BUY

Can benefit when interest rates are cut when demand for their house-end faucets rises. Like their innovative products.

BUY

The housing industry will benefit from lower interest rates. AZEK makes great faux-wood products (i.e. for decks) which saves consumers on buying wood, and their products are mostly from recycled materials.

BUY

Can benefit from interest rate cuts, since its business is in homebuilding and related.

COMMENT

He's glad it's been declining ahead of reporting tomorrow, so it has a chance to go higher.

DON'T BUY

Down 33% the past month and could fall more. It isn't making any money and isn't delivering cancer vaccines.

BUY ON WEAKNESS

They delivered a good quarter. So did Zoom. Note that is has jumped 19% in the past month, so it could a little for a bit.

PARTIAL BUY

They're doing very well. Don't wait for a pullback, because it may not happen. Buy partially, because it's rallying lately.

BUY

Delivered an amazing quarter last week after a brutal 2 years (-62%) suffering problems like too much inventory post-Covid and theft. The new CEO led the company on a rally from last October through April, but the company issued an an earnings miss in May and issued weak guidance for the next quarter. Shares plunged from a skeptical street. But shares jumped 10% last week after reporting. Target is back! They delivered 2% same-store sales growth, a beat, and the first quarter of positive comps since end-2022, even with lower comps. Also, digital sales are up and higher general traffic. They beat earnings and operating margins though lowered slightly their earnings forecast. Reasons for success: controlling theft, launching a successful loyalty program and cutting prices on 5,000 items.

BUY

This high dividend-payer of 4.9% will benefit from lower interest rates. Was sideways until Aug. 5; has rallied 13% since reporting beats on Aug. 5. Malls are dead? No--SPG golds high-end malls and their occupancy rate is 95.6%. Net operating income is up 4.5% YOY.

BUY

This high dividend-payer of 5.4% will benefit from lower interest rates. A player in US energy growth. Shares are up 21% this year despite weakening energy prices. Solid fundamentals.

BUY

The second-highest yielding utility on the S&P at 4.3%, a major player in Kansas and western Missouri. It's been sideways since it was formed in a merger. But three projects in this area will boost their demand: a $4 billion EV battery plant, a $800-million data centre from Meta and $1 billion data centre from Google, all to be online within the next 4 years and will total 750 megawatts of load. Will benefit when interest rates decline.

BUY ON WEAKNESS

A regional success story and great company, but it just hit its all-time high today. Wait. 58% this month is too toppy.

WEAK BUY

They report this week, so you're playing Russian roulette, but it's a great operator run by a fine CEO. He expects a good quarter.

PARTIAL BUY

Their core heating and AC business has been more durable than many expected. Is up 25% this year so far, chasing more business from data centres and run by an excellent CEO. Their reported an okay quarter at the end of July with a mixed forecast, dragged down by an acquisition. but shares rallied on news of 30% organic orders growth, with 40-45% HVAC order growth from both residences and businesses. Data centres run hot and need cooling. Selling at 25x PE now, so not cheap. Will benefit from lower interest rates.

BUY ON WEAKNESS

A great HVAC play. Is up 292% in the past 5 years and 44% YTD. In late July reported a clean beat and raise with 13% organic revenue growth and raised its full-year forecast. Bookings grew 19% YOY and carry a $7.5 billion order backlog, heavy in commercial orders from data centres especially, schools and healthcare. Trades at a pricey 32x PE after a big run vs. 26x historical.