Pay attention to THIS catalyst for the upcoming week

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JOIN OUR FREE LIVE TRADING SESSION!]( Hello investor, Pay attention to THIS catalyst for the upcoming week Last week was a tough one for the markets, as the Dow Jones Industrial Average was down by 2.3% last week for the worst weekly performance since March 2023. Last Friday’s jobs report came in better than expected. Wall Street was unsure what to do about it. A strong labor market is an indicator of a robust economy. When people have jobs (and can find them easily), they are more likely to spend to support economic growth. Generally, it leads to strong earnings growth. At the same time, it could mean the central bank will keep interest rates higher for longer. Fed officials wouldn’t dare to risk aggravating inflation if they cut rates while the economy is heating up on its own. And of course, recent inflation data showed some signs of stickiness. - “Jobs and wages are rising solidly and aggregate payrolls are outpacing inflation, which will keep Americans spending in 2024 and powering the economy forward,” said Bill Adams, chief economist at Comerica Bank. Bill Adams, chief economist at Comerica Bank (Photo: Comerica Bank) We will get a new inflation reading this week. March consumer and producer price indexes will be released later this week. The CPI is due on Wednesday, and economists expect it to rise by 0.3% last month and 3.5% year over year. It will be critical for the CPI not to come in above the expectations. - “The Fed seems unbothered by robust employment gains ... Inflation though is a bigger issue, and it’s imperative that the Mar price data (CPI, PPI, PCE) show the disinflationary process getting back on track,” Adam Crisafulli, founder of Vital Knowledge, said in a note. Wall Street now expects the first rate cut to happen in September — rather than its original bet of a June rate cut. “The tailwind from easing financial conditions is overwhelming and neutralizing the rate hikes from last year,” said Torsten Slok, the Apollo Global Management economist. “It’s not surprising that the economy is re-accelerating and, therefore, rates will have to stay higher.” The earnings season is approaching, so this week will likely focus on inflation readings before investors shift their attention to the earnings season. These two catalysts may play a large role in determining the market’s future direction. The World’s Most Expensive Eggs Are A Screaming Buy Today’s Pick: Vital Farms, Inc. (VITL) I am sure that you’ve seen Vital Farms’ eggs. They are the priciest eggs you can find in a grocery store. Their eggs often cost two times more than regular eggs. Why? Their chickens are pasture-raised which offers an ethically-sourced and healthiest eggs you can find. The company was founded in 2007, but it has exploded to become a national consumer brand. It works with over 300 family farms and is the leading U.S. brand for pasture-raised eggs by retail dollar sales. They also offer butter, hard-boiled eggs, and liquid whole eggs. (Source: Vital Farms) The #1 catalyst behind Vital Farms’ growth is the changing view on caged eggs. 10 states have passed legislation to remove caged eggs. Three more states have legislation in progress. (Source: Vital Farms) All of this plays right into Vital Farms’ hands. The company has a powerful brand awareness and loyalty. Its recent research found that 36% of Vital Farms shoppers will skip buying eggs if the grocery store doesn’t carry Vital Farms’ brand. (Source: Vital Farms) This is even though Vital Farms has a $4.87 price gap between its eggs and conventional eggs. Even it has $1.94 premium over its peer group’s eggs. In other words, Vital Farms can get away with charging higher prices, creating an enviable business model. (Source: Vital Farms) Moreover, Vital Farms customers are spending more dollars with the company. In just three years, customers spent 51% more on the company’s shell eggs. Some of it may be due to inflation, but it demonstrates the pricing power Vital Farms holds. (Source: Vital Farms) Naturally, it leads to strong revenue growth over the years. It is easy to grow revenues when inflation has led to higher egg prices. That’s true. Regardless, the company has proved to expand its brand loyalty while penetrating new households who are learning about Vital Farms. (Source: Vital Farms) 2024 will be another good year if Vital Farms achieves its guidance. It expects over 17% net revenue growth. Its adjusted EBITDA is expected at more than $57 million — or about 5% of its market cap. Bottom line: Vital Farms is trading at a $1.06 billion market cap which looks insanely cheap when we consider its powerful brand. Its product lines are small. With a strong brand, it can easily expand to other products that will fuel its revenue growth for many years to come. This is potentially a blockbuster stock to own for years. [EARN WHILE YOU LEARN! JOIN OUR FREE LIVE TRADING SESSION!](       © All Rights Reserved, Trade Alliance [Unsubscribe]( | [Manage Preferences](