High-Growth Investments

Builders FirstSource, Inc.

Builders FirstSource, Inc. (BLDR) provides building products through its nearly 500 locations in the U.S. Primarily, the company offers a variety of building supplies, including wall panels, drywall, doors, stairs, windows and siding, for the construction of new homes. So, Builders FirstSource stands to benefit from rate cuts this year, as it will bring mortgage rates down, too.

But while we wait for the Fed to step up and cut rates, Builders FirstSource’s business still remains strong, and the company continues to exceed analysts’ expectations.

For the fourth quarter, the company reported adjusted earnings of $439.3 million, or $3.55 per share, and total sales of $4.15 billion. That compared to adjusted earnings of $3.21 per share and sales of $4.36 billion in the fourth quarter of 2022. Analysts expected adjusted earnings of $2.54 per share and sales of $4.03 billion, so Builders FirstSource posted a 39.8% earnings surprise and a 3% sales surprise.

Looking forward, Builders FirstSource provided a positive outlook for 2024. The company expects total sales between $17.5 billion and $18.5 billion. In turn, analysts have increased full-year 2024 earnings estimates by 11% in the past three months and now expect earnings of $12.96 per share. BLDR is a Moderately Aggressive buy below $223.

SOM Technicals:

11-17-23: Closed at 133.59. Trade pressures are up. Volumes are bullish. The next target up is 157.31.

11-26-23: Closed at 134.71. Trade pressures are up. Volumes are now neutral. The next target up is 138.72.

12-1-23: Closed at 139.28. Trade pressures are down into the neutral zone. Volumes are bullish. The next target up is 148.97.

12-9-23:Closed at 147.70. Trade pressures are up. Volumes are bullish. The next target up is 156.81 , the prior high.

12-15-23: Closed at 162.51. Trade pressures are up but turning over. Volumes are now neutral. The next target down is 152.40.

12-30-23: Closed at 166.94. Trade pressures are up but tuning over. Volumes are neutral. The next target down is 158.13.

1-6-24: Closed at 159.78.  Trade pressures are down.  Volumes are neutral.  The next target down is 145.22.

1-12-24: Closed at 167.39. Trade pressures are up. Volumes are bullish. The next target up is 171.03. A close below 158 starts a short.

1-20-24: Closed at 172.51. Trade pressures are up. Volumes are bullish. The next target up is 181.14.

1-27-24: Closed at 169.52. Trade pressures are up. Volumes are neutral. The next target up is 178.66, the prior high.

2-3-24: Closed at 180.75. Trade pressures are up. Volumes are bullish. The next target up is 183.36.

2-10-24: Closed at 185.33. Trade pressures are up. Volumes are bullish. The next target up is 199.00.

2-16-24: Closed at 183.79. Trade pressures are down but rising. Volumes are neutral. The next target down is 163.59.

2-25-24: Closed at 188.97. Trade pressures are up. Volumes are bearish. The next target down is 181.79.

3-1-24: Closed at 201.00. Trade pressures are up. Volumes are bullish. The next target up is 204.33.

3-9-24: Closed at 199.84. Trade pressures are up but declining. Volumes are bullish. The next target down is 190.75.

3-16-24: Closed at 195.49. Trade pressures are down. Volumes are bearish. The next target down is 182.35.

3-22-24: Closed at 210.54. Trade pressures are up but turning down. Volumes are bullish. The next target down is 205.30.

 

Coca-Cola Consolidated, Inc.

Coca-Cola Consolidated, Inc. (COKE) bottles and distributes a vast range of beverage products and flavors, including Coca-Cola branded products, as well as well-known energy drinks, sparkling and still beverages, carbonated and non-carbonated drinks.

There currently aren’t any analysts following Coca-Cola Consolidated, but the company’s recent results were still robust. For the fourth quarter, the company reported total sales of $1.63 billion and adjusted earnings of $125.6 million, or $13.39 per share.

The company also achieved 7% annual sales growth and 34.5% annual earnings growth in its fiscal year 2023. Adjusted earnings per share increased 34.5% year-over-year to $65.58, compared to $48.75 per share in 2022. COKE is a Moderately Aggressive buy below $910.

SOM Technicals:

1-27-24: Closed at 842.82. Trade pressure are rising into the neutral zone. Volumes are neutral. The next target down is 804.

2-3-24: Closed at 909.51. Trade pressures are up. Volumes are bullish. The next target up is 959.00.

2-10-24: Closed at 865.00. Trade pressures are down. Volumes are bearish. The next target down is 814.00.

2-16-24: Closed at 846.07. Trade pressures are up into the neutral zone. Volumes are bearish. The next target down is 814.60.

2-25-24: Closed at 829.23. Trade pressures are down. Volumes are neutral. The next target down is the LML at 808.93.

3-1-24: Closed at 830.00. Trade pressures are down into the neutral zone. Volumes are neutral. The next target down is 796.85.

3-9-24: Closed at 825.07. Trade pressures are down but rising. Volumes are bearish. The next target down is 801.09.

3-16-24: Closed at 830.46. Trade pressures are up but declining. Volumes are bearish. The next target down is 801.09.

3-22-24: Closed at 874.31. Trade pressures are up. Volumes are bullish. The next target up is 890.01.

 

Eli Lilly & Company

Eli Lilly & Company (LLY) is a leading pharmaceutical company, with more than 100 drugs in its pipeline. Two of its most popular treatments right now are Zepbound, a weight-loss treatment, and Mounjaro, a treatment for type 2 diabetes. Both have received FDA approval and have added handsomely to the company’s top and bottom lines.

In fact, new product revenue was led by Mounjaro and Zepbound and soared to $2.49 billion in the fourth quarter. Mounjaro sales accounted for $2.21 billion, while Zepbound sales accounted for $175.8 million. The company achieved total fourth-quarter sales of $9.35 billion, topping estimates for $8.93 billion. Fourth-quarter earnings of $2.25 billion, or $2.49 per share, also beat estimates for earnings of $2.22 per share.

Looking ahead to fiscal year 2024, Eli Lilly expects full-year sales between $40.4 billion and $41.6 billion, or 18.4% to 21.9% annual revenue growth. Full-year 2024 earnings per share are forecast to be between $12.20 and $12.70, representing 93% to 100.9% annual earnings growth.

In the wake of the positive quarterly results and outlook, the analyst community has increased first-quarter earnings estimates over the past month. LLY is a Moderately Aggressive buy below $843.

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.

 

Royal Caribbean Cruises Ltd.

Royal Caribbean Cruises Ltd. (RCL) is a well-known cruise operator that’s provided unique vacation experiences at sea since 1969. The company’s fleet of more than 63 cruise ships travels to more than 270 destinations in more than 60 countries. So, it’s no wonder Royal Caribbean has been voted Best Cruise Line Overall for 20 straight years.

Business has finally resumed as usual in the wake of the COVID pandemic, as evidenced by its “exceptional” results in fiscal year 2023. Royal Caribbean achieved record bookings last year, which drove total 2023 revenue to $13.9 billion and adjusted earnings of $1.8 billion, or $6.77 per share. These results exceeded analysts’ expectations for earnings of $6.62 per share.

Given its record bookings, Royal Caribbean is in a strong position for 2024 – and the analyst community appears to agree. First-quarter earnings estimates have been revised 47% higher over the past two months. First-quarter earnings are now forecast to surge to $1.22 per share, compared to an earnings loss of $0.23 per share in the first quarter of 2023. RCL is a Moderately Aggressive buy below $142.

SOM Technicals:

8-25-23: Closed at 99.77. Trade pressures are up but turning down. Volumes are neutral. The next target down is 96.02.

9-1-23: Closed at 97.70.  Trade pressures are down. Volumes are bearish. The next target down is 85.56.

9-8-23: Closed at 97.36. Trade pressures are down but rising. Volumes are bearish. The next target down is 85.56.

9-16-23: Closed at 97.42. Trade pressures are up but turning down. Volumes are neutral. The next target down is 95.74.

9-23-23: Closed at 91.204. Trade pressures are down. Volumes are bearish. The next target down is 85.58.

12-30-23: Closed at 129.49. Trade pressures are up.  Volumes are bullish  The next target up is 131.93.

1-6-24: Closed at 122.66.  Trade pressures are up into the neutral zone.  Volumes are bullish.  The next target down is 113.67.

1-12-24: Closed at 121.21. Trade pressures are down. Volumes are bearish. The next target down is 113.67.

1-20-24: Closed at 127.00. Trade pressures are up.  Volumes are bullish. The next target up is 130.97.

1-27-24: Closed at 123.46. Trade pressures are down. Volumes are bearish. The next target down is 113.67. 

2-3-24: Closed at 123.44. Trade pressures are down. Volumes are neutral. The next target down is 116.47.

2-10-24: Closed at 116.80. Trade pressures are down. Volumes are bearish. The next target down is 112.30.

2-16-24: Closed at 116.90. Trade pressures are up into the neutral zone. Volumes are bearish. The next target down is 112.39.

2-25-24: Closed at 121.91. Trade pressures are up. Volumes are neutral. The next target down is 112.39.

3-1-24: Closed at 124.26. Trade pressures are up. Volumes are bullish. The next target up is 126.96.

3-9-24: Closed at 127.42. Trade pressures are up but declining. Volumes are bullish. The next target up is 131.76.

3-16-24: Closed at 128.92. Trade pressures are up but turning down. Volumes are neutral. the next target up is 133.09.

3-22-24: Closed at 125.83. Trade pressures are up. Volumes are bullish. The next target up is 139.33.

 

Super Micro Computer, Inc.

Super Micro Computer, Inc. (SMCI) remains one of the hottest artificial intelligence (AI) stocks this year. If you recall, the company develops high-performance server technology solutions that are utilized by companies like NVIDIA Corporation (AI). And it has experienced incredible demand for its AI services, which was evident in its blowout quarterly results.

For its second quarter in fiscal year 2024, Super Micro Computer achieved earnings of $5.59 per share and total sales of $3.66 billion. That translated to 71.5% year-over-year earnings growth and more than 100% year-over-year sales growth. Analysts only expected earnings of $4.93 per share, so SMCI posted a 13.4% earnings surprise.

But what really had Wall Street excited was the company’s guidance. Super Micro Computer upped its outlook for fiscal year 2024, as it now expects full-year sales between $14.3 billion and $14.7 billion. That was up from previous estimates for $10.0 billion to $11.0 billion.

In the wake of this positive sales outlook, the analyst community has increased third-quarter earnings estimates by 32.7% in the past two months. Third-quarter earnings are now forecast to soar 250.9% year-over-year to $5.72 per share. SMCI is an Aggressive buy below $1,258.

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.