Tom Yeung here with your Sunday Digest.
Last week, I recommended five stocks to buy in 2025 on a Donald Trump election victory. The president-elect is known for his clear intentions, and his second term promises even more of what we saw during his first 2016-2020 go-around. (I realize some of you will love this idea, while others will not.)
To ride this wave, I shared five stocks that focused on his people (Tesla), his oil & gas ambitions (Kinder Morgan, Halliburton), and companies that would do well under fewer cryptocurrency regulations (Coinbase Global, Robinhood Markets). These areas performed marvelously during his first term, and are in pole position to outperform over the coming year.
However, these five stocks are admittedly volatile. Coinbase Global Inc. (COIN) opened as much as 20% higher the day after I recommended the stock before settling at a 4% gain. Tesla Inc. (TSLA) rose 8% before ending flat for the week. That makes a buy-and-hold strategy 100% necessary, since only time can smooth out these lumps.
That’s not ideal for many investors, especially those who prefer shorter-term trades to make consistent cash. Americans have bills to pay… and the cost of necessities from healthcare to housing is outpacing income growth.
That’s why quant investing legend and InvestorPlace Senior Analyst Louis Navellier is hosting a special presentation, where he discusses how he’s helped people generate income streams of $40,000… $50,000… even $60,000 a year.
He’s calling this the “Quantum Cash Project” and he’s used it to identify fast-moving, cash-producing trades this year on firms like:
- YPF Sociedad Anonima (YPF) for a 187% gain.
- CECO Environmental Corp. (CECO) for a 135% gain.
- And Builders FirstSource Inc. (BLDR) for a 95% gain.
You can check that presentation out here.
In the meantime, I’ve been allowed to share three of the Quantum Cash system’s picks with you. These are firms that we expect will rise over the next one to three months… and that have lower volatility profiles to make it easier to lock in short-term gains.
The Anti-Costco Play
In 2023, shares of Costco Wholesale Corp. (COST) rose 44% as affluent Americans “traded down” their shopping habits to sidestep inflation. Even though GDP numbers were rising, Americans simply did not feel good. The University of Michigan’s Consumer Sentiment Index sagged below 70, well below its long-term average of 85.
Donald Trump’s election is quickly changing that sentiment among his rural constituents. Step into any small-town bar, and there’s a new sense of energy… of optimism… of hope that America is on track to being great again. (As a side note, the opposite is happening in more urban areas.)
Nowhere is this clearer than at Texas Roadhouse Inc. (TXRH), the owner of its eponymous steak house chain. Whereas restaurant chains like Red Lobster and TGI Fridays are going bankrupt, my Southern friends observe that Texas Roadhouse locations are seeing unprecedented foot traffic. Even locations in the suburban Northeast (where I live) seem to fill up early and stay crowded through the night.
The company has managed to capture the energy of Trump’s election victory.
Analysts are also modeling an improvement in fortunes. Over the past 30 days, analysts have nudged their 2025 earnings estimates another 4%, bringing their total year-to-date revisions to 19%.
That’s a strong sign for future gains, as Louis’s Quantum Cash Project system has shown. Upward analyst revisions are one of the best indicators of improving fortunes, and Texas Roadhouse falls squarely in the camp.
Of course, restaurants remain a difficult business over the long term. Few full-service restaurant chains survive more than 20 years, and even formerly popular chains like Lone Star Steakhouse can be mismanaged out of existence. (Only fast-food companies seem to avoid this generational fate.)
Texas Roadhouse will eventually lose its luster and be replaced with newer competitors. But over the next several months, don’t be surprised if this newfound feeling of optimism among its customers turns into very real profits.
The Momentum Play
Utility equipment maker Valmont Industries Inc. (VMI) is a stable earner thanks to its quality products, wide service network, and a general unwillingness by utility companies to use lower-grade equipment. Many of Valmont’s products involve large structures that must withstand high wind speeds, heavy ice loads, and high voltages. So, customers often pay higher prices to offset the risk of catastrophic failure.
Donald Trump’s 2016 win put VMI on a faster growth track. During the election in 2016, Valmont traded in the $130 range. Within two months, shares of VMI had moved into the $140 range. And by the end of Trump’s first year in office, VMI had risen into the $160s.
Even though no major infrastructure bill passed during Trump’s first term, his constant focus on “Infrastructure Week” was enough to drive expectations higher.
The fundamentals this time around are even better. Many of Trump’s plans involve building out more infrastructure, especially transmission lines to help AI-focused data centers get set up. Telecom companies are also beginning to invest more into aging wireless networks.
Valmont’s earnings forecasts have consequently begun to rise. Analysts have pushed their 2025 earnings per share estimates up another 2%, bringing their year-to-date upgrades to 10% – a significant amount for an ordinarily stable firm.
That should lead to more short-term gains as markets catch up to these rosier expectations. And if President Trump begins to talk up “Infrastructure Week” again, then shares could have as much as 20% upside as investors rush in.
And indeed, Louis’s Quantum Cash Project system is bullish on this conservative pick.
Thriving on Controversy
Shares of the New York Times Co. (NYT) traded flat in the year leading up to the 2016 election. Though record amounts of advertising dollars were spent by political campaigns, these sums largely went to TV and online ads. Advertising revenues at NYT declined 9% that year.
The newspaper’s fortunes quickly changed in 2017 after Donald Trump became president. The 45th president triggered a constant deluge of news, and companies like the Times profited handsomely by reporting on every detail. Subscription revenues surged 14.5% that year, as digital subscribers piled in.
“This was a strikingly successful year for The New York Times Co.,” CEO Mark Thompson reflected in his Q4 earnings call the following year. “Our newsroom and opinion departments did brilliant work, with coverage of the new Trump administration front and center… And in 2017, [our high-quality journalism] paid off for our tens of millions of users and for the company itself.”
Shares of the New York Times rose 40%.
Louis’s Quantum Cash Project system sees a similar probability of gains this time around. Analysts have nudged up their 2025 earnings estimates another 1% since the election, adding to their 34% upward revisions since 2023. This suggests that NYT shares should rise in the coming one to three months.
The fundamentals support this view. The president-elect is already reaccelerating the news cycle, creating content for the New York Times to cover. As of writing, we’ve seen Donald Trump name Elon Musk to co-lead a “Department of Government Efficiency” task force… name controversial congressman Matt Gaetz as the next Attorney General… and choose a Fox News host to be the next Secretary of Defense.
These are choices the New York Times editorial board has called “reckless” and “irresponsible.” And whether or not you agree with such statements, enough Times fans certainly do.
In addition, the Times will likely see an influx of new subscribers leaving The Washington Post. The D.C.-based newspaper recently lost at least 250,000 subscribers (about 10% of its total) after refusing to endorse a presidential candidate for the 2024 election. Meanwhile, The New York Times had no trouble endorsing Kamala Harris as “the only patriotic choice for president” in September.
Much like my previous recommendation of Fox Corp. (FOXA) – up 13% since then – some companies are destined to succeed when controversy saturates the news.
The Quantum Cash Edge
In late 2023, America experienced a “melt-up” rally where stock prices rose far faster than their underlying earnings. For months, it felt like investors could do no wrong.
The bonanza eventually ended in July 2024, when large tech companies started reporting worse-than-expected earnings. The Nasdaq Composite index slumped 13%, and former high-flying stocks like Nvidia Corp. (NVDA) dropped as much as 27%.
Flat-footed investors were totally caught off guard.
We’re now facing a new melt-up rally with Donald Trump’s election win. Shares of tech stocks have rallied 5% since November 5, and speculative plays like Bitcoin (BTC) have surged by a third. Dogecoin (DOGE) – a poster child of too much money chasing risky assets – has more than doubled since the election.
Plus, more tailwinds are on the horizon. The Federal Reserve is set to cut interest rates another 25 basis points over the next two months… the “Santa Claus rally” is around the corner… and the “January effect” right after that…
What can possibly go wrong?
As Louis Navellier will show in his special presentation, now is not the time to get careless. Though Trump’s election last week acted as a huge catalyst for stocks, there’s only so much that the Trump Boom can bring. Investors still need cash and income for the next four years, and there will be selloffs along the way.
To navigate this, Louis is talking about his Quantum Cash Project, a stock grading system that identifies stocks ripe for short-term gains, which can then be treated like income.
For example, an initial $7,500 investment in past recommendations paid out a $3,375 windfall in a one-month timeframe… $4,650 in three months… $11,925 in five months… and $16,875 in 11 months…
And his Quantum Cash Project is designed to identify payout opportunities regardless of economic uncertainty, persistent risks of inflation, or any market condition.
In his recent presentation, Louis introduces this income-generating approach that he projects will identify at least $60,000 in potential income opportunities over the next 12 months.
The system requires no special skills, employs no risky leverage, and can generate income whether you’re working or retired.
To learn more about this tested strategy and how it works, click here to watch Louis’s special presentation.
And I’ll see you back here next Sunday.
Regards,
Thomas Yeung
Markets Analyst, InvestorPlace