Buying in Bulk:
Costco (COST) dropped their latest earnings results on the market after the close on Thursday. The company beat analyst expectations and declared a special dividend of $15 per share. Shares look attractive at $620 as the retail sector will catch more buying interest in the new year.
Toy Story 2:
I dissed on shares of Mattel (MAT) on Wednesday as headlines are revealing that fewer “toys” are likely to be under the tree this year. Two days – and a hell of a rally – later, and Mattel’s stock has little to show as it’s only 2% higher. Just pointing out the opportunity still exists for a 10% drop in the stock.
Generative AI Grab:
Adobe (ADBE) shares dropped 6% for the day in reaction to the company’s latest earnings after Wednesday’s close. The selloff drops the stock to its 50-day moving average, which is my favorite technical trendline (we’ll talk about that another day soon).
The company’s expectations for revenue in 2024 was the reason for the drop, but this is still one of the leaders in generative AI, meaning that investors will add shares on pullbacks like this. I like the stock at $550.
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.