Top Rated Stock | Musk Still Believes His EV Company, And So Should You

Musk's newly negotiated $1 Trillion Pay Package and $1 billion buyback of Tesla shares attracted all the attention. However, besides all the headlines and 'hoo-ray's, we think everyone should do the exact same thing, which is trusting Elon's EV company, and some other stocks, too.

HERE ARE OUR PICKS FOR THIS WEEK!

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Truist Financial Corp (TFC) — Banking on Margin Pressure and Loan Growth

Median Price Target: $48.73  

Recommendation: Hold  

Truist's most recent quarter (Q2 2025) delivered an EPS of about $0.91, slightly below analyst expectations. The trailing P/E is in the low-teens (~12.3×) and forward P/E is somewhat lower, reflecting modest expectations of earnings expansion.

On the revenue side, concerns persist: revenue trends have shown variability, and overall earnings growth has been mixed, with signs of stress from macroeconomic interest/credit trends.

Positives include relatively strong asset quality, consistent net interest margins (though under pressure in some segments), and a stable dividend. Truist is investing in digital and technology operations to improve efficiency, which — if successful — can help offset margin erosion.

However, key risks include interest-rate sensitivity (especially if rates decline or yield curves flatten), potential credit losses if economic conditions worsen, and competition pressure from both fintechs and larger banks.

TFC looks like a moderate upside play rather than a high-growth stock. If loan demand holds up, rates remain favorable, and Truist maintains cost discipline, we might see earnings growth in the high single digits to low double digits (~10-15%) over the next 12-18 months. But upside is capped unless there's a positive surprise in credit trends or regulatory tailwinds. It's more of a defensive play in regional banking rather than a speculative growth bet.

Tesla Inc (TSLA) — AI, Robotaxis, and Valuation Debates

Median Price Target: $450  

Recommendation: Hold  

Tesla continues to be at the intersection of EVs, autonomous driving, robotics, and AI. Recent developments: Elon Musk has reiterated that ~80% of Tesla's future value may come from its AI business (beyond just cars) — including robotaxis, Optimus robots, and inference chips.

Also, Tesla is streamlining its AI chip research to focus on inference chips, indicating moves to make its AI stack more efficient.

On the regulatory and execution front, their robotaxi program has begun limited rollouts (e.g., Austin), though still with human safety monitors.

However, the valuation is under scrutiny. Some analysts believe market expectations around Tesla's non-automotive AI business are too aggressive relative to short-term fundamentals, especially given recent declines in vehicle registrations in China and mixed EV sales trends.

The shutdown or reorganization of some internal AI infrastructure (e.g., parts of the Dojo supercomputer team) also injects uncertainty about how smoothly their AI ambitions will scale.

For long-term oriented investors, Tesla remains compelling — its AI roadmap, robotaxi strategy, and brand strength give it multiple levers for growth. However, there is a risk: unless incremental progress is reflected in revenues from AI/robotics, valuation multiples may compress. Near-term upside might be limited unless Tesla can deliver on autonomous services or AI monetization. It's a high variance play: big upside if execution and regulation cooperate, sizable downside if expectations overshoot reality.

Marriott International (MAR) — Travel Rebound Mixed with Geographic Headwinds

Median Price Target: $283.58  

Recommendation: Hold  

Marriott's Q2 2025 results showed modest but positive global RevPAR (revenue per available room) growth: up ~1.5% overall, with stronger gains internationally (~5.3%) compared to the U.S. & Canada.

The company also made strategic moves, such as acquiring citizenM, adding a lifestyle/lower-cost brand to its portfolio, which helps diversify its exposure across market segments.

Analyst consensus is a "Buy" with a 12-month price target around $280.84, representing modest upside from current levels.

That said, there are headwinds. The Chinese market remains soft: weaker demand, slower economic growth, and concerns about job security and consumer behavior are dampening travel in Greater China. Marriott has lowered its forecast for full-year profit expectations partly because of these China-related pressures.

Also, while international markets are doing well, inflation (labor, energy), supply cost pressures, and regulatory/tax factors (in different countries) could eat into margins.

Marriott is likely to remain a steady growth name in travel/hospitality with moderate upside. If China recovers, or if international travel continues accelerating, there is scope for margin expansion and higher returns. For investors, MAR seems like a relatively lower risk among travel plays — not going for explosive gains but with potential for stable growth, some dividend income, and benefit from global travel trends. Watch for China demand as a key sensitive variable, as well as costs (labor, energy) and geopolitical/travel restrictions.