Stocks to be quiet until Friday?

Earn While You Learn! ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ [EARN WHILE YOU LEARN! JOIN OUR FREE LIVE TRADING SESSION!]( Hello investor, Stocks to be quiet until Friday? Traders shouldn’t expect much volatility this week until Friday. Fed Chair Jerome Powell will make his big-time speech at Jackson Hole this Friday, and Wall Street expects him to green-light an interest rate cut during the Fed’s September meeting. So, traders are likely to hold back big bets until that speech. However, Powell isn’t expected to confirm the rate cut. He likes to keep his options open (especially before the next CPI and jobs data), so he might hint at a rate cut but refuse to commit to it. - “Financial markets will be sensitive to his every word,” Commonwealth Bank of Australia strategists led by Joseph Capurso wrote in a note. “We expect Powell to green light a cut on 19 September, but we expect Powell to retain optionality for delayed cuts or larger cuts subject to the next CPI and payrolls.” Eric Beiley at Steward Partners Global Advisory believes stocks could rally if Powell convinces Wall Street that a rate cut is coming. Otherwise, there might be a sell-off. - “If traders hear cuts are coming, stocks will react favorably,” said Eric Beiley, executive managing director of wealth management at Steward Partners Global Advisory. “If we don’t hear what we want, that would trigger a big selloff.” Eric Beiley, executive managing director of wealth management at Steward Partners Global Advisory (Photo: The Beiley Group) During the weekend, Goldman Sachs cut the probability of a US recession in 2025 to 20% from 25%. Strong readings from last week’s retail sales and jobless claims data bolstered the bank’s confidence that the economy might avoid a recession. What’s more, the bank said if the August jobs report due on Sept. 6 “looks reasonably good, we would probably cut our recession probability back to 15%,” Goldman economists led by Jan Hatzius wrote. There are two wildcards that could spark volatility this week — Kamala Harris’s speech when she is confirmed as the Democratic Party’s nominee at its convention in Chicago. Secondly, there’s a potential for an escalation in the Middle East conflict while the Russia-Ukraine war is heating up. - “How markets trade the stock markets around another ‘quiet’ week for data, filled with more central bank decisions and guidance will be important in setting up the tone for a more hectic month end,” said Bob Savage, head of markets strategy and insights at BNY. - “Further, expect the week ahead to be dominated by the unknowns of politics and geopolitics.” 1 Unstoppable Growth Stock to Own for the Next Decade Today’s Stock Pick: Driven Brands Holdings Inc. (DRVN) What a business Driven is! I will share some metrics that will blow your mind. Driven operates in a very, very simple industry with outrageously high margins. Driven is the largest automotive services company in North America. It offers three key segments – oil change, repair shop, and car wash. Its total addressable market is massive, over $390 billion, and growing. Yet, Driven only has less than 5% share in this highly fragmented industry. The CEO described Driven in two words: Cash and growth. Driven Brands CEO Jonathan Fitzpatrick (Photo: MELISSA KEY/CBJ) He (rightly so) repeated this mantra throughout earnings calls. Why? The company truly defines this mantra. It spits out cash, and the growth has been tremendous. The growth game plan is (1) franchise, (2) build a company-owned store, or (3) buy a business. With that model, Driven has delivered an astonishing growth number, delivering a 32% revenue CAGR since 2023: (Source: Driven Brands) Driven is in an early stage of its growth, as it just added a Glass business in 2019 and a Car Wash business in 2020: (Source: Driven Brands) Want to know how good is a car wash business? You wouldn’t believe it! A car wash shop delivers a 39% cash-on-cash return on a $1 million initial investment. That’s an annual return. The EBITDA margin is at 37%. The economies are incredible, and you’d own a piece of it through Driven Brands. - “…we love the car wash business for its simple operating model, efficient labor model, subscription revenue stream, strong returns on capital and white space for unit growth,” said CEO Jonathan Fitzpatrick. (Source: Driven Brands) Profitable in all economic cycles: Driven provides needs-based services. Maintaining an automobile is nondiscretionary. You need to drive around, even if it’s during a recession. So, Driven has a good pricing power that can insulate from inflation. Same-store sales grew in all years except for the pandemic. It grew by 1% during the financial crisis in 2007-09. It is a perfect engine for a compounding stock – a company can grow its same-store while expanding its store count. Scale advantage: Scale is an enormous competitive advantage for Driven since 80% of the competition is small chains and independent operators. This scale allows Driven to get preferred access to products at the best possible terms. The game is virtually rigged in your favor if you are a big-time corporation, and 80% of your competition is mom-and-pop shops. So, Driven is recruiting and hunting for new franchisees and acquisitions. It has 10 dedicated M&A staff. It has 8,700+ potential sites in the CRM. That’s what you want to see. Driven has a simple business model that is proven to be profitable. When you’ve struck gold, you want to milk it all you can. (Source: Driven Brands) Bottom line: Driven Brands set an ambitious goal of consistently delivering organic, double-digit revenue growth and double-digit adjusted EBITDA growth. That’s organic only. Any extra acquisitions are a cherry on the top. There’s a lot to like about this stock. You’ve got a wildly high margin and an ambitious growth target. Buy and hold Driven, and the compound interest will work its magic for you. [EARN WHILE YOU LEARN! JOIN OUR FREE LIVE TRADING SESSION!](       © All Rights Reserved, Trade Alliance [Unsubscribe]( | [Manage Preferences](