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Robinhood (HOOD)
Entry: Unlock
Stop loss: Unlock
Price target: 21.00-22.00
Second PT: Unlock
Analysis on daily timeframe. Retail traders have poured back into the market this year as excitement around an artificial intelligence rally took hold. This has helped companies like Robinhood grow their revenue back to 2020 levels, a very active period for retail investing.
With markets near all time highs, retail traders are expected to continue pouring in, helping Robinhood grow their user base. In a recent report, Robinhood reported a surge in active users, reinforcing the retail trade. Other stocks in the industry like FUTU have recently spiked in developments around more active users, which we expect to influence Robinhood for a “sympathy” move.
We’ve placed Robinhood on our short term watchlist for a potential spike in light of their uptick in active users. Their fundamentals are still developing so it’s not safe to say this is a “buy and forget” type play. We’ll be managing as needed according to the levels on our chart.
Please note that this may take beyond this week to come around to price targets.
On Holdings (ONON)
Entry: Unlock
Stop loss: Unlock
Price target: 54.00-55.00
Analysis done on hourly timeframe. Recent reports from Nike and Lululemon reflect a struggle in the athletic wear and sports products industry, but On Holdings has challenged that struggle on their last earnings report. Nike and Lulu both reported flat year over year growth as fierce competition and a more selective consumer impacts them. The competition seems to be coming from On, at least according to the revenue trends. On Holdings posted has posted 27% quarterly revenue growth in Q1 and Q2 of 2024, and they’ve surged their profit margins exponentially from last year. Their balance sheet has grown along side free cash flow, reflecting a well managed company.
A $14 billion valuation for On Holdings may be a bit rich, so we’ll be monitoring this trade actively. But we do see continuation in the short term, especially after Lululemon’s last week. Investors disappointed with Lulu’s earnings may be on the search for another athletic wear stock to buy into, and On will outshine competitors with their rising revenue trends.
Please note that this may take beyond this week to come around to price targets.
Honeywell International (HON)
Entry: Unlock
Stop loss: Unlock
Price target: 213.00-215.00
Second PT: Unlock
Analysis done on hourly timeframe. Value stocks are trending again and Honeywell is an old name that is worth a look. Founded in 1906, this company has survived the most difficult tests of time and is still posting continuous growth. Honeywell has managed to do this by being an essential supplier to entities such as Boeing, Lockheed Martin, Airbus, NASA…etc. They’ve also landed billions worth of contracts with the U.S. government, especially on the defensive side, and continuously supply solutions to an array of industries.
37% of Honeywell’s revenue comes from its aerospace division, which has grown in demand in recent year. Honeywell’s products and services are found on commercial, defense, and space aircrafts, all of which are reflecting increased demand. Boeing and Airbus, both customers of Honeywell, are reporting record demand for their commercial planes and The Defense Department and Air Force are also increasing orders, just adding more to the company’s sales.
Shares of the company are significantly off their 12 month lows, but the stock is still stuck in the same range that it has traded for three years. 2020 and 2021 were brutal to the company’s revenue, but it has since grown its revenue back and improved profit margins. Improving numbers won’t be overlooked for long, especially in a market when investors are looking for untapped value. Even if it takes sometime to come around, Honeywell pays a sweet dividend to keep patient investors satisfied.
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.