No Value In The Mega Caps
Mega caps – especially the Mag 7 – have driven the market indexes of late but it’s hard to justify further price increases because the stocks are more than fully valued at this stage. That’s not to say the market…
WMT Is Overvalued and Overextended Heading Into Earnings; How I’m Protecting My Profits
Walmart (WMT) is on a tear heading into its 3QFY25 earnings report next Tuesday morning with shares up 60% YTD. Unfortunately, a consequence of that price appreciation is that the stock has become overvalued and overextended. WMT now trades for…
CAVA: Exhaustion Candle
I first wrote about up and coming Mediterranean fast-casual chain CAVA six months ago in “Legendary Days: Adventures In San Diego” (May 16, 2024). I had read about it a Barron’s article about the “next Chipotle”. But since there weren’t…
RACE: Nothing Sexier Than A Red Ferrari
I’m not much of a car guy but the one car I’ve always wanted is a red Ferrari. Besides for that, I’m happy if my car gets me from A to B without incident. A new Ferrari will set you…
Big Tech Is Driving A Nuclear Energy Renaissance
Jinjoo Lee had a fascinating and important column in Friday’s WSJ about how Big Tech – thirsty for energy to fuel its data centers for AI – is driving a nuclear renaissance (“Big Tech Is Paving The Way For A…
PLTR: Portrait Of A Story Stock Ahead Of Its 3Q Earnings Report
Palantir (PLTR) is a beloved stock among retail investors. No wonder since it is up 181% over the last 12 months. Part of the allure is the obscurity of what exactly PLTR does. On their earnings press releases under the…
XOM CVX Earnings And The Case For Oil Stocks
Investors today love tech. Tech is by far the biggest part of the market and it’s been the best performing for a long time. For those reasons, most investors tend to tune out the rest of the market. But that’s…
Re-Iterating UBER $1 Trillion
Nine months ago I made the bold prediction that UBER (UBER) will one day be a $1 trillion company. Today I want to re-iterate that call in wake of their 3Q24 earnings report out this morning which has caused the…
*UPDATED WITH MSFT and META RESULTS* Mag 7 Fundamentals Are Stellar – But Valuations Are Stretched
In analyzing the markets we must always keep in mind that the Mag 7 make up approximately 30% of the market capitalization of the S&P 500. As a result, so go the Mag 7, so goes the major market indexes….
The Homebuilders Are Fully Valued
Two homebuilders – Pulte (PHM) and DR Horton (DHI) – have sold off on earnings in the last week and my analysis of their reports suggests the sector is fully valued. Let’s start with the bigger one – DHI. With…