How high will gold surge? (From Weiss Ratings) Lululemon, UNH, Enphase: Bad News, Good Opportunity? Downgrades are detrimental to a stock’s price momentum and often lead to sustained downtrends. However, sometimes good stocks are plagued by bad news that ultimately leads to a buying opportunity. Today, we’re examining three such stocks: good companies suffering from bad news, whose analyst trends are driving their stock prices lower, setting them up for potential buying opportunities that may be confirmed this year. The End of Elon Musk? Don't make him laugh. Jeff Brown has been hearing this same tired story for years, and he's been proven right time and time again. And now, while the media focuses on Tesla's "demise," he's uncovered an AI breakthrough that's about to make Elon's doubters eat their words yet again. According to his research, if you listen to the media and miss out on Elon's newest breakthrough, it's going to cost you the fortune of a lifetime. Click here to see why the "End of Elon" crowd is about to be wrong again. Lululemon Moves Lower on Margin Compression Lululemon (NASDAQ: LULU) has suffered from numerous headwinds, including sluggish growth, but it has overcome them all. The story in 2025 is one of margin compression despite growth and top-line outperformance, which is leading to a sustained trend of price target reductions. Lululemon is the top-ranked stock on MarketBeat’s list of Most Downgraded Stocks in mid-June, but take it with a grain of salt. The negative activity is primarily reflected in price target reductions, which leave it rated as a Moderate Buy with firm coverage and a potential 40% upside at the consensus. Investors can buy this stock while it is trading near long-term lows, aligning with the bottom of a trading range. Reasons to buy Lululemon include its positive growth trajectory and robust cash flow. The company experienced margin compression but still achieved an 18% operating margin, which is sufficient to sustain its healthy balance sheet and support business investment. Its valuation stands at 16x the current year's earnings and just 10x the projected earnings for 2030. UnitedHealth: A Perfect Storm of Bad News UnitedHealth’s (NYSE: UNH) stock price plummeted in April and May due to a perfect storm of bad news, including regulatory, legal, and margin issues. The news led analysts to drastically reduce their price targets, shaving thousands of basis points off the consensus target in weeks, opening up a deep value opportunity for dividend investors. Although there are risks, UnitedHealth’s cash flow is robust and can sustain its capital return, including a nearly 3% dividend yield. Key takeaways from the analysts’ data are that the price target has been lowered. Still, coverage is rising, and sentiment remains firm at a Moderate Buy, with a potential 40% upside according to the consensus. Another factor for investors to consider is the institutional activity. The institutions own approximately 87% of the stock and acquired it on balance in Q2. Not only was buying activity solid at roughly $12 billion, flat compared to the prior quarter, but selling volume declined, resulting in an above-average build for the quarter. Assuming this trend continues, UNH shares are unlikely to fall significantly further. A major regulatory shift is scheduled to take effect this July — and it could have serious implications for your financial future. Big Banks are already positioning themselves to benefit from it… This new policy allows them to treat a certain asset as equivalent to hard cash. They're now placing more trust in it than in stocks, bonds, or even the U.S. dollar itself. Using an IRS-approved strategy, it's possible to convert retirement funds into physical gold — with no tax penalties. Send Me the FREE Presidential Gold Guide Enphase: Out of Phase With Government Spending Enphase's (NASDAQ: ENPH) biggest challenge in 2025 is the impact of the Trump administration on subsidies for alternative energy. Even so, the effect is significant and undercuts the outlook for revenue and earnings. The latest blow is the budget bill, which is moving through Congress with cuts to subsidies intact. The impact on the stock price is another significant plunge that aligns it with the low end of the analysts' target range, potentially heading lower. The question is whether the bill is passed with the cuts intact and whether the company can sustain operations with them in place. The stock price is likely to maintain its downtrend until they are answered, which may not be until later in the year or 2026. Institutional interest and short selling are two factors that suggest the downtrend will persist. The institutions own more than 70% of the stock, representing a powerful market force, and they sold on balance in Q1 and Q2. That trend is not expected to end in Q3 or Q4 unless there is a change in Trump’s tax bill. Short sellers' interest was high at roughly 20% at the end of May and is unlikely to decline significantly until there is a hint of good news.
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