How to Find the Market's Long-Term Winners

• (1:30) - What Should Investors Expect From Nvidia Heading into Earnings?
• (7:00) - Breaking Down Palantir, CrowdStrike and Apple and Their Current Positioning
• (15:05) - Why Should You Believe In Elon Musk Companies?
• (18:30) - Can The AI Trade Continue Much Longer?
• (21:45) - Buy The Best And Ignore The Rest
• (25:50) - Fitz-Gerald Must Have Portfolio ETF and Options Overlay ETF: FITZ & FIZY
• (32:00) - Episode Roundup: NVDA, CRWD, PLTR, AAPL, TSLA, SPCX
• Podcast@zacks.com

In this episode of ETF Spotlight, I speak with Keith Fitz-Gerald, principal at the Fitz-Gerald Group, about his investing philosophy of buying only the best stocks and his outlook for some of the market’s leading companies.

NVIDIA NVDA, arguably the most important company in the world right now, is set to report earnings this week. The company recently partnered with major Wall Street firms to create a new $500 billion financing machine for AI chips. In addition, NVIDIA has equity investments in several companies across the AI ecosystem.

This financial engineering could help ensure that the current AI investment cycle does not end anytime soon. However, critics have raised concerns about GPU depreciation risk and circular financing.

Will NVIDIA remain the undisputed AI leader?

Palantir’s PLTR revenue nearly doubled in the second quarter, and the company raised its full-year revenue outlook. The stock has surged almost 40% since reporting what CEO Alex Karp described as “otherworldly” results.

CrowdStrike CRWD sold off earlier this year along with other cybersecurity stocks and the broader software sector amid concerns that rapid advances in AI could disrupt traditional security software. The shares later rebounded as investors began to see that AI is more likely to expand the long-term cybersecurity opportunity than eliminate it.

How is CrowdStrike positioned in the AI era?

Apple AAPL was the best-performing Magnificent Seven stock earlier this year and briefly took the crown of the world’s most valuable publicly traded company from NVIDIA. However, its shares have declined following underwhelming results.

While many experts keep pounding the table about the benefits of diversification, Keith points out that just 3.7% of all companies have generated 100% of the net wealth created in the US stock market over the past 100 years. We discuss the qualities that separate those companies from the rest of the market.

The Fitz-Gerald Must Have Portfolio ETF FITZ and the Fitz-Gerald Must Have Portfolio and Options Overlay ETF FIZY invest in high-conviction holdings like those discussed above. FIZY also uses an options strategy designed to generate monthly cash distributions.

Tune in to the podcast to learn more.

Make sure to be on the lookout for the next edition of the ETF Spotlight and remember to subscribe! If you have any comments or questions, please email podcast@zacks.com.

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This article originally published on Zacks Investment Research (zacks.com).

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