167.36 -1.08 (-0.64%)
After hours: 7:58PM EDT
|Bid||167.40 x 900|
|Ask||167.35 x 900|
|Day's Range||168.23 - 171.98|
|52 Week Range||124.46 - 292.76|
|Beta (3Y Monthly)||2.52|
|PE Ratio (TTM)||31.79|
|Earnings Date||Aug 15, 2019|
|Forward Dividend & Yield||0.64 (0.38%)|
|1y Target Est||183.14|
Nvidia has recreated the Apollo 11 moon landing in modern graphics to demonstrate what astronauts saw 50 years ago.
Nvidia employed its latest tech to make big improvements to the Moon-landingdemo it created five years ago and refined last year to demonstrate its TuringGPU architecture
Advanced Micro Devices (NASDAQ:AMD) stock has been red-hot, hitting new 52-week highs earlier this month. When it comes to returns, AMD stock is crushing its peers like Nvidia (NASDAQ:NVDA) and Intel (NASDAQ:INTC).Source: Shutterstock Even better, InvestorPlace readers who followed my advice have been crushing the trade too, riding the surge from about $30 to $34 and cashing out on its run into resistance. Now we have to consider when to buy AMD stock again and decide whether it can break out over its stiff resistance. * 10 Tech Stocks That Are Still Worth Your Time (And Money) $34 has proven to be a tough nut to crack, but with the trend pointing higher, a breakout could be looming. AMD stock price fell slightly on Wednesday as it failed to exceed $74. Advanced Micro Devices stock was down over 2% in early trading on Thursday, thanks to a downgrade by Mizuho. In mid-afternoon trading today, the stock is down 0.2% to $32.90.InvestorPlace - Stock Market News, Stock Advice & Trading TipsMizuho analysts downgraded the stock to "neutral" from "buy," but raised their price target to $37 from $33. The new target is more than 10% above the current price of Advanced Micro Devices stock. Not that it matters all that much, but it's worth pointing out that the Street-high target for AMD stock is $43, about 30% above its current levels.So can Advanced Micro Devices stock reach $43? Trading AMD Stock Click to EnlargeA look at the weekly chart above shows a pretty simple layout. AMD stock is being pushed higher by uptrend support (depicted by the blue line) and is finding resistance at $34. It temporarily broke above this mark earlier this week, but it wasn't able to stay above it.That's not surprising, given how much resistance the shares face at $33-$34. In fact, I'd argue that it's healthy for AMD stock to back off its recent run a bit. The more shallow the dips become and the more times it tests $34, the more likely it is to push through that level.This is setting up as a textbook ascending triangle formation. That's where a stock makes a series of higher lows, led higher by uptrend support, while regularly failing at a static level of resistance. That's exactly what Advanced Micro Devices stock is doing now.That doesn't guarantee that AMD stock will break out or that it will push through $34. Advanced Micro Devices stock very well could lose uptrend support and tumble lower in the ensuing months. I would absolutely love another shot at AMD near the 10-week moving average, which is currently at $30.60, or near its uptrend support.That would require a fall of about 7.5% of AMD stock price, which I'm not sure we'll get. The company reports its earnings on July 30, so investors looking to ride some pre-earnings momentum or those looking to avoid a potentially large move should keep that date in mind.So what's the plan? Those who love AMD stock can gobble it up on any of these pullbacks. For more prudent investors, buying Advanced Micro Devices stock on a deeper pullback or on a breakout over $34 are possibilities. Like I said, I would love to buy AMD after it retests its support. Valuing Advanced Micro DevicesWhy is Advanced Micro Devices stock doing so much better than its peers? In 2019, AMD stock is up 78%, compared to just 28% and 5% for NVDA and INTC, respectively. Over the past 12 months, the performance gaps are even more stark.AMD stock price has surged 97% in the last year, while NVDA has fallen almost 33%. Ouch. Intel is down about 5% during that span. This difference in performance is why I recommended a basket approach more than a year ago to protect against risk. While Nvidia has underperformed Intel, imagine owning just Intel or just Nvidia and watching AMD double. That's frustrating.Luckily though, AMD's fundamentals are improving.While Nvidia makes the best-in-class chips, AMD's products are making up ground. AMD's products are being incorporated into more PCs, gaming consoles and other systems, enabling the company to generate strong top- and bottom-line growth. While Intel is struggling to generate growth and while Nvidia has negative metrics in 2018, AMD continues to pump out solid results.Analysts, on average, expect AMD's revenue to eke higher by 6.3% this year to $6.88 billion. In 2020 though, the consensus forecast calls for a 22%surge to almost $8.5 billion. The company's earnings forecast is even more impressive, with average estimates calling for 43.5% growth this year and an acceleration up to 56% growth in 2020.In 2020, the consensus estimate calls for earnings of $1.03 per share, which leaves AMD stock trading at roughly 32 times next year's consensus EPS outlook. That's a little pricey, considering how much better Nvidia's margins are than AMD's. But assuming AMD can meet the consensus growth estimates, the valuation of AMD stock isn't all that unreasonable.Bret Kenwell is the manager and author of Future Blue Chips and is on Twitter @BretKenwell. As of this writing, Bret Kenwell is long NVDA. More From InvestorPlace * 2 Toxic Pot Stocks You Should Avoid * 10 Tech Stocks That Are Still Worth Your Time (And Money) * 7 Marijuana Stocks With Critical Levels to Watch * 7 of the Best Smart-Beta ETFs to Target Right Now The post Can AMD Stock Break Out to $37?Â appeared first on InvestorPlace.
Sometimes, a fantastic breakout by a high-quality growth stock starts in average or barely higher than usual volume. Why?
Thursday was an awful day for Netflix (NASDAQ:NFLX) stock -- probably its worst in eight years.That was the last time the company reported a quarterly loss in U.S. subscribers. And this morning, Netflix did just that: Over the last quarter, Netflix reported a net loss of 126,000 U.S. subscribers. Analysts with FactSet were expecting a 352,000 gain!Worldwide, Netflix did manage a net gain in subscribers (of 2.7 million)…but only half as many as expected (5 million).InvestorPlace - Stock Market News, Stock Advice & Trading TipsThis has created some controversy on Wall Street about whether to abandon NFLX - one of the most popular stocks around. Morgan Stanley says Netflix stock is still a long-term buy; Wedbush Securities says that is "idiotic."But ultimately, NFLX was down 11% on the news, and that says it all.This is, again, a significant reversal. Netflix stock had been chugging along just fine, prior to Thursday. And last month, we cashed out a 120% gain on NFLX in my Accelerated Profits service!So, today I want to talk about how to know when to sell.Our exit from NFLX was extremely well timed - but not because of any particular genius on my part. (Although I do like to think, after 40 years, I've learned a thing or two.)It was because I know how to read the signs. And if the other so-called "experts" had taken a good, hard look at Netflix's last earnings release - they might have avoided this, too!Back in June, Netflix stock was a great performer. And in the previous quarter, U.S. subscriptions had gained 1.7 million! Overall, subscriptions were up 26% year-over-year. And earnings per share were up, too, by 18.8%.But there was a big red flag, too. As I put it in my "sell" alert on June 11:"For the second quarter, Netflix provided weaker-than-expected guidance. As a result, analysts have slashed earnings per share estimates and are now looking for a 34.1% drop in earnings. Let's take that as our cue to exit. NFLX is up about 7% in the past week, so if you bought NFLX at the time of my original recommendation, you'll exit the stock with about a 120% gain. Sell NFLX."Analyst Earnings Revisions are a big factor in my Portfolio Grader system. And on Thursday, NFLX investors may have wished they'd heeded that warning. My guess is that a lot of folks "fell in love" with NFLX. But I don't believe in falling in love with a stock. I'm a numbers guy…and when the numbers turn south, I get out.In January, we took profits in NVIDIA Corporation (NASDAQ:NVDA) for similar reasons.NVDA stock is one of my favorites of recent years and had been a top performer for nearly three years. Demand for its graphics chips had skyrocketed - until it stumbled in the third quarter of 2018, when the company fell short of its sales forecasts.The company guided below expectations as well, which is what really hit the stock.As the share price grew more volatile and analysts kept lowering their forecasts for NVDA stock, I knew it was time to collect our winnings. So, in Accelerated Profits, we closed our position on a bounce for a whopping 166% profit.Now, a "sell" in our short-term system does not mean that a stock is a bad long-term investment. It very well could be a great long-term investment.But to generate consistent short-term profits, we've found that a decline in fundamental indicators is a clear sign to move on, take profits, and focus on stocks with superior ratings.Our system is very picky. It demands excellence from stocks. We don't let our money sit in a stock with declining ratings when we know it can be deployed into stronger stocks. After all, I believe our money deserves the very best, and you deserve the very best, too. Where I See the Best Opportunity NowThe investment potential in 5G wireless is huge; whoever controls 5G would essentially control the internet several years from now.There are a lot of companies out there that are jumping on the 5G bandwagon, but it's all about finding the right company that offers significant long-term potential.I have found just that name. In my Growth Investor service, I recommended a not-so-well-known electronics company that is helping some of the big ones move into the 5G space.To learn more, I strongly suggest you go here to watch my presentation on the huge technological shift going on at now. And if you sign up now, you'll receive my 1 Investment for the Coming 5G Revolution absolutely free. It tells you absolutely everything you need to know about 5G and the best way to play it. Click here for the details.The post Netflix Stock: How I Knew to Sell BEFORE It Got Crushed appeared first on InvestorPlace.
Taiwan Semiconductor Manufacturing (TSM), the world’s largest contract chipmaker, competes with Samsung Foundry (SSNLF) and Global Foundries.
Learning how to invest in stocks can be intimidating. Stock market beginners face many questions. How to buy stocks? When to sell? How to read charts? Here you'll find answers.
Advanced Micro Devices (AMD) is set to report its Q2 earnings on Wednesday, July 24. The semiconductor firm's stock has surged 79% for far this year.
Chipmaker Nvidia is at the forefront of AI and machine learning, but earnings and share prices have dived. Here is what fundamental and technical analysis say about buying Nvidia stock now.
The US-China trade deal is reportedly 90% complete. However, it’s the remaining 10% that’s turning out to be difficult.
After starting the year out on a dour note, the markets made a complete reversal. These days, the major averages -- like the S&P 500 and Nasdaq Composite -- continue to hit new record highs. The Dow Jones isn't doing too shabby either.But as the overall market surges higher, many stocks are quickly moving out of bargain status and perhaps into the expensive category. For those investors looking for value stocks, pickings are slim.Or are they?InvestorPlace - Stock Market News, Stock Advice & Trading TipsThe truth is, there are plenty of value stocks still out there to be had. Sure, you may not find them among the FANGs, but bargain hunters can still find great deals on value stocks with low P/Es, strong earnings profiles, sales and even strong dividends.And considering that over the long haul, value tends to beat growth, now could be the best time ever to load up on some of these value stocks. * 7 Stocks Top Investors Are Buying Now With that, here are three great value stocks to buy this July and hold for a long time. Goldman Sachs (GS)Trailing P/E: 8.9The vampire squid is becoming a kinder and gentler, well, vampire squid. Investment bank Goldman Sachs (NYSE:GS) has become one of the best value stocks around. Today, shares can be had for a trailing P/E of just 8.9. That's dirt cheap considering its future potential.The reason behind the numbers is simple and comes from its former vampire squid name. Stock, currency, and derivatives trading used to make up the bulk of GS revenues in previous years. Those operations are still there to some extent. But thanks to regulation, Goldman has had to look for other ways to grow. Without those, investors have sort of abandoned the major financial name.However, Goldman has found the solution in consumer banking to the mass affluent. The firm's personal lending and deposit account platform, Marcus, has been extremely successful -- gathering more than $46 billion in deposits and issuing $4.6 billion in loans. Meanwhile, its deal to buy out wealth manager United Capital Financial Partners adds technology, investment management, and additional mass affluent assets into its umbrella. The idea is that Goldman is going back to its roots as more of a banking institution than a trading one.This is wonderful for investors. These are the kind of operations that throw off plenty of steady cash flows. And they already have, thanks to strong numbers, Goldman was able to increase its dividend and announce a massive $7 billion buyback program.However, investors continue to ignore the potential. That makes Goldman Sachs a great value stock to buy today. Micron TechnologyTrailing P/E: 5.09Modern life runs on semiconductors. However, there is a big difference between the chips needed for self-driving cars and the one in your garage door opener. For Micron Technology (NASDAQ:MU), the fact that it focuses on the boring, analog side of that equation hasn't been so good in recent years.Analog chips are so standard that pricing for them is actually traded like a commodity. There's a spot market for these chips … just like a barrel of oil or bushel of corn. So, with supplies of DRAM and other basic analog chips being in a glut, Micron has been largely ignored -- unlike say, NVIDIA (NASDAQ:NVDA) -- and has become one of the cheapest value stocks around. You can currently snag MU stock for P/E of around 5.At that bargain price, you should snag all you can.For starters, the glut of DRAM may end as soon as the trade war goes. Already, Micron has seen a boost since President Donald Trump announced that firms can start selling chips to China's Huawei. Without trade issues, China should once again start consuming DRAM with reckless abandon.But what is really exciting is that MU has lucrative chipsets. At the same time, Micron continues to improve its memory chips to make them less like commodities and more irreplaceable to manufacturers. This includes its 3D XPoint technology -- which allows for very rapid storage and release of data. The kind of chip that is perfect for autonomous cars and A.I. * 9 Retail Stocks Goldman Sachs Says Are Ready to Rip Over the long haul, these chips will help reduce Micron's dependency on boring DRAM and allow it to profit from higher margins and demand. In the meantime, investors can score this value stock for basically free while they wait for the turnaround. PepsiCo (PEP)Trailing P/E: 14.6By nature, most consumer staples are considered value stocks. That's because many of them aren't fast-growing anymore and are mostly known for their dividends. So, when you can find a steady-eddy consumer stock, trading for a low valuation that also has some serious growth behind it, you have to consider it for your portfolio. And that sums up PepsiCo (NYSE:PEP) to a "T."PEP doesn't need an introduction. We all know the global provider of sweet beverages and salty snacks. The firm giant is pulling in billions in annual revenues across more than 200 different countries. But despite its size, Pepsi is still growing -- with management looking to score 4% to 6% organic growth this year.How PEP will do that comes down to continued improvements to its product mix. That includes new organic, healthy snacks as well as the continued foray into ready-to-drink coffee and sparkling water.Meanwhile, CEO Ramon Laguarta has continued to act on his promise of a "faster, stronger, better" PepsiCo. That includes investing a hefty dose of tech, consuming intimacy initiatives and looking to cut costs. So far, Laguarta's moves are working. Last quarter was simply smashing for PEP.And yet, the market still doesn't seem to care.That has made PEP a wonderful value stock to buy. With a P/E of just under 15, investors aren't pricing in any of the firm's growth potential. And with its 2.88% dividend, you're paid while waiting for that potential to be realized.At the time of writing, Aaron Levitt did not hold a position in any stock mentioned. More From InvestorPlace * 2 Toxic Pot Stocks You Should Avoid * 7 Stocks Top Investors Are Buying Now * The 10 Best Cryptocurrencies to Keep on Your Radar * 7 Marijuana Penny Stocks That Could Triple (But You Won't Make Money) The post 3 Great Value Stocks to Buy This July appeared first on InvestorPlace.
Nvidia's (NASDAQ:NVDA) first-quarter results left a lot to be desired despite beating analyst estimates. While revenues and earnings were better than expected, the top line still saw a 31% decline over the same period last year, sending Nvidia stock to $133 before recovering throughout June.Source: Shutterstock As I write this, the Nvidia stock price is 34% higher than its 52-week low of $124.46 and 43% lower than its 52-week high of $292.76. While it's almost a certainty Nvidia stock won't hit its 52-week high anytime soon, the idea of it hitting its January lows remain on the table for the remainder of 2019. What Nvidia reports in August will have a significant bearing on the future direction of its stock price.InvestorPlace - Stock Market News, Stock Advice & Trading Tips * 9 Retail Stocks Goldman Sachs Says Are Ready to Rip A Closer Look at NVDA StockMy InvestorPlace colleague Tom Taulli recently weighed in on Nvidia's stock price suggesting that in the near-term, NVDA will face significant volatility, due in large part to the terrific job Advanced Micro Devices (NASDAQ:AMD) CEO Lisa Su is doing to innovate at a rapid pace, taking market share from some of its bigger rivals including Nvidia. There is no question that AMD is turning heads, but Nvidia needn't worry that it's losing a little business to Su. Instead, it should continue investing in R&D to innovate its way out of its latest slowdown. To do that it's got to continue generating free cash flow, the one thing it's got that AMD doesn't. AMD can't afford to make any mistakes at this point. If it does slip up, investors will punish its stock, customers will think twice about buying its product, and profits will become losses in a hurry. The Free Cash Flow AdvantageIn my most recent article about Nvidia, I couldn't stress enough how important it is for the company to generate free cash flow. It's the fuel that drives innovation. Without it, you're hopelessly stuck in neutral. I love companies that generate free cash flow. It's even better if they can grow FCF by double digits over the long haul. Those that can see their stock prices go higher over time; those that can't see their stock prices go lower. It's that simple. So, come Aug. 15, Nvidia needs to demonstrate that it's doing what's necessary to maintain its current levels of free cash. It doesn't need to be hitting it out of the park (given recent sales declines we know that's not happening) but it does need to show that it's got a handle on the cash going out the door. In the first quarter, Nvidia saw a significant drop in its free cash flow. In Q1 2019, Nvidia had $1.33 billion in free cash flow. In Q1 2020, it dropped by 55% to $592 million. Naturally, its non-GAAP earnings per share in the same period fell by 57%. The two usually go together. Where will it be after the second quarter?After two quarters in fiscal 2019, Nvidia's free cash flow was $2.11 billion, up from $879 million a year earlier. FCF was 33% of its revenue for the first six months of the fiscal year. In fiscal 2018, its FCF for the first six months was 21% of $4.17 billion in sales.In Q1 2020, free cash flow was just less than 27% of its $2.22 billion in revenue. I expect that Nvidia's second-quarter will come in somewhere in the 20s, hopefully, higher than lower.Analysts expect Nvidia to generate revenues of $11 billion in 2020. Based on a 25% rate of free cash flow generation on the year, Nvidia should still be able to deliver almost $3 billion in FCF. AMD on a trailing 12-month basis used $251 million in free cash flow. Over the past five years, it's averaged -$143 million in free cash flow; I doubt it will be cash-flow positive in its latest fiscal year. So, the fact that Nvidia is trading at 32 times its 2020 earnings compared to 51 times for AMD, and it generates a lot of free cash flow, makes me feel much better about NVDA stock as a long term play. The Bottom Line on Nvidia StockWhen Nvidia reports its Q2 2020 earnings in August, I'll be looking at how much free cash flow it generates from its revenues. If it's in the 20s, I wouldn't be concerned. If it's lower than that, I'd begin to reassess why you own its stock. Long term, Nvidia's a great hold. However, as my colleague said, it's going to see some volatility over the next few months and into 2020.At the time of this writing Will Ashworth did not hold a position in any of the aforementioned securities. More From InvestorPlace * 2 Toxic Pot Stocks You Should Avoid * 9 Retail Stocks Goldman Sachs Says Are Ready to Rip * 7 Services Stocks to Buy for the Rest of 2019 * 6 Stocks to Buy and 1 to Sell Based on Insider Trading The post Free Cash Flow Is the Key to Whether or Not Nvidia Stock Is a Buy appeared first on InvestorPlace.
Sweden's AB Volvo raised its market forecasts for North America and Europe on Thursday, as higher trucks and construction equipment deliveries helped it to top profit estimates. The world's second largest truckmaker behind Daimler also announced a partnership with Samsung to develop battery packs for its electric trucks, its second big deal in recent weeks. The company, which joined forces with Nvidia Corp last month to develop artificial intelligence for self-driving trucks, is racing with rivals to develop autonomous and electric trucks.
Advanced Micro Devices (NASDAQ:AMD) is back at the highs. The AMD stock price cleared $33 last week, something it's managed to do a few times in the past year. Each time, those levels have proven to be bad news for Advanced Micro Devices stock.Source: Shutterstock AMD stock got there for the first time last September, reaching a 12-year high at the time. It immediately dipped. After two more tries, the chip sector as a whole collapsed. The AMD stock price went from $33 to $17 in a matter of weeks.AMD stock briefly touched $34 last month. It fell promptly declined 15% over the next five sessions.InvestorPlace - Stock Market News, Stock Advice & Trading TipsIt's pretty clear that levels around $33-$34 have proven to be resistance for the AMD stock price. The question now, particularly with Q2 earnings on the way in two weeks or so, is whether this time will be different. * 7 Dependable Dividend Stocks to Buy The Risks to the AMD Stock PriceThere are three reasons to see current levels as potentially risky for Advanced Micro Devices stock. The first is precisely that history, particularly in the context of chip stocks more broadly. Big earnings from Micron (NASDAQ:MU) have helped boost the sector in recent weeks, admittedly.But semiconductor stocks have seen quite a bit of volatility over the past year. Micron may have touted optimism - but Broadcom (NASDAQ:AVGO) did largely the opposite. Even before those reports, this has been a space where investors are best off zigging while the market zags, buying when sentiment turns sour and selling when optimism returns. That's held for AMD as well, obviously, given the stock has doubled from December lows.As such, resistance here may be firm. And that risk is buttressed by fundamental concerns. As I wrote last month, at those June highs, AMD stock isn't cheap. It trades at over 32x next year's consensus EPS. The average Wall Street price target still sits below the current price.Analysts don't always have it right, obviously (that's been particularly true in the chip space over the past eighteen months), but 32x is a big multiple for chip stock. Investors in Nvidia (NASDAQ:NVDA) learned what happens when an investor overpays for growth in such a cyclical industry. If only on a short-term basis, investors in Advanced Micro Devices have learned the same lesson a few times.And the third risk for AMD is the earnings report on the way, likely at or around the end of this month. Expectations clearly are high. AMD has stumbled after earnings in the past - most notably with a 22% decline after the Q3 report in October. AMD needs a big quarter to keep a repeat from occurring this time around. The Case for Advanced Micro Devices StockThe simple answer to all those worries is: so what? AMD stock has climbed the "wall of worry" for years now. After all, this was a $2 stock as recently as 2016, with real fears that the company might eventually declare bankruptcy.That's obviously no longer the case. AMD's new chips have made it a formidable competitor to Nvidia and Intel (NASDAQ:INTC). Intel's repeated mistakes only increase the possibility of more market share gains, more growth, and a higher AMD stock price. And those self-inflicted wounds at AMD's key competitor, along with reports of strong PC sales, suggest Q2 numbers will be impressive.Broadly speaking, this simply is a much better business than it was, and it's a really good business on its own. The "old" Advanced Micro Devices was a second-tier provider of chips for low-priced PCs. But it's now a more diversified player in terms of both PCs and growing end markets like data centers. AMD stock might not be cheap, but it shouldn't be cheap. The Bottom Line on Advanced Micro Devices StockBoth sides can make a strong case at the moment, which makes Q2 earnings particularly important. Technically and fundamentally, AMD stock is likely to move further in whatever direction it trades after the report.Big numbers lead to higher earnings estimates and likely a series of analyst upgrades that can further goose the stock. That, in turn, pushes AMD through resistance, which usually (though not always) triggers higher prices.Anything less, however, and history suggests Advanced Micro Devices stock could have a problem. We've seen AMD move from $33+ to under $30 in a blink. Bad news, or even an outlook that doesn't quite match currently optimistic expectations, could do the same, or worse.All told, I'd expect that a month or two out, AMD stock isn't trading at $33. But which way it moves will depend largely on what kind of story Advanced Micro Devices can tell with its second-quarter report.As of this writing, Vince Martin has no positions in any securities mentioned. More From InvestorPlace * 2 Toxic Pot Stocks You Should Avoid * 7 Dependable Dividend Stocks to Buy * 10 Stocks Driving the Market to All-Time Highs (And Why) * 7 Short Squeeze Stocks With Big Upside Potential The post Advanced Micro Devices Stock Could Be Set to Finally Bust Through appeared first on InvestorPlace.
There have been some stunning developments in the stock market recently. Last Wednesday, the S&P 500 broke above 3,000 -- 3,002.98, to be exact -- an historic new high. And then Thursday, the Dow cracked 27,000, a record-breaking all-time high, too.Source: FlickrThat's fantastic!Remember, just a few months ago the financial talking heads were giving all kinds of reasons to scare investors out of the market. The U.S.-China trade war … the (briefly) inverted yield curve … an earnings recession … All of which triggered an increase in market volatility and had investors running to the sidelines. But now, that fear of jumping in has been replaced with the fear of missing out, or as the younger folks like to say, "FOMO."InvestorPlace - Stock Market News, Stock Advice & Trading TipsNow, if you've been following me here or are subscribed to Growth Investor, then you know I've strongly encouraged folks to ignore the financial media and stay invested, even on the big market down days.Here are just a few examples …Back in early January, we saw some major market gyrations. Folks were nervous, but I knew that the foundation of the stock market remained quite healthy. You see, I saw that after the big selling a lot of buying pressure, or the "smart money," was emerging. Simply put, the smart money came to rescue the market. I encouraged my subscribers to buy the dip. As expected, the stock market proved to be very resilient. Both the S&P 500 and Dow ended the month up over 7%.We saw some more market oscillations in May when the U.S.-China trade wars and European Union (EU) elections triggered panic sell-offs. Again, I viewed the weakness as an incredible buying opportunity. I encouraged my subscribers to hold on and stay invested. By June, the market had rebounded strongly.In between the choppy market action, subscribers across all my services were still able to lock in stunning triple-digit gains in companies like NVIDIA (NASDAQ:NVDA) for a 274% return in January, a 115% profit in Worldpay (NYSE:WP) in March, a 150% gain in World Wrestling Entertainment, Inc. (NYSE:WWE) in May, a 122% return in Netflix, Inc. (NASDAQ:NFLX) in June and a hefty 211% return in IntriCon, Inc.(NASDAQ:IIN) in June, too.We did this by putting our emotions to the side and investing in companies with strong fundamentals, earnings and sales growth, rather than waiting for the market to turn around. The truth of the matter is it's nearly impossible to time the market bottom or top. So, you invest in the creme de la creme of stocks, as these companies will come out on top in the end. And that's exactly what we did.And now, here we are, with two major indexes sitting at record highs. When you tally up the numbers, this means that the S&P is up over 20% and the Dow is up over 15% since the opening bell rang in the New Year.The Rally Isn't Over YetHowever, I think this market rally is just getting started.There are two big positives that should continue to drive the broader market higher. July, overall, is historically a seasonally strong month -- and this year should be no different. Second-quarter results will start to be released around mid-month. And since the best quarterly results tend to be reported early in the season, we should see a nice boost to the stock market overall towards the end of July. So, the second half of July should benefit from wave-after-wave of positive earnings.A key interest rate cut by the Federal Reserve would also be a very good thing for the market. In last month's Federal Open Market Committee (FOMC) statement, the Fed removed the word "patient" and cited that slowing global growth is influencing the FOMC's interest rate decisions. I said last week that the Fed never fights market rates. So, as the Treasury yields collapse, the Fed has no choice but to slash key interest rates. This is an ideal environment for stock appreciation.Consider this: Due to falling Treasury yields, the average median forecasted price-to-earnings (P/E) ratio for the S&P 500 could expand from 15.5 to 20, or higher. So, when you couple falling interest rates with the fact that major central banks like the European Central Bank (ECB) and Federal Reserve will be cutting key interest rates, then it is very possible that the S&P could appreciate another 30% on the recent global interest rate collapse.Bottom line: There's a lot of potential upside in the current market environment. So if you haven't invested yet, then I strongly encourage you begin investing now so you don't miss out on the big gains ahead.If you're not sure where to get started, I recommend checking out Growth Investor. I recently recommended a new stock and released my fresh list of Top 5 Stocks, all of which are great places to park new money. You can sign up here.I also have three special reports for you, which are yours -- free of charge if you sign up now. They go in-depth on three of the hottest sectors set to explode: artificial intelligence (AI), cybersecurity and the 5G revolution. And I give you my number-one pick for each space, too. I don't want you to miss out on these profitable trends, so click here to get your free reports today.Louis Navellier is a renowned growth investor. He is the editor of four investing newsletters: Growth Investor, Breakthrough Stocks, Accelerated Profits and Platinum Growth. His most popular service, Growth Investor, has a track record of beating the market 3:1 over the last 14 years. He uses a combination of quantitative and fundamental analysis to identify market-beating stocks. Mr. Navellier has made his proven formula accessible to investors via his free, online stock rating tool, PortfolioGrader.com. Louis Navellier may hold some of the aforementioned securities in one or more of his newsletters. More From InvestorPlace * 4 Top American Penny Pot Stocks (Buy Before June 21) * 7 Stocks to Buy that Lost 10% Last Week * Top 7 Dow Jones Stocks of 2019 -- So Far * 5 Service Stocks That Can Win the Trade War -- According to Goldman Sachs The post Don't Miss Out on the Next Big Stock Market Rally appeared first on InvestorPlace.
Wall Street loves turnaround stories. Over the years, investors in Advanced Micro Devices (NASDAQ:AMD) stock have been delighted with the price performance of their shares. I'm going to discuss the short- and long-term outlook of AMD stock, one of the darlings of Wall Street in 2019.Source: Shutterstock AMD stock is expected to report Q2 earnings on July 24. Year-to-date, the Santa Clara-based chip designer is up about 93%. Long-term, I believe AMD stock price is going to rise much more. However, in the short-term, as AMD stock and its peers get ready to release quarterly results, there could be increased volatility in the markets. * 7 Dependable Dividend Stocks to Buy I would encourage long-term investors to wait several weeks before buying AMD stock or hedge their positions if they currently own the stock.InvestorPlace - Stock Market News, Stock Advice & Trading Tips What to Expect From AMD Stock EarningsWhen AMD releases earnings in late July, Wall Street will pay attention to two segments: * Computing and Graphics and * Enterprise, Embedded and Semi-CustomOn April 30, Advanced Micro Devices reported its Q1 2019 earnings. Its profit of 6 cents per share came in slightly ahead of analysts' consensus outlook. In its Computing and Graphics segment, AMD's revenue tumbled 26% year-over-year (YoY) to $831 million. In the Enterprise, Embedded and Semi-Custom segment, its revenue fell 17% YoY to $441 million.Overall many analysts saw the Q1 earnings report as a sign that AMD is executing its strategic plans well. In the current quarter, AMD management expects its revenue to be about $1.52 billion, a decrease of approximately 13% YoY.Since late 2014, under the leadership of CEO Lisa Su, revenue has gone up and the company has been improving its balance sheet. Its debt has reduced and investors are hopeful that AMD stock can see positive cash flow soon. Over the next five years, analysts expect AMD to grow earnings by about 30% annually.As new frontiers in technology, such as the internet of things (IoT), artificial intelligence (AI), autonomous driving, and 5G are being developed, I am bullish on the future of Advanced Micro Devices, which has been quite successful in recent years. As a result, I am also upbeat on the long-term outlook of AMD stock.Yet, recent positive news from Advanced Micro Devices stock's earnings and its clients have been factored into AMD stock price. Until AMD's next earnings announcement, its stock is likely to become a battleground between long-term investors and short-term traders.AMD has a history of reporting mixed results. Therefore Wall Street is likely to be cautious going into earnings. AMD Stock Is Catching up With Its Main CompetitorsUntil 2019, Advanced Micro devices has mostly played catch-up with Nvidia (NASDAQ:NVDA) and Intel (NASDAQ:INTC). The market cap for NVDA and INTC stocks are $101 billion and $223 billion respectively. AMD stock's market cap stands at $37 billion.Nvidia has dominance in graphics processing units (GPUs) while Intel has been a leader in central processing units (CPUs), the computing engine of most computers and data centers. Graphics processing units accelerate central processing units, boosting the performance of video and graphics and improving computers' overall performance.In May, the U.S. Department of Energy announced that AMD and Cray (NASDAQ:CRAY) had been awarded a $600 million contract to develop the 'Frontier' supercomputer. Expected to become the world's fastest computer, Frontier will perform advanced calculations in areas like nuclear and climate research.The supercomputer will use AMD's EPYC CPUs, each of which will be connected to four of the company's Radeon Instinct GPUs. This important deal confirms that AMD is now a recognized industry leader. In other words, AMD has a roadmap to compete with Intel's dominant CPUs and Nvidia in the graphics-card space.In Q3 AMD is expected to start selling its 7-nanometer (nm) chips, rivaling Intel's 10nm, which will not be sold until the end of the year. With these smaller and more power-efficient chips, AMD is aiming to take market share from Intel, especially in data center business.As AMD launches its Navi graphics cards in Q3 featuring the company's 7-nanometer chips, management is confident that it will take GPU market share in the gaming segment from Nvidia.In short, Advanced Micro Devices has taken important steps to make the fundamental metrics of the company stronger and to catch up with its main competitors. What Could Derail AMD Stock Short-Term?Wall Street has recently been debating whether the semiconductor industry, which is highly competitive and cyclical, has entered a prolonged downturn. Could these chip stocks have reached their 2019 highs in the eyes of investors?For long-term investors, such gyrations in the sector are nothing new. Yet, in the coming weeks when many chip companies announce their earnings one after the other, any potential weak guidance that may be issued could lead investors to become bearish on semiconductor stocks.Wall Street is nervous that chip companies' upcoming results will be mixed. Analysts follow AMD's gross margin levels closely. The company expects its Q2 gross margin to be 41%, the highest in eight years. Therefore, any unexpected dip in the margin could easily push AMD stock price south.China is the leading consumer of semiconductors (more than 50%). On the other hand, U.S. chip companies lead the world with a combined global market share of nearly 50%. Furthermore, many technology companies either have manufacturing plants in China or use Chinese companies in their supply chains. Therefore, Wall Street fears that U.S. chip makers will be among the largest losers of the current trade war.Furthermore, analysts are debating whether Advanced Micro Devices stock is becoming overvalued. For example, its forward price-to-earnings-growth (PEG) ratio is about 2x. Similarly, AMD stocks's price-sales (P/S) ratio of about 6x is also quite high. To put the metric into perspective, the S&P 500's average price-sales ratio is 2.1. Should Investors Buy AMD Stock Prior to Earnings?As a result of the impressive run-up in AMD stock price in 2019, its short-term technical indicators have become quite "overbought." In June, in addition to the broader market rally, AMD stock got an analyst upgrade that gave a big boost to its price.If you are an investor who follows technical charts, AMD stock has strong resistance around the $34 level, where the stock is about to make a triple top. Therefore, if it cannot go and stay over $35 soon, some profit-taking is likely to occur.Because AMD is a momentum leader stock, investors should expect sizable daily swings in the AMD stock price. Technically AMD stock is known to make a series of rallies and consolidations. We can expect this trend to continue in July and August, too.If you already own Advanced Micro Devices stock, you might want to stay the course and hold onto your position. That said, if you are worried about short-term profit taking, then within the parameters of your portfolio allocation and risk/return profile, you may consider placing a stop loss at about 3%-5% below the current price point, to protect the profits you have already made from AMD stock.If you are an experienced investor in the options market, you may also consider using an Aug. 16 expiry at-the-money (ATM) covered call strategy. In that case, you may, for example, buy 100 shares of AMD at a limit price of $33 and sell an AMD Aug. 16 $33 call option, which currently trades at $2.4.The $33 option offers some downside protection in case of volatility and a decline of AMD stock price. It would also enable investors to participate in a potential up move. This call option would stop trading on Aug. 16 and expire on Aug. 17.I find AMD stock to be a buy candidate, especially as its price declines below $30. In a few years, I'd expect the shares to reach $40.As of this writing, the author holds INTC covered calls (July 19 expiry). More From InvestorPlace * 2 Toxic Pot Stocks You Should Avoid * 7 Dependable Dividend Stocks to Buy * 10 Stocks Driving the Market to All-Time Highs (And Why) * 7 Short Squeeze Stocks With Big Upside Potential The post Can AMD Stock Jump Higher on Q2 Earnings? appeared first on InvestorPlace.