It is the direction that counts. The Inflation trajectory is now heading south and everyone seems excited. Here are some stocks that look interesting.
Strong Sector: Semiconductor and Solar
Why does UMC United Microelectronics look like a good buy?
Semiconductor stocks are bouncing back the hardest with NVidia and AMD leading from the front. And then other stocks have joined too namely stocks like UMC. The company reported sales for Oct 2022. It grew 27.1% year on year. The stock has made a Large candle and it is expected to drive momentum in the stock. The stock is a buy below 7.3.
Shopify has been a runaway trade
Shopify did a Gap up on October 27 but then the US Fed and midterm election created chaos. The stock filled the Gap and then by luck of lower inflation expectations, the stock has runaway and is up 25% in just 2 days. The stock is an excellent hold.
SOFI looks interesting
If the rally is for real, then SOFI looks very interesting as it bounces 10% from the base. It is the most traded stock in the midcap category. The stock is extremely oversold and does not have bad fundamentals. The company’s recent third-quarter results were strong, beating analysts’ expectations and prompting the company to raise its full-year forecast. One can buy with the hope of a $9 price target.
Will INDI follow AEHR?
Semiconductor Equipment has been a strong space. AEHR has been the leader in the space. It has been on a runaway momentum. INDI is also in the same space. The company came out with an earnings report and the stock has broken out. It is a buy below 9.3
Buying Solar Stocks
The best way to play this is to Buy TAN
If you have to play stock specific, then look to add ARRY
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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