Ericsson (ERIC)
Entry: Unlock
Price target: 9.50-9.70
Second PT: Unlock
Analysis done on hourly timeframe. Ericsson is a telecommunications company that provides technology and equipment to mobile and network operators. The Swedish based business recently made headlines following their earnings and newly landed 5G contract in Taiwan. Stocks such as Ericsson suffered severely in recent years as demand in the space slumped, but the biggest highlight of their recent earnings call was demand recovery.
Ericsson has posted six straight quarters of negative revenue growth, but this quarter was nearly at breakeven compared to the same period last year, reinforcing their demand recovery outlook. Net income has also moved back in the right direction in the first three quarters of 2024, and is expected to continue improving with the company’s plans of 6G networks.
Please note that this may take beyond this week to come around to price targets.
Shopify (SHOP)
Entry: Unlock
Price target: 83.00-85.00
Second PT: Unlock
Analysis done on hourly timeframe. Shopify is an e-commerce website hosting platform that has grown to be a giant within the space. The company’s simple approach to providing entrepreneurs with quick and easy website hosting and management has taken them from a small-time company to grossing more than $7B in annual sales last year. This represents more than 100% in growth from 2020, and over 700% growth from 2018.
Shopify currently serves over two million merchants, which is only a small piece of the e-commerce space. The company’s growth may have already been impressive, but they have an opportunity to seize a larger size of the market with the right approach, which will ultimately grow their revenue and balance sheet. With earnings around the corner, many experts have already started raising their price target on the stock as they expect them to only report strong data.
Please note that this may take beyond this week to come around to price targets.
PDD Holdings (PDD)
Entry: Unlock
Price target: 135.00-140.00
Second PT: Unlock
Analysis done on hourly timeframe. Volatility in Chinese stocks has increased significantly in recent weeks following the Chinese government’s decision to inject stimulus to help boost its economy. The country has recently been more involved in helping revive its slowing economy, which is exciting investors in the U.S., resulting in movement in Chinese equities. PDD is one of those equities, who are famously known for being the parent company of Temu.
Temu has taken the global e-commerce market by a storm, growing their revenue from $8.62B in 2020 to nearly $35B in 2023. 2024 is set to be another stellar year for them as they’ve already reported 119% growth in Q1 and 80% growth in Q2. This revenue growth was accompanied by an increase in net income, deepening the company’s profitability.
Despite their astronomical growth, PDD and other Chinese stocks have suffered on American markets because of cautious investors. From a slowing economy in China, to strained political relationships, investors definitely have a right to take caution, but good valuations can’t be ignored forever, especially as interest rates come down. Investors’ risk appetite grows in low interest rate environments, and now that we’ve seen a rate cut, PDD may finally get the move it deserves.
Please note that this may take beyond this week to come around to price targets.
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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 for more information.
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 for more information.
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 for more information.
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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. Trade at your own risk and as always, good luck! Let’s have a fantastic week.