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17 minutes ago
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‘Stick to the Bullish Trend': Truist Sees Breakout Ahead for S&P 500 — 2 Stocks That Could Ride the Momentum
Markets roared into the new year on a wave of tech and AI optimism, climbing to record highs in February. That rally briefly lost steam when Trump's erratic tariff rollout injected a dose of uncertainty into the market. But with those concerns now receding, investors are shifting back into risk-on mode, and the S&P 500 is trading less than 3% below its peak. Easily unpack a company's performance with TipRanks' new KPI Data for smart investment decisions Receive undervalued, market resilient stocks right to your inbox with TipRanks' Smart Value Newsletter On a 12-month basis, Keith Lerner, chief market strategist at Truist, sees this stretch as a period of quiet consolidation — one that could pave the way for further upside. 'If you look at the big picture for the overall market – the S&P – we've been flat for seven months, and the technology sector has been flat for almost a year. As we test these technical levels, I think we'll eventually break above them,' Lerner opined. 'That said, there's likely to be some pain trade… but I think in general, the underlying trend is still positive and we want to stick with that underlying trend.' Taking that outlook to heart, Truist's stock analysts have pinpointed two stocks they believe are primed to benefit from renewed market strength. We've used the TipRanks database to find out what the rest of the Street has to say about both of their recent picks. TAT Technologies (TATT) The first company we'll look at is TAT Technologies, an aerospace tech firm that provides a set of specialized services for the commercial and military aviation industries. These services include thermal solutions, including environmental controls as well as engine and fluid coolant systems; APU support, including service and maintenance of aircraft APUs (auxiliary power units); and landing gear services, to support this key system. At its core, TAT, a global firm, gives its customers a wide-ranging set of technical skills vital to keep aircraft fleets in efficient operating order. TAT was founded in 1969, and brings its decades of experience to bear on aviation problem solving. The company takes a proactive approach, delivering cutting-edge solutions designed to promote customer confidence along with operational efficiency. Aviation is big business, and TAT has leveraged its supporting role to build up a business that generated $152.1 million in revenues last year. In its most recent earnings report, covering 1Q25, TAT showed solid year-over-year growth in both revenue and earnings. The company had a top line of $42.1 million, up almost 24% from 1Q24, and the bottom line of 34 cents per share was up from 19 cents in the prior-year period. We should note that the company's revenue total just missed the forecast, coming in $450,000 below the estimates. On a more positive note, EPS trumped Street expectations by $0.04. For Truist's Michael Ciarmoli, an analyst ranked amongst the top 1% of Wall Street stock pros, the key points for investors here are TAT's solid potential for expansion and growth, and its favorable risk/reward profile. He writes, 'We view TATT as an under the radar small cap comm'l aero aftermarket component repair player poised to drive above market/peer avg growth through share gains and an improved go-to-market strategy. In the coming years as revenues grow and the company scales its operations we believe gross and EBITDA margin expansion will be a key driver of the stock. In the near-term mgmt's execution on its recent APU repair wins and corresponding share gains will be a major focus point. With the stock trading at a 20% discount to its closest peers on an EV/EBITDA basis we believe the risk/reward profile is favorably skewed.' The 5-star analyst goes on to put a Buy rating on this stock, complemented by a $35 price target that suggests a potential one-year upside of 32%. (To watch Ciarmoli's track record, click here) There are only two recent analyst reviews on file for TATT shares, but both are positive – giving the stock its Moderate Buy consensus rating. The shares are priced at $26.44 and their $35.50 average price target implies that the stock will gain 34% in the coming year. (See TATT stock forecast) Peloton Interactive (PTON) Next on our list is Peloton, the well-known home workout company that brought interactive social media to the world of home-based fitness. Peloton has updated an old stand-by – the stationary bicycle – with modern technology, including digital video connections. This forms the base for a connected, online exercise community, allowing Peloton's customers to find the advantages of group exercise classes in their own homes. Peloton leveraged its connectivity to great advantage several years ago, during the COVID pandemic, and has continued to use it as an important selling point that differentiates it from its competition. Peloton has built a community of 6 million members, making it one of the world's largest interactive fitness platforms, however its recent financial results weren't a particularly strong affair. In the last reported quarter, for fiscal 3Q25, the company saw a 13% year-over-year decline in sales. The revenue hit was strongest in the connected fitness segment, at 27%, but also included a 4% decline in subscription revenue. In total, Peloton's revenue came to $624 million. As noted, that was down 13% YoY – although the figure did beat the forecast by $2.67 million. The company's bottom line came to a net loss; the EPS of ($0.12) missed expectations – by 6 cents per share. The company has recognized the weaknesses and is actively working to address them. In January, Peloton launched its Personalized Plans programs and had enrolled 500,000 members by the end of its fiscal Q3 on March 31. Looking ahead to the end of fiscal year 2025, on June 30, Peloton expects to realize an adjusted EBITDA in the range of $330 million to $350 million and to bring in approximately $250 million in free cash flow. This stock has caught the attention of Truist analyst Youssef Squali, who believes that the headwinds have been priced in and that management will likely succeed in its plans to restart revenue and earnings growth. Squali says of Peloton, 'With the BS cleaned up and Opex materially cut to ensure sustainable FCF profitability, the new leadership is now squarely focused on improving the customer experience to drive revenue growth. Mgmt will guide to FY26 in early August, which is likely to be flattish, implying positive Y/Y revenue growth in 2H26, the first time since 2021. For F4Q25 (ending 6/30), our tracking of the Truist Card Data shows that revenue is tracking virtually in line with consensus (thru 6/9). With subscriptions accounting for ~2/3s of revenue, improving profitability and a valuation at 1.6x & 11.4x sales and AEBITDA, we believe that PTON is virtually de-risked with compelling upside.' Quantifying this stance, Squali rates PTON as a Buy, and his $11 price target points toward a hefty gain of 77% on the one-year horizon. (To watch Squali's track record, click here) Overall, Peloton holds a Moderate Buy consensus rating from Wall Street's analysts, based on 13 recent reviews that break down to 5 Buys and 8 Holds. The stock is currently trading for $6.22 and its $7.86 average price target suggests that the shares will gain 26% in the next 12 months. (See PTON stock forecast) To find good ideas for stocks trading at attractive valuations, visit TipRanks' Best Stocks to Buy, a tool that unites all of TipRanks' equity insights. Disclaimer: The opinions expressed in this article are solely those of the featured analysts. The content is intended to be used for informational purposes only. It is very important to do your own analysis before making any investment. Disclaimer & DisclosureReport an Issue
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18 minutes ago
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Should You Really Buy Stocks With the S&P 500 Near Its Record High? Warren Buffett Has Excellent Advice for Investors.
The S&P 500 has rebounded to within 3% of its record high despite elevated valuations and uncertainty surrounding tariffs. Warren Buffett has advised investors to be fearful when others are greedy, and greed appears to be driving the stock market today. Warren Buffett has also advised investors to pounce on buying opportunities when quality stocks trade at sensible prices. These 10 stocks could mint the next wave of millionaires › The S&P 500 (SNPINDEX: ^GSPC) declined 19% earlier this year, but the index has since recouped most of its losses. The S&P 500 is currently less than 3% below its record high despite widespread economic uncertainty. S&P 500 companies reported first-quarter earnings that were much better than expected, but consensus estimates for the next three quarters have been revised much lower. And while inflation has cooled since January, economists expect tariffs to raise prices and slow economic growth in the future. Is it really smart to buy stocks right now? Consider this advice from Warren Buffett, one of the greatest investors in American history. Warren Buffett once wrote, "A simple rule dictates my buying: Be fearful when others are greedy, and be greedy when others are fearful." He offered that levelheaded advice when the stock market crashed during the Great Recession. The environment was rife with fear at the time, but the stock market is in a very different place today. Investors are decidedly greedy. The S&P 500 is within striking distance of its all-time high despite extreme uncertainty related to tariffs. The Trump administration has made very little progress in trade negotiations, with only a single finalized deal to date and less than a month until the 90-day pause on reciprocal tariffs expires. Even if the Trump administration strikes deals that eliminate those reciprocal tariffs with every trading partner on the planet, the duties already imposed have raised the average tax on U.S. imports to 12.4%. That is the highest level since 1941. Economists expect tariffs to raise prices and slow economic growth, but the question is to what extent? Answering that question would be hard under any circumstances, but it is impossible right now because the White House has yet to finalize the duties, and the president consistently tweaks his trade policies. Meanwhile, the S&P 500 currently trades at 21.6 times forward earnings, a rich valuation above the five-year average of 19.9 times forward earnings. In short, despite tariff-related uncertainty and elevated valuations, the S&P 500 has nearly climbed back to a record high. That is a clear sign of greed, so investors should be cautious when making decisions. Pay close attention to valuations, buy smaller positions than you otherwise would have, and build a cash position to capitalize on the next drawdown. Investors should never pass on the opportunity to buy a quality stock at a reasonable price. Warren Buffett elaborated on that idea in his 1996 letter to shareholders: "Your goal as an investor should simply be to purchase, at a rational price, a part interest in an easily understandable business whose earnings are virtually certain to be materially higher five, ten, and twenty years from now. Over time, you will find only a few companies that meet these standards -- so when you see one that qualifies, you should buy a meaningful amount of stock." Some investors shy away from the market during periods of macroeconomic uncertainty. Recent events are a good example. The S&P 500 fell 10.5% over two trading days in early April after President Trump announced his "Liberation Day" tariffs. This was the fifth-worst two-day decline for the benchmark index since 1950. Admittedly, the tariffs the president outlined were shockingly severe and may have led to a recession had they stayed in place. However, hindsight says the subsequent crash was an overreaction. Rather than panic-selling stocks, investors should have been buying shares of companies whose earnings are likely to be materially higher in the future. Here is the bottom line: The stock market is undoubtedly in a precarious place right now. Tariffs and high valuations mean the risk is skewed to the downside, so any sign the economy is succumbing to stagflation -- a possibility that has many economists concerned -- may lead to an abrupt and sharp decline. Nevertheless, investors should always buy a quality stock when it trades at a sensible price. Ever feel like you missed the boat in buying the most successful stocks? Then you'll want to hear this. On rare occasions, our expert team of analysts issues a 'Double Down' stock recommendation for companies that they think are about to pop. If you're worried you've already missed your chance to invest, now is the best time to buy before it's too late. And the numbers speak for themselves: Nvidia: if you invested $1,000 when we doubled down in 2009, you'd have $377,293!* Apple: if you invested $1,000 when we doubled down in 2008, you'd have $37,319!* Netflix: if you invested $1,000 when we doubled down in 2004, you'd have $659,171!* Right now, we're issuing 'Double Down' alerts for three incredible companies, available when you join , and there may not be another chance like this anytime soon.*Stock Advisor returns as of June 9, 2025 Trevor Jennewine has no position in any of the stocks mentioned. The Motley Fool has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy. Should You Really Buy Stocks With the S&P 500 Near Its Record High? Warren Buffett Has Excellent Advice for Investors. was originally published by The Motley Fool Error in retrieving data Sign in to access your portfolio Error in retrieving data Error in retrieving data Error in retrieving data Error in retrieving data
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4 hours ago
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1 bit of Warren Buffett advice I'm ignoring
Billionaire investor Warren Buffett is known for making huge sums of money by making canny investments in individual shares like Coca-Cola and Apple. But when it comes to whether most small private investors with a bit of spare cash ought to follow his approach, he has a potentially surprising point of view. Simply put, he reckons many of them should forget doing that and instead simply put the money into a fund that tracks a stock market index, such as the FTSE 100 or S&P 500. There are several reasons why this could make sense for investors. Investing in the stock market takes time and effort. Not everyone wants to learn things like how to read a balance sheet, or what different stock valuation techniques can tell us. Simply putting money into an index tracker is a lower effort activity and, in theory at least, it ought to produce returns broadly in line with the economy (or at least that part of it that is represented by the index). Another issue to consider is cost. Buying and selling shares can involve fees, commissions, charges and taxes and some of those have a minimum level no matter how little is being invested. Index trackers can be a more cost-effective way to put modest sums to work in the market, when it comes to such costs. A key part of Buffett's logic is also something that many of us might not want to believe. The reality is that, for many investors (and this is true for experienced institutional ones as well as small private ones), beating the market can be harder than it looks. It can actually be more financially rewarding simply to put money into an index tracker than to try and pick a range of individual shares that will do well. But hang on a minute, is individual stock-picking not exactly what Buffett does? Yes, it is. While the 'Oracle of Omaha' reckons most small investors would be better off investing in an index tracker, that does not mean he thinks they all should. Buffett started buying individual shares as a young private investor (in fact, while still at school). As his example shows, it is possible for individual investors to do very well building a portfolio of specific shares. I buy individual shares – and apply some Buffett wisdom while doing so. For example, consider my investment in Greggs (LSE: GRG). It has a large, resilient target market – something Buffett always looks for. Thanks to its brand, unique products, wide distribution and existing customer base, it can compete effectively in that market. This reminds me of some classic Buffett investments, from Coca-Cola to Dairy Queen. The Greggs share price has fallen 33% in the past year. Such falls do not typically happen without reason and here, one factor is the risk that higher employment-related costs will eat into profitability. But, like Buffett, I am a long-term investor. Will Greggs continue to struggle with its cost base, or could this be a short-term bump in the road? I reckon it may well be the latter. The baker has a proven business, is profitable, pays a dividend and has what I currently see as an attractive valuation. That is why I have been snapping up its shares. The post 1 bit of Warren Buffett advice I'm ignoring appeared first on The Motley Fool UK. More reading 5 Stocks For Trying To Build Wealth After 50 One Top Growth Stock from the Motley Fool C Ruane has positions in Greggs Plc. The Motley Fool UK has recommended Apple and Greggs Plc. Views expressed on the companies mentioned in this article are those of the writer and therefore may differ from the official recommendations we make in our subscription services such as Share Advisor, Hidden Winners and Pro. Here at The Motley Fool we believe that considering a diverse range of insights makes us better investors. Motley Fool UK 2025
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12 hours ago
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Markets flatline amid Trump's delay on Iran and potential Fed cuts in July
The S&P 500 dipped 0.2% on Friday as investors waited on President Donald Trump's next move on Iran and a possible rate cut from the Federal Reserve in July. Markets closed off a lackluster week as the major stock indices either slightly dipped or remained flat on Friday. The S&P 500 posted a daily drop of 0.2% and a weekly decline of 1.3%. The Nasdaq dropped 0.5%, and the Dow Jones was essentially flat with a daily gain of 0.1%. The end of the short trading week—U.S. markets were closed on Thursday in observance of Juneteenth—came as the White House said Thursday evening that President Donald Trump would decide within two weeks whether to strike Iran. The commander-in-chief had been weighing military action after Israel, a key U.S. ally in the Middle East, began trading missile and drone strikes with the Islamic Republic last Thursday. 'We know exactly where the so-called 'Supreme Leader' is hiding,' Trump posted on social media on Wednesday, referring to Iran's Ayatollah Ali Khamenei. 'He is an easy target, but is safe there – We are not going to take him out (kill!), at least not for now.' A potential U.S. entrance into the conflict between Israel and Iran could heighten tensions in the region and further disrupt oil trade. Oil prices fell on Friday, in a likely sign that traders were relieved that Trump decided to delay conflict with Iran for two weeks. 'That means two weeks of uncertainty for financial markets, but investors are still inclined to see the Middle East conflict as a local, not a global, economic issue,' Paul Donovan, chief economist of UBS Global Wealth Management, said in a Friday analyst note. Meanwhile, Christopher Waller, a member of the Federal Reserve Board of Governors, said Friday that the U.S. central bank may cut interest rates as early as July. 'That would be my view, whether the committee would go along with it or not,' Walker said in an interview with CNBC. On Wednesday, the Fed decided to hold interest rates steady for its fourth meeting in a row. Meanwhile, Trump has pushed for interest rate cuts since he took office in January. 'Uncertainty about the economic outlook has diminished but remains elevated,' wrote the Fed in a Wednesday statement. While the central bank struck a cautiously optimistic approach to the U.S. economy, some analysts were more pessimistic. 'The slump in single-family construction is deepening, another headwind to activity and employment,' wrote Samuel Tombs and Oliver Allen, economists for Pantheon Macroeconomics, in a Friday research note. This story was originally featured on Error in retrieving data Sign in to access your portfolio Error in retrieving data Error in retrieving data Error in retrieving data Error in retrieving data
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21 hours ago
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Stocks Recover on Mideast Hopes and Dovish Comments from Fed Governor Waller
The S&P 500 Index ($SPX) (SPY) today is up +0.59%, the Dow Jones Industrials Index ($DOWI) (DIA) is up +0.53%, and the Nasdaq 100 Index ($IUXX) (QQQ) is up +0.82%. September E-mini S&P futures (ESU25) are up +0.52%, and September E-mini Nasdaq futures (NQU25) are up +0.71%. Stock index futures today recovered from overnight losses and turned higher. Meanwhile, WTI crude prices erased gains and moved lower after Reuters reported that the Iranian government said it is ready to discuss limitations on its uranium enrichment. Stocks have support on speculation that the US will give negotiations a chance before deciding to enter the Israel-Iran war, following the White House's announcement on Thursday that President Trump would decide within two weeks on any US involvement in the conflict, and there is still a "substantial chance" of a negotiated settlement. Stocks also have support from dovish comments today from Fed Governor Waller, who said, "I think we have room to bring interest rates down as early as July, and then we can see kind of see what happens with inflation." Stock index futures initially moved lower in overnight trade on concerns about escalation of the Israel-Iran war. On Thursday, Bloomberg reported that senior US officials are preparing for a possible strike on Iran. Trading activity today may be more volatile than usual due to the expiration of approximately $6.5 trillion in June options, futures, and derivatives contracts, an event known as "triple witching." Today's US economic news was negative for stocks after the June Philadelphia Fed business outlook survey was unchanged at -4.0, weaker than expectations of an increase to -1.5. Stocks still have some negative carryover from Wednesday when Fed Chair Powell warned that tariff-driven economic uncertainty and inflation risk continue to complicate the Fed's chances to ease monetary policy. Also, the FOMC cut its US GDP forecast and raised its inflation forecast for this year. Hostilities between Israel and Iran entered an eighth day today with no signs of easing. Israel struck more of Iran's nuclear and missile production sites today and warned it could bring down Iran's leadership. Meanwhile, Iran said it won't negotiate with the US while Israel's assault continues. Iranian President Pezeshkian said the only way to end the imposed war is to "unconditionally stop" the enemy's aggression. Iran showed no signs of backing down and reiterated an intention to respond with force if the US were to get directly involved in Israeli attacks. So far, there's been no closure of the vital Strait of Hormuz that handles about 20% of the world's daily crude shipments, although navigational signals from over 900 vessels moving through the strait have been disrupted due to "extreme jamming" of signals from the Iranian port of Bandar Abbas, which caused a collision of two tankers Tuesday near the Strait of Hormuz. Investors are bracing for negative tariff news within the next week or so following President Trump's announcement last Wednesday that he intends to send letters to dozens of US trading partners within one to two weeks, setting unilateral tariffs ahead of the July 9 deadline that came with his 90-day pause. The markets are discounting the chances at 15% for a -25 bp rate cut at the July 29-30 FOMC meeting. Overseas stock markets today are mixed. The Euro Stoxx 50 is up by +1.25%. China's Shanghai Composite closed down -0.07%. Japan's Nikkei Stock 225 closed down -0.22%. Interest Rates September 10-year T-notes (ZNU25) today are down -4 ticks. The 10-year T-note yield is up +2.6 bp to 4.417%. T-notes today are under pressure on negative carryover from weakness in European government bonds. Also, rising inflation expectations are bearish for T-notes after the US 10-year breakeven inflation rate rose to a 2-week high today at 2.337%. T-notes recovered from their worst levels on the weaker-than-expected Philadelphia Fed business outlook survey. Also, dovish comments from Fed Governor Waller were bullish for T-notes when he said, "I think we have room to bring interest rates down as early as July." T-notes are still supported by safe-haven demand on concern the US may be on the verge of joining the attack against Iran. European government bond yields today are higher. The 10-year German bund yield is up +0.6 bp to 2.528%. The 10-year UK gilt yield is up +1.8 bp to 4.548%. German May PPI fell -1.2% y/y, right on expectations and the biggest decline in 8 months. UK May retail sales ex-auto fuel fell -2.8% m/m, weaker than expectations of -0.7% m/m and the biggest decline in nearly 1-1/2 years. Swaps are discounting the chances at 6% for a -25 bp rate cut by the ECB at the July 24 policy meeting. US Stock Movers Chip makers are rallying today and are supporting gains in the broader market. Advanced Micro Devices (AMD) is up more than +4% to lead gainers in the Nasdaq 100. Also, ON Semiconductor Corp (ON) and Super Micro Computer (SMCI) are up more than +2%. In addition, Microchip Technology (MCHP), Intel (INTC), and Applied Materials (AMAT) are up more than +1%. Kroger (KR) is up more than +5% to lead gainers in the S&P 500 after reporting Q1 adjusted EPS of $1.49, better than the consensus of $1.45. CarMax (KMX) is up more than +3% after reporting Q1 net sales of $7.55 billion, stronger than expectations of $7.52 billion. Fair Isaac Co (FICO) is up more than +3% after its Board of Directors approved a stock repurchase program to acquire up to $1 billion of the company's outstanding common stock. GMS Inc (GMS) is up more than +27% after the Wall Street Journal reported that Home Depot had made an offer for the company, potentially setting off a bidding war with QXO Inc, which made a $5 billion offer for the company earlier this week. Circle Internet Group (CRCL) is up more than +7%, adding to Wednesday's +34% surge after the US Senate passed stablecoin legislation setting up regulatory rules for cryptocurrencies pegged to the dollar. Mondelez International (MDLZ) is up more than +2% after Wells Fargo Securities upgraded the stock to overweight from neutral with a price target of $78. Darden Restaurants (DRI) is up more than 1% after reporting that Q4 comparable same-store sales rose 4.60%, stronger than the consensus of 3.46%. Accenture (ACN) is down more than -7% to lead losers in the S&P 500 after lowering its full-year operating margin forecast to 15.6% from a previous forecast of 15.6%-15.7%. Smith & Wesson Brands (SWBI) is down more than -15% after reporting Q4 adjusted EPS of 20 cents, weaker than the consensus of 23 cents. Jack in the Box (JACK) is down more than -1% after Stifel downgraded the stock to hold from buy. Earnings Reports (6/20/2025) Accenture PLC (ACN), CarMax Inc (KMX), Darden Restaurants Inc (DRI), Kroger Co/The (KR). On the date of publication, Rich Asplund did not have (either directly or indirectly) positions in any of the securities mentioned in this article. All information and data in this article is solely for informational purposes. This article was originally published on
