Aerospace & defense stock RTX Corp (RTX) is posing an attractive entry point for options bulls right now. The shares have pulled back from their Oct. 28 record high of $181.34, last seen up 1.9% to trade at $171.59 today. However, the recent drawdown is testing a key technical level on the charts, one with bullish quantitative history.Per Schaeffer's Senior Quantitative Analyst Rocky White, RTX is within 0.75 of the 80-day moving average's 20-day average true range (ATR), after remaining above it 80% of the ...

Core Insights - Humana and Cost Plus Drugs are exploring a partnership aimed at reducing prescription drug costs for U.S. employers [2][3] - The collaboration focuses on direct-to-employer programs that bypass traditional pharmacy benefit management [4] - Humana has over 8 million health plan enrollees, with more than 5 million in Medicare Advantage plans, indicating a significant potential market for Cost Plus Drugs [5] Company Strategies - Humana's CEO emphasized the need to simplify the pharmacy experience and streamline the prescription process for patients [6] - Cost Plus Drugs aims to address both healthcare needs and financial burdens of patients, as stated by Cuban [6] - Humana's CenterWell is expanding into direct-to-patient specialty pharmacy, particularly in response to the growing demand for GLP-1 weight loss drugs [7][8]

Core Insights - Advanced Micro Devices (AMD) has seen a remarkable 116% increase in stock price over the past nine months, driven by enthusiasm for AI hardware and a strong semiconductor market [2][4] - Revenue has increased by 24%, with margins improving by 62%, indicating a robust financial performance [4] - Despite the positive trends, there are concerns regarding export challenges and rising valuation issues that could impact future growth [2][4] Financial Performance - The stock surge is attributed to a 24% revenue increase and a significant 62% improvement in profit margins [4] - Valuation has also seen a 7.5% uptick, contributing to the overall positive sentiment around the stock [4] Market Dynamics - Strong demand for AI GPUs, particularly the Instinct MI300/MI350 series, has been a key driver of growth [9] - The data center sector has shown solid revenue growth, supported by EPYC CPUs and AI accelerators [9] - The client segment has benefited from robust sales of Ryzen processors, with expectations of further momentum from AI PCs [9] Challenges - U.S. export regulations on MI308 GPUs to China have negatively impacted data center revenue, highlighting potential risks in international markets [9]

QBTS Stock surges in 2025 as quantum computing gains investor momentum.SOPA Images/LightRocket via Getty ImagesD-Wave Quantum (QBTS) stock has declined by 24.2% over the past 21 trading days. This recent downturn underscores renewed worries regarding D-Wave’s speculative valuation along with ongoing operating losses. However, significant drops like this often prompt a more challenging inquiry: is this weakness a temporary issue, or is it indicative of deeper flaws in the company’s situation?Before evaluatin ...

Core Insights - Palantir Technologies has experienced significant stock volatility, with declines exceeding 30% on three occasions in recent years, resulting in substantial market capitalization losses [2] - Despite a strong performance driven by AI platform adoption and commercial growth, the stock's high valuation raises concerns about sustainability, as it trades at ratios much higher than industry standards [3] - Historical performance indicates that Palantir's stock can face steep declines during market crises, such as a 22.5% drop during the COVID-19 pandemic and an 85% decline during inflation shocks [5] Financial Performance - Revenue growth for Palantir is reported at 47.2% for the last twelve months (LTM) and an average of 29.3% over the last three years [11] - The company has a free cash flow margin of nearly 46.0% and an operating margin of 21.8% for LTM [11] - The stock currently trades at a price-to-earnings (P/E) multiple of 395.9, indicating a high valuation risk [11] Risks and Challenges - Valuation risk is significant, with a forecasted stock drop of 17% in November 2025 due to high valuation metrics, although robust revenue growth of 63% in Q3 2025 and raised FY25 guidance of $4.398 billion provide some mitigation [10] - Rising competition from decreasing AI costs and expanding large language models (LLMs) may impact Palantir's growth, with analysts predicting a moderation to 35% year-over-year growth for 2026 [10] - Ethical and public relations issues related to government surveillance contracts pose reputational risks, although the company's focus on AI ethics and recent defense contracts may help mitigate these concerns [10]

Core Insights - Oracle has shown significant historical price increases, with notable growth of over 50% in just two months in 2025 and multiple instances of over 30% rises in short periods, indicating potential for substantial shareholder rewards if similar conditions arise again [2] - The company's strategic shift towards AI and cloud technologies has driven substantial growth in 2025, although it is currently experiencing a temporary decline from recent peaks; investments from generative AI leaders like OpenAI could lead to a new growth wave [3] Financial Performance - Oracle's financials appear weaker due to a lack of recent revenue growth, minimal cash generation, and an undefined valuation measure, raising concerns about the stock's performance during market declines [5] - Revenue growth stands at 9.7% for the last twelve months (LTM) and 10.2% for the last three-year average, while the company has a nearly -10.0% free cash flow margin and a 31.6% operating margin LTM [10] Growth Potential - Oracle Cloud Infrastructure (OCI) is projected to achieve over 70% growth in FY26, supported by a $455 billion AI backlog, which is expected to significantly enhance its cloud market share by 2029 [10] - The introduction of Oracle Health's new AI-integrated, cloud-native EHR in 2025 aims to improve interoperability and re-establish the company in the healthcare market [10] - OCI's "open-by-design" strategy with Azure and Google Cloud facilitates data integration and reduces vendor lock-in, promoting the adoption of enterprise cloud and AI technologies [10] Risk Assessment - Historical data indicates that Oracle is not immune to market downturns, having experienced declines of approximately 77% during the Dot-Com Bubble, 41% during the Global Financial Crisis, and similar drops during other market corrections [6]

Core Insights - Oracle has historically shown significant price increases, with notable growth of over 50% in 2025 within two months and seven instances of over 30% rises in less than two months, particularly in 2011 and 2024 [2] - The company's shift towards AI and cloud technologies has driven substantial growth in 2025, although it is currently experiencing a temporary decline from recent peaks [3] Factors That Could Elevate The Stock - Oracle Cloud Infrastructure (OCI) is projected to achieve over 70% growth in FY26, supported by a $455 billion AI backlog, which includes partnerships with OpenAI [11] - The introduction of Oracle Health's new AI-integrated, cloud-native EHR in 2025 aims to enhance interoperability and re-enter the healthcare market [11] - OCI's "open-by-design" strategy with Azure and Google Cloud facilitates data integration, reducing vendor lock-in and accelerating the adoption of enterprise cloud and AI technologies [11] Current Financial Metrics - Revenue growth stands at 9.7% for the last twelve months (LTM) and an average of 10.2% over the last three years [11] - The company has a free cash flow margin of nearly -10.0% and an operating margin of 31.6% LTM [11] - Oracle stock is currently trading at a price-to-earnings (P/E) multiple of 49.7 [11]

UKRAINE - 2022/02/09: In this photo illustration, D-Wave Systems Inc. logo of a Canadian quantum computing company is seen on a smartphone screen. (Photo Illustration by Pavlo Gonchar/SOPA Images/LightRocket via Getty Images)SOPA Images/LightRocket via Getty ImagesD-Wave Quantum (QBTS) stock has declined by 24.2% over the past 21 trading days. This recent downturn underscores renewed worries regarding D-Wave’s speculative valuation along with ongoing operating losses. However, significant drops like this of ...

Core Insights - The article discusses the anticipated economic environment in 2026, highlighting expected interest rate cuts and the impact on various sectors, particularly mortgage REITs and pharmaceutical companies. Group 1: Interest Rates and Mortgage REITs - Interest rates are projected to decline, with Fed Chair Jay Powell having already implemented two rate cuts, and more expected under Kevin Hassett's leadership [3][4] - Mortgage REITs like Annaly Capital (NLY) and Dynex Capital (DX) are well-positioned to benefit from falling rates, with yields of 12.3% and 14.7% respectively, and potential for significant price appreciation [4][5] - The easing of mortgage spreads, which are crucial for profitability, indicates a favorable environment for these mortgage REITs as they hold government-backed securities [5][6] Group 2: Pharmaceutical Industry and AI - The pharmaceutical industry is set to experience accelerated drug discovery cycles, potentially reducing the time from development to market from 10-15 years to 3-6 years due to AI advancements [7][8] - Companies like BlackRock Health Sciences Term Trust (BMEZ) are positioned to benefit from this trend, yielding 8.6% while investing in innovative drug development firms [9] - Danaher (DHR) is highlighted as a key supplier in the life sciences sector, providing essential tools and consumables for drug development, which are expected to see increased demand due to AI-driven research [11][12] Group 3: Consumer Goods - Hershey Foods - Hershey Foods (HSY) is noted for its strong brand portfolio and resilience despite rising cocoa prices, with management implementing efficiency plans and price increases to maintain cash flow [14][15] - The company has raised its dividend by 70% over five years, indicating a strong commitment to shareholder returns and positioning for a rebound as input costs stabilize [15]

Core Insights - American Airlines is making strategic moves to catch up with Delta Airlines in financial metrics and passenger preference, with a focus on fleet improvements and premium seating [2][9] Group 1: Airline Performance and Strategy - Delta Airlines continues to lead the U.S. airline industry, generating over 50% of the industry's profits despite having only 20% of the market seats [4] - American Airlines aims to reduce its debt from approximately $36 billion to below $35 billion by the end of 2027, while Delta plans to reduce its debt to about $10 billion by 2026 [8][9] - Delta's partnership with American Express has been crucial for its profitability, with Delta being the number one source of American Express revenue, accounting for 30% of its U.S. consumer spend [5][7] Group 2: Fleet and Service Enhancements - American Airlines received its first Airbus A321XLR in October, with the first flight scheduled for December 18, marking a significant step in its fleet modernization [11] - The A321XLR will feature a configuration of three cabins, including 20 lie-flat suite seats, 12 premium economy seats, and 123 coach seats, aimed at increasing premium seating by 20% and lie-flat seating by 50% by 2030 [11][13] - American plans to expand its A321XLR service to international routes, starting with JFK-Edinburgh in March, and aims to have 15 or 16 XLRs in its fleet by the end of 2026 [12] Group 3: Financial Projections and Partnerships - American Airlines anticipates that a new credit card deal with Citibank, effective in 2026, will enhance its credit card revenue, potentially reaching $10 billion annually by the end of the decade [14] - The airline's free cash flow was reported at $1.7 billion through the third quarter, indicating a need for strategic improvements to catch up with Delta [9][10] - American Airlines is focusing on regaining corporate market share and implementing cost-cutting measures as part of its strategy to improve profitability [10]