The easiest thing in the stock market is to buy a stock. Buying the right stock at the right time is a daunting task. To make money in the stock market one has to follow the art of buying the correct stock without a time-tested strategy. The markets saw a sell-off post coronavirus breakout in March. The markets though bounced off rather quickly and made new life highs in September. In October, some selling was witnessed and markets fell around 10% from their highs.
After Joe Biden’s victory and pharmaceutical giants like BioNTech (BNTX), Moderna (MRNA), and Pfizer (PFE) announced the positive results of coronavirus testing, the markets again entered the bullish territory and are again attempting testing the previous highs. One can safely say that markets have started trading normally as volatility has cooled off. The strong action in the stock market is indeed a reflection of investors’ confidence that at the end of the day the economy will eventually recover. Let’s look at the top 5 stocks to watch out for this week.
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1. Target (TGT)
Target stock witnessed short covering and buying from the lower levels with heavy volumes. All the market experts in one voice have shared their views on buying this stock at the current levels. As the charts, the ideal buying point for this stock is around 167 levels, and the short-term target price set by the experts is 175. Some positive technical signs can be witnessed in the charts and the stock has clearly outperformed the benchmark indices in the last couple of weeks.
The quarterly numbers posted by the stocks were also quite strong with EPS rose over 43% in the last three quarters. Growth in earning has been witnessed and that was the reason why institutions have started recommending this stock. The biggest reason for the rise in stock is that the big-box retail giant has improved its e-commerce capabilities and has delivered the expected volumes in time. Order pickup has soared by 50% during the lockdown and since the holiday season is approaching more and more people are expected to come to their stores.
2. FedEx (FDX)
FedEx is arguably the shipping giant and is at its buying point. The stock closed at 276.69 on Friday and has made a base around 275 levels. The stock has rebounded well from its 50-day moving averages and an immediate target of 292 per share can be seen in coming weeks. E-commerce boom has supported the shipping giant and is among those stocks that have actually benefited from the lockdown. It’s better placed than the other e-commerce stocks. The surge in coronavirus has made sure that brick-and-mortar shopping will take a while and people are now used to getting stuff delivered rather than traveling.
FedEx stock got a boost after some positive commentary from the management in September. The EPS of FedEx jumped over 60% and the firm has shown improvement in FedEx Freight as well. The game-changer for the stock was its partnership with Microsoft in May. The partnership was made to improve the firm’s shipping for commercial customers. FedEx has joined forces with players like Amazon and this partnership will improve FedEx’s global network as well.
3. Advanced Micro Devices (AMD)
AMD has shown significant strength at the current levels and the stock has made the base at 82 levels. The stock closed at $84.64 on Friday and is at the correct buying zone. A small dip in the stock should be used for buying as the recent decline has made sure that it has ample space to move up and targets of $90 are suggested by various brokerage houses. The stock is well above its 50-day moving averages and after spending the last few weeks in a sideways zone, the stock is expected to move up.
The stock also has a perfect IBD Composite rating of nearly 99. The reason for this is its excellent earnings and many brokerage houses have maintained a target of 90+ for this stock. The stock also holds a perfect EPS rating of 99 which is much higher than its peers. Institutional buying has been witnessed during this decline and is certainly one stock you should not miss out on.
4. Qorvo (QRVO)
Qorvo is another known ticker in the stock market, which closed on Friday at $147.39 is indeed a perfect level for buying. Investors can start adding this share to their portfolio from the current levels and the target suggested for the week is $158-$160 per share. An upside of 5% can be witnessed over the course of the week. The composite rating of the stock is 96% and that makes it one of the most sought-after buys this week. A surge in the stock can be witnessed and one should not miss out on the rally. The stock is also a long-term bet and one can hold the stock for years to have handsome returns.
5. Novocure Ltd (NVCR)
The Novocure stock surged over 5% on Friday’s session and is expected to continue with the momentum. NVCR has rallied in the last week but is still a buying bet at these levels. The stock has crossed all its hurdles and is ready for a 10 to 12% surge this week. Buying with heavy volumes was witnessed in the share and the stock has made a strong base at $130. The composition rating of the stock stands at 95. Earnings of the stock rose over 350% in the last quarter and a strong EPS for the share has meant that stock is still buyable at these levels too.
The markets are in a positive trend and every dip has been used for buying. The markets are expected to cross their life-highs soon as the rally is globally led and the U.S. markets too will not lag. Thus consider going long in the markets rather than staying short or keeping your money at bay.
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