The market sold off hard on Friday after President Trump announced plans for a new 100% tariff on all Chinese imports starting November 1st. You likely remember how hard the market sold off in April when Trump first announced his “Liberation Day” tariffs (it was ugly), but then rebounded sharply demonstrating (yet again) that fear creates opportunity. This report tests out a new format for the Blue Harbinger Weekly and shares 4 top stock ideas for the week ahead.
The Blue Harbinger Weekly:
For starters, here is a new updated PDF report highlighting important data, graphs and qualitative notes on:
The BH Disciplined Growth Portfolio
The BH High Income Portfolio
The BH20 Growth Stocks (Fast-Paced)
The BH Fear Index
The PDF is designed to be printable and “zoom-in-able” so you can easily read it on a smart phone (if that is your preference). It priovides all kinds of critical data I like to use in making investment decisions, and hopefully it is helpful to you too (in identify opportunities worth considering based on your own unique situation).
The Week Ahead: 4 Top Stocks
And here are 4 top stock ideas from the report for you to consider for the week ahead:
1. Nebius (NBIS): A Fast-Paced Growth Stock
Nebius provides AI infrastructure with GPU clusters and cloud platforms for generative AI. Its revenue is expected to grow in the triple digits (percentages) this year and next, as it continues to be a supreme beneficiary of the AI megatrend as an Nvidia preferred solution and with huge deals with hyperscalers (for example its latest Microsoft GPU contract accelerates growth further). Shares were down on Friday, but still up for the week as heavy money continues to flow into the shares on accelerating volume. The shares are up 367% this year, with (incredibly) more room to run as the AI megatrend continues.
2. Paylocity (PCTY): A Disciplined Growth Stock
Paylocity is a payroll and “human capital management” Software-as-a-Service” (SaaS) company with healthy growth, strong fundamentals and a low valuation (it trades at only 5 times sales). The 19 Wall Street analysts covering the stock believe the shares have 46% upside, and the shares are starting to turn the corner as the “Money Flow Index” has switched from oversold to signficantly improving over the last two weeks. Paylocity is an out-of-favor Blue Harbinger holding (Disciplined Growth Portfolio) with signifcant contrarian upside from here.
3. Ares Capital (ARCC): A High Income Investment
Ares is a big dividend (double-digit yield) busines development company (BDC) and the shares are currently down and very oversold (as per “Money Flow Index”) as investors have fearfully soured on the publicly-traded private credit space. However, Ares is the blue chip leader in the space, trading below book value, and providing an attractive entry point for disciplined long-term income-focused investors. Ares is a holding in the BH High Income Portfolio.
4. Vistra: A Top AI Megatrend Beneficiary
Vistra is an integrated retail electricity and power generation company, set to benefit handsomely from the energy demands of the AI megatrend, and the shares just sold off hard on Friday. Vistra trades at a very attractive 0.8x forward “Price-to-Earnings / Growth” (fPEG) ratio. Last week’s sell off (shares down over 6% on Friday) form a new base as they were already oversold (as per the money flow index) and are already accelerating (on an MFI basis). Wall Street rates the shares a “strong buy” believing they are 22% undervalued, but realistically they have more long-term upside than that (considering the double digit revenue growth expected for this year and next, and considering the 5-year expected earnings per share grow is a healthy 33%). Vistra is a current position in the BH Disciplined Growth Portfolio.
The Bottom Line:
You can view more details on all four of the stocks described above in the BH Weekly pdf (here). And depending on how bad President Trump’s latest tariff tantrum gets, we may get even better entry points in the week ahead. However, all of these stocks likely have healthy upside in the weeks, months and years ahead. You can also view more top ideas in the PDF as you continue to manage your own investments to meet your own unique needs and situation. Disciplined goal-focused investing continue to be a winning strategy.