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Navellier Top Stocks for July
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.)
https://navelliergrowth.investorplace.com/
Navellier says,
High-Growth Investments
The Clorox Corporation
The Clorox Corporation (CLX) was a new addition to the High-Growth Investments Buy List in the June Monthly Issue. Clorox has provided disinfectants and cleaning products to individuals and businesses around the world for more than 100 years. And its products have been wildly popular during the global coronavirus pandemic, as individuals and businesses seek to disinfect and cut down on the spread of the deadly virus.
In fact, Clorox experienced a 32% jump in sales in its cleaning division in the first quarter. Total first-quarter sales jumped 15% year-over-year to $1.78 billion, and earnings soared 31% year-over-year to $1.89. Considering that stores couldn’t keep Clorox bleach, wipes and other disinfecting products on the shelves, the company’s second-quarter results will likely be even stronger.
The analyst community has steadily increased their earnings forecasts over the past three months, now expecting earnings to grow 3.2% year-over-year to $1.94 per share. That’s up from previous forecasts for earnings of $1.79 per share. Second-quarter sales are expected to increase 13.3% year-over-year to $1.84 billion. CLX is a Conservative buy below $231.
SOM Technicals:
6-26-20: Closed at 215.30. Trade pressures are up into the neutral zone. Volumes are neutral. A close below 13.00 would signal lower.
7-04-20: Closed at 222.16. Trade pressures are up. Volumes are bullish. The next target up is 241.00.
7-10-20: Closed at 229.76. Trade pressures are up. Volumes are bullish. The next target up is 243.00.
Dexcom, Inc.
Dexcom, Inc. (DXCM) is making its third-straight appearance on the Top Stocks list this month. The reason why is simple: The company continues to have stunning forecasted earnings and sales growth—and analysts have revised their earnings forecasts higher. It’s clearly the type of stock that we want to own in the current market environment.
Dexcom is in a very lucrative medical corner of the market. The company provides continuous glucose monitoring (CGM) that enables a diabetic to test their blood glucose levels without pricking their finger. Instead, the diabetic wears a sensor and transmitter that reads glucose levels and provides alerts to a smart phone if levels fall too low or soar too high.
The monitoring system has been particularly popular during the pandemic, as it allowed doctors to view and monitor a patient’s glucose levels without a physical visit. As a result, second-quarter earnings are forecast to surge 325% year-over-year and sales are expected to grow 23.4% year-over-year.
Interestingly, Dexcom has a history of posting big earnings surprises. It has achieved a 298.7% average earnings surprise in the past four quarters. And it looks like another quarterly earnings surprise may be in the offing: Analysts have upped earnings forecasts by 13.3% in the past month alone. DXCM is an Aggressive buy below $457.
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.
6-26-20: Closed at 383.06. Trade pressures are down hard. Volumes are bearish. A close below 374.00 would start anew downtrend.
7-4-20: Closed at 407.35. Trade pressures are up. Volumes are bullish. The next target up is 428.59.
7-10-20: Closed at 439.64. Trade pressures are up. Volumes are bullish. The next target up is 459.00.
DocuSign, Inc.
DocuSign, Inc. (DOCU) was also added to the High-Growth Investments Buy List in June ahead of the company’s first-quarter earnings report. You may recall that DocuSign developed a cloud-based platform that enables companies to create, upload and send agreements to all stakeholders for electronic signatures. The company has more than 500,000 customers and millions of users in more than 180 countries.
Considering the company’s first-quarter results, DocuSign’s services were in hot demand during the global pandemic. First-quarter revenue soared 39% year-over-year to $297 million, exceeding forecasts for $281.12 million. First-quarter earnings per share soared 71.4% year-over-year to $0.12, which topped analysts’ forecasts for $0.10 per share by 20%.
And the outlook going forward is even more impressive. For the second quarter, the analyst community expects earnings per share to surge 700% year-over-year to $0.08 per share. That’s up from $0.01 per share in the same quarter a year ago. Second-quarter revenue is forecast to come in around $318.48 million, which is the middle of DocuSign’s expected range of $316 million to $320 million. DOCU is a Moderately Aggressive buy below $198.
SOM Technicals:
6-26-20: Closed at 177.58. Trade pressures are up. Volumes are bullish. This spike up is not likel;y 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.
NVIDIA Corporation
As we discussed in the June 24 Special Market Podcast, the NASDAQ 100 is driving a lot of stocks higher right now. One of the quality stocks in the NASDAQ 100 is our own NVIDIA Corporation (NVDA). The company is a leading computer graphics company, and is most well-known for inventing graphic processing units (GPUs).
NVIDIA has been at the forefront of autonomous vehicles, and this week, the company revealed that it is partnering with Mercedes. The two companies inked an agreement to develop an automated driving system, which NVIDIA expects to be available in 2024. The new automated driving system will then be placed in Mercedes-Benz’s next-generation vehicles.
Even before this deal was signed, NVIDIA’s fundamentals were exceptional. But look for its autonomous driving system to add to the company’s top and bottom lines in the future.
For the second quarter, the consensus estimate calls for earnings of $1.97 per share, or 58.9% annual earnings growth. Analysts have upped earnings forecasts by 10% in the past month, so a fifth-straight quarterly earnings surprise is likely. Sales are expected to come in at $3.65 billion. NVDA is a Conservative buy below $396.
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.
6-26-20: Closed at 366.20. Trade pressures are down. Volumes are bearish. A close below 351.00 would signal lower.
7-4-20: Closed at 384.59. Trade pressures are up. Volumes are bullish. The next target up is 406.07.
7-10-20: Closed at 419.17. Trade pressures are up. Volumes are bearish. a close blow 396 would signal lower.
Vipshop Holdings, Ltd.
Vipshop Holdings, Ltd. (VIPS) has been on a bit of a tear since we added it to the High-Growth Investments Buy List in late March. The stock is up 38% for us so far. The reality is that Vipshop Holdings profited from an increase in e-commerce sales during the coronavirus pandemic, and it remains well-positioned as many Chinese consumers continue to shop online.
Based in Guangzhou, China, Vipshop Holdings offers brand-name goods at discount prices online. The company has been a pioneer in the ecommerce market in China, and it attracted 29.6 million active customers during its first quarter in fiscal year 2020.
The company noted that first-quarter orders increased 4% year-over-year to 121.7 million. Total revenue came in at $2.7 billion, while earnings jumped 20.8% year-over-year. Adjusted earnings per ADS came in at $0.20, which walloped estimates for $0.11 per share by 81.8%. The company has posted a positive earnings surprise in each of the last four quarters—and if history repeats, the second quarter will be another strong one for the company. VIPS is a Moderately Aggressive buy below $22.
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.
6-26-20: Closed at 19.62. Trade pressures are down. Volumes are bearish. In a retracement down. The next target down is 18.51.
7-4-20: Closed at 20.48. Trade pressures are up. Volumes are now neutral. The next target up is 22.89.
7-10-20: Closed at 21.85. Trade pressures are up but reversing. Volumes are bullish. A close below 21.68 would signal lower.
US$$
#usdollarfutures #ustreasurybondfutures
USD_ DXU20
Weekly – Holding the support line of the uptrend. Trade pressures are down but rising. Volumes are bearish.
Daily- In the new move down after the close below 96.51. Trade pressures are down but rising. Volumes are bearish.
The next target down is 95.57 , the prior low.
A close above 97 would signal higher.
US30YR T-BONDS_ USU20
Weekly – Remains in the uptrend. Trade pressures are up. Volumes are bullish.
Daily – In the channel between 180-170. Trade pressures are up and extended. Volumes are now bearish.
The next target down is 179-03.
A close above 180-17 would signal higher.
Oil & Gas
#crudeoilfutures #naturalgasfutures
CRUDE_ CLQ20
Weekly – Flattened out at the 42.00 target. Trade pressures are up. Volumes are bullish.
Daily – Flat. Moving sideways while the overbought is worked off. Trade pressures are down and over sold. Volumes are bullish.
The next target up is 44.07.
A close below 33.95 would signal lower.
NAT GAS_ NGQ20
Weekly – Still in the weekly move down. Trade pressures are rising into the neutral zone. Volumes are neutral.
Daily – Flat. Stopped out of the long trade. Should have taken the 1.86 target as profit since the weekly is still in the downtrend. Trade pressures are down. Volumes are bullish.
The next target up is the same 1.86 target.
In a retracement down. Look for a trade pressure reversal to reenter the long trade. That will match up with the weekly trade pressures.
stops at the 1.51 lows.
Metals
#copperfutures #goldfutures #silverfutures
COPPER_ HGU20
Weekly – Three weeks into the weekly uptrend. Trade pressures are up. Volumea are bullish.
Daily – Flat. In the move up off the 2.72 new long entry at 2.72. Trade pressures are up. Volu mes are bullish.
The next target up is 2.91.
A close below 2.70 would signal lower.
GOLD_ GCQ20
Weekly – Testing the weekly resistance lines at 1801. Trade pressures are up. Volumes are bullish.
Daily – Flat. Beginning a retracement. Trade pressures are up but reversing. Volumes are bearish to neutral.
The next target up is 1836.
A close below 1794 is the new short entry.
SILVER_ SIU20
Weekly – Remains in the uptrend. Trade pressures are up. Volumes are bullish.
Daily – Flat. Met the 161% upside target. Trade pressures are up. volumes are bullish.
The next target up is 19.50.
A close below 17.68 would signal lower.
S&P 500 Futures
#emini #spfutures #SP500 #ES
Market Pressures_
Copper was within a point to the upside 2.78 target, now retracing. Gold is also retracing. Silver is showing some signs of turning down.
Crude oil could start a new move up. Natural Gas has triggered a new long entry, but very hard to trade.
The US 30 Year Treasury is in a move up.
The US Dollar futures are in a downtrend and moving sideways.
________________________
S&P 500 Futures_
Monthly – The monthly bar closed the week higher. Trade pressures are up. Volumes closed the month of June as neutral. The next target up is 3375. A close below 2797 would confirm any weekly move lower.
Weekly – Still in the move up from the April 2430 long entry. Trade pressures are up but diverging. Volumes remain bullish. The next target up is 3230. A close below 2934 would confirm any daily move lower.
Daily – in the move up from the 2937 May long entry and consolidating at the 61% target of 3142. Trade pressures are up but reversing. Volumes are bullish. The next target up is 3235. A close below 2917 would signal lower.
Watch the trade pressures. If they cycle lower and then back up without triggering a short then a new long is likely.
_______________________
Navellier Top 5 Stocks – This Top 5 model portfolio begins the year at $100,000. Only the Top 5 Growth stocks will be tracked this 2020 year.
The Top 5 portfolio stocks sold off with the market during this last week. The portfolio stocks are back up 3% for the week and valued at approximately $101,000, now up 1% for the YTD. The 13% gains from these first two months of 2020 evaporated, but so have the down 32% lows of March. The portfolio fundamentals should become more important as the market narrows.
[The author may have long or short positions in any of the securities mentioned.]
US$$
#usdollarfutures #ustreasurybondfutures
USD_ DXU20
Weekly – Still testing the weekly support levels. Trade pressures are down bur have reversed. Volumes are now neutral.
Daily – In the downtrend. Trade pressures are up in to the neutral zone. Volumes are neutral.
A close above 98.02 would signal a new uptrend. The next short entry is a close below 96.51.
US 30YR T-BONDS_ USU20
Weekly – Tracking sideways. Trade pressures are up. Volumes are bullish.
Daily – Flat. In the move up from the 175.00 long entry in June. Trade pressures are up into the neutral zone. Volumes are bullish.
The next target up is 180-25.
A close below the 25×5 at 176-28 would signal lower.
Oil & Gas
#crudeoilfutures #naturalgasfutures
CRUDE_ CLQ20
Weekly – Trending upward ans testing the downtrend resistance line. Trade pressures are up. Volumes are bullish.
Daily – Flat. In the move up after breaking out from the upper median line. Trade pressures are up but reversing. Volumes are bullish.
A long entry is indicated, but wait for the hourly trade pressures to cycle down then up again creating the back test. The next target up is 44.07.
A close 39.60 would signal lower.
NAT GAS_ NGQ20
Weekly – Still in the long downtrend. Trade pressures are down but starting to reverse. Volumes are now neutral from the previous 10 weeks of bearish volumes.
Daily – Long. The 1.69 trigger has created a new long entry and closed at 1.75. Trade pressures are up. Volumes are neutral.
Buy the 1.75 limit. The next target up is 1.86.
A close below 1.70 would signal a failure, and lower.
Use this 1.70 has the stop.
[7-6-20: Long @ 1.75. Stops at 1.75 now.]
[7-10-20: stopped out at the breakeven, 1.75.]
Metals
#copperfutures #goldfutures #silverfutures
COPPER_ HGU20
Weekly – In the move up after the break into a new uptrend. Trade pressure are up. Volumes are bullish.
Daily – Flat. In the move up from the April long entry. Trade pressures are up but reversing. Volumes are bullish.
The next target up is the 2.78 162% target.
In a retracement now. A close below 2.59 would signal lower.
GOLD_ GCQ20
Weekly – Still testing the downtrend resistances. Trade pressures are up. Volumes are bullish.
Daily – Flat. After the 1807 high now in retracement. Trade pressures are down into the neutral zone.
The next target up is 1836.
A close below 1772 would signal lower.
SILVER_ SIU20
Weekly – six weeks into the new uptrend. Trade pressures are up but diverging. Volumes are bullish.
Daily – Flat. In the move up but retracing. Trade pressures are down. Volumes are bearish.
The next target up is 19.10.
A close below 17.26 would signal lower.
S&P 500 Futures
#emini #spfutures #SP500 #ES
Market Pressures_
Copper continues the move up after a retracement. Gold is in a new long. Silver is near the end of it’s move.
Crude is in a small retracement. Watch for a break of the 25×5 MA. Nat Gas is steadily declining.
The US 30 year Treasuries are in a new move up.
The US Dollar is retracing after the move down to the target. Watch for new bullish volumes.
______________________
S&P 500 Futures_
Monthly – The monthly has closed this week below the prior month’s close. Trade pressures are up in the neutral zone. Volumes closed the month of May as neutral. The next target up is the prior high at 3375. A close below 2803 would confirm any weekly move lower.
Weekly – Remains in the move up from the April 2430 long entry. Trade pressures are up. Volumes remain bullish. The next target up is 3230. A close below 2934 would confirm any daily move lower.
Daily – In the move up from the 2945 long entry. Met the 61.8 % target and began the retracement which we are now in. Trade pressures are down. Volumes are bearish.
The next target down is 2972.
The 200 day MA is at 3007 and is potential support. More likely is a back-test up to the 25×5 MA at 3050 levels and then down again.
Apple is 3.5% of the S&P 500; good to watch it’s movement.
_______________________
Navellier Top 5 Stocks – This Top 5 model portfolio begins the year at $100,000. Only the Top 5 Growth stocks will be tracked this 2020 year.
The Top 5 portfolio stocks sold off with the market during this last week. The portfolio stocks are down 2% for the week and valued at approximately $98,000, now down 2% for the YTD. The 13% gains from these first two months of 2020 evaporated, but so have the down 32% lows of March. The portfolio fundamentals should become more important as the market narrows.
As of this next Monday, Fortinet (FTNT) and ResMed (RMD) will be replaced with Clorox (CLX) and DocuSign (DOCU) at the opening prices.
[The author may have long or short positions in any of the securities mentioned.]
US$$
#usdollarfutures #ustreasurybondfutures
USD_ DXU20
Weekly – Riding the uptrend support line at 97. Trade pressures are down but reversing. Volumes are now neutral.
Daily – has completed the move down to the 95.38 target; stopping just shy at 95.57 and in a retracement up. Trade pressures are up. Volumes are mixed bearish to neutral.
So, No bullish volume just yet and now near the 25×5 MA at 97.50 and the 200 day MA at 98.00; all of these should act as resistance. A close below 96.50 would likely continue the move down to the 95.20 level.
A close above 97.92 would signal a new move up.
US 30YR T-BONDS_ USU20
Weekly – After a three week test of the uptrend support line at 171, price has move up on bullish volume/. Trade pressures are up. Volumes are bullish.
Daily – Long . In the move up from the June 11th new long entry at 175-00. Trade pressures are up Volumes are bullish.
The next target up is 180-29.
A close below 178-11 would signal lower.
Set the stops at 178-11
[6-29-20: Raise the stops to breakeven at 175.00.]
[6-30-20: Raise stops to to 176-27, the 25×5 MA.] [6-30-20: sell at the market ~ 178-13.]