There is life beyond the semiconductor industry
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The earnings season is coming to an end
The second-quarter earnings season in the US is slowly drawing to a close: Cisco Systems will release its latest figures this week, followed by Home Depot, Deere, and Walmart, which will all publish their earnings reports during the week beginning August 17, and Nvidia’s report is due on August 26. Among European companies, E.ON and RWE, among others, will report this week, while among Hungarian companies, AutoWallis will publish its latest figures on August 25.
Gen Digital: Stable Results and Stronger Forecasts
Gen Digital’s earnings report once again delivered results that exceeded expectations, while management raised its full-year forecast for the fourth consecutive quarter, further reinforcing confidence in the company’s growth trajectory. Given the stock’s low valuation, it is particularly encouraging that the company continues to achieve stable growth even after the base effect of the MoneyLion acquisition has run its course. In addition, products based on artificial intelligence are showing increasing user activity, suggesting that, in the long term, AI supports rather than threatens the company’s business model, although intensifying competition in the cybersecurity market continues to require ongoing development expenditures. Gen Digital shares remain on our Equity Top pick List.
The upturn in sectors other than the previously leading technology sector continued. The real estate sector, healthcare, and the consumer staples and consumer discretionary segments all stood out from the rest. This week, we’re analyzing Public Storage, a U.S. real estate company primarily engaged in leasing self-storage facilities. We’re also taking a closer look at Baxter International, a healthcare company that develops and supplies medical technology solutions to hospitals and healthcare institutions worldwide.
Best rated US stocks based on momentum ranking
Compelling technical picture:
Public Storage (daily): The recent upward breakout was preceded by a prolonged consolidation phase. A move above 312.5 would be a strong signal for the stock. The rally could open up room to move toward the 2024 high (375). A close below 312.5 would be a setback; in the short term, this could serve as a risk management level.
Baxter International (daily): A breakout from a long-term downtrend has begun, but further confirmation may be needed. A higher low and holding 18.75 as support would be an important signal. The short-term target could be in the gap left behind, between 26.56 and 28.13.
List of stocks with a chance of a turnaround in the coming weeks
Most popular US stocks
The momentum model supports the creation of a technical based stock list that helps to find shorter-term trading opportunities. The model can be used to identify stocks that show reversal signals following more sustained falls/underperformance. We examine one-year, six-month, three-month, one-month and five-day momentum values, which are used to rank the stocks under consideration. The higher a stock is ranked in the order, the better it technically performs relative to the others. The change in the ranking over time is used to determine the life cycle of the stock.
- In the first table, we collect the stocks that show the most attractive picture compared to the others in a given week based on momentum factors, of which those are also presented in a separate chart where a favourable situation can be identified based on additional technical analysis tools.
- In the second table, we list the stocks that are already worthy of being placed in watchlist status. They are not among the best performers, but they have the potential to improve and signal a turnaround in a few days or weeks.
- In the third table, we have also collected the more popular stocks to help identify their position in the momentum order.
The report shows the results of a technical - quantitative based stock screening, which does not examine the fundamental background/value of the companies. For this reason, risk management/position sizing rules should be designed accordingly.
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