The following is provided by Navellier with technical comment from South Ocean Management – pls do your own due diligence.
Navellier says,
High-Growth Investments Top 5
HollyFrontier Corp. (HFC) is my top High-Growth Investment stock yet again. HollyFrontier is an independent petroleum refiner and marketer that serves the Great Plains, Rocky Mountains and Southwest regions of the U.S. The company produces gasoline, diesel fuel, jet fuel, specialty lubricant products, liquefied petroleum gas, fuel oil, and specialty and modified asphalt.
For the second quarter, HollyFrontier’s earnings surged 498% year-on-year to $345.5 million, or $1.94 per share. Adjusted earnings per share were $1.45, which missed estimates for $1.61 per share by 9.9%. Second-quarter revenue increased 29.2% year-over-year to $4.47 billion. Analysts were expecting sales of $4.07 billion, so HollyFrontier posted a 9.8% sales surprise.
While HFC initially declined on the earnings miss, it has since recovered completely. And I expect it to move higher from here. With its strong forecasted sales and earnings, and solid 1.8% dividend yield, HFC is one of my top refining plays.
I recommend you buy this Aggressive stock up to $84 per share. As a refresher, Aggressive stocks should make up no more than 10% of your portfolio. These stocks have more upside potential, but they also come with more downside risk. So please make sure to follow my 60%/30%/10% rule for HFC.
SOM Technicals:
6-30-18: Closed at 68.43. Trade pressures are down. Volume has closed as neutral. In the move down and at the 66.42 target.
7-6-18: Closed at 68.60. Trade pressures are down. Volumes are neutral. Holding at the 161.00 pullback level.
7-14-18: Closed at 68.68. Trade pressures are down but rising. Volumes are now neutral. Sitting on support. A close above 72 would trigger a new long entry.
7-20-18: Closed at 71.02. Trade pressures are up. Volumes are now bullish. The next target up is 73.10.
7-29-18: closed at 74.07. Trade pressures are up. Volumes are bullish. The next target up is 75.41.
8-4-18: Closed at 67.65. Trade pressures are up but turning down. Volumes are now bearish. Earnings miss. At support now.
8-10-18: Closed at 69.01. Trade pressures are down. volumes are bearish. The prior low is support at 65.77.
8-18-18: Closed at 68.63. Trade pressures are down and trending. Volumes are bearish. The prior low is 65.77.
8-26-18: Closed at 73.58. Trade pressures are up. Volumes are bullish. the 25×5 moving average is at 70.70.
9-1-18: Closed at 74.72. Trade pressures are up. Volumes are bullish. Thru the 25×5 and a new long entry is at 75.41.
9-8-18: Closed at 70.81. Trade pressures are up, but rolling over. Volumes are now bearish. 65.77 is support.
9-15-18: Closed at 70.39. Trade pressures are down into the neutral zone. Volumes are bearish. 65.77 is support.
9-23-18: Closed at 66.88. Trade pressures are down. Volumes are neutral. The next target down is 59.05 and the 200 day moving average.
ABIOMED, Inc. (ABMD) returns to the Top 5 list after rebounding nicely in the past month. This is the only medical devices company that provides technologies that replace or assist the pumping function of a failing heart. This is a big deal because heart disease accounts for some 800,000 deaths in the U.S. alone each year. So ABIOMED provides lifesaving services to tens of thousands of patients and their families. There’s strong demand for heart disease treatments, especially ABIOMED’s medical devices.
ABIOMED will announce its third-quarter results towards the end of October. And it’s shaping up to be a strong report. Analysts are expecting earnings of $0.74 per share on $175.7 million in revenue, or 37% annual earnings growth and 32.2% annual sales growth. Then again, ABMD is one of my earnings heavyweights. Last quarter, it posted a whopping 137.8% earnings surprise. Analysts have revised their earnings estimates higher in recent weeks, so I’ll be looking for big things from ABIOMED’s third-quarter report.
ABIOMED also recently lifted its outlook for FY 2018. The company expects revenue between $755 million and $770 million, representing 27% to 30% annual sales growth. Clearly, many people rely upon ABIOMED’s lifesaving innovations, and this translates to strong sales and earnings. Buy this Moderately Aggressive stock up to $452 per share.
SOM Technicals:
3-30-18: Closed at 290.99. Trade pressures are down into the neutral zone. On the 25×5 moving average as support. The next target up is 323.10.
4-7-18: Closed at 286.22. Trade pressures are neutral. Volumes are neutral. the Next target up is 323.10
4-14-18: Closed at 297.00. Trade pressures are up. Volumes are bullish. The next target up is 323.10.
4-21-18: Closed at 305.92. Trade pressures are up. Volumes are bullish. The next target up is 323.10.
4-27-18: Closed at 300.83. Trade pressures are up. Volumes are neutral. The next target up is 323.10.
5-5-18: Closed at 349.28. Trade pressures are up. Volumes are bullish. the next target up is 359.38.
5-11-18: Closed at 372.70. Trade pressures are up. Volumes are bullish. The next target up is 412.00.
5-19-18: Closed at 384.36. Trade pressures are up. Volumes are bullish. The next target up is 412.
5-26-18: Closed at 391.49. Trade pressures are up. Volumes are bullish. the next target up is 412.00.
6-3-18: Closed at 392.25. Trade pressures are up but turning down. Volumes are neutral. The next target up is 412.00.
6-8-18: Closed at 409.77. Trade pressures are up but turning over. Volumes are neutral. Traded to the 412.00 target and now experiencing profit taking.
6-16-18: Closed at 443.58. Trade pressure are up. Volumes are bullish. The next target up is 463.97.
6-22-18: Closed at 427.29. Trade pressures are up but rolling over. Volumes are now bearish. The next target up is 463.97. Support is the 25×5 moving average at 411.26.
6-30-18: Closed at 409.05. Trade pressures are down into the neutral zone. Volumes are bullish to bearish. At the 25×5 moving average support.
7-6-18: Closed at 406.00. Trade pressures are down. Volumes are bearish. Back at the June breakout levels.
7-14-18: Closed at 418.76. Trade pressures are down but rising. Volumes are now bullish. Need to get thru the 433 resistance.
7-20-18: Closed at 423.48. Trade pressures are up. Volumes are bullish. The next target up is 463.97.
7-29-18: Closed at 368.17. Missed on earnings. Trade pressures are up but trending down. Volumes are high but neutral. Support is at 341.85.
8-4-18: Closed at 377.11. Trade pressures are down. Volumes are bearish. In the retracement move back up. The new long entry is at 385.54.
8-10-18: Closed at 377.83. Trade pressures are down but rising. Volumes are bullish. Touched the new long entry.
8-18-18: Closed at 358.82. Trade pressures remain down. Volumes are bearish. The prior low is 344.11.
8-26-18: Closed at 381.03. Trade pressures are up into the neutral zone. Volumes are bullish. At the 25×5 resistance.
9-1-18: Closed at 406.58. Trade pressures are up. Volumes are bearish on Friday. In the new move up, the next target up is 452.59.
9-8-18: Closed at 377.49. Trade pressures are down into the neutral zone. Volumes are bearish. Support at 341.11.
9-15-18: Closed at 395.67. Trade pressures are in the neutral zone . Volumes are bullish. The next target up is 452.59.
9-23-18: Closed at 384.88. Trading pressures are in the neutral zone. Volumes are neutral. Still in uptrend and the next target up is 452.59.
Lululemon Athletica, Inc. (LULU) continues its winning streak on the Top 5 list. Today, the stock closed 13% higher after reporting its second-quarter results.
Over the past two decades, Lululemon has led the athleisure fashion movement. Lululemon has more than 400 stores across four continents. And for workout buffs who are too busy to drive to their nearest store, there are multiple Lululemon e-commerce sites and mobile apps.
Even as it has grown its global footprint and customer base, Lululemon has kept true to its founding values. It differentiates itself by making some of the highest quality and most comfortable workout clothing that money can buy. Meanwhile, it maintains a strong presence in its local communities, offering free workshops and yoga classes in its stores.
Lululemon released its second-quarter results after the closing bell on Thursday. And it was an excellent report. Sales rose 25% year-on-year to $724 million. Analysts expected sales of $667.8 million, so Lululemon posted an 8.4% sales surprise. Over the same period, comparable sales climbed 20%. Lululemon’s comparable sales in Asia grew a stunning 55%. Meanwhile, income from operations nearly doubled year-over-year to $134.2 million. Earnings came in at $0.71 per share. This beat the $0.49 consensus EPS estimate by a whopping 45%.
Pleased with these results, Lululemon lifted its third-quarter outlook. The company now expects earnings to range between $0.65 and $0.67 per share, or between 16.1% and 19.6% annual earnings growth. Net revenue is expected to be between $720 million and $730 million, or between 16.3% and 17.9% annual sales growth. This is well above the Street view of $0.64 EPS on $708.6 million in sales.
LULU shares shot up after its report, and I see plenty of upside potential here. Buy this Moderately Aggressive stock up to $167 per share.
SOM Technicals:
7-30-18: Closed at 120.00. Trade pressures are down. Volumes are bearish. Consolidating at the prior 119.00 target level.
8-4-18: Closed at 126.08. Trade pressures are rising into the neutral zone. Volumes are bullish. Still in the consolidation zone. Need a close above 130.05 to start a new move up.
8-10-18: Closed at 130.52. Trade pressures are up. Volumes are bullish. The next target up is 150.12.
8-18-18: Closed at 130.19. Trade pressures are up. Volumes are neutral. One of the few with an upward bias in August.
8-26-18: Closed at 138.76. Trade pressures are up. Volumes are bullish. The next target up is 150.12.
9-1-18: Closed at 154.93. Trade pressures are up. Volumes are neutral. Big earnings surprise puts LULU above the 150.12 target. The next target up is 170.18.
9-8-18: Closed at 150.82. Trade pressures are up. Volumes are neutral. The next target up is 170.18.
9-15-18: Closed at 153.71. Trade pressures are up and trending. Volumes are neutral. The next target up is 170.18.
9-23-18: Closed at 156.99. Trade pressures are up and trending. Volumes are bullish. The next target up is 170.18.
Ecopetrol SA (EC) is another familiar name on the Top 5 list. Thanks to a series of strategic acquisitions and oilfield discoveries, Ecopetrol is Colombia’s largest oil company and Latin America’s fourth-largest oil company. With operations in Brazil, Colombia, Peru and the U.S. Gulf Coast, Ecopetrol accounts for 60% of oil production in Colombia.
Last quarter, Ecopetrol achieved “significant operational and financial achievements” in the second quarter. Part of the company’s success was due to its highest production levels in seven quarters. Ecopetrol produced 721,000 barrels of petroleum equivalent per day during the second quarter.
Ecopetrol reported that second-quarter sales increased 29.2% year-over-year to 16.99 trillion Colombian pesos. Net income surged 169.7% year-over-year to 3.52 trillion Colombian pesos (or $1.17 billion). In U.S. dollar terms, earnings came in at $0.60 per ADS. This beat the $0.57 per ADS consensus estimate by 5.3%.
Looking ahead, the company is on track to meet its 2018 production goal of 715,000 to 725,000 barrels per day. After this announcement, analysts scrambled to revise their earnings estimates higher. For the current quarter, the consensus estimate calls for 190.9% earnings growth and 35.9% sales growth.
Clearly, the sky is the limit for Ecopetrol. Buy this Moderately Aggressive stock up to $25 per share.
SOM Technicals:
6-30-18: Closed at 20.55. Trade pressures are rising into the neutral zone. Volumes are bullish. Meeting the 25×5 moving average resistance at the 21.03 level.
7-6-18: Closed at 20.49. Trade pressures are up into the neutral zone. Volumes are now bullish. A close above 20.44 would signal higher.
7-14-18: Closed at 20.72. Trade pressures are in the neutral zone. Volumes are mixed neutral and bullish. The next target up is 23.28.
7-20-18: Closed at 20.85. Trade pressures are in the neutral zone. Volumes are now bullish. The next target up is 23.28.
7-29-18: Closed at 20.68. Trade pressures are still in the neutral zone. Volumes are bearish. Consolidating after a new buy signal.
8-4-18: Closed at 21.32. Trade pressures are up. Volumes are now bearish. In the move up off the June lows. The next target up is 23.28.
8-10-18: Closed at 20.90. Trade pressures are down into the neutral zone. Volumes are bearish. Now sitting on support.
8-18-18: Closed at 20.49. Trade pressures are down. Volumes are bearish.The prior low is 18.68.
8-26-18: Closed at 22.10. Trade pressures are up. Volumes are neutral. The next target up is 23.28.
9-1-18: Closed at 22.60. Trade pressures are up. Volumes are bullish. The next target up is 23.28.
9-8-18: Closed at 22.32. Trade pressures are up but turning down. Volumes are mixed, bearish to bullish. The next target up is 23.28.
9-15-18: Closed at 25.14. Trade pressures are up. Volumes are neutral. The next target up is 26.12.
9-23-18: Closed at 24.78. Trade pressures are up. Volumes are neutral. Consolidating at the 26.12 target.
GrubHub Inc. (GRUB) joins the Top 5 list after just one month on the Buy List. And it’s easy to see why—the stock has surged an impressive 31% since I added it! The catalyst was a strong second-quarter earnings report, and I see further upside potential here.
GrubHub is revolutionizing the food delivery industry, one order at a time. The company operates GrubHub, Seamless and Eat 24, online ordering platforms that connect hungry customers in 1,600 cities with 80,000 local restaurants. The company also operates two online menu websites—Allmenus.com and MenuPages.com. Together, these websites are helping to make paper takeout menus obsolete.
These easy-to-use apps are becoming very popular. Last quarter, active diners surgedi 72% year-over-year to 15.1 million. Of those, nearly a half a million users were Daily Active Grubs, which meant they placed orders every single day. Given this phenomenal growth rate, it’s no surprise that GrubHub is entering dozens of new markets every quarter.
So I’m looking forward to GrubHub’s third-quarter earnings report, which is slated for the end of October. The Street view is for earnings of $0.41 per share on $238.1 million in revenue, or 46% earnings growth and 46% sales growth. GrubHub is also known for beating estimates, so I expect that it’ll do even better.
In the meantime, buy this Moderately Aggressive stock up to $162 per share.
SOM Technicals:
9-1-18: Closed at 144.11. Trade pressures are up. Volumes are bullish. In the move up from the 105.30 entry. The next target up is 152.41.
9-8-18: Closed at 141.92. Trade pressures are up but turning down. Volumes are bullish. The next target up is 152.41.
9-15-18: Closed at 146.11. Trade pressures are up. Volumes are bullish. The next target up is 152.41.
9-23-18: Closed at 135.75. Trade pressures are down. Volumes are bearish. The next target down is 128.90.