The Market’s Spark Plug Will Be Delivered Today

Earn While You Learn! ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ [EARN WHILE YOU LEARN! JOIN OUR FREE LIVE TRADING SESSION!]( Hello investor, The Market’s Spark Plug Will Be Delivered Today Wall Street avoided making major bets ahead of today’s big jobs report. The health of the labor market is in the spotlight now. Traders are starting to worry that the economy could tip into a recession before the Federal Reserve has time to stimulate activity through interest rate cuts. The central bank is expected to cut rates during its September meeting. Today’s jobs report might determine the size of that cut — 25 basis points or 50 basis points. Wall Street prices in over 100 basis points worth of cuts in 2024. So, it implies a jumbo-sized cut during one of the last three FOMC meetings for the year. It is notable because the central bank wouldn’t have a reason to go for a jumbo-sized cut unless they were worried about the economy. The last jobs report didn’t go well. July’s subpar reading led to a massive sell-off in stocks. Naturally, traders are anxious about August’s reading. Economists expect payrolls to increase by about 165,000. It’d be higher than a 114,000 gain in July. If the report is this positive, it might lead to a 25 basis-point cut. (Photo: CFI) A 50 basis-point cut might sound like a bullish scenario because it is more aggressive in stimulating economic activity. However, it might not be bullish in this case. The only reason why the Fed would do a 50 basis-point cut is that they’re worried about a severe hit to the labor market. Otherwise, they would have gone for a series of 25 basis-point rate cuts. - “While the odds currently favor a 25 basis-point cut at the Fed’s September meeting, a woefully disappointing jobs report could shift those odds to favor a 50 basis-point cut,” said Bret Kenwell at eToro. - “A 50 basis-point cut may seem like welcoming news for equity bulls. However, if the Fed feels forced to go right to a 50 basis-point cut, it may suggest there’s a bigger worry about the jobs market than previously acknowledged.” Billionaire John Paulson blasted the Federal Reserve for waiting too long to cut interest rates. He expects the central bank to rush to lower the rates to as low as 2.5% by the end of next year. - “…my best guesstimate would be around 3%, perhaps 2.5%” for the federal funds rate, Paulson said. (Photo: Fred R. Conrad/The New York Times) Investors should keep in mind that billionaires have been calling for a recession in the last few years. The prediction hasn’t materialized yet. Regardless, it demonstrates that it is impossible to make economic predictions. So, investors must be prepared to adapt to fast-changing market conditions. Don’t Sleep On This Boring Company With Huge Growth Today’s Stock Pick: Loar Holdings, Inc. (LOAR) I am going to share two statistics about a company. This company grew its net sales by 38% CAGR since 2012. Adjusted EBITDA did even better with a 46% CAGR in the same period. Sounds like a high-flying technology startup, right? Nope. This company is Loar Holdings, and it is an aerospace and defense components manufacturer with a long track record of acquiring niche companies in this space. The strategy paid off. Just take a look at its growth since 2012: (Source: Loar Holdings) What makes Loar unique is that it focuses on niche companies that make mission-critical, highly engineered solutions with high-intellectual property content. Meaning? It is tough for outside competitors to enter the industry. Its platforms include commercial, business jet and general aviation, and defense end markets. (Source: Loar Holdings) All in all, Loar offers over 15,000 parts for aircrafts. For example, a single commercial jet can use over 15 parts from Loar. These parts are often IP-heavy and require a depth of operational expertise. So, once Loar products meet time and cost-intensive specification processes, they are basically locked in for the long term. Lastly, aftermarket services for these parts are wildly lucrative with high margins. (Source: Loar Holdings) In fact, aftermarket accounted for 51% of Loar’s 2023 revenue. (Source: Loar Holdings) Now, the company has grown rapidly over the years because it mastered the art of acquiring specialized suppliers in a fragmented market. There have been 16 acquisitions in total since 2012. Once acquired, Loar can leverage its loyal blue-chip customer base by cross-selling acquired products to them. (Source: Loar Holdings) All in all, Loar operates in a market with attractive economics. The company expects its sales to grow by ~17% this year. It recently went public to pay down debts. Meaning? Lower interest expenses will likely lead to higher earnings. Loar’s TTM EPS is $0.13. The company expects to deliver an adjusted EPS of $0.42. So, the growth is poised to be remarkable. Wall Street analysts forecast 2025 earnings per share to be $0.74. Using the company’s forecasted 2024 numbers, it would represent a 76% EPS growth. Bottom line: Loar Holdings recently went public, so it is not as covered as other companies in the stock market. Its EPS looks like it is poised to grow over the next two years. Watch out for this stock. It might be one of the best winners in the future.   [EARN WHILE YOU LEARN! JOIN OUR FREE LIVE TRADING SESSION!](     © All Rights Reserved, Trade Alliance [Unsubscribe]( | [Manage Preferences](