Wall Street is optimistic about potential rate cuts by the Fed in September to support the slowing U.S. economy. Corporate earnings growth looks strong for the second quarter and beyond. While there may be some profit-taking in the near term, investors are likely to continue buying stocks in July and the second half of the year, driven by expected rate cuts and solid profit expansion.
Two stocks trading under $25 per share with promising growth outlooks and improving earnings estimates are highlighted. Hims & Hers Health, Inc. (HIMS) is a rapidly growing online health company offering a range of health and wellness products for men and women. The company, which went public through a SPAC in 2021, has nearly 2 million subscribers and aims to expand into weight loss drugs.
Ero Copper (ERO) has seen a 45% increase in its shares in 2024, outperforming its industry. The company trades below its Zacks price target and is showing positive movement in its moving averages. With copper demand on the rise due to the energy transition and growth in energy-intensive industries, Ero Copper presents a compelling investment opportunity at around $23 per share.
Both Hims & Hers Health, Inc. and Ero Copper offer potential for growth and value in their respective industries. Investors may find these stocks attractive for their strong growth prospects and current market positioning.