AI Service companies appear to have been the big winners of the most recent earnings season, and Palantir (PLTR) has been one of the industry leaders.
Last quarter’s positive earnings results have been immediately followed by a surge in new business deals for the AI data analysis company as four new deals were recently announced by the company.
The steady flow of new business reflects management’s positive outlook for the next quarter and 2025.
Shares are trading well in long- and intermediate-term bull market trends as the stock is preparing for a surge to $40 after breaking above the round-numbered $30 price level just a few weeks ago.
The consumer is starting to gain confidence again as we near the Fed’s first lowering of interest rates on September 18.
Months ago, Costco’s (COST) price temporarily weakened as questions on how resilient the consumer would remain through 2024 -and- the odds of a recession taking hold of the economy were on the rise.
Both of those questions are much closer to being answered as the Fed is set to lower interest rates in two weeks and consumer strength is gaining ground again.
Costco has been one of the better executors in the retail industry for the last two years as their bulk pricing has allowed consumers one means to fight inflation.
Costco stock is now preparing to break above $900 as the stock’s momentum is turning more positive.
Watch for Costco stock to cross $900 on its way to $1,000 before year-end.
The Fed is going to be the catalyst for many stocks over the next few months, including Sofi Technologies (SOFI). The banking/Fintech company is set to benefit from the Fed’s shift in interest rate policy as lower rates will benefit Sofi’s operations.
Existing loans that were written at higher rates will now be able to receive some relief as consumers may be able to refinance to lower payments, avoiding default.
Lower interest rates also means that banks and fintech companies will see more new business activity
Shares of Sofi surged higher last week with the stock rallying above $8 for the first time since February.
The stock’s 50- and 200-day moving averages are in newly minted bullish trends, indicating positive momentum for SOFI shares.
Last week’s break above $8 targets a move to $10 for SOFI shares.
Sticking with the strengthening consumer theme, Darden Restaurants is making a turnaround in its trend that wasn’t expected just months ago.
Darden (DRI) shares had fallen into a bearish trend in April as the stock’s 50-day moving average turned bearish. That change in trend led to a 11% decline, but the same trend just reversed last week.
As of 8/21, the 50-day moving average trend has turned bullish and is now forecasting higher prices for the casual restaurant chain.
The stock is preparing for a technical breakout above $160 which will then raise the price target for DRI to $175.
Bonus, Darden pays a 3.32% dividend yield.
The lithium trade is all but dead, for now.
Two years ago, Albemarle and other lithium producers were scorching hot as EV sales and demand were on a parabolic rise.
That’s changed as EV sales are now slumping with a lighter forecast than what was driving lithium prices higher two years ago.
Albemarle (ALB) prices peaked ahead of 2023 and haven’t gained traction since then.
Shares are now trading at $87 – they were at $300 in 2022 – as demand for lithium and other basic materials continue to slump.
Target a break below $85 to target a move to $50.
