The “Big Three” Catalysts

Earn While You Learn! ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ [EARN WHILE YOU LEARN! JOIN OUR FREE LIVE TRADING SESSION!]( Hello investor, The “Big Three” Catalysts The market was relatively quiet yesterday before the next batch of catalysts. The attention will shift to Nvida’s earnings on Wednesday. The AI chipmaker has been the spark plug of this year’s rally, so investors believe its earnings result can determine the direction for the next few weeks. - “Powell sealed the deal for a September cut at Jackson Hole — leaving intact our thesis for continued broadening/rotation,” said Ohsung Kwon at Bank of America Corp. “But don’t sleep on Nvidia earnings, a consistent driver of S&P returns and still a risk to markets if they disappoint.” The options market suggests that investors expect a 9% move in either direction on the day after the report. It would be a large move for a mega-sized company like Nvidia. The earnings report will be key because Nvidia “has been driving a good deal of the sentiment in the tech sector,” said Chris Larkin at E*Trade from Morgan Stanley. The expectations are high for Nvidia, but the company has a track record of beating them in the last few quarters. Wall Street is feeling good about the economy, but traders are still anxious about a potential slowdown. So, a surprise in either direction can drive a huge price action in the market. Notably, small-cap stocks are poised to show huge earnings growth in 2025. Large-cap stocks are projected to grow slower than small-cap in the last two quarters of 2024 and all quarters in 2025. Analysts anticipate a 63% earnings growth in Q2’25 for small-cap stocks. The growth is coming. So, there might be another round of the rotation into small-cap stocks. (Source: Glenmede, FactSet) At the same time, small-cap stocks are much more sensitive to an economic cooldown. Its fate is likely to be closely linked to economic health. - “Small caps are likely to do better in the near term — but longer term we still prefer large caps,” Lerner said. “Small caps are a greater beneficiary of lower short-term rates, and valuations are cheap. However, historical trends after first Fed rate cut are mixed, earnings trends are still weak, and a cooling economy is historically a headwind for the asset class.” We will get the PCE inflation data later this week before August’s jobs report due next week. So, three key catalysts will be Nvidia earnings, the PCE reading, and the jobs report. Top Dividend Stock That Is Impossible To Kill Off For Decades To Come Today’s Stock Pick: Sysco Corporation (SSY) What makes Sysco an appealing stock is how difficult it would be to enter the food supply business. It’s where the scale wins. Restaurants, corporations, or hospitals don’t want to buy food supplies from local distributors. The headache will be too painful. For example, a hospital system might have 1,000 locations all over the country. Executives would prefer to buy foods from one supplier (Sysco) that can serve all of its locations. This way, there’s one payment to one company. Therefore, for a competitor to compete against Sysco, it must have a fleet of trucks, drivers, warehouses, supply relationships, and so on. It’s simply too difficult to compete, so Sysco has been a cash cow. Sysco has the broadest assortment of food in the industry, and it expanded its assortment strength with the recent acquisitions of Greco, Paragon Foods, and The Coastal Companies. 50-50 split: Sysco calls itself a 50% food supply chain company and a 50% food sales and marketing company. The reason is simple. You must master the supply chain to deliver food on time. (Not an easy feat.) And of course, you need to find customers. (Photo: Sysco) Its sales and marketing team offers a key advantage with over 7,500 sales consultants in hundreds of culinary partners and product specialists across the globe. Sysco boasted that there’s perhaps no one who knows more about food and food trends than its culinary teams. Sales consultants are experts at studying menus that customers love, identifying and introducing new food trends, and helping Sysco’s customers save money. As for the other half, Sysco leads the industry in “on-time and in-full” (OTIF). Basically, it can deliver full stock on time. During the supply chain disruption, Sysco took advantage to become a clear leader that customers are switching to the company. Sure enough, it grew its market share by more than 1.75x for FY 24. Investors shouldn’t expect breathtaking growth from this company. Rather, Sysco offers steady growth over the years. Along with its shareholder returns, investors may enjoy ~10% annual returns with an income source through dividends. For example, Sysco projects a 4%-5% sales growth over fiscal year 2024. Shareholder-friendly company: Sysco has a long history of returning cash to shareholders. It plans to return about $2 billion to shareholders in FY 2025. That would be about 5.4% of its current market cap. All in all, Sysco has returned $17.2 billion to shareholders from FY2015 to FY2024. (Source: Sysco) Bottom line: Sysco is a safe stock where you can stash your cash and enjoy a 2.64% yield on dividends. Its competitive moat ensures another decade of being a cash cow company. Through dividends, share buybacks, and sales growth, you’re certain to enjoy steady growth throughout the years. [EARN WHILE YOU LEARN! JOIN OUR FREE LIVE TRADING SESSION!](       © All Rights Reserved, Trade Alliance [Unsubscribe]( | [Manage Preferences](