Market Turbulence: ETFs to Watch Amid Stock Bargains

Market fears grow with tariffs and inflation concerns. Some investors find opportunities in undervalued stocks like Uber, Rivian, and Oracle.

Date: 15-03-2025

AI Rating: 6

Market Sentiment: The report highlights investor wariness due to tariffs from the Trump administration, persistent inflation, and elevated interest rates, causing the S&P 500 to enter correction territory. This situation suggests a bearish outlook, prompting caution as the market appears expensive at 28.8 times trailing earnings.

Potential Bargains: Despite the overall market unease, the report identifies Uber Technologies, Rivian Automotive, and Oracle as undervalued stocks that could present buying opportunities.

1. Uber Technologies: Uber has demonstrated significant growth, with revenue rising at a CAGR of 41% from 2020 to 2024, and net income increasing more than fivefold in 2024. This indicates strong revenue growth and improved profitability. Analysts predict revenue and adjusted EBITDA growth at CAGRs of 14% and 27%, respectively, from 2024 to 2027, suggesting continued positive momentum.

Rating for Uber: 8, due to its strong revenue growth and profitability enhancements.

2. Rivian Automotive: Rivian saw deliveries more than double from 2022 to 2023, although growth stagnated in 2024 amid production challenges. Its expected revenue growth at a CAGR of 34% from 2024 to 2027 is positive, but with lingering net losses and potential for demand challenges, it's indicative of mixed prospects.

Rating for Rivian: 5, reflecting a more cautious outlook despite future growth capabilities.

3. Oracle: Oracle expects to generate up to $27 billion in cloud revenue for the fiscal year, potentially half of its total revenue, with revenue and EPS projected to rise at CAGRs of 12% and 20% from fiscal 2024 to 2027. This demonstrates solid prospects fueled by cloud adoption and AI applications.

Rating for Oracle: 7, given stable growth expectations and strategic positioning in cloud services.

Investment Considerations: Investors should weigh the overall market conditions against the specific opportunities in these stocks. The varying growth rates and profitability projections suggest a selective approach is warranted. Investing in Uber could be viewed as a solid growth play, Rivian's emissions could spark caution, while Oracle shows stability and growth potential in the tech space.

Stocks: UBER RIVN ORCL