HypeIndex stock picks beat the S&P 500 as it hits ATH

American stocks have done well in the last two weeks, helped by this week’s decision by the Federal Reserve to start cutting interest rates. The S&P 500 index has risen to a record high while the Dow Jones and the Nasdaq 100 indices are nearing their record levels as well.

In its monetary policy meeting this week, the Fed slashed rates by 0.50% and hinted that more cuts were on the way as the economy slows. In most periods, American equities do well when the Fed is cutting rates as investors rotate from bonds to equities. 

Some of the top-performing stocks in the past two weeks also had substantial positive hype. A look at the stocks we have covered in this period has jumped by about 6.2% while the S&P 500 index has risen by less than 3%.

CAVA Group (CAVA)

CAVA Group HypeIndex

Background

CAVA Group is a fast-growing restaurant chain focusing on the Mediterranean niche. It is often compared with Chipotle Mexican Grill, a company that has cornered the Mexican fast-casual industry. It has grown its store count to 341 and is planning to open hundreds more in the next few years.

Summary

CAVA Group stock has jumped by 12.28% since our last review. This rally happened after the company published strong financial results. Its revenue rose by 35.2% in the second quarter to $231.4 million while its digital revenue mix rose to 35.8%. It also boosted its profitability, with its adjusted EBITDA rising to $34.3 million from $21.6 million in the prior quarter. 

A key concern about CAVA Group is that its business is relatively overvalued as the company has a forward P/E ratio of 263 and a price-to-sales ratio of 17. This valuation explains why analysts at JPMorgan downgraded it to sell.

• Review date: 03rd September

• Hype change: 120%

• Price change: 12.28%

• Sentiment: POSITIVE

Dell stock (DELL)

Dell HypeIndex

Background

Dell is a large technology company that manufactures computers, servers, monitors, storage, and other products. It is a giant with a market cap of over $80 billion and a leading market share in its respective industries. The company has also become a leading player in the artificial intelligence industry, where it provides equipment used in data centers.

Summary

Dell stock has jumped by over 12% since we covered it. These gains are in line with the performance of most technology companies and because of its strong financial results.

Dell’s revenue rose by 9% in the second quarter to $25 billion while its net income soared to over $841 million. Its half-year net income rose by over 75% to over $1.76 billion.

The company is expected to continue benefiting from the ongoing AI infrastructure spending and the estimated PC demand globally. The stock is also benefiting from its dividends and share repurchases. It returned $1 billion to investors.

• Review date: 11th September

• Hype change: 170%

• Price change: 10.4%

• Sentiment: POSITIVE

Blackstone (BX)

Blackstone stock

Background

Blackstone is the biggest alternative assets company in the world with over $1.07 trillion in assets under management. It focuses on industries like private equity, private credit, insurance, and real estate. 

Blackstone makes most of its money from the fees it charges its clients followed by incentives, which include the profit it makes after asset disposals or initial public offerings.

Summary

Blackstone’s stock has soared to a record high, helped by its strong asset inflows in the past few years. These assets have translated to strong financial performance, with its management and advisory fee revenue rising to $1.7 billion in the second quarter.

The company is doing well, helped by the ongoing interest rate cuts. While lower rates will reduce its private credit revenues, it will unlock its other industries like real estate and private equity. In private equity, the company will benefit from deal-making activity that are expected to rise.

• Review date: 12th September

• Hype change: 105%

• Price change: 10.3%

• Sentiment: POSITIVE

Salesforce (CRM)

Salesforce HypeIndex

Background

Salesforce is a technology company that offers numerous services like sales, marketing, artificial intelligence, data analysis, and communication. It owns brands like Tableau, Slack, Quip, and Mulesoft. 

Salesforce is one of the biggest players in the Software-as-a-Service (SaaS) industry. Its top competitors include companies like Microsoft and Cisco.

Summary

Salesforce stock has done well this month after publishing strong financial results and inking a partnership with NVIDIA and Google Cloud. It also unveiled Agentforce, an AI-powered customer service solution.

Salesforce also bought Own Company, a company, a firm that provides data security solutions as cybersecurity threats rise.

It also released encouraging financial results that beat analysts' estimates. Its revenues rose by 8% to $9.33 billion while its third-quarter revenue guidance is $9.31 billion, up by 7% from the same period. For the full year, the company expects to make between $37.7 billion and $38 billion in revenues. 

Salesforce will likely benefit from the ongoing cost-cutting measures, which are expected to grow its margins. 

• Review date: 04th September

• Hype change: 105%

• Price change: 7%

• Sentiment: POSITIVE

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HypeIndex is an AI platform that detects Hype in stocks and cryptos before it moves the market, providing reliable early detection for profitable investment opportunities.

The algorithm for our proprietary HypeIndex score is based on sentiment analysis, data science and machine learning.