Markets are sitting on a ledge, and this week could tip things fast. That’s why I’ve handpicked five stocks - some to hold, some to trade, and one to steer clear of.
From Palantir’s earnings setup to IBM’s quiet strength and a bullish breakout in Brookdale, this week’s list covers it all.
Plus, I’ve got one income gem (hint: it’s fizzy) and one warning shot with downside risk to $35. If you’re looking for ideas that match this market’s mood, this is the list to read now.
Please feel free to send me your thoughts and comments at [email protected].
Palantir (PLTR) reports earnings today - Monday, May 5 - and this could be a major catalyst for the next move higher in the stock.
Investors have seen this setup before: expectations get reset, the company delivers, and the stock rips. We’ve already seen signs of that pattern taking shape.
Over the past three months, Palantir has signed a wave of new contracts across both government and commercial sectors. That includes multi-million dollar deals with the U.S. Army, Department of Health and Human Services, and international governments.
This is proof that demand for Palantir’s AI-driven platforms continues to grow across mission-critical areas despite the weakening economy.
Technically, Palantir shares are trading in a solid base just above a recent consolidation. The stock saw a “buy the rumor” rally over the last week that suggests investors are trying to position ahead of another strong report.
In addition to Buy the Rumor investors, some of last week’s buying was likely represented by short sellers trying to avoid another short squeeze by closing positions ahead of earnings Monday.
This consolidation sets the stage for a potential breakout if earnings show continued strength in margins and customer growth.
The timing couldn’t be better. Investors are hungry for real AI revenue as many - not hype - and Palantir is one of the few delivering on this level.
The long-term story remains intact. Palantir is building the infrastructure for applied AI across industries. From defense and energy to supply chains and healthcare, the company’s reach is expanding—and it’s all powered by software that gets smarter the more it’s used.
Earnings today are more than just a quarterly update. They’re a chance for Palantir to reassert itself as one of the most important AI stocks in the market—and for investors to catch the next leg higher.
IBM (IBM) is quietly emerging as one of the strongest long-term AI service stocks in the market—and it’s doing it without the hype.
While many “AI technology” names have stalled or pulled back, IBM’s focus on enterprise-grade AI services has allowed it to outperform in 2025. Shares are up 12% year-to-date and a remarkable 54% over the past 12 months.
Two weeks ago, the stock dipped more than 6% after its earnings report, but that drop was short-lived.
IBM stock has now fully closed that gap and is trading higher again, signaling renewed investor confidence.
Last week, the stock broke back above its 50-day moving average. While that trendline remains in a short-term bearish pattern due to post-earnings consolidation, the broader technical picture looks strong. IBM is trading well above its 200-day moving average, which remains in a bullish trend.
Even more impressive, shares are above their 20-month moving average—placing the stock in a confirmed long-term bull market trend, something few of the Magnificent Seven stocks can claim right now.
With AI service demand accelerating across industries like finance, healthcare, and government, IBM is well-positioned as a trusted player offering scalable, enterprise-focused solutions. Add in a 2.7% dividend yield and a long-term price target of $300, and you’ve got a stock that offers both growth and income potential.
The recent pullback was a gift. IBM is back in motion—and the next leg higher may already be underway.
Brookdale Senior Living (BKD) is setting up for another bullish run, and it’s trading under $10.
For those not familiar, Brookdale is one of the largest operators of senior living communities in the U.S., offering independent living, assisted living, memory care, and rehabilitation services.
The company’s operation sits at the intersection of healthcare and real estate - two sectors that tend to hold up well in economic slowdowns.
That’s especially true right now. The aging population in the U.S. is exploding, and demand for senior care services is growing fast. Brookdale is well-positioned to capitalize on that trend as it expands and improves operations across its network of communities.
Technically, the stock is showing strong momentum.
Shares are currently trading above both their 50-day and 200-day moving averages, which confirms the start of a bullish trend.
Even more promising is that those two averages are closing in on a Golden Cross pattern. That’s when the 50-day moving average crosses above the 200-day - one of the most reliable signals that a sustained momentum rally is coming.
The last time Brookdale triggered a Golden Cross was June 2023. That move launched a rally from $3.60 to $8 over the following months.
With strong fundamentals and a technical breakout in the making, BKD looks like a smart bullish setup heading into summer.
Coca-Cola (NYSE: KO) remains a cornerstone in my dividend portfolio. The company recently increased its quarterly dividend by 5.2% to $0.51 per share, marking its 63rd consecutive annual dividend hike. This brings the annual dividend to $2.04 per share, yielding approximately 2.85% at the current share price of $71.65.
In 2025, KO has demonstrated robust performance, with shares up nearly 16% year-to-date and over 19% over the past 12 months. That performance has the stock is trading in both short- and long-term bullish trends.
As a consumer staple and often categorized as a "sin stock," Coca-Cola tends to perform well during economic uncertainties.
Coca-Cola’s global brand recognition and diversified product portfolio provide resilience against market volatility. Moreover, the company's commitment to returning value to shareholders is evident in its consistent dividend increases and strong free cash flow generation.
Coca-Cola's track record and current performance make it a compelling choice. Its ability to navigate economic challenges while delivering steady returns aligns well with a long-term, income-focused investment strategy.
Etsy (ETSY) is flashing warning signs again, and the latest earnings report confirmed what many investors feared: the slowdown is real - and it’s not over yet.
Etsy posted a surprise loss of $0.49 per share in Q1 2025, missing Wall Street expectations by a wide margin.
Gross Merchandise Sales (GMS), arguably the most important metric for the company, dropped 6.5% year-over-year. Even adjusting for currency, GMS fell 5.7%, showing broad-based weakness across its marketplace.
The company blamed part of the miss on the sale of Reverb, but the core business is clearly under pressure.
As a consumer discretionary stock, Etsy sits in one of the worst-performing sectors right now. With inflation sticking around and economic uncertainty on the rise, consumers are pulling back on non-essential spending. That’s exactly the type of environment that puts Etsy at a disadvantage, especially over the next 6–12 months.
Technically, the stock is in a downtrend and just broke below key support. The path of least resistance is lower, and sentiment continues to deteriorate.
Based on current momentum, the next price target is $40. If that level doesn’t hold, investors should prepare for a further drop toward $35.
Etsy’s pandemic-era growth story may be over. What’s left now is a company navigating a consumer slowdown with fewer tailwinds—and more downside risk.
