In this edition, European interest-rate cuts on the horizon; firm opportunities among drug and biopharma firms; and reports Tesla's affordable vehicle will be canceled; and Lazard, PVH, and Genmab.

This pick list highlights constituents of the Morningstar US Large Cap Index that we believe offer investors the best risk-adjusted return prospects. Stocks of large-cap companies where neither growth nor value characteristics predominate. Stocks in the top 70% of the capitalization of the U.S. equity market are defined as large cap.

This pick list highlights constituents of the Morningstar US Large Cap Index that we believe offer investors the best risk-adjusted return prospects. Stocks of large-cap companies where neither growth nor value characteristics predominate. Stocks in the top 70% of the capitalization of the U.S. equity market are defined as large cap.

In this edition, we explore the state of US auto market; margin of safety erased in US equity market rally; growing pains and growth in US equity market; and EOG Resources, Alnylam, and Pembina.

This pick list highlights constituents of the Morningstar US Large Cap Index that we believe offer investors the best risk-adjusted return prospects. Stocks of large-cap companies where neither growth nor value characteristics predominate. Stocks in the top 70% of the capitalization of the U.S. equity market are defined as large cap.

The Portfolio Selector features the Argus Focus List, a group of 30 "best idea" stocks generated and regularly updated by Argus' analysts and investment policy committee. It also includes the director of research’s monthly investment strategy column, stock recommendations and sector picks, economic forecasts, and an asset allocation model. This month, the Focus List additions are Dell Technologies Inc (DELL); Autozone Inc. (AZO); Pinterest Inc (PINS); Oshkosh Corp (OSK) and the Focus List deletions are MongoDB Inc (MDB); Old Dominion Freight Line, Inc (ODFL); Tesla Inc (TSLA); Twilio Inc (TWLO).

Stocks are higher at midday, this after weakness earlier in the session that was mostly the result of disappointing guidance from the likes of Intel and KLA Corp. That said, December's headline Personal Consumption Expenditures price index appears to have resonated with investors who seem to be increasingly of the opinion that the Fed has indeed set the stage for a soft landing of the U.S. economy. PCE rose 0.2%, following a 0.1% decline in November and leaving annual PCE unchanged at 2.6%. Core PCE also rose 0.2%, up from 0.1% in November and bringing the annual rate to 2.9% from 3.0% last month. Elsewhere, Personal Spending rose 0.7%, which was higher than the expected increase of 0.5%. Personal Income drifted lower, rising 0.3% to match expectations but down from 0.4% in November. As well, solid earnings from American Express and Colgate-Palmolive are adding to a positive mood as the trading week draws to a close.

Here is the list of the Top Picks for 2024 from the Argus team of analysts. The team is deeply experienced, as each analyst has spent ,on average, 25 years on Wall Street and 15 years at Argus Research. As such, our analysts are extremely well-versed in our proprietary fundamental six-point system and the sectors they cover. They also have solid relationships with many of the management teams they cover. But they do not operate in a vacuum. An Investment Policy Committee (IPC) comprised of Director of Research Jim Kelleher, CFA; President John Eade; Chief Compliance Officer & Senior Financial Analyst Kevin Heal; and Director of Financial Institutions Research Steve Biggar provide macro outlooks for the economy, interest rates, earnings, and the stock market. The IPC reviews all proposed ratings changes. Our list below is organized by sector.

This pick list highlights constituents of the Morningstar US Large Cap Index that we believe offer investors the best risk-adjusted return prospects. Stocks of large-cap companies where neither growth nor value characteristics predominate. Stocks in the top 70% of the capitalization of the U.S. equity market are defined as large cap.

U.S. equites finished lower on Thursday while Treasury yields rose as investors digested comments by Fed Chair Powell. Mr. Powell warned that the central bank may need to hike rates as inflation is still too high but 'the committee is proceeding carefully,' hinting that rates could hold steady in November. The 10-year Treasury yield reached 5% for the first time since 2007. The S&P 500 closed 0.9% lower, the Dow was down 0.8% and the Nasdaq lost nearly 1%. Crude oil rose above $90 per barrel and gold was up to $1985 per ounce.

It is arguable that the stock market had every reason to break down on Friday after the unexpectedly robust September jobs report, which initially sent stock futures lower and bond yields to new recovery highs. But following the initial panic, investors noticed that the report showed that the trend in wage growth continued to soften -- and once the algorithmic selling on the initial number played out, cooler heads prevailed. The S&P 500 (SPX) ended up 1.2%, the Nasdaq added 1.6%, and the Nasdaq 100 (QQQ) rose 1.7% as Treasury yields retreated for the rest of the session.

In this edition, global EV adoption rate to rise; patience will be rewarded for U.S. REIT investors; key takeaways from renewable energy conference; and Fortrea Holdings, Apple, and Bristol-Myers Squibb.

August has been rough for stocks. The markets are down from their highs, although the year overall has been upbeat for stocks -- especially compared to a dismal 2022. The continued stress on the economy from higher interest rates, and questions about whether the Federal Reserve is done raising them, have weighed on valuations. Most economists are not convinced that the recession question has been answered. While there are strengths in the economy -- like the labor market and consumer spending -- inflation indicators inched up last month. The uncertain environment has impacted small-caps, mid-caps, large-caps, and even mega-caps. There is a wide range in data that shows how sectors are weathering this climate, with Communication Services up nearly 40% year-to-date but Consumer Staples down 2% for the same time period. In our opinion, some solid companies with strong financials have been oversold. For our list this week, we identified 10 BUY-rated large- or mega-cap companies across numerous industries that are selling at attractive valuations (more than 20% below their 52-week highs). They are listed according to company size, with the largest first.

The Federal Reserve's favorite inflation indicator, the PCE Price Index, provided stocks with fuel for a rally last week. The index differs from the better-known Consumer Price Index in that its composition changes more frequently and the index is thus quicker to reflect real-time price fluctuations. In the most recent report, June PCE inflation was 3.0% (the June CPI report had inflation at 4.0%). Core PCE, which removes food and energy prices, was 4.1% in June, down from 4.7%. Inflation seemingly peaked last summer and continues to decline, though the rate of decline may slow in the months ahead. We track 21 inflation measures on a monthly basis. On average, they are indicating that prices are rising at a 2.5% rate year-over-year, down from 3.1% a month ago. The numbers could be distorted greatly by the sharp decline in Producer Price Intermediate Goods, which are falling at a 32% rate and likely point to easing prices across the inflation spectrum in the months ahead. Focusing on core inflation -- which we obtain by averaging Core CPI, market-based PCE Ex-Food & Energy, the core GDP PCE Price Index, the five-year Forward Inflation Expectation Rate, and the 10-year TIPs Break-even Interest Rate -- our reading is 3.3%, down 60 basis points month-over-month. That's higher largely because sticky prices at the other end of the spectrum (like shelter and transportation) remain elevated: the Sticky Price Core CPI Index is currently 5.8%. Investors are expecting that the Fed's series of rate hikes ultimately will tame inflation, with the five-year Forward Inflation Expectation Rate at 2.5%.

Stocks were mixed on Thursday morning following earnings reports from Netflix, Tesla, and Johnson & Johnson. Netflix reported strong subscriber growth in 2Q, though revenue disappointed. The company also projected below-consensus revenue in 3Q, sending the shares lower. Tesla shares also fell sharply, despite better-than-expected earnings, after the company warned of further price cuts on its electric vehicles. On the positive side, Johnson & Johnson rose after posting stronger-than-expected 2Q results and raising its full-year EPS guidance. The Dow rose 0.6%, the S&P fell 0.4%, and the Nasdaq fell 1.3%. Crude oil rose slightly to $75.50 per barrel, while gold traded near $1973 per ounce.

Argus has published its latest Portfolio Selector, which features its popular Focus List. Each month, Director of Research Jim Kelleher, CFA, surveys the team of Argus Research industry analysts for their timeliest recommendations out of the company's fundamental universe of approximately 500 stocks. The Focus List typically includes 30 stocks: turnover is high, as Jim typically adds three or four new stocks per month. Below are the latest additions, all of which are rated BUY at Argus.

The Portfolio Selector features the Argus Focus List, a group of 30 "best idea" stocks generated and regularly updated by Argus' analysts and investment policy committee. It also includes the director of research’s monthly investment strategy column, stock recommendations and sector picks, economic forecasts, and an asset allocation model. This month, the Focus List additions are Tesla Inc (TSLA); Walmart Inc (WMT); Merck & Co Inc (MRK); Adobe Inc (ADBE) and the Focus List deletions are DraftKings Inc. (DKNG); Dell Technologies Inc (DELL); Thermo Fisher Scientific Inc. (TMO); Coca-Cola Co (KO).

U.S. Equities were down on Thursday morning. Existing home sales fell 2.4% in March to a seasonally adjusted annual rate of 4.44 million. The median existing-home sales price fell 0.9% year-over-year to $375,700. The Labor Department reported that first-time jobless claims rose to 245,000 from 240,000 last week. On the earnings front, Tesla stock fell after the company cut prices. The Dow fell 0.2%, the S&P slipped 0.5%, and the Nasdaq was down 0.6%. Crude oil traded near $77 per barrel while gold rose $8 to $2015 per ounce.

In 1Q23, stocks continued to recover from the bear-market lows of 2022, with the S&P 500 rising 7% for the quarter. Performance was led by last year's laggard sectors, including Communication Services and Technology. Last year's top-performing sector, Energy, was the worst in 1Q23. Financial Services, including banks, were not far ahead. The average stock in the Argus Universe of Coverage rose 4% in the quarter; the median stock advanced 2%. The average BUY-rated stock rose 5.4% and the average HOLD-rated stock gained 3.4%. Recently, we raised our sector rating on Technology to Over-Weight, and expect outperformance into 2Q -- especially if interest rates head lower. We also raised our rating on Financial Services, and the bottom five stocks in our list point to potential value opportunities.

In this edition, Moats, Motors, and Markets 2023; Housing Spending Slowdown Tempers Wayfair's Progress to Profitability; and Tesla Faces Future; and Bank of Montreal, Taylor Wimpey, and LPL Financial

Vickers Stock Research, a subsidiary of The Argus Research Group, tracks and analyzes insider trading and institutional stock ownership trends. Form 13-Fs, which institutions must file to report their holdings, are due 45 days after the end of calendar quarters, and have now come in for 4Q22. We like to review the 13Fs of the major activist investors, including Carl Icahn, Trian Fund Management, Jana Partners, and ValueAct Holdings, among others, in order to determine their core holdings and new purchases. Activist investing has evolved in recent years and is now less about generating a short-term return on an underpriced stock and more about achieving long-term returns through an active management/investor partnership. Activists have made progress in the past quarter with high-profile investments into blue-chip companies such as Walt Disney and Salesforce. Based on data from Vickers, here are some recent new purchases and key holdings of activist investors, as well as other high-profile money managers such as Warren Buffet of Berkshire Hathaway and Ken Griffin of Citadel Advisors LLC.

Stocks rose strongly on Thursday as investors weighed more 4Q earnings reports and new GDP and employment data. The Commerce Department said that the U.S. economy expanded at a 2.9% rate in 4Q, helped by significant growth in inventories. The reading was above the consensus estimate of 2.6% growth, though down from 3.2% in the third quarter. On the employment front, first-time claims for state unemployment benefits fell by 6,000 to 186,000 for the week ended January 14. The Dow rose 0.61%, the S&P 1.10%, and the Nasdaq 1.76%. Crude oil traded near $81 per barrel, while gold fell to $1930 per ounce.

In this edition, Manulife Financial Gets a Second Life, Happy New Year for MSC, Tesla's FVE Trimmed, and Constellation Brands, Ambev, and Simon Property Group

Each December, Argus surveys its team of analysts, seeking their best ideas for the upcoming year. The Argus Research team draws on its experience (the average analyst has 18 years of Wall Street experience and 10 year at Argus), as well as the company's proprietary six-point research framework and earnings and valuation models to make the calls. Argus analysts cover the waterfront (every sector from Energy to Healthcare to Consumer to Technology), so each sector is represented. This year's list includes some long-time favorites, as well as some recent upgrades and new initiations. The list includes mostly large-caps and mid-caps, and both growth and value stocks. We will be going over the list in more detail during our January webinar and detailing why each stock has been selected by the covering analyst. In the interim, more information on each of these BUY-rated stocks is available on our website.

In this edition, E&C Firms Building Bridges, Culture Differentiates Danaher, U.S. Cannabis Prohibition Set to Ease, and Tesla, Fortune Brands Home & Security, and Veeva Systems Class A

In this edition, E&C Firms Building Bridges, Culture Differentiates Danaher, U.S. Cannabis Prohibition Set to Ease, and Tesla, Fortune Brands Home & Security, and Veeva Systems Class A

Both the potential onset of recession (if the economy is not in one already) and the sharp move higher in interest rates have pulled the foundation out from under the equity market in 2022. Few sectors have been spared, with only the Energy industry in the green on a year-to-date basis. The broad retrenchment has dragged down small-caps, mid-caps, large-caps, and even the mega-caps that had previously pushed stocks to new heights as the economy recovered from the pandemic. In our opinion, some of these world-class companies have been oversold. For our list this week, we have identified 11 BUY-rated large- or mega-cap companies across numerous industries that are selling at attractive valuations and are more than 20% below their 52-week highs.

Stocks finished lower on Thursday after giving up early gains, as investors weighed mixed earnings reports along with new employment and housing market data. First-time claims for state unemployment benefits fell by 12,000 to 214,000 for the week ended October 15, below the Bloomberg consensus forecast of 230,000. Continuing claims rose by 21,000 to 1.385 million. On the housing front, existing home sales fell 1.5% in September to an annualized 4.71 million units, slightly above the consensus estimate. The Dow fell 0.30%, the S&P 0.80%, and the Nasdaq 0.61%. Crude oil rose to $86 per barrel, while gold fell slightly to $1633 per ounce.

The Vickers Top Buyers & Sellers is a daily report that identifies the five companies the largest insider purchase transactions based on the dollar value of the transactions as well as the five companies the largest insider sales transactions based on the dollar value of the transactions.

Stocks fell sharply on Friday morning after Fed Chair Jerome Powell said that the central bank would continue to raise interest rates, and keep them elevated, to prevent inflation from becoming entrenched. He also acknowledged that rate hikes would come at a cost to the American economy. Mr. Powell's speech overshadowed positive inflation data. The Commerce Department said that personal consumption expenditures fell 0.1% month-over-month in July, down from 1.0% growth in June. The core PCE, excluding food and energy, rose 0.1%, slowing from 0.6% a month earlier. The Dow fell 1.7%, the S&P 2.0%, and the Nasdaq 2.7%. Crude oil fell slightly to $92 per barrel, while gold dropped $23 to $1749 per ounce.

Last week was the busiest of the quarter for earnings, with many sharp stock-price moves following above- or below-consensus results or changes in guidance. Through July 26, Refinitiv noted that 133 S&P 500 companies had reported earnings, with 76% beating expectations, above the long-term average of 66%. The blended (actual for those reporting and consensus for those still to report) growth rate is 6.2%, near the 5.6% expectation and indicating the "beats" have not been robust. But the sour mood coming into the quarter is being greeted with relief that profit shortfalls and lowered guidance are not rampant. Our analysts always look for companies that boost outlooks during earnings season. Raising guidance can be a catalyst for strong returns in the quarters ahead. Here is an initial list of BUY-rated companies in Argus coverage with raised guidance or increased outlooks during the 2Q22 EPS reporting season.

Earnings from major companies will continue on Friday, with 2Q reports from Twitter, Verizon, and Schlumberger. On Thursday, stocks extended their winning streak, with strong gains in the Consumer Discretionary and Healthcare sectors. Tesla shares rose nearly 10% following strong 2Q results, while AT&T fell more than 7%, despite above-consensus earnings, after management lowered its free cash flow guidance. On the employment front, first-time claims for state unemployment benefits rose to 251,000 for the week ended July 16, up from 244,000 a week earlier and above the Bloomberg consensus estimate. The Dow rose 0.51%, the S&P 0.99%, and the Nasdaq 1.36%. Crude oil fell more than 3% to $96.50 per barrel, while gold rose 1% to $1718 per ounce.

Stocks fell sharply on Thursday afternoon, giving up early gains after Fed officials raised prospects for more aggressive 50-basis-point rate hikes beginning next month. On the earnings front, automaker Tesla and American Airlines posted stronger-than-expected results. Weekly employment data was generally positive. The Labor Department said that first-time claims for state unemployment benefits fell to 184,000 for the week ended April 16, down from 186,000 a week earlier but above the Bloomberg consensus of 180,000. Continuing claims fell to 1.417 million from 1.475 million a week earlier and were below the consensus estimate. The Dow fell 1.05%, the S&P 1.48%, and the Nasdaq 2.07%. Crude oil traded near $104 per barrel, while gold fell $2 to $1954 per ounce.