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Stocks to Watch: Ford, Pfizer, AMD, and More




Persistently high inflation rates are causing investors to grow increasingly wary of consumer cyclical stocks. In the automotive sector, the consumer’s disinterest in electric vehicles led to rising demand for hybrid vehicles.

This is bad news for American automotive firms. Toyota (TM) is a leader in the hybrid market. Honda (HMC), known for its performance and quality, is a contender. Still, both TM and HMC stocks are trending lower. Ford (F) is falling as well. F stock closed at $11.68, a price not seen since February.

In March, Stellantis (STLA) shares peaked. Just like Ford, it has excellent valuations. Wait for lower prices before buying either firm.

In the AI chip sector, be wary of the rise of AMD (AMD) stock. Its valuations pale in comparison to Nvidia. The latter has a better profitability profile, while both firms have comparable growth, valuation, and momentum characteristics.

Chip investors unwilling to chase Nvidia, AMD, or Micron (MU), a memory supplier, have other tech firms to consider. Fortinet (FTNT), Global Payments (GPN), Verisign (VRSN), Akamai (AKAM), and F5 Inc. (FFIV) are trading sharply below their 52-week high. Tech investors do not want to pay a premium for software or infrastructure firms. Now that they are out of favor, watch those stocks today.



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