Healthcare Stock Surging 90%+

Author

Adam Garcia
January 28, 2025

An aerospace and defense giant is crushing its earnings, an auto major just raised its profit forecast, and a healthcare stock is skyrocketing after unveiling a cutting-edge move in cancer treatment. Dive in to find out more!

AI-Driven Gaming

New Jersey's record-breaking $2.4 billion iGaming revenue last year is proof: the iGaming market is booming.

And at the forefront of this growth is a standout company that's redefining the industry.

While competitors focus on low-margin sports betting, this company is targeting high-margin VIP players—the whales who spend big and stick around. With $2.13 earned for every $1 spent on marketing, a 20% player retention rate (double the industry average), and 60% revenue growth in 2023, the numbers speak for themselves.

Couple this with a proprietary AI-powered platform and a bold move into the lucrative Latin American market, and this company is poised to capture even more market share.

As NJ's iGaming milestone shows, this is a sector with no signs of slowing down.

Futures 📈

What to Watch

Earnings:

  • Lockheed Martin [LMT]: Premarket

  • Royal Caribbean Cruises  [RCL]: Premarket

  • PACCAR [PCAR]: Premarket

  • Stryker  [SYK]: Aftermarket

  • Starbucks [SBUX]: Aftermarket

  • Chubb Limited [CB]: Aftermarket

Economic Reports:

  • Durable-goods orders [Dec]: 8:30 a.m.

  • S&P Case-Shiller home price index (20 cities) [Nov]: 9:00 a.m.

  • Consumer confidence [Jan]: 10:00 a.m.

Aerospace & Defense

Robust Performance Driving RTX Corp’s Q4 Earnings Beat

RTX Corp [NYSE: RTX] announced better-than-expected fourth-quarter results today. The company’s revenue of $21.6 billion is 9% higher year-on-year and is driven by an 11% organic growth rate. This exceeds analysts’ projections of $20.53 billion, signaling robust demand across both commercial and defense sectors.

Adjusted earnings per share (EPS) are $1.54, significantly above the forecasted $1.38, marking a 19% improvement from the prior year. On a GAAP basis, EPS is $1.10, accounting for acquisition-related costs and restructuring charges.

The firm's shares are up by 2% in premarket trading.

Segment-wise, Collins Aerospace’s revenue is up 6%, reaching $7.54 billion, fueled by growth in both defense and commercial aftermarket sales. Pratt & Whitney’s sales are higher by 18%, reaching $7.57 billion, supported by higher commercial and military volumes. Raytheon is reporting a 4% growth in sales to $7.16 billion, driven by increased land and air defense systems demand.

RTX returned $852 million to shareholders during the quarter and closed the year with a $218 billion backlog, comprising $125 billion in commercial contracts and $93 billion in defense commitments.

For 2025, RTX forecasts adjusted revenue between $83 billion and $84 billion, representing 4% to 6% organic growth. Adjusted EPS is projected to range from $6.00 to $6.15, while free cash flow is expected to reach $7.0 to $7.5 billion. CEO Chris Calio expressed confidence in the company’s ability to drive sustainable growth and achieve its financial goals.

Automobiles

GM Posting Strong Earnings and Raising 2025 Profit Guidance Amid Policy Uncertainty

General Motors’ [NYSE: GM] fourth-quarter revenue of $47.7 billion is higher than Wall Street’s estimate of $44.46 billion and reflects an 11% year-over-year increase. The automaker’s adjusted earnings per share (EPS) of $1.92 are above the expected $1.83. Adjusted earnings before interest and taxes (EBIT) are up 42.8% from the previous year, touching $2.51 billion.

CEO Mary Barra highlighted GM’s progress in the electric vehicle (EV) market, with the company doubling its EV market share in 2024. GM’s EV portfolio turned profitable on a variable basis in the fourth quarter, aided by strong sales of models like the Cadillac Lyriq and Chevrolet Equinox EV.

However, the company wholesaled 189,000 EVs in 2024, falling short of its 200,000 target. GM projects EV sales of 300,000 units in 2025, contributing an expected $2 billion to $4 billion in earnings.

Despite these successes, GM is facing potential challenges from new White House policies under President Donald Trump, including proposed tariffs on vehicles from Canada, Mexico, and China.

Additionally, potential changes to EV tax credits could impact profitability. Looking forward, GM forecasts 2025 adjusted EBIT of $13.7 billion to $15.7 billion, with diluted EPS expected to range between $11.00 and $12.00.

The company is optimistic about expanding its EV market while navigating policy uncertainties. Shares are dipping slightly during premarket trading.

Stock to Watch

As the need for recovery services grows, this could be a standout stock in a rapidly expanding market.

FMCG

Kimberly-Clark Slipping After Weak Q4 Earnings and Tepid Growth Forecast

Kimberly-Clark Corporation’s [NYSE: KMB] fourth-quarter results are slightly below analyst expectations, causing a 1% drop in its stock price during premarket trading. The consumer products giant’s adjusted earnings per share of $1.50 are narrowly below the forecasted $1.51.

The company’s revenue is $4.93 billion, exceeding projections of $4.86 billion and showing a 2.3% year-over-year organic growth. However, net sales are down 0.8% compared to the same period last year.

Adjusted gross margins are higher by 35.4%, up 50 basis points, due to robust productivity gains, while adjusted operating profit is also up by 2.1%, reaching $684 million.

CEO Mike Hsu described 2024 as a pivotal year for the company, highlighting the successful implementation of the multi-year "Powering Care" strategy and the reorganization into three core segments.

Looking ahead, Kimberly-Clark has provided a cautious outlook for 2025, expecting mid-to-high single-digit growth in adjusted earnings per share on a constant-currency basis. The guidance factors in a 320 basis point impact from divestitures and business exits, along with a 100 basis point headwind from items below operating profit.

Movers and Shakers

IMAC Holdings, Inc. [BACK] - Last Close: $0.83

IMAC Holdings, Inc. is a healthcare company specializing in regenerative, orthopedic, and minimally invasive procedures.

Today, it announced the launch of Ignite Proteomics LLC, a subsidiary dedicated to enhancing cancer treatment personalization through protein-level insights, leading to a 90% increase in its stock price.

My Take: The company has had financial challenges recently, including a notification of deficiency from Nasdaq related to delayed filing of quarterly reports. Be cautious while investing here.

American Resources Corporation [AREC] - Last Close: $0.70

American Resources Corporation is a supplier of raw materials to the infrastructure market, focusing on iron ore, titanium, and metallurgical carbon.

AREC's stock is rising in premarket trade today due to the successful completion of a merger between its subsidiary, American Infrastructure Corporation, and CGrowth Capital, Inc.

My Take: The merger can be a big move for AREC. However, this is a tiny stock with weak financials, so it might be best to wait and watch how the merger progresses.

DIH Holding US, Inc. [DHAI] - Last Close: $0.88

DIH Holding US, Inc., is a global provider of advanced robotic devices used in rehabilitation, integrating visual stimulation to enhance patient outcomes.

DIH's stock is up 9% before the opening bell today after announcing an expanded partnership with Nobis Rehabilitation Partners, who plan to use DIH’s overground gait and balance training device in all their newly established hospitals.

My Take: This partnership could be a big move for DIH. Keep a close eye on the stock for further growth.

Technology

With top clients like Airbus and BMW, a 59% revenue surge in 2023, and energy-saving products, this company could be the next big thing.

Everything Else

That’s all for today. Thank you for reading. If you have any feedback, please reply to this email.

Best Regards,

— Adam Garcia
Elite Trade Club

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