Many investors are worried about a resurgence of turbulence in the markets and what that could mean for stocks in the weeks and months ahead. But great businesses can withstand the test of time and provide meaningful portfolio returns. Concerns about the U.S. economy, its impact on the global economy, and the trickle-down impact of inflation on businesses across industries are legitimate.

At the same time, if you’re investing your cash into excellent companies and intend to hold on to your positions for years at a time, these short-term movements needn’t deter you from your overarching financial goals. On that note, here are two monster growth stocks to consider adding to your portfolio right now.

1. AbbVie

AbbVie (NYSE: ABBV) has dealt with some short-term headwinds in recent quarters due to the loss of patent exclusivity on Humira. The drug was once the world’s top-selling drug and the crown jewel of this healthcare company’s portfolio.

While the entry of generics into the market has certainly driven a decline in Humira sales, AbbVie has other winners in its portfolio that are slowly but surely offsetting the outcome of these changes. Bear in mind, pharmaceutical companies tend to be far less cyclical than other businesses. However, they do endure changing business cycles as new drugs are developed and approved, and older, top-selling drugs give way to competition.

The average period of patient exclusivity for newly approved drugs is around 12 years, but this can vary based on the specific product in question. AbbVie delayed patent expiration on Humira for years, eventually extending its patent exclusivity period to around two decades before it was finally forced to contend with the impact of biosimilars.

Fast-forward to the second quarter of 2024, and the impact of AbbVie’s broad portfolio of other blockbuster drugs is taking hold despite waning sales of Humira, driving revenue and profits upward. Worldwide net revenue in the three-month period totaled $14.5 billion, up approximately 4% from one year ago, a healthy increase for a business at its level of maturity.

This performance was driven by robust growth in its oncology and neuroscience drug portfolios of 11% and 15%, respectively. Blockbuster immunology drugs like Skryizi and Rinvoq, which saw revenue rise by respective rates of 45% and 56% in the quarter from the year-ago period, were also heavy hitters here.

The company is very profitable. In the first half of 2024, AbbVie brought in net earnings of approximately $2.8 billion, a 21% increase from the first half of 2023. And over the trailing 12 months, AbbVie has brought in operating cash flow of about $19 billion with free cash flow in the ballpark of $20 billion.

Story continues

As a long-standing dividend payer, AbbVie has increased its dividend by over 285% since it spun off from Abbott Laboratories over a decade ago. It currently boasts a forward annual dividend yield of around 3.1%, roughly double that of the average stock trading on the S&P 500, with a forward annual dividend rate of $6.20 per share.

If you’re looking for a top-notch income-producing healthcare stock to add to your portfolio, AbbVie might be worth a long, hard second look.

2. Cava Group

Cava Group (NYSE: CAVA) owns and operates a chain of Mediterranean style fast-casual restaurants across the U.S. Shares have been doing exceptionally well recently, with the stock soaring by an eye-popping 200% since January.

The company only went public in June 2023, but its fast-growing business that is already generating profits seems to be attracting increased interest from investors. Now, it’s important to look beyond share price increases and at the underlying business to see what’s happening.

In the second quarter of 2024, Cava’s revenue jumped 35% year over year to $231 million. The restaurant stock also opened 18 net new restaurants in the three-month period, which resulted in Cava ending the quarter with 22% more restaurants in its portfolio than the same time last year.

Same restaurant sales popped by more than 14% from the year-ago quarter, while restaurant level profits soared 37% from the comparable period in 2023. About 36% of Cava’s orders in the quarter came from digital sales.

From a profitability perspective, Cava reported just shy of $20 million in net income in the three-month period. That was about 3 times higher than its net income just one year ago. The company is also cash-flow-positive. Net cash from operations totaled around $49 million in the second quarter of 2024, while free cash flow came to around $23 million.

Cava Group, like other members of the restaurant industry, is going to experience a certain level of cyclicality and vulnerability to changing consumer spending patterns. However, the company’s fast-casual dining experience can provide a more affordable and accessible (not to mention slightly healthier) option to consumers, which can be particularly appealing when wallets are constrained.

If you have a well-diversified portfolio and the risk appetite to invest in restaurant stocks, Cava looks like a solid choice to capitalize on the growth in the fast-casual segment.

Should you invest $1,000 in AbbVie right now?

Before you buy stock in AbbVie, consider this:

The Motley Fool Stock Advisor analyst team just identified what they believe are the 10 best stocks for investors to buy now… and AbbVie wasn’t one of them. The 10 stocks that made the cut could produce monster returns in the coming years.

Consider when Nvidia made this list on April 15, 2005… if you invested $1,000 at the time of our recommendation, you’d have $720,542!*

Stock Advisor provides investors with an easy-to-follow blueprint for success, including guidance on building a portfolio, regular updates from analysts, and two new stock picks each month. The Stock Advisor service has more than quadrupled the return of S&P 500 since 2002*.

See the 10 stocks »

*Stock Advisor returns as of August 26, 2024

Rachel Warren has positions in AbbVie. The Motley Fool has positions in and recommends Abbott Laboratories. The Motley Fool recommends Cava Group. The Motley Fool has a disclosure policy.

2 Monster Stocks You Can Buy Right Now Before They Surge Even Higher was originally published by The Motley Fool

(Bloomberg) — Intel Corp. is working with investment bankers to help navigate the most difficult period in its 56-year history, according to people familiar with the matter.

Most Read from Bloomberg

The company is discussing various scenarios, including a split of its product-design and manufacturing businesses, as well as which factory projects might potentially be scrapped, said the people, who asked not to be identified because the deliberations are private.

The news sent Intel shares up 9.5% to $22.04 in New York on Friday, marking the biggest single-day gain since October 2022.

Morgan Stanley and Goldman Sachs Group Inc., Intel’s longtime bankers, have been providing advice on the possibilities, which could also include potential M&A, the people said. The discussions have only grown more urgent since the Santa Clara, California-based company delivered a grim earnings report this month, which sent the shares plunging to their lowest level since 2013.

The various options are expected to be presented during a board meeting in September, the people said.

No major move is imminent and discussions are still in early stages, the people cautioned. A representative for Intel declined to comment, while Morgan Stanley and Goldman Sachs didn’t immediately respond to requests for comment.

Before the rally, Intel’s stock had declined 60% this year, compared with a 20% gain for the Philadelphia Stock Exchange Semiconductor Index, a chip-industry benchmark.

A potential separation or sale of Intel’s foundry division, which is aimed at manufacturing chips for outside customers, would be an about-face for Chief Executive Officer Pat Gelsinger. Gelsinger has viewed the business as key to restoring Intel’s standing among chipmakers and had hoped it would eventually compete with the likes of Taiwan Semiconductor Manufacturing Co., which pioneered the foundry industry.

But it’s more likely that Intel takes a less dramatic step before it reaches that point, such as holding off on some of its expansion plans, the people said. The company has already done project financing deals with Brookfield Infrastructure Partners and Apollo Global Management.

Intel’s Gelsinger is running out of time to pull off a much-needed turnaround. He’s been attempting to expand the chipmaker’s factory network at the same time that sales are shrinking — a money-losing proposition. The company suffered a net loss of $1.61 billion last quarter, and analysts are predicting more red ink for the next year.

Story continues

“Expect big capex cuts from Intel over the next 12 months,” said Amir Anvarzadeh, market strategist at Asymmetric Advisors. “Intel’s model is effectively broken. It’s fighting fires on too many fronts.”

Gelsinger, an Intel veteran who left the company for more than a decade, took the helm in 2021 and promised to restore the company’s technological edge. Under previous CEOs, the chip pioneer had lost market share and its long-vaunted reputation for innovation.

But his comeback plan proved overly ambitious, and the company has had to scale back. When it reported earnings earlier this month, Intel announced plans to cut about 15,000 jobs and slash capital spending. The company even suspended its long-prized dividend.

“It’s been a difficult few weeks,” Gelsinger told investors at the Deutsche Bank Technology Conference on Thursday. The company tried to lay out a “clear view” of its next steps during its earnings report, he said. “Obviously the market didn’t respond positively. We understand that.”

Adding to the upheaval, director Lip-Bu Tan abruptly stepped down from the board last week. The semiconductor veteran, who was brought in two years ago to help with the comeback effort, cited scheduling commitments. But his departure removed one of the few directors with industry knowledge and experience.

Gelsinger’s comeback plan hinged on recasting Intel into two groups: one that designs chips and another that manufactures them. The production arm would then be free to seek business from other companies.

But the biggest client of Intel’s factory network is still Intel. Until the foundry business has more outside customers, it’s going to be challenged financially. It reported operating losses of $2.8 billion in its most recent quarter and is now on course to have a worse year than projected.

With a market value of $86 billion, Intel has fallen out of the top 10 largest chipmakers in the world ranked by that measure. It’s the second-worst performer on the Philadelphia chip index this year and suffers in comparisons with the stratospheric gains of Nvidia Corp., a company that’s on course to post double Intel’s revenue in 2024.

As recently as 2021, Intel was three times the size of Nvidia by revenue.

Most Read from Bloomberg Businessweek

©2024 Bloomberg L.P.

(Bloomberg) — Warren Buffett’s Berkshire Hathaway Inc. won’t have to swiftly disclose its rapid-fire sales of Bank of America Corp. stock too much longer. That is, if he keeps whittling the investment.

Most Read from Bloomberg

A fresh round of disposals disclosed late Friday trimmed the conglomerate’s stake in the bank down to 11.4%. So long as Berkshire holds more than 10%, US rules require it to reveal transactions within a few days. But if the company holds less, it may wait weeks to update the public — typically giving snapshots after every quarter.

That would help quiet the drama weighing on BofA’s share price since mid-July, when Buffett — a longtime backer of Chief Executive Officer Brian Moynihan — embarked on a selling spree without giving a reason. Berkshire has since reaped a total of $6.2 billion.

In the disposals announced Friday, Berkshire sold about 21 million shares for $848 million from Aug. 28 through 30.

Buffett, 94, began building the investment in Bank of America with a $5 billion deal in 2011 for preferred stock and warrants. His Berkshire Hathaway eventually became — and remains — the bank’s biggest stockholder, with a stake worth about $36 billion, based on Friday’s closing price.

–With assistance from Peter Eichenbaum.

Most Read from Bloomberg Businessweek

©2024 Bloomberg L.P.

(Bloomberg) — Stocks climbed in the final stretch of a wild August, with traders bracing for what’s historically known as the worst month for equities.

Most Read from Bloomberg

For all the whiplash in global markets just a few weeks ago, the S&P 500 closed within a whisker of its all-time highs. Equities spiked in the last 10 minutes of Wall Street trading, with the S&P 500 up 1% and all of its major groups on the rise. The gauge notched its fourth straight monthly gain amid data showing the economy is holding up, while leaving the door open for the Federal Reserve to start cutting rates in September. Whether a jumbo-sized reduction remains on the table, next week’s jobs report might bring some clues.

“As August comes to a close, sentiment has calmed down significantly compared to the beginning of the month,” said Mark Hackett at Nationwide. “Many of the larger concerns in the overall economy have decreased. September may bring some seasonal challenges, but if investors can navigate through them, these challenges can turn into advantages in the fourth quarter.”

Since 1950, the S&P 500 has generated an average loss 0.7% in September and finished higher only 43% of the time, making it the worst month for stocks on an average return and positivity-rate basis, according to Adam Turnquist LPL Financial. The last four Septembers have also been notably weak, with the index posting respective declines of 4.9%, 9.3%, 4.8%, and 3.9%.

“During the month, the index tends to trade sideways during the first half, with losses beginning to accumulate into month end,” he said. “For this year, the midway point also happens to line up closely with the September Fed meeting.”

The S&P 500 rose to around 5,650 ahead of Monday’s US holiday. The Nasdaq 100 added 1.3%. The Russell 2000 of small firms gained 0.7%. Goldman Sachs Group Inc. plans to dismiss a few hundred employees in coming weeks as part of the firm’s annual cull of low-performing staff, according to people familiar with the matter. Dell Technologies Inc. rallied on solid results.

Wall Street’s “fear gauge” — the VIX — dropped to 15. That’s after an unprecedented spike that took the index above 65 during the Aug. 5 market selloff. An options trader or traders bought call spreads on the VIX — expiring in September, spending upwards of $9 million to protect against a surge in the gauge of S&P 500 volatility past 22.

Story continues

Treasury 10-year yields climbed five basis points to 3.91%. The dollar rose at the end of its worst month this year. Speculative traders turned bearish on the greenback for the first time since February. Oil tumbled.

Data from Bespoke Investment Group found that over the past 100 years, September also has by far been the worst month of the year for the Dow Jones Industrial Average with an average decline of 1.24%.

A Citigroup Inc. analysis of data since 1928 suggests S&P 500’s average realized volatility for September has historically been 1.5 points above August, while October has been an additional 2.5 points higher.

There are a few theories for why September tends to be a weaker month for stocks.

For one thing, investors returning from summer vacations tend to reassess portfolio positioning defensively. Companies prepare their budgets for the coming year and debate belt tightening. And mutual funds often engage in “window dressing” by selling positions at a loss to reduce the size of their capital-gains distributions.

“Additionally, companies entering a blackout period for share repurchases at the end of the third quarter can have their ability to support their share price impacted if the price drops,” Hackett said.

While seasonality can be reason enough for some jitters, 2024 is also an election year, Bespoke remarked. With that added potential cause for concern, September’s performance in election years has again, leaned negative, the firm said.

For all post-World War II presidential election years, the Dow has averaged a 0.58% decline during September. Albeit negative, that compares with September of non-election years when it has averaged an even larger 1.37%.

“In other words, seasonality has tended to be rough regardless of whether or not it’s an election year,” the Bespoke strategists noted.

For now, many traders are pinning their hopes on more data that will show the economy isn’t falling off a cliff, while inflation keeps marching toward the Fed’s 2% goal.

A report Friday showed US consumer sentiment improved for the first time in five months as slower inflation and prospects for Fed cuts helped lift expectations about personal finances. The Fed’s preferred measure of underlying US inflation — the core personal consumption expenditures price index — rose at a mild pace.

“This week’s numbers dispel worries about a recession and inflation,” said David Russell at TradeStation. “Goldilocks could be here as Jerome Powell prepares to turn the page.”

Powell said last week the time has come for the central bank to cut its key policy rate, affirming expectations that officials will begin lowering borrowing costs next month and making clear his intention to prevent further jobs cooling.

Like the Fed, investors’ focus seems to be shifting from inflation to the labor market, and soon all eyes will be on next Friday’s monthly jobs report, said Bret Kenwell at eToro.

“Last month’s jobs report was a big miss, causing widespread worry that the Fed was too late to cut rates,” he noted. “Another big miss could increase speculation of a 50 basis-point cut vs. the current expectation of a 25 basis-point cut.”

Swap contracts fully price in a quarter-point move and about 20% odds of the half-point cut forecast by at least two large US banks. They continue to almost fully price in a half-point rate cut at some point this year, anticipating cumulative easing of almost 100 basis points over the Fed’s three remaining policy meetings.

Stock markets are likely to benefit again from good economic data, which is needed for the rally to broaden out further beyond the tech sector, according to Barclays Plc strategists.

The team led by Emmanuel Cau says the monthly US jobs data next week will be the bellwether for confirming or refuting recession worries.

“If it is a bad print, no doubt equities would react badly given their level after the rebound,” they wrote. On the other hand, a better-than-expected figure would “help assuage those recession fears in the short run, and likely be good for equities.”

Cash funds recorded inflows of about $24.5 billion in the week through Aug. 28, a fourth straight week of additions, according to a note from Bank of America Corp., citing EPFR Global data. About $20.7 billion entered bond funds, while $13.7 billion flowed into stocks, the data showed.

US equities saw a ninth straight week of additions at $5.8 billion.

Corporate Highlights:

• Tesla Inc. aims to unveil its highly anticipated robotaxi at an event at Warner Bros. Discovery Inc.’s movie studio in the Los Angeles area, people familiar with the matter said.

  • The electric vehicle company is targeting a reveal of the purpose-built robotaxi on Oct. 10 at the Burbank, California facility, said the people.

• Intel Corp. is working with investment bankers to help navigate the most difficult period in its 56-year history, according to people familiar with the matter.

  • The company is discussing various scenarios, including a split of its product-design and manufacturing businesses, as well as which factory projects might potentially be scrapped, said the people.

• Lululemon Athletica Inc. lowered its sales and profit outlook for the year as increased competition and relentless inflation curb demand for its pricey yoga pants.

• Ulta Beauty Inc. trimmed its sales forecast as more US consumers cut back on makeup and cosmetics in the face of higher prices and elevated borrowing costs.

• Autodesk Inc. raised its full-year earnings outlook following pressure on the software maker from activist investor Starboard Value LP.

• Alnylam Pharmaceuticals Inc.’s trial of its drug to treat a deadly form of heart disease fell short of investors’ expectations.

Some of the main moves in markets:

Stocks

• The S&P 500 rose 1% as of 4 p.m. New York time

• The Nasdaq 100 rose 1.3%

• The Dow Jones Industrial Average rose 0.6%

• The MSCI World Index rose 0.8%

• Bloomberg Magnificent 7 Total Return Index rose 1.6%

• The Russell 2000 Index rose 0.7%

Currencies

• The Bloomberg Dollar Spot Index rose 0.1%

• The euro fell 0.2% to $1.1055

• The British pound fell 0.3% to $1.3133

• The Japanese yen fell 0.8% to 146.15 per dollar

Cryptocurrencies

• Bitcoin fell 1.3% to $58,785.55

• Ether fell 1.3% to $2,507.87

Bonds

• The yield on 10-year Treasuries advanced five basis points to 3.91%

• Germany’s 10-year yield advanced two basis points to 2.30%

• Britain’s 10-year yield was little changed at 4.02%

Commodities

• West Texas Intermediate crude fell 3% to $73.62 a barrel

• Spot gold fell 0.7% to $2,503 an ounce

This story was produced with the assistance of Bloomberg Automation.

Most Read from Bloomberg Businessweek

©2024 Bloomberg L.P.

While the current bull market has served many investors well, it has not necessarily been a rising tide for all boats. Some growth stocks are still seeing volatility and that has left short-term focused investors uneasy. Recent market volatility is attributable to a range of factors, including concerns about a slowdown in the U.S. economy as well as an interest rate hike instigated by the Bank of Japan.

Long-term investors tend to be less concerned about these short-term market movements, but they know that the whims of the market over weeks or months alone shouldn’t dictate their underlying investment philosophy. Instead, they try to focus on quality businesses that they want to own a piece of for the long term, adding to their positions in these companies through market changes as long as their investment thesis holds.

These investors look at market drops as investment opportunities for growth-oriented companies trading on sale, and it just so happens that two names are trading at a discount that these long-term investors might want to take a closer look at.

1. Pfizer

Pfizer (NYSE: PFE) shares are trading down about 21% from their 52-week highs, largely on the market’s disappointment over a drop in sales related to Pfizer’s COVID-19 vaccine sales waning. The drop was inevitable as pandemic concerns eased and the company’s growth has returned to normal levels. But Pfizer remains a strong company, which means there is an opportunity for forward-thinking investors.

Pfizer is still one of the top healthcare companies in the world, with a portfolio of medicines including market-leading oncology drugs, vaccines, immunology drugs, and more. The company’s $43 billion acquisition of cancer drugmaker Seagen alone — one of a streak of acquisitions Pfizer entered into fueled by cash from its COVID-19 products — is expected to help add eight new blockbuster drugs to the company’s portfolio by 2030.

Pfizer has accumulated more drug approvals from the U.S. Food and Drug Administration than any other pharmaceutical company in the past year. While growth did decelerate significantly from the height of the pandemic, the company is profitable and revenue is growing again.

In the second quarter of 2024, Pfizer reported revenue of just over $13 billion, up 3% on an operational basis. However, if you take out the impact of its COVID-19 products, that figure was up 14% from the same quarter in 2023. Heavy hitters in its portfolio like its transthyretin amyloidosis cardiomyopathy (ATTR) medicine Vyndaqel/Vyndamax/Vynmac and migraine medication Nurtec both grew revenue by double-digit percentages in the quarter: 71% and 44%, respectively.

Story continues

Although down from the same six-month stretch in 2023, profits in the first half of 2024 totaled about $3.1 billion. Pfizer has spent the last few years investing heavily in its future growth through a series of acquisitions and internal business development, but it still had about $7 billion in cash on hand at last count.

Pfizer still pays its dividend faithfully. The company’s forward annual dividend rate is approximately $1.68 per share, while the stock’s lagging performance has driven the yield to an eye-popping 5.8%.

Pfizer is in a period of transition, but the market appears to be shortsighted for thinking this company has exhausted its growth opportunity. The ship will eventually right itself thanks to a solid foundation of cash, market-leading products, and a burgeoning pipeline of blockbusters. All are green flags for Pfizer’s future over the next decade and beyond.

2. PayPal

PayPal (NASDAQ: PYPL) stock is up approximately 16% over the past 12 months ago but still remains down about 77% from its all-time high. PayPal has had a bumpy few years after the heights it hit during the pandemic’s peak. However, the company remains a market leader in payment processing technologies and still accounts for 45% of all online payments processed globally.

Net revenue jumped 8% year over year in the second quarter to $7.9 billion, while operating income soared 17% to $1.3 billion. Total payment volume in the quarter came to just shy of $417 billion, an 11% increase from the same quarter in 2023. Payment transactions per active account on PayPal are also steadily rising, up 11% in the past year despite active accounts being down slightly.

PayPal reported operating cash flow of $1.5 billion in the quarter, with free cash flow of $1.4 billion. It also had over $18 billion in cash and investments on its balance sheet at last count, more than enough to cover its debt load of $12 billion.

From individual payment processing to commercial use cases, PayPal retains a strong foothold in the payments industry that is only bolstered by the continued growth of the multitrillion-dollar e-commerce space. While pandemic-level growth may not be realistic to expect anymore, PayPal is expanding revenue at a healthy clip, increasing its cash flows, and remaining profitable.

Now could be a time to buy the stock while it’s trading down considerably from its pandemic highs.

Should you invest $1,000 in Pfizer right now?

Before you buy stock in Pfizer, consider this:

The Motley Fool Stock Advisor analyst team just identified what they believe are the 10 best stocks for investors to buy now… and Pfizer wasn’t one of them. The 10 stocks that made the cut could produce monster returns in the coming years.

Consider when Nvidia made this list on April 15, 2005… if you invested $1,000 at the time of our recommendation, you’d have $769,685!*

Stock Advisor provides investors with an easy-to-follow blueprint for success, including guidance on building a portfolio, regular updates from analysts, and two new stock picks each month. The Stock Advisor service has more than quadrupled the return of S&P 500 since 2002*.

See the 10 stocks »

*Stock Advisor returns as of August 26, 2024

Rachel Warren has no position in any of the stocks mentioned. The Motley Fool has positions in and recommends PayPal and Pfizer. The Motley Fool recommends the following options: short September 2024 $62.50 calls on PayPal. The Motley Fool has a disclosure policy.

2 Incredibly Cheap Growth Stocks to Buy Now was originally published by The Motley Fool

• Linda, a retired Ohio teacher, must continue working, even though she’d like to retire.

• She and her husband, both public servants, have lived modestly, but she still needs to work.

• Many retirees face similar struggles with low incomes, dwindling pensions, and withering Social Security.

Linda, 64, has worked for the past 31 years, but that doesn’t mean she’s done.

The retired high-school teacher in Ohio, whose last name is known to Business Insider but withheld over privacy and professional concerns, said her retirement isn’t looking how she anticipated. Both she and her late husband were public servants, which means they didn’t have high-paid careers, but she does have a pension — meaning she’ll get a monthly payout in retirement. But it’s not getting her as far as she’d hoped.

“We lived the modest life of two public employees just making ends meet,” Linda said. “We bought a house, we struggled in debt. I’m still in debt after his death, and the bills keep coming, and I need to keep working.”

Before her retirement, she was earning about $5,000 a month. Now, with her pension, she’ll have about $3,700 a month coming in, according to documentation BI review.

She’s looking into part-time work and other opportunities that could keep her afloat. She wants something that will give her a “modicum of autonomy” when it comes to scheduling, and she said that if necessary, she’d apply for Instacart and deliver groceries. She wants to ensure she’s never burdensome to her children, even in her older age.

She doesn’t ever see herself being able to stop working completely; she said she’d work until she could no longer physically do so.

Linda isn’t alone. Many retirees or would-be-retirees aren’t able to fully throw in the towel. The Census Bureau’s Current Population Survey found just more than half of respondents over 65 were living on an income of less than $30,000 in 2022, and many older Americans are expecting to work until the day they’re not physically able to anymore. It’s a situation that’s become more pronounced in the past few years, as retirement becomes increasingly reserved for higher earners — and it may only get worse as pensions continue to wither and Social Security remains imperiled.

“I fully see myself working for the next 20-some years — if I have that many left. Whatever years I have left, I will not be enjoying the retirement life in Florida,” Linda said.

A looming retirement crisis for many

Linda’s retirement goals are modest: She’s hoping to concoct a winning recipe with her teacher’s pension, a rolled-over government-worker retirement plan, the sale of her house, and some part-time work.

Story continues

“I’m hoping that all of those ingredients piled together in a bowl will bake something that I am able to live with. I will never be wealthy. I will never be without care and without worry, but I would like to at some point get to the point where I am free to travel and supplement my income with part-time employment,” she said.

Linda is one of the dwindling number of retirees who have a pension, but that comes after a career spent in low-paying public service. A Government Accountability Office report last year found that older lower-income Americans had become increasingly less likely to have any retirement account balances; simultaneously, fewer low-income households had a pension. That means that the onus of retirement saving and planning has shifted onto workers rather than employers who pay into a monthly pension benefit; for lower-income workers, who may not be able to spare savings, that can be an even more acute challenge.

Linda said she thought teachers especially had gotten a bad rap over the past few decades. The idea that they just want to siphon off of the system couldn’t be further from the truth, she said.

“Even though I had that position, I also had the low salary that went with it. And there are many things that you have to deal with in life financially,” she said. “And teaching, unfortunately, is not a career choice that guarantees financial stability.”

Even so, she said it was still the most uplifting and rewarding work she’d ever done.

She’d also like the country to rethink conversations around Social Security and retirement benefits more broadly. She said pensions had gotten into the hands of private equity, potentially imperiling those guaranteed benefits. At the same time, politicians have taken aim at Social Security, suggesting pushing up the retirement age and not moving to fund its coffers.

“We have to get out of this frame of mind that suggests that Social Security that people have paid into for decades is somehow an entitlement. It is a right,” she said.

But, even so, Linda still feels fortunate: She has two adult sons who will always look out for her; she’s even moving to be closer to one. They make good money, and she knows she has a safety net.

“There are so many in this country who are looking at retirement age and throwing up their hands and in total desperation, wondering how they’re going to make it,” she said. “And those are the people I really feel terrible for.”

Are you struggling to retire or not experiencing the retirement you hoped for? Are you working during retirement? Contact this reporter at jkaplan@businessinsider.com.

Read the original article on Business Insider

Pfizer‘s (PFE) stock turnaround has stalled somewhat in August despite an unexpectedly strong June-quarter report, on a misstep for its combination Covid and flu vaccine.

↑
X

NOW PLAYING
How Novo Nordisk, Wegovy And Ozempic Are Changing The Weight-Loss Game For Patients And Investors

Shares topped out in December 2021 and largely tumbled for several years. Pfizer stock looked ready to reverse its fortunes from April through July. But shares skidded after Pfizer said its BioNTech (BNTX)-partnered Covid and flu combination shot generated a low number of antibodies that can handle influenza B strains.

Though it protected against influenza A and Covid, the companies say they may now have to adjust the vaccine. That puts Pfizer behind Moderna (MRNA), which had more promising results for its combination shot.

Promisingly, Pfizer won approval for a hemophilia B gene therapy in the U.S. and Europe, unveiled positive results for a hemophilia A gene therapy and posted a second-quarter beat. In response to the latter, Pfizer hiked its guidance for the year by $1 billion at the midpoint.

Is Pfizer stock a buy or a sell today?

Pfizer Stock Fundamentals

In the June quarter, Pfizer earned an adjusted 60 cents per share on $13.3 billion in sales. Both beat expectations. Earnings declined 11% while sales rose 3% operationally. It was the first quarter since December 2022 that sales increased year over year.

Sales of heart disease treatment Vyndaqel surged 71% to $1.32 billion and easily topped forecasts. Padcev, a cancer drug Pfizer acquired with Seagen, brought in $394 million in sales, coming in above projections for $352.6 million.

Revenue from the Covid vaccine Comirnaty plummeted and missed expectations. But Covid treatment Padcev topped the Street’s call and soared 79%.

For the third quarter, analysts project 60 cents earnings per share and $14.98 billion in sales. Profit would reverse from a year-earlier loss and sales would climb more than 13%.

This year, Pfizer expects adjusted earnings of $2.45 to $2.65 a share and $59.5 billion to $62.5 billion in sales. At the midpoints, earnings would surge 39% as sales pop more than 4%.

Obesity Treatments In Focus

Investors have zeroed in on Pfizer’s efforts in obesity treatment. The company says it plans to send a drug called danuglipron into additional testing. Danuglipron is a daily pill, compared to leading shots from Eli Lilly (LLY) and Novo Nordisk (NVO).

But Leerink Partners analyst David Risinger doesn’t expect Pfizer to have effectiveness and safety test results until 2026. Danuglipron is one of three obesity treatment candidates Pfizer has in testing. The company has a similar drug that mimics GLP-1 — a hormone tied to satiety and stomach emptying — and a third with an undisclosed mechanism.

The field for oral weight-loss drugs is becoming increasingly crowded. Roche (RHHBY), Viking Therapeutics (VKTX), Structure Therapeutics (GPCR), AstraZeneca (AZN) and others are all in this space.

Pfizer Stock And Recent News

Outside of obesity treatment, Pfizer recently launched PfizerForAll, a digital platform to help people connect with health care providers for migraine, Covid or flu. It also connects people with vaccines for Covid, flu, respiratory syncytial virus and pneumonia.

Earlier this month, the Food and Drug Administration signed off on updated Covid vaccines from Pfizer and Moderna. These shots aim to block against the KP.2 strain and are recommended for people age 6 months and older.

Technical Analysis: PFE Stock Tops 50-Day Line

Pfizer stock is trading in line with its 50-day moving average, and remains above its 200-day line. The stock broke out of a flat base with a buy point at 29.73 on July 17, MarketSurge shows. But shares are now well below their buy zone.

In fact, Pfizer stock tiptoed close to a sell zone on Aug. 16, falling more than 6% below its entry. Savvy investors are encouraged to cut their losses when a stock falls 7% to 8% below is entry.

(Related: Keep tabs on chart patterns by visiting IBD’s MarketSurge.)

Pfizer stock has an IBD Digital Composite Rating of 42 out of a best-possible 99. The CR is a measure of a stock’s fundamental and technical measures. Shares also have a Relative Strength Rating of 28, a measure of 12-month performance.

Is PFE Stock A Buy Or A Sell?

Based on savvy rules of investing, Pfizer stock is neither a buy nor a sell. Shares are below their chase zone, but haven’t entered a sell zone. Further, the stock hasn’t made a definitive move below its 50-day or 200-day lines.

But Pfizer stock still has to prove its fundamental and technical merit.

Pfizer is trying to shore up its pipeline to return to the growth it saw at the height of the pandemic. The RSV vaccine and a potential approval in obesity treatment could be key.

To find the best stocks to buy and watch, check out IBD Stock Lists. Make sure to also keep tabs on stocks to buy or sell.

Follow Allison Gatlin on Twitter at @IBD_AGatlin.

YOU MAY ALSO LIKE:

Biotech Stocks To Watch And Pharma Industry News

Want To Get Quick Profits And Avoid Big Losses? Try SwingTrader

IBD Stock Of The Day: See How To Find, Track And Buy The Best Stocks

Watch IBD’s Investing Strategies Show For Actionable Market Insights

Best Growth Stocks To Buy And Watch: See Updates To IBD Stock Lists

Nvidia’s (NVDA) growth metrics aren’t impressing Wall Street like they used to.

Nvidia reported earnings on Wednesday which showed the company’s earnings and revenue grew more than 100% from the prior year. But it also marked the company’s slowest year-over-year revenue growth, 122%, in a year, and the rate of growth compared to the prior year was less than half what Nvidia reported in the first two calendar quarters of 2024.

Shares were down as much as 3.5% early Thursday morning.

And this growth slowdown, D.A. Davidson managing director Gil Luria told Yahoo Finance, is the chief concern with the stock right now and why he maintains a Neutral rating on the AI juggernaut.

“Next year we’re going to have, at the very least, decelerating growth and possibly at some point, revenue declines,” Luria said.

“Where if you look at consensus estimates, sell-side estimates, they are for the growth to continue at very, very high rates that are very hard to justify considering Nvidia’s revenue is these other companies margins.”

At some point, Luria argued, the big tech hyperscalers like Microsoft (MSFT), Amazon (AMZN), Alphabet (GOOGL, GOOG), and Meta (META) are going to slow their spending. And given they represent the lion’s share of Nvidia’s current AI chip sales, that’d likely be a headwind to future revenue growth.

“The estimates for next year and the year after that are starting to get way, way out of control,” Luria said.

Nvidia’s earnings call was still rather upbeat. CEO Jensen Huang described the demand for the AI leader’s new Blackwell chip as “incredible.” And plenty of Wall Street analysts remained bullish on the stock as fears about delays on the Blackwell chip were somewhat eased during the earnings call.

But for investors assessing a stock that has rallied more than 1000% since the start of the current bull market in October 2022, slowing growth appears to be a sticking point. As Jefferies analyst Blayne Curtis wrote in a note to clients, Nvidia’s guidance for current quarter revenue of $32.5 billion — plus or minus 2% — appeared to be “good but not good enough.”

Nvidia’s results also didn’t surprise Wall Street at the same pace that they had been.

The company posted its slimmest upside surprise to Wall Street’s revenue expectations since the start of 2023. Its roughly 5% beat on earnings per share was the narrowest surprise since before the AI revolution kicked off in 2023, too.

“The size of the beat this time was much smaller than we’ve been seeing,” Carson Group chief markets strategist, Ryan Detrick wrote in reaction to the earnings release.

Story continues

“Even future guidance was raised, but again not by the tune from previous quarters. This is a great company that is still growing revenue at 122%, but it appears the bar was just set a tad too high this earnings season.”

Josh Schafer is a reporter for Yahoo Finance. Follow him on X @_joshschafer.

Click here for in-depth analysis of the latest stock market news and events moving stock prices

Read the latest financial and business news from Yahoo Finance

• Shares of Trump Media have tumbled this week, hitting a new record low under $20 per share.

• The stock has sunk since Kamala Harris entered the race and reshuffled election odds.

• The stock also took a hit this month when Trump returned to rival platform, X.

Trump Media continued its recent downward spiral this week, hitting a record low.

The Truth Social owner’s shares fell below $20 each in Wednesday’s session, a first since the company went public in March.

The stock has been sliding since mid-July, fueled by President Joe Biden dropping out of the race and Democrats uniting around Vice President Kamala Harris as the Democratic nominee last month, shaking up the election odds in the process.

Betting market PredictIt currently forecasts a 47% chance of a Trump win, down from 69% in mid-July after a failed assassination attempt on the former president.

In the weeks since its mid-July surge of $40.58, Trump Media has lost 51% of its value amid falling odds of a win for the Republican presidential nominee.

The shares also saw swift declines following Trump’s return to X, a Truth Social competitor, earlier this month ahead of an interview with the platform’s CEO Elon Musk. The stock dropped 5% the day after he made his first post on the platform in three years.

Investors are also likely feeling skittish ahead of the expiration of a lock-up agreement that could allow Trump and other company insiders to start selling shares. The agreement could expire as early as September 20.

The former president has a nearly 60% stake in the company, amounting to over $2.2 billion and accounting for over half his net-worth, according to data from Forbes.

Read the original article on Business Insider