FintechZoom Intel Stock: Is LCID Stock the Next Big Thing in EVs

Economic

Summary:

Curious about Lucid Group's stock performance? Discover why LCID stock could be a game-changer in the electric vehicle market. Explore its financials, competition, and growth potential for 2024!

Intel Corporation (NASDAQ: INTC) has been a cornerstone in the technology sector for decades. As a leading semiconductor company, Intel has shaped the computing industry through its innovations in processors, data centers, and cloud computing technologies. While Intel has faced challenges from competitors like AMD and NVIDIA in recent years, it remains a critical player in the global tech landscape. In this article, we will dive into Intel’s recent performance, future outlook, and how it continues to hold its place in the semiconductor industry, especially for investors keeping a close eye on FintechZoom's updates.

Intel's Performance in 2024

The first half of 2024 was a mixed bag for Intel. Despite the company's aggressive cost-cutting measures and restructuring efforts, its stock performance has faced headwinds, largely due to the broader semiconductor industry downturn. Global supply chain disruptions, reduced PC demand, and intense competition have weighed on Intel’s earnings and market share. However, Intel's efforts to shift toward high-growth areas such as data centers and artificial intelligence (AI) have started to show promising signs of recovery.

In Q3 2024, Intel's stock saw a modest rise, as the company reported better-than-expected earnings, driven by its data center business and growing demand for AI applications. Revenue from its Client Computing Group, which includes PC chips, saw some softness, but its AI and data center divisions were strong performers. Intel has been investing heavily in AI technologies, with a focus on creating advanced chips that power data centers and high-performance computing systems.

Competitive Landscape

Intel’s competitive position in the semiconductor market has been increasingly challenged by rivals like AMD and NVIDIA. AMD has made significant inroads with its Ryzen processors and EPYC data center chips, which have been gaining market share due to their superior performance. Similarly, NVIDIA's dominance in the AI and graphics processing unit (GPU) markets continues to pressure Intel’s business.

However, Intel has not been sitting idle. The company is making a massive bet on its IDM 2.0 strategy, which involves building new manufacturing facilities and ramping up its chip production capacity to meet future demand. This approach is crucial as Intel seeks to reduce reliance on external suppliers and regain its leadership in the global semiconductor market. Intel's upcoming Meteor Lake processors, set to launch in 2025, are expected to be a game-changer for the company, featuring advanced architecture and AI integration designed to outperform current-generation chips.

Intel's Financials and Valuation

Despite the competitive pressures, Intel remains a financially sound company with a strong balance sheet. In 2024, Intel’s revenue reached $80 billion, with its data center segment contributing significantly to growth. The company also announced a $10 billion stock buyback program, showcasing its confidence in the long-term value of its shares. Intel’s dividend yield of around 3.5% remains attractive for income investors, further adding to its appeal as a stock with both growth and income potential.

Intel’s forward price-to-earnings (P/E) ratio currently sits at around 15, making it relatively undervalued compared to peers like NVIDIA, which trades at a much higher multiple. For value investors, Intel offers an attractive entry point, particularly as the company continues to push forward with its restructuring and innovation strategies.

Challenges Ahead

While Intel’s long-term outlook remains promising, the company faces several short-term challenges. Supply chain constraints and a global slowdown in PC demand could hinder its revenue growth. Additionally, Intel's ability to execute on its ambitious IDM 2.0 strategy will be critical in determining its future success. If Intel can ramp up its manufacturing capabilities and deliver on its next-generation processors, it could reclaim lost market share from AMD and NVIDIA.

Another key challenge for Intel is geopolitical tensions. The U.S.-China trade war and restrictions on semiconductor exports have created uncertainty for global tech companies, including Intel. With China being a significant market for semiconductor products, any further escalations could impact Intel's revenues and future growth prospects.

Industry Trends and Market Sentiment

Intel's long-term success hinges on its ability to capitalize on several key industry trends. AI, 5G, and the Internet of Things (IoT) are areas where Intel has been investing heavily. The company’s AI strategy involves developing high-performance chips that power data centers, cloud computing, and autonomous vehicles. Intel's leadership in AI could position it as a key player in the next wave of technological advancements, driving revenue growth in the years to come.

Moreover, Intel's partnership with various tech giants, including Google and Microsoft, positions it well to capitalize on the growing demand for data centers and cloud infrastructure. As more companies move their operations to the cloud, the demand for high-performance chips that power these services is expected to rise, which bodes well for Intel's data center business.

FastBull's Perspective on Intel’s Outlook

According to FastBull, a global financial information platform, Intel's stock is currently considered undervalued compared to its peers. FastBull analysts highlight Intel's strong focus on research and development, particularly in the AI and data center spaces, as a positive catalyst for future growth. They point out that while Intel has faced competition, its strategic investments and commitment to regaining market leadership are reasons for long-term optimism. FastBull's reports suggest that investors looking for exposure to AI and data center growth should consider Intel as a potential buy, especially given its attractive valuation and dividend yield.

FastBull also notes that Intel's IDM 2.0 strategy could significantly enhance its production capabilities, reducing reliance on external suppliers and boosting profitability in the long run. The platform remains cautiously optimistic about Intel's ability to navigate its short-term challenges and deliver value to shareholders.

Conclusion

Intel remains a compelling stock for long-term investors, particularly those looking for exposure to the semiconductor industry, AI, and data center technologies. While competition from AMD and NVIDIA remains fierce, Intel's focus on innovation, restructuring, and strategic investments positions it well for future growth. The company's stock is attractively priced, with a solid dividend yield that appeals to income-focused investors.

As FintechZoom has noted in its analysis, Intel’s future success will depend on its ability to execute on its IDM 2.0 strategy, ramp up manufacturing, and deliver cutting-edge products that meet the growing demand for AI and cloud computing. Investors willing to take a long-term view may find Intel to be an excellent addition to their portfolios in 2024 and beyond.

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Bruegel

Economic

A shared diagnosis

The significance of the report on the future of European competitiveness, drawn up by former Italian prime minister and European Central Bank governor Mario Draghi (Draghi, 2024), is that it offers a thorough diagnosis of the weaknesses and opportunities of the economic and institutional setting of the European Union. The report, published 9 September, rightly points out that, given the negative long-term demographic trends facing the EU and the lack of a common integrated policy on migration, the only driver of sustainable European growth is labour productivity, and mainly its elusive but crucial component represented by total factor productivity.

Draghi is also correct in stating that three conditions must be met to boost EU productivity: (i) the European economy must catch up technologically with the United States and China by implementing streams of innovation to feed both the digital and green transitions; (ii) the EU needs more start-ups, which will eventually scale-up and be able to attract the highly-qualified people who today are leaving Europe; (iii) meeting these objectives should be combined with the construction of a unified security and defence framework, which is not only a necessary response to the geopolitical conflicts at the EU borders but is also needed to protect value chains and guarantee the availability of technological inputs.

This diagnosis has two implications. First, the EU should make fundamental economic and institutional changes in order to radically redesign its production model. Second, these changes are also required to safeguard the European social model that, despite a certain weakening, is still able to guarantee the world’s highest level of social inclusion.

As Draghi notes, the current EU per-capita income growth rate would not be enough to make the resources available for the additional investments needed to implement these transformations and safeguard the current level of social protection. According to Draghi (2024), combining the green and digital transitions would require around €800 billion annually in additional investment over the next decade. And the social impact of these economic changes would mean additional costs to improve education and to include the most vulnerable people (including migrants) in the new economy.

The EU must therefore improve its growth performance to free resources to finance additional investments, but it cannot boost growth without innovative and sustainable reforms and investment. Draghi puts forward a convincing set of policies to break out of this catch-22 situation, including ways to boost productivity growth.

In line with another report by a former Italian prime minister, Enrico Letta’s April ‘Much more than a market’ report (Letta, 2024), Draghi stresses the importance of completing the single market in areas where pervasive national segmentation persists. The best examples are high-tech services, such as telecommunications, and the financial sector. Overcoming market fragmentation would mean less duplication in national expenditures and would ensure that the necessary consolidation of firms to build companies at European scale does not hinder market competition. It would also allow the exploitation of economies of scale and scope and create greater opportunities for innovations and their diffusion.

A true single market in the financial sector would enable the mobilisation of the huge wealth held by European households and firms, and its allocation to the green and digital transitions. As is often repeated , the completion of EU capital markets union is crucial, as banks are unsuited to finance this type of investment, which is, so to say, long in ideas and short in collateral.

Draghi makes very granular recommendations on how to implement new sectoral and horizontal policies. His leitmotif is ‘joined-up policy-making’ to achieve a greater degree of common planning that should be articulated at all levels of decision making. For this, it is necessary to overcome unanimity requirement that often paralyses the EU by giving countries effective vetoes. Similarly to Letta (2024), Draghi suggests recourse to a ‘28th regime’ that would allow companies to opt out from national regulatory frameworks and follow rules valid everywhere in the EU.

Embracing European public goods

Draghi recognises that radical changes to the European production model to catch up with the technological frontier, succeed in the green transition and reduce dependence on external demand cannot be fully entrusted to market mechanisms and financed entirely via the mobilisation of private wealth. To deliver such a dramatic re-orientation in investment, public intervention and regulation are needed at both EU and national levels.

European policymakers face here a dilemma. The EU has agreed new fiscal rules that require the high public debts of EU countries to be put on a downward path to increase fiscal space (see Darvas et al, 2024). If policymakers apply these in a loose manner, they are unlikely to build the mutual trust necessary to step up interventions at EU level. But strict enforcement of the new fiscal framework would constrain the room for manoeuvre at national level. Overcoming the dilemma is difficult. The new fiscal rules allow more gradual fiscal adjustment but this requires commitments from governments to carry out reforms and investments, especially those in line with EU-wide priorities. Therefore, as a first step, the European Commission should implement this clause very seriously.

However, the main focus should be enabling a substantial increase in the EU budget and building a central fiscal capacity, as recommended by Buti et al (2024). On the demand side, a larger and refocussed multiannual EU budget could compensate for tighter national fiscal constraints in the short term imposed by the fiscal rules. On the supply side, a dramatically reformed EU budget would stimulate other investment and thus could be the linchpin of a new European industrial policy centred on the production of European public goods (EPGs) aimed at delivering the triple green, digital and social transition.

In our reading, Draghi’s recommendations amount to a combination of a reformed EU budget establishing a central fiscal capacity with a new European industrial policy. This combination legitimises the recurrent statement, made in his report, that the green and innovative transitions should be made compatible and should even strengthen the European social model.

This would have an overarching implication: a new European production model should not be an attempt to copy the US economy. The EU needs capital markets union and the development of private equity; however, these financial breakthroughs, if they can be achieved, must be regulated to support innovative and sustainable production and should avoid feeding market distortions.

The EU needs innovative and cross-border companies in services and manufacturing to reduce gaps relative to the US in digital activities and artificial intelligence. However, this does not imply creating excessively large companies that acquire too much power and end up threatening democracy. Therefore, while Draghi rightly criticises the excess of regulation in EU countries as a possible barrier to innovation, this should not be mistaken for advocacy of an across-the-board weakening of regulation or giving up on European regulation that is essential to combine a new production system with the EU social model.

Reforming the EU production model is also key to harmonising the EU’s domestic and international strategies. The EU can no longer benefit from purchases of cheap energy and raw materials, needed to produce goods that are mainly exported to China. European policymakers must recognise that a ‘neo-mercantilist’ growth model, relying on net exports, is incompatible with the EU’s future prosperity and the new international order. This model has negative internal and external implications. Internally, persistent current-account surpluses are not an indicator of high competitiveness but represent the flipside of insufficient aggregate investment compared to aggregate savings. Externally, the export-led model makes the EU’s economies vulnerable to the weaponisation of trade and currency by international competitors.

In short, to achieve a balance between efficiency, security and equity, and between fiscal, environmental and social sustainability, the EU must follow its own path without trying to imitate the US economic and social model.

Conditions for sharing economic sovereignty

In our reading of Draghi (2024), the centralised financing and production of EPGs would become the core of the new European model. But it is sure to be difficult to convince EU governments to pursue this opportunity.

Finding a way forward should involve recognition of two factors (Buti and Messori, 2024). First, it should be acknowledged that the financing and production of EPGs require transfers of national sovereignty, with different costs for EU countries, depending on the relative strengths of their national states and intermediate institutions: countries at the extreme ends of the spectrum (ie very strong and very weak countries) tend to have smaller costs than countries in between.

Second, there are different types of EPG. The simplest way to capture this is to distinguish between EPGs that would boost innovation (EPG-I) and EPGs that pursue greater solidarity (EPG-S) (Buti and Messori, 2024). The varying national appreciations of the net benefits of EPGs (the difference between their benefits and costs) arise because EU countries have different preferences in relation to the two EPG types: countries closer to the technology frontier prefer EPG-I while weaker countries prefer EPG-S.

This results in a diversified combination of national interests that will be difficult to reconcile. However, it can be done. Over and above the recommendations in Draghi (2024), the EU must ensure a balanced combination of EPG-Is and EPG-Ss. Closing the gap to the technological frontier is a priority and so it might be tempting to put all the political capital in the EPG-I basket. However, this would not forge the necessary consensus between EU countries and would be insufficient to safeguard the European social model.

Some concrete steps to ease the reconciliation of national interests (Buti and Messori, 2024) are:

EPGs must not lead to the ‘transfers union’ so greatly feared by northern EU countries. An example of a politically acceptable EPG-S is the SURE programme launched during the pandemic to shore up labour markets . SURE could be reactivated, with an additional clause on minimum investments in education and the re-skilling of human resources (migrants included), specifically targeted at the green and digital transition.

To overcome the resistance of sceptical countries to transfers of sovereignty to the EU, the selection of both EPG-I and EPG-S must create tangible added value that generates sizeable net benefits, to compensate for the high costs of sharing sovereignty. An example could be the construction of a ‘European Railway Silk Road’, ensuring fast and efficient connections across the EU for freight transport.

Though the most fragile EU countries tend to prefer EPG-S, their preferences can shift and become more aligned with those of stronger countries if they can close their gaps to the technological frontier. Reaching this result is a joint responsibility: weaker countries should effectively implement their post-pandemic National Recovery and Resilience Plans, while the EU should put in place an efficient system for diffusion of innovative outputs.

Meeting the ambitious goals set out Draghi (2024) requires the EU to change gear. Implementing Draghi’s main proposals would amount to signing a new political and institutional contract between member states and EU institutions. Agreeing and implementing this contract will be difficult – but it’s not impossible.

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Justin

Economic

Germany’s government is poised to cut its prediction for Europe’s biggest economy, and now expects no expansion at all this year, according to people familiar with the matter.

Officials in Berlin are set to cut their forecast for growth in 2024 to — at best — stagnation, down from 0.3% previously projected, said the people, who declined to be identified because the predictions remain confidential for now.

Such an outcome would mean yet another lost year for an economy that has been weighed down by the weakness of its industrial sector, amid the shutdown in gas supply after the invasion of Ukraine, as well as feeble Chinese demand and its struggle to pivot to electric vehicle production.

The prospect of no growth is an effective admission of defeat by the coalition government and another blow to the record of Chancellor Olaf Scholz, who hasn’t seen the economy grow for two consecutive quarters since taking office in December 2021.

With an election now less than a year away, it also narrows the window perilously for him to achieve any meaningful pickup before going to voters, whose discontent has already made itself known this year in ballots for the European Parliament and in eastern states.

Traders now see a roughly 80% chance of a quarter-point reduction next month, swiftly off the back of a move in September, as signs keep mounting that the euro-area economy is slowing.

The government’s final estimate for 2024 might come in even weaker than zero growth for Germany depending on industrial orders and output data due shortly before the release of its updated forecast for gross domestic product (GDP) on Oct 9, the people said.

Economy Ministry officials are currently working on the new projection, which could still change before its final release.

No expansion, if that can be achieved, would still exceed the result of a 0.1% contraction anticipated by the nation’s leading economic institutes in the past week.

A string of bad news — from Volkswagen AG’s threat to close factories in Germany to Intel Corp’s decision to postpone a €30 billion (US$33.5 billion or RM138.53 billion) investment decision for a new chip plant in the country’s east — underlines the additional headwinds bearing down on the economy.

Together with weak demand from China and the risk of Donald Trump returning to the White House, Germany is heading towards a perfect storm, which could depress GDP even further, one of the people said.

Weaker growth prospects would dent tax revenues, which could further complicate efforts in Scholz’s ruling coalition to close a budget gap in the 2025 finance plan. However, it would also allow more net new borrowings — roughly an additional €2 billion — under a debt rule that allows the government to take on more debt in economic difficult times, the people said.

A spokesperson for the Economy Ministry didn’t immediately respond to requests for comment.

Source: The edge markets

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Glendon

Economic

The third quarter of 2024 has been a pivotal period for dividend investors, with several companies delivering stellar returns and maintaining strong dividend payouts. As inflation concerns persist, market volatility remains high, and interest rate hikes slow down, dividend stocks have become increasingly attractive for investors seeking steady income and stability. This article takes a closer look at the top-performing dividend stocks of Q3 2024, examining their financial performance, dividend yields, and future outlook.

1. Apple Inc. (AAPL)

Dividend Yield: 0.6%

Q3 Performance: +18%

Market Capitalization: $3.3 trillion

Apple continues to be a favorite among both growth and dividend investors. Despite its relatively modest dividend yield of 0.6%, Apple's consistent payout, coupled with its robust stock price performance, has made it one of the top-performing dividend stocks in Q3 2024.

In Q3, Apple reported solid earnings, driven by strong demand for its iPhone 15 series and growth in its services segment, including Apple Music, iCloud, and App Store revenues. Apple's ability to generate substantial cash flow has allowed it to maintain regular dividend payments while reinvesting in future growth.

Outlook: With the tech giant continuously innovating and expanding its ecosystem, Apple’s dividends are expected to grow modestly over time. While its yield remains lower than more traditional dividend stocks, the stock's growth potential and financial strength make it a reliable choice for long-term dividend investors.

2. ExxonMobil Corporation (XOM)

Dividend Yield: 3.7%

Q3 Performance: +10%

Market Capitalization: $460 billion

ExxonMobil’s strong performance in Q3 2024 was driven by elevated oil prices and higher demand for energy products. As one of the largest integrated oil companies, ExxonMobil has consistently offered a high dividend yield, making it an attractive option for income-seeking investors. The company's dividend payout remains well-supported by its cash flow, which saw a significant boost due to rising crude oil prices.

Despite some concerns over global oil demand fluctuations, ExxonMobil has successfully maintained its dividend payout ratio and increased shareholder returns through stock buybacks.

Outlook: With energy prices likely to stay elevated amid geopolitical tensions and ongoing supply chain constraints, ExxonMobil is well-positioned to continue rewarding shareholders with attractive dividends.

3. Johnson & Johnson (JNJ)

Dividend Yield: 2.8%

Q3 Performance: +7%

Market Capitalization: $420 billion

Johnson & Johnson, a healthcare giant, is known for its reliability as a dividend-paying stock, with a track record of increasing its dividends for 61 consecutive years. In Q3 2024, Johnson & Johnson continued to benefit from strong demand for its pharmaceutical products and healthcare devices. The company’s balance sheet remains solid, and its ability to generate stable cash flow has kept its dividend payments secure.

Investors continue to favor Johnson & Johnson for its defensive characteristics, especially during periods of market volatility. Its broad diversification across pharmaceuticals, consumer health products, and medical devices ensures it remains resilient even when certain sectors face headwinds.

Outlook: With ongoing innovation in the pharmaceutical sector and a solid portfolio of consumer products, Johnson & Johnson is expected to maintain its position as a top dividend-paying stock for the foreseeable future.

4. Procter & Gamble (PG)

Dividend Yield: 2.4%

Q3 Performance: +9%

Market Capitalization: $360 billion

Procter & Gamble (P&G), a leading consumer goods company, has long been a staple in dividend portfolios. The company’s strong Q3 2024 performance was bolstered by increased sales in its health, hygiene, and home care products. P&G’s ability to pass on higher costs to consumers has helped protect its margins, even in the face of rising input costs due to inflation.

P&G's dividend payout is well-supported by its stable revenue streams and its diverse product lineup, which includes household names like Tide, Gillette, and Pampers. The company has been able to increase its dividends annually for 67 years, making it one of the most consistent dividend stocks on the market.

Outlook: As a consumer staple, P&G is expected to continue delivering reliable dividend growth, making it a solid choice for investors seeking stability and steady income.

5. Coca-Cola (KO)

Dividend Yield: 3.2%

Q3 Performance: +5%

Market Capitalization: $260 billion

Coca-Cola remains a favorite for dividend investors thanks to its high yield and consistent dividend payments. In Q3 2024, Coca-Cola’s performance was driven by strong global demand for its beverages, particularly in emerging markets where growth remains robust. The company’s diverse product portfolio and strategic partnerships continue to provide stability, even in uncertain economic times.

Coca-Cola has a long history of dividend increases, having raised its dividend for 61 consecutive years. This consistency, combined with a strong brand presence and reliable cash flow, makes it an appealing option for income-focused investors.

Outlook: With continued expansion in emerging markets and innovations in the beverage industry, Coca-Cola is well-positioned to maintain its attractive dividend yield for years to come.

6. Realty Income Corporation (O)

Dividend Yield: 5.5%

Q3 Performance: +6%

Market Capitalization: $45 billion

Realty Income, a real estate investment trust (REIT) known for its monthly dividend payments, has been a top performer in Q3 2024. The company’s portfolio of high-quality, long-term lease properties across various sectors, including retail, industrial, and office spaces, has provided it with consistent cash flow.

Realty Income’s business model, centered around stable, long-term rental income, makes it particularly appealing to dividend investors seeking higher yields. Its monthly payouts, as opposed to the more common quarterly payments, have earned it the nickname “The Monthly Dividend Company.”

Outlook: As a REIT, Realty Income is required to distribute at least 90% of its taxable income as dividends, ensuring that shareholders continue to benefit from steady, attractive payouts. Its diverse property portfolio should help it navigate market fluctuations effectively.

7. PepsiCo Inc. (PEP)

Dividend Yield: 2.7%

Q3 Performance: +8%

Market Capitalization: $250 billion

PepsiCo has long been a strong performer in the dividend stock world, thanks to its diversified product offerings and global market presence. In Q3 2024, PepsiCo’s strong earnings were driven by robust sales in both its beverage and snack divisions, particularly in North America and Europe.

PepsiCo has been increasing its dividend for 51 consecutive years, making it a reliable option for income-seeking investors. The company’s ability to balance growth and income through innovative product launches and strategic acquisitions has made it one of the top dividend stocks of Q3 2024.

Outlook: With continued focus on health-conscious products and global expansion, PepsiCo is well-positioned to sustain its dividend growth and reward long-term investors.

Conclusion

The top-performing dividend stocks of Q3 2024 showcase a diverse mix of industries, including technology, energy, healthcare, consumer goods, and real estate. Each of these companies has demonstrated strong financial performance, reliable dividend payments, and the potential for continued growth. For investors seeking stability in an uncertain market, these dividend stocks offer a compelling blend of income generation and capital appreciation.

As we look toward the future, these companies are likely to remain popular choices for dividend-focused investors, offering both reliable payouts and the potential for long-term growth.

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Glendon

Economic

The healthcare sector has long been considered a safe haven for investors, providing stability, growth potential, and attractive dividend yields. As healthcare spending continues to rise globally, companies within the sector offer opportunities for consistent returns, even in times of market volatility. In 2024, healthcare stocks remain a solid investment choice due to aging populations, advances in biotechnology, and increased demand for medical innovations. This article dives deep into the best healthcare stocks to buy, based on their performance, future potential, and the overall outlook for the sector.

1. Johnson & Johnson (JNJ)

Market Cap: $420 billion

Dividend Yield: 2.8%

P/E Ratio: 16.7

2024 YTD Performance: +12%

Johnson & Johnson remains a top pick for healthcare investors due to its diversified product portfolio spanning pharmaceuticals, medical devices, and consumer health products. The company’s pharmaceutical segment has driven growth, particularly with drugs like Stelara and Darzalex leading sales. J&J’s strong cash flow allows it to maintain its reputation as a reliable dividend stock, having increased its dividend for 61 consecutive years.

In 2024, J&J is expected to see continued demand for its cancer therapies and immunology drugs, while its medical device segment benefits from an aging population requiring more surgeries and medical procedures. Additionally, J&J's research into new drugs and treatments in oncology, immunology, and cardiovascular diseases positions the company for sustained long-term growth.

Why Buy? Johnson & Johnson offers a strong balance of growth and stability, with a focus on life-saving therapies and surgical innovations that keep its earnings steady even in economic downturns.

2. UnitedHealth Group (UNH)

Market Cap: $550 billion

Dividend Yield: 1.5%

P/E Ratio: 22.3

2024 YTD Performance: +14%

UnitedHealth Group is the largest healthcare company by revenue, primarily serving as a managed care organization and offering health insurance services. With the rise in healthcare costs and an increasing number of people needing insurance, UnitedHealth is well-positioned to capitalize on the growing demand for comprehensive health coverage.

In Q3 2024, UnitedHealth reported robust earnings, fueled by growth in its Optum segment, which focuses on healthcare services, technology, and pharmacy care. The company's diversified business model has enabled it to stay competitive and drive significant revenue growth across multiple healthcare sub-sectors.

Why Buy? UnitedHealth is a leader in healthcare services and insurance, with a proven ability to adapt to changing healthcare needs. Its continued growth in the insurance market and expansion into healthcare technology makes it a strong long-term investment.

3. Pfizer Inc. (PFE)

Market Cap: $200 billion

Dividend Yield: 4.0%

P/E Ratio: 11.9

2024 YTD Performance: +8%

Pfizer, a global pharmaceutical giant, gained significant attention during the COVID-19 pandemic for its development of the COVID-19 vaccine. While vaccine revenues have slowed in 2024, Pfizer remains a key player in the pharmaceutical space with a broad portfolio of drugs targeting various conditions, including oncology, immunology, and rare diseases.

Pfizer’s robust pipeline of drugs, including promising treatments for cardiovascular disease and cancer, gives it strong growth potential. Moreover, its high dividend yield makes it an attractive stock for income investors. In 2024, Pfizer is focusing on expanding its oncology and immunology drug offerings, which are expected to drive future revenue.

Why Buy? Pfizer combines a solid dividend yield with strong drug development capabilities, making it a good choice for those looking for a balance between income and growth potential in the healthcare sector.

4. AbbVie Inc. (ABBV)

Market Cap: $270 billion

Dividend Yield: 4.3%

P/E Ratio: 14.8

2024 YTD Performance: +10%

AbbVie has established itself as a top-performing healthcare stock, thanks to its blockbuster drug, Humira, which has been a major revenue driver. Although Humira's patent expired, the company has managed to offset revenue loss by focusing on new drugs like Rinvoq and Skyrizi in the immunology space. These drugs have seen strong uptake and are expected to continue growing in the coming years.

AbbVie’s acquisition of Allergan, which brought the Botox brand under its umbrella, further strengthened its position in the aesthetic and medical market. The company has also made advancements in oncology and neuroscience, adding to its already robust pipeline.

Why Buy? With a strong dividend yield and a diversified drug portfolio, AbbVie remains a top choice for investors looking for income and future growth, especially as its newer drugs take over as key revenue drivers.

5. Eli Lilly and Co. (LLY)

Market Cap: $500 billion

Dividend Yield: 1.0%

P/E Ratio: 33.5

2024 YTD Performance: +25%

Eli Lilly has been one of the standout healthcare stocks in 2024, thanks to the success of its diabetes drug Mounjaro, which has also shown promise in treating obesity. The company’s focus on metabolic diseases, particularly diabetes and obesity, has positioned it well to capture significant market share in these fast-growing areas.

Eli Lilly is also making strides in its Alzheimer’s drug research, which, if successful, could open up a multibillion-dollar market. Its innovation in the treatment of metabolic and neurological diseases has driven investor enthusiasm, pushing the stock higher throughout 2024.

Why Buy? Eli Lilly is at the forefront of drug innovation, with groundbreaking treatments in diabetes, obesity, and Alzheimer’s disease. Its strong pipeline and growth potential make it a top healthcare stock to buy for long-term investors.

6. Medtronic plc (MDT)

Market Cap: $120 billion

Dividend Yield: 3.0%

P/E Ratio: 18.2

2024 YTD Performance: +7%

Medtronic, a global leader in medical devices, has been a consistent performer in the healthcare sector. The company’s wide range of products, from heart devices to surgical tools, ensures steady demand for its offerings. Medtronic’s innovations in robotic-assisted surgeries and diabetes management have further bolstered its market position.

In 2024, Medtronic has continued to benefit from an aging global population requiring more surgical procedures and chronic disease management. The company’s commitment to R&D and product development keeps it at the cutting edge of medical technology, which should continue driving growth in the coming years.

Why Buy? Medtronic offers investors stability through its dividend and growth potential through its innovations in medical technology. As the need for surgical and chronic disease management solutions increases, Medtronic is well-positioned for long-term growth.

7. Thermo Fisher Scientific (TMO)

Market Cap: $225 billion

Dividend Yield: 0.3%

P/E Ratio: 27.9

2024 YTD Performance: +15%

Thermo Fisher Scientific is a leader in laboratory equipment and diagnostics, serving a wide range of industries, including pharmaceuticals, biotechnology, and healthcare. The company’s products are essential in drug research and development, and it continues to see strong demand for its diagnostic tools and laboratory services.

In 2024, Thermo Fisher has benefited from increased R&D spending across the healthcare and pharmaceutical industries. Its acquisition of companies that complement its existing portfolio has further strengthened its market presence.

Why Buy? Thermo Fisher’s leadership in the laboratory and diagnostics field makes it an attractive option for investors looking to capitalize on the growth in biotechnology and pharmaceutical R&D. Its innovative solutions and expanding portfolio make it a strong contender for long-term gains.

Conclusion

The healthcare sector offers a range of investment opportunities, from pharmaceutical giants to medical device leaders. The best healthcare stocks to buy in 2024 are those that balance growth with reliability, offering investors both income through dividends and the potential for capital appreciation. As healthcare needs continue to evolve, these companies are well-positioned to deliver strong returns for long-term investors. Whether you’re seeking steady dividend income or high-growth potential, the stocks mentioned in this article are solid picks for a diversified portfolio.

To stay updated on all economic events of today, please check out our Economic calendar

Risk Warnings and Disclaimers

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Stocks

Forex

What happened in the U.S. session?

Manufacturing activity contracted for the sixth month in a row as reported by the Institute for Supply Management (ISM). Although September’s reading of 47.2 matched the previous month’s reading, it was lower than market estimates of 47.6 as key sub-indices such as new orders, backlogs, production and employment continue to contract further. “Demand remains subdued, as companies showed an unwillingness to invest in capital and inventory due to federal monetary policy – which the U.S. Federal Reserve addressed by the time of this report – and election uncertainty”, said Timothy R. Fiore, Chairman of the ISM Committee.

After dwindling lower over the past ten months falling from 9.36M in August 2023 to just 7.67M in July, job openings ticked up in August with 8.04M vacancies. The latest print beat forecasts of 7.64M with increased vacancies in sectors such as construction; and state and local government (excluding education).

However, escalating geopolitical tensions in the Middle East dominated the headlines overnight as Iran fired a barrage of ballistic missiles at Israel following the former’s raids into Lebanon. Safe-haven assets such as U.S. Treasury bonds, gold and the U.S. dollar all rallied hard on the news of this missile attack. The dollar index (DXY) and spot gold prices both surged to a session high of 101.39 and $2,673.10/oz respectively.

What does it mean for the Asia Session?

As Asian markets digest the heightened conflict in the Middle East, the DXY slid lower towards 101.20 while spot gold dipped under $2,660/oz but both asset classes should remain firm along with U.S. Treasuries as the day progresses. Traders should also note that financial markets in China remain closed for National Day from 1st to 7th October, also known as the Golden Week. Thus, lower trading volume should be expected from today till next Monday during the Asia sessions.

The Dollar Index (DXY)

Key news events today

ADP Employment Report (12:15 pm GMT)

What can we expect from DXY today?

Job creation amongst private employers has slowed significantly over the past five months, marking a downshift in the pace of hiring as reported by the ADP report with only 99K jobs added to payrolls in August. Not only did this figure miss market forecasts of 145K, it also marked the lowest reading since January 2021. The estimate of 124K for September points to a slight uptick in job gains but sits well below the 12-month average of 143K. Should the latest ADP result miss market expectations once more, it could create intense selling pressures for the dollar.

Central Bank Notes:

The Federal Funds Rate target range was reduced by 50 basis points to 4.75% to 5.00% on 18th September in an 11 to 1 vote with Governor Michelle Bowman dissenting, preferring to cut rates by a smaller amount.The Committee seeks to achieve maximum employment and inflation at the rate of 2% over the longer run and has gained greater confidence that inflation is moving sustainably toward 2%, and judges that the risks to achieving its employment and inflation goals are roughly in balance.The economic outlook is uncertain, and the Committee is attentive to the risks to both sides of its dual mandate.Recent indicators suggest that economic activity has continued to expand at a solid pace while job gains have slowed, and the unemployment rate has moved up but remains low.Inflation has made further progress toward the Committee’s 2% objective but remains somewhat elevated.In considering any adjustments to the target range for the federal funds rate, the Committee will carefully assess incoming data, the evolving outlook, and the balance of risks and does not expect it will be appropriate to reduce the target range until it has gained greater confidence that inflation is moving sustainably toward 2%.In assessing the appropriate stance of monetary policy, the Committee will continue to monitor the implications of incoming information for the economic outlook and would be prepared to adjust the stance of monetary policy as appropriate if risks emerge that could impede the attainment of the Committee’s goals.In addition, the Committee will continue reducing its holdings of Treasury securities and agency debt and agency mortgage-backed securities. Beginning in June, the Committee slowed the pace of decline of its securities holdings by reducing the monthly redemption cap on Treasury securities from $60 billion to $25 billion.The Committee will maintain the monthly redemption cap on agency debt and agency mortgage-backed securities at $35 billion and will reinvest any principal payments in excess of this cap into Treasury securities.Next meeting runs from 6 to 7 November 2024.

Next 24 Hours Bias

Weak Bearish

Gold (XAU)

Key news events today

ADP Employment Report (12:15 pm GMT)

What can we expect from Gold today?

Next 24 Hours Bias

Weak Bullish

The Australian Dollar (AUD)

Key news events today

No major news events.

What can we expect from AUD today?

Higher demand for safe-haven assets such as the U.S. dollar drove the Aussie under 0.6900 to hit an overnight low of 0.6856. This currency pair retraced higher to climb above 0.6900 once more as Asian markets came online – these are the support and resistance levels for today.

Support: 0.6820

Resistance: 0.6950

Central Bank Notes:

The RBA kept the cash rate target unchanged at 4.35% on 24th September, marking the seventh consecutive pause.Inflation has fallen substantially since its peak in 2022, as higher interest rates have been working to bring aggregate demand and supply closer towards balance but it is still some way above the midpoint of the 2 to 3% target range.The trimmed-mean CPI was 3.9% YoY in the June quarter, broadly as forecast in the May Statement on Monetary Policy (SMP) while headline inflation declined in July as measured by the monthly CPI indicator.Headline inflation is expected to fall further temporarily but current forecasts do not see inflation returning sustainably to target until 2026.GDP data for the June quarter have confirmed that growth has been weak but growth in aggregate consumer demand, which includes spending by temporary residents such as students and tourists, remained more resilient.Broader indicators suggest that labour market conditions remain tight, despite some signs of gradual easing while wage pressures have eased somewhat.Data since then have reinforced the need to remain vigilant to upside risks to inflation and the Board is not ruling anything in or out while agreeing that policy will need to be sufficiently restrictive until the Board is confident that inflation is moving sustainably towards the target range.The Board will continue to rely upon the data and the evolving assessment of risks to guide its decisions and will pay close attention to developments in the global economy and financial markets, trends in domestic demand, and the outlook for inflation and the labour market.Next meeting is on 5 November 2024.

Next 24 Hours Bias

Weak Bullish

The Kiwi Dollar (NZD)

Key news events today

No major news events.

What can we expect from NZD today?

The Kiwi tumbled under the threshold of 0.6300 as demand for safe-haven assets surged overnight. This currency pair stabilized around 0.6270 before rising towards this threshold at the beginning of the Asia session – these are the support and resistance levels for today.

Support: 0.6255

Resistance: 0.6400

Central Bank Notes:

The Monetary Policy Committee agreed to reduce the OCR by 25 basis points, bringing it down to 5.25% in August as inflation converges on target.The Committee is confident that inflation is returning to within its 1-3% target band as surveyed inflation expectations, firms’ pricing behaviour, headline inflation, and a variety of core inflation measures are moving consistent with low and stable inflation.Economic growth remains below trend and inflation is declining across advanced economies – imported inflation into New Zealand has declined to be more consistent with pre-pandemic levels.Services inflation remains elevated but is also expected to continue to decline, both at home and abroad, in line with increased spare economic capacity.Consumer price inflation in New Zealand is expected to remain near the target mid-point over the foreseeable future.A broad range of high-frequency indicators point to a material weakening in domestic economic activity in recent months – these include various survey measures of business activity, electronic card transactions, vehicle traffic, house sales, filled jobs, and job vacancies; these indicators collectively provide a consistent signal that the economy contracted in recent months.The pace of further easing will depend on the Committee’s confidence that pricing behaviour remains consistent with a low inflation environment, and that inflation expectations are anchored around the 2% target.Next meeting is on 9 October 2024.

Next 24 Hours Bias

Weak Bullish

The Japanese Yen (JPY)

Key news events today

No major news events.

What can we expect from JPY today?

Demand for the yen was relatively subdued on Tuesday as USD/JPY hovered around 143.70. This currency pair was rising as Asian markets came online and looks set to break above 144 today – these are the support and resistance levels for today.

Support: 142.15

Resistance: 145.80

Central Bank Notes:

The Policy Board of the Bank of Japan decided, by a unanimous vote, to set the following guideline for money market operations for the intermeeting period:The Bank will encourage the uncollateralized overnight call rate to remain at around 0.25%The Bank will embark on a plan to reduce the amount of its monthly outright purchases of JGBs so that it will be about 3 trillion yen in January-March 2026; the amount will be cut down by about 400 billion yen each calendar quarter in principle.The year-on-year rate of increase in the consumer price index (CPI, all items less fresh food) has been in the range of 2.5 to 3.0% recently, as services prices have continued to rise moderately, reflecting factors such as wage increases, although the effects of a passthrough to consumer prices of cost increases led by the past rise in import prices have waned.Meanwhile, underlying CPI inflation is expected to increase gradually, since it is projected that the output gap will improve and that medium- to long-term inflation expectations will rise with a virtuous cycle between wages and prices continuing to intensify.In the second half of the projection period of the July 2024 Outlook for Economic Activity and Prices, it is likely to be at a level that is generally consistent with the price stability target.Japan’s economy has recovered moderately, although some weakness has been seen in part, but it is likely to keep growing at a pace above its potential growth rate, with overseas economies continuing to grow moderately and as a virtuous cycle from income to spending gradually intensifies against the background of factors such as accommodative financial conditions.Next meeting is on

31 October 2024

Next 24 Hours Bias

Weak Bullish

The Euro (EUR)

Key news events today

Unemployment Rate (9:00 am GMT)

What can we expect from EUR today?

The unemployment rate in the Euro Area has remained pretty steady over the last 18 months as it hovered around 6.5% before edging lower to 6.4% in July. The estimate for August points to an unchanged figure but with economic conditions deteriorating in this region, particularly for Germany, an uptick in the unemployment rate should not come as a surprise. The Euro was trading around 1.1070 this morning and could come under pressure during the European trading hours.

Central Bank Notes:

The Governing Council today decided to reduce the three key ECB interest rates on 12th September, after holding rates steady in July.Accordingly, the interest rate on the main refinancing operations and the interest rates on the marginal lending facility and the deposit facility will be decreased to 3.65%, 3.90% and 3.50% respectively.Recent inflation data have come in broadly as expected, and the latest ECB staff projections see headline inflation averaging 2.5% in 2024, 2.2% in 2025 and 1.9% in 2026.For core inflation, the projections for 2024 and 2025 have been revised up slightly, as services inflation has been higher than expected. At the same time, staff continue to expect a rapid decline in core inflation, from 2.9% this year to 2.3% in 2025 and 2.0% in 2026.ECB staff projections forecast that the economy will grow by 0.8% in 2024, rising to 1.3% in 2025 and 1.5% in 2026 which is a slight downward revision compared with the June projections, mainly owing to a weaker contribution from domestic demand over the next few quarters.The Eurosystem no longer reinvests all of the principal payments from maturing securities purchased under the pandemic emergency purchase programme (PEPP), reducing the PEPP portfolio by €7.5 billion per month on average and the Governing Council intends to discontinue reinvestments under the PEPP at the end of 2024.The Council is determined to ensure that inflation returns to its 2% medium-term target in a timely manner and will keep policy rates sufficiently restrictive for as long as necessary to achieve this aim and is not pre-committing to a particular rate path.Next meeting is on 17 October 2024.

Next 24 Hours Bias

Weak Bullish

The Swiss Franc (CHF)

Key news events today

No major news events.

What can we expect from CHF today?

Demand for the franc has waned since the SNB reduced its key policy rate for the third meeting in a row as USD/CHF ranged approximately between 0.8440 and 0.8480 for most parts of Tuesday. This currency pair was rising towards 0.8470 at the beginning of the Asia session – these are the support and resistance levels for today.

Support: 0.8400

Resistance: 0.8510

Central Bank Notes:

The SNB eased monetary policy by lowering its key policy rate by 25 basis points for the third consecutive meeting, going from 1.25% to 1.00% in September.Inflationary pressure has again decreased significantly compared to the previous quarter, reflecting the appreciation of the Swiss franc over the last three months.Inflation in the period since the last monetary policy assessment was lower than expected, standing at 1.1% in August compared to 1.4% in May.The new conditional inflation forecast is significantly lower than that of June: 1.2% for 2024, 0.6% for 2025 and 0.7% for 2026, based on the assumption that the SNB policy rate is 1.0% over the entire forecast horizon.Swiss GDP growth was solid in the second quarter of 2024 as momentum in the chemicals/pharmaceuticals industry was particularly strong.However, growth is likely to remain rather modest in the coming quarters due to the recent appreciation of the Swiss franc and the moderate development of the global economy.The SNB anticipates GDP growth of around 1% this year while currently expecting growth of around 1.5% for 2025.Further cuts in the SNB policy rate may become necessary in the coming quarters to ensure price stability over the medium term.Next meeting is on 12 December 2024.

Next 24 Hours Bias

Weak Bullish

The Pound (GBP)

Key news events today

No major news events.

What can we expect from GBP today?

Higher demand for safe-haven assets such as the U.S. dollar drove the Cable under 1.3300 to hit an overnight low of 1.3237. This currency pair stabilized around 1.3260 as Asian markets came online for edging higher towards 1.3300 once more – these are the support and resistance levels for today.

Support: 1.3230

Resistance: 1.3380

Central Bank Notes:

The Bank of England’s Monetary Policy Committee (MPC) voted by a majority of 8 to 1 to maintain Bank Rate at 5.0% while one member preferred to reduce Bank Rate by 25 basis points to 4.75%, on19th September 2024.The MPC also voted unanimously to reduce the stock of UK government bond purchases held for monetary policy purposes, and financed by the issuance of central bank reserves, by £100B over the next 12 months to a total of £558B.Twelve-month CPI inflation had been 2.2% in August and July, slightly lower than August Report expectations. Consumer core goods and food price inflation had remained subdued as the cost pressures from previous global shocks had unwound further, and producer price levels had been broadly flat while energy prices had continued to drag on CPI inflation.Services price inflation had increased to 5.6% in August compared to 5.2% in July and 5.7% in June. This was slightly lower in August than had been expected at the time of the August Report. There had been volatility in a number of services sub-components in the July and August outturns, including accommodation and catering prices and airfares.GDP had increased by 0.6% in 2024 Q2, 0.1 percentage points lower than had been expected in the August Monetary Policy Report. That had followed 0.7% growth in Q1, but Bank staff judged that the underlying pace of growth had been somewhat weaker during the first half of the year. Headline GDP growth was expected to return to its underlying pace of around 0.3% per quarter in the second half of the year. Based on a broad set of indicators, the MPC judged that the labour market continued to loosen but that it remained tight by historical standards.Monetary policy decisions have been guided by the need to squeeze persistent inflationary pressures out of the system so as to return CPI inflation to the 2% target both in a timely manner and on a lasting basis; policy has been acting to ensure that inflation expectations remain well anchored.In the absence of material developments, a gradual approach to removing policy restraint remains appropriate while monetary policy will need to continue to remain restrictive for sufficiently long until the risks to inflation returning sustainably to the 2% target in the medium term have dissipated further.The Committee continues to monitor closely the risks of inflation persistence and will decide the appropriate degree of monetary policy restrictiveness at each meeting.Next meeting is on 7 November 2024.

Next 24 Hours Bias

Weak Bullish

The Canadian Dollar (CAD)

Key news events today

No major news events.

What can we expect from CAD today?

The spike in crude oil overnight caused the Loonie to strengthen quite significantly, pressing USD/CAD under 1.3500. This currency pair was trading around 1.3480 as Asian markets came online and could slide lower as the day progresses – these are the support and resistance levels for today.

Support: 1.3420

Resistance: 1.3550

Central Bank Notes:

The Bank of Canada reduced its target for the overnight rate by 25 basis points for the third consecutive meeting to 4.25% while continuing its policy of balance sheet normalization on 4th September.Canada’s economy grew 2.1% in the second quarter of 2024, led by government spending and business investment.This second quarter GDP growth was slightly stronger than forecast in July, but preliminary indicators suggest that economic activity was soft through June and July.As expected, inflation slowed further to 2.5% in July. The Bank’s preferred measures of core inflation averaged around 2.5% and the share of components of the consumer price index growing above 3% is roughly at its historical norm.High shelter price inflation is still the biggest contributor to total inflation but is starting to slow while inflation also remains elevated in some other services.The labour market continues to slow, with little change in employment in recent months. Wage growth, however, remains elevated relative to productivity.The Governing Council is carefully assessing these opposing forces on inflation and monetary policy decisions will be guided by incoming information and our assessment of their implications for the inflation outlook.The Bank remains resolute in its commitment to restoring price stability for Canadians.Next meeting is on 23 October 2024.

Next 24 Hours Bias

Weak Bearish

Oil

Key news events today

EIA Crude Oil Inventories (2:30 pm GMT)

What can we expect from Oil today?

Crude oil prices spiked overnight as fears of geopolitical escalation in the Middle East turning into a wider conflict gripped markets. Potential disruptions in key producing regions caused WTI oil to surge and nearly hit the $72-mark. This benchmark retreated away from this level at the onset of the Asian trading hours but is expected to remain elevated. Moving over the U.S. inventories, should the EIA register a third consecutive week of higher drawdowns, it could function as an additional tailwind for crude later today.

Next 24 Hours Bias

Medium Bullish

To stay updated on all economic events of today, please check out our Economic calendar

Risk Warnings and Disclaimers

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Owen Li

Economic

Singapore’s former biggest oil trader Lim Oon Kuin and his heirs have received a bill for $3.5 billion to settle with the liquidators of Lim’s trading business, Bloomberg has reported, citing unnamed sources in the know.

The oil tycoon was earlier this year convicted on three charges, including two charges of deception targeting lender HSBC and one charge of document forgery with the intent to deceive the bank. These were the only three criminal charges that reached court of a total of 130 charges of forgery and cheating, the Business Times reported at the time.

Lim set up his company Hin Leong Trading Pte. back in the 1970s and it eventually turned into the biggest oil trading entity in Singapore. However, it all came crashing down when it was revealed that Lim had used his employees to forge documents aimed at deceiving HSBC that Hin Leong had sealed two oil sale deals with Chinese companies: Unipec and China Aviation Oil.

These deals made the basis for a request for financing from the British lender. The sum of the loans that the oil trader received under false pretenses was at least $111.7 million. Lim denied he had asked employees to forge documents for the purpose of deceiving the company’s lender.

However, that deal turned out to be just the tip of the iceberg. Last year, after Hin Leong Trading went into compulsory liquidation, liquidators alleged that Lim and his children has been engaged in fraud for years, presenting the company as a healthy going concern when in fact it had been loss-making for a decade.

Between 2010 and 2020, the liquidators alleged, Lim and his two children had overstated Hin Leong’s profits by $2.1 billion, while the company had in fact incurred losses of some $808 million from trade with futures and swaps, Channel News Asia reported a year ago. It was in this case that the court ruled the family must pay $3.5 billion in compensation - the sum that liquidators had asked to be awarded to them.