Updated quant ratings on 73 stocks

VaselineAugust 27, 2024

0 5 minutes read

I revised my Portfolio Grader recommendations for 73 large blue chip stocks.

As we head into the last weekend in August, everyone is scrambling to have one last bit of summer fun.

So it is on Wall Street. I was actually in Manhattan recently and it was pretty quiet. That’s because everyone is on vacation.

However, there are a few events lined up for this week that should be quite bullish for stocks.

I’m talking about July’s Personal Consumption Expenditure (PCE) announcement and the latest results from NVIDIA Corporation (NVDA).

So, in today’s 360 SquareI want to explain why I think these two events will make for a very positive week on Wall Street. I’ll also tell you how you can best position your portfolio to profit for the rest of the year.

July personal consumption expenditure index

On Friday, we should get further confirmation that the inflation battle is over. That’s when the Commerce Department releases the Federal Reserve’s favorite inflation gauge, the Personal Consumption Expenditure (PCE) index.

Economists expect a 0.2% monthly gain for PCE in July. This compares with an increase of 0% in May and 0.1% in June. Economist Ian Shepherdson currently expects PCE to come in at 0.13%. That would mean PCE over the past three months is now well within the Fed’s 2% annualized inflation target.

The reality is that falling inflation has primed the Fed for a key interest rate cut on September 18. Fed Chairman Jerome Powell signaled that a rate cut was imminent during his speech at the Kansas City Fed conference in Jackson Hole, Wyoming, last week. . (We covered the details of Powell’s speech in Saturday’s 360 Square.)

Specifically, Powell stated, “The time has come for policy to adjust” and added that “the direction of travel is clear, and the timing and pace of rate cuts will depend on incoming data, the evolving outlook and the balance of risks. “

Powell also commented on the slowdown in the labor market, which echoed comments by other Fed officials that unemployment concerns are now overshadowing inflation concerns.

We also learned last week that there was a statistical “glitch” in recent employment data. The Labor Department revealed that 818,000 jobs “disappeared” in the past year (through the end of the first quarter) due to revisions related to people who have multiple jobs and/or pay no income taxes. So instead of adding 2.9 million jobs over the last 12 months, the US economy only added about two million jobs. You have!

So a rate cut on September 18 is now 100% certain. And if we get a favorable PCE reading on Friday, I suspect we’ll also see rate cuts in November and December this year.

NVIDIA Future Revenue Report

As I mentioned last week 360 Square, NVIDIA will announce quarterly results on Wednesday, August 28 after the market closes. It’s expected to be the grand finale to what has been an amazing season of second-quarter earnings announcements.

Here’s why I expect fireworks on Wednesday: NVIDIA has posted better-than-expected sales and earnings results, as well as positive guidance, in recent quarters. In fact, the company posted an average earnings surprise of 18.2% over the past four quarters.

For the second quarter of fiscal 2025, the analyst community expects earnings to rise 128% year-over-year to $0.57 per share, up from $0.25 per share in the same period quarter a year ago. Second-quarter revenue is expected to rise 89% year-over-year to $25.59 billion.

Now, it’s important to note that NVIDIA is transitioning from its older AI chip (GPU H100) to its newer AI chip (GPU Blackwell GB200). There have been numerous reports that NVIDIA will delay its Blackwell chip by at least three months due to a manufacturing error.

So NVIDIA’s guidance on shipping Blackwell chips and backorders will be a very important part of Wednesday’s report. This guidance will likely be even more important than the company’s actual Q2 sales and earnings results.

Now, I should add that I’m waiting for some good news from NVIDIA’s report. And I’ll have a detailed review of the earnings report in Thursday’s edition of the 360 Square.

This week’s ratings are changing

There’s an additional factor that could be bullish for stocks this week, which is that the market tends to pick up on long holiday weekends.

If you’ve been around as long as I have, then you know that Wall Street and Main Street look forward to a few days off for the holiday weekends. So there’s a positive mood that tends to spread across Wall Street, and stocks are snaking higher.

Add in what should be a strong earnings announcement from NVIDIA on Wednesday and a positive PCE report on Friday morning, and this week is shaping up to be a very positive one for the stock market.

So to help you prepare, we’ve taken a fresh look at the latest institutional buying pressure and the financial health of each company. I decided to revise my Portfolio Grader recommendation for 73 large chips. Of these 73 stocks…

Four stocks were upgraded from Buy (B rating) to Strong Buy (A rating).
Ten stocks were upgraded from a Hold (C rating) to a Buy (B rating).
Fourteen stocks were upgraded from Sell (D rating) to Hold.
Twenty-four stocks were downgraded from Buy to Hold.
Eighteen stocks were downgraded from a hold to a sell.
And three stocks were downgraded from a sell to a strong sell (F rating).

We’ve listed the top 10 stocks rated as Buys below, but you can find a more comprehensive list – including all fundamental and quantitative classes of the 135 stocks – here. Chances are you have at least one of these stocks in your portfolio, so you may want to whittle down this list and adjust accordingly.

BBY	Best Buy Co., Inc.	B
CFG	Citizens Financial Group, Inc.	B
GM	General Motors Company	B
H	Hyatt Hotels Corporation Class A	B
JCI	Johnson Controls International plc	B
A	Real Estate Revenue Corporation	B
SKX	Skechers USA, Inc. Class A	B
SYY	Sysco Corporation	B
TSCO	Tractor supply company	B
HATE	United Rentals, Inc.	B

Now, I should add that we currently have NVDA on our system Accelerated profits Shopping List – and I’ve grown about 175% since I added it last August.

However, I plan to stick with NVIDIA for a few more years. It is truly a ‘once in a lifetime stock’ with higher fundamentals supported by persistent institutional buying pressure.

But it’s not the only superior fundamental stock we have on our Buy List. In fact, thanks to the power of a financial superintelligence, our Shopping List is full fundamentally superior companies that are making some incredible gains.

Harnessing its power over the years has given my readers a chance to see massive gains.

Go here now to learn how to put this financial super-intelligence on your side.

(Already one Accelerated profits subscriber? Click here to log in to the members-only website.)

Sincerely,

Signature of Louis Navellier Louis Navellier

Editor, 360 Square

The Publisher hereby discloses that, as of the date of this e-mail, the Publisher owns, directly or indirectly, the following securities that are the subject of commentary, analysis, opinions, advice or recommendations in, or are otherwise referred to in, the essay presented above down:

NVIDIA Corporation (NVDA)

VaselineAugust 27, 2024

0 5 minutes read

Vaseline

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