Recession = a fuel for a rally?

Join TradeAlgo's Free Live Trading Session ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ [EARN WHILE YOU LEARN! JOIN OUR FREE LIVE TRADING SESSION!]( Hello investor, Recession = a fuel for a rally? The S&P 500 is now on a minor losing streak. Yesterday, the index posted its third down trading day in a row. The losses have been minor, though. The S&P 500 is on pace to finish the month (and the quarter) in the positive territory. If everything holds, the S&P 500 would have posted a 9.1% gain for the quarter. Looking at this differently, the index would have posted about 36% for the year if the pace was the same for all quarters. So, it has been an incredible quarter for the stock market. Maybe a pullback could come soon, but Robert Schein at Blanke Schein Wealth Management remains bullish on stocks over the long term: - “Valuations could take us back to, sort of, reality,” said Robert Schein, chief investment officer at Blanke Schein Wealth Management. But, “long term, this rally has legs and there’s a lot of momentum because of liquidity.” Robert Schein, chief investment officer at Blanke Schein Wealth Management (Photo: CNBC) Piper Sandler wrote that the biggest catalyst for the next leg in the rally might be rate cuts. Meaning? Any signs of a slowing economy could be positive since it may accelerate the Fed Reserve’s rate cut timeline. Rate cuts, of course, can be considered as a stimulant to corporate earnings. If the economy remains strong, the central bank may hold off on rate cuts. It could make it harder for companies to post strong earnings growth to justify lofty valuations. - “We believe stocks will rally on rising recession risks (i.e., softer macro data) — certainly an unusual take!” the investment firm wrote. “We remain constructive with the view that lower rates from softer macro data will set up stocks for another leg higher in the coming quarters.” Today’s catalyst is limited to Federal Reserve Governor Christopher Waller’s speech due tonight. No key economic data is due today. The fresh inflation reading will be out on Friday. The market will be closed on Friday, so any reaction to the inflation data will occur on Monday. Top High-Growth Stock To Buy Right Now Today’s Stock Pick: Wingstop Inc. ([WING]( The best thing about the franchise model is predictability. Once a restaurant brand can validate its demand in one region, it can scale up rapidly to other regions with similar demographics. Better yet, it keeps the brand asset light. And you can’t find a better brand than Wing Stop. Its growth momentum is incredible. The brand had a system-wide sales 5-year CAGR of 19.3%. At the same time, it developed new restaurants at a pace of 11.6% CAGR during the same period. Lastly, its adjusted EBITDA compounded annually for a 21.8% five-year CAGR. (Source: Wing Stop) This number easily blew out all other top franchise brands – including Chipotle, Domino’s, McDonald’s, and Starbucks: (Source: Wing Stop) Do you know what’s even more incredible? Its average unit volume per comparable restaurant exploded by 76% since 2012! Yes, that’s right. While Wing Stop was growing its total restaurant count, its same-store also increased volume. Solid business model: A franchisee would get an attractive return that would start turning profits on its initial investment in less than two years. The owner can expect an unlevered cash-on-cash return of 70%+ in the first year. (Source: Wing Stop) Immense expansion potential: Right now, Wing Stop has about 1,791 restaurants. It forecasts the potential to be at 7,000+ restaurants in the global market. The domestic market hasn’t been maxed out as it still has more than 50% remaining markets to tap into. Assuming that Wing Stop reaches its goal of 7,000 restaurants, that would be 3.9 times bigger than its current size. (Source: Wing Stop) The future would be more of the same: In Wing Stop’s case, you want more of the same. The company projects its annual unit growth to continue above 10%+. This would bring a powerful combination with its forecast of mid-single digit same-store sales growth. (Source: Wing Stop) Bottom line: Wing Stop has cracked the “growth algorithm,” and it has a clear roadmap to continue its sensational earnings growth. If you are looking to add a growth stock while the market is down, look no further than Wing Stop. [EARN WHILE YOU LEARN! JOIN OUR FREE LIVE TRADING SESSION!](       © All Rights Reserved, Trade Alliance [Unsubscribe]( | [Manage Preferences](