“Done Deal”

Earn While You Learn! ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ [EARN WHILE YOU LEARN! JOIN OUR FREE LIVE TRADING SESSION!]( Hello investor, “Done Deal” A September rate cut looks like a done deal after yesterday’s two key releases. First, the number of workers on payrolls will likely be revised down by 818,000 for the 12 months through March, according to the Bureau of Labor Statistics’ preliminary benchmark revision. So, the revisions indicated that the labor market has cooled down more than people thought. Meaning? The central bank is more inclined to cut interest rates to make sure the unemployment rate doesn’t rise too much. Second, the Federal Reserve released its minutes from the last FOMC meeting. Several Fed officials thought it would have been appropriate to cut rates during the July meeting. Nonetheless, the committee still voted unanimously to keep rates unchanged. It was another strong case of why a September rate cut looks likely. Jamie Cox at Harris Financial Group believed the Fed used this opportunity to hint at a rate cut to set the expectation before September. Fed officials don’t want surprises to move the market too much. - “The Fed minutes removed all doubt about a September rate cut,” said Jamie Cox at Harris Financial Group. - “The Fed’s communication strategy is to make its meetings less of a market moving event, and they are following the script to the letter.” Jamie Cox at Harris Financial Group (Photo: CNBC) Moreover, Bret Kenwell at eToro said it is a matter of the size of a rate cut, rather than whether the Fed will cut or not. - “The question isn’t whether the Fed will cut rates in September, but rather, how much will the Fed cut?” he said. - “The market is currently pricing in greater odds of a 25 basis point cut rather than a 50 basis point cut, which seems like the more likely outcome at this point, provided the August jobs report isn’t a drastic disappointment.” The August jobs report will be a huge one. It is unlikely to change the Fed’s projected decision to cut rates, but it could determine the size of it. The July report was alarming. If the August report was disappointing, it would be two straight subpar reports that could lead to a 50 basis-point cut. Neil Dutta believed it wouldn’t be prudent to “believe” the August jobs report. Why? The number is likely to be revised lower, he said. - “The main message from the revisions, in my mind, reinforces just how ‘silly’ it is to let the next jobs number be the determinant in whether to go 25 or 50 in September,” said Neil Dutta at Renaissance Macro Research. “What this revision data implies is that whatever the next jobs number is going to be, it’s probably lower in reality.” Target bolstered Wall Street’s confidence in the strength of consumer spending when the retailer halted its streak of quarterly sales declines. Macy’s, however, lowered its outlook for sales for the rest of the year. Today, we will get fresh data on initial jobless claims, existing home sales, and S&P Global PMI. The first data (initial jobless claims) obviously will get the most attention. Then the attention will shift to Fed Chair Jerome Powell’s speech on Friday at Jackson Hole. Top Compounding Stock With Critical Services To Corporate Executives Today’s Stock Pick: CBIZ, Inc. (CBZ) One of my friends talked about her mother retiring soon and buying Medicare. As I listened to him, he said that as soon as she tried to find the option for Medicare, she was blasted with 17+ pages of different insurance offers from multiple companies. How the heck can she know which one to choose? Especially for something as serious as Medicare that will cover her future health insurance. So, she found a Medicare health insurance broker and helped her through the options. Having an expert like that broker is invaluable. Precisely, that’s what CBIZ does for enterprises. Every corporation needs insurance to cover risks, but which insurance should they get? **They might overlook some risks that could be fatal. CBIZ is an advisory firm that is a corporate version of an insurance broker. CBIZ’s team will come into a corporation’s office and analyze every aspect of their business. Then, the team would identify dark-horse risks that executives would overlook. Finally, CBIZ would recommend certain insurance, benefits, and retirement products at the best prices. Some of these include: - Commercial Insurance: Comprehensive property & casualty solutions to manage business exposures. - Risk Control: Techniques and strategies to minimize risks and help prevent claims. - Executive Risk Insurance: Protection for key individuals and organizations. - Claims Management: Advocacy and support to help navigate the claims process. - Alternative Risk: Risk financing structure to self-insure risk. (Source: CBIZ) And that’s just one line of the business for CBIZ. It also does financial services where it helps with tax, accounting, and auditing consulting. AccountingToday named CBIZ as a top 11 accounting provider in 2024. (Source: CBIZ) The key theme for CBIZ is that it helps corporations with difficult and complicated processes. You and I know that accounting, taxes, benefits, and insurance are vital. Any mistake in these areas can cost millions of dollars. But yet, a CFO cannot know everything in each area. That’s where CBIZ shines as the advisory firm. Recurring services: The best kind of any business is recurring revenue. Acquiring new customers are the costliest part of marketing. You want to keep these customers and give you a clear visibility of your future revenue. About 75% of CBIZ’s services are recurring-nature, which includes annual tax compliance, payroll, retirement plan services, and so on: (Source: CBIZ) Best of all, CBIZ retains about 90% of its clients annually. And their total clients number? More than 100,000. Their tagline says it well, “We out-local the nationals and out-national the locals.” Wonderful economies: Thanks to the nature of its recurring revenue, CBIZ has had a phenomenal adjusted EPS growth CAGR of 17.6% from 2019 to 2023. And it is good at finding operating leverage. For example, revenue growth CAGR since 2019 was 13.8%. The future may be more of the same. CBIZ has a long-term goal of growing earnings faster than revenue through operating leverage. (Source: CBIZ) 2024 guidance: As you can see above, CBIZ projects an adjusted EPS growth of 10% to 12%. It is a solid business that has grown reliably over the years. Is it a high-flying stock? No. But this is a stock that you can sleep safely at nighttime. Bottom line: CBIZ brings expertise in complicated matters to the executives, and their services are essential in staying compliant and not overlooking any risks. Through its skill of making good acquisitions and share repurchases, the stock is poised to continue its double-digit EPS CAGR in the next five years. [EARN WHILE YOU LEARN! JOIN OUR FREE LIVE TRADING SESSION!](       © All Rights Reserved, Trade Alliance [Unsubscribe]( | [Manage Preferences](