Should you buy these 11 popular US stocks? | Jessica Amir on Ausbiz
In the latest Ausbiz's latest 'The Call', moomoo Market Strategist Jessica Amir and Ted Alexander from BML Funds discussed their investment insights on eleven popular US stocks, including Tesla (NASDAQ: TSLA), JPMorgan (JPM), and Nike (NYSE: NKE). Here are some highlights from the show.
1. JPMorgan (JPM)
"If you don't own it maybe look away, as there are better opportunities, as its revenue growth is so little," says Jessica.
JPMorgan's shares have had a good run, up 20% this year. However, it's important to note that with lending slowing down, US consumers have depleted their savings. The expected revenue growth for 2024 is only 6.8%, lower than last year's net revenue. And it’s paying a forward dividend yield of 2.25%.
2. Nike (NYSE: NKE)
After Nike lowered its annual guidance, its shares nosedived. Additionally, intensified competition and a declining franchise are expected to cause a 10% drop in quarterly sales. Looking ahead, Nike is accelerating its pipeline of innovative products, and the upcoming Olympics presents opportunities. Market expectations foresee a recovery in revenue and profit by 2026. Jessica advises current Nike shareholders to hold their positions, but for those who are not already invested, there are better opportunities.
3. ASML (NASDAQ: ASML)
ASML supplies advanced logic and memory chips to the semiconductor industry and driven by strong customer demand, this has led to robust growth in net sales. ASML's earnings are expected to increase from $5.29 billion to $5.95 billion, with its stock rising 41% year-to-date. Jessica expresses optimism about the stock but plans to wait for pullbacks before buying in.
4. Johnson & Johnson (NYSE: JNJ)
Johnson & Johnson not only sells baby powder, but also operates in pharmaceuticals, consumer health, and medical technology, with pharmaceuticals contributing the majority of its revenue. Jessica pointed out that Johnson & Johnson's new lung cancer drug holds potential for long-term sales growth, and its oncology research has yielded significant advancements. However, investors should consider its $6.475 billion talc ovarian cancer lawsuits and yield. Compared to its projected 3% average growth rate, Jessica finds Novo Nordisk's 21% growth rate more appealing to invest.
5. John Deere (NYSE: DE)
John Deere is the first adopter of AI in Agriculture, with 92% of its revenue derived from its equipment business, particularly in agriculture, construction, and consumer equipment sectors. However, farm employment is at a multi-decade low, and this year's revenue growth is expected to decline by 26%. While there might be hopes for trade recovery by the end of next year, Jessica expressed a preference for investing directly in AI rather than in companies that apply AI technologies.
6. Constellation Energy (NASDAQ: CEG)
Jessica notes that she is optimistic about Constellation Energy. Global demand for affordable/clean energy driven by AI/data centers is boosting demand. CEG stands out as a key beneficiary of the shift to nuclear energy and is poised to continue benefiting. Its clients include major names like Bank of America (NYSE: BAC), Microsoft (NASDAQ: MSFT), and CVA Health Corp (NYSE: CVS). So far, CEG's stock has risen by 81%, with earnings growing at a rate of 20% per year, and from this year it's expected to generate free cash flows for the first time
7. Crowdstrike (NASDAQ: CRWD）
CrowdStrike is one of the very few software companies achieving 30% growth, with clients including Alphabet (NASDAQ: GOOG), Amazon (NASDAQ: AMZN), and TD Synnex (NYSE: SNX). Its latest performance exceeded expectations, driving a 52% year-to-date increase in stock price. The current quarter's revenue has grown to $959.7 million from $921 million. Its pipeline is also surpassing competitors, with its 4-minute threat detection speed 6-11 times faster than peers, likely leading to market share gains. Looking ahead, as AI drives increased complexity in cyber attacks, the demand for enhanced cybersecurity remains strong. CrowdStrike undoubtedly stands out as a key winner in AI-driven cybersecurity.
8. Micron (NASDAQ: MU)
Micron is a manufacturer of random access memory chips, with 23% of its revenue from companies like Apple (NASDAQ: AAPL), Dell (NYSE: DELL), and Intel (NASDAQ: INTC). Recently, it has initiated a partnership with Nvidia (NASDAQ: NVDA), which is expected to generate hundreds of millions in revenue. Micron's shares have more than doubled over the past year and are up 54% year-to-date. Revenue growth is projected to reach 61% this year and 55% next year. Jessica suggests considering buying during pullbacks.
9. Eli Lilly (NYSE: LLY)
Jessica says she's a fan of Eli Lilly. The company's market cap has surpassed Tesla's, with a 56% year-to-date share price increase, and revenue is expected to grow by 26% to $43 billion. FDA approval for a treatment for early symptomatic Alzheimer's disease is also likely to drive market growth. However, Jessica warns investors about potential scrutiny from President Biden and Senator Bernie Sanders, who criticise drug pricing.
10. Duolingo Inc (NASDAQ: DUOL)
Duolingo Inc. is a stock worth watching and it's currently in a revenue upgrade cycle. Expected earnings growth of 38% and revenue growth of 44% this year make it an appealing choice. Jessica notes that despite its shares being down 15% this year, expanding B2B products could present more opportunities since offering spoken English courses is important for businesses.
11. Tesla (NASDAQ: TSLA)
Jessica is looking for positive catalysts with Tesla's upcoming results. Tesla's stock price recently surged 35% in seven trading days, fueled by better-than-expected electric vehicle sales last quarter. The focus now shifts to Tesla's quarterly earnings and the profitability boost from new models like the Cybertruck and improvements in Full Self-Driving (FSD) technology.
Click the link to watch the full interview:
