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Today, The Weekly Buzzing Stocks by Billy Kawasaki and The Panic-Proof Portfolio (Stockchase Research) commented about whether DRX-T, BDI-T, FLEX-Q, EQX-T, NVDA-Q, FSLR-Q, LLY-N are stocks to buy or sell.

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TOP PICK

Eli Lilly and Company discovers, develops, and markets human pharmaceuticals worldwide. It offers Basaglar, Humalog, Humalog Mix 75/25, Humalog U-100, Humalog U-200, Humalog Mix 50/50, insulin lispro, insulin lispro protamine, insulin lispro mix 75/25, Humulin, Humulin 70/30, Humulin N, Humulin R, and Humulin U-500 for diabetes; and Jardiance, Trajenta, and Trulicity for type 2 diabetes. The company provides Alimta for non-small cell lung cancer (NSCLC) and malignant pleural mesothelioma; Cyramza for metastatic gastric cancer, gastro-esophageal junction adenocarcinoma, metastatic NSCLC, metastatic colorectal cancer, and hepatocellular carcinoma; Erbitux for colorectal cancers, and various head and neck cancers; Retevmo for metastatic NSCLC, medullary thyroid cancer, and thyroid cancer; Tyvyt for relapsed or refractory classic Hodgkin's lymph and non-squamous NSCLC; and Verzenio for HR+, HER2- metastatic breast cancer, node positive, and early breast cancer. It offers Olumiant for rheumatoid arthritis; and Taltz for plaque psoriasis, psoriatic arthritis, ankylosing spondylitis, and non-radiographic axial spondylarthritis. The company offers Cymbalta for depressive disorder, diabetic peripheral neuropathic pain, generalized anxiety disorder, fibromyalgia, and chronic musculoskeletal pain; Emgality for migraine prevention and episodic cluster headache; and Zyprexa for schizophrenia, bipolar I disorder, and bipolar maintenance. Social media mentions are up 650% in the past 24h. 

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TOP PICK

First solar (nasdaq: fslr) is a leading global provider of comprehensive photovoltaic (pv) solar systems which use its advanced thin-film modules. the company’s integrated power plant solutions deliver an economically attractive alternative to fossil-fuel electricity generation today. from raw material sourcing through end-of-life module collection and recycling, first solar’s renewable energy systems protect and enhance the environment. Social media mentions are up 300% in the past 24h. 

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This is a Panic-proof Portfolio opinion which is available only for Premium members

Curated by Michael O'Reilly since 2020.
1550+ opinions with 4.81 rating (one of the best performing expert).

TOP PICK
Stockchase Research Editor: Michael O'Reilly

EQX is reiterated as a TOP PICK.  Management updated estimates of its 100% owned Ontario holding, indicating a higher grade of gold yield than previously estimated.  We like that quarterly cash reserves are growing, while debt is reduced.  It trades at 10x earnings and under book value.  We recommend trailing up the stop (from $5.50) to $6.00 at this time, looking to achieve $10.50 -- upside potential of 23%.  Yield 0%  

(Analysts’ price target is $10.33)
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This is a Panic-proof Portfolio opinion which is available only for Premium members

Curated by Michael O'Reilly since 2020.
1550+ opinions with 4.81 rating (one of the best performing expert).

TOP PICK
Stockchase Research Editor: Michael O'Reilly

We reiterate FLEX as a TOP PICK.  Management is focused on providing automotive, autonomous vehicle, and EV data solutions.  It trades at 15x earnings and under 2.5x book value.  Cash reserves are prudentially being used to aggressively buy back shares and reduce debt.  We continue to recommend a stop at $25, looking to achieve $38 -- upside potential of 26%.  Yield 0%

(Analysts’ price target is $37.74)
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This is a Panic-proof Portfolio opinion which is available only for Premium members

Curated by Michael O'Reilly since 2020.
1550+ opinions with 4.81 rating (one of the best performing expert).

TOP PICK
Stockchase Research Editor: Michael O'Reilly

We reiterate this seller and renter of modular workforce units as a TOP PICK.  Bookings and revenues in rentals are up over 15%.  Quarterly cash reserves are growing, while debt is retired and shares bought back.  It trades at 20x earnings and under 2x book.  We recommend trailing up the stop (from $7.50) to $8.50, looking to achieve $12.00 -- upside potential of 20%.  Yield 1.2%

(Analysts’ price target is $12.17)
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This is a Panic-proof Portfolio opinion which is available only for Premium members

Curated by Michael O'Reilly since 2020.
1550+ opinions with 4.81 rating (one of the best performing expert).

PAST TOP PICK
(A Top Pick Jun 27/24, Down 30.9%)Stockchase Research Editor: Michael O'Reilly

Our PAST TOP PICK with DRX has triggered its stop at $11.  To remain disciplined, we recommend covering the position at this time.  

COMMENT
Markets.

Seeing heightened volatility in September. If you go back to 1950 during election years, September and October are negative on average; the win ratio is 50% for each month, so we're going to see those ups and downs. Especially with the election coming up, and economic data pouring in, that might change the trajectory of what the Fed might do. All those things are playing into what's happening with the markets. 

On the positive side we're seeing double-digit corporate earnings growth, which is the most important thing. Next year forecast at double digits as well. We just need to get past these next few weeks, or couple of months, of volatility.

COMMENT
Sales were particularly anemic compared to expectations, ultimately affecting revenue and the bottom line?

It's certainly another factor that plays into his analysis. But if you look back to the macro picture, whenever you have the beginning of a rate cycle, 12 months later the markets are up quite significantly by double digits, presuming a recession does not occur.

Right now his base case is for a soft landing. Lots of data points to that, inflation down to 2.5%, US unemployment down to 4.2%. Adding to that, US money market assets are up to $6.3T USD, lots of cash on the sidelines that can be used.

COMMENT
Risks to the market in that we're up nicely ~16% for the year, plus third year of a bull market?

As to age of the bull market, we're really only about 5 innings in, so we're mid-way through the average bull market. Still room to run. Brace for volatility into the US elections. After that, the focus will shift back to the fundamentals of corporate earnings, interest rates, and economic data.

DON'T BUY

Likes the idea of travel stocks longer term, given global demographics. Trending sideways for the last year, 200-day MA is flat. Though lower interest rates will help the debt situation, you also need to be concerned in the near term with the consumer and the economy.

He'd prefer a name like RCL.

WEAK BUY

In the space, he'd prefer a name like RCL, given its scale and leadership capabilities. Performing well from a technical perspective. Though lower interest rates will help the debt situation, you do need to be concerned in the near term with the consumer and the economy.

BUY

Likes it. Approaching support levels of late last year, technically a bit oversold. Oil prices and the uncertain outlook have pushed down energy names. Mid- and longer-term, will continue to perform well. Yield is ~4.7%, secure.

WATCH
The only recent catalyst is the new CEO.

Technically, great that it's broken above the 200-day MA, but that's still trending lower. Stock's gapped up. On his watchlist. Concerns about China, its second-largest market.

Investors should be cautious about the new-CEO effect. They need to execute. Stock moving higher is a hope for execution. Not cheap at this point, 2.9x PEG.

(Analysts’ price target is $97.00)