KO Pre-earnings Analysis: Chart done on daily timeframe. Consumer defensive stocks surprisingly did not perform well in 2023, despite all the events that happened last year that would’ve pushed them higher. We often see market buyers pouring money into names like Coca-Cola during elevated levels of uncertainty because these companies tend to bring steady and predictable numbers, but investors turned a blind eye to that last year. One of the biggest challenges KO faced in the last 24 months was inflation and how to adjust to it without scaring their consumers. The company did a great job at adjusting their prices and still keeping their customers buying, sustaining quarterly revenue growth through the first three quarters of 2023. They’ll be...
Taiwan Semiconductor TSM shares are trading higher after the company’s latest earnings report came in above expectations. The semiconductor company beat on revenue and profit projections, and raised forecast for this year. Leaders at the company now see 20% growth in 2024, citing demand for artificial intelligence to be the main reason. Since the rise of ChatGPT and generate AI, companies in all types of sectors are racing to become leaders in the space, and that demand has translated to more revenue for semiconductor giants like TSM, Nvidia, AMD…etc. Looking at their year over year revenue trend, TSM was growing steadily between 2017-2022, but had a large dip in revenue in 2023. However their earnings forecast for 2024 is set...
Spirit Aerosystems Holdings Spirit AeroSystems is a company that manufactures aero structures for aircrafts. The company is contracted with both commercial and defense customers, and has a foothold in the industry. It has grown to be one of the world’s largest manufacturers thanks to its massive contract with Boeing. Demand for new planes has grown rapidly in recent years, with countries in the Middle East and India requesting hundreds of new planes. This has helped boost revenue steadily quarter over quarter in the last year for SPR. Unfortunately, net profits have remained negative so the company is currently operating at a negative price to earnings ratio, but with the right leadership and continuous revenue growth, SPR is a contender for...
NVO Chart done on five minute and daily timeframe. Novo Nordisk has been good to its investors in 2023, but it has struggled in recent months to clear the 105.00 mark to reach another new high. The biggest success for them this year was their August earnings, which led to a “Power Earnings Gap”. Companies that post earnings that impress Wall Street can experience this Power Earnings Gap, and it can lead to weeks and months of upside movement. Looking at the daily timeframe for a multi-week outlook, we can see NOV’s primarily range in focus is between 87.00-106.00. That is a wide range with a lot of downside risk if you’re using the 87.00 as a stop loss point....
SPY Chart done on hourly timeframe. Markets are set to close out the final week of 2023 this week and many are wondering if it’ll bring forth a Santa Rally, furthering the push we’ve seen over the last eight weeks. Investors have been riding the bullish wave on hopes that inflation is easing and The Fed will slash interest rates in 2024. Last week’s PCE report reflected a 2.6% change from a year ago in November, which is the closest we’ve gotten to The Fed’s 2.0% inflation reading. Although this is great news, it wasn’t enough to send markets higher on Friday, likely due to a decline in volume ahead of the holiday weekend. Since there aren’t many related economic...
