The technical outlook of Expedia is looking good
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Our Equity Top Pick List
We have updated our Equity Top Pick List to reflect the events of the past quarter. The list includes those stocks, typically US and European ones, that we consider to be proper investment choices from a fundamental point of view. It can provide a starting point for building a sector-diversified equity exposure in portfolios, but can also be used as a watch list. Technical analysis should be used to time / determine the specific investment decision.
Could the momentum return in the semiconductors?
The semiconductor sector has had a challenging quarter, with its performance in recent months lagging behind improvements in underlying fundamentals, even as AI-driven demand remained exceptionally strong. The accelerating adoption of AI by enterprises and the proliferation of AI agents are significantly increasing the demand for computing capacity, which points to a further surge in cloud services and data center investments. Given current supply constraints, record-high backlogs, and higher-than-expected investment needs, we expect further upward revisions to earnings forecasts in the semiconductor industry. Nevertheless, the sector’s valuation appears favorable from a historical perspective, which, in our view, could result in a more attractive risk-return profile in the coming months.
The range of stocks showing upward momentum has broadened, but the number of stocks exhibiting a particularly strong technical pattern remains low. Many securities have already posted significant gains, making it increasingly difficult to find favorable entry points on a risk-reward basis. This week, one of the stocks from our Equity Top Pick List, Expedia, is beginning to form a promising technical pattern, while our other pick, the pharmaceutical company Moderna, has broken out of a long accumulation phase, opening up significant room for further gains.
Best rated US stocks based on momentum ranking
Compelling technical picture:
Moderna (daily): It broke out of the downtrend nearly a year ago, but only a slow rise was visible. The sideways movement that characterized the first half of this year can be considered an accumulation phase. It broke out of this phase upward in recent days. This is a very good sign; it’s worth buying on every retest because of this. The target price could be the gap left earlier. A minor stop could be expected around 75, while the large downward gap left open around 100 could be the ultimate target.
Expedia (daily): The online travel platform—which is also among on our Equity Top Pick List—has been added to the list of stocks with a momentum-based buy signal. The recent rally is indeed justifiable, although in the bigger picture, the stock is still in a consolidation phase from which it may soon break out. A break above 265 could signal a breakout from the pattern and open up upside potential. If it closes below 218, it’s worth managing the risk. The target price would be above 312 in the event of a breakout above 265.
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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