Core Viewpoint - AbbVie Inc. is recognized as one of the 12 best long-term stocks to buy, despite facing some challenges in clinical trials [1]. Group 1: Market Analysis - Citi has adjusted its price target for AbbVie to $230 from $235 while maintaining a Neutral rating, indicating a more supportive backdrop for the biopharma sector in 2026 due to manageable earnings expectations and reduced policy-related risks [2]. - The overall sentiment in the biopharma space suggests that earnings may exceed previous fears, contributing to a more favorable investment environment [2]. Group 2: Clinical Developments - AbbVie and Genmab's blood cancer drug, epcoritamab, did not demonstrate a statistically significant survival benefit in a late-stage study involving 483 patients with relapsed or refractory diffuse large B-cell lymphoma [3]. - Despite the lack of clear survival benefits, the study revealed positive outcomes, such as a higher number of patients achieving undetectable cancer levels, longer response durations, and improved time before requiring further treatment [4]. - Epcoritamab is already approved in several countries for other lymphoma indications, marketed as Epkinly in the U.S. and Japan, and as Tepkinly in the European Union [5].

Core Viewpoint - Retail investors are actively discussing five prominent stocks driven by retail hype, earnings reports, AI developments, and corporate news flow during the week of January 26 to January 30 [1] Company Summaries Microsoft (MSFT) - The stock is trading around $433 to $435 per share, with a 52-week range of $344.79 to $555.45 - It has risen by 4.46% over the year but declined by 15.54% over the last six months - The stock shows a weaker price trend in the short, medium, and long terms, despite a solid quality ranking [7] SanDisk (SNDK) - The stock is trading around $539 to $546 per share, with a 52-week range of $27.90 to $546.75 - It has advanced by 1,398.06% over the year and 1,142.91% in the last six months - The stock demonstrates a stronger price trend across all time frames [7] Meta Platforms (META) - The stock is trading around $730 to $739 per share, with a 52-week range of $479.80 to $796.25 - It has returned 7.47% over the year and 6.20% in the last six months - The stock shows a stronger price trend in the short, medium, and long terms, with a moderate value score [7] Apple (AAPL) - The stock is trading around $258 to $260 per share, with a 52-week range of $169.21 to $288.61 - It has increased by 8.71% over the year and 23.55% over the last six months - The stock maintains a stronger long-term price trend but a weaker trend in the short and medium terms, with a solid quality score [7] UnitedHealth (UNH) - The stock is trading around $291 to $293 per share, with a 52-week range of $234.60 to $606.36 - It has dropped by 46.42% over the year but increased by 9.87% over the last six months - The stock shows a weaker price trend across all time frames, with a moderate value ranking [7] Market Overview - Retail investor sentiment is influenced by a blend of meme-driven narratives, earnings outlooks, and corporate news flow, while major indices like the S&P 500, Dow Jones, and Nasdaq exhibited mixed market action during the week [8]

Group 1 - Entegris and Qnity, while not widely recognized, are positioned to benefit from the current AI boom and the overall recovery in the semiconductor sector [1] - The companies are likely to see increased demand for their materials as the chip industry rebounds [1] - The resurgence in the semiconductor market is driven by advancements in AI technology, which is creating new opportunities for suppliers [1]

Core Insights - IBM's mainframe business is thriving, recording its best fourth-quarter revenue in over 20 years with a 61% year-over-year increase, adjusted for currency [2] - The mainframe systems are crucial for industries requiring high reliability and security, with 71% of Fortune 500 companies utilizing them [3] Group 1: Financial Performance - IBM's mainframe revenue surged 61% year-over-year, contributing to a 17% increase in the infrastructure segment [2] - The mainframe business is a significant part of IBM's overall strategy, showcasing resilience and growth in a competitive market [1] Group 2: Market Presence - Over 90% of installed mainframe systems are from IBM, with 92% of large financial institutions and 63% of government agencies relying on these systems [3] - Mainframes process over 87% of global credit card transactions, highlighting their importance in financial operations [3] Group 3: Technological Advancements - The latest z17 mainframe systems are designed for the AI era, capable of handling over 250 AI use cases and performing up to 450 billion AI inferencing operations per day, a 50% increase from its predecessor [5] - IBM's z17 mainframe systems have an average response time of just one millisecond, making them suitable for real-time applications [5] Group 4: Future Outlook - IBM anticipates a shift in the AI inferencing market, predicting that in three to five years, 50% of enterprise AI usage will occur in private clouds or on-premises data centers [7] - The company is also enhancing its mainframe capabilities with the Spyre AI accelerator, allowing for more powerful AI model execution [6]

Core Insights - The company has developed a strategy to generate passive income through options trading on its Apple stock holdings, while also aiming to reduce exposure in its investment portfolio [1][3][4] Group 1: Investment Strategy - The company owns over 100 shares of Apple, allowing it to sell call options on a portion of these shares, generating income through the option's premium [3] - The primary risk associated with this strategy is that if Apple's stock price exceeds the strike price, the shares may be called away, but this is considered a favorable outcome compared to selling at a lower price [3][4] - The income generated from options trading is reinvested into high-quality dividend-paying stocks, further diversifying the portfolio and reducing reliance on Apple [4] Group 2: Options Trading and ETFs - The options trading strategy is repeatable, with several successful trades completed in the past, generating substantial income, although it requires active management [5] - For those who may not have the time to engage in options trading, ETFs are available that are designed to generate options premium income, providing a more passive investment approach [6] - If the stock price is below the strike price at expiration, the option expires worthless, allowing the company to retain the income and write new call options [7]

Group 1 - BofA has lowered the price target on Peloton (PTON) to $9 from $11 while maintaining a Buy rating ahead of the fiscal Q2 results report on February 5 [1] - The firm remains optimistic about Peloton's product-led strategy, AI integration, and expanding ecosystem [1] - The reduction in price target is attributed to expectations of higher churn following the price increases implemented in October [1]

Core Viewpoint - Procter & Gamble (PG) is experiencing a slower recovery path, with analysts expecting subdued growth in the coming years due to various market pressures [2][3]. Financial Performance - For the three months ended December 31, P&G reported net sales of approximately $22.21 billion, which is a 1% year-over-year increase but slightly below the expected $22.28 billion [6]. - Adjusted profit exceeded forecasts, driven by strong demand for higher-end haircare and beauty products [3]. - Core gross margin has declined for five consecutive quarters, influenced by tariffs and investments in diverse pack sizes for cost-conscious consumers [6]. Market Conditions - The US government shutdown negatively impacted P&G's largest market, leading to sales declines across categories due to delayed food assistance payments affecting lower-income households [4]. - Sales volumes decreased in three of P&G's five reported categories, with only beauty showing growth as consumers continue to prioritize self-care [5]. - Overall sales volumes were significantly below the typical US growth range of 3% to 4% across categories [5]. Analyst Sentiment - TD Cowen downgraded P&G from Buy to Hold, raising the price target to $156 from $150, citing a likely prolonged turnaround period [2]. - Analysts predict organic sales growth to remain around 2% over the next two years, with limited pricing power and ongoing pressure on the Hispanic consumer [2].

Core Viewpoint - BofA analyst Andrew Didora has raised the price target for Southwest Airlines (LUV) to $42 from $37 while maintaining an Underperform rating on the shares, indicating skepticism about the execution of the company's plans [1] Group 1: Price Target and Rating - The price target for Southwest Airlines has been increased to $42 from $37 [1] - The Underperform rating on the shares remains unchanged [1] Group 2: Earnings Estimates - The analyst acknowledges a potential underestimation of earnings from the new credit card agreement [1] - The firm's EPS estimate for 2026 has been raised to $4.36 from $3.60 [1] Group 3: Market Sentiment - There is a belief that much of the positive sentiment has already been priced in following the stock's movement on earnings day [1]

Core Viewpoint - Horizon Space Acquisition II (HSPT) has postponed its extraordinary general meeting from February 3, 2026, to February 12, 2026, to allow more time for engagement with shareholders [1] Group 1 - The company aims to enhance communication with its shareholders during the additional time before the rescheduled meeting [1]

Group 1 - Benchmark raised the price target on Plexus (PLXS) to $220 from $195, maintaining a Buy rating on the shares [1] - The firm was surprised by the strength of the Q2 guidance and the upbeat tone around demand momentum for the remainder of FY26 and beyond [1]