2 Stocks to Buy, 2 to Sell

THE MONEY IDEA💡
2 Stocks to Buy, 2 to Sell

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In a market driven by enthusiasm of AI, valuation resets, and shifting investor sentiment, long-term investors can still find opportunities with the right balance of growth and discipline. This week, we highlight four key names: Amazon and Marvell Technology as compelling buys, and Exelon and American Water Works as stocks to consider trimming. Each reflects where the market may be overreacting or overlooking value. For deeper investing insights, see The Money Path. 

Let’s dive in.

THE MONEY IDEA💡
2 Stocks to Buy

Amazon (NASDAQ: AMZN) – Tech Giant with Long-Term Tailwinds

Industry: Consumer Cyclical / Internet Retail
Current Status: 20% undervalued; 4-star rating, medium uncertainty, no dividend

• Multiple Moat Sources – Amazon benefits from brand dominance, network effects, and scale efficiencies

• AWS Acceleration – Cloud growth expected to improve in the second half of 2025 as new capacity comes online

• Margin Clarity – Recent cost pressures are temporary and factored into valuation

• Resilient Model – Diversified revenue streams in e-commerce, cloud, and advertising

• Valuation Gap – Market pessimism around short-term issues overlooks long-term upside

Bottom Line: Amazon’s wide moat and discounted valuation make it an attractive opportunity for patient growth investors.

Marvell Technology (NASDAQ: MRVL) – AI-Driven Rebound Potential

Industry: Technology / Semiconductors
Current Status: 34% undervalued; 4-star rating, high uncertainty, 0.4% dividend yield

• AI Upside – Custom accelerators and optical connectivity forecast to outperform market expectations

• Valuation Reset – Stock dropped 46 percent year-to-date, presenting a compelling risk-reward setup

• Analyst Conviction – Morningstar projects AI revenue well above company guidance

• Moat and Growth – Narrow moat with high leverage to data infrastructure trends

• Turnaround Setup – Currently out of favor, but long-term thesis remains intact

Bottom Line: For risk-tolerant investors, Marvell offers deep value in a growing AI ecosystem.

THE MONEY IDEA💡
2 Stocks to Sell

Exelon (NASDAQ: EXC) – Overhyped AI Utility Stock

Industry: Utilities / Regulated Electric
Current Status: 10% overvalued; 2-star rating, medium uncertainty, 3.9% dividend yield

• Big Year-to-Date Move – Up 20 percent in 2025—unusual for a typically stable utility

• Valuation Pressure – Trades at a premium, driven by AI-related electricity optimism

• Mispriced Growth – Market is assuming boosts in demand without clarity

• Rebalancing Opportunity – Better value exists elsewhere in defensive sectors

• Long-Term Neutral – Fundamentals do not justify current investor enthusiasm

Bottom Line: Exelon’s defensive appeal is intact, but recent gains suggest it’s time to reallocate.

American Water Works (NYSE: AWK) – Overpriced Stability

Industry: Utilities / Water
Current Status: 7% overvalued; 2-star rating, low uncertainty, 2.3% dividend yield

• Strong Run – Shares up 17 percent year-to-date, now trading above fair value

• Valuation Limits – 2-star rating indicates minimal upside at current levels

• Safe, But Stretched – Water utility business remains stable, but returns may lag

• Yield Doesn’t Compensate – Dividend yield below sector peers at this price

• Room to Reallocate – Consider rotating into undervalued dividend payers with more growth

Bottom Line: AWK is a dependable holding, but investors may find better value elsewhere right now.

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Launched in December 2024, Margentum is a digital asset inspired by silver and created by the same team behind the Money Masters newsletter.

Designed to complement Bitcoin’s role as digital gold, it focuses on simplicity, long-term value, and accessibility in an evolving financial landscape.

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