Apple (AAPL)
Entry: Unlock
Price target: 215.00-220.00
Second PT: Unlock
Apple investors are growing increasingly concerned about the stock’s performance, as it trades 18% lower year to date. The company’s perceived lack of recent innovation and its disconnect from the artificial intelligence boom have left many wondering if the business is starting to decline. However, a closer look at the numbers reveals that Apple is still performing at an exceptionally high level, one that will be hard to disrupt.
Despite its inability to excite investors and consumers recently, Apple reported 5% revenue growth last quarter, reaching $95 billion in quarterly sales. Over the past three years, the company has averaged more than $385 billion in annual revenue, with nearly 25% of that translating into profit. While Trump-era tariffs pose a legitimate threat to Apple’s bottom line, the company can afford to absorb those costs given its $93 billion in profits last year.
In terms of innovation, Apple’s free cash flow currently sits at $98 billion, giving it a strong financial cushion during slower growth periods or the ability to acquire emerging AI companies that complement its ecosystem. Notably, Apple is rumored to be interested in Perplexity, an AI language model known for providing real-time, research-backed answers. This rumor sparked excitement in the market late last week, sending Apple shares higher on speculation of a potential acquisition. Even though it remains unconfirmed, the news was enough to land Apple on our weekly watchlist not just because of the possible deal, but because it shows how easily Apple could stage a comeback with a single strategic move.
One could argue that while companies like Meta and Amazon are rushing to integrate AI into everything, Apple is taking a more calculated approach and will strike when the time is right.
Lastly, Apple’s stock has struggled to sustain a rally largely due to uncertainty around tariffs. While, as mentioned, Apple has the financial strength to absorb these costs, investors should also consider that it is in America's best interest for Apple to succeed. As the country’s leading competitor to non-American smartphone makers, Apple holds a strategic position that the U.S. administration is likely to consider before making any policy decisions that could harm the company.
Please note that this may take longer than one week to come around to targets and we may change our entry / exit levels if necessary. We'll be updating the stock as needed for the Hyper Stocks Pro members. Wanna see real-time market updates? Learn more here.
Salesforce (CRM)
Entry: Unlock
Price target: 290.00-300.00
Second PT: Unlock
It may time to consider a position in Salesforce again as the stock stoops towards new 52 week lows and approaches one of its cheapest valuations in the past twelve months. The popular software company that focuses on providing business solutions from customer relationship management to automation is integrated with thousands of businesses across the globe, allowing it to generate a substantial amount of revenue every year. Salesforce reached a record $37.9 billion in revenue last year and is already on track to outdo that number this year, all while growing their balance sheet and free cash flow reserves.
At one point in time, CRM was trading at an extremely high valuation compared to earnings, which rightfully led the stock to a big correction to where it is today; however during this correction period, CRM has improved its financial position and its valuation has declined to a more reasonable range. At the time of this writing, CRM is trading at a market cap of $248 billion, not bad for a company generating nearly $40 billion in annual sales. More impressively, the company’s balance sheet reflects $61 billion in positive equity. And last but not least, CRM has $12.65 billion in free cash flow, giving them a big buffer and ability to buyout smaller competitors in all cash deals as they recently did with Informatica, a company expected to be a key merger for Salesforce.
Looking ahead, Salesforce’s revenue is set to rise another 40%+ in the next three years, very impressive for a company that’s been around and is no longer in its “growth” stage. Demand for their software has remained strong, and the many acquisitions they’ve made over the years continue feeding that demand. Even if Salesforce’s stock doesn’t come around immediately, it’s going to be one to keep an eye on as they release further earnings data in the coming quarters. If they maintain the same outlook then the stock is bound to see a rebound.
Please note that this may take longer than one week to come around to targets and we may change our entry / exit levels if necessary. We'll be updating the stock as needed for the Hyper Stocks Pro members. Wanna see real-time market updates? Learn more here.
Energy Select Sector SPDR Fund (XLE)
Entry: Unlock
Price target: 95.00-97.00
Second PT: Unlock
There’s a strong likelihood of a sharp rise in oil prices following the events that unfolded between the U.S. and Iran over the weekend, an outcome that would likely push oil stocks higher. Many energy companies have already begun rebounding from recent lows as tensions in the Middle East escalated, and the United States’ decision to officially join the conflict could have lasting repercussions on oil prices.
Oil stocks have significantly underperformed over the past twelve months, likely due to increased output from OPEC. However, as other sectors rebound and approach record highs, many oil and gas companies are starting to look attractive at current valuations. Investors have been waiting for a catalyst to aggressively reenter this sector, and they may finally have one.
For those who prefer a diversified approach over picking individual stocks, the Energy Select Sector SPDR Fund (XLE) offers broad exposure. This ETF holds 23 of the world’s leading energy companies, including Exxon Mobil, Chevron, ConocoPhillips, and others, making it a solid way to gain exposure to the energy sector while minimizing the risks of investing in individual names. Even if we overlooked the rising tensions in the Middle East, having exposure to energy stocks in one’s portfolio can give an edge. Investors often rotate capital between sectors and industries, and when it’s oil’s time to push, it’ll help prop the portfolio where another part may be selling off.
Those of you in our premium group know that we took a position in XLE and another strong oil company, which have acted as a great hedge during this period of heightened tensions.
Please note that this may take longer than one week to come around to targets and we may change our entry / exit levels if necessary. We'll be updating the stock as needed for the Hyper Stocks Pro members. Wanna see real-time market updates? Learn more here.
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 to unlock more high probability set-ups!
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 to unlock more high probability set-ups!
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 to unlock more high probability set-ups!
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 to unlock more high probability set-ups!
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 to unlock more high probability set-ups!
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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!