Avg Daily Volume: 610,301 Market Cap: 1.24B
Sector: Technology Short Interest: 15.83
THIS QTR: EPS: -.05/share REV: 47.01/M
LAST QTR: EPS: .04/share ACTUAL: .14/share (BEAT)
NEXT QTR: EPS: -.02/share REV: 48.8/M
FY19: EPS: .06/share REV: 211.22/M
*These are the base metrics we will be watching against the actual release numbers
BEAT/MISS HISTORY: 89% OF THE TIME THEY BEAT ESTIMATES
PRIOR ‘JUMP ZONE’ MOVES (3 QTRS %) 11.00, 20.44, -13.63
POTENTIAL JUMP MOVE: 12-15%
Links To Latest News and Headlines
Bears are on the prowl and market leaders are getting hit with profit-taking. These are the signals that encourage me to seek out short trades. Today we're exploring three of my favorite stocks to sell.The biggest fear haunting bulls ahead of earnings season was that profits would fail to live up to the lofty expectations built into stock prices. Starry-eyed investors have been piling into big-cap tech companies, driving the Nasdaq to the moon. Unprecedented fiscal and monetary stimulus have added fuel to the fire, but skeptics have long argued many equities were becoming detached from reality.We've now had a handful of tech leaders report earnings, and many are falling afterward. These “sell the news” reactions justify becoming more defensive. It also has me warming to the idea of adding bearish trades to the portfolio for the first time in weeks. I've scanned my watch list for vulnerable names and these are three of the best.InvestorPlace – Stock Market News, Stock Advice & Trading Tips * Snap (NYSE:SNAP) * Ambarella (NASDAQ:AMBA) * Godaddy (NYSE:GDDY) * 10 Cybersecurity Stocks We Need Now More Than Ever Let's take a closer look at the price action and where to place your trigger points. 3 Stocks to Sell as Bears Return: Snap (SNAP)Source: The thinkorswim® platform from TD Ameritrade First up in this list of stocks to sell is Snap. Snap is a prime example of the situation described in my intro. It's a tech stock that was running hot ahead of earnings but tumbled afterward. As a result, we now have a topping pattern that could be signaling a shift in its trend. The head and shoulders formation was completed and confirmed when SNAP stock breached $23 on Wednesday.The downside follow-through has carried the stock to its rising 50-day moving average, giving us a clear line in the sand to trade from. With SNAP down 16% in a straight line, I'd prefer some consolidation or a mild bounce in this area to work off any oversold pressures. That will set up a better breakout pattern below the 50-day moving average. Today's low of $21.50 is the trigger to watch.You can short shares outright, or build an options spread. Since implied volatility is low, I like bear put diagonals.The Trade: Buy the September $24 put while selling the August $20 put. The cost should be around $2.55 when the stock triggers. Ambarella (AMBA)Source: The thinkorswim® platform from TD Ameritrade Ambarella reported earnings last month and has been trending lower ever since. The losses have come while the Nasdaq has been powering higher, which says something about just how weak AMBA stock has been. This week's drop brought AMBA to a critical support zone at $44. It's also sitting below falling 20-day, 50-day, and 200-day moving averages.Volume patterns have been ugly for the past month with a ton of distribution days. This shows me institutions continue to be net sellers. So far, support is holding. If it fails, I think we have a shot on the short side.The Trade: Buy the September $45/$40 bear put spread for around $2.05. * These 7 Robinhood Stocks Have the Legs for Future Gains The risk is $2.05, and the potential reward if AMBA falls to $40 is $2.95. Godaddy (GDDY)Source: The thinkorswim® platform from TD Ameritrade Last up on this list of stocks to sell is GoDaddy. Godaddy saw a flurry of selling crack its uptrend late last month. It has never been able to find its footing since and now sits below a falling 20-day and 50-day moving average. The past month has built a descending triangle pattern with prices continually probing support at $69 and the 200-day moving average.The series of lower pivot highs suggest selling pressure is building. I think it's just a matter of time before the floor gives way and we start a new downswing.With earnings slated for August 5, I prefer a straight stock play or long put. That way, we can exit quickly.The Trade: Short GDDY shares or buy the September $70 put if we break $68.15.Tyler Craig is a member of the Chartered Market Technician's Association and holds the CMT designation. His entire adult life has been dedicated to helping individuals learn how to trade as an elite instructor and personal mentor. To join his team and the best trading community on the planet, click here. At the time of this writing, Tyler didn't hold positions in any of the aforementioned securities. More From InvestorPlace * Why Everyone Is Investing in 5G All WRONG * America's 1 Stock Picker Reveals His Next 1,000% Winner * Revolutionary Tech Behind 5G Rollout Is Being Pioneered By This 1 Company * Radical New Battery Could Dismantle Oil Markets The post 3 Stocks to Sell as Bears Return appeared first on InvestorPlace.
Los Angeles-based fund slashes holdings in several companies Continue reading…
Fund's largest sales of the 2nd quarter Continue reading…
Fermi Wang has been the CEO of Ambarella, Inc. (NASDAQ:AMBA) since 2004, and this article will examine the executive's…
The case incidence of coronavirus is rising, raising fears that the initial economic reopenings were too much, too soon, and too fast. Adding to the nervous outlook, the White House has let it be known that it will seek a cap on future economic stimulus packages at $1 trillion. Considering that the last round of stimulus was upwards of $3 trillion, seeking to cap it at one-third that amount – at least party in the name of deficit control – sounds like a case of closing the barn door after the horses have bolted. It’s one more signal in a growing round of confusion.At least some signals, however, are coming through loud and clear. Another signal is coming through from Wall Street’s analysts: There are still plenty of stocks to buy, with strong prospects to survive the corona crisis – and to do it with plenty of upside share potential. We’ve used the TipRanks database to pull the details on three of these lesser-known, buy-rated stocks. Let’s find out what the analysts have to say about them.Azek Company, Inc. (AZEK)We’ll start with a company in the construction industry. Azek inhabits a niche that is going to do well as ‘social distancing’ becomes the norm. The company makes decking, patio, and outdoor products. With summer here, and indoor gatherings highly proscribed, the company took a calculated risk.Azek went public in mid-June. The IPO was a big one, raising over $765 million despite the pandemic, and shares have gained in the weeks since. AZEK is up 15% since starting on the NYSE exchange. While the stock is impressive, there are some cautionary signs. Azek is highly leveraged, with over $1.2 billion in debt, nearly 25% of the company’s $4.5 billion total market cap. It’s clear that Azek is betting heavy on several factors: the V-shaped recovery, people’s desire to get together – safely, and that backyard recreational activities will be a winner this year.Is that a good bet? Analyst Alex Rygiel of B. Riley FBR clearly thinks so. The analyst writes of Azek, “…we believe AZEK could experience industry-leading margin expansion over the next three years. We also believe the recent COVID-19 environment with stay-at-home and social distancing orders could create a tailwind for AZEK and the overall decking industry as more homeowners looks to expand their livable space outdoors and with the possible suburbanization of the population.”Against this backdrop, Rygiel initiated coverage on AZEK shares with a Buy rating and a $38 price target, which implies room for 22% upside growth this year. (To watch Rygiel’s track record, click here)Overall, AZEK gets a Moderate Buy from the Wall Street analyst consensus. The stock has received 15 reviews in recent weeks, breaking down 10 to 5 in Buys versus Holds. Shares are currently trading for $31.1, and the average price target of $35.50 suggests a 14% one-year upside potential. (See Azek stock analysis on TipRanks)Ambarella (AMBA)Now we move to the tech industry, where Ambarella is a small-cap design company in the semiconductor chip sector’s fabless segment. That’s a fancy way of saying that the company designs its chips, makes the prototypes, and farms out the mass production. Ambarella focuses on video compression, computer vision processors, and video compression – all important uses as companies and workers move heavily toward telecommuting. Ambarella’s chips also have applications in the video security monitoring and autonomous vehicle niches.Ambarella saw sluggish earnings in 1H20, as the COVID-19 pandemic impacted supply chains, manufacturing facilities, and sales. That said, the company has found some tailwinds. Video AI and computer vision are growing segments, and the company has a solid position in both. While earnings were down, revenues in Q1 beat the forecast, coming in at $54.6 million. Ambarella also has plenty of liquidity to combat the pandemic’s economic impact; the company finished Q1 with $411 million in cash on hand, up from $405 million at the end of 2019, and the free cash flow generated a healthy $7.6 million.It’s the sector outlook, however, that attracted attention form Needham’s Quinn Bolton. The 5-star analyst, rated 8 overall in TipRanks’ database, likes what he sees in Ambarella, and upgraded his stance to Buy based on the strength of the Computer Vision segment. “…we believe CV design activity remains robust. Professional security camera design wins represent the first wave of the CV production ramp and should drive CV revenue to ~10% of revenue in FY21 (CY20). The second CV wave, driven by the consumer security camera market, is expected to start in CY21 while the third CV wave, driven by Auto applications, is expected in CY22 and beyond,” Bolton commented. Bolton backs his new Buy rating with $55 price target, indicating a 14% upside potential in the next 12 months. (To watch Bolton’s track record, click here)Overall, the analyst consensus on AMBA is a Moderate Buy, based on a mix of reviews: 5 Buys, 4 Holds, and a single Sell. The shares have an average price target of $57.78, which implies a healthy 20% upside from the current trading price of $48.21. (See Ambarella stock analysis on TipRanks)Arthur J. Gallagher & Company (AJG)Last on our list is an $18 billion global insurance broker and risk management firm, Arthur J. Gallagher. The company, based in the Chicago area, has a worldwide presence and is notable for being selected nine years running as one of the world’s most ethical companies.As an insurance company, with a reputation for ethical behavior, Gallagher was particularly well-positioned to gain during the coronavirus pandemic scare. The company saw Q1 earnings of $1.83 per share, well above the $1.74 expectation, and also up 215% sequentially. Deutsche Bank’s Phil Stefano sees AJG in position to continue growing, and upgrades his rating on the stock to a Buy. Supporting this, he writes, “We believe our margin expectation for Brokerage drives our Street high EPS estimates for the remainder of 2020 and 2021, with investors not fully appreciating the magnitude of the expense benefit impact to margins.”Stefano’s price target backs up his Buy rating; at $120, it implies a 21% upside potential for the stock. (To watch Stefano’s track record, click here)All in all, AJG has eight recent stock reviews, including 6 Buys and 2 Holds, giving the stock a consensus rating of Strong Buy. The stock is selling for $99.14, and the average price target of $108.38 indicates a possible 9% upside this year. (See AJG stock-price forecast on TipRanks)To find good ideas for stocks trading at attractive valuations, visit TipRanks’ Best Stocks to Buy, a newly launched tool that unites all of TipRanks’ equity insights.
Analysis and trade direction are uploaded generally between noon and 1pm EST for most events. ALWAYS check back near market close for updates as the analysis can change by end of session.
“I’m sorry, this content is for members only. To access this content, you must log in with your membership credentials – OR if you are not a member yet, visit our registration page here and get signed up Looking forward to having you on-board ASAP”
This area reserved for subscribers to the Options Intelligence Strategy. If this is something you wish to participate in, just let us know below.
NOTE: There is a significant amount of data behind the scenes in getting to the analysis in the tab above. Too much information for traders only confuses things – so this is striped down to only what it needed to make the best possible decision(s) on trading the trajectory.