Berkshire Hathaway (BRK.B)
Entry: Unlock
Price target: 515.00-525.00
Second PT: Unlock
A great man once said, “be fearful when others are greedy and greedy when others are fearful”. That man is Warren Buffet, the CEO of Berkshire Hathaway who’s planning an exit from the investment firm by the end of 2025. Under his leadership, the firm invested in companies like Apple, Coca-Cola, American Express, and many more, many of which returning a great deal of profits to Berkshire. The company stretches far beyond equities, playing a role in property, utilities, energy, transportation, finance, manufacturing, and retailing services.
During the market correction in April, Warren and Berkshire were praised for the amount of cash the investment company held. In fact, it has the highest amount of cash at hand, exceeding Google, Microsoft, and Amazon combined. With $347 billion in the bank, they are in a perfect position to capital on a market downturn and good business opportunities. Better yet, they are shielded from unrest in the general market, making them an attractive buy when many other names seem overstretched.
In terms of financial performance, Berkshire is not a growth stock, but they consistently post very high revenues. Last year’s revenue reached a record $371.4 billion, with $89 billion of that in net income. We’ve already mentioned their strong cash pile, which leaves their balance sheet at a positive $651 billion in total equity. Berkshire’s decline from its April highs could be because of Warren’s retirement announcement, or it could be because investors didn’t think the company was aggressive enough to deploy its cash. However when overstretched valuations finally meet their maker, Berkshire is the one with most cash to buy up opportunities.
Meta Platforms (META)
Entry: Unlock
Price target: 920.00-950.00
Second PT: Unlock
It’s amazing to see a 20 year old company still behaving like a growth stock, but that’s exactly what Meta Platforms continues to do as it adapts through the changes of time. The company reached a new record high last week following stronger than expected earnings data, with revenue growing 22% in Q2 and net income growing 36%. Meta’s second quarter growth can be attributed to AI driven ads and reels monetization, two segments the company has pushed strongly into in recent years.
Meta is likely to remain a top AI play as the AI boom continues as the company ramps up spending on AI infrastructure and poaches top talent from other tech leaders. The company has been seen offering hundreds of millions to brilliant AI minds to come join their team, but if anybody can afford it, it’s Meta. The company’s strong ambitions are fueled by their free cash flow, which currently stands at about $50 billion. In the most uncertain times, the companies with most cash end up being the safest. And in innovative times, those with most cash can rebrand and become bigger. Meta is using its already existing platforms and user base to run the ship on AI, giving them strong leverage over others.
Despite their new reach for the $2 trillion mark, Meta is still trading at only 25x its price to earnings ratio. And while that is on the higher end of the favorable 15-25 range, it is far below the 35x average technology sector and below the S&P 500’s 29x. And when looking ahead, Meta is expected to grow both revenue and earnings by 50% in the next three years, which may just justify their current P/E.
Technical analysis:
From a charts standpoint, we’re applying the “Power Earnings Gap” strategy on Meta, which we teach in our technical analysis course. This approach looks for stocks that gap up 5%+ on strong earnings data and focuses on continuation depending on specific signals the stock gives. We already took option contracts on Meta, we'll be managing the trade in our Hyper Stocks Pro group.
Stock Name - Unlock
Entry: 945.00-955.00
Price target: 1000-1100
Second PT: All time highs
Stock Name - Unlock
Entry: 19.00-20.00
Price target: 21.50-22.00
Second PT: 23.00-23.20
Stock Name - Unlock
Entry: 190.00-200.00
Price target: 250.00-275.00
Second PT: 350.00+
Stock Name - Unlock
Entry: 150.00-155.00
Price target: 180.00-185.00
Second PT: 190.00-200.00
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 to unlock more high probability set-ups!
___________________________________
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!