High-Growth Investments

Novo Nordisk AS

Novo Nordisk AS (NVO) has exhibited tremendous relative strength in August, as the stock is up about 18% in the past four weeks. You may recall from our earlier discussion that Novo Nordisk is a biotech company focused on developing treatments to combat diabetes, obesity and other chronic illnesses, as well as rare blood and rare endocrine diseases.

Most recently, Novo Nordisk has benefited immensely from robust demand for its weight-loss and diabetes drugs, Wegovy and Ozempic. During the first six months of 2023, total sales rose 29% year-over-year and earnings increased 43% year-over-year. Given the positive first half, the company increased its outlook for fiscal year 2023.

Novo Nordisk now expects full-year 2023 earnings growth between 31% and 37%, up from previous forecasts for 24% to 30% annual earnings growth. Full-year revenue growth is now anticipated to be between 27% and 33%, compared to prior estimates for 28% to 34% annual revenue growth. As a result, analysts have increased third-quarter and full-year earnings estimates over the past three months. NVO is a Conservative buy below $200.

SOM Technicals: 

2-24-23: Closed at 141.60. Trade pressures are down. Volumes are now neutral. The next target down is 188.22.

3-4-23: Closed at 144.90. Trade pressures are up. Volumes are bullish. The next target up is 149.62.

3-11-23: Closed at 141.29. Trade pressures are down but rising. Volumes are bearish. The next target down  is 134.71.

3-17-23: Closed at 139.44. Trade pressures are down but rising. Volumes are neutral. The next target down is 134.74.

3-24-23: Closed at 152.76. Trade pressures are up. Volumes are bullish. The next target up is 159.89.

3-31-23: Closed at 159.14. Trade pressures are up. Volumes are bullish. The next target up is 177.85.

4-14-23: Closed at 168.60. Trade pressures are up. Volumes are bullish. The next target up is 177.65.

4-22-23: Closed at 172.65. Trade pressures are rising into the neutral zone. Volumes are bullish. The next target up is 177.65.

4-28-23: Closed at 167.09. Trade pressures are up. Volumes are now neutral. The next target down is 159.13.

5-7-23: Closed at 163.24. Trade pressures are down but rising. Volumes are neutral. The next target up is 167.92.

5-13-23: Closed at 171.27. Trade pressures are up. Volumes are bullish. The next target up is 177.65.

5-20-23: Closed at 170.54. Trade pressures are up. Volumes are bullish. The next target up is 172.97.

5-27-23: Closed at 162.23. Trade pressures are down but rising. Volumes are bearish. The next target down is 159.13.

6-3-23: Closed at 157.14. Trade pressures are down. Volumes are now bullish. The next target down is 150.57.

6-10-23: Closed at 158.05. Trade pressures are down into the  neutral zone. Volumes are neutral. The next target down is 153.05.

6-20-23: Closed at 159.698. Trade pressures are down. Volumes are bullish. The next target down is 156.49.

6-24-23: Closed at 159.07. Trade pressures are down. Volumes are bearish. The next target down is 156.49.

8-25-23: Closed at 186.43. Trade pressures are down into the neutral zone. Volumes are neutral. The next target down is 178.22.

9-1-23: Closed at 189.31. Trade pressures are down but turning  up. Volumes are bullish. The next target up is 191.19, the prior high.

9-8-23: Closed at 195.40. Trade pressures are up. Volumes are bullish. The next target up is the 197.54 prior high.

9-16-23: Closed at 190.43. Trade pressures are down/ Volumes are bearish. Made the 201.76 high, but now in pullback mode. The next target down is 188.26.

9-23-23: Closed at 91.30. 2:1 stock split on September 20. Trade pressures are down into the neutral zone. volumes are bearish. The next target down is 89.95.

 

Quanta Services, Inc.

Quanta Services, Inc. (PWR) offers infrastructure solutions for electric power, wireless and fiber optic installation, underground utilities and pipelines. Simply put, Quanta Services provides “the infrastructure that powers your world,” and it has benefited from the shift to 5G.

In fact, thanks to strong demand for its services, the company achieved record second-quarter results.

For the second quarter, Quanta Services reported adjusted earnings of $1.65 per share and revenue of $5.05 billion, which compared to adjusted earnings of $1.55 per share and revenue of $4.23 billion in the same quarter a year ago. Analysts expected adjusted earnings of $1.63 per share on revenue of $4.71 billion.

Given the positive quarterly results, Quanta Services upped its outlook for fiscal year 2023. Full-year revenue is now forecast to be between $19.6 billion and $20.0 billion and adjusted earnings per share are expected to be between $6.90 and $7.30. In turn, analysts have increased earnings estimates for upcoming quarters and full year 2023. PWR is a Conservative buy below $221.

SOM Technicals:

7-30-22: Closed at 138.73. Trade pressures are up. but showing divergence. Volumes are bearish. The  next target down is 133.65.

8-6-22: Closed at 136.91. Trade pressures are down but rising. Volumes are bullish. The next target up is 138.44.

8-12-22: Closed at 143.46. Trade pressures are up. Volumes are bullish. The next target up is 145.03.

8-21-22: Closed at 142.02. Trade pressures are down into the neutral zone. Volumes are now neutral. The next target down is 138.78.

1-29-23: Closed at 150.00. Trade pressures are up. Volumes are bullish. The next target up is 154.23.

2-3-23: Closed at 152.43. Trade pressures are up. Volumes are neutral. The next target up is 154.23.

2-11-23: Closed at 151.34. Trade pressures are down. Volumes are now bearish. The next target down is 148.46.

2-18-23: Closed at 154.90. Trade pressures are up. Volumes are up. The next target up is 158.55. A close below 153.45 would signal lower.

2-24-23: Closed at 160.64. Trade pressures are up. Volumes are neutral. The next target up is 163.65.

3-4-23: Closed at 163.12. Trade pressures are rising into the neutral zone. Volumes are bullish. The next target up is 168.75.

3.11.23: Closed at 157.35. Trade pressures are down. Volumes are bearish. The next target down is 148.96.

3-17-23: Closed at 155.10. Trade pressures are in the neutral zone. Volumes are bearish. The next target down is 148.96.

3-24-23: Closed at 160.78. Trade pressures are down. Volumes are bullish. The next target down is 156.74.

4-28-23: Closed at 169.64. Trade pressures are up into the neutral zone. Volumes are bullish. The next target up is 170.39.

5-7-23: Closed at 171.07. Trade pressures are down but rising into the neutral zone. Volumes are bullish. The next target up is 171.94, the prior high.

5-13-23: Closed at 173.85. Trade pressures are up. Volumes are now bearish. The next target up is 179.82.

5-20-23: Closed at 171.72. Trade pressures are up. Volumes are neutral. The next target up is 179.82.

5-27-23: Closed at 174.00. Trade pressures are up. Volumes are bullish. The next target up is 179.82.

6-3-23: Closed at 180.08. Trade pressures are up but declining. Volumes are bullish. The next target up is 181.83.

6-10-23: Closed at 182.83. Trade pressures are up. Volumes are now neutral. The next target down is 179.63.

6-20-23: Closed at 185.391. Trade pressures are up but declining. Volumes are bullish. The next target down is 181.95.

6-24-23: Closed at 186.62. Trade pressures are up but declining. Volumes are neutral. The next target down is 181.06.

7-1-23: Closed at 196.45. Trade pressures are up. Volumes are bullish. The next target up is 197.20.

7-9-23: Closed at 193.60. Trade pressures are down. Volumes are neutral. The next target down is 186.83.

7-15-23: Closed at 196.12. Trade pressures are down. Volumes are bullish. The next target down is 192.30.

7-21-23: Closed at 201.49. Trade pressures are up. Volumes are bullish. The next target up is 203.48.

8-25-23: Closed at  205.27. Trade pressures are down. Volumes are bullish. The next target down is 196.81.

9-1-23: Closed at 212.36. Trade pressures are up. Volumes are bullish. The next target up is 229.81.

9-8-23: Closed at 206.50. Trade pressures are down. Volumes are bearish. The next target down is 200.22.

9-16-23: Closed at 199.24. Trade pressures are down but rising. Volumes are bearish. The next target down is 192.43.

9-23-23: Closed at 188.45. Trade pressures are down. Volumes are bearish. The next target down is 179.83.

 

Royal Caribbean Cruises Ltd.

Royal Caribbean Cruises Ltd. (RCL) was a new addition to the High-Growth Investments Buy List in the July Growth Investor Monthly Issue. The company provides unique vacation experiences at sea, with cruise ships that offer a variety of dining options, high-quality accommodations, on-board entertainment and excursions on shore. The company’s fleet of 63 ships cruise to more than 270 destinations in more than 60 countries on six continents.

A rebound in the cruising industry post-pandemic led to strong ticket pricing and onboard revenue in the most-recent quarter. Royall Caribbean reported total second-quarter revenue of $3.52 billion and adjusted earnings of $491.7 million, or $1.82 per share. That compared to an earnings per share loss of $2.08 per share in the same quarter a year ago. Analysts expected adjusted earnings of $1.55 per share on $3.41 billion in revenue.

In the wake of its quarterly earnings announcement and anticipation for increased vacation demand going forward, Royal Caribbean upped its outlook for fiscal year 2023. Full-year adjusted earnings per share are now forecast to be between $6.00 and $6.20. So, the analyst community increased its third-quarter earnings estimates and now anticipates 1,246% (?) year-over-year earnings growth. RCL is a Moderately Aggressive buy below $117.

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.

 

Super Micro Computer, Inc.

Super Micro Computer, Inc. (SMCI) may have ignited the correction in AI-related stocks over the bumpy summer months, but the stock has also led the rebound in tech stocks this week with a more than 4% gain. The fact is the technology solutions company continues to benefit from the red-hot AI craze, and it still has stunning forecasted earnings growth.

In fact, the analyst community has increased full-year 2023 earnings estimates 51.7% higher in the past three months. Full-year earnings are now forecast to increase 40.4% year-over-year to $16.58 per share, up from $11.81 per share in 2022. Third- and fourth-quarter earnings estimates have also been revised 16.1% and 38% higher, respectively, over the past three months. As you know, positive analyst revisions typically precede future earnings surprises. SMCI is an Aggressive buy below $335.

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.

 

Toll Brothers, Inc.

Toll Brothers, Inc. (TOL) was a new addition to the High-Growth Investments Buy List back in July, and if you recall, it’s the top builder of luxury homes in the U.S. The company builds homes and housing communities in 24 states nationwide – and it has benefited from the strongest rise in housing starts in six years and robust demand for new-build homes.

In fact, Toll Brothers released better-than-expected results for its third quarter in fiscal year 2023 on Tuesday evening. Third-quarter earnings increased 51.7% year-over-year to a record $414.8 million, or $3.73 per share, beating analysts’ estimates for earnings of $2.81 per share by 32.7%. The company noted that home sales rose 19% year-over-year to $2.7 billion, which also topped estimates for $2.41 billion.

Toll Brothers inked 2,245 contracts, worth a total of $2.2 billion, in the quarter. The company’s backlog of homes at the end of the quarter stood at 7,295, and its backlog value totaled $7.9 billion. For the fourth quarter, Toll Brothers expects to deliver between 2,650 and 2,750 homes. Full-year home deliveries are anticipated to be between 9,500 and 9,600. TOL is a Conservative buy below $84.

SOM Technicals:

8-25-23: Closed at 77.40. Trade pressures are down. Volumes are bullish. The next target down is 72.12.

9-1-23: Closed at 83.83. Trade pressures are up/ volumes are bullish. The next target up is 85.29.

9-8-23: Closed at 80.92. Trade pressures are up into the neutral zone. Volumes are bullish. The next target up is 82.49 resistance.

9-16-23: Closed at 77.87. Trade pressure are down. Volumes are bearish. The next target down is 76.24.

9-23-23: Closed at 74.07. Trade pressures are down. Volumes are neutral. The next target down is 72.97.