Mission Produce (AVO)
Entry: Unlock
Stop loss: Unlock
Price target: 12.50-13.00
Second PT: Unlock
Analysis done on daily timeframe. Mission Produce engages in sourcing, packaging, and distribution of avocados, mangoes, and blueberries to food retailers, and although this seems like a boring business, it’s enough to earn them $1 billion a year in revenue.
The company earned a spot on our watchlist this week because of their ability to rebound from their sales slump in 2023. Revenue has bounced back significantly, growing as much as 34% last quarter, helping net income along with it.
Despite the improvement in their fundamentals, the stock still didn’t get the attention it deserves after their last earnings, so we’re watching them this week to see if this quarterly earnings report finally sparks a move. AVO beat on both top and bottom estimates last quarter, reporting a +.13 EPS vs the expectations of -.01. If they can once again post such an impressive beat, this grand name may see the upside move it deserves.
Please note that this may take beyond this week to come around to price targets.
Pfizer (PFE)
Entry: Unlock
Stop loss: Unlock
Price target: 30.50-31.00
Second PT: Unlock
Analysis done on daily timeframe. Pfizer investors have faced a challenging 24 months as sales from the Covid-19 vaccine slumped and slashed the company’s revenue by nearly half. The company reported $100 billion in revenue in 2022, reaching a new pinnacle, but that number fell to $58 billion in 2023, and it reflected directly in their stock price.
Pfizer’s market cap has been slashed by more than 50% from its all time highs, but savvy investors looking for an undervalued stock may find an opportunity in it. The fallout in vaccine revenue was expected, and markets reacted appropriately by selling the stock down; however at a price to earnings ratio of only 10x, PFE trades at less than half the S&P 500’s P/E of 21x. Revenue also rebounded on their last earnings, jumping 4%, their first positive growth in more than five quarters. With Covid cases on the rise, and the demand for Pfizer’s oral antiviral therapy growing, we expect more eyes on this stock in the coming weeks and into winter season.
Please note that this may take beyond this week to come around to price targets.
Ulta Beauty (ULTA)
Entry: Unlock
Stop loss: Unlock
Price target: 393.00-400.00
Second PT: Unlock
Analysis done on daily timeframe. Ulta Beauty has had multiple exciting events in recents weeks after Warren Buffett’s Berkshire Hathaway reported a new stake in the company and their recent earnings announcement. The stock has jumped from its 52 weeks lows on the news, and we may see continuation now that earnings are behind it.
This stock makes a perfect value bet as it trades at an attractive price to earnings ratio of 14x. In a world full of uncertainty, it has managed to remain consistent in delivering on earnings while maintaining positive net income. Their decline over the past 12 months has brought its valuation to $17 billion, arguably undervalued considering their strong revenue trends and growing balance sheet.
This earned a spot on our weekly watchlist for both fundamental and technical reasons. The Warren Buffett news may have been forgotten by now, which is exactly why we expect the stock to now move after retail traders have forgotten about it. Volume patterns suggest a move is coming, we’ve structured our set-up for that move to be an upside move.
Please note that this may take beyond this week to come around to price targets.
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The stocks posted 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! Let’s have a fantastic week.