What stocks am I buying today?
If you’re not listening to the podcast (https://anchor.fm/dailystockpick/episodes/What-are-the-opportunities-to-buy-today--Disney--Uber--Twilio-and-Mattel-beat-earnings-overnight-e1e71kt), you should. This blog includes the charts I talk about, but they are meant to compliment each — not be independant.
Earnings were big last night and lifted the market overnight, but CPI (ie inflation) came in higher than expected which crashed the futures right before open. We’re looking to open down 2% or so. Here are the stocks I talked about this morning in the podcast.
$DIS — Disney
The reopening play is back on. Disney had park attendance up, Disney Plus subscribers up AND everything seems to be working. Access to the Disney parks costs a consumer over $100 per person and they have been able to raise prices while increasing attendance. This is the pricing power that Wall Street wants to see. The PE is 133 so it’s expensive, but the CEO also said they are bidding on NFL Sunday Ticket so they are looking at more growth in all categories. I think this stock will come back to $145-$150 and present a better buying opportunity for long term investors to start positions.
$UBER — Uber
Lyft had reported on Tuesday so much of what Uber reported was expected and priced in, but Uber did beat and so they were lifted. They closed at $40 and will open at around $42 so the algorithm was right to buy at $37. I think with rising interest rates, this will present itself under $40 again for a better opportunity to buy in.
$TWLO — Twilio
I wasn’t watching this one, but it was such a shocking beat and the stock was beaten down so much I had to point it out. The algo had us buying in at $190 and it will open at $230. This is one of the growth stocks that’s been beaten down because they still aren’t profitable, but anyone that’s used the software for customer engagement knows this is an incredibly powerful tool for businesses. Their 52 week high was $457 so my feeling is that with rising interest rates, you’ll have another opportunity to get this below $200 if you want to bet on the future.
$CLF — Cleveland Cliffs
They report at 10am tomorrow and I do expect good news from them. They are trading slightly down, but I wouldn’t touch this one in “hopes” of earnings. We’ve been watching this since the $16 level and I personally got in and I’m out before earnings. I took my 10%+ gains and will look to reinvest after earnings at a below $20 price which I think is possible.
Some of the opportunities I see:
$UA — Under Armor
UA was up almost 4% yesterday beating out their competitors in the market. I’ve been in this one since $16 and I’m looking at earnings tomorrow. They will open down today at around $17 and their PE is concerning so I may get out before earnings. There are volume shelves and gaps to be filled above so I may take 50% of my position off before earnings just to take some profits and then have a stop loss around $15.50 to protect myself from a downside when earnings hits.
$ROKU — Roku
This is just an ugly chart. They have a PE of 79 and most likely it’s going to get shrunk which will bring the price down, but they report next week. I have a feeling this one is a buy around that $153 level (it’s at $168 at the time of writing). I think you’ll be able to grab this around $160 and it’s a good bet in to earnings next week. I use Apple TV’s at my house, but have several Roku devices around my house and I like their interface much better than Amazon. I would rank Apple at the top and then Roku 2nd when it comes to hardware UI’s for streaming devices. I’ll be watching this.
Others that I won’t post charts that I’m watching, Ford — under $18 — SKT — under $16.50 and COIN — under $200.
We opened lower, but just like most other “reactions”, the initial drop in the CPI data seems to have been an over reaction and we’re seeing positive signs. Go to Twitter to see more up to the minute thoughts on the market.
