Today, The Weekly Buzzing Stocks by Billy Kawasaki and Gordon Reid commented about whether MRK-N, PHM-N, GS-N, WMT-N, TOL-N, CLS-T, UPS-N, FDX-N, AMZN-Q, USFD-N, LEN-N, ADBE-Q, CRWD-Q, AAPL-Q, GOOG-Q, GM-N, CB-N, UBER-N, CVS-N, CVNA-N, VZ-N, IONQ-N are stocks to buy or sell.
Nice to have two very nice years, but there's a cost to everything. As prices go up, value tends to drop, and that's what we've seen. We're slightly overvalued on PE ratios against historical levels. 2025 will offer opportunity, but we have to be realistic. The Mag 7 contributed over half to S&P returns for 2024.
Those who have benefited from the momentum plays of 2023-24 should be quite careful, lots of air under those stock prices. Unlike quality companies that are well valued against their historical norms, the high flyers don't have that valuation floor you can rely on when markets get scared.
Make sure we're grounded in our stock choices, in a risk-off mentality. You just have to do your work. It's pure stock-picking and factor analysis as to what's going to drive the market.
He looks for earnings, earnings growth, positive earnings revisions, quality balance sheets, and strong moats.
He believes so. His small-cap portfolio had another good year. Valuations are quite a bit lower than those in the big-cap S&P 500, both in absolute terms and compared to historical norms. Lots of opportunity there.
Much is due to smaller companies being more domestically based, so they don't face the huge headwinds of a strong USD. And the regulatory environment is positive. Changes to corporate tax policies will be most beneficial to domestic companies.
One of the most mispriced stocks around. Idea of win/loss in the space is simplistic. Good quality companies will get their piece of the pie. Well-respected brand, good app penetration. Growing at 25% annual clip on topline and earnings. Advertising is the fourth leg of the stool, and this is just getting started.
In general, try to exclude the political rhetoric and how it will impact individual companies, though you have to be prepared for what might come. With Trump, every 10 pounds of words leads to about 1 ounce of action. To try to react to the words will take you to bad places. Put your noise cancellation headphones on, and let the company do the talking.