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4 Stocks Ready to Rebound
Kenny
May 02, 2025
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THE MONEY IDEA💡
4 Stocks Ready to Rebound
Welcome to Money Masters, we are 24,667 Money Masters and counting!
In today’s volatile market, patient investors have an opportunity to position themselves for the next upswing. This week, we highlight four resilient companies: Hasbro, NextEra Energy, ServiceNow, and Danaher. Each stands out for its strong fundamentals, competitive advantages, and attractive valuations that could drive solid long-term returns. For help with building wealth, we suggest The Money Path.
Let’s dive in.
THE MONEY IDEA💡
4 Stocks Ready to Rebound
Industry: Healthcare / Life Sciences Tools & Diagnostics
Current Status: 27% undervalued; 4-star rating, medium uncertainty, minimal dividend
Normalized Growth Ahead – After customer destocking and post-COVID pullbacks, Danaher is returning to baseline demand.
Tariff Neutrality – Management expects net-neutral impact from proposed tariffs, aided by flexible supply chains and pricing power.
Moat Strength – Intangible assets and switching costs provide competitive advantages in lab diagnostics and instruments.
Margin Recovery – Operating margins expected to improve alongside volume normalization, with 13.4% projected earnings CAGR.
Proven Execution – A track record of effective capital allocation and strategic acquisitions boosts investor confidence.
Bottom Line: Danaher is a quality compounder poised to rebound as demand stabilizes, offering value for patient long-term investors.
Industry: Consumer Products / Gaming & Entertainment
Current Status: 27% undervalued; 4-star rating, high uncertainty, 4.6% dividend yield
Digital Momentum – Revenue grew 17% last quarter, driven by Wizards of the Coast and digital gaming, signaling success in diversifying beyond toys.
Margin Expansion – Digital products carry higher margins, helping lift long-term operating margins toward the 23% range.
Restructuring in Motion – Ongoing efforts to streamline operations and shift focus from low-margin categories are gaining traction.
Valuation Appeal – Shares trade at only 12.8x 2026 earnings estimates, despite brand strength and improving fundamentals.
Tariff Exposure Acknowledged – Roughly 50% of manufacturing occurs in China, but plans to mitigate impact are underway.
Bottom Line: Hasbro offers a unique mix of legacy IP and digital innovation, making it a contrarian pick with rebound potential for risk-tolerant investors.
Industry: Utilities / Clean Energy
Current Status: 12% undervalued; 4-star rating, medium uncertainty, 3.4% dividend yield
Stable Core – 80% of earnings come from regulated utilities in Florida, benefiting from a favorable policy environment.
Renewable Early Mover – As a first mover in renewables, NEE has secured prime locations and long-term contracts.
Earnings Visibility – Management reaffirmed 2025 EPS guidance, supported by steady demand and locked-in energy sales.
Growth Profile – Long-term EPS growth target of 6%–8% reflects consistent expansion in clean energy and infrastructure.
Sector Outlier – Despite utilities being slightly overvalued as a group, NextEra remains undervalued with strong fundamentals.
Bottom Line: NextEra is a high-quality pick in the utility sector for investors seeking both income and exposure to the clean energy transition.
Industry: Technology / Enterprise Software
Current Status: 7% undervalued; 3-star rating, high uncertainty, no dividend
Strong Moat – Switching costs and platform dependency give ServiceNow durable pricing power and customer stickiness.
AI Deal Surge – AI-related contracts rose 33% YoY, reflecting rising demand for automation and intelligent workflows.
Resilient Demand – Software remains largely insulated from tariffs and supply chain risk, reinforcing stability.
Upbeat Guidance – Raised full-year revenue targets after strong Q1 results, underscoring execution strength.
Rare Pullback Buy – The stock seldom dips below fair value, making recent pricing a rare opportunity.
Bottom Line: ServiceNow is a premium software asset combining secular growth, defensibility, and smart AI positioning.
Serious about your money? See our guides on investing and building wealth.
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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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