HAPPY SUNDAY TO THE STREET.

Remember the good old days, when the worst thing crypto bros could do was erase $8B from the US economy? These days, they’ve escalated from felony fraud to kidnapping and torture. A crypto investor was arrested Friday night and charged with the latter, after allegedly imprisoning and beating a man in an attempt to procure his Bitcoin password. Web3 is going just great!

— Brooks & Cas

UBS' QUALITY TIME

Recovery? Not So Fast

You may have breathed a sigh of relief as stock markets shook off their tariff losses and portfolios returned to relative normal levels. But UBS warns that harder times could still be in the cards.

For starters, the 10% baseline tariff isn't going away. Plus, trade negotiations continue, but we're a way away from firm deals with multiple countries — and President Donald Trump is still tightening the screws on trade partners, announcing a 50% tariff against the EU as recently as Friday.

As such, the UBS team advises avoiding high-risk investments. Instead, it's zoomed in on some high-quality companies with solid earnings potential. Here's its shortlist: Eli Lilly $LLY ( ▼ 0.15% ), Broadcom $AVGO ( ▲ 0.1% ), Intuit $INTU ( ▲ 0.03% ), Cintas $CTAS ( ▼ 0.31% ), Heico $HEI ( ▲ 0.37% ), and Salesforce $CRM ( ▲ 1.54% ).

Get a GARP

UBS focused on companies that are well-positioned to generate growth at a reasonable price (GARP). It screened for businesses with a high market cap, decent expected earnings growth, and solid price/earnings multiples.

Throw in UBS's secret sauce — operational quality — and you have its top picks for companies that are well-positioned to survive an economic downturn.

Salesforce, for example, is rated a Buy or Overweight by 45 out of 57 analysts, per MarketWatch. Its AI products are designed to help clients increase sales and retain clients, even on a tight budget. That’s left UBS bullish on the company, even amid widespread uncertainty.

Intuit-ion

Intuit — the fintech behind TurboTax, QuickBooks, and Mailchimp — has also invested heavily in AI.

Many small and medium-sized businesses rely on its cloud-based accounting software. That's unlikely to change, even if they have to make significant cutbacks. That propelled the firm to a big earnings win last week, but UBS believes it could continue to climb higher.

Most of the companies on the UBS list provide essential (and sometimes niche) services for other businesses. Cintas provides uniforms, cleaning, and safety products, while Heico serves the aerospace and electronics industries.

Financial advisors often say that successful investing should be boring. That's doubly so in times of turbulence. The hope is that UBS's GARP stocks can deliver growth without any extra drama.

Sponsored by Huel

Breakfast that’s actually F-A-S-T

No more sad granola bars or sprinting out the door with just coffee.

Huel Black Edition is a ready-in-seconds shake packed with: 40g protein, 6g+ fiber, 0 prep. Just shake, sip, go.

Get 15% off your first order + a free t-shirt and shaker with code HUELSPRING, for orders over $75.

Try Huel today

SAP SURGES AHEAD IN EUROPE’S TECH RACE

Germany’s Tech Titan

SAP SE $SAP ( ▼ 0.16% ), the German enterprise software giant, is turning heads this year — and not just in Europe. With shares up more than 21% in 2025, SAP has climbed to the top of the continent’s corporate ladder, now ranked as Europe’s most valuable company.

Despite global market jitters and renewed tariff talk from President Trump, SAP has stayed on an upward trajectory. Unlike hardware-heavy peers like Apple $AAPL ( ▼ 1.08% ) or Tesla $TSLA ( ▼ 13.98% ), SAP’s software focus means it has been largely insulated from trade disruption.

In fact, the company’s tools actually help clients manage tariffs — a timely benefit amid global uncertainty. Analysts at Deutsche Bank estimate SAP has driven nearly half of Germany’s DAX index gains this year. It’s a role reminiscent of how the Magnificent Seven carried US markets in recent ones.

Cloud Ambitions and AI Potential

SAP is gaining traction in its cloud transformation, and analysts see more room to run. The German software giant is still early in its shift to cloud-based services and AI integration — two trends that analysts argue could drive stronger productivity and long-term growth.

According to Bernstein’s Mark Moerdler, about two-thirds of SAP’s new cloud customers this year were entirely new to the platform. That’s a strong signal that its offerings are resonating beyond the existing base.

Meanwhile, customer retention remains a bright spot. Roughly 86% of SAP’s revenue comes from repeat clients, giving it a steady foundation as it leans into expansion and innovation.

Valuation Check

Of course, all this momentum has a price. SAP currently trades at approximately 50x earnings, per SeekingAlpha, well above tech peers like Oracle $ORCL ( ▲ 1.73% ), Microsoft $MSFT ( ▲ 0.76% ), and Alphabet $GOOGL ( ▲ 0.1% ).

That’s fueling debate about whether SAP’s rally is sustainable. Despite this, most analysts on Wall Street remain bullish on the stock. The average price target for SAP is currently sitting at €300, implying more than 15% upside from Friday’s close.

Sponsored by RYSE

THE SUPPLY CHAIN CRISIS IS ESCALATING — BUT THIS TECH STARTUP KEEPS WINNING

Global supply chain chaos is intensifying. Major retailers warn of holiday shortages, and tech giants are slashing forecasts as parts dry up.

But while others scramble, one smart home innovator is thriving.

Their strategic move to manufacturing outside China has kept production running smoothly — driving 200% year-over-year growth, even as the industry stalls.

This foresight is no accident. The same leadership team that saw the supply chain storm coming has already expanded into over 120 BestBuy locations, with talks underway to add Walmart and Home Depot.

At just $1.90 per share, this resilient tech startup offers rare stability in uncertain times. As investors flee vulnerable companies, this window is closing fast.

SECURE YOUR POSITION BEFORE PRICES RISE

GROUP 1 IS READY TO ROLL

Buckle Up and Drive Group 1

Investors are parking capital in used cars as a way to steer through tariff turbulence. Shares in Carvana $CVNA ( ▼ 0.47% ) — an online used car company — rallied after the CEO said tariffs might drive consumers toward second-hand cars.

Citigroup $C ( ▲ 0.38% ) thinks investors should leave Carvana in the garage and instead jump into Group 1 Automotive $GPI ( ▼ 0.63% ). Analyst Michael Ward raised his price target $463 to $495 and reiterated his Buy rating on the stock.

The new target is roughly 16% up on Friday's close and reflects Ward's expectation that the dealership will keep its foot on the gas.

COVID in the Rearview Mirror

According to Barron's, Group 1 Automotive — which sells both new and used vehicles — owns over 330 auto franchises in the UK and US. The company announced strong Q1 earnings in April, beating analyst estimates.

Ward pointed out that dealer stocks are trading at a discount to pre-COVID levels, despite strong performances. He argues this will change as investors put the pandemic disruptions behind them.

Not only could tariffs increase used-car demand, but Group 1's UK operations should also be insulated from related trade disruptions, Ward went on to say. The analyst thinks that this could translate into a double-win for the stock.

Defensive Gear Shift

The heightened interest in stocks like Carvana and Group 1 Automotive reflects a wider analyst focus on defensive and potentially tariff-proof stocks.

Wider analyst views are mixed. Per the Wall Street Journal, 6 out of 11 have GPI at a Buy, while the remaining 5 say it's a Hold. CFRA, who rate the stock a Hold, says that around half of Group 1's revenue comes from new car sales. Tariffs could seriously dent this part of the business.

Ultimately, investing is a bit like buying a used car, whether you’re buying used car stocks or any others. You can kick the tires and check under the hood. But there’s no way to know how many miles it’s got left until you take it for a spin.

LAST WEEK’S POLL RESULTS

Are you bullish or bearish on Sphere Entertainment (SHPR) over the next 12 months?

▇▇▇▇▇▇ 🐂 Bullish

▇▇▇▇▇▇ 🐻 Bearish

And, in response, you said:

• 🐂 Bullish — “The creative industry is buzzing with activity, and from the look of things, it will not be slowing down over the next 12 months lol. This places a demand on bespoke venues like the Las Vegas Sphere, increasing revenue, profitability, and stock price.”

• 🐻 Bearish — “It needs to start making money, which I feel is a ways off.”

Are you bullish or bearish on Teva Pharmaceuticals (TEVA) over the next 12 months?

▇▇▇▇▇▇ 🐂 Bullish

▇▇▇▇▇▇ 🐻 Bearish

And, in response, you said:

• 🐂 Bullish — “Big Pharma = Big Winnah.”

• 🐻 Bearish — “Unstable, unpredictable earnings exposed to litigation.”

Which stock do you think will outperform over the next 12 months?

▇▇▇▇▇▇ Microsoft (MSFT)

▇▇▇▇▇▇ JPMorgan Chase (JPM)

And, in response, you said:

• Microsoft (MSFT) — “Banks about to make 2008 look like baby food.”

• JPMorgan Chase (JPM) — “It’s on the move up.”