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 (“CJ”), a seasoned equity and options analyst with nearly 30 years of experience, is celebrated for his quantitative expertise in quantifying investors’ sentiment to navigate Wall Street with a deeply rooted technical and contrarian trading style.