Alibaba, MercadoLibre Lead AI-Driven Growth Stocks Rally

Investors are increasingly focusing on growth and value stocks benefiting from clear market tailwinds and robust fundamentals, as seen with Alibaba, which is experiencing strong gains due to its surging cloud and AI businesses after a period of underperformance. Meanwhile, caution is urged toward seemingly profitable companies like Lancaster Colony and Enphase, which face challenges ranging from slow growth to shrinking margins, highlighting that not all profits ensure long-term viability. In the healthcare sector, Molina Healthcare stands out as a value stock with strong revenue and earnings growth, while Cigna is strategically positioned to weather U.S. healthcare policy upheavals by reducing its Medicare exposure. Conversely, Teladoc Health is cited as a value stock to avoid due to stagnating revenue and declining user monetization. Among growth stocks, Hims & Hers Health has more than doubled its value in the past year thanks to demand for weight loss drugs, though regulatory shifts could alter its growth trajectory. These examples underscore the importance of carefully assessing both catalysts and risks when selecting stocks for future gains.