeking Alpha. That was well ahead of the $75 million expected by Wall Street.

VKTX could have similar potential. For example, in October, it posted promising data from a Phase 1 study of VK2735, which resulted in weight loss. Furthermore, speculation abounds that VKTX could be ta potential takeover target.

ADC Therapeutics (ADCT)

ADC Therapeutics (NYSE:ADCT) is a pioneer in the field of antibody-drug conjugates (ADCs). The company’s pipeline comprises ADCs in clinical trials for both hematologic and solid tumor cancers. Also, it’s undervalued, even after rocketing from about 50 cents to $4. 

For one, ADCs have become one of the hottest opportunities in biotech, according to Pfizer (NYSE:PFE) CEO Albert Bourla. That explains the reason PFE just bought Seagen for $43 billion, and why it wants to acquire even more ADC companies. 

Additionally, ADCT may be a buyout target for a major company. This followed an announcement of a extremely successful trial of a combination treatment to address relapsed follicular lymphoma (the second most common subtype of non-Hodgkin lymphoma), as noted in a company press release.

“In this first-ever study evaluating the combination of Zynlonta and rituximab in patients with relapsed or refractory follicular lymphoma, the overall response rate was 96% and the complete response rate was 85%, with a significant number of patients achieving an early response,” added Mohamed Zaki, MD, PhD, Chief Medical Officer of ADC Therapeutics.

Intellia Therapeutics (NTLA)

Finally, we have Intellia Therapeutics (NASDAQ:NTLA), a gene editing company. It just saw its closest competitor, CRISPR Therapeutics, explode on U.S. Federal Drug Administration (FDA) approval of its Sickle Cell Anemia treatment. 

Currently sitting at triple-bottom support, NTLA is wildly undervalued, with a good deal of upside potential. Further, Cathie Wood’s Ark Invest just bought 131,000 NTLA shares, now owning 11% of the shares outstanding. 

Also, the company recently announced the publication of positive interim Phase 1 data for NTLA-2002 in patients with hereditary angioedema in The New England Journal of Medicine.

“The interim NTLA-2002 clinical data published suggest that a single dose of NTLA-2002 may eliminate angioedema attacks for people suffering from hereditary angioedema,” said Intellia President and CEO John Leonard, M.D.

Lastly, the company is on track to initiate a global pivotal study for NTLA-2002 in the second half of this year. Therefore, undervalued shares of NTLA have solid catalysts moving forward.

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

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

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You don’t have to time the market and analyze the stock market every day. Buying and holding reliable growth stocks can lead to more returns without as much effort. While the Federal Reserve hasn’t committed to lowering interest rates in March, interest rates are likely to go down in 2024. That catalyst and other can trigger a new bull run, and these stocks stand to benefit. 

Perion (PERI)

Perion (NASDAQ:PERI) is a $1.5 billion advertising company that has delivered a 5-year gain above 800% for its investors. The company has tapped into several high-growth advertising channels. The company has no debt and recently put its extra capital to use with a $100 million acquisition of Hivestack. The acquired firm specializes in digital out-of-home advertising and has several corporations as its partners.

Perion isn’t only growing via partnerships. The company recently announced a partnership with Amazon (NASDAQ:AMZN) for its Vidazoo Platform. This partnership allows Perion’s advertisers to tap into Amazon Publisher Services and can lead to “a significant volume of premium demand from leading advertisers.” The partnership will help Perion work with leading publishers and connect them with premium advertisers.

Perion trades at a 10 forward P/E ratio and has a 0.46 PEG ratio. A major catalyst is the likely contract extension between Perion and Bing later in the year. This partnership represents roughly 45% of Perion’s total revenue and has been a boon for Perion and Bing.

Cloudflare (NET)

Many businesses rely on the internet to reach new customers and generate revenue. However, the digital world has many intrusion points that hackers can exploit. More companies are turning to Cloudflare (NYSE:NET) to keep their websites up and running.

Cloudflare is a cloud services provider and offers an enterprise-grade content delivery network. This dynamic results in faster load times, lower costs, and better protection against hackers.

Cloudflare’s services continue to experience heightened demand. The company grew revenue by 32% year-over-year in the third quarter of 2023. The firm narrowed its GAAP net losses from $42.5 million in losses to $23.5 million in losses. 

The stock can get more enticing as Cloudflare gets closer to profitability, but investors have already been loading up on shares. The equity is up by 57% over the past year and has gained 361% over the past five years.

Cloudflare innovated and accelerated its efforts in artificial intelligence to strengthen its product offerings. This development can increase retention rates and lead to higher subscription costs in the future.

Alphabet (GOOG,GOOGL)

Alphabet (NASDAQ:GOOG, NASDAQ:GOOGL) achieved double-digit revenue growth rates across its two key verticals: advertising and the cloud. Revenue in the Google advertising segment was up by 11.0% year-over-year while Google Cloud revenue jumped by 25.7% year-over-year. 

Those segments and Alphabet’s other verticals resulted in 13% year-over-year revenue growth for the company as a whole in Q4 2023. Alphabet’s “Other Bets” segment almost tripled year-over-year, and comments from Alphabet’s CFO Ruth Porat suggest that those investments will continue.

“We remain committed to our work to durably re-engineer our cost base as we invest to support our growth opportunities,” Porat stated in the press release. 

Alphabet achieved revenue and earnings growth while reducing its employee count by almost 8,000. The company let go roughly 4% of its workforce in 2023. Google Cloud once again delivered high profits while the company’s “Other Bets” segment delivers a relatively small net loss. Alphabet managed to narrow losses across this division.

HubSpot (HUBS)

HubSpot (NYSE:HUBS) is a customer relationship management platform that helps businesses grow. The company has over 194,000 customers in 120 countries and has a range of affordable and high-end plans.

The tech software firm increased revenue by 26% year-over-year in Q3 2023 and significantly narrowed its net losses. The company looks like it is on the verge of profitability and should scale up its profit margins quickly. 

This development would help the stock tremendously, but it has already been on an incredible run. Shares are up by 68% over the past year and have gained 270% over the past five years. HubSpot is charging closer to the all-time high it set in 2021.

The company’s customer base grew by 225% year-over-year which indicates solid demand for the platform. HubSpot is making money by raising its prices and getting customers to upgrade their plans. However, the ability to still attract new customers at this high rate points to more gains.

Elf Beauty (ELF)

Elf Beauty (NYSE:ELF) has outperformed the S&P 500 over several years. The index’s 79% gain over the past five years falls well below the beauty firm’s 1,790% gain during the same period. Elf Beauty has robust revenue and net income growth that suggest it can continue to outperform the index.

However, there is another catalyst for this stock that investors may be overlooking. Elf Beauty currently has a market cap just shy of $9 billion. This high growth stock is getting closer to the critical $12.7 billion market cap threshold.

Why is this number important? A company must exceed $12.7 billion in market cap to be considered for inclusion in the S&P 500 index. Elf Beauty fulfills the other key requirements and can get added to the index in the future. The equity has to rally by close to 50% from current levels to be within the range of S&P 500 inclusion.

Getting added to the index can help shares reach all-time highs as fund managers have to load up on the stock. However, the company is already doing just fine with 76% year-over-year revenue growth and 184% year-over-year net income growth in Q2 FY24.

Supermicro (SMCI)

Supermicro (NASDAQ:SMCI) shares soared to an all-time high after the firm reported earnings. While the stock quickly lost some ground, it indicates plenty of excitement for the stock. 

That excitement can continue to build as other artificial intelligence leaders report earnings. Supermicro also seems poised to beat its guidance in the third quarter of fiscal 2024 based on the rapid acceleration in business during the previous quarter. 

Revenue more than doubled year-over-year in the second quarter of fiscal 2024 while net income increased by 68.2% year-over-year. CEO Charles Liang expressed optimism that the company is generating more demand.

“While we continue to win new partners, our current end customers continue to demand more Supermicro’s optimized AI computer platforms and rack-scale Total IT Solutions,” he stated.

Supermicro offers great potential as it is, but an S&P 500 inclusion can help shares soar higher. Supermicro meets the standards for S&P 500 inclusion. The company has a market cap over $12.7 billion and reported positive earnings in the most recent quarter and year. 

Institutional investors will be forced to buy more shares for funds that track the S&P 500. This development will reward investors who accumulate SMCI stock before the inclusion.

Celsius Holdings (CELH)

Celsius Holdings (NASDAQ:CELH) is a small sports beverage company that is quickly becoming mainstream. The equity has a $12 billion market cap and has gained more than 3,700% over the past five years. 

The stock trades at a lofty 45 forward P/E ratio but has many growth catalysts that suggest a premium valuation is warranted. The firm grew its net income by 146% year-over-year in a record-breaking quarter. Revenue growth came in at 104% year-over-year.

Celsius Holdings enjoys an elevated 21.8% net profit margin and hasn’t even cracked into the international markets yet. The sports beverage company is just getting started on this venture as a partnership with Pepsi (NASDAQ:PEP) makes it more feasible. 

Building an international presence can help Celsius Holdings maintain triple-digit year-over-year revenue growth for several quarters or even multiple years. The growth engine can continue to reward investors who set lengthy time horizons for their positions.

On this date of publication, Marc Guberti held long positions in PERI, NET, ELF, SMCI, and CELH. The opinions expressed in this article are those of the writer, subject to the InvestorPlace.comPublishing Guidelines.

Marc Guberti is a finance freelance writer at InvestorPlace.com who hosts the Breakthrough Success Podcast. He has contributed to several publications, including the U.S. News & World Report, Benzinga, and Joy Wallet.

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Recently, Palantir announced its Q4 2023 earnings results, shocking the market because the results were unexpectedly good. The earnings report stoked optimism and increased investor confidence, allowing the stock to surge as much as 31% the next trading day. Palantir was able to see an impressive 20% year-over-year revenue rise, and it reached a revenue milestone of $608 million.

Now that the company is looking to grow more and expand its advertising and commercial segment, this places Palantir in a good light in the stock market and the AI race.

Additionally, demand for Palantir’s products surged, affirming its market presence after over two decades. The data analytics firm posted its fifth profitable quarter, marking its first good year. The market’s positive reaction, with PLTR stock climbing nearly 20% to end the day, underscores the power of Big Data and AI synergy. 

Renowned as the “best pure-play” in AI, Palantir’s promising outlook suggests this is only the start of its upward trajectory.

Excellent Yet Shocking Q4 Earnings

Palantir shares soared over 19% after-hours following Q4 earnings that surpassed revenue expectations. The company’s full-year 2024 guidance aligned with Wall Street estimates, and investors were quite happy, to say the least. Key figures include earnings per share of 8 cents (adjusted), revenue of $608.4M (up 20% year-over-year) and net income of $93.4 million.

Palantir’s CEO, Alex Karp, highlighted the unprecedented expansion and demand for AI models in the U.S. The company’s Artificial Intelligence Platform grew significantly, with over 600 pilots in 2023. Revenue projections for Q1 and the full year slightly missed Wall Street expectations.

Palantir, renowned for its collaborations with the U.S. government, noted a 70% surge in U.S. commercial revenue. Additionally, its U.S. commercial-customer base expanded by 55%. This consistent profitability positions Palantir for potential inclusion in the S&P 500.

Looking at the Numbers

Although financial results were modest, the stock gained traction due to notable achievements. Annual revenue reached $2.2 billion, up 17%, with a 20% surge in Q4 revenue. Palantir’s increased profits stemmed from controlled operating expenses. Its 2023 net income of $217 million contrasts starkly with the $371 million loss in 2022. Notably, Q4 alone saw a $97 million profit, a 152% increase from the previous year.

Despite its initial profitability in Q4 2022, investors should note that early profits often inflate, making its P/E ratio 360+ irrelevant. Looking ahead, a forward P/E of 73, while high, aligns with AI industry norms. Although its P/S ratio surged from single digits to 23 in a year, it’s below the 2021 bull market peak, suggesting investors accept higher sales valuations for Palantir.

Sustaining the AI Hype

Bank of America increased Palantir’s price target to $24, noting the significant impact of its AIP and its role in AI-driven decision-making. Wedbush also raised its target to $30, praising Palantir’s commercial success with AIP, likening it to a standout tech innovator.

However, some analysts expressed concerns regarding AIP’s growth sustainability and overall company valuation. Jefferies upgraded Palantir to “hold” with a $22 price target, citing AIP’s rapid expansion but remaining cautious due to valuation concerns.

There’s a Reason Why PLTR Stock Is Soaring

Investors may find Palantir’s current position promising for share acquisition. Though the company’s valuation is steep, customer confidence in its software implies strong pricing leverage. Rising customer numbers and U.S. commercial revenue signal sustained demand, potentially lowering sales and earnings multiples. 

I’m going to remain on the sidelines with Palantir for now. But I understand the bullish sentiment around this stock. To be honest, this earnings report has shifted my view on the company considerably. AI-related tailwinds are real, and this company is finally performing well from a fundamental standpoint. I didn’t think I’d be saying this a year ago, but maybe it is the time to give this big data company a shot.

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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According to the official press release, the Administration for Families and Children (ACR) and the Office of Refugee Resettlement (ORR) Medical Staffing and Support — both under the Department of Health and Human Services (HHS) — awarded the main contract to Caduceus Healthcare. In turn, Syra will provide multiple services to the Georgia-based health enterprise.

Per the statement, the contract “establishes a multiple-award vehicle for providing temporary shelter, care facilities, direct care services, medical care, case management, education, and transportation in support of HHS’s Influx Care Facilities.”

Naturally, Syra expressed satisfaction with the subcontractor award with an aim for further expansion. Syra Health CEO Dr. Deepika Vuppalanchi said the following:

“We are thrilled about the rapid success of our federal government solutions through this partnership that has awarded us our first federal-based contract. Our ability to service local, state, and now federal agency agreements, provides us with broadened capabilities and experience that will serve us well as we continue to bid on additional federal contracts.”

SYRA stock is a new public investment, with its initial public offering (IPO) occurring in late September last year.

Forged Credibility Drove Up SYRA Stock

Despite not spending much time in the business domain — having been founded in 2020 — Syra has hit the ground running. Per the press release, Syra has “served as a trusted partner to state and local governments offering specialized services catered specifically to the diverse needs of government healthcare.” Notably, the company announced the launch of its federal government solutions business unit last December.

Therefore, the transition between serving state and local government services to a federal subcontract demonstrates significant trust and credibility within the broader healthcare ecosystem. And it appears that at least some of the sentiment tied to SYRA stock may have stemmed from short covering activities.

Despite Syra being a young enterprise, it has already attracted some bearish speculation. According to Fintel, the short interest as a percentage of float is 5.73% while its short interest ratio stands at 8.42 days to cover. While neither statistic is remarkable from a short-squeeze candidacy perspective, the company is not well-known.

Even so, Fintel’s proprietary Short Squeeze Score rates SYRA stock as 88.73 out of 100. Based on its formulation, the higher the number, the greater the risk of a short squeeze materializing relative to peers.

Why It Matters

At the moment, no Wall Street analyst covers SYRA stock, likely due to its still-diminutive profile. Even with Thursday’s skyrocketing, the company’s market capitalization sits under $100 million at time of writing. In 2022, the company posted revenue of $5.6 million on a net loss of $2.12 million.

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

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

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If the previous bull market is anything to go by, it’s likely that there will be coins and tokens delivering 10x to 50x returns in relatively quick time. However, I would prefer to stay invested in the blue-chip of crypto assets than being overweight on speculative altcoins. Of course, some exposure to low market-cap cryptos makes sense for a market phase that’s likely to be euphoric.

For blue-chip crypto assets, I would prefer to buy and hold until 2030. It’s increasingly clear that cryptos are here to stay. As adoption increases, the blue-chip cryptos will deliver multibagger returns. Let’s talk about three cryptos to buy with millionaire potential.

Bitcoin (BTC)

Bitcoin has surged by almost 50% for year-to-date. However, I believe the best part of the rally for Bitcoin is due. There are catalysts for this year as well as for the long term that will ensure that the digital asset remains in an uptrend.

For 2024, a key catalyst for Bitcoin surging higher in the halving event. Going by past instances of halving, a big rally seems likely and the crypto will trade at new all-time highs. The Bitcoin spot ETF is also likely to witness steady inflow in the coming quarters. It’s worth mentioning here that Cathie Wood revised her 2030 Bitcoin target to $1.5 million after the spot ETF approval.

Another point to note is that there is a high possibility of expansionary monetary policies this year. In general, this is positive for all risky asset classes and Bitcoin is likely to surge higher if the dollar weakens.

Ethereum (ETH)

It’s estimated that the number of crypto users globally will touch one billion by 2030. A key point to note is that new users will look at the best crypto assets like Bitcoin and Ethereum (ETH-USD). The pure demand-supply factor is one reason to be bullish.

I further believe that Ethereum can potentially outperform Bitcoin in the next few years. One reason is that Ethereum development is only 55% completed as compared to 80% for Bitcoin. The roadmap is exciting and a catalyst for ETH trending higher. In my view, factors of lower transaction cost and higher speed are likely to be game-changers for Ethereum in the next few years.

As an important catalyst for 2024, Standard Chartered believes that Ethereum spot ETF is likely in May. If this scenario holds true, Ethereum is likely to surge to $4,000. This would also set stage for a bigger rally in the next five years as ETF assets swell.

BNB (BNB)

BNB (BNB-USD) is among the top cryptocurrencies in terms of market capitalization. Further, Binance is the largest crypto exchange in the world as measured by trading volumes. A key utility of BNB is to pay fees while trading on Binance. The fees can be paid at a discounted rate using the BNB coin. The use case is therefore strong.

It’s also worth noting that a major bull market for cryptocurrencies might be impending. This generally translates into high level of trading and speculative activity. Binance, as the largest centralized exchange, is positioned to benefit. I also expect BNB coin to surge higher.

Another important point to note is that Binance user base grew by 30% last year with the total number of accounts increasing to 170 million. Even with regulatory hurdles, the progress has been encouraging. As trading accounts swell, I expect BNB coin to surge higher after an extended period of sideways movement.

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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