Market Outlook and Stock Recommendations for March 2025

Vistra is deemed overvalued, trading at $113 against a fair value of $53, due to excessive market expectations for electricity demand growth. Eli Lilly, rated 2 stars, is also a sell, trading at a 48% premium despite strong growth forecasts, as competition in the GLP-1 market looms. In cybersecurity, CrowdStrike is at a 30% premium, while Zscaler lags behind; Palo Alto is preferred for its better valuation and economic moat.

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Asian Stocks Mixed Ahead of US Inflation Data and Earnings Reports

Asian stocks showed mixed results as investors awaited key U.S. inflation data that could impact Federal Reserve rate cuts. The Nikkei 225 rose slightly, while the Kospi remained stable amid political turmoil in South Korea. U.S. markets experienced modest gains, driven by lower-than-expected wholesale inflation, although concerns about rising Treasury yields and Big Tech stock declines persisted.

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Asian Stocks Mixed Ahead of Key US Inflation Data Release

Asian stocks showed mixed results as investors awaited key U.S. inflation data that could impact Federal Reserve rate cuts. Japan’s Nikkei rose 0.1%, while South Korea’s Kospi gained 0.2% amid political turmoil. In the U.S., the S&P 500 edged up 0.1%, driven by lower-than-expected wholesale inflation, although concerns over rising Treasury yields and disappointing earnings from major companies like Eli Lilly weighed on market sentiment.

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Market Update Applied Digital Soars Eli Lilly and Signet Jewelers Struggle

Applied Digital shares surged after Macquarie Asset Management announced a potential $5 billion investment in its HPC data centers. In contrast, Eli Lilly’s stock fell nearly 7% following a lowered revenue forecast for 2024, while Boeing faced challenges with declining plane deliveries, leading to a 2% drop in its shares. H&E Equipment’s stock more than doubled after a $4.8 billion acquisition by United Rentals, and Signet Jewelers saw a 22% plunge due to weak holiday sales and lowered guidance.

about Market Update Applied Digital Soars Eli Lilly and Signet Jewelers Struggle

Wall Street Gains on Positive Inflation Data Despite Key Stock Drops

U.S. stocks rose slightly following positive wholesale inflation data, with the S&P 500 up 0.1% and the Dow Jones gaining 134 points. However, declines in major companies like Eli Lilly and Nvidia limited gains. H&E Equipment Services surged over 100% after a buyout announcement, while Signet Jewelers fell 21.5% due to disappointing holiday sales.

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