Stocks to Watch on Tuesday: PepsiCo, Lilly, AMD, and More
PepsiCo's Perspective on GLP-1 Weight-Loss Drug
PepsiCo's assessment of the impact of GLP-1 weight-loss drugs contradicts Walmart's warning. However, a new survey suggests that coverage of these treatments, including Novo Nordisk's Wegovy and Ozempic, as well as Eli Lilly's Mounjaro, could nearly double to 43% next year. Currently, only about 25% of these treatments are covered. Lilly, a stock in the CNBC Investing Club portfolio, remains a notable player in this space.
Raising Odds of a Recession in 2024
Market historian Ed Yardeni is increasing the likelihood of a recession in 2024. He anticipates rolling recoveries but considers a rolling recession as the base case scenario.
AMD's Price Target Cut and Chip Stock Analysis
Bank of America has reduced AMD's price target from $132 to $120 per share. While maintaining a neutral (hold) rating, analysts highlight a "tricky set-up" for chip stocks. AMD is being closely monitored by the CNBC Investing Club as a potential addition to their portfolio. The Club currently owns chipmakers Nvidia and Broadcom.
Changing Ratings for Skyworks, Qorvo, Schwab, and Goldman Sachs
Citi downgrades Skyworks and Qorvo from neutral to sell, both being wireless chip solution providers. Barclays lowers Schwab's price target from $64 to $55 per share. JMP Securities also reduces Goldman Sachs' price target from $450 to $440 per share. The stock closed at $312 on Monday, with Goldman set to report its quarter next week. Wells Fargo kicks off the earnings season on Friday.
Price Target Adjustments for Harley-Davidson, Rivian Automotive, Realty Income, Walgreens, Robinhood, and Square
Citi cuts Harley-Davidson's price target from $35 to $32 per share, delaying the long-awaited rebound. On the other hand, UBS upgrades Rivian Automotive from hold to buy. Bank of America downgrades Realty Income from buy to hold. Mizuho lowers Walgreens' price target from $31 to $25 per share, citing employee walkouts. JMP and Barclays adjust Robinhood's price targets, with JMP going from $25 to $24 per share and Barclays from $11 to $10 per share. Square has experienced a 46% decline since July, which some consider an unjustified pullback.
Leadership Changes and Market Performance of Unity Software and Corning
Unity Software CEO John Riccitiello retires, with former Red Hat chief James Whitehurst taking over. This transition brings optimism to Unity's market performance. Citi downgrades Corning from buy to hold, anticipating a stretched-out recovery. The Gorilla Glass maker's shares hit a 52-week low on Tuesday.
For a comprehensive list of stocks in Jim's Charitable Trust, the portfolio used by the CNBC Investing Club, please refer to the original source.
Implications of Market Movements on New Business Formation
Impact of GLP-1 Weight-Loss Drug Coverage
PepsiCo's differing view on the impact of GLP-1 weight-loss drugs, compared to Walmart's warning, presents a complex landscape for new businesses in the healthcare sector. The predicted increase in coverage for treatments like Novo Nordisk's Wegovy and Ozempic, as well as Eli Lilly's Mounjaro, could create opportunities for businesses in this space.
Recession Predictions and Business Planning
Market historian Ed Yardeni's prediction of a possible recession in 2024 could impact business planning. New businesses need to consider this potential economic downturn in their strategic planning, particularly those in sectors sensitive to economic cycles.
AMD's Price Target and the Chip Stock Landscape
Bank of America's reduction of AMD's price target reflects the challenging environment for chip stocks. New businesses in this sector or those reliant on chip technology should consider this "tricky set-up" in their business models and risk assessments.
Changing Stock Ratings and New Business Financing
The downgrading of stocks such as Skyworks, Qorvo, and Schwab, along with Goldman Sachs' reduced price target, could impact new business financing. These market movements may affect investor sentiment and available capital, potentially making it more challenging for new businesses to secure funding.
Price Adjustments and Market Sentiment
The price target adjustments for stocks like Harley-Davidson, Rivian Automotive, Realty Income, Walgreens, Robinhood, and Square can influence market sentiment. New businesses must consider these market dynamics when planning their launch and growth strategies.
Leadership Changes and Market Performance
Leadership changes, such as at Unity Software, and market performance shifts, as seen with Corning, can impact new business formation. These changes can affect industry trends, competitive dynamics, and investor sentiment, all of which new businesses need to consider in their strategic planning.
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