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.
Shares of Palantir are now trading more than 25% lower than their highs posted just last week. This stock has been a staple of our Five Stocks Watchlist for more than a year due to the company’s long-term growth prospects.
Last quarter’s earnings resulted in the stock flying into the stratosphere as shares became technically overbought and due to the pullback. That happened over the last week following the news that the Department of Defense was planning an 8% cut to its budget for each of the next 5 years.
Just doing some simple “napkin math”, Palantir’s total revenue for the last year amounts to just 0.03% of the Department of Defense’s budget. Over the last year, around 50-60% of Palantir’s revenue has come from government contracts, but that’s changing as Palantir is diversifying its revenue stream from government contracts into the private sector.
Bottom line here is that the Department of Defense could do some damage if they pulled all their contracts from Palantir, but that’s not likely to happen. Investors have been looking for a reason to take profits from Palantir after more than 300% gains over the last year.
Today, despite the 30% drop in share price, Palantir shares remain above their bullish 50-day moving average. That trendline is currently at $85, ready to defend the stock from additional selling.
A break below $80 could target another 17% decline to $70 which would put the stock at an incredibly attractive buying opportunity for long-term investors.
Palantir maintains a long-term bull market outlook with a target price of $150.
Last week, Walmart warned that inflation was set to squeeze profits from the company’s operations in 2025, news that put the Walmart bulls on the defensive as the stock dropped more than 10%.
The news should have been just as catastrophic for shares of Kroger (KR) but the grocery technology giant has held near its all-time highs. There’s a twist… Kroger fights inflation better than Walmart.
The economy’s last bout with inflation hit shoppers of both Walmart and Kroger the same. Prices on everything from Eggs to pancake mix increased, but it was Kroger that took advantage of the situation by focusing marketing and pricing on their “Private Selects” brand.
Shoppers began favoring Kroger’s private brand, adding to the company’s margins and profitability as Walmart was left in the dust.
Today, as we prepare for the next round of inflation in 2025, Kroger has expanded its operations using technology. The company’s grocery delivery services have allowed Kroger to expand into new markets without the use of expensive stores. Automated warehouse operations as far south as Florida are now increasing the company’s footprint and margins.
The company’s continued focus on food and grocery items has allowed Kroger to remain a leader in the retail sector while companies like Walmart (WMT) and Target (TGT) struggle with maintaining margins of mixed retail offerings.
From a fundamental and technical perspective, Kroger remains a “Best in Breed” stock among the retail sector.
The streaming wars continue to heat up and Warner Brothers Discovery (WBD) shares are breaking into a new bull market trend.
The Streaming provider is set to announce its quarterly earnings results later this week. Last quarter, Warner Brothers Discovery’s financials showed a continuation in the slow turnaround that started more than a year ago.
The company missed its revenue target, though only showing a decline in top line growth of -3.6%. The previous three quarters had all been marred by revenue growth of -6% or more.
Earnings per share, on the other hand, showed an improvement as the company beat its bottom lone expectations. Warner Brothers Discovery earned $0.05 per share against Wall Street’s expectations that the company would lose -$0.11.
While the “turnaround” is in the early stages, investors are becoming excited about Warner Brothers Discovery potential move into the NBA as a streaming provider as well as the company’s continued focus on its streaming divisions that will include HBO and Max under one unit.
From a price perspective, Warner Brothers Discovery posted a long-term tradable bottom just above $6 in 2024 and entered a new long-term bull market trend in December of 2024 as the stock moved above its 20-month moving average.
With further consolidation in the streaming universe in 2025 and 2026, Warner Brothers Discovery appears to be position as one of the companies that will emerge from the group as a leader.
Shares of Warner Brothers Discovery are in a long-term bull market trend with a price target of $17.50.
Shares of Verizon are now trending higher as investors are looking for “safe haven” stocks that pay higher income yields.
The communication giant fits the bill for both of those descriptions as the stock is currently trading with lower volatility that the S&P 500’s collective of stocks while yielding more than 6.5% per share of income.
In January, Verizon delivered earnings results that impressed investors as the company’s nearly doubled its revenue growth for the quarter. At the same time, Verizon continued its trend of meeting or exceeding earnings per shares targets. That trend is now nearing its third year in length.
Shares of Verizon have been trading in a wide range since the beginning of 2025 as shares are now posting gains of 15% from their January lows. The boost in share activity was triggered by investors’ reaction to the stock’s earnings report on January 24 as the stock shifted above its 50- and 200-day moving averages.
Since then, both trendlines have shifted into bullish patterns, forecasting higher prices for the next 4–6-week period.
In addition, Verizon’s 50-day moving average is preparing to make a bullish cross above its longer 200-day moving average. That convergence will form a “Golden Cross” pattern, a bullish forecaster of prices.
Shares of Verizon are also preparing to move above $44, a price that has acted as resistance for the stock since September 2024. A shift above this price is likely to increase buying interest n Verizon stock.
Verizon maintains a long-term bullish outlook with a price target of $50.
Shares of Tesla continue to struggle as the stock sets up for another 10-15% decline.
The EV manufacturer as been plagued by negative headlines for the last month as investors and consumers appear to be separating themselves from the company’s CEO.
The most recent trend of selling started following the company’s 4th quarter earnings report.
That report showed that Tesla had missed its revenue target by roughly 7% as sales growth of 2.1% had dropped to its lowest since April 2023. That news was followed by reports that showed Tesla registrations in California and Europe have seen significant declines.
The fundamental news has been mixed with a shift in sentiment towards the company’s management as investors worry that Elon Musk may be spending too much time in his new position with the White House Administration.
Regardless of the reason, Tesla share price is flashing another series of bearish signs. The stock recently found technical support at $320 following three Wall Street analyst’s “reiterations” of their “buy” rating for the stock.
That short-term support for the stock has quickly turned back into selling pressure as shares near $320.
Momentum for Tesla shares remains negative as the stock’s 20- and 50-day moving averages are in bearish patterns. This is the first time since early 2024 when the stock was in the midst of a 47% decline.
As of today, shares are trading 30% below their December highs in a pattern that is ominously like that seen in early 2024.
A shift back below the $320 price will draw another round of sellers into Tesla stock with a short-term target of $300, roughly 12% lower than today’s trading price.
From a long-term perspective, Tesla shares do remain in a bull market trend as they trade well above their 20-month moving average of $250.
Shares of Tesla maintain a long-term bullish outlook with a short-term correction price target of $300.
