Stocks are opening with a large move higher on Monday as investors respond to this weekend’s positive trade war negotiations. In a move we’ve never done, Palantir remains on this week’s list following the impressive rally back from a 13% drop after the company’s earnings.
Add to that a car company that is benefitting from the trade war and a “buy the dip” opportunity in a gold stock under $10 and you have the makings of a great Five Stock Watchlist. Enjoy!
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Netflix (NFLX) is still one of the strongest technology names in the market, and the chart says more upside could be coming.
The company’s Q1 earnings beat the market’s expectations with $6.61 earnings per share, up 55% year-over-year. Netflix’s revenue jumped to $10.5 billion. The ad-supported tier is scaling fast, with 94 million monthly users and counting.
Netflix’s next big move will see an increase in live sporting events. The company is pursuing live content with NFL games and WWE Raw. The move would round Netflix’s library to appeal to even more subscribers.
More importantly, Netflix is likely to hold up better than most if consumer discretionary spending takes a hit. For $15 a month, it’s the last thing people cancel in a downturn.
Netflix stock maintains a long-term bullish trend with a price target of $1,350.
The AI Nuclear trade has returned to life as investors have reengaged this group of stocks as a speculative investment.
NuScale Power (SMR) has been quietly turning the corner, and smart money is starting to notice. Q1 revenue jumped nearly tenfold year-over-year thanks to real progress on the Romanian project and key licensing wins. Th AI Nuclear trade isn’t a pipe dream anymore.
With 12 modules in production and a major 77 MWe design approval expected this summer, NuScale is inching closer to full-scale commercialization.
The stock popped 21% after earnings, and a confirmed customer order could be the next catalyst. With $521 million in cash and rising interest from data centers and utilities, SMR looks like a breakout nuclear play hiding in plain sight.
Cemex (CX) looks ready to buck the broader market trend and grind higher over the next 6–12 months.
The setup is simple: infrastructure spending is ramping, and Cemex is right in the middle of that business. U.S. demand for cement and concrete is accelerating, and the company is aggressively leaning in with smart acquisitions in the US. The company also initiated a $150 million cost-cutting program to increase its operating margins.
Cemex shares have rallied more than 30% since their April lows. The Strong rally has the stocks 50-day moving average returning to a bullish trend while preparing to form a “Golden Cross” formation as that 50-day moving average crosses above Cemex’s 200-day moving average. The combination of bullish patters forecasts higher prices for Cemex over the next 4-6 months.
Coca-Cola (KO) just posted another solid quarter of operating results, proving why it remains a core defensive play in uncertain markets.
The company beat on both revenue and earnings, driven by strong international growth and strategic price increases. While volume was flat, KO’s ability to expand margins in a tough environment is a bullish signal.
The stock offers a reliable dividend that yields 2.86% while the company’s stock tacks on additional returns as the stock maintains its bullish trend.
Technically, KO is building a solid base just above its 200-day moving average at $67.50. The stock also maintains a long-term bullish outlook as shares are well above their bullish 20-month moving average. Any breakout above $73 could spark a sustained move higher, but investors should be more concerned with Coca-Cola’s relative strength against the rest of the market and its quality dividend.
Friday’s downgrade of the U.S. debt will ripple through the country’s bond offerings for the next four months according to a quick study on the effects of a downgrade. I say quick, because there have only been three downgrades of the U.S. debt in history, making the summary of outcome relatively easy.
The iShares 20+ Year Treasury Bond Fund (TLT) has been trading in a bear market trend for the last three years as liquidity has tightened, not just because of higher interest rates but also because of less demand for the paper.
Expect that the next 3-6 months will see an 18-20% drop in the TLT.
Investors looking to make money from that drop may consider buying the ProShares UltraShort 20+ Year Treasury. This ETF provides a 2X inverted return of the iShares 20+ Year Treasury Bond ETF (TLT) daily moves. This means a 20% drop in the TLT will result in roughly 40% gains for the TBT shares.
