Hey bow tie Nation Joseph hog here with your weekly stock market update 9:00 a. m. eastern every Monday morning with the stocks to watch and the stock market news you need to see and Nation the stock market is in freef Fall Down 45% since the early December peak of 6100 on the S&P 500 and still likely to hit that 5% to 10% correction territory I've been warning about over the last month but that doesn't mean there aren't great Investments out there just that you need to go deeper with your research I'm going to highlight the five stocks to buy for 2025 even against this volatile Market environment the ones that can hold up and be this year's next Nvidia stick around after that and I'll reveal the stocks I'm watching this week along with important updates to shares of Tesla and GP Morgan But First Investors are loving options investing with nearly 40 million contracts every single day to boost their returns but most investors are doing it wrong losing over5 billion a year that's why I'm relaunching My ultimate options course over 3 hours of video I start with the basics then walk you through 29 option strategies when to use them and how to set each up including a real world example with shares of Tesla the course also comes with a one-of-kind strategy finder to help you find the right option strategy and an options calculator to show you exactly what to expect right now I'm relaunching that course at a 38% discount save $150 off but only for the next 3 days you're going to get all the basics to get you started the strategy finder to make sure you're using the best strategy the options calculator to show you exactly how much money you can make walkthroughs on all 29 strategies a 14-day money back that guarantee that $150 launch discount is only available with the coupon code in the link I'll leave in the description below so look for that link or scan the QR code here back to our main topic though and while the bull market will eventually come crashing down like all those before this one still has legs into 2025 now I have been calling for that correction of 5 to 10% over the past month and it looks like we're going to get it but the economy is still strong and I believe value is going to bring the Bulls back quickly after this quick correction that means you still want to have that exposure Ure to the growth and tech stocks and I found five that I like on this dip that could provide Nvidia like returns this year stick around and I'll also update price Targets on three stocks that have jumped 165% since recommending them on the channel let's start with a stock in my favorite growth theme cyber security and Fort net Inc ticker ftnt I already own chairs of crowdstrike Holdings zscaler and P outdo networks as well but would be buying fortnite on its industry-leading profitability this is the slowest Revenue growth of the group which is why I add those others first but that strong 30% operating margin and the lowest valuation on that price to earnings to growth multiple makes this one to own as well and I know you out there in the nation are probably tired of hear me talk about cyber security but ask yourself when was the last time we went a week without hearing about some kind of major hacking attempt or a Cyber attack the number of malicious programs has ballooned in the last decade and artificial intelligence is going to mean a new era in cyber security beyond all the promise and the hope for growth in AI Quantum even fision energy cyber security is the one growth theme that is already posting double digigit Revenue growth next up here I'm still adding more to my position in symbotic ticker SYM first started it after its big Plunge in November a symbotic is using AI powered Robotics and software to automate warehouse and Logistics with a 4-year development partnership alongside Walmart that alone could send Revenue higher folks just think about this just installing its robotic systems in Warehouse operations is a $432 billion market with the operational side another half trillion and while financials are shakier here the company is rapidly growing into the efficiency that's going to produce a cash flow reducing installation Times by a third in the last 2 years so what we have here is an evolutionary step in that trillion dollar warehousing industry a leader in the space that is already operating warehouses for Walmart Target and Albertson and all with the backing of Walmart which owns 14.
5% of symbotic the company did have to restate some financials after it found weakness in internal reporting and the shares plunged in November but symbotic has a $23 billion backlog that is going to keep that Revenue growing into this Market opportunity for automated Logistics next is a new one for my portfolio shares of Advanced Micro Devices ticker AMD on its recent rollouts from the Consumer Electronics Show and yes AMD is still the redheaded stepchild of semiconductors against Nvidia but CEO Lisa Sue had some strong launch announcements at the CES this month and with nvidia's Blackwell extremely short on Supply I think it opens up an opportunity for AMD and let's not forget this this is a company expected to grow Revenue by 26% this year to 32 billion which would put the shares at just six times on that price to sales basis where it typically trades closer to eight or 10 times and where Nvidia trades for a nosebleed valuation of 30 times priced to sale so I think Nvidia is at least 31% undervalued here on just those forecasted sales Salesforce Inc ticker CRM has been one of my forever stocks for 2 years and the shares finally started showing some of that potential last year the company has been developing it AI agents for years and it's now at the right place at the right time in fact General Mills was recently able to Triple its engagement with customers through an AI assistant setup through Salesforce and that same success can be replicated across Industries now sales growth for the company is the slowest on the list and I normally don't get excited about something expected to post just single digit sales growth but the shares are trading at just 7 and a half times this year's Revenue so fairly cheap by comparison and that growth could accelerate as these AI agents get deployed I'm also still loading up on shares of Super Micro computer ticker smci as well and I know this is where a lot of you out there are throwing things at your computer screaming I've covered why the stock is a buy first in that mid November when it got as low as $17 each and even here just above $30 a share I'm going to link to that video detailing it in the description so we don't have to rehash everything here but those allegations were Bogus the company is about to file its late reports within the next month and this is a pure play in that data center buildout St still trading for a price of just6 times that $30 billion in sales expected this year so if you just compare that valuation for a stock growing Revenue by 66% last year and 20% this year to all the other growth stocks in the market you can see why I think shares could easily be worth double where they are right now those are the five stocks I think could be the next Nvidia returns this year but I also want to give you updated price targets for three more stocks because I know you're going to be asking three stocks that were some of our best returns last year but have just gotten too expensive for me paler Technologies Sofi Technologies and SoundHound AI you can see these were up more than 164% and made over $400,000 in my portfolio by the end of last year and I know you want the good times to keep going but folks every time investors have chased stocks at these valuations every time in the 25 years I've been investing it has not ended well first up here paler the most expensive of them all is already down 20% from that December Peak over that last month everyone is playing in the comments when I said it's just too Dam expensive and it still is expensive at 62 times the revenue at books and 44 times this year's expected revenue of 3. 5 billion a price under $52 a share wouldn't be cheap at 15 times this year's Revenue but it would be where I start looking at the stock again I think it's a great company now all of these are great companies it has a dominant lock on its theme but you do not have to chase stocks and buy them at any price just because everyone else is shares of SoundHound AI were the Breakaway winner last year at one point up 1,500% 15 times your money for the year but even now after the selloff are still up 325 from recommending it back from February SoundHound is the leader in AI Voice assistance a market that could be worth 160 billion and make it still a good investment but again as the air comes out of this Market the stock is just too expensive here at 33 times this year's expected revenue of 164 million that revenue is expected to double from last year but I'm just not buying until the stock gets closer to about $9 each that would still be a pretty expensive 21 times that revenue forecast but closer to fair value for that kind of growth and channel favorite Sofi Technologies ticker s SOI and folks I can't tell you how many comments I got over the last 18 months telling me this stock was total and then I made $250,000 so where are those comments now folks you cannot get married to your stocks you cannot get so emotional and fall in love with the stock to the point that you can't see the bare case or when it's just too expensive that's where we've been on so for the last 2 months trading at a price of 2. 6 times that book value of the shares now remember that price to book is the metric you want to use with bank stocks because how they value their deposits and Loans on the balance sheet when I first started buying Sofi it had a Price to Book value of just8 times and was a steal for the kind of growth it's booking but no bank is worth 2.
6 times book here even forecasting a book value of maybe maybe approaching $7 a share this year which would probably be a stretch but at that and a one and a half times price to book valuation that would put the shares closer to where I'd start looking at them again at about a $10. 30 per share of Target now onto the stocks I'm watching this week Bank stocks kick off the fourth quarter reporting season and are expected to report blowout earnings up 39% from the year ago period besides that strength and earnings stocks and financial companies are looking at a very good four years of deregulation and return of m&a deal making and that's evidence by the 14% jump in the spider S&P Bank ETF the ticker kbe the day after the election stocks in the group have fallen along with the rest of the market and are at very attractive valuations here so favorites there include Belle weather names like JP Morgan JPM Goldman Sachs tier GS and along with my top pick Ally Financial ticker Al also here a warning for car stocks that could have a very tough few years ahead as Chinese automakers aggressively lower prices and and increase their own exports years of state sponsored subsidies to grow that domestic car market in China have led to a huge overc capacity in the world's largest car market to put this into perspective folks car sales in China were about 22. 9 Million last year with with those domestic manufacturers accounting about 61% of those sales so domestic Chinese production of around 14 million cars Steven Dyer managing partner at Alex Partners estimates the domestic manufacturers are only producing at half capacity only producing half the cars they could now that means they have another 14 million cars they could be putting out now car makers never produce at full capacity but producing that far under it is very inefficient so what's more likely to happen is Chinese automakers are going to increase their production lower their costs and just flood the world with cheap cars to put that scale into perspective even at a 5-year High total US Car Sales were only 16 million Vehicles last year shares of GM have done well with a 31% return over the last year but the other four majors stellantis Ford Toyota and Honda have all posted losses of 8 to 42% over the period now of course Tesla has jumped 65% on Elon musk's rising star in the government but investors should be hesitant to go in after all any of these automakers and tariffs are not Chinese Auto production is going to continue to oversupply its market and even globally leading to that market share losses on foreign car makers in China probably likely abroad too those Chinese domestic automakers took nearly 9% market share from foreign companies just last year alone domestic maker byd has seen its share jump while Tesla has managed just to stay competitive at 22% for the market but only with steep discounts and incentives I'm also watching Netgear ticker ntgr and Cisco Systems CSCO that both could see a revenue boost if the US bans TP Link routers after an investigation started late last year now the Chinese made TP Link routers have been found to have significant security flaws and and are linked to Chinese hacking incidents not only are those linked routers are by far the market leader with 70% of the US residential router Market but they're also widely used throughout business and the government a ban of those routers would open up a significant opportunity for us Hardware makers like Netgear and Cisco giving you that bigger picture here with the sector spider sector tracker four sectors managed to close higher last week despite the crushing investor sentiment energy stocks were the obvious winner with the price of oil now up 12% in the last month on tighter than expected inventory but safety sectors like utilities and Healthcare also did well as investors just sought shelter from those growth stocks looking further here every stock sector is now in the red over the last month with inflation the clear boogey and driving stocks the more inflation sensitive stocks so real estate and Consumer Staples show this as well as those economically sensitive sectors like materials and consumer discretionary but here folks I have to wonder if all this inflation fear isn't just a little overblown at this point yes inflation has been persistent over these last few months and the market fears a trade War through tariffs is going to boost prices further but a deeper analysis shows this might not last housing costs are the big cost in inflation and while the drop in the headline number has stagnated the component for shelter in the CPI report is still dropping if even only slowly we also see a pile up of single family housing in the South suggesting that an over Supply there could slow rents and housing costs further now putting this together trying to think through it I think it's safe to assume that if tariffs do cause significant inflation or a further crash in stock prices president Trump who seems to measure his success partly on how the stock market performs would find a way to pull back some of those policies so this apocalyptic scenario that the market seems to be waiting for in terms of inflation or reigniting is probably never likely to happen it's instructive that we also know that the market is always fighting that last war and that last war was inflation and the rate hikes it brought over the last few years but that last war is rarely the real problem or nearly as bad as the market fears now it might take a couple of months to realize this through the actual inflation data but when the market does see that inflation isn't shooting higher again it's going to bring out the Bulls for the rest of the year getting us started this week fourth quarter earnings start coming out this week and they should be very supportive of stocks earnings for companies in the S&P 500 Index are expected 11.
What are the key takeaways?
Based on the transcript, here are the key points...