Growth & Total Return Weekly Chat

This is the forum for Growth & Total Return discussion on Seeking Alpha. A new chat begins every two weeks, and all previous blogs are listed in chronological succession on the main chat page. We won’t be doing any comment cleanup in the new chat, and users will always be able to refer back to previous discussions.

Which sector do you think will provide the best total growth opportunities in the next year?

A) Technology

B) Healthcare

C) Financials

D) Utilities

E) Other

More on Today’s Markets:

Exactly two years have passed since Meta’s (NASDAQ:META) stock has reached rock bottom, amid worries of reckless spending, growth dead-end, competition from TikTok, and struggles to deal with Apple’s (AAPL) ATT. And boy, how things have changed. Besides Nvidia (NVDA), Meta is the top performing big-tech stock, as Mark Zuckerberg answered virtually all doubts, and then some.

GSK plc (NYSE:GSK) is a biopharmaceutical company with a long history of driving innovation in developing vaccines, specialty medicines, and general healthcare. The company has important products such as Shingrix and Arexvy in its vaccine segment. GSK also presents a strong portfolio of HIV and oncology therapeutics. I also believe that GSK has made some decent progress in its legal battles recently, which somewhat de-risks its investment profile going forward. But more importantly, I think GKS has two major growth drivers, Shingrix and Arexvy. This is why I believe its current relative undervaluation seems unjustified. Hence, I ultimately rate GSK a “Strong Buy” ahead of its upcoming Q3 earnings report.

Tesla (NASDAQ:TSLA) (NEOE:TSLA:CA) stock closed 22% higher for the day. It rallied 11% before the bell Thursday after the company reported 3Q24 earnings the evening before, with revenue up 7.8% year-over-year to $25.18 billion and EPS at $0.72, above the consensus of $0.60. I think what really impressed investors is the GAAP gross margin at 19.8%, significantly over the consensus of 16.8%, accounting for the second consecutive gross margin expansion after declining for 6 quarters straight. I last wrote on Tesla before the call, when CEO Elon Musk said the record quarter was accompanied by the production of its 7th million vehicle. On that note, management forecasts vehicle production to increase by 20%-30% in 2025, and Cybercab production should dramatically increase by 2026. With the stock surge, Tesla has added more in market cap than the market caps of General Motors (GM) and Ford Motor (F) combined and is now the 12th most valuable company in the U.S., surpassing Broadcom (AVGO), Walmart (WMT), and JPMorgan Chase (JPM). On the call, Elon shaded Waymo and made the following distinction: “Waymo’s entire fleet is less than – they’ve less than a 1,000 cars. We make 35,000 a week.”

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