It’s All About The Labor Market Now

The second half begins ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ [EARN WHILE YOU LEARN! JOIN OUR FREE LIVE TRADING SESSION!]( Hello investor, The second half begins The second half of 2024 is here. Wall Street will open the second half today, as investors will see if the AI frenzy can keep pushing tech stocks up to new highs. The tech-heavy Nasdaq scored an 8.3% gain in the recent quarter. King Lip at BakerAvenue Wealth Management believes that tech stocks still have some gas in the tank to keep going. - “We don’t see a lot of evidence of tech slowing,” said King Lip, chief strategist at BakerAvenue Wealth Management. “If anything, you could argue that it’s accelerating.” King Lip at BakerAvenue Wealth Management (Photo: CNBC) The personal-consumption expenditures price index rose 2.6% in May, which was the lowest since 2021. That was positive data that the Federal Reserve wanted to see. The key is for the economy to pull off a soft landing. So far, so good. Analysts expect a good earnings quarter. The tech sector is projected to post about 15% earnings growth for the current quarter. That might be strong enough to keep the party going. Other sectors, however, are forecasted to see a decline. As a reminder, the market will be closed on Thursday for the Fourth of July. The June jobs report will be released on Friday. S&P PMI manufacturing and ISM manufacturing data for June will be out today. This Dominant Appliance Maker Is One of the Most Reliable Compounders in the Market Today’s Pick: Middleby Corporation (MIDD) Middleby makes appliances and industrial grade food preparation equipment for manufacturers, restaurants, and residential. The company has grown steadily by acquiring companies in emergent cooking trends like nitro cold brew coffee or smart connected appliances. In the chart below, you will see how Middleby acquired 29 companies since the beginning of 2020! (Source: Middleby Corporation) As a result, Middleby has built a formidable portfolio of brands across commercial, residential, and industrial food prep: (Source: Middleby Corporation) Were their acquisitions disciplined? Now, you might be wondering if the company has become bloated. Many deals end up being inefficient because the acquirer overpays or doesn’t integrate them effectively. - Fear not. Middleby has mastered acquiring food equipment manufacturers. Four of their most notable acquisitions have become many times more profitable post-acquisition: (Source: Middleby Corporation) Middleby management touts their integration playbook. One look at their adjusted EBITDA history explains why. Profits have grown at the same rate as revenue -- even with the company making many acquisitions. - Over the 17 years, Middleby posted a CAGR of 14.8% for adjusted EDITDA while its sales grew at a 14.5% CAGR. You simply can’t argue its long track record of growth. (Source: Middleby Corporation) Bottom Line: Middleby (MIDD) is consolidating a dominant position in commercial, industrial, and residential appliances. Homebuilding provides a tailwind to their residential division. Meanwhile new restaurants are replacing the ones shuttered during the pandemic. Middleby has built a long track record of consistent 15% growth. Add this stock to your portfolio and watch it continue to compound. [EARN WHILE YOU LEARN! JOIN OUR FREE LIVE TRADING SESSION!](       © All Rights Reserved, Trade Alliance [Unsubscribe]( | [Manage Preferences](