The following is provided by Navellier with technical comment from South Ocean Management – pls do your own due diligence.
(For this 2021 year, SOM will track only the Top 5 Hi-Growth Investments.)
Navellier says,
High-Growth Investments
DocuSign, Inc.
DocuSign, Inc. (DOCU) offers a cloud-based platform that allows businesses and remote workers to develop, upload and send agreements virtually. The company’s eSignature technology has certainly been popular during the pandemic, as DocuSign has 100s of millions of users around the world and 745,000 paying customers.
As a result, DocuSign unveiled blowout results for its third quarter back on December 3. The company achieved third-quarter revenue of $382.9 million, or 53% year-over-year growth. That topped analysts’ expectations for $361.15 million. Third-quarter earnings per share soared 100% year-over-year to $0.22, smashing estimates for $0.13 per share by 69.2%.
The stock has grown more volatile in recent weeks, given the FDA approval of the COVID-19 vaccine and subsequent rollout here in the U.S. But here’s the truth: Remote work is here to stay. Companies have discovered that employees are more productive at home, and many are making remote work an ongoing option for many employees. So, the need for DocuSign’s cloud-based solutions will also persist.
And analysts agree: Fourth-quarter earnings estimates have been increased by 40% in the past month alone. Fourth-quarter earnings are now expected to jump 75% year-over-year, while revenue is forecast to grow 48.3% year-over-year. DOCU is a Moderately Aggressive buy below $268.
SOM Technicals:
6-26-20: Closed at 177.58. Trade pressures are up. Volumes are bullish. This spike up is not likely to continue in the face of the sell off.
7-4-20: Closed at 190.99. Trade pressures are up. Volumes are bullish. This parabolic move is very uncomfortable.
7-10-20: Closed at 210.11. Trade pressures are up but reversing. A close below 210 would signal lower.
7-18-20: Closed at 196.42. Trade pressures are down but rising. Volumes are neutral. The next target up is 217.
7-24-20: Closed at 190.95. Trade pressures are down. Volumes are bearish. The next target down is 172.23.
7-30-20: Closed at 217.45. Trade pressures are up. Volumes are bullish. The next target up is 257.20.
8-7-20: Closed at 205.00. Trade pressures are down. Volumes are bearish. Dropped thru two downside targets this week. The next target down is 185.06.
8-15-20: Closed at 199.71. Trade pressures are neutral. Volumes are neutral also. Traded down near the 185.06 target and now has moved higher. At the 25×5 MA and looks lower. The next target don is the 185.91 Target.
8-21-20: Closed at 210.18. Trade pressures are up but showing reversal. Volumes are bullish. The next target up is 221.00.
8-29-20: Closed at 215.24. Trade pressures are up. Volumes are bearish. resistance here at the 217.23 level, which is also the new long entry.
9-5-20: Closed at 216.26: Trade pressures are down. Volumes are bearish. Sitting on the 25×5 MA support at 216.
9-12-20: Closed at 197.94. Trade pressures are down. Volumes are bearish. A close below 196.53 triggers a new short entry.
9-19-20: Closed at 194.42. Trade pressures are down. Volumes are neutral. The next target down is 173.35.
9-26-20: Closed at 212.36. Trade pressures are down into the neutral zone. Volumes are bullish. The next target down is 173.35.
10-11-20: Closed at 225.80. Trade pressures are down into the neutral zone. Volumes are bullish. A close above 240 would signal higher.
10-17-20: Closed at 234.60. Trade pressure are up. Volume are bullish. The next target up is 300.00.
10-24-20: Closed at 219.82. Trade pressures are down but reversing. Volumes are bearish. The next target down is 195.29.
10-30-20: Closed at 202.25. Trade pressures are down. Volumes are bearish. the next target down is 195.29.
11-07-20: Closed at 231.69. Trade pressures are up but reversing. Volumes are bearish. Resistance at 246 held. the next target down is the 195 prior target.
11-14-20: Closed at 205.70. Trade pressures are now up but reversing again. Volumes are bearish. The 195 level was touched then rallied to the close.
11-20-20: Closed at 221.59. Trade pressures are up. Volumes are bullish. The next target up is 241.70.
11-29-20: Closed at 226.87. Trade pressures are up. Volumes are bullish. The next target up is 241.70.
12-05-20: Closed at 243.22. Trade pressures are up. Volumes are neutral. The next target up is 298.04.
12-11-20: Closed at 225.49. Trade pressures are down into the neutral zone. Volumes are neutral. the next target down is 203.56.
12-19-20: Closed at 241.00. Trade pressures are up but reversing. Volumes are bullish. Support is at 225.00.
12-26-20: Closed at 244.93. Trade pressures are up but reversing. Volumes are neutral. Support is at 230.00.
01-01-21: Closed at 222.30. Trade pressures are down. Volumes are bearish. The next target down is 203.50. Support is at 222.00.
01-08-21: Closed at 244.54. Trade pressures are up. Volumes are bullish. The next target up is 249.63.
01-16-21: Closed at 249.28. Trade pressures are down into the neutral zone. Volumes are bearish. The next target down is the 236.78 short entry.
01-22-21: Closed at 255.15. Trade pressures are neutral. Volumes are neutral. The next target down is 236.78. A break above 258 would signal higher.
Logitech International SA
Logitech International SA (LOGI), as we discussed earlier, is benefiting from the surge in online gaming and folks’ efforts to set up home offices. Logitech’s products include keyboards, mice, iPad and tablet accessories, smartphone accessories, headsets, webcams, home security cameras, smart home devices, video conferencing tools and speakers, as well as advanced gaming gear.
During the company’s second quarter in fiscal year 2021, gaming product sales accounted for $182 million. Keyboards, video collaboration tools and pointing devices accounted for $145 million, $130 million and $120 million, respectively. Total second-quarter revenue soared 75% year-over-year to $1.26 billion. That crushed estimates for $834.55 million.
Thanks to strong demand for its products and the better-than-expected quarterly results, Logitech upped its outlook for fiscal year 2021. The company expects full-year revenue between 35% and 40%, compared to previous forecasts for 10% to 13%. Analysts have also upped earnings estimates for full-year 2021 by 72.4% in the past three months. LOGI is a Conservative buy below $103.
SOM Technicals:
12-19-20: Closed at 94.85. Trade pressures are up. Volumes are bullish. In the move up from 86.80. The next target up is 99.86.
12-26-20: Closed at 92.96. Trade pressures are down into the neutral zone. Volumes are neutral. The next target up is the prior high at 95.94.
01-01-21: Closed at 97.19. Trade pressures are up. Volumes are bullish. The next target up is 99.86.
01-08-21: Closed at 104.85. Trade pressures are up. Volumes are bullish. Zipped thru the 99.86 level; at the 105.70 target. Expect some retracement.
01-16-21: Closed at 100.91. Trade pressures are down. Volumes are bearish. Now in the new short. The next target down is 97.12 which is also a support level.
01-22-21: Closed at 104.20. Trade pressures are up. Volumes are bullish. Testing the 105 highs.
Novavax, Inc.
Novavax, Inc. (NVAX) develops vaccines for the toughest viruses in the world by utilizing its proprietary technology that uses genetic engineering and Matrix-M to boost biologic functions and create a positive immune response. The company’s COVID-19 vaccine is in Phase 3 clinical trials in the U.K. and late-stage trials are anticipated in the U.S. in the coming weeks.
While it appears that Novavax is falling behind other vaccine companies like Pfizer and Moderna, here’s what sets it apart: Novavax is also developing a vaccine for seasonal influenza, Nanoflu, and it’s currently in Phase 3 clinical trials. If approved by the FDA, Nanoflu could be combined with the company’s COVID-19 vaccine so folks would only need one shot during flu season. That could be a huge win for Novavax and a big step towards profitability for the company. NVAX is an Aggressive buy below $198.
SOM Technicals:
9-26-20: Closed at 113.56. Trade pressures are up. Volumes are bullish. The next target up is 129.69.
10-11-20: Closed at 111.12. Trade pressures are up and trending. Volumes are buillish. The next target up is 129.00.
10-17-20: Closed at 107.04. Trade pressures are down. volumes are bearish. A close below 101 would signal lower.
10-24-20: Closed at 93.13. Trade pressures are down and trending. Volumes are bullish. the next target down is 73.45.
10-30-20: Closed at 80.71. Trade pressures are down but rising. The next target down is 73.45. A close above 117.39 would start a new move up.
11-07-20: Closed at 89.86. Trade pressures are up but reversing. Volumes are bullish. Need a close above the 25×5 at 98 to restart the move up.
11-14-20: Closed at 96.60. Trade pressures are up. Volumes are bullish. A close above 100 would signal higher.
11-20-20: Closed at 86.60. Trade pressures are down. Volumes are bearish. At resistance. The next target down is 73.45. A break of the resistance would signal higher to 117.39.
11-29-20: Closed at 126.20. Trade pressures are up. Volumes are neutral. Thru the 117 target and now at the 123 target. The next target up is 160.90.
12-05-20: Closed at 126.25. Trade pressures are up but declining. Volumes are neutral. In a retracement inside the move up. The next target down is 94.06.
12-11-20: Closed at 124.88. Trade pressures are up. Volumes are bearish. The next target up is 162.34.
12-19-20: Closed at 124.85. Trade pressures are up into the neutral zone. Volumes are neutral. Need a break above the 136.00 level to establish a new long.
12-29-20: Closed at 129.34. Trade pressures are up. Volumes are neutral. A close above 133.09 would signal a new move up.
01-01-21: Closed at 111.54. Trade pressures are down. Volumes are bearish. Closed below the 25×5 MA . The next target down is 94.09.
01-08-21: Closed at 121.69. Trade pressures are up but reversing. Volumes are bearish. The next target down is 94.09.
01 -16-21: Closed at 127.43. Trade pressures are up. Volumes are bullish. Have closed above the upper median line. the next target up is the prior high at 150.50.
01-22-21: Closed at 126.98. Trade pressures are down but rising. Volumes are bearish. Support is 105.70.
United Microelectronics Corporation
United Microelectronics Corporation (UMC) develops and manufactures integrated circuits (ICs), with a specific focus on logic and specialty technologies. As a result, its wafers are utilized by every corner of the electronics industry. It has 12 fabrication facilities throughout Asia and manufactures more than 750,000 eight-inch wafers monthly.
In November, the company achieved sales of NT$14.73 billion, or a 6% year-over-year increase. For the first 11 months of 2020, UMC reported total sales for NT$161.53 billion, up nearly 20% from the NT$134.83 billion reported in the first 11 months of 2019. So, it’s not too surprising that the company is expected to post strong results for the fourth quarter and full year 2020.
For the fourth quarter, earnings are forecast to grow 20% year-over-year to $0.06 per share and sales are expected to rise 14.4% year-over-year to $1.57 billion. For full-year 2020, analysts are looking for earnings of $0.31 per share on $6.01 billion in revenue, which represents 138.5% annual earnings growth and 25.2% annual revenue growth. UMC is an Aggressive buy below $10.
SOM Technicals:
12-19-20: Closed at 8.13. Trade pressures are up. Volumes are neutral. Support is at 7.69.
12-26-20: Closed at 8.29. Trade pressures are up. Volumes are neutral. Support is at 7.69.
01-01-21: Closed at 8.43. Trade pressures are down into the neutral zone. Volumes are neutral. Support is now 7.90.
01-08-21: Closed at 8.52. Trade pressures are up. Volumes are bearish. Support is now 7.90.
01-16-21: Closed at 8.78. Trade pressures are down into the neutral zone. Volumes are bearish. Sharp pull back off the 9.64 high. The next target down is 8.43.
01-22-21: Closed at 10.27. Trade pressures are up. Volumes are bullish. The next target up is 10.77.
Zoom Video Communications, Inc.
Zoom Video Communications, Inc. (ZM) rounds out the Top 5 Stocks list for the seventh-straight month. The reality is that Zoom will continue “zooming” in the New Year, as folks continue to work from home and connect via the company’s online communication platform. During the third quarter alone, the company had 433,700 customers with 10 or more employees, or a 485% year-over-year increase.
With the work-from-home trend expected to persist for the foreseeable future, even more individuals and businesses are set to utilize the company’s video communication tools for meetings and to collaborate with fellow employees. As a result, Zoom looks for even more customers to purchase monthly subscriptions in the coming months.
For the fourth quarter in fiscal year 2021, Zoom expects these new subscriptions to be a big addition to its top and bottom lines. Fourth-quarter revenue is expected to come in between $806 million and $811 million, up from $188.25 million in the fourth quarter of 2020. Fourth-quarter earnings per share are forecast to surge to between $0.77 and $0.79, compared to $0.15 per share in the same quarter a year ago. ZM is an Aggressive buy below $483.
SOM Technicals:
7-30-20: Closed at 253.91. Trade pressures are down but rising into the neutral zone. Volumes are bearish. The next target down is 209.79.
8-7-20: Closed at 258.73. Trade pressures are down. Volumes are Bearish. The next target down is 239.12.
8-15-20: Closed at 244.91. Trade pressures are up. Volumes are bearish. Rising into net bearish volumes after reaching the 227.53. target. Need to get thru the 25×5 MA at 254.63, otherwise more downside.
8-21-20: Closed at 289.68. Trade pressures are up and trending. Volumes are bullish. The resistance was non- existent. A new long entry was triggered at 271.00.
8-29-20: Closed at 299.27. Trade pressures are up. Volumes are bullish. The next target up is 314.82.
9-5-20: Closed at 369.89. Trade pressures are down into the neutral zone. Volumes are bullish. The next target down is 314.78 which would close the gap up.
9-12-20: Closed at 383.00. Trade pressures are now up. Volumes are bearish. A close below 376 would signal a new leg down.
9-19-20: Closed at 438.73. Trade pressures are up. Volumes are bullish. In the new move after a back test to try to close the gap at 345. The next target up is 470.76.
9-26-20: Closed at 496.50. Trade pressures are up but declining. Volumes are now neutral. The next target down is 452.23.
10-11-20: Closed at 492.41. Trade pressures up Volumes are bullish. The next target up is the 529.74 prior high.
10-17-20: Closed at 559.00. Trade pressures are up and trending. Volumes are bullish. the next target up is 594.76.
10-24-20: Closed at 511.52. Trade pressures are down. Volumes are bearish. The next target down is 487.96.
10-30-20: Closed at 460.91. Trade pressures are down. Volumes are bearish. The next target down is 446.50.
11-07-20: Closed at 500.11. Trade pressures are up. Volumes are bullish. Need to clear the 25×5 resistance at 501.00.
11-14-20: Closed at 403.68. Trade pressures are up into the neutral zone. Volumes are bearish. The next target down is 357.00.
11-20-20: Closed at 439.60. Trade pressures are up. Volumes are now bullish. The next target up is resistance at 470.00.
11-29-20: Closed at 471.61. Trade pressures are up. Volumes are bullish. At the 470.75 target. The next target up is 505.88.
12-05-20: Closed at 410.01. Trade pressures are down. Volumes are bearish. At lower wedge support. The next target down is a retest of the prior low at 366.28.
12-11-20: Closed at 397.01. Trade pressures are down but rising. Volumes are bearish. The next target down is 357.46.
12-19-20: Closed at 406.01. Trade pressures are up. Volumes are bullish. Need a break above the 25×5 MA to restart the move up.
12-26-20: Closed at 375.17. Trade pressures are down. Volumes are bearish. The next target down is 357.04.
01-01-21: Closed at 337.32. Trade pressures are down. Volumes are bearish. The next target down is the 200 day MA at 308.06.
01-08-21: Closed at 349.61. Trade pressures are rising into the neutral zone. Volumes are bearish. The next target down is the 200 day MA at 313 which should act as support.
01-16-21: Closed at 384.53. Trade pressures are up. Volumes are bearish. Support is at 339, the lower median line.
01-22-21: Closed at 383.40. Trade pressures are down.Voumes are bullish. The next target up is 462.81.