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The digital content creation market is exploding, fueled by technological innovations and global internet access. With platforms like Spotify (SPOT), Tencent Music (TME), and Gannett (GCI) leading the charge, the creator economy is ripe for disruption. These giants are perfectly positioned to cash in on this booming trend. Read on…The digital content creation industry is soaring to new heights. Thanks to the explosion of internet usage across the globe, technological innovations, and the increasing appetite of adults for consuming content digitally, the landscape has transformed dramatically. This surge shows no sign of slowing down.
Amid this backdrop, investors could scoop up shares of fundamentally stable digital content creator stocks, Spotify Technology S.A. (SPOT), Tencent Music Entertainment Group (TME), and Gannett Co., Inc. (GCI). These companies are poised to benefit from the continuous rise of digital content consumption.
Digital content creation is taking the world by storm, capturing attention in ways we have never seen before. The rise of videos, images, and interactive formats is undeniably magnetic. People are glued to their screens, unable to resist the allure of fresh, dynamic media that speaks volumes without words.
But the real game-changer? The internet. This is where the magic happens. According to Dataportal, a staggering 5.52 billion people were using the internet at the start of October 2024. That’s an overwhelming 67.5% of the world’s population now connected, a figure that is only expected to rise.
This global web connection has made digital content consumption the norm. In fact, over 54% of U.S. adults now turn to social media for news, as highlighted by Pew Research. This shift is a clear sign of how content is now consumed—on the go, across platforms, and often within the palm of our hands.
With no sign of slowing down, the digital content creation market is on track for explosive growth. Verified Market Research predicts it will reach an eye-popping $181.4 billion by 2030. The market is set to expand at a CAGR of 25.7%, making this an exciting space to watch.
Now let us dive deep into the fundamentals of three digital content creator stocks, starting with #3.
Stock #3: Spotify Technology S.A. (SPOT)
Headquartered in Luxembourg City, Luxembourg, SPOT provides audio streaming subscription services. The company has two segments: Premium and Ad-Supported. It also offers sales, distribution and marketing, contract research and development, and customer and other support services.
On November 26, SPOT announced the launch of Spotify for Authors, a platform designed to provide authors and publishers with better tools and data to maximize their success on SPOT.
With this launch, SPOT is expected to strengthen its position in the audiobook market, contributing to its overall expansion and enhancing its growth prospects.
On November 6, SPOT announced a partnership with Emirates to include SPOT’s curated playlists and podcasts to Emirates’ award-winning ice system. The partnership expands the company’s global reach and content offerings and facilitates SPOT’s growth prospects and global expansion.
For the fiscal third quarter that ended September 30, 2024, SPOT’s revenue increased 18.8% year-over-year to €3.99 billion ($4.22 billion). Its gross profit rose 40.1% from the year-ago value to €1.24 billion ($1.31 billion). Moreover, the company’s operating income increased significantly year-over-year to €454 million ($479.93 million).
In addition, net income and EPS attributable to owners of the parent rose 361.5% and 339.4% from the prior year’s quarter to €300 million ($317.14 million) and €1.45.
Analysts expect SPOT’s revenue and EPS for the fiscal year ending December 2025 to rise 14.8% and 56.8% from the prior year to reach $18.73 billion and $9.56, respectively.
Shares of SPOT have surged 53.5% over the past six months and 150.2% over the past year, closing the last trading session at $498.63.
SPOT’s solid fundamentals are reflected in its POWR Ratings. The stock has an overall rating of B, which translates to a Buy in our proprietary rating system. The POWR Ratings assess stocks by 118 different factors, each with its own weighting.
SPOT has an A grade for Growth and a B for Quality. Within the Entertainment – Radio industry, SPOT is ranked #2 out of 4 stocks.
Beyond what is stated above, we have also given SPOT grades for Momentum, Value, Sentiment, and Stability. Get all SPOT ratings here.
Stock #2: Tencent Music Entertainment Group (TME)
Based in Shenzhen, China, TME provides music streaming, online karaoke, and live streaming services through its online music entertainment platforms. The company’s other offerings inlcude QQ Music, Kugou Music, Kuwo Music, WeSing, Kugou Live, and Kuwo Live.
Earlier this year, TME announced the renewal of a multi-year strategic licensing agreement with Universal Music Group (UMG), a music-based entertainment company. Through this partnership, TME has gained access to UMG’s music catalog for its platforms, expanding its offerings and driving user growth.
For the fiscal 2024 third quarter that ended September 30, TME’s revenues increased 6.8% year-over-year to $1 billion. Its gross profit rose 27.7% from the year-ago value to $426 million. Moreover, the company’s operating profit grew 50.5% from the prior year’s quarter to $306 million.
Additionally, TME’s non-IRFS net profit and EPS for Class A and Class B ordinary shares increased 29.1% and 31.8% year-over-year to $276 million and $0.08, respectively.
Street expects TME’s revenue and EPS for the fiscal fourth quarter ending December 2024 to increase 4.9% and 28.2% year-over-year to $1.00 billion and $0.18, respectively. In addition, the company topped the consensus revenue estimates in all four trailing quarters.
TME’s shares surged 32.7% over the past nine months and 54.9% over the past year to close the last trading session at $12.55.
TME’s POWR Ratings mirror its fundamentals. Within the Entertainment – Media Producers industry, TME is ranked #6 out of 13 stocks.
Click here to access TME’s ratings for Quality, Value, Momentum, Growth, Sentiment, and Stability.
Stock #1: Gannett Co., Inc. (GCI)
GCI is a media and marketing solutions company that operates through three segments: Domestic Gannett Media; Newsquest; and Digital Marketing Solutions. The company offers digital-only subscription, community events platform, magazines, sports, and games etc.
On December 5, GCI’s USA TODAY announced the release of its USA TODAY Movie Meter, a platform that engages movie enthusiasts to rate which film deserves the “Film of the Year” designation. By driving user growth through its new offerings, GCI is expected to strengthen its position and enhance its growth prospects.
On September 16, GCI announced a multi-year strategic partnership with BetMGM, a sports betting and iGaming operator. Through this agreement, BetMGM will serve as the preferred online sportsbook and casino partner for USA TODAY Sports, providing sports betting odds and betting information.
With the rise of sports betting, the partnership is set to bring in new users to GCI’s platform while also expanding its offerings and bringing in new income streams.
For the fiscal 2024 third quarter that ended September 30, GCI’s total revenues came in at $612.44 million. Its adjusted EBITDA increased 5.6% year-over-year to $62.88 million. As of September 30, 2024, GCI’s cash and cash equivalents stood at $101.80 million, compared to $100.18 million on December 31, 2023.
For the fiscal year ending December 2025, analysts expect GCI’s revenue to come in at $2.51 billion.
Shares of GCI have surged 25.1% over the past six months and 181.4% over the past year to close the last trading session at $5.29.
GCI’s prospects are reflected in its POWR Ratings. The stock has a B grade for Growth and Value.
Within the B-rated Entertainment – Publishing industry, GCI is ranked #5 out of 7 stocks. Click here to access its Momentum, Quality, Sentiment, and Stability ratings.
What To Do Next?
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SPOT shares closed at $498.63 on Friday, up $5.12 (+1.04%). Year-to-date, SPOT has gained 165.36%, versus a 29.08% rise in the benchmark S&P 500 index during the same period.
About the Author: Aanchal SugandhAanchal’s passion for financial markets drives her work as an investment analyst and journalist. She earned her bachelor’s degree in finance and is pursuing the CFA program.

She is proficient at assessing the long-term prospects of stocks with her fundamental analysis skills. Her goal is to help investors build portfolios with sustainable returns.More…The post 3 Digital Content Creators Monetizing the Creator Economy appeared first on StockNews.com

The logistics and shipping market is poised for robust growth, fueled by rising e-commerce, normalizing supply chains, and technological advancements. Amid this backdrop, can FedEx Corporation (FDX), with its dominant industry position, deliver strong returns for investors in 2025? Continue to read…The global logistics and shipping market is on an upward rise owing to technological advancements, globalization, integration, new legislation, and alliances. Moreover, slowly normalizing supply chains, rising e-commerce popularity, and overall optimism due to the incoming holiday season have hugely contributed to the sector’s growth.
The global freight & logistics market is forecast to grow to $18.69 billion by 2026 at a CAGR of 4.4%. As international shipping and e-commerce services gain momentum, opportunities for FedEx Corporation (FDX) are poised to expand significantly.
FDX has established itself as a leader in the transportation and logistics industry, offering a wide range of services such as supply chain management, air and ocean freight forwarding, specialty transportation, customs brokerage, and third-party logistics.
The company’s commitment to innovation and enhancing customer experiences has further strengthened its market position. This progress is reflected in its stock performance, which has demonstrated remarkable growth, climbing 13.2% over the past six months to close at $280.68 in the last trading session.
So, let’s dive into the factors that could shape FDX’s performance in the near future.
Recent Developments
On November 14, FDX announced new enhanced visibility tools for secure package delivery to meet the demands of the holiday shipping season. By introducing new features like Map View and Picture Proof of Delivery Attempt (PPODA), to its FedEx Mobile app, the company is readily advancing its shipping systems to meet its customers’ growing demands.
With these innovations in place, FDX is set to enhance its position as an industry leader in the shipping market by providing faster, secure, and efficient shipments for its customers.
On October 30, FDX announced the unveiling of a new, state-of-the-art, automated sorting facility at the Memphis World Hub. Equipped with 1.3 million square feet across four levels and 11 miles of conveyor belt, this facility can sort 56,000 packages per hour.
By developing its portfolio of operations, FDX is set to gain massive efficiency and faster delivery times for its customers and enhance its growth prospects by increasing customer confidence.
Sound Historical Growth
Over the past five years, FDX has demonstrated consistent growth across key financial metrics. Its revenue grew at a CAGR of 4.7%, while EBITDA rose by 17.2%. Operational income (EBIT) and total assets expanded at CAGRs of 34.5% and 4.8%, respectively.
Notably, net income surged at a CAGR of 55.2%, and EPS climbed even higher at 56.9%, showcasing robust profitability. The sustained performance underscores FDX’s strong growth trajectory and its ability to deliver solid results over time.
Disappointing Financials
For the fiscal 2025 first quarter that ended August 31, 2024, FDX’s total revenue marginally declined year-over-year to $21.58 billion. Its total operating income decreased 27.3% from the year-ago value to $1.08 billion.
Additionally, the company’s net income and EPS came in at $794 million and $3.21, down 26.3% and 24.1% from the prior year’s quarter, respectively. As of August 31, 2024, FDX’s cash and cash equivalents amounted to $5.94 billion, compared to $6.50 billion on May 31, 2024.
High Profitability
FDX’s trailing-12-month ROCE of 15.05% is 13.5% higher than the industry average of 13.26%. Its trailing-12-month CAPEX/Sales stands at 5.31%, 85.1% higher than the industry average of 2.87%. Additionally, FDX’s trailing-12-month asset turnover ratio of 1.01x outperforms the industry average of 0.78x by 28.9%.
Furthermore, the stock’s trailing-12-month cash from operations is $7.27 billion, significantly higher than the $340.87 million sector average.
Mixed Analyst Estimates
Analysts predict FDX’s revenue and EPS for the fiscal 2025 second quarter that ended November 2024 to marginally decrease year-over-year to $22.13 billion and $3.97, respectively.
However, the company’s revenue for the fiscal year ending May 2025 is expected to rise marginally year-over-year to $88.51 billion. In addition, its EPS for the current fiscal year is expected to increase 9.9% from the prior year to $19.56.
Looking further ahead to the next fiscal year ending in May 2026, FDX is projected to see additional growth, with revenue and EPS forecasted to rise by 4.5% and 17.9% from the previous year to reach $92.44 billion and $23.06, respectively.
POWR Ratings Reflects Uncertainty
FDX’s mixed fundamentals are reflected in its POWR Ratings. The POWR Ratings are calculated by taking into account 118 different factors, with each factor weighted to an optimal degree. Our proprietary rating system also evaluates each stock based on eight distinct categories.
FDX earns a B grade for Quality, supported by profitability metrics exceeding the industry average. However, its C grade for Sentiment reflects the uncertainty in analyst estimates. Additionally, a C grade for Stability, paired with a 60-month beta of 1.20, indicates higher-than-average market volatility.
Within the Air Freight & Shipping Services industry, FDX is ranked #6 out of 15 stocks. Beyond what is stated above, we have also given FDX grades for Momentum, Growth, and Value. Get all FDX ratings here.
Bottom Line
The shipping and transportation industry has benefited from normalized supply chains, expanding e-commerce, and technological advancements. While FDX holds a strong position for long-term growth, its mixed analyst estimates and higher volatility suggest it may be wise to wait for a better entry point in the stock.
How Does FedEx Corporation (FDX) Stack Up Against Its Peers?
Amid the uncertainty surrounding FDX’s near-term prospects, its potential to outperform in the coming weeks appears uncertain. Meanwhile, several industry peers stand out with much more impressive POWR Ratings. So, consider these B-rated (Buy) stocks from the Air Freight & Shipping Services industry:
United Parcel Service Inc. (UPS)
AerCap Holdings N.V. (AER)
Radiant Logistics, Inc. (RLGT)
To explore more A or B-rated Air Freight & Shipping Services stocks, click here.
What To Do Next?
Get your hands on this special report with 3 low priced companies with tremendous upside potential even in today’s volatile markets:
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FDX shares closed at $280.68 on Friday, up $1.26 (+0.45%). Year-to-date, FDX has gained 12.67%, versus a 29.08% rise in the benchmark S&P 500 index during the same period.
About the Author: Aanchal SugandhAanchal’s passion for financial markets drives her work as an investment analyst and journalist. She earned her bachelor’s degree in finance and is pursuing the CFA program.

She is proficient at assessing the long-term prospects of stocks with her fundamental analysis skills. Her goal is to help investors build portfolios with sustainable returns.More…The post Can FedEx Deliver Strong Returns for Investors in 2025? appeared first on StockNews.com

For investors seeking a balanced approach, healthcare ETFs offer a combination of stability and growth potential. Therefore, it might be wise to consider Fidelity MSCI Health Care Index ETF (FHLC), iShares U.S. Healthcare ETF (IYH), and Vanguard Health Care Index Fund ETF Shares (VHT) for a balanced approach. Keep reading…Healthcare ETFs offer investors diversified exposure to the healthcare sector, encompassing pharmaceuticals, biotechnology, medical devices, and healthcare services. The healthcare industry has long been considered a defensive sector due to its non-cyclical nature. Regardless of the economic conditions prevailing in the economy, people need medical care, and that leads to consistent revenue streams for the healthcare sector.
Amid this backdrop, let’s look at the fundamentally sound healthcare ETFs Fidelity MSCI Health Care Index ETF (FHLC), iShares U.S. Healthcare ETF (IYH), and Vanguard Health Care Index Fund ETF Shares (VHT) that are poised for robust growth.
The global healthcare services market is anticipated to reach $22.57 trillion by 2031, exhibiting a CAGR of 8.3%. Innovations in biotechnology, the rise of telemedicine, and advancements in personalized medicine are causing the shift in the industry. Furthermore, the aging global population and increased healthcare spending in emerging markets present significant growth opportunities.
ETFs allow participants to spread their investments across multiple companies, reducing single-stock risk. Similarly, healthcare ETFs include companies pioneering the trends in technological advancements, allowing investors to capitalize on growth without needing to pick individual stocks. It also provides exposure to a variety of sub-sectors, from large-cap pharmaceutical firms to emerging biotech innovators, reducing risk and position to investors.
Given these encouraging trends, let’s look at the fundamentals of the top three Health & Biotech ETFs, beginning with number 3.
ETF #3: Fidelity MSCI Health Care Index ETF (FHLC)
FHLC seeks to track the performance of the MSCI USA IMI Health Care 25/50 Index. Managed by Fidelity Management & Research Company LLC and co-managed by BlackRock Fund Advisors, the fund invests in companies within the healthcare sectors. It includes a mix of value and growth stocks from companies of various market capitalizations.
As of December 4, 2024, the fund had $2.84 billion in assets under management (AUM) and an NAV of $69.88. FHLC has an expense ratio of 0.08%, compared to the category average of 0.52%.
The fund’s top holdings include Eli Lilly and Company (LLY) with a 10.26% weighting, UnitedHealth Group Incorporated (UNH) at 9.00%, Johnson & Johnson (JNJ), and AbbVie, Inc. (ABBV) at 5.96% and 5.16%, respectively. It currently has a total of 369 holdings.
The fund pays an annual dividend of $0.95, translating to a 1.38% yield at the prevailing price level. The fund’s four-year average yield is 1.33%. Its dividend payouts have grown at an 8.4% CAGR over the past five years.
Over the past five days, the fund’s net outflow came in at $24.04 million. It has gained 11.4% over the past year to close its last trading session at $69.07.
FHLC’s POWR Ratings reflect its robust prospects. The ETF has an overall rating of B, which translates to a Buy in our proprietary rating system. The POWR Ratings are calculated by considering 118 different factors, with each factor weighted to an optimal degree.
It also has an A grade for Buy & Hold and a B for Trade. Of the 42 ETFs in the Health & Biotech ETFs group, FHLC is ranked #24. To access all of FHLC’s POWR Ratings, click here.
ETF #2: iShares U.S. Healthcare ETF (IYH)
IYH invests in stocks of companies operating across healthcare sectors and tracks the Russell 1000 Health Care RIC 22.5/45 Capped Index. BlackRock Fund Advisors manages this fund.
With $3.27 billion in AUM, its top holdings are LLY with an 11.68% weighting in the fund, UNH at 9.98% weight, followed by JNJ and ABBV with 6.59% and 5.77% weightings, respectively. The ETF has a total of 106 holdings.
The ETF’s expense ratio is 0.39%, lower than the category average of 0.52%. IYH fund outflow was $12.33 million over the past five days.
IYH pays an annual dividend of $0.70, which translates to a 1.15% yield at the current price level. The fund’s dividend payouts have grown at an 8% CAGR over the past three years. Its four-year average yield is 1.11%.
Over the past year, IYH has gained 11% to close the last trading session at $61.23. The fund’s NAV was $61.24 as of December 5, 2024.
IYH’s solid fundamentals are reflected in its POWR Ratings. The fund has an overall rating of B, which translates to a Buy in our proprietary rating system.
The fund has an A grade for Buy & Hold and a B for Trade. IYH is ranked #23 in the same group. Click here to access all the IYH ratings.
ETF #1: Vanguard Health Care Index Fund ETF Shares (VHT)
Vanguard Group, Inc. manages VHT. The fund invests in growth and value stocks of companies that are operating across healthcare sectors. It seeks to track the performance of the MSCI US Investable Market Index (IMI)/Health Care 25/50.
As of December 4, VHT had $20.60 billion in AUM. It had an NAV of $267.75 as of December 5. Its expense ratio of 0.10% compares to the category average of 0.52%.
The fund’s top holdings include LLY with a 10.82% weight, UNH with an 8.38% weight, ABBV with a 5.26% weight, and JNJ with a 4.69% weight. It has a total of 413 holdings.
VHT’s trailing-12-month dividend of $3.85 yields 1.44% on the current price level, while its four-year average dividend yield is 1.30%. Its dividend payouts have grown at a 7.4% CAGR over the past three years.
VHT has gained 11.4% over the past year and 6.8% year-to-date to close the last trading session at $267.86. Its fund outflow came in at $73.67 million over the past five days.
VHT’s promising outlook is reflected in its POWR Ratings. The ETF has an overall A rating, equating to a Strong Buy in our proprietary rating system.
It has an A grade for Buy & Hold and a B for Trade. It is ranked #20 out of 42 ETFs in the same Health & Biotech ETFs group. To see the POWR Ratings of VHT, click here.
What To Do Next?
Get your hands on this special report with 3 low priced companies with tremendous upside potential even in today’s volatile markets:
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VHT shares were trading at $266.87 per share on Friday afternoon, down $0.99 (-0.37%). Year-to-date, VHT has gained 7.61%, versus a 29.04% rise in the benchmark S&P 500 index during the same period.
About the Author: ShreyaRathiMore…The post 3 Healthcare ETFs for a Balanced Investment Approach appeared first on StockNews.com

As 5G adoption grows, tech giants are positioned to dominate with their continuous innovations and strategic partnerships. Thus, you might consider adding quality tech giants, such as T-Mobile US (TMUS), QUALCOMM (QCOM), and Verizon Communications (VZ). Read on…The 5G revolution is transforming connectivity, with tech giants at the forefront of developing infrastructure and applications. The ultra-high reliability in latency, speed, and security are such advancements that are reshaping industries, from telecommunications to autonomous vehicles and healthcare.
Given the industry’s robust prospectus, it might be wise to consider the fundamentally strong tech giants T-Mobile US, Inc. (TMUS), QUALCOMM Incorporated (QCOM), and Verizon Communications Inc. (VZ) for the 5G revolution.
5G technology unlocks new possibilities in various sectors, such as the entertainment industry, which benefits from faster streaming and gaming capabilities, while healthcare leverages 5G for telemedicine and remote surgeries. Similarly, smart cities are becoming a reality due to 5G-enabled edge computing and IoT devices that drive efficiency and transportation.
Moreover, one important aspect is the high-speed and low-latency capabilities of 5G networks that enable business access to real-time data, leading to more efficient resource management. With businesses keen to reduce their carbon footprint, firms are not only developing 5G infrastructure but also providing solutions that enable the ecosystem to thrive.
The 5G market is projected to grow exponentially, with billions of dollars being funneled into its development. The 5G services market is anticipated to grow at a CAGR of 34.2%, resulting in a market volume of $427.70 billion by 2028, driven primarily by environmental monitoring and sustainability initiatives.
For investors, these companies offer exposure to one of the most transformative technologies of the decade. With that in mind, let’s delve into the fundamentals of the above-mentioned stocks.
T-Mobile US, Inc. (TMUS)
TMUS is a provider of mobile communications services, including voice, messaging, and data, under its flagship brands, T-Mobile and Metro by T-Mobile. It offers mobile communications services primarily using its 4G Long Term Evolution (LTE) network and its 5G technology network.
On October 8, TMUS announced the introduction of 5G on Demand, a complete, portable 5G private network and services solution that includes setup, teardown, and network management. This new solution will help in cutting costs and enhance operational efficiency and flexibility. It should also help TMUS secure a top spot in the communications industry as it is catering to the growing needs of its customers.
On September 18, demonstrating its commitment to returning value to shareholders, the company declared a quarterly dividend of $0.88 per share, up 35% from the previous quarter, payable to its shareholders on December 12, 2024. TMUS pays an annual dividend of $3.52, which translates to a yield of 1.44% at the current share price. Its four-year average dividend yield is 0.22%.
For the third quarter of 2024, which ended on September 30, TMUS’ total revenues increased 4.7% year-over-year to $20.16 billion, while its postpaid service revenues grew 8.3% from the same period last year to $13.31 billion.
The company’s adjusted EBITDA for the quarter amounted to $8.24 billion, representing an increase of 8.5% year-over-year. Its net income stood at $3.06 billion, up 42.8% year-over-year, while its earnings per share rose 43.4% from the prior year’s quarter to $2.61. Also, TMUS’ adjusted free cash flow grew 29% from the year-ago value to $5.16 billion.
Building on this quarter’s momentum, the company updated its guidance for 2024. TMUS anticipates that the full-year core adjusted EBITDA will range between $31.60 billion and $31.80 billion. It also forecasts adjusted free cash flow in the range of $16.70 billion to $17 billion and postpaid net customer additions to be between 5.6 million and 5.8 million.
The consensus revenue estimate of $21.40 billion for the fiscal fourth quarter (ending December 2024) represents a 4.5% increase year-over-year. The consensus EPS estimate of $2.30 for the current quarter indicates a 25.8% improvement year-over-year. The company has an impressive earnings surprise history; it surpassed the consensus revenue and EPS estimates in three of the trailing four quarters.
The stock has gained 58.4% over the past year and 47% over the past nine months to close the last trading session at $243.94.
TMUS’ POWR Ratings reflect this robust outlook. The stock has an overall rating of B, which equates to Buy in our proprietary rating system. The POWR Ratings are calculated by considering 118 different factors, with each factor weighted to an optimal degree.
TMUS has a B grade for Growth, Stability, Sentiment, and Quality. It is ranked #6 out of 20 stocks in the Telecom – Domestic industry. Click here to see the additional ratings for TMUS (Value and Momentum).
QUALCOMM Incorporated (QCOM)
QCOM engages in the development and commercialization of foundational technologies for the wireless industry worldwide. It operates through three segments: Qualcomm CDMA Technologies (QCT); Qualcomm Technology Licensing (QTL); and Qualcomm Strategic Initiatives (QSI).
On October 24, QCOM collaborated with Mistral AI to bring Mistral AI’s new state-of-the-art generative AI models, Ministral 3B and Ministral 8B, to devices powered by Snapdragon. This collaboration of generative AI is compact and powerful and should enable the devices to have other benefits, like reliability, enhanced privacy, and cost efficiency.
In the same month, QCOM announced a collaboration with Google. This strategic collaboration will allow Snapdragon Digital Chassis and Google’s in-vehicle technologies to deliver a standardized reference framework for the development of generative AI-enabled digital cockpits and software-defined vehicles (SDV).
QCOM’s revenues for the fourth quarter (ended September 29, 2024) increased 18.7% year-over-year to $10.24 billion. The company reported a non-GAAP operating income of $3.51 billion, indicating a 31.4% growth from the prior year’s quarter. QCOM’s non-GAAP net income came in at $3.04 billion, up 33.3% year-over-year, while its net income per share grew 33.2% from the prior-year quarter to $2.69.
Looking ahead, QCOM anticipates revenue for the fiscal first quarter of 2025 to fall between $10.50 billion and $11.30 billion, and QCT segment and QLT segment revenues are anticipated to be in the range of $9 billion-$9.60 billion and $1.45 billion-$1.65 billion, respectively. The company also projects non-GAAP EPS to range from $2.85 to $3.05.
Street expects QCOM’s revenue for the fiscal first quarter (ending December 2024) to increase 10.5% year-over-year to $10.96 billion. Moreover, its EPS estimate of $2.95 for the same period indicates a 7.4% year-over-year growth. In addition, it surpassed the consensus revenue and EPS estimates in each of the trailing four quarters, which is excellent.
Over the past year, the stock has surged 22.7%, closing the last trading session at $160.39.
QCOM’s bright prospects are reflected in its POWR Ratings. The stock has an overall rating of B, which translates to a Buy in our proprietary rating system.
It also has an A grade for Quality and a B for Value. Within the Semiconductor & Wireless Chip industry, it is ranked first out of 90 stocks. Click here to see QCOM’s ratings for Growth, Momentum, Stability, and Sentiment.
Verizon Communications Inc. (VZ)
VZ offers communications, information, and entertainment products and services to consumers, businesses, and governmental agencies. It operates through two segments, Verizon Consumer Group and Verizon Business Group, providing wireless and wireline communications services and products in the United States.
On November 1, buoyed by strong financial performance, the company paid its quarterly dividend, which increased by 1.25 cents to $0.6775 per share.
VZ has raised its annual dividend for 18 consecutive years. It pays an annual dividend of $2.71, which translates to a yield of 6.37% at the current share price. Its four-year average dividend yield is 5.90%. Moreover, the company’s dividend payouts have increased at an impressive CAGR of 2% over the past five years.
On September 30, VZ and Vertical Bridge entered into an agreement for Vertical Bridge to obtain the exclusive rights to lease, operate, and manage 6,339 wireless communications towers across all 50 states from VZ for $3.3 billion, with an upfront $2.8 billion in cash. This transaction will save VZ costs and create greater vendor diversity in the market.
In the fiscal third quarter that ended on September 30, 2024, VZ’s service revenues and other increased marginally year-over-year, amounting to $27.99 billion. The company’s consolidated adjusted EBITDA came in at $12.49 billion, up 2.1% year-over-year, and its EPS stood at $0.78. In addition, its total broadband subscribers stood at 11.9 million, representing an increase of nearly 16% year-over-year.
According to VZ’s guidance and outlook for its fiscal year 2024, it is projecting adjusted EBITDA to grow between 1% and 3%. Additionally, its adjusted EPS guidance ranges from $4.50 to $4.70. The company also expects total wireless services revenue growth to range between 2% and 3.5%.
Analysts expect VZ’s revenue for the fourth quarter (ended December 2024) to increase marginally year-over-year to $35.44 billion, while its EPS for the same quarter is expected to grow 2.9% from the prior year to $1.11. Moreover, the company has consistently exceeded expectations, surpassing the street EPS estimates in three of the trailing four quarters.
Shares of VZ have gained 10.8% over the past year and 12.9% year-to-date to close the last trading session at $42.55.
It’s no surprise that VZ has an overall rating of B, equating to a Buy in our POWR Ratings system. It has a B grade for Growth, Stability, and Sentiment. Out of 20 stocks in the Telecom – Domestic industry, VZ is ranked #3.
Beyond what is stated above, we’ve also rated VZ for Value, Momentum, and Quality. Get all VZ ratings here.
What To Do Next?
Get your hands on this special report with 3 low priced companies with tremendous upside potential even in today’s volatile markets:
3 Stocks to DOUBLE This Year >

TMUS shares were trading at $243.74 per share on Friday afternoon, down $0.20 (-0.08%). Year-to-date, TMUS has gained 54.27%, versus a 29.05% rise in the benchmark S&P 500 index during the same period.
About the Author: ShreyaRathiMore…The post 3 Tech Giants Leading the 5G Revolution appeared first on StockNews.com

With their ability to adapt quickly and focus on innovation, small-cap industrial stocks offer growth and resilience. Amid this backdrop, you might consider keeping an eye on industrial stocks Lindsay Corp (LNN), MRC Global (MRC), and Matthews International Corp (MATW) in this evolving industrial landscape. Read on…Small-cap industrial stocks that have a market cap below $2 billion are showing remarkable adaptability as global supply chain disruptions persist. Therefore, investors might consider adding three small-cap industrial stocks: Lindsay Corporation (LNN), MRC Global Inc. (MRC), and Matthews International Corporation (MATW) to their watchlists as they are reshaping the sector’s landscape.
In the past four years, global industrial manufacturing and construction supply chains have experienced significant disruptions while being exposed to limited supplier options. To help reduce exposure to global disruptions and maintain and boost margins, manufacturers want to be strategic in their supply base restructuring by identifying and targeting specific components of a broader cost equation and balancing cost opportunities with innovation potential.
Manufacturers are adapting to labor shortages, shifting geopolitical tensions, and potential tariffs with strategies like reshoring and automation. The demand for resilient supply chain solutions is boosting revenue streams for these agile players.
Small-cap industrials have responded by investing in localized manufacturing, adopting advanced technology like AI-driven logistics, and diversifying supplier bases. These actions enable them to reduce dependency on fragile international networks. The global Industry 4.0 market is expected to reach $634.94 billion by 2032, growing at a CAGR of 18.7%.
With that in mind, let’s look at the fundamentals of the above-mentioned stocks.
Lindsay Corporation (LNN)
With a market cap of $1.41 billion, LNN provides water management and road infrastructure products and services worldwide. The company operates through two segments: Irrigation and Infrastructure.
On June 25, LNN announced the installation of its first TAU-XR Xpress Repair Crash Cushion, the latest innovation in its proven lineup of crash cushion systems. This innovation is designed for swift installation and enhances efficiency and protection for road maintenance teams.
For the fourth quarter that ended August 31, 2024, LNN posted operating revenue of $154.99 million, while its Infrastructure segment amounted to $29.13 million, indicating a 23.8% growth from the prior-year quarter. Its net earnings came in at $12.74 million, and its earnings per share stood at $1.17.
The consensus revenue estimate of $169.80 million for the fiscal first quarter (ended November 2024) represents a 5.2% increase year-over-year. The consensus EPS estimate of $1.40 for the same quarter indicates a 2.6% improvement year-over-year. The company has an impressive earnings surprise history; it surpassed the consensus EPS estimates in each of the trailing four quarters.
Moreover, LNN’s net income has grown at CAGRs of 15.9% and 98.1% over the past three and five years, respectively. In addition, its EPS increased at 97.5% CAGR over the past five years.
LNN shares have surged 13.3% over the past six months and 8.9% over the past three months to close the last trading session at $129.40.
LNN’s stance is apparent in its POWR Ratings. The stock has a B grade for Value and Momentum. The POWR Ratings are calculated by considering 118 different factors, each weighted to an optimal degree.
Among the 35 stocks in the B-rated Industrial – Manufacturing industry, it is ranked #15. Click here to see the additional LNN ratings (Growth, Stability, Sentiment, and Quality).
MRC Global Inc. (MRC)
MRC is a global distributor of pipes, valves, fittings, and other infrastructure products and services to diversified energy, industrial, and gas utility end markets. It provides supply chain solutions, technical product service, and a digital platform to its customers in the United States, Canada, and internationally. It has a market cap of $1.18 billion.
On June 13, MRC announced an agreement with ExxonMobil in North America to be the primary provider of pipe, valves, and fitting (PVF) products and services. This agreement allows MRC to maintain, repair, operate, and perform project work across ExxonMobil’s upstream and downstream facilities.
MRC’s sales for the third quarter (ended September 30, 2024) came in at $797 million. The company’s attributable net income for the quarter amounted to $23 million, and its EPS was reported at $0.27.
Analysts expect MRC’s revenue and EPS for the current year (ending December 2024) to be $3.17 billion and $0.81, respectively. For the fiscal year 2025, its revenue is expected to increase marginally year-over-year to $3.23 billion, while its EPS is forecasted to settle at $1.03, indicating a 27.6% improvement over the prior year.
MRC’s EBIT has grown at a CAGR of 321.7% over the past three years. Likewise, the company’s levered FCF has increased at a CAGR of 26.5% over the past three years.
Over the past year, the stock has surged 31.5%, closing the last trading session at $13.89.
MRC’s bright prospects are reflected in its POWR Ratings. The stock has an overall rating of B, which translates to a Buy in our proprietary rating system.
It also has an A grade for Value and a B for Momentum and Sentiment. Within the Energy – Services industry, it is ranked #6 out of 53 stocks. Click here to see MRC’s ratings for Growth, Stability, and Quality.
Matthews International Corporation (MATW)
MATW offers brand solutions, memorialization products, and industrial technologies globally and has a market cap of $931.84 million. The company operates through three segments: Memorialization; Industrial Technologies; and SGK Brand Solutions.
On November 20, demonstrating its commitment to returning value to shareholders, the company declared a quarterly dividend of $0.25 per share, payable to its shareholders on December 16, 2024. MATW pays an annual dividend of $1, which translates to a yield of 3.21% at the current share price. Its four-year average dividend yield is 2.81%. Moreover, the company’s dividend payouts have increased at an impressive CAGR of 3.9% over the past three years.
In the fiscal fourth quarter that ended on September 30, 2024, MATW’s sales amounted to $446.69 million, while its SGK Brand Solutions segment increased marginally year-over-year to$135.94 million. The company’s adjusted net income came in at $16.56 million or $0.55 per share.
Street expects MATW’s revenue for the fiscal year (ending September 2026) to increase 2% year-over-year to $1.82 billion. Moreover, its EPS estimate of $2.08 for the same period indicates a 15.3% year-over-year growth.
Over the past three and five years, MATW’s EBIT grew at CAGRs of 41.7% and 4.1%, respectively, while its levered FCF grew at 10.7% CAGR over the past five years.
The stock has gained 29.8% over the past month and 25.1% over the past three months to close the last trading session at $30.45.
MATW’s fundamentals are reflected in its POWR Ratings. The stock has a B grade for Value and Sentiment. It is ranked #18 out of 35 stocks in the same Industrial – Manufacturing industry.
Beyond what is stated above, we’ve also rated MATW for Growth, Momentum, Stability, and Quality. Get all MATW’s ratings here.
What To Do Next?
Get your hands on this special report with 3 low priced companies with tremendous upside potential even in today’s volatile markets:
3 Stocks to DOUBLE This Year >

LNN shares were trading at $129.92 per share on Friday afternoon, up $0.52 (+0.40%). Year-to-date, LNN has gained 1.77%, versus a 28.99% rise in the benchmark S&P 500 index during the same period.
About the Author: ShreyaRathiMore…The post 3 Small-Cap Industrials Adapting to Supply Chain Challenges appeared first on StockNews.com

The S&P 500 (SPY) is making new highs and yet some experts are still trying to scare investors that a bear market is looming. 44 year investment expert Steve Reitmeister tackles this subject to show why there should be more good times ahead for stock investors. Read on for the full story…The theme in last week’s commentary was that, once again, mega caps are leading the way and smaller stocks are lagging behind. This explains how the S&P 500 (SPY) was making new highs in early October and yet the small caps in the Russell 2000 were actually in the red.
Gladly since then…the script has flipped.
The Russell 2000 has surged by nearly 5% week over week well ahead of the other large cap indices. This is a trend that should continue to play out in 2025 after four straight years of underperformance by small stocks. That trend is not built to last.
We will talk about that and more in today’s commentary.
Market Outlook
Give me a reason to be bearish.
I know its popular to be a “devil’s advocate” and take the opposing side of an argument. But right now, it’s pretty hard to come up with a bearish argument with a straight face.
The US economy continues to expand at a healthy clip. Most experts see another 2 to 3% of growth in the 3rd quarter. And with the Fed adding accommodation to the economy via rate cuts…then it’s hard to imagine a recession unfolding any time soon.
If one want’s to be a stickler they could point out that recent inflation reports have come in higher than expected and that could postpone the Fed’s rate cut intentions. I spoke about that in my previous commentary from earlier this week: Are Rising Bond Rates Bad News for Stocks?
The solution to that from the Fed would be to pause longer on the next rate cut as the current level is still restrictive. That would further lower demand to tamp down inflation.
If it did slow the economy, then that would be all the more reason for the Fed to then speed up the pace of rate cuts which investors would cheer with ample buying.
Meaning we are kind of in a Goldilocks period on the economic front where bad news is good news because it would lead to more Fed accommodation. And as the saying goes “Don’t Fight the Fed”.
Please don’t take the above to mean that we are in a runaway bull market that is only going to go up and up and up.
That was basically the case the past 2 years…but that is pretty typical behavior for a new bull market which bounces with gusto from extreme lows (like we had in October 2022).
Now 2 years later the S&P 500 has rallied over 60% and it’s fair to say that most large cap stocks are fully valued (average PE of nearly 22). There is not much more air in that balloon before value investors start crying about a bubble.
The more rational thing to do is for investors to look beyond the safety of large caps to find more value in the small and mid cap space where the average PE is under 16. Not only is that much more attractive than the pricing of large caps…but is also under the long term average.
The key word here is “rational”. As in reasonable. As in logical.
But in the short run the market can avoid these labels for a long time.
As the famed economist, John Maynard Keynes once said…
“The market can stay irrational longer than you can stay solvent”
So, it is reasonable to assume that investors will seek more value in the year ahead and that will lead them to smaller stocks. Unfortunately, it is also possible that investors keep hitting the “Easy Button” with the usual suspects in the large and mega cap space until they reach bubble proportions.
My investment plan will always seek value. And that has me overweighting my portfolio with smaller stocks. And I can be patient to wait for whenever rationality is restored to stock investment decisions. And when that happens we will beat the stuffing out of the market.
Gladly in the meantime our portfolio is doing impressively well. More details below…
What To Do Next?
Discover my current portfolio of 11 stocks packed to the brim with the outperforming benefits found in our exclusive POWR Ratings model. (Nearly 4X better than the S&P 500 going back to 1999).
All of these hand selected picks are all based on my 44 years of investing experience seeing bull markets…bear markets…and everything between.
And right now this portfolio is beating the stuffing out of the market.
If you are curious to learn more, and want to see my 11 timely stock recommendations, then please click the link below to get started now.
Steve Reitmeister’s Trading Plan & Top 11 Stocks >
Wishing you a world of investment success!

Steve Reitmeister…but everyone calls me Reity (pronounced “Righty”)
CEO, StockNews.com and Editor, Reitmeister Total Return

SPY shares were trading at $583.82 per share on Friday morning, up $1.47 (+0.25%). Year-to-date, SPY has gained 23.99%, versus a % rise in the benchmark S&P 500 index during the same period.
About the Author: Steve ReitmeisterSteve is better known to the StockNews audience as “Reity”. Not only is he the CEO of the firm, but he also shares his 40 years of investment experience in the Reitmeister Total Return portfolio. Learn more about Reity’s background, along with links to his most recent articles and stock picks.More…The post Investors…Why Be Bearish? appeared first on StockNews.com

The luxury retail industry’s robust growth is being fueled by the increasing dominance of high-net-worth individuals and growing wealth inequality. In this environment, purchasing luxury retail stocks like Dillard’s (DDS), Tapestry (TPR), and Signet Jewelers (SIG) could be a smart move as high-end spending continues to rebound. Read on…The rising number of affluent individuals, coupled with increased demand for luxury fashion products, is significantly driving growth in the luxury retail sector. This trend is benefiting the industry by expanding its high-spending customer base, which consistently seeks premium goods, contributing to market expansion and brand profitability.
Against this backdrop, investors could capitalize by grabbing shares of fundamentally strong luxury retail stocks like Dillard’s, Inc. (DDS), Tapestry Inc. (TPR), and Signet Jewelers Limited (SIG). These companies are strategically positioned to benefit from the growing spending power of wealthy consumers, who are driving demand for exclusive, high-end products.
Several factors, including a rising affluent consumer base, an increasing desire for exclusivity, and the importance of brand value, are pushing the luxury market upward. According to Bain, the top 2% of luxury consumers drive 40% of luxury sales, underscoring the significance of this customer segment for the industry.
A rising wealth inequality is also a contributing factor for the industry’s growth. Over the past 60 years, wealth has shifted dramatically from the middle class to the wealthiest families, exacerbating inequality, particularly in America. Recent research from Duke University highlights that a racial wealth gap is expanding, driven by deep-rooted racial and economic histories.
In this context of growing wealth inequality, luxury stocks are primed for growth. As the affluent class expands, their appetite for luxury goods intensifies, boosting sales and profits. This makes luxury brands an attractive investment choice for those looking for sustained financial returns.
According to Fortune Business Insights, the global luxury goods market is set to grow to $392.40 billion by 2030 at a CAGR of 4.7%. This growth reflects the increasing influence of technology and the expanding wealth of luxury consumers.
In light of these encouraging trends, let’s examine the fundamentals of three Fashion & Luxury stock picks, starting with #3.
Stock #3: Dillard’s, Inc. (DDS)
DDS is a fashion retailer with over 273 stores and a general contracting construction company. The company operates over 28 clearance centers and an online store at dillards.com. It also operates CDI Contractors, LLC, which works in store construction and remodeling.
DDS’ trailing-12-month gross profit margin of 41.20% is 9.9% higher than the 37.48% industry average. Its trailing-12-month levered FCF margin of 5.19% is 3.9% greater than the 5% industry average. Additionally, the stock’s ROCE and ROTA of 36.10% and 20.89% are 218.3% and 238.6% higher than the sector averages of 11.34% and 6.17% respectively.
For the fiscal 2024 second quarter that ended August 3, DDS reported net sales of $1.49 billion. Its net income came in at $74.50 million, while EPS stood at $4.59. In addition, as of August 3, 2024, the company’s cash and cash equivalents came in at $946.70 million, compared to $774.30 million as of July 29, 2023.
Analysts expect DDS’ revenue for the year ending January 2026 to increase marginally year-over-year to $6.51 billion. Moreover, its EPS is expected to be $29.93 for the same period. In addition, the company surpassed consensus EPS estimates in three of the trailing four quarters.
DDS’ stock has soared 7.7% over the past month and 24.2% over the past year to close the last trading session at $376.53.
DDS’ bright prospects are reflected in its POWR Ratings. The stock has an overall rating of B, equating to a Buy in our proprietary rating system. The POWR Ratings are calculated by considering 118 different factors, each weighted to an optimal degree.
DDS has an A grade for Quality and a B grade for Momentum and Value. It is ranked #18 in the 59-stock A-rated Fashion & Luxury industry.
Beyond what is stated above, we’ve also rated DDS for Growth, Stability, and Sentiment. Get all DDS ratings here.
Stock #2: Tapestry Inc. (TPR)
TPR is a global powerhouse with iconic accessories and lifestyle brands like Coach, Kate Spade New York, and Stuart Weitzman that offer women’s handbags, women’s accessories, men’s products, and more.
TPR’s trailing-12-month EBITDA margin of 21.44% is 88.5% higher than the industry average of 11.37%. Moreover, the stock’s trailing-12-month gross profit margin of 73.29% is 95.5% higher than the sector average of 37.48%. Likewise, its trailing-12-month net income margin of 12.23% is 163.6% higher than the industry average of 4.64%.
For the fiscal 2024 fourth quarter that ended on June 29, TPR’s net sales came in at $1.59 billion. Its gross profit rose 1.6% year-over-year to $1.19 billion. Moreover, the company’s net income amounted to $159.30 million, or $0.68 per share. As of June 29, 2024, its total assets stood at $13.40 billion, compared to $7.12 billion as of July 1, 2023.
Street expects TPR’s revenue for the fiscal year ending June 2025 to marginally increase year-over-year to $6.70 billion. Its EPS for the ongoing period is expected to rise 4.5% from the previous year to $4.48. Plus, the company surpassed its consensus EPS estimates in all four trailing quarters.
TPR’s stock has soared 10.7% over the past six months and 63.8% over the past year to close the last trading session at $45.20.
TPR’s POWR Ratings reflect its optimistic outlook. It has an overall rating of B, which equates to Buy in our proprietary rating system.
TPR has a B grade for Sentiment and Quality. It is ranked #17 out of 59 stocks in the Fashion & Luxury industry.
Beyond what we stated above, we have also given TPR grades for Growth, Value, Momentum, and Stability. Get all the TPR ratings here.
Stock #1: Signet Jewelers Limited (SIG)
Based in Hamilton, Bermuda, SIG is a diamond jewelry retailer with segments comprising North America; International; and Other. The company operates approximately 2,700 stores under the brands Kay Jewelers, Zales, Jared, Banter by Piercing Pagoda, Diamonds Direct, Blue Nile, JamesAllen.com, Rocksbox, and more.
SIG’s trailing-12-month levered FCF margin of 6.25% is 25.2% higher than the 5% industry average. Its trailing-12-month EBIT margin of 7.94% is marginally higher than the 7.89% industry average. Likewise, the stock’s trailing-12-month gross profit margin of 39.49% is 5.4% higher than the industry average of 37.48%.
For the fiscal 2025 second quarter that ended August 3, SIG’s sales were reported to be $1.49 billion. Its adjusted operating income came in at $68.60 million. The company’s adjusted EPS also came in at $1.25. As of August 3, 2024, the company’s total current assets amounted to $2.58 billion.
The consensus revenue estimate of $6.93 billion for the fiscal year ending January 2026 reflects a rise of 2% year-over-year. Its EPS for the next fiscal year is estimated to grow 6.9% from the previous year to $11.26. Furthermore, the company topped the consensus EPS estimates in each of the four trailing quarters, which is noteworthy.
SIG’s stock has gained 14.8% over the past three months and 43.7% over the past year to close the last trading session at $99.53.
SIG’s solid fundamentals are reflected in its POWR Ratings. The stock has an overall rating of B, translating to Buy in our proprietary rating system.
SIG has a B grade for Value, Growth, and Quality. Within the same industry, it is ranked #16 out of 59 stocks.
To see additional POWR Ratings for Momentum, Stability, and Sentiment for SIG, click here.
What To Do Next?
Discover 10 widely held stocks that our proprietary model shows have tremendous downside potential. Please make sure none of these “death trap” stocks are lurking in your portfolio:
10 Stocks to SELL NOW! >

TPR shares were unchanged in premarket trading Wednesday. Year-to-date, TPR has gained 25.78%, versus a 23.13% rise in the benchmark S&P 500 index during the same period.
About the Author: Aanchal SugandhAanchal’s passion for financial markets drives her work as an investment analyst and journalist. She earned her bachelor’s degree in finance and is pursuing the CFA program.

She is proficient at assessing the long-term prospects of stocks with her fundamental analysis skills. Her goal is to help investors build portfolios with sustainable returns.More…The post 3 Luxury Retail Stocks to Buy as High-End Spending Rebounds appeared first on StockNews.com

Why have bond rates risen ever since the Fed said they would could rates? And what does that mean for the S&P 500 (SPY) after making recent highs? Answering those 2 questions will be at the heart of Steve Reitmeister latest market commentary. Read on for more…Rising stock prices is a magical eraser that removes a lot of worry for investors. However, it must be a curiosity to a lot of you how the Fed could start rate cuts and yet bond yields have moved higher…actually quite a bit higher.
We will dive into this oddity today along with what it means for the market outlook and my year end S&P 500 (SPY) target.
Market Outlook
Let’s begin with this vital data point. The average 10 Year Treasury yield going back 4 decades is 3.87%.
If we went back further to include the hyper inflation days of the early 1980’s it would be much higher. It would also be much higher if we removed the artificially low rates Bernanke’s Fed produced to put an end to the Great Recession and revive the economy. However, it is fair to say that about 4% is the long term average for the 10 Year Treasury.
So, without a deeper dive the 4.05% yield today is pretty much on par with the long term average and thus not a serious cause for concern.
Now let’s go a step further.
Why did rates fall to 3.6% into the Fed rate cut announcement…then the Fed tell us that 1.5% of additional cuts will likely be on the way by the end of 2025…and yet rates have spiked since then???

OK. It could simply be said “buy the rumor, sell the news”.
Or simply that the Treasury yield is simply returning to the historical average near 4%.
OR…it could be noted that recent inflation data has not been good and thus the pace of future rate cuts may be a lot slower than advertised.
Going back to Friday October 4th job gains were larger than expected. With that Average Hourly Earnings (aka Wage Inflation) increased to 4% when a drop to 3.8% year over year was expected. Meaning this sticky form of inflation is not fading away as it should be.
This was later corroborated in the 10/10 CPI report where Core Inflation increased to 3.3% year over year. Another sticky form of inflation (housing/shelter) was also not easing as much as hoped for.
It did not help that on the next day the core reading for PPI rose from 2.6% to 2.8% year over year. Remember that PPI is the forward looking indicator of what shows up in CPI down the road.
Oddly investors took in all this rising inflation data and still believe that rates will be cut another 25 points at the next Fed meeting on 11/7. In fact, right now the odds point to 91.6% chance.
Put me in the 8.4% who see no rate forthcoming in November.
The Fed are patient and slow moving academics who base each decision on the facts in hand. With the labor market strong…they don’t need to cut rates to support that part of their dual mission.
Instead, they will likely focus on the “stable prices” part of the mission and notice quite clearly that recent data is not moving towards 2% as intended. So they will likely keep rates unchanged in the hopes that it will further slow demand and get inflation moving lower once again.
Reity, does this change your stock market outlook?
Not really. Things are still pretty well on track with the ideas shared in my recent 2025 Stock Market Outlook.
The target of hitting 6,000 before the year ends is too tempting not to reach after the election is finalized plus the seasonal benefit of the Santa Claus rally.
However, after that I suspect a fairly lackluster year for the S&P 500 in 2025. This fits in with historical trends that year 3 of a bull market is often around 0%.
And fits in with the fact that the PE for large caps, especially mega caps, are fully valued by any reasonable standard (PE of 22 and 30 respectively when long term average is 18).
Gladly there is plenty of room to catch up in the small and mid cap space where the forward looking PE is only 15-16. Add in 4 years of underperformance for the group and 2025 should be their time to shine.
That is why I am leaning in heavily with these smaller stocks in the Reitmeister Total Return portfolio. It has led to strong results this year…especially of late. And fully expect our lead over the market to increase in the year ahead.
What To Do Next?
Discover my current portfolio of 11 stocks packed to the brim with the outperforming benefits found in our exclusive POWR Ratings model. (Nearly 4X better than the S&P 500 going back to 1999).
All of these hand selected picks are all based on my 44 years of investing experience seeing bull markets…bear markets…and everything between.
And right now this portfolio is beating the stuffing out of the market.
If you are curious to learn more, and want to see my 11 timely stock recommendations, then please click the link below to get started now.
Steve Reitmeister’s Trading Plan & Top 11 Stocks >
Wishing you a world of investment success!

Steve Reitmeister…but everyone calls me Reity (pronounced “Righty”)
CEO, StockNews.com and Editor, Reitmeister Total Return

SPY shares fell $0.21 (-0.04%) in after-hours trading Tuesday. Year-to-date, SPY has gained 23.13%, versus a % rise in the benchmark S&P 500 index during the same period.
About the Author: Steve ReitmeisterSteve is better known to the StockNews audience as “Reity”. Not only is he the CEO of the firm, but he also shares his 40 years of investment experience in the Reitmeister Total Return portfolio. Learn more about Reity’s background, along with links to his most recent articles and stock picks.More…The post Are Rising Bond Rates Bad News for Stocks? appeared first on StockNews.com

The S&P 500 (SPY) has been in the plus column for 5 straight months. Investment pro Steve Reitmeister shares why that party ends in October and how to prepare for resumption of the bull market in November and beyond. Read below for full story…The only conversation in September was Fed rate cuts.
The only conversation in October is the election which is leading to a pause in the bull market.
But soon we will get back to normal…that being a focus on the economic environment and what that means for earnings growth and how that translates to stock prices. So, let’s use our time today to review the economic outlook and what that means for stock prices.
Market Outlook
It’s easy to get lost in the cornucopia of economic data. So, the best place to start is with a picture of GDP. As long as that is healthy, then hard to get too hung up about a bad report here or there.
The most successful model in measuring GDP in the United States is GDPNow from the Atlanta Fed. That stands at a fairly robust +3.2% growth estimate for Q3. At this stage the model has well over 80% of the inputs for Q3…so it is not likely to change much.
Some of the most recent data is also very encouraging about the direction of the economy. ISM Services last Thursday being the most impressive with a showing of 54.9 which is well above the previous month at 51.5. Even better is the forward looking New Orders component soaring up to 59.4 which says more good times ahead.
This was a nice relief after another tepid ISM Manufacturing report on Tuesday that came in at 47.2…the same as the previous month. Yes, below 50 is a sign of contraction. But really that has been the case for manufacturing the majority of the last 2 years as rising rate environment is rarely good for industrials. That should improve going forward.
The stock market immediately celebrated the impressive job gains last Friday in the Government Employment Situation report. However, as the news washed over investors, they realized this was not such good news for inflation (especially given the uptick in Average Hourly Earnings to 4%). This may have the Fed being more cautious in their approach to rate cuts.
Bond investors are right now a bit more wise to this issue given how 10 year Treasury rates have actually gone up ever since the 9/18 Fed rate cut meeting. Instead of the recent low of 3.6% on the 10 year Treasury it is now back to 4%.
Yes, some will point out that 4% is basically the long term average and is not necessarily a bad thing. But it does seem odd that the Fed has talked about 1.5% in additional rate cuts between now and the end of 2025. Thus, to see the Treasuries move higher is a bit of a head scratcher.
Here are the key economic events on the horizon:
10/9 FOMC Minutes- investors will be looking for more clues of their plans for future rate cuts.
3 Inflation Reports: 10/10 CPI > 10/11 PPI > 10/31 PCE (trick or treat)- The overall trend has clearly been down for a while making the Fed feel comfortable in finally cutting rates. However, any more signs of sticky inflation, like the unwanted gain in Average Hourly Earnings, then the ever cautious Fed might be slower in rolling out future rate cuts. This would obviously be a negative for the stock market which is very much counting on this additional accommodation.
At this stage I see the 5 month winning streak for the S&P 500 (SPY) coming to an end in October. I am not talking about anything ominous. Just the Presidential election makes for a natural place for investors to press pause.
Pause doesn’t necessarily mean flat or calm. It might end up being a volatile month with a lot of sector rotation. That certainly has been the case so far in October.
Yet once the election results are in hand, I see a bull run resuming with 6,000 a very attractive target to reach by years end. Even better should be the gains for small and mid caps who still have a lot of room to play catch up with their large cap peers.
So I would lean into these smaller stocks. Especially in Risk On industries like industrials, materials, consumer discretionary, banks, auto, home building etc.
The big difference from the first couple years of this bull market should be a greater eye towards value as the nearly 22 PE for the S&P 500 says we are fully valued at this time.
Gladly small and mid caps are a more appealing 15-16 PE as a group. Again, this is why they should be the group that outperforms in the months, and likely years ahead.
Thankfully our POWR Ratings has a small cap bias…and a value bias. So we really are coming into the sweet spot for the top stocks selected by the system. This should lead to some great outperformance in the months ahead.
As always, my favorite POWR Ratings stocks are shared in the section below…
What To Do Next?
Discover my current portfolio of 11 stocks packed to the brim with the outperforming benefits found in our exclusive POWR Ratings model. (Nearly 4X better than the S&P 500 going back to 1999).
All of these hand selected picks are all based on my 44 years of investing experience seeing bull markets…bear markets…and everything between.
And right now this portfolio is beating the stuffing out of the market.
If you are curious to learn more, and want to see my 11 timely stock recommendations, then please click the link below to get started now.
Steve Reitmeister’s Trading Plan & Top 11 Stocks >
Wishing you a world of investment success!

Steve Reitmeister…but everyone calls me Reity (pronounced “Righty”)
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SPY shares fell $0.37 (-0.06%) in after-hours trading Tuesday. Year-to-date, SPY has gained 21.73%, versus a % rise in the benchmark S&P 500 index during the same period.
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The wide availability of online content and social media platforms has fueled market competition among streaming service companies, resulting in rising media industry prospects. Therefore, investors could watchlist sound media stocks Apple (AAPL), Netflix (NFLX), and The Walt Disney (DIS) as streaming wars heat up. Keep reading…The increasing demand for digital content among consumers, growing internet penetration, and rising adoption of low-latency video streaming platforms have propelled the prospects for the streaming services market. The rising prevalence of impressive technologies like Gen AI further supports this trend.
Given this backdrop, investors could consider fundamentally sound entertainment stocks Apple Inc. (AAPL), Netflix, Inc. (NFLX), and The Walt Disney Company (DIS) to watch for now.
In today’s digital generation, where the internet is easily accessible, digital media consumption is surging rapidly. In a recent survey, it was discovered that 99% of all U.S. households pay for at least one or more streaming services. Also, notably, Americans spend about three hours and nine minutes a day on streaming digital media.
These consumption figures and growing demand have resulted in rigid competition among different media companies offering streaming services.
Besides, the global video streaming market is projected to grow to $2.66 trillion by 2032, exhibiting a CAGR of 18.7%. The market is currently driven by increasing demand for video-on-demand (VoD) streaming services, improving internet connectivity, and the popularity of social media platforms.
With these favorable trends in mind, let’s delve into the fundamentals of the three top entertainment stock choices mentioned above.
Apple Inc. (AAPL)
AAPL designs, manufactures, and markets smartphones, personal computers, tablets, wearables, and accessories globally. The company provides iPhone, Mac, iPad, wearables, home, and accessories including AirPods, Apple TV, Apple Watch, Beats products, and HomePod.
On September 9, AAPL introduced breakthrough sleep and hearing health features for its Apple Watch® and AirPods Pro® 2 to help customers support their sleep and hearing health for several medical conditions. The Hearing Aid feature helps make access to hearing assistance easier for the users.
The new technology will strengthen AAPL’s customer support, contribute to user well-being, and establish the company as a leader in health-focused technology.
On the same day, AAPL launched a new lineup of AirPods® models and features. The new AirPods 4 are the most advanced and comfortable headphones AAPL has created, offering an open-ear design, which comes in two distinct models: AirPods 4 and AirPods 4 with Active Noise Cancellation (ANC).
The company also introduced iPhone® 16 Pro and iPhone 16 Pro Max, featuring Apple Intelligence™, larger display sizes, new creative capabilities with innovative pro camera features, and stunning graphics for immersive gaming, and more, all powered by the A18 Pro chip.
AAPL’s total net sales increased 4.9% from the year-ago value to $85.78 billion during the third quarter that ended June 29, 2024. Its operating income increased 10.2% year-over-year to $25.35 billion. The company’s net income and EPS came in at $21.45 billion and $1.40, reflecting 7.9% and 11.1% growth from the prior year’s quarter, respectively.
Analysts expect AAPL’s revenue for the fourth quarter (ended September 2024) to grow 5.3% year-over-year to $94.21 billion. The company’s EPS is expected to increase 9.4% year-over-year to $1.60 for the same period. Moreover, the company surpassed the consensus revenue and EPS estimates in all of the trailing four quarters.
Shares of AAPL have surged 34.3% over the past six months and 30.6% over the past year to close the last trading session at $226.80.
AAPL’s bright prospects are reflected in its POWR Ratings. The POWR Ratings are calculated by considering 118 different factors, each weighted to an optimal degree.
The stock has an A grade for Quality. Within the Technology – Hardware industry, AAPL is ranked #20 out of 42 stocks.
Click here to access additional ratings of AAPL for Value, Momentum, Growth, Sentiment, and Stability.
Netflix, Inc. (NFLX)
NFLX is an entertainment services provider. The company provides TV series, documentaries, feature films, and games across various genres and languages. It also allows its members to receive streaming content through a host of internet-connected devices, including TVs, digital video players, TV set-top boxes, and mobile devices.
NFLX’s trailing-12-month EBIT margin and net income margin of 23.82% and 19.54% are 151.7 % and 530.6% higher than the respective industry averages of 9.32% and 3.10%. Likewise, the stock’s trailing-12-month levered FCF margin of 55.22% is significantly higher than the industry average of 8.04%.
During the second quarter, which ended June 30, 2024, NFLX’s revenues increased 16.7% year-over-year to $9.56 billion. Its operating income grew 42.5% year-over-year to $2.60 billion. The company’s net income and EPS were $2.15 billion and $4.88, up 44.3% and 48.3% from the prior year’s quarter, respectively.
In addition, the company’s total assets stood at $49.10 billion as of June 30, 2024, compared to $48.73 billion as of December 31, 2023.
Analysts expect NFLX’s revenue for the third quarter (ended September 2024) to increase 14.3% year-over-year to $9.76 billion, while its EPS for the same quarter is expected to grow 37.1% year-over-year to $5.11. Also, NFLX has topped the consensus revenue estimates in each of the trailing four quarters.
NFLX’s shares have gained 16.6% over the past six months and 91% over the past year to close the last trading session at $719.70.
NFLX’s sound fundamentals are reflected in its POWR Ratings. The stock has an overall rating of B, which translates to a Buy in our proprietary rating system.
The stock has an A grade for Quality and a B grade for Sentiment. Within the A-rated Internet industry, NFLX is ranked #17 among the 52 stocks.
In addition to the POWR Ratings we’ve stated above, we also have NFLX ratings for Stability, Momentum, Value, and Growth. Get all NFLX ratings here.
The Walt Disney Company (DIS)
DIS is a global entertainment company. The company operates through three segments: Entertainment; Sports; and Experiences. It produces and distributes film and television video streaming content under banners like ABC Television Network, Disney, Freeform, FX, Fox, National Geographic, and Star brand television channels.
DIS’ trailing-12-month net income margin of 5.31% is 71.2% higher than the industry average of 3.10%. Further, the stock’s trailing-12-month EBIT margin and levered FCF margin of 12.93% and 9.19% are 38.7% and 14.4% higher than the industry averages of 9.32% and 8.04%, respectively.
For the third quarter that ended June 29, 2024, DIS’ total revenue increased 3.7% year-over-year to $23.16 billion. Its total segment operating income increased 18.7% from the year-ago value to $4.23 billion. Also, net income attributable to DIS was $2.62 billion, against a net loss of $460 million during the prior year’s quarter.
Furthermore, the company’s cash and cash equivalents and total assets stood at $5.95 billion and $197.77 billion as of June 29, 2024, respectively.
Street expects DIS’ revenue and EPS for the fourth quarter (ended September 2024) to increase 5.9% and 35.8% year-over-year to $22.49 billion and $1.11, respectively. Also, the company topped the consensus EPS estimate in all four trailing quarters, which is remarkable.
Shares of DIS have surged 5.9% over the past month and 20% over the past year to close the last trading session at $95.15.
DIS’ POWR Ratings reflect its sound fundamentals. The stock has a B grade for Sentiment and Growth. It is ranked #6 out of 12 stocks within the Entertainment – Media Producers industry.
In addition to the POWR Ratings we’ve stated above, we also have DIS ratings for Momentum, Quality, Value, and Stability. Get all DIS ratings here.
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AAPL shares were trading at $222.39 per share on Monday afternoon, down $4.41 (-1.94%). Year-to-date, AAPL has gained 15.95%, versus a 20.51% rise in the benchmark S&P 500 index during the same period.
About the Author: Rjkumari SaxenaRajkumari started her career as a writer but gradually shifted her focus to financial journalism, leveraging her educational background in Commerce. Fascinated by the interplay of business and economic shifts in equities, she aspires to evolve as an analyst. With a knack for simplifying complex financial concepts, her mission is to empower investors with insights that lead to profitable decisions.More…The post 3 Media Stocks to Watch as Streaming Wars Heat Up appeared first on StockNews.com