Core Insights - Eli Lilly has secured a deal with the Trump administration that could significantly boost its stock value [1][5] - The company’s drug tirzepatide, marketed as Mounjaro and Zepbound, has become the best-selling drug globally, with year-to-date sales of $24.8 billion [2][10] - The agreement will allow Medicare to cover GLP-1 weight loss drugs at discounted prices, expanding access to millions of recipients [6][10] Company Overview - Eli Lilly's current stock price is $1017.78, with a market capitalization of $962 billion and a gross margin of 83.03% [3] - The company leads the weight-loss drug market with a 57% market share, and the market is projected to exceed $200 billion in annual sales by 2031 [10][11] Market Dynamics - The deal with the Trump administration will lower the cash price of Zepbound from approximately $500 to as low as $150 for eligible Medicare recipients [8] - An estimated 1-in-10 Medicare recipients may qualify for the discounted drugs, which could significantly increase the number of prescriptions [6][9] - The overall number of patients starting GLP-1 treatments for non-diabetic purposes has surged by 700% since 2019, indicating a growing market potential [9] Future Prospects - The agreement is expected to enhance Eli Lilly's position in the expanding weight-loss drug market, with additional eligibility for Medicaid recipients anticipated by 2027 [7][10] - The introduction of a new "TrumpRx" website will facilitate access to these medications at reduced prices [8]

Core Viewpoint - The waste management industry, while not glamorous, offers impressive long-term returns and stability compared to more volatile sectors like technology [1][2]. Company Overview - Waste Management, founded in 1968, is North America's largest provider of public sanitation services, managing household, commercial, and industrial waste, with over 250 active landfills and advanced recycling facilities [4]. - The company has a market capitalization of $82 billion and a current stock price of $203.94, with a gross margin of 28.92% and a dividend yield of 1.63% [3][14]. Financial Performance - In the third quarter, Waste Management's revenue increased by 15% year-over-year to $6.4 billion, although operating income fell by 12% to $989 million due to noncash outflows and asset impairment [5][6]. - The company has a price-to-earnings (P/E) ratio of 32, which is higher than the S&P 500 average of 26, indicating that shares are somewhat expensive for a mature industrial company [13]. Market Potential - The total addressable market for Waste Management is vast, as nearly every business and household in North America generates waste, with a growing number of potential clients [8]. - The company is exploring growth opportunities in green energy, particularly through landfill gas-to-energy initiatives, which convert methane from landfills into renewable natural gas [9][10]. Strategic Growth Initiatives - Waste Management is expanding through acquisitions, such as the $7.2 billion purchase of Stericycle, a medical waste service provider, which enhances its footprint in the healthcare waste market [11]. - The company's focus on synergistic opportunities, including medical waste and green energy production, positions it well for future growth [12].

Core Insights - Alphabet's stock has increased by 63% over the past year and has returned over 11,470% since 2004, with a current market cap of $3.5 trillion [1][2] AI Market Position - Alphabet is establishing itself as a leading player in the artificial intelligence (AI) sector, with strong momentum expected to continue into 2026 [2] - The initial concerns regarding ChatGPT's impact on Google's search business have shifted, as Google Search generated $56.5 billion in revenue in Q3, up 14.5% year-over-year [4][5] AI Integration and Growth - Alphabet has rapidly integrated AI features into Google Search and launched its AI chatbot, Gemini, which has reached 650 million monthly active users [5] - OpenAI's recent challenges may provide Alphabet with an opportunity to strengthen its position in the AI market [6][10] Competitive Landscape - OpenAI's ChatGPT holds a 61% market share in the AI app space, but concerns about its financial sustainability have emerged, particularly regarding its $1.4 trillion data center funding plans [7][9] - Alphabet's strong cash flow and balance sheet position it well to invest in AI, contrasting with OpenAI's uncertain funding situation [10] Financial Performance and Valuation - Alphabet's stock trades at just under 27 times 2025 earnings estimates, with analysts projecting annualized earnings growth of 15% to 16% over the next three to five years [12] - The company's earnings are primarily driven by its digital advertising and cloud services, with Google Cloud benefiting from increased AI demand [13]

Core Insights - The stock market, particularly the S&P 500, has shown strong performance with a 16.5% increase this year and over 20% returns in the past two years, significantly exceeding its long-term average of 10% [1][2] - Concerns are rising about potential market slowdowns due to high valuations and the possibility of an AI bubble, prompting some investors to seek safer investment options [2] Investment Options - The Vanguard High Dividend Yield ETF offers a yield of approximately 2.5%, more than double the S&P 500 average of 1.1%, and is diversified with 566 stocks, reducing exposure to individual stock performance [4][5] - This ETF has a low expense ratio of 0.06% and limited exposure to the tech sector, which constitutes only 13% of its holdings, with financials and industrials making up around 35% [6] - Over the past five years, the Vanguard ETF has shown a share price return of about 68%, increasing to 96% when including dividends, with a beta of 0.85 indicating lower volatility compared to the market [7] WisdomTree U.S. High Dividend Fund - The WisdomTree U.S. High Dividend Fund provides a higher yield of 3.4%, significantly surpassing the average S&P 500 stock, though it has a higher expense ratio of 0.38% [8] - This fund contains 365 stocks with only 3% exposure to the tech sector, while healthcare, financials, and consumer staples account for nearly 60% of its holdings [9] - The fund has a beta of 0.74, indicating even lower volatility, with a stock price increase of 56% over the past five years and total returns of around 89% including dividends [10] Investment Strategy Considerations - The choice between the two ETFs may depend on individual risk tolerance; the WisdomTree fund may be preferable for those wanting to minimize tech exposure, while the Vanguard fund may appeal to those seeking potentially higher returns [11] - Both funds are suitable for investors aiming to generate recurring cash flow and reduce risk in the stock market [12]

Core Viewpoint - Oklo is developing small, modular nuclear reactors aimed at providing reliable power, particularly for artificial intelligence applications, but it is still in the early stages of development and lacks regulatory approval for commercial operation [3][4][12]. Company Overview - Oklo is a nuclear start-up focused on creating a small, fast-spectrum reactor with fuel recycling capabilities, intending to revolutionize nuclear power by offering clean energy under long-term contracts [3][4]. - The company's current market capitalization is approximately $16 billion, despite having no revenue and no operational reactors, which is considered extraordinary for a start-up in the research and development phase [12]. Market Opportunity - The primary market opportunity for Oklo lies in powering AI data centers, as its reactors can provide continuous, reliable energy, making them suitable for high-demand applications [4]. - Other potential customers include mining companies, military camps, research bases, and disaster-relief zones, where traditional grid access is limited or costly [6]. Regulatory Progress - Oklo is progressing towards regulatory approval, having cleared phase 1 of the pre-application readiness review with the Nuclear Regulatory Commission (NRC) in July 2025 [7]. - The company is among those whose reactor designs have been fast-tracked for deployment due to recent legislative changes aimed at accelerating the approval process for advanced nuclear reactors [9][10]. Future Projections - If all goes well, Oklo could potentially activate its first commercial reactor by 2027, following the groundbreaking of its first Aurora powerhouse at Idaho National Laboratory [11]. - Revenue projections for Oklo are modest, with estimates suggesting only $15 million in total revenue by 2027, indicating a long wait for significant top-line growth [13]. Investment Considerations - Oklo's stock is currently trading about 40% lower than its mid-October highs, presenting a potential buying opportunity, but it remains a speculative investment due to its lack of operational revenue and high market valuation [12]. - Investors should be aware of the capital costs associated with securing fuel, building production facilities, and compliance with NRC regulations, which may pressure the company's financials before it becomes profitable [15].

Core Insights - Nvidia is the world's largest company with a market capitalization of $4.6 trillion, significantly influencing the S&P 500 and Nasdaq-100 indices [2][3] - The upcoming quarterly operating results on Nov. 19 are critical, as they could impact Nvidia's stock price and the broader market [3][16] Company Performance - Nvidia is expected to report $54 billion in revenue for the fiscal 2026 third quarter, representing a 54% increase year-over-year, with approximately 90% of this revenue coming from the data center segment [9][10] - Wall Street anticipates earnings of around $1.25 per share for the quarter, which will heavily influence Nvidia's stock price post-report [10] - Analysts are looking for a revenue forecast of $61.3 billion for the fourth quarter, which could indicate higher GPU demand than previously expected [11] Product Dominance - Nvidia's H100 GPU holds a 98% market share in 2023 for AI model development, while the new Blackwell Ultra GB300 chip offers up to 50 times more performance than the H100 [5][6] - The demand for the Blackwell Ultra GB300 chip is currently outstripping supply, and investors are keen to hear updates on its sales [6][7] Market Positioning - Nvidia's price-to-earnings (P/E) ratio is currently 53.5, which is a 12% discount to its 10-year average of 61.2, with expected earnings growth to $6.68 per share in fiscal 2027 leading to a forward P/E ratio of 28.1 [14][16] - The stock may need to increase by 90% over the next 12 to 18 months to maintain its current P/E ratio, indicating significant growth potential [16]

Core Viewpoint - Arm Holdings has demonstrated strong earnings performance in Q2 of fiscal 2026, with revenue and earnings surpassing consensus estimates [1] Financial Performance - Revenue increased by 34% year over year to $1.14 billion, with royalty revenue rising 21% to $620 million and licensing revenue surging 56% to $515 million [2] - Adjusted net income grew by 32% year over year to $417 million [2] Market Dynamics - The demand for Arm's products is significantly driven by artificial intelligence (AI), although the stock price remains volatile [3] - Despite a strong earnings report, the stock experienced a nearly 9% decline in pre-market trading due to weaker fiscal guidance and rising tariff concerns [3][4] Demand Trends - Hyperscalers and large enterprises are increasing their computing capacity, which benefits Arm due to its focus on energy-efficient chip architectures [5] - Arm's Neoverse computing platform is foundational for custom data center CPUs, with over 1 billion CPUs deployed and Neoverse royalties increasing over 100% year over year [7] Licensing and Royalties - Smartphone royalties grew faster than the overall market, driven by demand for Armv9 and Compute Subsystem (CSS) architectures [8] - Licensing activity showed strong performance, with annualized contract value increasing by 28% year over year [9] Research and Development - Arm is heavily investing in R&D for next-generation architectures and computing subsystems, leading to a 31% year-over-year increase in adjusted operating expenses to $648 million [10] - The company has not provided a clear timeline for new products, which complicates financial modeling and valuation [12] Growth Catalysts - Arm's CPUs are increasingly used by hyperscalers and AI model developers, enhancing their price-performance capabilities [13] - There is growing demand for Arm's CPUs and Lumex CSS platform as AI workloads transition from cloud to local devices [14] - Arm's involvement in the Stargate initiative, aimed at investing $500 billion in data center capacity, could drive long-term revenue [15] Valuation - Shares are trading at a high valuation of over 65 times forward earnings, reflecting confidence in royalty revenue from Arm-based chips [16] - The elevated valuation presents a lower margin for error, as any slowdown in AI infrastructure spending could negatively impact share price [16] Investment Strategy - Given the strong fundamentals and associated risks, a dollar-cost averaging strategy is recommended for investors to manage volatility while capitalizing on potential upside [17]

A $10,000 investment in this diversified fund at its 2011 inception would be worth $51,000 today.What's more important for retirees: a portfolio of stocks that delivers capital appreciation or consistent and growing income?A 2021 study by Dimensional Fund Advisors, a firm with $915 billion in assets under management, sought to answer this question. Running 100,000 simulations, the analysts examined how growth-focused portfolios, income-focused portfolios, and portfolios split 50-50 might perform under envir ...

What's next for the salad chain after another dismal earnings report?Sweetgreen (SG +2.68%) may be on its way to having one of the worst years in restaurant stock history. Year to date through Nov. 10, shares of the fast-casual salad chain are down 83% for the year, and down 88% from its peak last November. It's unusual for a restaurant stock to suffer such a rapid decline, especially when there isn't an obvious culprit. There hasn't been a crushing recession or a blunder like Chipotle's E. coli crisis back ...

Core Viewpoint - The article discusses the current state of AI stocks, highlighting that while many have inflated valuations, there are a few undervalued companies with strong fundamentals that present good investment opportunities. Group 1: AI Stock Valuations - Many AI stocks, such as Nvidia and Palantir Technologies, have seen their valuations become excessive, with Nvidia trading at over 50 times earnings and Palantir at a staggering $420 billion despite low revenue generation [2][3] - Investors may be hesitant to invest in AI stocks due to these high valuations, which do not reflect the companies' current financial performance [2] Group 2: Undervalued AI Stocks - ASML is highlighted as a key player in the tech sector, dominating the market for extreme ultraviolet photolithography machines, with profit margins around 29% and a price-to-earnings ratio of 36, lower than the sector average [4][5] - Taiwan Semiconductor Manufacturing (TSMC) is noted for its leadership in chip production, reporting a 41% year-over-year sales increase to $33.1 billion, with profit margins around 46% and trading at 32 times trailing earnings [8][9][11] - Alphabet is considered undervalued, trading at less than 28 times trailing earnings, with significant assets like YouTube and Google Search, and a promising AI chatbot, Gemini, which enhances its business prospects [12][13][14] Group 3: Market Performance and Future Outlook - ASML's stock has risen nearly 54% in the past year, indicating strong market performance, with expectations for further growth due to its critical role in chip development for AI [7] - TSMC's market cap is around $1.2 trillion, but it is suggested that it deserves a higher valuation given its competitive advantages [11] - Alphabet's market cap stands at $3.5 trillion, and it is argued that it should be valued even higher due to its diverse business model and AI capabilities [14][15]