Each week we’ll bring you five stocks that are on our radar
In the fast-paced world of investing, staying ahead requires good ideas and timely decisions. This article highlights five stocks worth watching each week for their robust performance, market trends, and growth potential. Discover the stocks that could enhance your portfolio and navigate market fluctuations with confidence.
Netflix (NFLX) is scheduled to deliver its quarterly earnings report in two weeks, kicking off the fourth quarter earnings season.
The streaming company is expected to deliver earnings per share results of $4.21. Last quarter, after beating Wall Street’s estimates, Netflix raised their earnings target from $3.90 to $4.23.
The guidance raise indicates two things.
First, Netflix is back on track to take the leadership role in the streaming industry after three years of the industry becoming crowded with competition.
Second, Netflix will have to deliver even stronger numbers than they forecasted to maintain their short-term bullish trend.
This quarter’s results will be driven by the company’s move into live sporting events.
In November, Netflix aired its first heavyweight boxing match. Viewing results from the match were impressive, despite some technical glitches.
Last week, Netflix aired two NFL games that touted record viewership for comparable games.
Shares of Netflix have been trading near the top of their ranges for the last month as the stock looks for a catalyst to take prices higher. The healthy consolidation at $900 may be the pause that Netflix needed before its charge above $1,000.
Netflix holds a bullish outlook with a price target of $1,200.
Broadcom beat analyst expectations for earnings two weeks ago per share by $0.03. The company’s earnings per share results were $1.42, but it was the company’s forward-looking guidance that stole the show.
Broadcom’s management team raised its revenue target for the next quarter’s earnings to $1.46, higher than analysts’ current expectations. If hit, Broadcom would post revenue growth of 15% next quarter, still higher that the semiconductor industry.
The company is one of the few in the semiconductor industry that remains in a bullish trend as investors have reduced their outlook for the sector.
Broadcom shares have been working through an overbought situation after the stock rallied 40% following its latest earnings report. That rally put shares into a situation that required the stock to see a healthy pullback before it could advance higher.
On 12/19, AVGO shares traded to their lows at $220, marking a fast 20% decline. Investors took this as the opportunity to “buy the dip” and Broadcom stock is now perched just below $250, ready to continue its rally higher.
While a move above $250 will be bullish for Broadcom, investors should assess the strength of the semiconductor sector as the January trade begins.
From a seasonality perspective, January begins a two-month run for stocks that proves historically disappointing for investors.
This suggests that shares will trade in a wide range for the next 60 days before mounting a strong rally higher.
After months of building a technical trend and almost a year of improving fundamental performance, Hanes Brands (HBI) are working their way into a long-term bullish trend.
The stock suffered through the 2002-2004 bear market as investors looked for safety in the Magnificent Seven, not a consumer staple company like Hanes. That’s changed.
With valuation on the Magnificent Seven and other technology companies worrying investors, the market has returned to looking for value plays as we continue to see more volatility.
Hanes shares are now trading above their key technical trendlines as they head towards $10.
Currently, at $8, Hanes shares are trading on top of their 50-day moving average. That trendline is in a bullish trend itself, which forecasts higher prices for the stock over the next 4-6 weeks.
HBI shares are also trading above their 20-month moving average. This puts the stock in a long-term bull market trend with a price target of $12.50.
Shares of Altria Group (MO) are sitting at what may be a great buying opportunity.
Over the last three week, the stock has dropped from its highs to support at the stock’s 50-day moving average. The pullback qualifies as a “healthy correction” for this popular dividend yielder.
shares of Altria Group (MO) stand out because of its 8.2% dividend yield.
Add the last year’s growth of the common shares of 32.5% and you’ve got an income investor’s dream.
The company is one of the world's largest tobacco producers as well as marketers of tobacco, cigarettes, and medical products in the treatment of illnesses caused by tobacco.
Altria is categorized as a consumer staples company, which makes it attractive for those investors that are expecting a slowdown in the economy over the next few years. The stock is also inflation resistant as consumer demand for their product is highly inelastic.
Consumer staple companies like Altria, Proctor & Gamble and Colgate-Palmolive (CL) are considered lower volatile holdings during a recession as demand for their products often remains relatively steady.
Altria stock has been trading in a long-term bull market trend since the beginning of 2024. Before that, the stock spent three years trading in a wide trading range, all the while paying that dividend.
Considered one of the best dividend stocks out there, Altria has a bullish outlook with a potential price target of $65.
Shares of Adobe Systems are teetering on the brink of another sharp 10% decline.
Earlier in December, the company released its latest quarterly earnings report. The report showed that Adobe had beaten their targets for earnings per shares, but there was a catch.
The company’s earnings beat was based on earnings targets that had been lowered by Adobe’s management the quarter prior. In other words, the beat lowered expectations and investors didn’t like that.
In addition to the earnings results, Adobe’s management lowered their expectations for the next quarter, meaning that the company is seeing problems with their monetization of AI-based products. This hasn’t been a trend in the AI service sector as companies like IBM and Palantir have seen boosts to their earnings through 2024.
Adobe shares have been treading water at $450 for the last two weeks as shares stabilized following its recent earnings results and outlook. Shares are set to break that support and head towards a short-term target of $400, another 10% lower.
Adobe stock also broke through its long-term 20-month moving average last month, signaling that shares are now in a long-term bear market trend.
