High-Growth Investments

Eli Lilly & Company

Eli Lilly & Company (LLY) is one of two companies that have a lock on diabetes treatments and weight-loss drugs. The pharmaceutical company’s two most popular treatments have both received FDA approval; Zepbound for weight loss and Mounjaro for type 2 diabetes.

Investors are anxious to see how much Zepbound will add to the company’s top and bottom lines this year, as 2024 is the first full year that the treatment is available commercially. Well, product revenue soared to $2.49 billion in the fourth quarter, thanks to strong demand for both Zepbound and Mounjaro. So, the outlook is very, very good.

Eli Lilly is scheduled to release first-quarter results on April 30. For the first quarter, analysts expect earnings of $2.29 per share and revenue of $8.09 billion. That translates to 41.4% year-over-year earnings growth and 16.3% year-over-year revenue growth. Earnings estimates have also been revised higher over the past month, so a fourth-straight quarterly earnings surprise is likely. LLY is a Conservative buy below $842.

SOM Technicals: 

10-07-23: Closed at 567.87. Trade pressures are up. Volumes are now bullish. The next target up is 575.41.

10-14-23: closed at 609.20. Trade pressures are up and trending. Volumes are now bearish. The next target up is 636.00. There is the large gap near 460 to fill.

10-27-23: Closed at 560.23. Trade pressures are down. Volumes are bearish. The next target down is 559.00.

11-3-23: Closed at 567.81. Trade pressures are up but turning down. Volumes are neutral. The next target down is 535.00.

11-10-23: Closed at 597.50. Trade pressures are down. Volumes are neutral. Rolling over after the rally, the next target down is 544.70.

11-17-23: Closed at 591.74. Trade pressures are down but rising. Volumes are neutral. The next target up is 629.97.

11-26-23: Closed at 601.10. Trade pressures are up Volumes are neutral. In consolidation. The next target up is 619.40.

12-1-23: Closed at 584.04. Trade pressures are down. Volumes are bearish. The next target down is 573.69.

12-9-23: Closed at 598.05. Trade pressures are up. Volumes are bullish. The next target up is 611.72.

12-15-23: Closed at 571.22. Trade pressures are down. Volumes are down. The next target down is 55.74 then 529.00.

12-30-23: Closed at 581.60. Trade pressures are up. Volumes are bullish. The next target down is 560.26.

1-6-24: Closed at 618.55.  Trade pressures are up. Volumes are neutral. The next target up is a retest of the 636.15 target.

1-12-24: Closed at 642.92. Trade pressures are up. Volumes are bullish. The next target up is 664.52.

1-20-24: Closed at 628.58. Trade pressures are down. Volumes are neutral. The next target down is 606.55.

1-27-24: Closed at 640.00. Trade pressures are up. Volumes are bullish. The next target up is the Breakout of the Upper median line resistance at 639.50.

2-3-24: Closed at 667.66. Trade pressures are up. Volumes are bullish. The next target up is 682.18.

2-10-24: Closed at 741.00. Trade pressures are up. Volumes are now neutral. The next target up is 745.00.

2-16-24: Closed at 786.00. Trade pressures are up. Volumes remain bullish. The next target up is 882.00.

2-25-24: Closed at 769.54. Trade pressures are down into the neutral zone. Volumes are neutral. The next target down is 712.11.

3-1-24: Closed at 782.12. Trade pressures are in the neutral zone and rising. Volumes are bullish. The next target up is 794.47.

3-9-24: Closed at 762.14. Trade pressures are down. Volumes are bearish. The net target down is 749.88.

3-16-24: Closed at 754.17. Trade pressures are up but turning down. Volumes are bearish. The next target down is 718.42.

3-22-24: Closed at 770.61. Trade pressures are up. Volumes are bullish. The next target up is the resistance at 794.25.

3-29-24: Closed at 777.96. Trade pressures are up. Volumes are now bearish. The next target up 787.40.

4-6-24: Closed at 784.21. Trade pressures are up. Volumes are bullish. The next target up is the prior high at 793.67.

4-14-24: Closed at 751.64. Trade pressures are down. Volumes are bearish. the next target diown is 720.51.

 

EMCOR Group, Inc.

EMCOR Group, Inc. (EME) has benefited immensely from big-name semiconductor companies, like Intel, Samsung and Taiwan Semiconductor, taking steps to expand and upgrade their manufacturing facilities in the U.S. The fact is EMCOR Group provides the electrical and mechanical construction, energy and industrial infrastructure, and building services these upgrades need.

As a result, the company achieved record results in 2023. EMCOR reported full-year earnings of $633.0 million, or $13.31 per share, and total revenue of $12.58 billion, which represented 55.9% annual earnings growth and 13.6% annual revenue growth.

EMCOR also provided a strong outlook for fiscal year 2024: Full-year earnings per share are forecast to be between $14 and $15 and revenue is expected to be between $13.5 billion and $14.0 billion. And given the positive outlook, analysts have upped first-quarter estimates over the past three months.

The current consensus estimate calls for earnings of $2.83 per share on $3.22 billion in revenue, which translates to 22% year-over-year earnings growth and 12.2% year-over-year revenue growth. EME is a Moderately Aggressive buy below $389.

SOM Technicals: 

10–07-23: Closed at 206.72. Trade pressures are down but rising. Volumes are now bullish. The next target up is 211.58.

10-14-23: Closed at 202.02. Trade pressures are down. Volumes are bearish. The next target down is 192.91.

10-27-23: Closed at 205.12. Trade pressures are up. Volumes are bullish. The next target up is 212.90.

11-2-23: Closed at 210.22. Trade pressures are up. Volumes are bullish. The next target up is 212.90.

11-10-23: Closed at 210.68. Trade pressures are rising in the neutral zone. Volumes are bullish. The next target up is 229.49.

3-29-24: Closed at 350.20. Trade pressure are up but turning down. Volumes are neutral. The next target up is 354.73. A close below 347.00 signals correction.

4-6-24: Closed at 365.02. Trade pressures are up. Volumes are bullish. The next target up is 369.53, the prior high.

4-14-24: Closed at 351.88. Trade pressures are down but rising. Volumes are neutral. the next target down is 349.26.

 

Parsons Corporation

Parsons Corporation (PSN) was a new addition to the High-Growth Investments Buy List in the March Growth Investor Monthly Issue. If you recall, the company operates in the technology industry, providing services and solutions to the defense, infrastructure and intelligence markets. Primarily, Parsons’ experienced professionals, proprietary technology and solutions help solve complex technical challenges.

Demand for the company’s solutions remains robust. In recent weeks, the company was awarded a $1.0 billion contract to provide project management and engineering support services for Washington, D.C. Metro projects. And this week, Parsons also secured a $28.0 million contract for the Air Force Research Laboratory’s Global Application Research, Development, Engineering and Maintenance program.

Given the strength of its business and ongoing demand from its key markets, Parsons should continue to report strong quarterly results. For the first quarter, the analyst community expects earnings of $0.62 per share and revenue of $1.36 billion. That translates to 44.2% year-over-year earnings growth and 16% year-over-year revenue growth.

Analysts have also increased first-quarter earnings estimates by 10.7% in the past two months. As you know, positive analyst revisions typically precede future earnings surprises. So, Parsons may be gearing up for its fourth-straight quarterly earnings surprise. PSN is a Conservative buy below $90.

SOM Technicals: 

3-29-24: Closed at 82.95. Trade pressures are up. Volumes are bullish. The next target up is 85.03.

4-6-24: Closed at 84.26. Trade pressures are up. Volumes are bullish. The next target up is 85.03, also a new long entry.

4-14-24: Closed at 80.41. Trade pressures are down but rising. Volumes are neutral. The next target down is 77.46.

 

Super Micro Computer, Inc.

Super Micro Computer, Inc. (SMCI), as you know, is one of our artificial intelligence plays, and the company develops high-performance server technology solutions. Thanks to its partnership with NVIDIA and ongoing demand for its AI servers, SMCI shares have been on an absolute tear this year, up more than 255% year-to-date.

Now, the stock did take a breather last week despite its recent addition to the S&P 500. The fact is Super Micro Computer announced a secondary stock offering, and stocks always take a break when a secondary stock offering is announced. But the great news is that Super Micro Computer will take all the money it raises from this offering and continue to dominate the cloud.

In fact, demand for its solutions isn’t anticipated to cool off any time soon. For its third quarter in fiscal year 2024, earnings are forecast to soar 252.1% year-over-year to $5.74 per share. Analysts have also increased earnings estimates by 33.2% in the past three months, so SMCI is set for its fourth-straight quarterly earnings surprise. Revenue is forecast to grow 209% to $3.96 billion. SMCI is an Aggressive buy below $1,407.

SOM Technicals:

7-1-23: Closed at 250.40. Trade pressures are up. Volumes are bullish. The next target up is 253.96.

7-9-23: Closed at 260.89. Trade pressures are up but declining. Volumes are bullish. The next target up is 270.18.

7-15-23: Closed at 296.94. Trade pressures are up. Volumes are bearish. The next target up is 306.85, the prior high.

7-21-23: Closed at 303.15. Trade pressures are up but down near the neutral zone. Volumes are bullish. The next target down is 271.97.

7-29-23: Closed at 334.50. Trade pressures are up. Volumes are bullish. The next target up is 412 but support is 325.00.

8-4-23: Closed at 338.10. Trade pressures are down but rising. Volumes are bullish. The next target up is 412.40.

8-11-23: Closed at 254.43. Trade pressures are down hard. Volumes are bearish. The next target down is 231.88.

8-18-23: Closed at 243.55. Trade pressures are down. Volumes are bearish. The next target down is 215.81. A close above 254 would signal higher.

8-25-23: Closed at 253.96. Trade pressures are down. Volumes are neutral. The next target is 237.43.

9-1-23: Closed at 282.16. Trade pressures are up. Volumes are bullish. The next target up is 312.74.

9-8-23: Closed at 280.66. Trade pressures are down but rising. Volumes are bullish. The next target up is 288.19.

9-16-23: Closed at 249.26. Trade pressures are down. Volumes are bearish. The next target down is 237.74.

9-23-23: Closed at 236.25. Trade pressures are down. Volumes are neutral. The next target down is the prior low at 213.00.

10-07-23: Closed at 290.50. Trade pressures are up. Volumes are  bullish. The next target up is 300.25.

10-14-23: Closed at 285.20. Trade pressures are down. Volumes are bearish., The next target down is 253.00.

10-27-23: Closed at 240.99. Trade pressures are down. Volumes are bearish. The next target down is 237.94.

11-3-23: Closed at 255.00. Trade pressures are up. Volumes are bearish. The next target up is 271.21.

11-10-23: Closed at 266.00. Trade pressures are up. Volumes are bullish. The next target up is 281.74.

1-27-24: Closed at 476.10. Trade pressures are down. Volumes are bearish. The next target down is 422.44.

2-3-24: Closed at 579.63. Trade pressures are up. Volumes are bearish. The next target up is 596.65. But some retracement is more likely.

2-10-24: Closed at 740.29. Trade pressures are up. Volumes are bullish. The next target up is unknown. A close below 679.00 would signal lower.

2-16-24: Closed at 820.53 after reaching a high of 1077.57. Trade pressures are up but turning down. Volumes are bearish. Should find some support here.

2-25-24: Closed at 860.01. Trade pressures are up into the neutral zone. Volumes are now bearish. High volatility makes it hard to define a potential target.

3-1-24: Closed at 905.48, but trading $60 higher in the aftermarket. Trade pressures are up. Volumes are bullish. The next target up is 955.59.

3-9-24: Closed at 1140.01. Trade pressures are up. Volumes are bullish. The next target down is 1036.32.

3-16-24: Closed at 1078. Trade pressures are down. Volumes are bearish. the next target down is 990.84.

3-22-24: Closed at 969.50. Trade pressures are up. Volumes are neutral. The next target up is 1028.

3-29-24: Closed at 1010.03. Trade pressures are down. Volumes remain bullish. The next target down is a retest of  the 843.63 target. A break above 1043 signals higher.

4-6-24: Closed at 948.02. Trade pressures are down. Volumes are bearish. The next target down is 843.63.

4-14-24: Closed at 898.49. Trade pressures are rising into the neutral zone. Volumes are bearish. The next target up is 933.88.

 

Vertiv Holdings Company

Vertiv Holdings Company (VRT) earned a spot in the High-Growth Investments Buy List in the March Growth Investor Monthly Issue. The fact is Vertiv is a leading provider of digital infrastructure, and its portfolio of power, cooling and IT infrastructure solutions are vital to commercial and industrial facilities, communication networks and data centers.

Interestingly, Vertiv recently joined NVIDIA’s partner network – and received high praise from NVIDIA’s CEO Jensen Huang. At NVIDIA’s recent conference, Huang stated that NVIDIA has partnered with Vertiv to develop cooling systems, stating, “Vertiv is very important in the supply chain of designing liquid cooled and otherwise data centers.”

So, the strong demand that Vertiv experienced for its solutions in 2023 – its backlog expanded to a record $5.5 billion – should only intensify going forward.

Looking ahead to its first quarter in fiscal year 2024, which will be announced in late April, earnings are forecast to increase 45.8% year-over-year to $0.35 per share. Revenue is expected to rise 6.2% year-over-year to $1.62 billion. Analysts’ earnings estimates have remained steady over the past three months, but Vertiv has a history of posting positive earnings surprises. VRT is an Aggressive buy below $95.

SOM Technicals: 

3-29-24: Closed at 81.84. Trade pressures are up but turning down. Volumes are bullish. The next target down is 77.05. A close above 83.62 signals higher.

4-6-24: Closed at 85.34. Trade pressures are up. Volumes are bullish. The next target up is the prior high at 88.70.

4-14-24: Closed at 83.89. Trade pressures are rising into the neutral zone. Volumes are neutral. The next target down is 78.14.