There is always a bull market somewhere and it can be seen in stocks trading near 52-week highs or all-time highs. It indicates strength in the stock and usually, such stock withstands correction and makes a much more sustained move over a period of time. Here’s the list as of today –
Li Auto Price Action
The Chinese EV manufacturer Li Auto is trading above $36 – the highs it made back in June 2021. Here’s the most encouraging part: the stock is consolidating above $36 and looks ready for more upside. Fundamentally, the company has strong sales momentum and Citigroup now has upgraded the stock to $58. One should look to buy on dips near $37 with a stop loss below $33.6
The Risk: These companies are hungry for money and any secondary offering can destroy all the gains in no time. Check the price now
Eli Lilly LLY Price Action
Eli Lilly LLY broke out above 280 in March and then consolidated for months before taking off. The stock is an excellent ride if you bought the stock near 290. I recommended it back then when it was trading near 290.
JinkoSolar Holding JKS Price Action
There is an extremely strong business momentum with this solar company. The company posted impressive earnings numbers. It made revenue of $2.3 billion, which was almost twice the sales tally of $1.22 billion in the year-ago quarter. The stock has conclusively broken out and would be an excellent buy on dips near $71.
Bellus Health BLU Price Action
Biotech stocks are making a move and one stock leading the race is Bellus Health BLU. The stock broke past 9 and then pulled back. I recommended the stock near $9 and now is an excellent stock to ride. It’s a clinical-stage biopharmaceutical company and hence there is always an event risk attached to the stock.
Humana HUM Price Action
The US economy is heading for a recession but one company that has nothing to worry about is a healthcare insurance company Humana HUM. The stock has broken out to a new high and can rally 10-15% over the next few months. This is not a momentum stock but a safe stock in any market environment.
The Chef’s Warehouse CHEF
CHEF broke out above $38 on strong business momentum. The company last month announced that is expected to beat the Revenue guidance it gave earlier. CHEF is a distributor of specialty food products in the United States. They serve restaurants, hotels, caterers, and gourmet stores.
Event risk: The Chefs’ Warehouse CHEF will release its financial results for the second quarter before the opening of the stock market on Wednesday, July 27, 2022
You must be wondering why there is no big large-cap stock except Eli Lilly and Humana in the list because no other stock is trading near highs. I will keep updating the names every day. This will be a weekly post but I will add new names in the comment section. I will add excel sheet tracker too.
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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