The market falls in love with a sector/group of stocks and despite all noises, those stocks keep going higher sometimes slowly and sometimes faster depending on the market conditions. Here is the list of Large caps, the stocks with a market cap > $10 billion that look good for investments with a 3-9 month horizon and decent upsides.
The stock # 1: CLF
The mention of the stock should not come as a surprise to anyone. I have recommended it many times but the stock has yet to make a giant move. The stock large candle move makes me optimistic about the stock. And today JPMorgan initiated coverage of the CLF with an overweight rating and a price target at 39.
The stock is a buy at the current market price of 21.94 with a stop loss below 20.
Stock # 2: Marathon Oil – The Big Oil trade
As the Oil prices keep moving higher, the stocks like Marathon Oil MRO are poised to do well. I love when there is supportive price action. As you can see in the chart below, MRO made a large candle move to a new high with a gap. This is a very bullish formation and usually, stocks go much higher once they form the pattern. MRO has been trading sideways since then and hence one should be bullish on the stock.
MRO is a buy at the current market price with a price target of 18+.
Stock # 3: CVS – Large Candle Breakout Story
When a stock makes a large candle breakout to a new high, it kickstarts another bull market. CVS has done exactly that and since then has done quiet consolidation making the base of 85 an attractive point to get into.
CVS is a buy between 85 and 86 with a stop loss below 79.
Stock # 4: Viatris VTRS ~ generic drug company
Viatris was formed by the merger of Pfizer’s generic drug unit Upjohn and Mylan (generic-drug manufacturer).
VTRS came out with a good earnings report which resulted in a gap-up move and since then the stock has held that gap and seems to be building a bullish base. The stock is an excellent buy at 15.25 with a stop loss below 14.4
Fundamentally, the stock is extremely cheap as it trades at forward pe of 4 times. This stock can easily double in the next 12 months.
These are not momentum ideas and suitable for investors who can show patience.
Disclaimer – The state of the market notes is Deepak’s perspective on the market. The column is purely for educational purposes. Nothing contained herein is a solicitation to trade or a recommendation of a specific trade. By reading this publication you agree to make no trade relying in whole or in part on the comments of the writers
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