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TOP PICK

DTE Energy (nyse: dte) is a detroit-based, diversified energy company involved in the development and management of energy-related businesses and services nationwide. built on a strong utility base, dte energy's largest operating subsidiaries are dte electric and dte gas. together, these regulated utility companies provide electric and/or gas services to more than three million residential, business and industrial customers throughout michigan. dte energy has more than 10,400 employees in utility and non-utility subsidiaries involved in a wide range of energy-related businesses nationwide. the company's growing non-utility businesses are built around the strengths, skills and assets of dte energy's electric and gas utilities. Social media mentions are up 600% in the past 24h.

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🔒 Premium Content Alert – This buzzing stock opinion is accessible only to Premium members

Discover an exclusive list and analysis of the stocks that are trending on social medias—accessible only to our Premium subscribers. With a keen focus on the stocks that are setting social media ablaze, this weekly feature offers an invaluable lens through which to evaluate market movers. Say goodbye to the endless scroll through social media timelines; we curate the buzz so you can invest your time as wisely as your money. Unlock Premium Now.

TOP PICK

A. O. Smith Corporation, with headquarters in Milwaukee, Wis., is a global leader applying innovative technology and energy-efficient solutions to products manufactured and marketed worldwide. The Company is one of the world's leading manufacturers of residential and commercial water heating equipment and boilers, as well as a manufacturer of water treatment and air purification products. Social media mentions are up 500% in the past 24h.

COMMENT
Markets.

It's been 9 months since the lows of October 2022. One word describes the rally, it's all about resilience. Many challenges such as a banking crisis in the spring, rising rates along the way, lingering recession worries. Markets are all 30% or higher at this point from the October lows. 

Earlier this year, there were concerns about market breadth. Recently, we're seeing breadth expand. About 75% of the S&P 500 constituents are trading above their 200-day moving averages. Broader participation in the rally from other sectors, which is very healthy.

COMMENT
Tech sector.

In the last month or so, technology has not been the leader. Financials and energy have been the leaders. We've seen expansion in the rally. 

COMMENT
Inflation.

He attributes expanding breadth of the S&P rally to inflationary pressures cooling, which will lead to a pause in central banks' interest rate hiking. Potentially in 2024, we'll see a lowering of interest rates. Futures in the back half of the year show we may see some falling interest rates in the US. A stable interest rate environment is always good for stocks and bonds.

WEAK BUY

200-day MA meandering higher. Likes industrials as early-cycle winners. Strong global brand. Global demand for corn and soybeans will stay robust. Uptrend is there, but possible resistance around $450. Decently valued at 14x forward earnings, 15-16% growth rate. Couple of names he likes better.

DON'T BUY
VFV vs. ZDY

About 34% is tech and communications, so it's pricey. 25x PE, 4.4x price to book. Yield is 1.6%.

ZDY has better valuations, less exposure to tech and communications of about 20%. 18x PE, 3.3x price to book. Yield is 2.8%. More conservative. Better risk/reward.

BUY
ZDY vs. VFV

VFV is about 34% tech and communications, so it's pricey. 25x PE, 4.4x price to book. Yield is 1.6%.

ZDY has better valuations, less exposure to tech and communications of about 20%. 18x PE, 3.3x price to book. Yield is 2.8%. More conservative. Better risk/reward.

DON'T BUY

Likes the materials space, an early-cycle winner. Stock's been sideways, moving between $50-70. FCX screens better. Though the FCX chart appears similar, some of the metrics look better.

WEAK BUY

Likes the materials space, an early-cycle winner. Chart in a sideways pattern, but metrics look decent.

DON'T BUY

Quite a bit of beta. Long-term the space makes a lot of sense, but a lot depends on politics. Russian events have pushed up the price of wheat and fertilizer. 200-day MA is falling, technical picture is not appealing.

BUY

Likes it for dividends. Lots of large-cap banks and pipelines. Defensive, fairly conservative. Names like TD, CNQ, RY, SU, ENB. Very good dividend yield of 5.1%. Banks are cheap right now, so potential for a pretty good move up. Once interest rates fall, the telcos in this particular ETF will perform well.

WEAK BUY
CDZ to complement XEI?

Likes XEI for dividends. Lots of large-cap banks and pipelines.

CDZ has more mid-caps than the large caps that XEI has. Includes names like KEY, CSH.UN, GWO and ARE. More diversification, but more beta. Yield is 3.8%, not bad. Could complement XEI, but you may want to look at US or global dividend strategies for more diversification.