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Inflation came back into focus this week with the CPI and PPI reports being served up. What do they tell us about future Fed action? More importantly, what does it tell us about the path of the S&P 500 (SPY) from here. Read on for the full story…Inflation and the Fed were the main investment stories throughout 2024. However, in early January two other stories jumped to the front of the line:

Government debt concerns causing higher long term Treasury rates
Trump Tariff Plans (and the unknown outcome)

 
I give a pretty good accounting of these 2 vital stories in my commentary from earlier this week.  Today the focus returns to inflation and the Fed as CPI and PPI reports were served up. Let’s dig in to find out what they tell us.
Market Outlook
Coming down the home stretch of 2024 we endured several straight months of inflation reports that did not ebb lower. The Fed was fully aware of this leading to their 12/18 announcement that indeed inflation is a bit too persistent and thus they will slow down their planned pace of rate cuts.
Traders threw a tantrum like a 3 year old who was told they won’t be getting a 4th slice of cake at the birthday party. This led to a broad market pullback with many groups in full blown correction territory (namely small caps and any groups that were counting on lower rates like home builders).
The good news is that the January inflation reports are showing some improvement in the data. Most investors will want to focus on the more widely followed CPI report from 1/15. There we saw core inflation cool a notch from 3.3% to 3.2%.
The most beneficial part of that release was the modest 0.2% month over month reading for core CPI. If that held up it would get the annual pace down closer to the 2% target.
Investors don’t pay as much attention to the PPI report. However, economists understand it is a leading indicator of what shows up in CPI down the road.
Here too the best news was on the month over month numbers where core PPI was flat. If this moderating trend continues, then it once again helps point to getting inflation back to the 2% Fed target.
These reports did not move the needle on expectations for the next Fed meeting on 1/29. It is widely understood from last time that no rate cut will be forthcoming. In fact, they are projecting only 2 cuts in the year ahead with investors right now thinking that is next at the May or June meeting.
Pulling back to the bigger economic picture, the good news is that most of the data is in for economists to accurately model Q4 GDP. Most are coming out in a range of +2.5% to 3%. That would be a robust reading that should also point to solid earnings growth.
The best news on the economic front to share is that the NFIB Small Business Optimism index LEAPT from 93.7 in October before the election to 105.1 now. This is the highest reading since October 2018.
The more optimistic these business owners feel about the future…the more likely they are to invest in their business including the hiring of more employees to fuel growth. So this is great news to increase the odds of more quality GDP reads in the quarters to come.
For as good as all that economic news is, I still think the unknowns about government debt and especially tariffs will weight heavily on stocks.
Just don’t see a current catalyst for the S&P 500 (SPY) to make new highs above 6,100.
On the downside is the recent lows around 5,800. And if that falters then we are talking about a rendezvous with the 200 day moving average currently at 5,589.
That downside should not scare you that much. Especially since the bear market low is 3,491. Meaning that just like Virgina Slims ads “we’ve come a long way baby”.
This just seems like a natural juncture to consolidate under the highs + sector rotation to shake off any excess valuations.
This means to expect a fair amount of volatility. Both big drops and big bounces. The kind of action that can get an investor nauseous.
The solution is to keep your eyes on the long term horizon which is still bullish. So best to use any forthcoming dips as an opportunity to load up on the best stocks for the next higher.
Which stocks are those?
Read on in the next section for the answer…
What To Do Next?
Check out my portfolio with hand selected picks for the current market environment:

7 stocks to buy
1 stock to short
1 ETF to buy

All the stocks have been selected using the proven outperformance that comes from our POWR Ratings stock selection model which has done 4X better than the S&P 500 since 1999.
Now add in my 44 years of investing experience seeing bull markets…bear markets…and everything between. This helps me pick the right stocks for the current environment.
If you are curious to learn more, and want to see my current 9 recommendations, then please click the link below to get started now.
Steve Reitmeister’s Trading Plan & Top Recommendations >
Wishing you a world of investment success!

Steve Reitmeister…but everyone calls me Reity (pronounced “Righty”)
Editor, Reitmeister Total Return

SPY shares were trading at $597.18 per share on Friday morning, up $5.54 (+0.94%). Year-to-date, SPY has gained 1.89%, 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 The Latest on Inflation & the Stock Market appeared first on StockNews.com

The tech hardware market is booming in 2025, driven by smart city initiatives, IoT demand, and innovation in robotics, cloud, and edge computing, offering lucrative investment opportunities. Given these innovation trends, tech hardware stocks like NetApp (NTAP), Seagate Technology (STX), and Silicon Motion Technology (SIMO) could be smart choices this year. Read on…In today’s technology-driven world, the rise of smart city initiatives and IoT-enabled infrastructure has significantly increased the demand for advanced hardware. This trend has fueled growth in hardware segments like SSDs, NAS, servers, and the chip industry.
As the sector continues to innovate, investors might consider fundamentally strong tech hardware stocks such as NetApp, Inc. (NTAP), Seagate Technology Holdings plc (STX), and Silicon Motion Technology Corporation (SIMO), which offer promising prospects.
Ever-evolving hardware innovations are driving a surge in digital capabilities while advancing sustainable manufacturing practices, resonating with eco-conscious consumers. Meanwhile, increasing investments in hardware research and development make this sector both dynamic and lucrative. Hence, Gartner forecasts worldwide device spending to rise by 9.5% in 2025, reaching $805.72 billion.
Simultaneously, the rising demand for advanced hardware to support robotics, cloud, and edge computing continues to fuel growth in the tech hardware sector. As a result, the global IT hardware market is projected to reach $141.15 billion this year, growing at a CAGR of 7.9%. Similarly, the global semiconductor market is expected to expand by 15% in 2025, further solidifying the tech hardware sector’s growth trajectory.
Considering these conducive trends, let’s assess the fundamentals of the abovementioned tech hardware stocks.
NetApp, Inc. (NTAP)
NTAP provides cloud-led and data-centric services to manage and share data on-premises and private and public clouds worldwide. It operates in two segments: Hybrid Cloud and Public Cloud. The company offers intelligent data management software and storage infrastructure solutions.
On December 1, 2024, NTAP announced the integration of its on-premises enterprise storage arrays with AWS Outposts, simplifying hybrid cloud deployments by enabling external block data volumes management via the AWS Management Console. The solution enhances resiliency, compliance, and infrastructure optimization for customers running enterprise applications and databases on Outposts.
On November 11, 2024, NTAP announced an expanded collaboration with Red Hat to enhance enterprise application development and management in virtual environments. This partnership integrates NTAP’s intelligent data infrastructure with Red Hat OpenShift, offering customers improved flexibility and performance for managing virtualized environments and Kubernetes containerized workloads.
In terms of the trailing-12-month Return on Total Capital, NTAP’s 26.75% is 753% higher than the 3.14% industry average. Similarly, its 12.78% trailing-12-month Return on Total Assets is 546.3% higher than the industry average of 1.98%. Its 0.72x trailing-12-month asset turnover ratio is 14.8% higher than the industry average of 0.62x.
For the fiscal second quarter, which ended October 25, 2024, NTAP’s net revenue increased 6.1% year-over-year to $1.66 billion. Its non-GAAP gross profit rose 6% from the year-ago value to $1.18 billion.
NTAP’s non-GAAP income from operations grew 13.4% year-over-year to $475 million. In addition, the company’s non-GAAP net income came in at $493 million or $1.87 per share, increases of 16% and 18.4% year-over-year, respectively.
Street expects NTAP’s revenue for the quarter ending January 31, 2025, to increase 5.3% year-over-year to $1.63 billion. Its EPS for the quarter ending April 30, 2025, is expected to rise 10.4% year-over-year to $1.99. It surpassed the EPS estimates in each of the trailing four quarters. Over the past year, the stock has gained 39.6% to close the last trading session at $119.98.
NTAP’s POWR Ratings reflect robust prospects. It has an overall rating of B, which translates to a Strong Buy in our proprietary rating system. The POWR Ratings assess stocks by 118 different factors, each with its own weighting.
It is ranked #19 out of 41 stocks in the Technology – Hardware industry. It has an A grade for Quality and a B for Momentum. Click here to see NTAP’s Growth, Value, Stability, and Sentiment ratings.
Seagate Technology Holdings plc (STX)
Based in Singapore, STX is engaged in providing data storage technology and infrastructure solutions globally. The company offers mass capacity storage products, including enterprise nearline HDDs, enterprise nearline SSDs, enterprise nearline systems, video and image HDDs, and network-attached storage drives.
In terms of the trailing-12-month asset turnover ratio, STX’s 0.96x is 53.6% higher than the 0.62x industry average. Likewise, the stock’s 14.37% trailing-12-month Return on Total Capital is 358.3% higher than the 3.14% industry average. Also, its 10.34% trailing-12-month Return on Total Assets is 422.6% higher than the industry average of 1.98%.
STX’s revenues for the fiscal first quarter ending September 27, 2024, increased 49.1% from the previous year, reaching $2.17 billion. Similarly, its non-GAAP operating income was $403 million, compared to a non-GAAP operating loss of $129 million.
For the same quarter, its non-GAAP net income and non-GAAP EPS stood at $337 million and $1.58, respectively, compared to a non-GAAP net loss and loss per share of $46 million and $0.22.
For the quarter ended December 30, 2024, STX’s revenue is expected to increase 49.1% year-over-year to $2.32 billion. Its EPS for the same quarter is expected to grow considerably year-over-year to $1.88. STX surpassed the consensus EPS estimates in three of the trailing four quarters. Over the past nine months, the stock has gained 15.6% to close the last trading session at $96.22.
STX’s strong fundamentals are reflected in its POWR Ratings. It has an A grade for Growth and a B for Momentum and Quality. Within the Technology – Hardware industry, it is ranked #22. To access the additional POWR Ratings of STX for Value, Stability, and Sentiment, click here.
Silicon Motion Technology Corporation (SIMO)
Based in Hong Kong, SIMO and its subsidiaries design, develop, and market NAND flash controllers for solid-state storage devices internationally. The company offers controllers for computing-grade SSDs, enterprise-grade SSDs, eMMC and UFS mobile embedded storage, flash memory cards and flash drives, and specialized SSDs.
On November 8, 2024, SIMO announced its collaboration with TOP-electronics to expand its market presence across the EMEA region. The partnership focuses on delivering Ferri embedded storage and display interface solutions for AI, AIoT, embedded, and automotive applications.
In terms of the trailing-12-month net income margin, SIMO’s 10.90% is 186.5% higher than the 3.80% industry average. Its 10.97% trailing-12-month EBIT margin is 105.1% higher than the industry average of 5.35%. Moreover, its 0.81x trailing-12-month asset turnover ratio is 29.6% higher than the industry average of 0.62x.
In the fiscal third quarter that ended September 30, 2024, SIMO’s net sales stood at $212.41 million, up 23.3% year-over-year, and non-GAAP gross profit rose 35.5% year-over-year to $99.33 million. For the same quarter, its non-GAAP net income and earnings per ADS increased 47.3% and 46% over the prior-year quarter to $31.02 million and $0.92, respectively.
Analysts expect SIMO’s EPS for the quarter ending March 31, 2025, to increase 7% year-over-year to $0.69. Its revenue for fiscal 2024 is expected to increase 25.7% year-over-year to $803.40 million. It surpassed the Street EPS estimates in each of the trailing four quarters. Over the past three months, the stock has gained 8.2% to close the last trading session at $51.71.
SIMO’s positive outlook is reflected in its POWR Ratings. It has an overall rating of A, equating to a Strong Buy in our proprietary rating system.
It is ranked #6 out of 90 stocks in the Semiconductor & Wireless Chip industry. It has an A grade for Value. To see SIMO’s Growth, Momentum, Stability, Sentiment, and Quality, 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:
3 Stocks to DOUBLE This Year >
 

NTAP shares were unchanged in after-hours trading Friday. Year-to-date, NTAP has gained 5.65%, versus a 1.96% rise in the benchmark S&P 500 index during the same period.
About the Author: Abhishek BhuyanAbhishek embarked on his professional journey as a financial journalist due to his keen interest in discerning the fundamental factors that influence the future performance of financial instruments.More…The post 3 Tech Hardware Stocks Quietly Innovating appeared first on StockNews.com

Audio technology is evolving at a rapid pace with growing investments in cutting-edge technologies and innovations. Dolby Laboratories (DLB) stands at the forefront of the segment and is poised to benefit significantly. So, let’s analyze DLB to understand whether its a sound investment today. Read on to know more…Dolby Laboratories, Inc. (DLB) is a global leader in immersive entertainment. The company specializes in noise reduction, encoding/compression, spatial audio, and HDR imaging.
Dolby has revolutionized audio technologies through the years and is well-known for its wide offerings across the globe. The company’s products and innovations are a preferred choice of various leading companies worldwide. DLB’s innovations are actively incorporated into devices and equipment to enhance their features, creating unprecedented avenues.
DLB concluded a successful and prosperous financial year on September 27, 2024, with remarkable revenue and net income growth in the fourth quarter. During the year, Dolby emphasized operational efficiency and expansion. It closed the acquisition of GE Licensing and expects gradual margin and non-GAAP earning growth in fiscal 2025, along with a strengthened position in imaging patents.
The company also acquired THEO Technologies, expanding Dolby.io’s ability to offer customers the best solutions for real-time streaming experiences. This acquisition also resulted in the launch of a comprehensive range of cloud video products and solutions. Such capability expansion will contribute to its future prospects and accelerate new developments.
Further, the company’s strategic collaboration and technology incorporation with leaders like Apple and Xiaomi continue solidifying its market position. Recently, Dolby also added two new automotive partners, WEY, a Chinese car company, and Smart, a JV between Mercedes and Geely, bringing its automotive OEM partners to over 20 supporting Dolby Atmos, which was 10 partners one year ago.
For fiscal 2025, Dolby’s prospects appear promising, with strong momentum in Dolby Atmos and Dolby Vision, its imaging patent portfolio. The recent acquisitions will accelerate its opportunities in diverse segments and will cater to a wider audience with its continuous investment in audio technology.
Given its strong financial health and ongoing expansion, DLB appears poised for continued growth. Shares of DLB gained 2.3% over the past month and 9.4% over the past three months to close the last trading session at $80.99.
Let’s look at factors that could influence DLB’s performance in the upcoming months.
Positive Recent Developments
On September 13, 2024, DLB launched a comprehensive range of cloud video products and solutions supporting real-time interactive streaming in association with THEO Technologies, a leading provider of high-quality video streaming tools. THEO Technologies was acquired by DLB in 2024, expanding its ability to deliver more interactive and personalized live experiences with extremely low latency.
The company’s new capabilities include THEOads, introduced on the same day. THEOads is a pioneering ad insertion capability that enhances the quality, flexibility, and targeting of advertising within THEOplayer.
Further, in June 2024, DLB also acquired GE Licensing, which owns, maintains, and licenses an extensive portfolio of IP primarily targeting the consumer digital media and electronics sectors. The strategic acquisition strengthened DLB’s licensing businesses and is likely to create further growth opportunities.
Solid Financials
For the fourth quarter ended on September 27, 2024, DLB’s total revenue increased 4.9% year-over-year to $304.81 million, of which its Licensing revenue rose 6.6% year-over-year to $282.71 million. The company reported a gross profit of $270.81 million, indicating a 6.2% increase from the prior year’s quarter.
Furthermore, non-GAAP net income attributable to DLB totaled $78.44 million, up 22.7% year-over-year. The company’s non-GAAP EPS grew 24.6% from the year-ago value to $0.81. Also, as of September 27, 2024, the company’s total assets stood at $3.11 billion versus $2.98 billion as of September 29, 2023.
Buoyed by its strong financial performance in 2024, Dolby provided estimates for the first quarter and full fiscal year 2025. It expects total revenue to range from $330 million to $360 million, and its licensing revenue is estimated to range from $305 million to $335 million for the first quarter. The company also projects non-GAAP EPS of $0.96 – $1.11 over the same quarter.
For the full year 2025, Dolby’s total revenue is estimated at $1.33 billion to $1.39 billion. Further, it also expects EPS between $3.99 and $4.14 on a non-GAAP basis.
Favorable Analyst Estimates
Analysts expect DLB’s revenue for the first quarter (ended December 2024) to come in at $346.15 million, indicating an increase of 9.7% year-over-year. The consensus EPS estimate of $1.05 for the same period reflects a 4.3% year-over-year improvement. Moreover, the company topped consensus EPS estimates in all four trailing quarters, which is remarkable.
For the fiscal year (ending September 2025), the company’s revenue and EPS are anticipated to grow 6.4% and 7.1% year-over-year to $1.36 billion and $4.06, respectively. In addition, Street expects its revenue and EPS for the fiscal year 2026 to grow 4.5% and 7% from the prior year to $1.42 billion and $4.35, respectively.
High Profitability
DLB’s trailing-12-month EBIT margin of 20.78% is 288.5% higher than the 5.35% industry average. Its trailing-12-month net income margin of 20.56% is significantly higher than the industry average of 3.80%. Likewise, the stock’s trailing-12-month gross profit margin of 88.97% is 76% higher than the industry average of 50.55%.
Furthermore, the stock’s trailing-12-month ROCE, ROTC, and ROTA of 10.84%, 6.68%, and 8.42% are higher than the 4.22%, 3.14%, and 1.98% industry averages, respectively.
POWR Ratings Reflect Promise
DLB’s solid fundamentals are reflected in its POWR Ratings. The stock has an overall rating of A, translating to a Strong Buy in our proprietary system. The POWR Ratings are calculated by considering 118 different factors, with each factor weighted to an optimal degree.
Our proprietary rating system also evaluates each stock based on eight distinct categories. DLB has an A grade for Sentiment, which is consistent with its optimistic analyst estimates. The stock also has an A grade for Quality, which is in sync with its higher profitability relative to its peers.
DLB is ranked #2 among the 40 stocks in the Technology – Electronics industry.
Beyond what I have stated above, we have also given DLB grades for Stability, Growth, Momentum, and Value. Get access to all the DLB ratings here.
Bottom Line
DLB is a leader in the audio technology segment, dominating the global market. The company’s diverse, innovative solutions, strategic acquisitions, and new developments are driving its growth and solid expansion.
Also, increasing investments in cutting-edge technology solutions and rapid technological advances like 4K, 8K, and immersive audio formats are boosting demand for new devices. Such industry evolution will benefit DLB, strengthening the company’s future profitability and opportunities.
Thus, it could be prudent to invest in this stock amid favorable industry trends, strong financial performance, accelerating profitability, and dominating market position.
How Does Dolby Laboratories, Inc. (DLB) Stack Up Against Its Peers?
While DLB has an overall POWR Rating of A, investors could also check out these other stocks within the Technology – Electronics industry with A (Strong Buy) or B (Buy) ratings: Fuji Electric Co., Ltd. (FELTY), Brother Industries, Ltd. (BRTHY), and Universal Electronics Inc. (UEIC).
For exploring more A and B-rated technology 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:
3 Stocks to DOUBLE This Year >

DLB shares were unchanged in after-hours trading Friday. Year-to-date, DLB has gained 4.06%, versus a 1.96% 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 Is Dolby Laboratories a Sound Investment in Audio Technology? appeared first on StockNews.com

The entertainment industry’s outlook looks promising, given robust spending worldwide and evolving consumer behavior. Amid this, let’s analyze the prospects of sound entertainment stocks Emerald Holding (EEX), Madison Square Garden Entertainment (MSGE), and Madison Square Garden Sports (MSGS) for 2025. Read on to know more…The entertainment industry is well-poised for substantial growth and profitability in the upcoming years, backed by growing investment in amusement and theme parks and increasing interest of consumers.
Given the industry’s bright growth prospects, investors could keep fundamentally sound entertainment stocks Emerald Holding, Inc. (EEX), Madison Square Garden Entertainment Corp. (MSGE), and Madison Square Garden Sports Corp. (MSGS) on their radar in 2025.
The entertainment industry is well-positioned to witness significant growth and expansion in the foreseeable future, driven by growing consumer demand amid a rapidly evolving and advancing market worldwide. The market’s prospects are further strengthening with increasing internet penetration, rising disposable income, and the development of attractive attractions.
The media & entertainment market is expected to reach $32.21 billion in 2025 and is projected to value around $46.89 billion by 2030, exhibiting growth at a CAGR of 7.8%. Rapid technological developments swiftly transform the industry and lead to profitable growth in all segments.
Also, as the public prioritizes leisure time, themed adventures, and quality ambiance, the theme park market is expected to grow exponentially. Organizations are emphasizing on building and designing theme parks based on popular movies and series to attract more crowds. Further, rising disposable incomes have resulted in increasing consumer spending on amusement park visits.
Further, propelled by the surging consumption of internet-based entertainment, including web series, sports, online video gaming, podcasts, and others, the global online entertainment market is flourishing. The market is projected to grow to $338.96 billion by 2034 at a CAGR of 12.8%.
With these favorable trends in mind, let’s look at the fundamentals of the three best Entertainment – Sports & Theme Parks stocks, beginning with the third choice.
Stock #3: Emerald Holding, Inc. (EEX)
EEX operates business-to-business (B2B) trade shows. The company offers B2B trade show franchises and, B2B print publications and digital media products, which provide industry-specific business news and information across various sectors.
EEX’s trailing-12-month gross profit margin and EBIT margin of 64.88% and 16.70% are 23.3% and 67.7% higher than the respective industry averages of 52.62% and 9.96%. Further, the stock’s trailing-12-month Levered FCF margin of 16.07% is 81.6% higher than the industry average of 8.85%.
EEX’s revenues increased marginally year-over-year to $72.60 million for the third quarter that ended September 30, 2024. Its adjusted EBITDA reached $12.50 million, up 15.7% from the prior year’s quarter. Also, the company’s free cash flow rose 21.8% from the year-ago value to $6.70 million.
Analysts expect EEX’s revenue for the fourth quarter (ended December 2024) to increase 6.5% year-over-year to $108.05 million, while its EPS for the same quarter is expected to be $0.04. For the fiscal year 2024, the company’s revenue is expected to grow 4.5% from the prior year to $400.05 million.
EEX’s stock has gained 12.8% over the past three months to close the last trading session at $4.68.
EEX’s solid 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 Sentiment. It is ranked #3 of 12 stocks within the Entertainment – Sports & Theme Parks industry.
In addition to the POWR Ratings I’ve just highlighted, you can see EEX’s ratings for Growth, Value, Stability, Quality, and Momentum here.
Stock #2: Madison Square Garden Entertainment Corp. (MSGE)
MSGE engages in the live entertainment business. It produces, presents, and hosts live entertainment events, like concerts, sporting events, family shows, family shows, performing arts events, and special events. It operates a collection of venues, including Madison Square Garden, The Theater at Madison Square Garden, Radio City Music Hall, the Beacon Theatre, and The Chicago Theatre.
MSGE’s trailing-12-month EBIT margin of 13.29% is 33.5% higher than the industry average of 9.96%. Likewise, the stock’s trailing-12-month net income margin of 18.38% is significantly higher than the industry average of 3.81%. Also, its trailing-12-month ROTC of 8.67% is 119.5% higher than the 3.95% industry average.
For the first quarter that ended September 30, 2024, MSGE posted total revenues of $138.71 million. The company’s adjusted operating income was $1.91 million, against an operating loss of $220 thousand in the prior year’s quarter. In addition, its cash, cash equivalents, and restricted cash were $37.61 million as of September 30, 2024, compared to $33.55 million as of June 30, 2024.
Street expects MSGE’s revenue and EPS for the third quarter (ending March 2025) to increase 1.3% and 266.2% year-over-year to $231.19 million and $0.22, respectively. Also, the company topped the consensus revenue and EPS estimates in three of the trailing four quarters.
Shares of MSGE have soared 2.5% over the past month and 9.9% over the past year to close the last trading session at $35.48.
MSGE’s sound fundamentals are reflected in its POWR Ratings. The stock has a B grade for Sentiment. MSGE is ranked #2 out of 12 stocks in the Entertainment – Sports & Theme Parks industry.
Click here to access additional MSGE ratings for Stability, Growth, Value, Quality, and Momentum.
Stock #1: Madison Square Garden Sports Corp. (MSGS)
MSGS is a professional sports company. It owns and operates a portfolio of assets that consists of the New York Knickerbockers of the National Basketball Association (NBA) and the New York Rangers of the National Hockey League.
On October 17, 2024, MSGS and the Department of Culture and Tourism – Abu Dhabi announced a new marketing partnership named ‘Experience Abu Dhabi’ as the Official Patch Partner of the New York Knicks, forging a significant integration between DCT Abu Dhabi and one of the most storied franchises in professional sports.
MSGS reported revenues of $53.31 million, up 23.8% year-over-year during the first quarter that ended September 30, 2024. The company’s interest income grew 90.7% from the year-ago value to $864 thousand. Furthermore, the company’s total assets came in at $1.37 billion as of September 30, 2024, compared to $1.35 billion as of June 30, 2024.
Analysts expect MSGS’ EPS for the third quarter (ending March 2025) to increase 5.1% year-over-year to $1.65. The company’s revenue for the ongoing quarter is projected to grow 1.8% year-over-year to $437.63 million. Moreover, the company topped the consensus EPS and revenue estimates in three of the trailing four quarters.
MSGS’ stock gained 8.1% over the past six months and 13.9% over the past year to close the last trading session at $215.20.
MSGS’ POWR Ratings reflect its robust outlook. The stock has a B grade for Quality and Sentiment. MSGS has topped the list of 12 stocks within the same industry.
To access additional ratings of MSGS for Stability, Growth, Value, and Momentum, 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:
3 Stocks to DOUBLE This Year >

MSGS shares were trading at $217.00 per share on Friday afternoon, up $1.80 (+0.84%). Year-to-date, MSGS has declined -3.85%, versus a 1.96% 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 Entertainment Stocks to Keep on Your Radar in 2025 appeared first on StockNews.com

As innovation continues to transform industries, investing in specialty ETFs like iShares U.S. Energy (IYE), ARK Fintech Innovation (ARKF), and VanEck Retail (RTH) could be a smart way to diversify your portfolio while capitalizing on high-growth sectors. Read more…Specialty ETFs, or sector funds, offer a unique way for investors to zero in on specific industries or market segments that align with their growth expectations. Unlike traditional index funds that provide broad market exposure, specialty ETFs focus on niche sectors such as energy, fintech, or consumer goods, making it easier for investors to tap into the areas of the economy that are experiencing rapid growth, innovation, or transformation.  
Below, I have highlighted three specialty ETFs that are fundamentally sound and positioned to offer strong growth opportunities: iShares U.S. Energy ETF (IYE), ARK Fintech Innovation ETF (ARKF), and VanEck Retail ETF (RTH). These funds provide diversified exposure within their respective sectors, allowing investors to focus on industries with strong growth potential.
Investor sentiment toward specialty ETFs is generally upbeat, thanks to their ability to target high-growth sectors and niche markets with specific investment themes. However, there is some caution due to the lack of diversification, as these funds are more susceptible to sector-specific risks and volatility.
Despite these risks, many investors are turning to specialty ETFs as a strategic way to position their portfolios to benefit from the growth potential of industries that are on the cusp of transformation. Whether it’s the energy transition, the rise of fintech, or the evolving retail sector, these funds present attractive options for investors looking to capitalize on emerging trends.
To that end, let’s delve into the fundamental aspects of the above-mentioned ETFs in detail:
iShares U.S. Energy ETF (IYE)
IYE seeks to track the investment results of a market-cap-weighted index composed of large-cap U.S. companies in the energy industry. The fund holds a concentrated portfolio of companies that facilitate the production and distribution of oil and gas. It tracks the performance of the Russell 1000 Energy RIC 22.5/45 Capped Index.
With $1.34 billion in assets under management (AUM), its top holdings include Exxon Mobil Corporation (XOM) with a 21.65% weighting, Chevron Corporation (CVX) at 14.92%, followed by ConocoPhillips (COP), and EOG Resources, Inc. (EOG) with 7.25% and 4.67% weightings, respectively. The fund currently has 43 holdings in total, with its top 10 assets comprising 68.3% of its AUM.
Over the past three months, IYE’s fund inflows came in at $31 million. In addition, its 0.39% expense ratio compares to the category average of 0.47%. The ETF’s NAV was $49.21 as of January 15, 2025.
IYE pays an annual dividend of $1.25, translating to a 2.54% yield at the current price level, while its four-year average dividend yield is 3.02%. Over the past three years, its dividend payouts have grown at a CAGR of 11.74%.
IYE has gained 14.2% over the past year and 8.8% year-to-date to close the last trading session at $49.59.
IYE’s POWR Ratings reflect this promising outlook. It has an overall rating of A, equating to Strong Buy in our proprietary rating system. The POWR Ratings are calculated by considering 118 different factors, with each factor weighted to an optimal degree.
IYE also has an A grade for Buy & Hold and Trade and a B for Peer. Among the 46 ETFs in the B-rated Energy Equities ETFs group, it is ranked #5. Click here to see all the IYE ratings.
ARK Fintech Innovation ETF (ARKF)
ARKF is an exchange-traded fund managed by ARK Investment Management LLC. This actively managed fund focuses on financial technology innovation, which ARK defines as the introduction of new, technology-driven products or services that have the potential to transform the financial sector. The fund invests in stocks of both domestic and international companies within this theme, and its performance is benchmarked against the S&P 500 Index and the MSCI World Index.
The fund has approximately $1.02 billion AUM. ARKF’s major holdings include Coinbase Global, Inc. (COIN) with a 9.49% weighting, Shopify Inc. (SHOP) at 9.29%, Robinhood Markets, Inc. (HOOD), and MUTUAL FUND (OTHER) at 5.99% and 5.89%, respectively.
The ETF has 37 holdings, with its top 10 assets comprising 56.73% of its AUM. ARKF’s expense ratio is 0.75%, higher than the category average of 0.56%.
Over the past year, ARKF has gained 52.1% to close the last trading session at $38.89. The fund’s NAV was $38.73 as of January 03, 2025.
ARKF’s bright prospects are reflected in its POWR Ratings. The ETF’s overall B rating equates to a Buy in our proprietary rating system.
ARKF has an A grade for Trade and a B for Buy & Hold. The fund is ranked #57 out of 119 ETFs in the A-rated Technology Equities ETFs group. Beyond what we stated above, we have also given ARKF a grade for Peer. Get all ARKF ratings here.
VanEck Retail ETF (RTH)
Launched and managed by Van Eck Associates Corporation, RTH invests in U.S. equities within the consumer discretionary and retail sectors. It targets large-cap growth and value stocks while tracking the MVIS US Listed Retail 25 Index. The fund allocates at least 80% of its assets to companies that derive at least 50% of their revenue from retail, including specialty and multi-line retailers, wholesalers, and online platforms.
With $221.70 million in assets under management, its top holdings include Amazon.com, Inc. (AMZN) with a 19.78% weighting, Walmart Inc. (WMT) at 8.71%, followed by Costco Wholesale Corporation (COST) and The Home Depot, Inc. (HD) with 8.06% and 7.73% weightings, respectively.
The fund currently has 26 holdings in total, with its top 10 assets comprising 71.2% of its AUM. RTH has a 0.35% expense ratio, lower than the 0.57% category average. Its fund inflows were $11.25 million over the past year.
The ETF distributes $1.73 in dividends annually, translating to a yield of 0.76%. Its four-year average dividend yield is 0.89%. Over the past three years, its dividend payouts have grown at a CAGR of 4.6%.
RTH has gained 20.1% over the past year and 13.8% over the past nine months to close the last trading session at $227.42. As of January 15, 2025, RTH had an NAV of $227.70.
RTH’s strong fundamentals are reflected in its POWR Ratings. The ETF has an overall A grade, equating to a Strong Buy rating in our proprietary rating system.
RTH also has an A rating for Buy & Hold, Peer, and Trade. Of the 48 ETFs in the B-rated Consumer-Focused ETFs group, it is ranked 8. Get all RTH 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 >

IYE shares were unchanged in premarket trading Friday. Year-to-date, IYE has gained 8.82%, versus a 0.95% rise in the benchmark S&P 500 index during the same period.
About the Author: Shweta KumariShweta’s profound interest in financial research and quantitative analysis led her to pursue a career as an investment analyst. She uses her knowledge to help retail investors make educated investment decisions.More…The post 3 Specialty ETFs Offering Targeted Growth Opportunities 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”)
CEO, StockNews.com and Editor, Reitmeister Total Return

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.
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 October Stock Market: More Trick Than Treat? appeared first on StockNews.com

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