Three Stocks: Apple, Ollie's, and Dell

Apple

The battle is over, and the winner has been crowned Number Two!

You read that right.

Friday's closing prices were used to determine the new weighting of the Technology Select Sector SPDR ETF (XLK).

The popular technology ETF uses a market cap weighting to construct its holdings. Friday's market cap for the largest technology companies was used, with Microsoft (MSFT) retaining its title as the #1 holding for the ETF.

Second place went to NVIDIA (NVDA), which moved from 6% of the ETF to a whopping 22%.

Third place Apple (AAPL) drops to a weighting of 4.5% from 22%, basically switching spots with NVIDIA.

The rebalance will generate close to $10 billion in buying for NVIDIA stock while generating the same in selling for Apple, but the charts don't reflect that today.

Apple shares are trading 3% higher to new all-time highs, while NVIDIA shares are up fractionally.

Both moves are on better-than-average volume, which frankly has a lot of market participants I've contacted scratching their heads.

Apple shares remain well in overbought territory after their post-earnings rally last week. The stock should be considered a pullback candidate as the end of the week approaches, with $205 as a fair buying price target.

aapl stock chart

Ollie's Bargain Outlet 

The retail sector continues to reveal that inflation-wary shoppers are slowing their buying patterns, but there's one stock that's attracting buyers through its doors. Last week, Ollie's Bargain Outlet (OLLI) posted earnings that were better than expected by The Street, as shoppers are on the prowl for the best deals they can find.

Earnings per share (EPS) beat expectations, as revenue was higher than analysts' forecasts. Within the details of the company's last financials was a net income margin of almost 10%, a rate that is about double that of the operators in their industry.

For years, the post-pandemic supply chain situation meant that Ollie's stores had limited inventory coming through their doors.

That resulted in the stock extending its poor performance from 2023 into a wide trading range that the stock is in the process of breaking out of with its approach to $100.

Wall Street has taken note of the improvements, as JPMorgan upgraded shares of OLLI this morning, providing the backdrop for today's 9.4% rally.

The current price target from all Street analysts sits at $99.07 per share.

That price is less than 4% away from Ollie's current price, along with the psychologically significant $100 price level. Expect upgrades in Wall Street's price targets to hit the headlines soon, as the stock breaks above $100 on its way to my $120 price target.

olli stock chart

Dell

Dell (DELL) shares caught fire today, as the stock finally looks ready to rally back towards its recent pre-earnings highs.

Shares traded from their highs at $180 to their recent lows around $130.

On June 3, I noted the support from the $130 price level combined with the stock's 50-day moving average. Shares have been rattling around this price level for the last three weeks, as traders mulled adding to their positions of the AI server provider.

Today, the stock rallied 5% to break out of its recent tight trading range to finish the day above $140. Today's rally was held back by the stock's 20-day moving average.

A break above this short-term resistance at $145 will act as a catalyst to drive the stock back towards its highs near $180. From there, the stock remains a buy with a price target of $200.

dell stock chart