Afternoon Trading Ideas Update – June 13, 2024

Analyst Recommendations and Market Implications:

• ON Semiconductor Corp (ON)

  • Consider buying ON shares. The company is well-positioned for a cyclical recovery, with expected improvements in gross margins and utilization rates. Long-term prospects are bolstered by growth in EV, SiC shipments, and data center transitions.

Company Performance and Historical Insights:

• Casey’s General Stores (CASY)

  • Hold existing positions or consider new long-term investments due to strong historical performance and substantial compounded returns over 20 years.

Market Sentiment and Trend Analysis:

• S&P 500 (SPY)

  • Monitor closely for further investment opportunities. Positive sentiment driven by cooler inflation data and strong earnings growth suggests continued market confidence.

• Corning Inc (GLW)

  • Consider buying. Despite a recent downgrade, the stock shows potential due to its role in AI and data center buildouts, indicating it may be undervalued.

Cryptocurrency Analysis:

• Immutable (IMX/USD), Renzo Restaked ETH (EZETH/USD), and Ethereum Classic (ETC/USD)

  • Exercise caution. All three cryptocurrencies have experienced significant declines recently. Monitor for potential recovery signs or further downside risks.

Financial Performance and Acquisitions:

• Verisk Analytics (VRSK)

  • Hold or consider buying. The company has shown strong revenue growth and has executed successful acquisitions, contributing to its positive financial performance.

Strategic Alliances and Operational Moves:

• Diageo (DEO)

  • Hold or consider buying. The company’s new partnership in Nigeria and continued focus on premiumization and digital initiatives bode well for future growth.

Competitive Landscape and Emerging Opportunities:

• Nauticus Robotics (KITT)

  • Monitor closely. The significant decline in short interest could signal a shift in market sentiment, possibly making it an attractive buying opportunity.

• Travelers Companies (TRV)

  • Monitor closely. A decline in short interest indicates potential bullish sentiment, suggesting a possible buying opportunity.

Smart Beta ETFs and Value Investing:

• iShares Emerging Markets Dividend ETF (DVYE)

  • Consider for long-term investment. The ETF provides broad exposure to emerging markets with a focus on high dividend yields, making it a strong option for value investors.

Value Stocks and PEG Ratio Analysis:

• Eldorado Gold (EGO), Sasol (SSL), and DaVita (DVA)

  • Consider buying. These stocks are identified as value picks with low PEG ratios and strong growth potential, making them attractive for value investors.

Sector and Industry Focus:

• Anheuser-Busch InBev (BUD)

  • Hold or consider buying. The company’s strong brand portfolio and growth initiatives in digital and premium segments suggest positive future performance despite current cost challenges.

• Enbridge Inc (ENB)

  • Hold or consider buying. The company’s pipeline expansion project reflects its commitment to meeting growing energy demands, which should support long-term growth.

Market Movers and Stock Performance:

• SPDR S&P 500 ETF Trust (SPY)

  • Consider adding to positions. Top-performing stocks like Super Micro Computer (SMCI), Nvidia (NVDA), Vistra Energy (VST), Constellation Energy (CEG), and First Solar (FSLR) are driving the ETF’s strong performance.

Short Interest Analysis:

• Texas Instruments (TXN), Etsy (ETSY), and MercadoLibre (MELI)

  • Monitor closely. Changes in short interest can signal shifts in market sentiment, potentially indicating buying opportunities if bullish trends emerge.

Historical Performance Insights:

• Teledyne Technologies (TDY)

  • Hold existing positions or consider adding for long-term growth. The company has demonstrated strong performance and significant compounded returns over 15 years.