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High-Growth Investments
Builders FirstSource, Inc.
Through its nearly 500 locations, Builders FirstSource, Inc. (BLDR) provides building products throughout the U.S. Simply put, the company offers everything that homebuilders need for the construction of new homes, from wall panels and drywall to doors, stairs, windows and siding. So, the company stands to benefit immensely from key interest rate cuts this year, as it will bring mortgage rates down and spur demand for new homes.
Builders FirstSource scheduled its fourth-quarter and full-year 2023 earnings announcement for February 22. Currently, the consensus estimate calls for fourth-quarter earnings of $2.54 per share on $4.0 billion in revenue, compared to earnings of $3.21 per share and revenue of $4.36 billion in the fourth quarter of 2022. Full-year revenue is also anticipated to decline 25.4% year-over-year, while earnings are forecast to drop 26.8% year-over-year.
But Builders FirstSource has a history of posting double-digit earnings surprises; it posted 36%, 96%, 55% and 14% earnings surprises in the past four quarters, respectively. Analysts have also upped fourth-quarter and full-year earnings estimates in recent months, so I’m expecting another earnings surprise in February. BLDR is a Moderately Aggressive buy below $191.
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.
Coca-Cola Consolidated, Inc.
Coca-Cola Consolidated, Inc. (COKE) was a new addition to the High-Growth Investments Buy List in the January Growth Investor Monthly Issue. The company 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.
The first nine months of 2023 were spectacular for Coca-Cola Consolidated, as it achieved sales of $5.02 billion and earnings of $489.24 million. Third-quarter earnings accounted for $1.71 billion in sales and $164.34 million in earnings. There aren’t any analysts following the stock, but given the robust results in the first nine months of the year, the company should achieve strong fourth-quarter and full-year 2023 results.
I should also add that Coca-Cola Consolidated is not only a growth stock but also an income stock. The company will pay a quarterly dividend of $0.50 per share and a special dividend of $16 per share on February 9. All shareholders of record on January 26 will receive the dividend. The stock has a 0.2% dividend yield. COKE is a Moderately Aggressive buy below $921.
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.
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 are anticipated to add handsomely to the company’s top and bottom lines for the foreseeable future.
Eli Lilly plans to announce results for its fourth quarter and fiscal year 2023 on February 6. Fourth-quarter earnings are forecast to grow 21.5% year-over-year to $2.54 per share, compared to $2.09 per share in the same quarter a year ago. Fourth-quarter revenue is expected to rise 21.9% year-over-year to $8.9 billion.
The strength of Eli Lilly’s business has enabled the company to reward its shareholders quarter after quarter. Eli Lilly has paid a dividend for an impressive 175 straight quarters. The company’s next dividend of $1.30 per share will be paid on March 8 to all shareholders of record on February 15. The dividend represents a 165% increase over the dividend paid just 10 years ago. So, clearly, Eli Lilly aims to reward its shareholders. LLY is a Moderately Aggressive buy below $696.
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.
Royal Caribbean Cruises Ltd.
Royal Caribbean Cruises Ltd. (RCL) has bounced back impressively from the pandemic, which largely shut down the entire cruise industry. While many cruise lines have struggled to rebound, Royal Caribbean Cruises revealed that its third-quarter bookings had exceeded 2019 levels. Its fleet of 65 cruise ships is back to traveling to more than 1,000 destinations around the world.
Given that demand remains robust, Royal Caribbean Cruises is set to report blowout quarterly results on Thursday, February 1. For its fourth quarter, earnings are forecast to surge to $1.13 per share, compared to a $1.12 per share loss in the fourth quarter of 2022. The analyst community has increased earnings estimates over the past three months, so a fourth-straight quarterly earnings surprise is likely. Fourth-quarter revenue is also expected to grow 29.1% year-over-year to $3.36 billion.
Fiscal year 2023 results are anticipated to be equally impressive, with the current consensus estimate calling for $6.61 per share and revenue of $13.93 billion. That compares to an earnings loss of $7.50 per share and revenue of $8.84 billion in 2022. 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.
Super Micro Computer, Inc.
Super Micro Computer, Inc. (SMCI) is one of my favorite artificial intelligence stocks, especially right now, as the stock has soared more than 66% to start 2024. The fact is the company develops high-performance server technology solutions, and it continues to experience robust demand for its AI servers. And that’s added handsomely to its top and bottom lines.
Prior to its quarterly earnings announcement on Monday, January 29, Super Micro Computer released preliminary results. Fourth-quarter revenue is now forecast to be between $3.6 billion and $3.65 billion, compared to previous estimates for $2.7 billion to $2.9 billion. Fourth-quarter adjusted earnings per share are now expected to be between $5.40 and $5.55, up from previous estimates for $4.40 to $4.88. That represents 65.6% to 70.2% year-over-year earnings growth.
In the wake of the increased guidance, the analyst community upped fourth-quarter earnings estimate to $4.93 per share. That’s still well below Super Micro Computer’s new guidance, so the company is likely gearing up for a big earnings surprise on Monday. SMCI is an Aggressive buy below $633.
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.