👉️ Nasdaq Climbs More Than 1%: Stocks Finish Strong Week 📈 

👉️ Value vs. Growth Stocks: Where to Bet Now 💰️ 

👉️ What If You Could Generate Extra Income on Stocks You Already Own? Find Out How Below 💸 

Nasdaq Climbs More Than 1% as Stocks Finish Strong Week

Stocks rose on Friday, extending a four-day rally, with the Nasdaq gaining 1.3%, the S&P 500 up 0.7%, and the Dow slightly higher by less than 0.1%.

The Nasdaq turned positive for April with a 6.7% weekly gain, while the S&P 500 and Dow rose 4.6% and 2.5%, respectively.

Optimism stemmed from hopes of de-escalating U.S.-China tariff tensions and President Trump’s softer stance on trade, including progress on a Japan tariff deal and backing away from threats against Federal Reserve Chair Jerome Powell.

Despite that, consumer sentiment hit near-record lows due to tariff uncertainty and analysts warned of lasting damage to U.S. credibility with foreign investors.

Treasury yields fell, with the 10-year at 4.267%, reflecting expectations of a U.S. economic slowdown.

China signaled no trade talks with the U.S. but planned economic support measures.

As for tech, Alphabet’s $GOOG ( ▼ 1.52% ) strong earnings lifted the Nasdaq, while Intel $INTC ( ▼ 0.51% ) dropped 6.7% due to a reported loss and trade-related cost concerns.

This week major tech firms like Amazon $AMZN ( ▼ 1.01% ), Apple $AAPL ( ▼ 0.92% ), and Meta $META ( ▼ 0.52% ) report earnings.

Value vs. Growth Stocks: Where to Bet Now

Welcome to another edition of The Profit Zone!

With the markets experience some turbulence, investors face a timeless question:

Value or growth stocks?

In 2025, economic shifts, like cooling inflation and stable rates, make this choice critical.

Let’s break down the debate, examine real-world examples, and guide your next move with pure data, not just hype.

What Are Value and Growth Stocks?

Value stocks are stocks that trade below their intrinsic worth, often measured by low price-to-earnings (P/E) or price-to-book (P/B) ratios.

Think mature companies with steady cash flows, like banks or utilities.

On the flip side, growth stocks prioritize revenue or earnings expansion, often sporting high P/E ratios due to future potential, like tech or biotech firms.

In the past, value stocks have outperformed in stable or bearish markets 📉 

While growth stocks shine during bull runs 📈 

But in 2025’s market, these mixed signals demand a closer look.

The Case for Value Stocks

Value stocks thrive when investors seek safety and dividends.

In 2025, with the Federal Reserve holding rates at 4.25–4.5% after 2024 cuts, value sectors such as financials and industrials start to gain more traction.

For example:

JPMorgan Chase $JPM ( ▲ 0.3% ), with a P/E of 12x and a 2.30% dividend yield, offers both stability and income.

Its $344 trillion balance sheet and consistent buybacks signal resilience, even in a market slowdown.

Additionally, Caterpillar $CAT ( ▼ 0.87% ), a construction giant, boasts a P/E of 14x and a 1.84% yield, benefiting from U.S spending on infrastructure.

A value stocks edge lies in its tangible assets (things you can touch and see) as well as lower volatility, which is key in uncertain times.

The Case for Growth Stocks

Growth stocks, which are fuelled by innovation, dominate when risk appetite is higher.

Despite 2025’s tech pullback, it still offers some selective opportunities.

NVIDIA $NVDA ( ▼ 0.88% ), with a P/E of 38x, continues to lead in AI chips, posting 69% revenue growth per year over the last 3 years.

Its $2.71 trillion market cap reflects investor confidence in AI’s long-term potential.

Alphabet Inc. $GOOG ( ▼ 1.52% ), balances growth with value traits.

Trading at a P/E of 18x, 10.8% revenue growth per year over the last 3 years, and a $73 billion cash reserve as of December 31, 2024.

Alphabet’s AI investments and cloud expansion position it for outsized gains.

Growth’s attractiveness comes from its massive upside.

The S&P 500 Growth Index totalled a 35.86% return in 2024, that isn’t a small number.

With AI and green energy driving innovation, growth stocks in targeted sectors remain a compelling argument.

However high valuations (ex: Nvidia’s $NVDA ( ▼ 0.88% ) P/E of 38x vs. market average of 36x) demand that you select carefully to avoid overpaying.

2025 Market Context

Today’s market blends opportunity and risk.

The Fed’s neutral stance stabilizes rates, but geopolitical tensions and tariff talks could spark further volatility in the market.

Value stocks offer a buffer for you as an investor, especially in sectors like utilities and consumer staples that have the ability to weather economic storms.

Yet growth’s momentum, especially in AI and renewables, persists as firms like Tesla $TSLA ( ▲ 0.51% ) continue to innovate despite high P/Es (157x).

Real-World Examples

• Value Win: In 2022, when the market seemed to be falling forever, ExxonMobil $XOM ( ▼ 1.43% ), a value stock, surged 87% as oil prices spiked, while tech-heavy growth lagged.

• Growth Win: Amazon $AMZN ( ▼ 1.01% ) soared by 80% in 2023, driven by cloud and AI growth, despite a high P/E ratio. Early investors reaped rewards by focusing on long-term potential.

Where to Bet Now?

Why choose a side?

My recommendation:

Allocate 60% to value for stability, targeting ETFs like $VTV ( ▼ 0.2% ) or low P/E stocks with growing revenues like $JPM ( ▲ 0.3% ) and $CAT ( ▼ 0.87% ) .

Reserve 40% for growth, focusing on market leaders like $NVDA ( ▼ 0.88% ) or $GOOG ( ▼ 1.52% ) with strong fundamentals and balance sheets.

Reinvest any and all dividends to compound wealth.

Monitor P/E ratios and debt levels to avoid traps that might not be visible to the average person.

For example, steer clear of overvalued growth stocks with weak cash flows.

This allocation will defer depending on your goals. It’s not one size fits all. If you need more help with finding your optimal portfolio allocation, upgrade to Premium and get access to our Community The Profit Academy where you can ask me any questions you want.

Action Steps You Can Take Today:

1. Screen Stocks: Use AI finance tools for P/E ratios and growth metrics. My go to is Snowball Analytics. You can sign up here. Using the link earns me a commission at no extra cost to you.

2. Balance Portfolio: Mix value and growth ETFs.

3. Stay Disciplined: Automate investments to avoid emotional trades.

4. Track Trends: Watch tariff impacts and Fed signals, adjusting exposure as needed.

Value and growth stocks aren’t dating. They’re married.

In 2025, a blended strategy leverages value’s safety and growth’s potential, aligning with your focus on compounding your wealth and one day retiring your salary forever.

Stay sharp and let’s keep winning.

Note: the stocks mentioned in this post are NFA. Please do your own due dilligence before investing. The creator of this post does not claim that any of these stocks will continue to perform.

Alex (The Dividend Dominator)
Founder and CEO of Dividend Domination Inc.
Follow me on Twitter, Instagram and LinkedIn

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