Meta Platforms (META)
Entry: Unlock
Price target: 800.00-820.00
Second PT: Unlock
A good name to start small and add to using the "DCA" strategy. If you don’t know what that is, let me know.
Investors looking to scoop up Meta shares may finally have a chance to do so after the stock fell more than 10% following earnings last week. The stock is now trading at its lowest level since May and is officially the cheapest of the Magnificent 7 by the price to earnings metric.
Meta Platforms doesn’t need an introduction, but in case you don’t know, Meta Platforms owns and operates Facebook, Instagram, WhatsApp, and Threads, four of the most widely used social media platforms in the world with 3.5 billion daily active users. Beyond social media, Meta has aggressively positioned itself as a leader in artificial intelligence and virtual reality through its LLaMA AI models and Reality Labs division.
Why did the stock fall?
Meta wrote off a significant one-time tax charge on earnings that weighed heavily on their profits for the quarter. The company also suffered weakness in margins because of AI infrastructure spending, a point that investors are paying close attention to. Investors are worried that all the spending won’t pay off, but the company has consistently proven its ability to monetize new technology and deliver long term growth.
As for the one time tax charge, which was the pain point, Meta did say that this tax charge would actually alleviate them from further taxes in the coming quarters, which will boost their earnings per share back up and reignite confidence in the stock.
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 our Hyper Stocks Pro members. Wanna see real-time market updates? Learn more here.
Devon Energy Corporation (DVN)
Entry: Unlock
Price target: 37.00-38.00
Second PT: Unlock
In a market filled with overextended valuations and multiples, many names in the energy sector are becoming more and more attractive as they’re lagging far behind other sectors like technology, IT, and communications.
Take a name like Devon Energy, which is trading at a price to earnings ratio of just 7x, far below the S&P 500’s average P/E of around 30x. These names in the energy space are trading at these lows because of investor rotation away from cyclical and commodity driven sectors, concerns about slowing global demand, and uncertainty surrounding long term oil prices amid the push for clean energy. However, for investors with a longer horizon, these discounted valuations could present a compelling opportunity, as energy companies continue to generate strong cash flows, maintain disciplined capital spending, and return significant capital to shareholders through dividends and buybacks.
The big potential:
China-U.S. trade talks included the potential of China reducing reliance on Russian oil and natural gas and shifting to purchasing from the U.S. The U.S. Chris Wright (Energy Secretary) said the U.S. is ready to sell more oil and natural gas to China if Beijing reduces its reliance on Russian energy. That is a massive opportunity for U.S. companies and can ignite a large new revenue stream.
Devon Energy:
Even without this new possibility, Devon Energy is a compelling buy. The company has grown revenue consistently over the past twelve months, despite the slump in energy prices, and has maintained strong margins, which were 22% last quarter. Moreover, the company’s balance sheet reflects +$15.3 billion in positive equity, suggesting that their market cap of $20.5 billion may be underpriced. The biggest area of improvement for them is free cash flow, which is currently at -$555 million. This metric will improve as the company continues to post profitability, but it may be the last piece of the puzzle before a rally ignites, especially if energy as a whole begins to rally.
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 our Hyper Stocks Pro members. Wanna see real-time market updates? Learn more here.
Deere & Company (DE)
Entry: Unlock
Price target: 530.00-540.00
Second PT: Unlock
A good name to start small and add to using the "DCA" strategy.
The United States and China held trade talks last week and among the points agreed upon was the export of soybeans. China agreed to restart U.S. soybean purchases, which will boost farm income and provide relief to American growers who have faced sluggish demand and falling prices in recent years. Higher export volumes are expected to lift soybean prices and improve sentiment across the agricultural sector, potentially leading to stronger equipment sales for companies like Deere & Co. and higher demand for fertilizers, seeds, and other farm inputs.
Deere & Company is a company that manufactures agricultural and construction equipment. It is a household name across the globe, but has struggled in recent years as weaker crop prices, high interest rates, and cautious farmer spending weighed on demand for new machinery. The company has also faced supply chain challenges and rising input costs, which have pressured margins. However, with improving trade relations between the U.S. and China, stabilizing commodity prices, and a potential rebound in farm income, Deere could be poised for a recovery as farmers regain confidence and restart their equipment replacement cycles. Recent interest rate cuts from The Federal Reserve are expected to help heavy machinery manufacturers like Deere.
Looking at its financials, we do see that revenue has been sharply declining for more than 12 months, but projections do show that 2025 is a turnaround year for them. Revenue is set to begin growing again into next year and substantial growth is expected over the next three years. All these factors combined make $DE an intriguing buy, especially for investors who have a longer term horizon and foresee the turnaround in farming demand.
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 our Hyper Stocks Pro members. Wanna see real-time market updates? Learn more here.
Stock Name - Unlock
Entry: 5.60-5.80
Price target: 7.80-8.20
Second PT: 10.00+
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Stock Name - Unlock
Entry: 12.80-13.20
Price target: 15.50-16.50
Second PT: 17.50-18.00
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Stock Name - Unlock
Entry: 59.00-61.00
Price target: 68.00-70.00
Second PT: 75.00-77.00
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Stock Name - Unlock
Entry: 145.00-150.00
Price target: 159.00-161.00
Second PT: 170.00-175.00
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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. This page and our services are for educational purposes only. This is not financial advice. Please consult with a professional for financial advice. Trade at your own risk and as always, good luck!
Disclaimer: This article is for informational and educational purposes only and does not constitute financial advice. Investing involves risk, including the possible loss of capital. Always conduct your own research or consult with a licensed financial advisor before making investment decisions.
Hyper Stocks and its contributors may hold positions in some of the securities or assets mentioned above. These positions are subject to change without notice. Any opinions expressed reflect current views at the time of writing and are not guarantees of future performance. Past performance does not guarantee future results.