Full Truck Alliance (YMM)
Entry: Unlock
Price target: 15.00-15.50
Second PT: Unlock
We covered $BABA last week’s watchlist and the stock saw a massive jump on earnings, pushing more confidence in Chinese stocks. Another popular name out of China we like is Full Truck Alliance ($YMM), a company we first initiated coverage on in November 2024 and has since ran 35% to meet both of our price targets. It’s time to place another target on it, but first, let’s recap what this company does.
Full Truck Alliance is a rising star in the software space. The company provides a total solutions platform for shippers and truckers, connecting them via mobile and web applications to streamline shipments across various distances, cargo types, and weights. In addition to its core logistics services, Full Truck Alliance offers drivers services such as financing, insurance, fuel cards, and secondhand truck sales.
Financials:
Full Truck Alliance currently trades at a market cap of roughly $13 billion, positioning it just above the mid-cap tier. In 2024, the company generated $1.56 billion in revenue, a 31% YoY increase. While revenue is still relatively modest, it is expanding at a rapid pace, and profitability is improving alongside it. The turnaround in earnings stands out, the company swung from a net loss of $566 million in 2021 to a net profit of $426 million in 2024. Growth momentum has continued into 2025, with revenue climbing 17% in Q1 and 51% in Q2, while net income surged 115% in Q1. The balance sheet underscores this strength. $YMM holds $5.95 billion in assets against only $388 million in liabilities, making it asset-heavy and lightly levered. Free cash flow, one of our favorite ways to measure business health, reached a record $402 million, reinforcing the company’s improving fundamentals.
The Risk:
$YMM is still a young company and only owns a very small piece of the market, making it susceptible to fierce competition. This is not yet considered a “buy and forget” type stock, but it is growing in a compelling way. Investors should continue watching earnings closely, and also monitoring the geopolitical situation between the U.S. and China.
Please note that this may take longer than one week to come around to targets and we may change our entry / exit levels if necessary. We'll be updating the stock as needed for our Hyper Stocks Pro members. Wanna see real-time market updates? Learn more here.
Eli Lilly & Co. (LLY)
Entry: Unlock
Price target: 825.00-850.00
Second PT: Unlock
It’s not just technology stocks growing sales at a rapid pace, some healthcare and drug manufacturing companies are also posting record earnings thanks to sales of weight loss solutions. Eli Lilly’s Mounjaro & Zepbound are a direct competitor to Ozempic, both names reaching new markets around the globe.
Eli Lilly’s revenue climbed 32% last year to reach $45 billion. This year, the company is already surpassing that pace, posting 45% growth in the first quarter and 37% in the second. What’s more impressive is their net income, which grew at 90% last quarter to $5.66 billion out of $15.56 billion in sales. The strong margins could be compared to Nvidia’s margins at this point. Zepbound sales grew 172% year over year to $3.38 billion last quarter, and Mounjaro gained 68% globally, with nearly triple its revenue from outside the U.S.
The company seems to have struck a gold rush with their weight loss solutions, but that’s not the only ace in their hand. Other drugs like Verzano for breast cancer and Jardiance for heart failure / diabetes grew 20% year over year. This is important because the company can’t just rely on one source of revenue, especially with fierce competition and weight loss drugs knockoffs.
So, what gives? Why is the stock down over the past twelve months? This is like because of pressures from the Trump administration. Trump is pushing for a U.S. drug pricing reform that could shave off the company’s margins. Fading hype around weight loss drugs is also contributing to the decline. But looking ahead, the company has maintained its guidance and is set to reach $61 billion in revenue this year, up from $45 billion last year. And so far, earnings per share are set for a whopping $22.83, nearly double last year’s $13.
The Risk:
Weight loss drug competition is real and it could severely impact LLY if the market gets flooded. This is usually a risk for drug manufacturers as things are always changing and new drugs hit the market that replace other drugs. Eli Lilly has the advantage of being a mature company with a ton of spending power. They can keep reinventing and taking on new drug trials to maintain themselves in the long run, but investors must watch for key developments in trials and from drug competition. One of the ways Eli Lilly is trying to get ahead right now is through AI driven drug discovery, collaborating with Nvidia to accelerate developments of treatments.
Please note that this may take longer than one week to come around to targets and we may change our entry / exit levels if necessary. We'll be updating the stock as needed for our Hyper Stocks Pro members. Wanna see real-time market updates? Learn more here.
Stock Name - Unlock
Entry: 68.00-70.00
Price target: 85.00-90.00
Second PT: TBD
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Stock Name - Unlock
Entry: 78.00-82.00 (pull back entry)
Price target: 94.00-96.00
Second PT: 108.00-112.00
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Stock Name - Unlock
Entry: 44.00-46.00
Price target: 50.00-51.00
Second PT: 54.00-55.00
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Stock Name - Unlock
Entry: 18.50-19.00
Price target: 21.50-22.00
Second PT: 23.50-24.50
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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. This page and our services are for educational purposes only. This is not financial advice. Please consult with a professional for financial advice. Trade at your own risk and as always, good luck!
Disclaimer: This article is for informational and educational purposes only and does not constitute financial advice. Investing involves risk, including the possible loss of capital. Always do your own research or consult with a licensed financial advisor before making investment decisions.