Stephanie Link, Chief Investment Strategist at Hightower Advisors, on Wednesday shared her insights on key stocks, emphasizing Amazon's growing dominance, Palo Alto Networks Inc's (NASDAQ:PANW) cybersecurity potential, Target Corp's (NYSE:TGT) recovery efforts and NextEra Energy Inc's (NYSE:NEE) valuation opportunity.
What To Know: Link highlighted Amazon's expanding market share, which grew by 410 basis points last quarter, with improving profitability. She expects further acceleration in the latter half of the year despite capacity constraints.
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On Palo Alto Networks, she sees a $15 billion annualized revenue opportunity in platformization and views it as a stronger long-term play compared to CrowdStrike Holdings Inc (NASDAQ:CRWD), which she recently sold.
Target, down 24% since February, has struggled with product mix but is showing signs of recovery, particularly in discretionary spending. Link says sustained improvement could restore investor confidence.
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Meanwhile, she initiated a position in Nextera Energy, noting its historically high valuation but seeing an opportunity now that it trades at 18 times price-to-sales. She praised its joint venture with GE Vernova Inc (NYSE:GEV) in natural gas and data centers.
Additionally, Link named Boeing her top 2025 stock due to leadership changes and improving execution. She remains bullish on Palo Alto, Gap Inc's (NYSE:GAP) turnaround under Richard Dixon, Target's resilience and Snowflake Inc's (NYSE:SNOW) AI-driven growth under new management.
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Photo courtesy of Hightower Advisors
Today, after hitting the high near 24,000 in the early session and entering bearish positions, the index fell sharply by nearly over 600 points, immediately recouping yesterday's losses significantly.
Moreover, today it broke the new high again, reaching a maximum of 24,076, but by the end of the market, it fell back by about 70 points, producing a bearish candle. The current trend has not yet been broken, but from the previous low until now, it has risen close to 6,000 points. It is believed that those with positions can continue to hold until there is a clear trend reversal for profit-taking. Those without positions can wait for a pullback to get in. Actually, it is hoped for a quick pullback, as it allows for entry and also provides a healthy breath.
Currently, the outlook remains the same as before. It is believed that even if there is a pullback, it shouldn't be too deep. However, if Futures fail to stabilize and close below 22,350, there may still be room for decline. The chance of Futures falling below 21,400 in the short term should be low, so it is considered that if a significant pullback occurs, it presents a good opportunity to incrementally go long. Recently, there has been a consistent approach to not hold positions overnight, only focusing on immediate trades, as there is no high chasing and no casual short selling.
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