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Strong Q1 Sales, AI Tech Pipeline Point To A Bright Future

Nvidia Corp. (NVDA) grabbed the headlines this week given its blockbuster earnings and stock reaction. But there’s a lot more going on in the technology and growth stock investing worlds. Check out these three OTHER promising picks from a trio of top MoneyShow contributors.

Mark Skousen Forecasts & Strategies

All three stock indexes – the Dow, the S&P 500 and the Nasdaq – achieved substantial gains in the first half of 2024, surprising many analysts. I like the Technology Select Sector SPDR ETF (XLK).

Stagflation seems to be good for our portfolio, as we now have a dozen stocks and funds with double-digit-percentage returns. Almost every recommendation is profitable this year.

So far, we have avoided the tradition on Wall Street to “sell in May and go away.” Last year, President Joe Biden and the Democrats imposed a 1% tax on all stock repurchases. But stock buybacks are good for investors because they avoid double taxation of dividends and increase the value of a shrinking stock issue.



As a result, most companies are offering stock buybacks. Goldman Sachs expects S&P companies to allocate $1.1 trillion in share repurchases in 2025. Recently, Apple Inc. (AAPL) unveiled a record stock buyback plan and increased its dividend to 25 cents per share. Apple stock has soared on the news.

We recommend Apple indirectly through XLK, which is now ahead by double digits in 2024. Over 22% of XLK is invested in Apple stock alone. All five of its top holdings rose steadily recently.

Even as Wall Street is hitting all-time highs, the big news is the new bull market in gold, silver, copper, uranium, and Bitcoin. Commodities have done great, with gold and copper hitting new highs. Bitcoin, silver, and uranium are also recovering and moving higher.

The recession and the bear market have been postponed, despite the Fed’s tight-money policy. Last month, Wall Street expected robust growth in the first-quarter gross domestic product (GDP) number. The Atlanta Fed forecast 2.9% growth. Even Kevin Hassett, former chairman of Trump’s economic team, told Larry Kudlow on Fox Business that he expected real growth of 3.5%.

The real number turned out to be an anemic 1.6%, with higher-than-expected price inflation. But my subscribers weren’t fooled. As I stated last month, and in my Wall Street Journal column, gross output (GO) — a measure of total spending at all stages of production — was slowing sharply, and business-to-business (B2B) spending was negative for the fourth quarter.

Recommended Action: Buy XLK.

Michael Cintolo Cabot Top Ten Trader

The market’s good-looking rebound has continued recently. Right now, the intermediate-term (and longer-term) trends are up for the market’s major indexes, too. Our Top Pick is On Holding AG (ONON), which is wild and woolly but appears to be finally getting going after a long, tedious consolidation.

The big attraction with On Holding is that it has the potential to be the next Nike Inc. (NKE) or Under Armour Inc. (UA) The firm is known for its high-performance (but also comfy) running shoes that are gaining in popularity among casual wearers, regular joggers, and top runners and marathoners.

The winner of the past two Boston Marathons wore Ons. The company is going to unveil new technology used by that runner at this year’s Olympics. The shoes have a softer landing and springier liftoff, which helps performance. And it doesn’t hurt that innovation in athletic footwear has been hard to find in the sector, opening the door for a better mousetrap.


The firm’s footwear tends to be higher end, selling north of $100, which of course helps pre-tax margins (north of 25% in Q1, though it varies). While there’s plenty of opportunity in the running area alone, a big part of the story here is about how far the firm can extend its reach.

In footwear, the firm’s tennis (it designed a couple of pairs with Rodger Federer) and training offerings are catching on quick. It’s also moving into apparel (sales here up 25% in Q1) and accessories (up 43%), which are small but obviously growing nicely.

Being a Swiss firm, the numbers can be affected by currency movements, which was the case in Q1. But the currency-neutral figures were excellent (up 29%) and had management reiterating its near-term (30% currency-neutral sales growth this year, EBITDA margins north of 16%) and long-term (sales rising at a 25%-plus annual rate through 2026, with EBITDA margins north of 18% by then) guidance.

It should be noted that On is expecting to ramp marketing around the Olympics, which could affect profits. And of course, competition is always a factor. But if the top brass continues to pull the right levers, On should get much bigger over time.

Recommended Action: Buy ONON.

Michael Murphy New World Investor

QuickLogic Corp. (QUIK) reported revenues up a whopping 45.5% from last year to $6.01 million, just under the $6.2 million consensus estimate. It was driven by a nearly 60% increase in new product revenue. Pro forma earnings of 11 cents per share more than doubled the five-cent estimate and marked their third straight quarter of pro forma profitability.

On the conference call, CEO Brian Faith said: “With continued strong bookings, a record $179 million funnel, and some very significant eFPGA contract proposals pending, we remain confident that we’ll deliver greater than 30% year-over-year revenue growth in 2024.”



They are projecting June quarter revenue will be up significantly year-over-year, but show a sequential decrease from Q1 to the low point for this year. They continue to be cash flow positive and solidly profitable for the full year. June quarter revenue should be up 55% from last year to $4.5 million, with pro forma earnings from breakeven to three cents a share.

QUIK has a major system-on-a-chip (SOC) contract shipping now where their eFPGA technology is used for Artificial Intelligence (AI) acceleration, which is a necessary function in most AI applications. This will be a rapidly growing application that is better served by eFPGA technology than a processor running the acceleration algorithms in software. eFPGA IP can be reprogrammed to adapt to changes in acceleration algorithms and performs acceleration more quickly using much less power than a processor-based solution.

Recommended Action: Buy QUIK.

Pete Najarian Market Rebellion

Pete Najarian is co-founder of Market Rebellion and a long-time options educator and trader. In this MoneyShow MoneyMasters Podcast episode, which you can watch here, we cover a wide range of big-picture topics like the economy and Federal Reserve policy…as well as which stocks, sectors, and asset classes investors should be looking most closely at here.

Pete starts the conversation by reiterating that the early-year talk of five, six, or seven Fed interest rate cuts never made sense to him. Now, markets seem to be on roughly the same page as him – with maybe one cut, maybe no cuts being the likeliest policy outcome for 2024. We also talk about how markets struggled with the evolving rate outlook in April, and why they seem to have made peace with it since then.

The discussion then pivots to corporate earnings and the technology sector – including how many names are now trading as individual stocks with company-specific drivers, rather than simply components of the “Mag 7” mini-conglomerate. Pete also chats about ways investors can play the Artificial Intelligence (AI) boom outside of obvious names like Alphabet Inc. (GOOGL) and Nvidia Corp. (NVDA) – including one or two sectors that might not come to mind first. He goes on to name names he likes in the financial sector…what he thinks about the boom in commodities and precious metals…and what the recent resurgence of meme stocks means for investors and traders.

Finally, we cover his tips for options traders in this environment – including why maintaining your discipline and having a plan (in advance) of any trade are so important. He closes by sharing a sneak peek at what he’ll talk about at the MoneyShow Masters Symposium Las Vegas, set for Aug. 1-3, 2024 at the Paris Las Vegas.

Originally Appeared Here

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