The Insider Report: The Dip Was Bought Before the Holidays

Market Overview

As I shared in last week's report, the dip buying opportunity in markets was capitalized upon last week. Both the S&P 500 and the Dow Jones Industrial Average closed at record levels on the weekly interval last week, with the former finishing up 3.73% and the latter rallying 3.18%. But it was the Nasdaq that rallied the most, closing up 4.91%. However, for the tech-heavy index, it was only the second-highest weekly close in history. There was a notable rebound in the consumer discretionary sector last week, and silver broke out to a new all-time high. Note that this is an abbreviated report since markets were partially closed last week for the holiday.

Stocks I Like

Travere Therapeutics (NASDAQ:TVTX) – 71% Return Potential

What's Happening

• Travere Therapeutics, Inc. (TVTX) is a leading biopharmaceutical company focused on identifying, developing, and delivering transformative therapies for rare kidney and metabolic diseases, offering investors exposure to the rapidly growing rare disease and nephrology sector with a focus on innovative treatments like FILSPARI for IgA nephropathy and Thiola for cystinuria.
• The prior quarter showed revenue of $165.86 million and earnings of $52.77 million.
• This valuation on TVTX is steep. Price-to-Sales is at 7.17 and Book Value is just 0.82.
• From a technical perspective, TVTX is coiled up tightly within an ascending triangle formation. This points to a continuation in the rally from the summer lows.

Why It's Happening

• Travere Therapeutics Inc. is transforming the treatment landscape for rare kidney diseases with FILSPARI (sparsentan), its breakthrough drug already approved for IgA nephropathy (IgAN) and showing strong sales momentum in Q3 2025. This positions Travere to address a critical unmet need in the $10 billion+ rare disease market, where limited options exist for patients at risk of kidney failure, creating a narrative of innovative leadership in precision medicine for underserved populations.
• Pivotal regulatory advancements unlock massive growth potential for FILSPARI in focal segmental glomerulosclerosis (FSGS). The March 2025 sNDA submission to the FDA, backed by positive Phase 3 DUPLEX study data demonstrating significant proteinuria reduction and long-term kidney failure risk mitigation, signals a favorable path to label expansion—potentially doubling the addressable patient population and accelerating revenue from this high-value orphan indication.
• Robust commercial traction and revenue trajectory highlight Travere’s execution strength. Q3 2025 net product revenues for FILSPARI surged 40% year-over-year to $56 million, driven by expanded prescriber adoption and patient starts, while full-year guidance was raised to $210-225 million—reflecting a maturing rare disease franchise that builds recurring revenue streams and market dominance in nephrology.
• Strategic pipeline diversification extends Travere’s reach into additional rare conditions. Beyond FILSPARI, programs like pegcetacoplan for C3G and deramiocel for Alport syndrome are advancing through clinical stages, creating multiple near-term catalysts and a balanced portfolio that mitigates risks while capitalizing on the $100 billion+ global rare disease therapeutics opportunity.
• Analyst Ratings:
  • Piper Sandler: Neutral
  • TD Cowen: Buy
  • HC Wainwright: Buy

My Action Plan (71% Return Potential)

• I am bullish on TVTX above $30.00-$31.00. My upside target is $60.00-$62.00.

OutFront Media (NYSE:OUT) – 31% Return Potential

What's Happening

• Outfront Media Inc. (OUT) is a leading out-of-home advertising company operating one of the largest portfolios of billboard, transit, and digital display assets in the United States, leveraging technology and data to connect brands with audiences in real-world environments, offering investors exposure to the rapidly growing digital out-of-home advertising and experiential marketing sector with a focus on innovative, location-based media solutions.
• The last quarterly report had revenue of $467.50 million and $52.96 million.
• Valuation is pretty solid in OUT. P/E is at 31.29, Price-to-Sales is at 2.07, and EV to EBITDA is at 13.45.
• From a technical standpoint, OUT recently broke out from a massive triangle formation, which points to a continuation in the existing uptrend.

Why It's Happening

• Outfront Media Inc. is capitalizing on the resurgence in out-of-home advertising demand, delivering Q3 2025 revenues of $467.5 million—a robust beat on expectations—fueled by strong bookings in national and local markets as brands ramp up spending amid economic recovery and heightened consumer mobility. This performance underscores Outfront’s pivotal role in connecting advertisers with on-the-go audiences, positioning it as a resilient leader in a sector poised for sustained expansion.
• Strategic digital billboard transformation enhances Outfront’s growth narrative and revenue diversification. With total digital displays reaching 1,869 by Q2 2025 and ongoing conversions from static to dynamic formats, the company is unlocking new advertising relationships and premium pricing opportunities, creating a compelling story of technological evolution that drives higher margins and long-term competitiveness in the evolving media landscape.
• Geographically and industry-diversified portfolio provides Outfront with a defensive moat against market volatility. Spanning major U.S. markets with a mix of billboard and transit assets across retail, entertainment, and transportation verticals, this broad exposure captures value from urban revitalization and experiential campaigns, reinforcing its appeal as a stable platform for brands seeking widespread, high-impact visibility.
• Targeted acquisitions and experiential marketing expansions signal bold ambitions for portfolio enhancement. Acquiring $8.5 million in assets during the first half of 2025, alongside ramping up immersive campaigns ahead of major 2025-26 sports events like the Super Bowl and Olympics, positions Outfront to tap into cultural tentpoles and drive incremental revenue from high-engagement activations.
• There's also a short interest position north of 20% in this stock, which makes it ripe for a short squeeze.
• Analyst Ratings:
  • Citigroup: Buy
  • JP Morgan: Overweight
  • Barrington Research: Outperform

My Action Plan (31% Return Potential)

• I am bullish on OUT above $19.50-$20.00. My upside target is $31.00-$32.00.

Market-Moving Catalysts for the Week Ahead

Holiday Seasonality

Not only is this time of the year for the best deals on shopping, but it's also the best time of the year to be buying stocks. It's even better since we just had a 6% correction in the S&P 500, and it served its purpose to shake out the market's weak hands.

It's rather peculiar to see stocks so strong with so much negative sentiment out there. But I think a lot of it has to do with the two economic realities this country faces. For liquid asset owners, things are pretty good, but for those with most of their wealth tied up in real estate, the last few years have been stagnant.

The Fed is going to cut rates again on December 10. This administration is hell bent on juicing asset prices. More importantly, however, they need to focus on increasing real wages. The job market is uneasy right now, but lower rates should help remedy this in time.

Sector & Industry Strength

There were some internal improvements in the tape last week, but there is still an element of caution in this tape. It looks to be resolving itself, but we still see healthcare (XLV) as the top-performing sector since the start of Q3.

The good news is that consumer staples (XLP) is still at the bottom of the pack. Technology (XLK) made some strong progress this past week in a bid to reclaim the top-spot in the sector performance rankings.

Utilities (XLU) are still hanging around in third place, but the big rebound last week occurred in the consumer discretionary (XLY) sector, which jumped two spots into fourth place. This is a bullish signal.

Editor's Note: Rebound in consumer discretionary is good for bulls.

The Most Important Ratio for this Bull Market (Sector ETF: SMH/QQQ) 

When it comes to the biggest theme of this bull market, AI, there is no ratio that is more important than the one between semiconductors (SMH) and the Nasdaq 100 (QQQ). Remember, all of the AI advancements starts with chips.

When SMH is outperforming QQQ, and this ratio is rising, it signals positive risk appetite for the AI trade. Note how in the past few weeks as the high-flying momentum names pulled back, so did this ratio.

I'm still watching the wedge formation on this ratio. It looks like we just had a successful retest of former-resistance-turned-support, and another higher-low to reinforce the existing uptrend in favor of chips.

Liquidity is Coming! (Sector ETF: LQD/IEI) 

Time to check back in on one of the most important ratios when it comes to measuring market liquidity – the one between investment-grade corporate debt (LQD) and 3-7 Year Treasuries (IEI).

With the next rate cut around the corner (on December 10), I'm keeping a close eye on this ratio, because it should continue to climb higher. As long as it maintains its upward trajectory, it signals that liquidity conditions are improving.

When market liquidity is strong, you're not going to see sharp market crashes similar to what we experienced as recently as April. Look how the ratio was dropping into that event. But now, it's turning up. This is a signal to be buying dips.

My Take:

We know that the Fed watches this ratio carefully because of what they did back during the covid crash of 2020 – they went out and bought corporate bonds. The Fed wants to see this ratio rise, as it's a key health barometer for the market.

I actually wouldn't be surprised to see this ratio soar to record highs someday. In other words, we could reach a point where corporate debt starts yielding less than government debt, simply because of the dysfunction we see in Washington.

Cryptocurrency 

Crypto bounced last week but still has a lot of work to do in order for bulls to reassert themselves in the space. I'm back to looking at Bitcoin this week, which is the mothership of the entire sector.

The strong bounce last week was a step in the right direction, but until we reclaim the 100,000-105,000 zone there are still numerous downside risks. Worst-case scenario, a drop to 74,000-76,000 could still play out.

However, there was a downside target in the 80,000-82,000 zone during this latest drop that has been satisfied. If that ends up being the cyclical bottom, then we could still see Bitcoin rally to new all-time highs in 2026. I just need to see it close back above 100,000-105,000 for confirmation of a low.

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