Vistra: A Potential Winner of the AI Energy Demand Surge
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One Step Closer to a New World: Brazil
Elections were held in Brazil in early October, during which Flávio Bolsonaro, the challenger to incumbent President Lula, performed better. The second round of the presidential election will follow in late October, when it will be decided which of the two will become Brazil’s next president. Currently, Flávio Bolsonaro appears to be the favorite to win, and based on market reactions, investors may already started pricing in this scenario. If Flávio Bolsonaro is elected president, it could pave the way for the fiscal turnaround anticipated by market participants, and relations between Brazil and the United States could also improve, which over time could even lead to lower Brazilian tariffs.
Südzucker: little sweet, little sour earnings
Südzucker, which is one of the world’s largest sugar producers and a leading player in European biofuel production, released its latest interim report, which contained both pleasant and slightly negative surprises. On the one hand, there has been a significant improvement in financial performance on an annual basis, three out of five business segments posted excellent results, and losses in the sugar production division also narrowed thanks to cost-efficiency measures. On the other hand, management raised its annual forecasts only moderately despite strong business performance, which may have disappointed some investors. However, in our view, the outlook for the sugar market remains favorable, so the sugar production segment’s profitability may improve in the coming period. Overall, we are keeping the stock on our Equity Top Pick List.
Major U.S. indices are trading near their all-time highs, but have not yet broken out toward new peaks. Meanwhile, it is rare to find stocks that are breaking out and rising after periods of consolidation or correction. This week, Vistra from the utilities sector stood out. The company is one of the largest electricity producers in the U.S., with significant nuclear capacity, and is benefiting from the growing electricity demand of AI data centers.
Best rated US stocks based on momentum ranking
Compelling technical picture:
Vistra (Daily Chart):
Last week’s rally in this stock began with a strong gap. The gap left at the 150 level could therefore serve as support and is also a good entry point for a long position. The stock is attempting to resume an upward trend after a prolonged correction. Since the price action in recent months has been characterized by rising swing lows, this could also be a trend-confirming pattern, pointing to upside potential. A new high is also possible, as the value calculated based on the pattern could reach around 225 or even higher. It’s advisable to manage risk using the thin green trendline.
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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