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Xenon Pharmaceuticals XENE is a Burnaby, Canada-based clinical-stage biotech company, which develops innovative therapies for neurology indications with a focus on epilepsy. The company currently has no marketed products in its co

Investors are always looking for stocks that are poised to beat at earnings season and United Community Banks, Inc. UCBI may be one such company. The firm has earnings coming up pretty soon, and events are shaping up quite nicely

Company Overview

Company Overview

Artificial Intelligence (AI) stocks soared in 2023, and the trend shows no signs of slowing down in 2024. Fueled by advancements in areas like machine learning and robotic process automation, AI companies are witnessing solid growth and attracting investors' attention. According to Statista, the AI market is expected to grow at a compound annual growth rate (CAGR) of 15.8% to reach $738.8 billion by 2030.  Thus, leveraging the TipRanks  Stock Screener tool, we have shortlisted stocks with a Strong Buy consensus rating. Further, analysts’ price targets reflect more than 10% upside potential in the next 12 months. Here are the five key stocks from the industry that investors can consider. Nvidia ( NASDAQ:NVDA ) – Nvidia manufactures computer graphics processors, chipsets, and related multimedia software. NVDA stock’s average price target implies an upside potential of 13.1%. In the past week, four analysts have reiterated a Buy rating on the stock.  Amazon ( NASDAQ:AMZN ) – Amazon.com provides online retail shopping and cloud computing services. Analysts currently see an upside potential of 19.4% in AMZN stock. AMZN: Eight analysts have rated the stock a Buy in the past seven days.  Taiwan Semiconductor ( NYSE:TSM ) – Taiwan is a multinational semiconductor manufacturing and design company. TSM stock has an upside potential of 22.6%, according to analysts. Following the release of Q4 earnings on January 18, four analysts assigned a Buy rating to the stock.   SoundHound AI ( NASDAQ:SOUN ) – The company specializes in voice-enabled AI and conversational intelligence solutions. SOUN stock’s average price target implies an upside potential of 122.2%. ASML Holding ( NASDAQ:ASML ) – This company supplies photolithography equipment used in the production of integrated circuits. The stock has an average price target of $863, which implies 12.6% upside potential from current levels. Ahead of the company’s Q4 results, Bernstein analyst Sara Russo upgraded TSM stock’s rating to Buy from Hold. Disclosure

Riyadh has spent billions to try to turn itself into a hub for electric vehicles and overcome obstacles including a lack of infrastructure, talent and raw materials, as it seeks to catch up in the global race to reap the profits of the new industry.

Which stocks are best to buy now? According to Top Wall Street Analysts, the three stocks listed below are Strong Buys. Each stock received a new Buy rating recently and has a significant upside as well.  To find more stocks like these, take a look at TipRanks’  Analyst Top Stocks tool. It shows you a real-time list of all stocks that have been recently rated by Top-ranking Analysts.  Here are today’s top stock picks, according to analysts. Click on any ticker to thoroughly research the stock before you decide whether to add it to your portfolio.  Vera Therapeutics ( NASDAQ:VERA)  – This biotechnology company in the clinical stage is focused on developing treatments for immunological and inflammatory disorders. Yesterday, J.P. Morgan Analyst Anupam Rama maintained a Buy rating but increased the price target to $25 from $22 per share. In the last three months, all five Top Analysts covering the stock have rated it a Buy. Taken together, their 12-month price targets imply an upside of about 53%. Eventbrite ( NYSE:EB) –  This is an American event management and ticketing website. Yesterday, BWS Financial Analyst Hamed Khorsand maintained a Buy rating on the stock with a price target of $12 per share. In the last three months, all three Top Analysts covering the stock have rated it a Buy. Taken together, their 12-month price targets imply an upside of about 79%. Astria Therapeutics ( NASDAQ:ATXS)  – This is a biopharmaceutical company that develops therapies for allergic and immunological diseases. Yesterday, LifeSci Capital Analyst Sam Slutsky maintained a Buy rating on the stock with a price target of $18 per share. In the last three months, all three Top Analysts covering the stock have rated it a Buy. Taken together, their 12-month price targets imply an upside of about 185%. Who are the Top Analysts?  TipRanks ranks financial analysts according to the success rates of their ratings and the average return on each of their ratings. The Top Analysts have each earned a five-star ranking, thanks to the accuracy and profitability of their ratings over time.  See real-time analyst rankings and learn more about the performance of Top Analysts on TipRanks’  Top Wall Street Analysts page.  Disclosure 

The six-member Gulf Cooperation Council economies will grow at a faster pace in 2024 than last year despite expectations of weak global growth hurting oil demand, according to economists polled by Reuters who see inflation in the region well anchored.

The Indian government will target a lower deficit in the 2024-25 fiscal year despite lifting capital expenditure to an all-time high, according to a Reuters poll of economists who said infrastructure investment would be a priority.

[Note: Starbucks’ fiscal year 2023 ended October 1]

Halliburton stock (NYSE: HAL), an energy company organized into the exploration, development, and production of oil and natural gas, is scheduled to report its fiscal fourth-quarter results on Tuesday, January 23. We expect HAL’s stock to likely trade higher with revenues

Investors with a high risk appetite can consider gaining exposure to companies in emerging economies. In addition to portfolio diversification, you may gain access to some of the world’s fastest-growing economies. One such region is Latin America, where Nu Holdings ( NYSE:NU ) has gained traction. Based in Brazil, NU stock has trailed the broader markets since its IPO in December 2021. Down 23% from its all-time high, NU stock is attractively priced and has significant upside potential in the upcoming decade. I remain bullish on NU stock due to its widening portfolio of products, which should lead to a rapidly expanding customer base and an uptick in sales and earnings. An Overview of Nu Holdings Founded in 2013, Nu has successfully disrupted the financial services segment. It is one of the largest digital financial services platforms globally, serving roughly 90 million customers across Brazil, Colombia, and Mexico. Over the years, Nu has leveraged its technology expertise to create financial solutions for individuals and businesses. Nu offers credit and debit cards to customers. It also offers mobile payment solutions and savings accounts. Further, you can buy cryptocurrencies through the Nu application, making it easier to gain access to another asset class. The NuInvest product enables customers to invest in equities, fixed-income, options, exchange-traded funds, and multi-market funds. Moreover, you can apply for personal unsecured loans or BNPL (buy now pay later) solutions as well, making Nu a one-stop shop for the new-age banker. Nu raised $2.3 billion in its IPO and has since added 65 products and features to its application. How Did Nu Perform in Q3 2023? In Q3 2023, Nu added 5.4 million customers, and this figure comes in at 18.7 million in the last 12 months, allowing the company to end the quarter with 89.1 million customers. Nu is now the fifth-largest financial institution in Latin America by customer count. Its customer base surpassed 84 million in Brazil, accounting for 51% of the country’s adult population. Nu's monthly average revenue per active customer grew by 18% year-over-year to $10. Additionally, its growing customer base and higher spending allowed it to report revenue of $2.1 billion in Q3 2023, an increase of 53% year-over-year. In its annual report for 2022, Nu emphasized that its spending on customer acquisition is quite low as it has gained a majority of customers organically and through word of mouth. Further, in Q3, its average cost to serve per active customer remained unchanged at $0.9, resulting in solid bottom-line growth. Nu reported an adjusted net income of $355.6 million in Q3, up from just $63 million in the year-ago period. An asset-light model, coupled with low operating expenses and robust gross margins, has allowed Nu to improve earnings at an accelerated pace in 2023. A Focus on Earnings The banking industry is quite cyclical, and several financial institutions wrestle with lower earnings and cash flows during periods of economic downturn. Nu has managed to increase its customer count significantly despite a challenging macro environment, resulting in stellar revenue growth. It also ended Q3 with an efficiency ratio of 35%, which is remarkable for a growth stock, as Nu’s operating leverage improved for the seventh consecutive quarter. Generally, an efficiency ratio of less than 50% is considered to be good. In the last two years, Nu has almost doubled its customer count while its sales have grown by 344%. Comparatively, the company reported a loss of $34.3 million in Q3 2021 and has since focused on margin growth amid a difficult macro environment. What Next for NU Stock? After gaining massive traction in Brazil, Nu is positioned to increase its presence and market share in several other Latin American markets. It can also enter other developed international markets, including the U.S., Canada, Australia, and Europe. According to Wall Street, Nu’s growth story is far from over, as the company is forecast to end 2024 with sales of $10.7 billion, up from just $4.8 billion in 2022. Comparatively, its adjusted earnings are forecast to improve to $0.35 per share in 2024, up from -$0.08 per share in 2022. So, NU stock trades at 4x forward sales and 26.1x forward earnings, which is not very expensive. While the sector price-to-earnings multiple is far lower at 10.3x, it primarily includes valuations for legacy banks, including Citi ( NYSE:C ), Wells Fargo ( NYSE:WFC ), and JPMorgan ( NYSE:JPM ). Nu’s stellar growth metrics allow it to command a premium valuation. Is NU Stock a Buy, According to Analysts? Out of the eight analysts covering NU stock, six recommend a Buy, two recommend a Hold, and none recommend a Sell, giving it a Strong Buy consensus rating. The average NU stock price target is $10.14, 13.7% above the current price. The Takeaway Nu has a strong record of improving operating leverage as the business continues to scale, resulting in sustained gross profit growth and margin expansion. The steady expansion of its loan portfolio and superior asset quality should allow Nu to grow at an industry-leading pace in 2024 and beyond, while its attractive valuation boosts the stock's investment case. Disclosure

South Korea's economy expanded at a slightly slower pace in the final three months of 2023 compared to Q3 as elevated interest rates held back domestic demand despite higher exports, according to economists polled by Reuters.

Following a strong earnings report – such as the one that chip contract manufacturing and design specialist Taiwan Semiconductor ( NYSE:TSM ) delivered last week – it’s not unusual to see a pullback. Call it the buy-the-rumor, sell-the-news effect. Basically, investors ought to capitalize on the hype rather than the underlying substance. However, because of the rising importance of generative AI, this aphorism might not hold for TSM stock. Instead, I’m bullish on TSM as the AI hype train continues to steam ahead. TSM Stock May Prove to be Too Important to Sell At first glance, the idea of selling TSM stock is tempting, not because of deep-seated fundamental concerns but rather the ebb and flow of the post-pandemic market. Last year, investors avoided a much-dreaded recession. With TSM popping up over 12% last week, it seems appropriate to rotate into a fresh opportunity. After all, its 52-week gain of 20% is largely due to the strong earnings print. With questions about what may happen in 2024, TSM stock might be overstretched. Then again, a new AI-based framework suggests sticking with Taiwan Semiconductor may be a prudent idea. First, the earnings print itself was credible. In the company’s fourth quarter, the semiconductor specialist posted earnings per share of $1.44. While this figure represented a 19.3% year-over-year decline, it beat the consensus estimate of $1.39 per share. On the top line, TSMC posted sales of $19.62 billion, down 1.5% year-over-year but quite close to the $19.68 billion target. Second, and more importantly, the details of the earnings print facilitate confidence in TSM stock. According to TipRanks reporter Shrilekha Pethe, “In Q4, 3nm (nanometer) wafers made up 15% of the company’s total revenues, 5nm chips made up 35%, and 7nm comprised 17%. In total, these advanced technologies chips made up 67% of TSMC’s wafer revenue.” Of course, the critical takeaway here is that these represent the processor categories that power intensive generative-AI-focused applications. According to Bloomberg, generative AI could become a $1.3 trillion market by 2032. If so, that would represent a trailing-10-year compound annual growth rate (CAGR) of 42% from the 2022 starting period. Because digital intelligence is in such high demand, TSMC’s leadership team is confident that it can meet its ambitious first-quarter financial targets. Thus, simply avoiding TSM stock on the basis of its market success leading to a potential correction may not be the most well-reasoned thesis. Curious Options Trades Warrant a Closer Look According to TipRanks’ unusual options activity screener, on January 18, it recorded 50 unusual transactions. Most remarkably, all 50 of them featured bullish sentiment -- either bought calls or sold puts. With everyone on that particular day placing optimistic bets on TSM stock, contrarians may be tempted to consider the other side of the wager. In many ways, the long-side wager is the favorite to win the upcoming game. However, oddsmakers or bookies need people to take the other side of the bet to balance the books. Therefore, bookies can sweeten the deal through spreads that favor the underdog. A similar thought process goes on in the capital markets. Sometimes, it’s just not advantageous to bet alongside everyone else. Sure enough, traders prior to and after TSMC’s earnings report went against the grain, betting against TSM stock. Perhaps the one trade that stood out was the TSM Apr 19 ’24 105.00 put. On January 19, a major trader (or traders) bought 2,097 contracts of this put option, paying a premium of $524,000. To quickly recap, put options give holders the right (but not the obligation) to sell the underlying security at the listed strike price. True, TSM stock would only need to fall 8% from where it stands now for the put option to be at the money. However, the half-a-million dollars used to initiate this transaction could evaporate if shares stay elevated. And that’s not an unrealistic proposition. According to McKinsey & Company, generative AI’s impact on productivity could add trillions of dollars in value to the global economy – perhaps the equivalent of $2.6 trillion to $4.4 trillion worth. By comparison, the U.K.’s entire GDP in 2021 was $3.1 trillion. With AI-focused demand set to skyrocket, betting against TSM stock is risky. Attractive Multiple Also Supports the Bullish Cause Another factor that could help TSM stock overcome the naysayers is the attractive multiple. Despite a relatively strong earnings print, shares trade at a trailing-year earnings multiple of 22.3x. That’s below the semiconductor sector’s average multiple of 30.6x. Further, the stock's forward earnings multiple sits at 18.4x. It’s also important to note that the low valuation isn’t just an arithmetic trick. Rather, it’s backed by solid metrics. For instance, TSMC’s return on invested capital (ROIC) stands at 21.04% on a trailing-12-month (TTM) basis. That’s significantly higher than the 2.6% average ROIC for the semiconductor market. Thus, TSM's discount is a credible one. Is TSM Stock a Buy, According to Analysts? Turning to Wall Street, TSM stock has a Strong Buy consensus rating based on five Buys, no Holds, and zero Sell ratings. The average TSM stock price target is $138.60, implying 22.6% upside potential. The Takeaway: Don’t Jump Ship from TSM Stock Just Yet Given TSM stock's strong performance following the company’s earnings report, it’s tempting to pocket the profits and rotate into another compelling opportunity. Even options traders have taken large bearish bets on TSM stock. However, because of the tremendous demand for generative AI applications, advanced semiconductor products will likely rise in prominence. Adding to this, TSM stock trades at a reasonable valuation. All things considered, investors shouldn’t feel pressured to abandon TSM. Disclosure

Corn ended the Monday session off the highs, but still fractionally in the black. March printed a 4c range from -1 ½ cents to +2 ½ cents. USDA’s weekly Export Inspections data showed 713.3k MT (28.1 mbu) of corn was shipped during the week that ended 1/18. That was down...

Feb hogs ended the day with a net 17 cent gain, which tightened the spread to April by 69 cents to $6.70, as the spring months fell on Monday. April closed down by 52 cents for the day. USDA’s National Average Base Hog price was shown at $46.53 in the...

Nearby soybean futures closed Monday with 6 to 11 cent gains. The March contract traded within a 16 ¼ cent range on the day, though mostly in the black and closed just 1 ½ cents off the session high. Soy oil futures also rallied out of the weekend with gains...

Wheat futures pulled off their highs for the close, but were mostly higher across the domestic markets. KC futures were fractionally to a penny weaker in old crop but fractionally higher in the new crop contracts. Chicago SRW ended the day 2 ¼ to 3 ¼ cents in the black,...

Cattle firmed up after an initially weak start on Monday. Futures were still down by 5 to 60 cents for the close. The front month feeder cattle futures closed Monday with a 5 cent gain in the May contract though 27 to 67 cent losses in the other front months....

Cotton futures rallied another 1.1% on Monday, taking the front months to levels not seen since late October. New crop also firmed up for the day, though gains were limited to 26 points. The March-Dec spread, at 4.35 cents going home, is also the widest since late October. The Seam...