People around the world honor and respect Berkshire Hathaway (NYSE:BRK-A, NYSE:BRK-B) CEO Warren Buffett, so his sale of Bank of America (NYSE:BAC) shares, may induce you to panic-sell or just avoid Bank of America stock. That’s a mistake. There’s a lot of positive news to report about Bank of America.Still, it’s worthwhile to track Buffett’s/Berkshire’s large-scale share sales. So, let’s delve into the dumpage now before we build a bull case for Bank of America.Berkshire Unloads a Boatload of Bank of Ameri ...

Economic Indicators - Several key indicators suggest a potential recession for the U.S. economy in 2025, including the inverted yield curve and the Sahm Rule recession indicator [1][2] - The Sahm Rule indicates a recession when the 3-month moving average of the unemployment rate rises 0.5 percentage points or more from its low in the previous 12 months, which has never triggered a false alarm since the 1970s [1] Company Analysis - **McDonald's (MCD)**: Historically resilient during downturns, McDonald's stock rose during the 2008 recession and the 2020 COVID shock. The company has launched a $5 value meal to attract cost-conscious customers, with a consensus rating of "Moderate Buy" and a price target of $302 [3][4] - **Church & Dwight (CHD)**: Reported strong Q2 2024 results with 4.7% organic sales growth. The company is considered stable and consistent, with a reasonable valuation around $100 per share and a 1.1% dividend yield [5][6] - **AutoZone (AZO)**: Positioned to benefit from the aging U.S. vehicle fleet, AutoZone reported earnings per share of $36.69, beating estimates. The stock has outperformed the retail sector, rising nearly 10% over the past month [7][8] - **Berkshire Hathaway (BRK-A, BRK-B)**: Warren Buffett has sold over $75 billion in equities in Q2 2024, increasing Berkshire's cash pile to $276.9 billion. The company’s operating earnings rose 15% in Q2, indicating robust performance despite market downturns [9] - **Flowers Foods (FLO)**: Despite a recent stock decline of 8.4%, Flowers Foods reported a 2.8% year-over-year sales growth to $1.58 billion. The company is expected to earn $1.25 per share in fiscal 2024, with a 4.2% dividend yield [10][11][12] - **Coca-Cola (KO)**: Reported 15% organic revenue growth and 7% comparable EPS growth in Q2 2024, raising its full-year guidance. The stock has a 2.8% dividend yield and remains a resilient choice for a defensive portfolio [13][14] - **Procter & Gamble (PG)**: Achieved 4% organic sales growth and 12% core EPS growth in Q4 2024. The company’s products are considered essential, making it a reliable investment during economic downturns, with a 2.36% dividend yield [15][16]

Recession fears gripped the markets over the past week, sending tech and AI stocks into a tailspin. Even with stocks breathing a sigh of relief on Thursday over the latest round of jobs data, JPMorgan (NYSE:JPM) CEO Jamie Dimon still believes a recession could be in the cards. Investors should consider identifying overhyped stocks to sell, especially as Dimon pins an economic “soft landing” (or a mild economic downturn) as having a 35-40% chance of happening.Undoubtedly, that’s a pretty high chance of reces ...

Are you looking for undervalued stocks that could make a big comeback in the next year? I think there are some great opportunities out there, even with all the economic uncertainty we’ve seen lately.It’s no secret that many stocks have taken a beating over the past few quarters. Relentless interest rate hikes from the Federal Reserve and signs of weakening consumer spending have spooked investors, leading to major selloffs. However, in my view, Wall Street has taken things too far in some cases.Several stoc ...

Group 1: Fintech Industry Overview - The demand for digitalized conveniences is increasing, with cash becoming obsolete as consumers seek more efficient payment solutions [1] - The fintech sector is experiencing significant interest as traditional business models struggle to adapt to modern consumer expectations [1] Group 2: PayPal (PYPL) - PayPal reached a peak valuation in 2021 but has since seen a decline in stock price due to unfavorable monetary policy [2] - Currently, PYPL shares trade at 2.17X trailing-year revenue, down from 2.49X earlier this year, indicating potential for reversion to mean valuation [2][3] - Analysts project fiscal 2024 sales to hit $31.93 billion, representing a growth rate of 14.8% from the previous year [3] Group 3: Paysafe (PSFE) - Paysafe provides end-to-end payment solutions across various international markets, including credit and debit card processing and digital wallets [5] - PSFE stock trades at 0.71X trailing-year revenue, significantly lower than the average multiple of 4.14X in the infrastructure software space [5][6] - Analysts forecast fiscal 2024 revenue at $1.71 billion, a 6.6% increase from $1.6 billion in the prior year [6] Group 4: ACI Worldwide (ACIW) - ACI Worldwide develops software solutions for digital payments, including fraud prevention and transaction processing [7] - ACIW shares currently trade at 3.21X sales, which is a premium compared to competitors but still below the sector average [7][8] - Analysts expect revenue of $1.58 billion for fiscal 2024, translating to a growth rate of 10.7% from the previous year [8]

The soft jobs report has fueled recession fears. As a result, several major Wall Street banks are calling for the U.S. Federal Reserve to lower its key interest rate by as much as 50 basis points in September, which could further impact the Magnificent 7 stocks.Citi (NYSE:C) released a note indicating that the risk of a recession has led to a significant drop in two-year Treasury yields, reaching the lowest levels of the year. The market now expects rate cuts exceeding 75 bps this year. Citi’s analysis poin ...

The tech sector is filled with companies that have outperformed the S&P 500. In fact, more than a quarter of the S&P 500 consist of tech companies. The preference toward tech stocks is even more apparent in the Nasdaq 100. Part of that distribution is due to the outsized presence of the Magnificent Seven stocks. This is a group of some of the best tech stocks, as almost all of the companies have delivered impressive long-term gains.Many Magnificent Seven stocks continue to innovate. They’re investing heavil ...

Electric vertical takeoff and landing (eVTOL) aircraft certainly present an intriguing opportunity for growth investors. The potential for these air taxis to completely transform urban mobility makes the various flying car stocks I’m going to discuss in this article worth considering.There are a number of keys to the success of the eVTOL sector over the long term. Companies need to have plans in place to promote battery management and power connectivity. There has been $12.8 billion invested over 12 years a ...

Market volatility can often be a goldmine for savvy investors looking to snap up undervalued growth stocks at bargain prices. The broader market has seen significant appreciation in 2024, driven largely by the technology sector. Yet, certain stocks have remained underpriced despite maintaining solid fundamentals and great growth prospects. As the market continues its upward trajectory in the third quarter (Q3), these overlooked gems present an opportunity for investors.Moreover, the recent panic selling in ...

On Tuesday, markets stabilized after Monday’s $6.4 trillion global equity drop. Nvidia (NASDAQ:NVDA) stock rose over 2% in premarket trading, with other megacap ‘Magnificent 7’ stocks also seeing sharp rebounds. On a year-to-date basis, NVDA stock is still up more than 100%, though it’s down considerably from its recent peak, shedding more than $650 billion from its peak market capitalization at the time of writing.There are several reasons for Nvidia’s recent drop that are wroth discussing. The company ann ...