AliBaba (BABA)
Entry: Unlock
Price target: 94.00-95.00
Second PT: Unlock
Although primarily known as an online retailer, Alibaba’s reach extends far beyond connecting buyers with suppliers. The Chinese-based multinational technology company operates in other sectors such as online payment systems, cloud computing, logistics, and digital media and entertainment. While all these industries are attractive reasons to consider buying Alibaba’s stock, its involvement in cloud computing, particularly data storage, is what earns it a spot on our watchlist. Although their cloud computing segment generates only $4 billion annually, accounting for 11% of total revenue, it represents their biggest growth opportunity. The global cloud storage market was valued at $132 billion in 2024 and is projected to grow to a staggering $639 billion by 2032, exhibiting a compound annual growth rate (CAGR) of 21.7%—making it one of the most significant industries in the modern world (Fortune Business Insights).
Analyzing the numbers, Alibaba and other Chinese stocks are significantly undervalued compared to their U.S. counterparts. For example, Alibaba’s P/E ratio is trading at just 17x, far below Amazon’s 47x. In terms of revenue and profits, Alibaba has fluctuated between growth and flat quarters, but it consistently generates approximately $130 billion in annual revenue—a remarkable figure for a company valued at only $197 billion. Moreover, Alibaba’s balance sheet boasts positive equity of $150 billion, reinforcing its position as an undervalued company. Last but not least, its free cash flow currently sits at around $15 billion, providing ample resources to boost dividends for investors and allocate more funds to R&D or acquisitions if needed.
Alibaba’s low valuation could be attributed to concerns over Chinese relations with the United States. Over the past 4–8 years, the stock has experienced volatility as investor sentiment oscillates between optimism and pessimism regarding Chinese investments. Recently, the U.S. ban on TikTok raised concerns, but over the weekend, President Trump stated that he had instructed his advisors to explore a visit to China to deepen U.S.-China relations. He also announced plans to sign an executive order to reinstate TikTok, a move that could trigger an optimistic rally in Chinese stocks—particularly undervalued ones like Alibaba. 
Waste Management (WM)
Entry: Unlock
Price target: 230.00-232.00
Second PT: Unlock
Waste Management, Inc. (WM) exemplifies consistency and reliability, delivering steady earnings growth and rewarding shareholders with an attractive dividend that has seen regular increases over time. As a leader in environmental services, the company specializes in waste collection, disposal, and recycling, as well as renewable energy initiatives. While waste management may not be a glamorous or "hot" industry, it is indispensable, a necessity that is unlikely to diminish and instead promises continued demand growth in the years to come.
This essential role in modern infrastructure has been reflected in Waste Management’s financial performance. From 2020 to 2024, the company grew its revenue by an impressive 35%, climbing from $15 billion to over $20 billion. This growth has been matched by disciplined management, which has increased net income and maintained healthy profit margins, reflecting strong operational efficiency.
From a valuation standpoint, WM’s price-to-earnings (P/E) ratio of 31x is on the higher side compared to the traditional “healthy” range of 15x–25x. However, the company’s forward earnings growth suggests that this valuation could normalize as new earnings numbers come in. Waste Management also boasts a solid balance sheet, with $34.7 billion in assets against $26.7 billion in liabilities, leaving a positive asset-to-liability ratio. Moreover, the company has demonstrated resilience, with its free cash flow recovering to $2.10 billion after a temporary dip during the COVID-19 pandemic.
For investors looking to diversify beyond tech-heavy portfolios, Waste Management offers a compelling opportunity. Its stability and growth potential make it an appealing option for long-term investors seeking consistent returns. While the stock is currently trading near fair valuation, adopting a gradual approach, dollar-cost averaging into the position over several months, may be a prudent strategy to build exposure to this enduring sector leader.
FMC Corporation (FMC)
Entry: Unlock
Price target: 58.00-62.00
Second PT: Unlock
The farmers of America are eager to welcome President Trump back to office, citing his deregulatory policies and longstanding support for local growth. While Trump's stringent tariff policies were seen as a challenge for the agricultural sector during his previous term, his administration implemented measures aimed at ensuring the stability and growth of rural America. Although concerns remain about the potential impact of mass deportations and tariff policies on farming, Trump has consistently emphasized his commitment to supporting farmers and simplifying the challenges they face.
This renewed focus on agriculture also brings opportunities within the sector, with one prominent player being FMC Corporation. FMC is an agricultural sciences company that provides innovative solutions for growers, including crop protection, plant health products, agricultural pest control, and turf management. With a history spanning over a century, FMC has built a reputation for rewarding its investors with consistent dividends. Like many companies in the agriculture industry, FMC faced significant challenges following the Ukraine-Russia conflict, which disrupted global markets. However, the company has demonstrated resilience, with earnings improving over the past two quarters, potentially signaling a recovery.
Currently, FMC trades at a market capitalization of $6.7 billion, a valuation that many consider undervalued given its strong financials. The company holds over $4.63 billion on its balance sheet and generates $500 million in free cash flow annually. Despite its modest annual revenue of around $5 billion, FMC has maintained high profit margins, resulting in a price-to-earnings (P/E) ratio of 4.6x—substantially lower than the industry average of 21x, according to Eqvista. This low valuation presents a compelling opportunity for investors to initiate a position in the stock. Moreover, FMC’s consistent dividend payments provide an added incentive for patient investors willing to wait for more favorable market conditions.
While FMC’s recovery may be gradual, particularly as Trump’s administration introduces new policies, the company’s strong fundamentals suggest it is a solid choice for those seeking exposure to the agriculture sector. For investors looking to capitalize on potential growth within this space, FMC represents a promising opportunity.
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You've reached the end of our complimentary public watchlist. Unlock for the full list by becoming a member of our Hyper Stocks community. Click here for more information.
You've reached the end of our complimentary public watchlist. Unlock for the full list by becoming a member of our Hyper Stocks community. Click here for more information.
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The stocks posted above are the preliminary stocks and set ups we’ll be watching this week. All price points are subject to change based on market performance and sector health. Please do your own research and analysis on these companies/charts before taking on any set ups. Trade at your own risk and as always, good luck! Let’s have a fantastic week.