The following is provided by Navellier with technical comment from South Ocean Management – pls do your own due diligence.
(For this 2020 year, SOM will track only the Top 5 Hi-Growth Investments.)
Navellier says,
High-Growth Investments
Dexcom, Inc.
Dexcom, Inc. (DXCM) is a medical specialties company that developed a continuous glucose monitoring (CGM) device. Its device enables diabetics to test their blood glucose levels without pricking their finger. Despite this innovative technology, Dexcom has been flying under the radar—until recently. On May 12, Dexcom replaced Allergan in the S&P 500, giving it a lot more visibility with institutional investors.
Institutional investors are clearly excited about Dexcom’s fundamentals and prospects going forward. The stock has rallied more than 20% in the past four weeks alone. Interestingly, DXCM is actually up 85% year-to-date, which makes it the best-performing stock in the S&P 500 right now.
The reality is that Dexcom has seen an increase in demand for its CGM devices amidst the global coronavirus pandemic, and that was apparent in its recent quarterly results. During the first quarter, revenue jumped 44% year-over-year to $405.1 million. First-quarter earnings surged to $41.4 million, or $0.44 per share, up from a loss in the same quarter a year ago. Analysts were expecting earnings of $0.14 per share, so Dexcom posted a whopping 214.3% earnings surprise.
Looking forward, Dexcom anticipates that even more patients will benefit from its virtual diabetes care and real-time monitoring. The company expects more patients will switch to telemedicine in the wake of the coronavirus, which will continue to add to Dexcom’s top and bottom lines. DXCM is an Aggressive buy below $465.
SOM Technicals:
4-25-20: Closed at 332.44. Trade pressures are up but declining. Volumes are bullish. New highs next target up is 350.00.
5-2-20: Closed at 341.52. Trade pressures are down into,the neutral zone. Volumes remain bullish. The pull back could go to 304 and still be in the uptrend.
5-8-20: Closed at 405.50. Trade pressures are up. Volumes are bullish; some selling into this big rally.
5-15-20: Closed at 417.13. Trade pressures are up but declining. Volumes are neutral. support is at 381.00.
5-22-20: Closed at 405.25. Trade pressures are down. Volumes are neutral. In a retracement move down to test the 25×5 MA support at 370.
5-30-20: Closed at 378.31. Trade pressures are down but rising. Volumes are neutral. Bounced off the 25×5 support level at 370.
6-6-20: Closed at 364.49. Trade pressures are down. Volumes are bullish. The next target down is 300.
6-12-20: Closed at 370.23. Trade pressures are down but rising. Volumes are bullish. In the down trend, the next target down is 310.00.
6-20-20: Closed at 409.36. Trade pressures are up. Volumes are bullish. In a new up trend. the next target up is 454.00.
Fortinet, Inc.
Fortinet, Inc. (FTNT) recently achieved a significant milestone. The company’s FortiProxy secure web gateway solution, which protects against malicious websites, viruses and traffic, received Department of Defense Information Network (DoDIN) Approved Products List certification. In other words, Fortinet products can now be used by Department of Defense agencies.
The Department of Defense joins more than 450,000 customers that rely on Fortinet to protect their businesses from cyberthreats. The company has shipped more than 5.6 million units since its founding in 2000, which has supported significant top and bottom line growth over the years.
In the first quarter, Fortinet reported that revenue increased 22% year-over-year to $576.9 million. Product revenue accounted for $192.3 million, and service revenue totaled $384.6 million. The company also recorded total billions of $667.8 million, up from $551.6 million in the first quarter of 2019.
First-quarter earnings grew 29.2% year-over-year to $104.4 million, while earnings per share rose 30.4% year-over-year to $0.60. The consensus estimate called for earnings of $0.51 per share on $556.69 million in revenue. So, Fortinet posted a 17.6% earnings surprise and a 3.6% revenue surprise. FTNT is a Moderately Aggressive buy below $159.
SOM Technicals:
5-22-20:Closed at 142.64. Trade pressures are down into the neutral zone. Volumes are bullish. In the move up but the next short entry is 136.78.
5-30-20: Closed at 139.20. Trade pressures are up. Volumes are bearish. In the new move down.
6-6-20: Closed at 140.46. Trade pressures are down. Volumes are now neutral. The next target down is the 25×5 MA at 133.00.
6-12-20: Closed at 130.34. Trade pressures are down. Volumes are bearish. Next target down is 117.00.
6-20-20: Closed at 136.85. Trade pressures are down into the neutral zone. Volumes are bearish. Support is at 120.00.
NVIDIA Corporation
NVIDIA Corporation (NVDA) develops graphic processing units (GPUs) that are used in video games, professional visualization, data center and automotive applications. The company has been in the computer graphics business for more than two decades—and it’s been one of my favorite stocks to own in the space.
In fact, long-time Growth Investor members probably recall that we sold NVIDIA back in January 2019 for a more than 270% gain. We bought the stock back in May 2019 to further take advantage of the company’s efforts in the artificial intelligence space, as it’s at the forefront of helping to develop autonomous vehicles. That turned out to be a very timely decision; NVDA has more than doubled for us in the past year.
The reality is that NVIDIA still has stunning earnings and sales. In fact, on Thursday afternoon, the company released results for its first quarter in fiscal year 2020. The company reported earnings of $1.80 per share on $3.08 billion in revenue, or 105% annual earnings growth and 39% annual revenue growth. The consensus estimate called for earnings of $1.68 per share and revenue of $2.98 billion, so NVIDIA posted a 7.1% earnings surprise and slight revenue surprise.
NVIDIA also noted that it completed its acquisition of Mellanox Technologies Ltd. on April 27. The deal was valued at $7.0 billion, and will further add to the company’s top line. For the second quarter, which takes into account the recent acquisition, NVIDIA expects revenue to be about $3.65 billion. That’s nicely higher than analysts’ current expectations for $3.15 billion. NVDA is a Moderately Aggressive buy below $402.
SOM Technicals:
5-22-20: Closed at 361.05. Trade pressures are up. Volumes are bullish. The next target up is 364.40.
5-30-20: Closed at 353.67. Trade pressures are rising in to the neutral zone. Volumes are bearish. 333 is a support level.
6-6-20: Closed at 356.80. Trade pressure are up. Volumes are bullish. The next target up is 364.
6-12-20: Closed at 357.30. Trade pressures are down. Volumes are neutral. The next target down is 332.00.
6-20-20: Closed at 370.45. Trade pressures are up. volumes are bullish. At the 364 target: consolidating.
ResMed, Inc.
ResMed, Inc. (RMD) was added to the High-Growth Investments Buy List in the March Monthly Issue, just ahead of the coronavirus pandemic. The stock turned out to be a very fortuitous addition to the Buy List. The reality is that ResMed provides CPAP masks, machines and other life support ventilators for in-home use, so its products have been in top demand in recent months.
In fact, in response to the coronavirus pandemic, ResMed amped up its ventilator production. The company produced more than 52,000 non-invasive ventilators, which represented a 300% year-over-year increase. ResMed also recently introduced cloud-based, remote monitoring software to help doctors keep an eye on their patients who typically need regular checkups.
So, it’s not too surprising that ResMed achieved stunning earnings and sales results for its third quarter in fiscal year 2020. Third-quarter revenue grew 16% year-over-year to $769.5 million, and earnings increased 44.9% year-over-year to $1.29 per share. That exceeded analysts’ expectations for earnings of $1.04 per share and revenue of $722.52 million.
I should add that ResMed continues to reward its shareholders. The company will pay a quarterly dividend of $0.39 per share on June 18. All shareholders of record on May 14 will receive the dividend. The stock has a 1% dividend yield. RMD is a Conservative buy below $169.
SOM Technicals:
3-27-20: Closed at 141.95. Trade pressures are up. Volumes are bullish. In the new move up from the 129.46 long entry price.
4-4-20: Closed at 152.97. Trade pressures are up into the neutral zone. Volumes are bullish. The next target up is 1182.81.
4-11-20: Closed at 152.97. Trade pressures are up into the neutral zone. Volumes are bullish. The next target up is 182.81.
4-17-20: Closed at 165.16. Trade pressures are up. Volumes are bullish. The next target up is the 177.99 prior high.
4-25-20: Closed at 161.90. Trade pressures are down but rising. Volumes are now neutral. At the upside 62% target. Expect consolidation.
5-2-20: Closed at 159.07. Trade pressures are up. Volumes are bearish. At the 62% target and in consolidation.
5-8-20: Closed at 162.75. Trade pressures are up. Volumes are bullish. In consolidation at the 162 target level.
5-15-20: Closed at 164.12. Trade pressures are down but rising. Volumes are bullish. Consolidating at the 162 target level. The next target up is 180.00.
5-22-20: Closed at 161.35. Trade pressures are down but rising. Volumes are bearish. In consolidation at the 162 level. A trade below 155 would signal lower.
5-3–20: Closed at 160.82. Trade pressures are up. Volumes are neutral. In a move down with the next target at 129.53.
6-6-20: Closed at 160.84. Trade pressures are up. Volumes are bearish. Support is the 200 Day MA at 151.00.
6-12-20: Closed at 160.69. Trade pressures are down but rising. Volumes are bearish. The 200 day MA is at 151.00.
6-20-20: Closed at 172.72. Trade pressures are up. Volumes are bullish. Testing the prior high at 178.00.
Vipshop Holdings Ltd.
Vipshop Holdings Ltd. (VIPS) is an online discount retailer of consumer goods in China. The company offers brand-name products at bargain prices, and its discount model has attracted many loyal Chinese customers over the past 12 years. At the end of fiscal year 2019, Vipshop had 69 million active users.
Adding to Vipshop’s popularity is that fellow ecommerce companies Tencent (TCEHY) and JD.com (JD) purchased stakes in the company in 2017. This investment has funneled even more Chinese consumers to Vipshop’s online marketplace.
Vipshop Holdings is scheduled to announce first-quarter results before the stock market opens on Wednesday, May 27. The analyst community is looking for earnings of $0.11 per share and revenue of $2.54 billion, which compares to earnings of $0.17 per share and revenue of $2.99 billion in the first quarter of 2019. VIPS has posted a positive earnings surprise in each of the last four quarters, and I’m expecting a repeat performance for the first quarter. VIPS is an Aggressive buy below $17.
SOM Technicals:
4-25-20: Closed at 16.09. Trade pressures are down. Volumes are bearish. Support at the 25×5 MA at 16.00.
5-2-20: Closed at 15.20. Trade pressures are down. Volumes are bearish. In a new move down. The next target down is 11.53.
5-8-20. Closed at 17.18. Trade pressures are down but rising. Volumes are bullish. Ripped higher at the close. Need a close above 17.25 to change the trend.
5-15-20: Closed at 16.85. Trade pressures are down, but rising. Volumes are bullish. The next target up is 18.95.
5-22-20: Closed at 14.38. Trade pressures are down. Volumes are bearish. Hit 16 and turned lower. A close below 14.16 would signal lower.
5-30-20: Closed at 17.34. Trade pressures are up. Volumes are bullish. Resistance at 18.00.
6-6-20: Closed at 17.97. Trade pressures are up and extended. Volumes are bullish. Support is the 25×5 MA at 16.35.
6-12-20: Closed at 17.72. Trade pressures are yup into the neutral zone. Volumes are bullish. In consolidation between 14 and 18. 200 day MA support at 13.50.
6-20-20: Closed at 21.10. Trade pressures are up. Volumes are bullish. At the 20.20 target level: expect consolidation.