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Doximity (DOCS)
Entry: Unlock
Stop loss: Unlock
Price target: 36.50-37.50
Second PT: 39.00-42.00
Chart done on hourly timeframe. Doximity’s stock posted its best daily gain in its history last week thanks to the company’s strong earnings performance and upbeat outlook. The company beat on both profit and revenue expectations, and their tone about the future was very positive. Savvy investors looking to capitalize on the collaboration between artificial intelligence and the medical field may find this name to be very attractive, especially following this report. Doximity got in early on the generative AI movement, launching their own GPT model just three months after the launch of ChatGPT. This helped them post this record quarterly earnings, and their daily users are surging quickly.
Although still a young-ish name, the company’s revenue trends over the past five years have looked very promising. Their financial statements all-around are moving in a strong direction, and these earnings may act as a catalyst for new investors to recognize that. We’re looking for continuation from this stock to the next target of around 37.00. If it can break that level and hold, then the next target in place is 40.00-42.00.
CAVA Group:
Entry: Unlock
Stop loss: Unlock
Price target: 98.00-100.00
Second PT: TBD
Chart done on daily timeframe. CAVA Group’s stock is up 200% from their 52 week lows this year thanks to the company’s outstanding earnings growth and performance. The Mediterranean inspired restaurant focuses on healthy foods and has won the hearts of many news customers in recent years. Investors are reminded of a young Chipotle when they see this company’s growth, which has proven to be a great investment. Last week’s stock jump was largely attributed to earnings from Sweetgreen, which topped estimates thanks to the focus on healthy foods.
CAVA is set to report earnings on August 22nd, and the company’s near term history suggests that they will beat expectations. Last week’s move brought it back above its 50 day moving average on the daily, a level watched closely by institutional investors to gauge whether or not a stock is in a bullish or bearish trend. Even if the stock doesn’t move big on earnings, we’re expecting buyers to slowly continue adding, potentially taking it back to its 52 week high and possibly above 100.00 for the first time.
Ely Lilly (LLY):
Entry: Unlock
Stop loss: Unlock
Price target: 925.00-935.00
Second PT: 960.00-970.00
Chart done on daily timeframe. We’ve placed Eli Lilly on our watchlist because of the company’s recent upbeat earnings and overall excitement around the weight loss industry. Investors are currently looking for the next “hot thing” to invest in (other than AI), and weight loss seems to be a highlight in the medical field. Eli Lilly had already been one of the strongest performers this year thanks to the demand around their weight loss medication “Zepbound,” and their increase in future guidance only reinforces their existing dominance.
Outside of tech, healthcare and drug manufacturing companies have been some of the leaders in the market this year. Investors always look for companies that will always be in “demand” to buy, and it’s safe to safe that the medical industry will always be in demand. Tech stock earnings seemed lackluster this quarter, but earnings from the medical industry have impressed, which leads us to believe that Eli Lilly’s surge may bring more buyers in the coming weeks/months. We’re looking for a move above 925.00 next for a chance to push to its all time high mark of around 965.00, which if it breaks, it will head to the price target of 1,000+.
Palantir (PLTR):
Entry: Unlock
Stop loss: Unlock
Price target: 33.00-34.00
Second PT: 35.50-36.50
Chart done on hourly timeframe. Palantir earned a spot on our watchlist after the company’s strong earnings report, which helped their stock move to a new 52 week high last week. The popular technology company is involved in both the commercial and government segments, and it has won billions in contracts from the U.S. government in recent years. Their recent earnings introduced a new partnership with Microsoft to sell AI software to the U.S. Military, which adds to their list of massive contracts already. As demand for AI rises, PLTR has positioned itself strategically as a trusted name, and its leaders expect the demand to keep on coming.
It’s important to note that the company’s current valuation is still considered expensive, but excitement around the stock and industry may help continue their rally. The stock’s reach to its 52 week high will bring attention to it in the coming weeks, which may help boost it to our price targets of 33.00 and 36.00.
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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.