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As the global economy continues to reopen, some of the biggest breakout candidates aren't so hard to imagine – stocks like last week's real estate pick, Iron Mountain, or our play on famous Brewmeister Molson Coors earlier last month.
But some other big opportunities hitting my radar now aren't the most easily recognizable "post-COVID-19" plays.
Today, I'm zeroing in on a shipping stock in the early stages of a mid- to long-term runup. Analysts may not be impressed by its modest 4% year-to-date gain, but with a hand in every consumer market across several continents and a wealth of technical indicators adding some steam to the rally, I'm expecting big things from this stock over the next few months.
This Stock Won't Fly Under the Radar for Long
Shipping probably isn't the first thing that comes to mind when looking for a piece of the reopening elation buzz…
Frankly, it isn't sexy. It doesn't scream "summer fun" or "the pandemic's over."
But it's a vital piece of the ongoing economic recovery, and it's a plea felt by enormous cross sections of the market.
Demand for everything from groceries to pharmaceuticals and retail goods is quickly outplacing supply. And as companies everywhere ramp up production to fulfill a backstock of orders, the one thing they'll need more than anything is shipping containers.
Enter Amcor Plc. (NYSE: AMCR).
This shipping specialist manufactures packaging for just about anything you can think of. And as global economies continue reopening, stocks like this will soon become essential to restoring "business as usual."
Last month, Amcor announced earnings, narrowly missing EPS expectations by about 5% and welcoming a horde of critics and short sellers. But with a promising forward-looking position and upward-trending shares after finding some support from its 50-day moving average, I'm expecting a long-term bull run for AMCR stock – not to mention a potential short squeeze to supercharge the impending breakout.
Here's exactly how you should play it now:
Action to Take No. 2: Buy to open AMCR Jan. 21, 2022 $12 calls (AMCR220121C00012000) using a limit order of $0.90.
One More Thing…
The one big takeaway from today's edition of Fast Profits: Sometimes the biggest winners aren't the most obvious. And they don't always have to be.
Today's market is overrun by new traders acting on nothing more than a hunch. But sometimes, the biggest paydays are brewing in corners of the market where you'd never think to look.
Take Tom Gentile's readers – those folks, mostly everyday traders with no professional experience, having been raking in gains like 90%, 149%, and 233% in less than 24 hours.
And not by trading on sentiment or snappy headlines from Finance Media….
But by using the time-tested system of a trading expert – Tom's "Four-Day Profit Cycle." It's as simple as making an easy, no fuss trade like this and waiting for the returns to come rolling in – sometimes in a matter of hours.
Just click here to let Tom show you how it's done…
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About the Author
Chris Johnson is a highly regarded equity and options analyst who has spent much of his nearly 30-year market career designing and interpreting complex models to help investment firms transform millions of data points into impressive gains for clients.
At heart Chris is a quant - like the "rocket scientists" of investing - with a specialty in applying advanced mathematics like stochastic calculus, linear algebra, differential equations, and statistics to Wall Street's data-rich environment.
He began building his proprietary models in 1998, analyzing about 2,000 records per day. Today, that database, which Chris designed and coded from scratch, analyzes a staggering 700,000 records per day. It's the secret behind his track record.
Chris holds degrees in finance, statistics, and accounting. He worked as a licensed broker for 11 years before taking on the role of Director of Quantitative Analysis at a big-name equity and options research firm for eight years. He recently served as Director of Research of a Cleveland-based investment firm responsible for hundreds of millions in AUM. He is also the Founder/CIO of ETF Advisory Research Partners since 2007, noted for its groundbreaking work in Behavioral Valuation systems. Their research is widely read by leaders in the RIA business.
Chris is ranked in the top 99.3% of financial bloggers and top 98.6% of overall experts by TipRanks, the track record registry of financial analysts dating back to January 2009.
He is a frequent commentator on financial markets for CNBC, Fox, Bloomberg TV, and CBS Radio and has been featured in Barron's, USA Today, Newsweek, and The Wall Street Journal, and numerous books.
Today, Chris is the editor of Night Trader and Straight-Up Profits. He also contributes to Money Morning as the Quant Analysis Specialist.