Do you want the highest quality stocks from the leading industries? Read on!
In today’s roller-coaster market, picking the right stock can feel more like trying to solve a Rubik’s Cube blindfolded. But don’t worry, I’ve done the heavy lifting to bring you three top stocks that are just begging for your attention. And yes, they’re near their buying points.
Why You Should Trust Me
Let’s face it, navigating the stock market can be as perplexing as choosing a Netflix show on a Friday night. But, with a keen eye on the market’s pulse and an unquenchable thirst for success, I’ve pinpointed three stocks that shine brighter than my polished shoe collection. They’re from sectors that are not just leading but dominating. So, let’s dive in, shall we?
The Golden Picks
1. The Underdog Rising: NTAP
- Price near $105; it’s whispering, “Buy me now!”
- Why it’s a catch:
- Accelerated earnings growth – faster than your last sprint to catch the bus.
- Tight price action that screams accumulation.
- Early stage (stage 1), which means it’s prepped for lift-off.
- But, wait, there’s a catch:
- The earnings and sales growth could wear running shoes, as they’re not quite meeting the Olympic standards (a.k.a., CAN SLIM criteria).
And what’s the strategy? With NTAP prancing above the $100 mark and cozying up near its all-time high, there’s little in the way to stop its ascent. Max investment: 5%. Buying at $106.10 and setting a stop-loss at $99.89 seems like a neat trick. Is it risky? Maybe a tad. But no risk, no reward, right?
2. The Stealthy Behemoth: QCOM
- Next EPS date making investors bite their nails: 24 April.
- Here’s why I’m betting my favorite socks on it:
- Accumulated like the most sought-after concert tickets.
- Its financial health glow-up is real.
- Potential party poopers:
- The earnings growth is playing hard to get, not quite flirting back with the CAN SLIM criteria.
And the game plan? It’s lounging just above the EMA 21, a cushy spot that says, “Buy me a drink?” Max investment: 5%. Go for it at $172.71, and let’s not forget a stop-loss at $168.23. Why? Because nobody likes to wake up with buyer’s remorse.
3. The Dark Horse: AMAT
- Earnings day is like waiting for the season finale: 16 May.
- Why it deserves your undivided attention:
- It’s being gathered up faster than free donuts in the break room.
- Its fundamentals are as solid as that 10-hour sleep you’ve been dreaming about.
- Here’s the kicker:
- Its earnings and sales growth are like that friend who says they’re on their way but hasn’t left the house.
So, what’s the move? With its price not quite breaking out of base, it’s like that shy kid at the dance with untapped potential. Max investment: 5%. Take the leap at $209.04 with a stop-loss at $199.97. It’s a bit like playing darts blindfolded but with a better chance of hitting the bullseye.
Before You Leap
Now, you might be thinking, “This sounds great, but what’s the catch?” Here’s the deal: Investing is like ordering a custom coffee; you’ve got to know what you like and what you can handle. Consider:
- The industry rank because nobody wants to back the last horse in the race.
- The base depth because diving into the shallow end hurts.
- And the institutional ownership trend because swimming with the current makes for a smoother ride.
details at a glance
NTAP
- Next EPS Date: NA
- Industry Rank: 7/197
- Stage: 1
- Base Type: Flat Base
- Base Depth, %: 9
- Up/Down Ratio: 1.5
- EPS Trend: Up
- RS Rating: 90
- RS Trend: Sideways
- Institutional Ownership Trend: Up
- Pros:
- Earnings growth has accelerated in the previous quarter.
- Tight price action signals accumulation.
- The price is at an early stage (stage 1), offering good upside potential.
- Cons:
- Earnings and sales growth should be higher; they don’t meet CAN SLIM criteria.
- RS line is not in a clear uptrend.
- Comments:
- The stock price is about $105, indicating it has broken above the $100 psychological level and is near its all-time high, suggesting minimal overhead supply and a clear path upward.
- Although the price is not coming out of the base, making the trade a bit riskier, the proximity to EMA 21 suggests a favorable risk profile if a stop-loss is placed below EMA 21.
- CAN SLIM, SEPA Comments:
- The intraday price action has been very tight, hinting at an imminent rally, though no guarantees.
- Maximum Position Size of a Portfolio, %: 5
- Maximum Favorable Buying Price: $106.10
- Stop-Loss: $99.89
- Position Risk, %: 5.85
QCOM
- Next EPS Date: 24 April
- Industry Rank: 5/197
- Stage: 1
- Base Type: Cup With Handle
- Base Depth, %: 47
- Up/Down Ratio: 1.5
- EPS Trend: Neutral
- RS Rating: 91
- RS Trend: Neutral
- Institutional Ownership Trend: Up
- Pros:
- The stock is accumulated by the market and institutions.
- Financial health of the company has improved lately.
- Fundamentals of the stock are good.
- Cons:
- Sales and earnings growth don’t meet the CAN SLIM criteria.
- The earnings release date is close, potentially adding volatility; not advised to hold through earnings without at least a 5% profit cushion.
- The latest price base was 47% deep, which is considered too much (should be a maximum of 35%).
- The intraday price volatility has been high recently.
- Comments:
- The stock price is slightly above EMA 21, which has acted as a support line, suggesting a relatively low-risk trade.
- CAN SLIM, SEPA Comments:
- It’s not recommended to take a large position currently due to potential volatility.
- Maximum Position Size of a Portfolio, %: 5
- Maximum Favorable Buying Price: $172.71
- Stop-Loss: $168.23
- Position Risk, %: 2.59
AMAT
- Next EPS Date: 16 May
- Industry Rank: 8/197
- Stage: 2
- Base Type: Double Bottom
- Base Depth, %: 17
- Up/Down Ratio: 1.3
- EPS Trend: Neutral
- RS Rating: 94
- RS Trend: Up
- Institutional Ownership Trend: Up
- Pros:
- The stock is under accumulation by the institutions and by the market.
- Fundamentals for the stock are good.
- The price has had tight intraday action, making it easier to buy.
- The price of the stock is in a clear uptrend.
- Cons:
- Earnings and sales growth are neutral and don’t meet the CAN SLIM criteria.
- Comments:
- The stock price is not breaking out of a base, adding some risk; however, buying close to EMA 21 and placing a stop-loss below it still presents a fairly good chance.
- CAN SLIM, SEPA Comments:
- It’s advised not to take a big position relative to your portfolio right now due to the stock not breaking out of a base.
- Maximum Position Size of a Portfolio, %: 5
- Maximum Favorable Buying Price: $209.04
- Stop-Loss: $199.97
- Position Risk, %: 4.34
terms and definitions
EMA 21 Calculates the 21-period exponential moving average, highlighting short-term trends.
SMA 50 Averages the price over 50 periods, showing medium-term trends without overemphasizing recent data.
SMA 200 Averages the price over 200 periods, revealing long-term trends by treating all data equally.
Industry Rank Investor’s Business Daily’s system that ranks industries 1 to 197 based on performance. It guides us in CAN SLIM TRADING towards leading sectors.
U/D Ratio Measures stocks closing up versus down. A ratio above 1.0 indicates bullish sentiment, important in CAN SLIM TRADING.
RS Rating Ranks a stock’s performance on a 1 to 99 scale. I look for at least 85, showing strong momentum and growth potential.
RS Line Compares stock price to the market, plotted as a ratio. We seek an uptrend, indicating outperformance and strong momentum.
Volatility Measures how much a security’s price fluctuates over time. High volatility means large price changes, indicating risk and potential reward.
Institutional Ownership Trend indicates whether the stock is under accumulation or distribution by the institutions.
EPS (Earnings Per Share): A financial metric calculated by dividing a company’s net profit by the number of its outstanding shares. It indicates the amount of profit attributed to each share of stock, serving as a key indicator of a company’s profitability.
Overhead Supply: is a stock market term for a large amount of unsold shares at a certain price level, acting as resistance that prevents the price from rising. It occurs when investors looking to sell at break-even points add to the supply, making it hard for the stock to increase in value until this excess is bought up.
stages
Stage 1: Basing or Bottoming Stage
Definition: A period following a stock’s decline where it starts moving sideways, forming a base. This stage signifies the easing of downward pressure and the beginning of stabilization, indicating that the stock is not in an uptrend yet but is preparing for potential future growth.
Stage 2: Advancing or Uptrend Stage
Definition: The phase in which a stock breaks out of its base on significant volume, indicating a strong buying interest and the initiation of a new uptrend. This stage is considered the most opportune time for investors to purchase the stock, as it is expected to achieve substantial gains.
Stage 3: Top or Peaking Stage
Definition: A stage characterized by the stock beginning to exhibit signs of losing momentum after its upward movement. The stock may start to move sideways with increased volatility compared to Stage 1. This suggests the stock might be reaching its peak, and the existing uptrend could be weakening.
Stage 4: Declining or Downtrend Stage
Definition: This final stage occurs when the stock breaks down from its Stage 3 pattern and enters into a downtrend, marked by a sequence of lower lows and lower highs. It signifies that selling pressure has surpassed buying interest, usually serving as a signal for investors to sell the stock to mitigate further losses.
Wrapping It Up
Choosing the right stock doesn’t have to be akin to finding a needle in a haystack. With these three stellar options, you’re not just ahead of the game; you’re rewriting the rules. Remember, investing is about playing smart, not just playing hard. So, are you ready to take the plunge and watch your investments soar? Because I sure am.
And hey, if all else fails, you’ll have some interesting stories for your next dinner party.
