Amazon (AMZN)
Entry: Unlock (DCA)
Price target: 240.00-245.00
Second PT: Unlock
Amazon’s stock is now down 20% from its all time highs, placing it in correction territory and possibly presenting an opportunity to enter a long term investment. The company really needs no introduction, but for those who know Amazon as just an online marketplace, you better think again. Amazon is a powerhouse that expanded far beyond its e-commerce website. The company’s cloud computing platform AWS offers a range of services, including compute, storage, databases, analytics, and more, allowing businesses and developers to build and deploy on their infrastructure. Companies like Netflix, Airbnb, Adobe, Meta, and many more popular names, use AWS to support their business.
Amazon Web Services generated more than $107 billion in 2024, which grew 19% from the previous year and boosted Amazon’s profit margins exponentially. As a whole, Amazon generated more than $637 billion in annual revenue last year, with that number expected to exceed $700 billion this year.
Diving deeper into their recent financial performance, Amazon substantially grew its net income in the past 12 months, reaching a record $59.25 billion in positive net income last year. That marked a 94% growth from the previous year, and leaves them at a price to earnings ratio of 36x. Although that’s above the 15-25 range for average stocks, Amazon’s future growth expectations may justify the expense. Moreover, Amazon is trading at a price to sales ratio of 3.4x, still a bargain for a company of such size.
The stock is currently trading at the 200 day moving average, a level that institutional investors often use as a key buying point. Even if the correction worsens and Amazon’s stock falls further, it would make it an even more compelling investment. A good approach to take for Amazon would be the DCA approach combined with the lump-sum approach. One could ease into it here as uncertainty remains high, and hold a large portion of cash to buy if it falls to more attractive levels or if uncertainty clears up. We'll be managing our position through developments and updating our premium members accordingly.
Please note that this may take beyond this week to come around to price targets.
The Mosaic Company (MOS)
Entry: Unlock
Stop loss: Unlock
Price target: 33.00-34.00
Second PT: Unlock
The farmers of America are eager to welcome President Trump back to office, citing his deregulatory policies and longstanding support for local growth. While Trump's stringent tariff policies were seen as a challenge for the agricultural sector during his previous term, his administration implemented measures aimed at ensuring the stability and growth of rural America. Although concerns remain about the potential impact of mass deportations and tariff policies on farming, Trump has consistently emphasized his commitment to supporting farmers and simplifying the challenges they face.
Some of those beneficiaries are expected to be fertilizer companies such as Mosaic Co. This is a company that has been around for two decades, focusing on the production and marketing of concentrated phosphate and potash crop nutrients, in other worlds, agriculture fertilizer. Mosaic operates globally, exporting to over 200 countries, including names like Ukraine, Russia, and many others in South America, especially Brazil. Their presence has grown significantly in recent years, moving from covering 2 million acres worldwide to over 9 million. And despite revenue drops due to volatility in the industry, the company has improved their bottomline.
Mosaic Co. is a play for the patient investor who is willing to sustain the holding through the ups and downs of the volatile industry it exists in. Weather and climate impact the stocks performance year over year, but they have generously rewarded their investors with a consistently growing dividend and have also implemented share buybacks to reduce risk.
Technical analysis:
The stock attempted to regain the 200 day moving average in January for the first time since early 2023, but it failed shortly after to reach new 52 week lows; however, their earnings in early March gave them a second wind, encouraging buyers to buy the lows and bring the stock back above the 200 MA for a second time this year. We’ll be watching that level as support for a possible rally into the coming months.
Please note that this may take beyond this week to come around to price targets.
Uber Technologies (UBER)
Entry: Unlock
Price target: 81.00-82.00
Second PT: 87.00-88.00
As global tariff talks intensify, investors seek companies insulated from trade wars, supply chain disruptions, and political uncertainty. Uber Technologies stands out due to its minimal exposure to tariffs, operating as a technology platform rather than a manufacturer or retailer. Without producing or selling physical goods, Uber avoids direct tariff impacts that burden many multinational corporations. Additionally, its diversified revenue streams, including Uber Eats, Uber Freight, and Uber for Business, reduce reliance on any single sector, with Uber Freight facing only minor indirect tariff risks. Higher tariffs on imported vehicles could also discourage car ownership, potentially boosting demand for Uber’s services as a cost-effective alternative.
The theory above is not enough to justify a buy just yet, so let’s examine Uber’s financial performance to strengthen our case. Uber’s revenue has grown from $17.45 billion in 2021 to nearly $44 billion by the end of 2024. Profit growth has been just as impressive, with earnings per share increasing from -$0.29 in 2021 to $4.56 in 2024, bringing net income to $9.85 billion. This results in a price-to-earnings ratio of 16x, which falls within the attractive 15-25 range. The company’s balance sheet has also strengthened, with total assets reaching $51 billion and liabilities at $29 billion, nearly a 2:1 ratio. Additionally, free cash flow doubled in the past twelve months, rising from $3.36 billion in 2023 to $7 billion in 2024.
With operations in over 70 countries, Uber’s geographical diversification allows it to navigate regulatory challenges and shift focus to regions less affected by trade policies, making it a resilient player in an uncertain market.
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You've reached the end of our complimentary public watchlist. Unlock for the full list by becoming a member of our Hyper Stocks community. Click here for more information.
You've reached the end of our complimentary public watchlist. Unlock for the full list by becoming a member of our Hyper Stocks community. Click here for more information.
You've reached the end of our complimentary public watchlist. Unlock for the full list by becoming a member of our Hyper Stocks community. Click here for more information.
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The stocks posted above are the preliminary stocks and set ups we’ll be watching this week. All price points are subject to change based on market performance and sector health. Please do your own research and analysis on these companies/charts before taking on any set ups. Trade at your own risk and as always, good luck!