High-Growth Investments
Guidewire Software, Inc.
Guidewire Software, Inc. (GWRE) provides a platform that serves property and casual (P&C) insurance companies around the world. The company’s platform combines artificial intelligence, analytics, core and digital, allowing P&C insurers to digitally transform their businesses and how they operate. Its core products include InsuranceSuite and InsuranceNow.
Guidewire Software is expected to announce results for its first quarter in fiscal year 2025 in early December – and the analyst community expects blowout results.
First-quarter earnings are forecast to surge to $0.29 per share, up from $0.00 per share in the first quarter of 2024. Analysts have also increased earnings estimates by 38% in the past three months, which is setting the company up for another big earnings surprise. Guidewire Software posted a 100%, 95.9%, 105.2% and 14% earnings surprise in the four quarters of fiscal year 2024, respectively.
First-quarter revenue is expected to rise 22.4% year-over-year to $253.94 million, compared to $207.4 million in the same quarter a year ago. GWRE is a Conservative buy below $219.
SOM Technicals:
11-22-24: Closed at 202.82. Trade pressures are up. Volumes are bullish. The next target up is 204.88.
12-06-24: Closed at 177.57. Trade pressures collapse. Volumes are neutral. The next target down is 164.78.
12-13-24: Closed at 172.76. Trade pressures are down but rising. Volumes are bearish. The next target down is 166.11.
Howmet Aerospace, Inc.
Howmet Aerospace, Inc. (HWM) is a Pennsylvania-based company that develops engineered solutions for the aerospace and industrial industries. Specifically, Howmet Aerospace operates four main businesses, including engine products, fastening systems, engineered structures and forged wheels.
Strong demand from the commercial aerospace market continues to drive the company’s strong top- and bottom-line growth. Total third-quarter revenue rose 11% year-over-year to $1.84 billion, and Howmet Aerospace achieved a 17% increase in commercial aerospace market revenue.
Adjusted third-quarter earnings increased 51% year-over-year to $290.0 million, or $0.71 per share, up from $192.0 million, or $0.46 per share, in the same quarter a year ago. Analysts expected earnings of $0.65 per share, so Howmet Aerospace posted a 9.2% earnings surprise.
Following the strong third-quarter results, analysts have upped fourth-quarter earnings estimates over the past month. Fourth-quarter earnings are now forecast to increase 35.6% year-over-year to $0.72 per share. HWM is a Moderately Aggressive buy below $130.
SOM Technicals:
10-28-24: Opened at 102.08. Trade pressures are up. Volumes are bullish. The next target up is 102.88.
11-8-24: Closed at 113.65. Trade pressures are up. Volumes are neutral. The next target up is 115.38.
11-16-24: Closed at 112.01. Trade pressures are down into the neutral zone. Volumes are neutral. The next target down is 108.64.
11-16-24: Closed at 118.44. Trade pressures are up. Volumes are bullish. The next target up is 119.28.
12-06-24: Closed at 118.31. Trade pressures are up but have turned down. Volumes are bullish. The next target up is 120.71.
12-13-24: Closed at 113.43. Trade pressures are down but rising. Volumes are bearish. The next target down is 106.65.
The Progressive Corporation
The Progressive Corporation (PGR) is a well-known insurance provider, offering everything from car, boat and motorcycle insurance to homeowners, renters and commercial insurance. The company also offers popular insurance bundles, in which folks can bundle their auto and property insurance for lower rates. And Progressive continues to benefit from high insurance rates.
Recently, Progressive reported that its net premiums written and net premiums earned both increased 19% in October, rising to $6.58 billion and $6.39 billion, respectively. Earnings in October grew 1% to $408.2 million, or $0.69 per share, compared to $406.0 million, or $0.68 per share, in October 2023.
So, looking ahead to the fourth quarter, analysts have increased earnings estimates in the past week. Fourth-quarter earnings are now forecast to rise 4.9% year-over-year to $3.12 per share, compared to $2.97 per share in the fourth quarter of 2023. PGR is a Conservative buy below $284.
SOM Technicals:
4/27/24: Closed at 205.03. Trade pressures are down. Volumes are bearish. The next target down is 199.79.
5-4-24: Closed at 208.72. Trade pressures are down. Volumes are bullish. The next target down is 206.06.
5-10-24: Closed at 210.17. Trade pressures are neutral. Volumes are bullish. The next target down is 211.49.
5-18-24: Closed at 209.22. Trade pressures are down but rising. Volumes are bearish. The next target down is 201.34.
5-25-24: Closed at 203.91. Trade pressures are down. Volumes are bearish. The next target down is 191.19.
6-2-24: Closed at 211.18. Trade pressures are up. Volumes are bullish. The next target up is 214.90.
6-8-24: Closed at 212.53. Trade pressures are up. Volumes are bullish. The next target up is 219.12.
6-15-24: Closed at 203.92. Trade pressures are down but rising. Volumes are bearish. The next target up is 218.20.
6-23-24: Closed at 209.19. Trade pressures are down. Volumes are bullish. The next target down is 206.
6-30-24: Closed at 207.71. Trade pressures are up into the neutral zone. Volumes are bearish. The next target up is 218.69.
7-5-24: Closed at 210.18. Trade pressures are down. Volumes are neutral. The next target down is 205.22.
7-12-24: Closed at 213.30. Trade pressures are up. Volumes are bullish. The next target up is 218.69.
7-20-24: Closed at 219.35. Trade pressures are up but declining. Volumes are bearish. The next target down 212.57.
8-3-24: Closed at 216.94. Trade pressures are up. Volumes are bullish. The next target up is 240.00.
8-11-24: Closed at 221.73. Trade pressures are up. Volumes are bullish. The next target up is 227.32.
8-16-24: Closed at 236.77. Trade pressures are up. Volumes are bullish. The next target up is 244.22.
8-26-24: Closed at 242.45. Trade pressures are up. Volumes are bullish. The next target up is 246.40.
8-30-24: Closed at 252.20. Trade pressures are up. Volumes are bullish. The next target up is 261.59.
9-7-24: Closed at 248.69. Trade pressures are up but declining. Volumes are neutral. The next target down is 244.68.
9-14-24: Closed at 255.46. Trade pressures are up. Volumes are bullish. The next target up is 267.50.
9-28-24: Closed at 251.10. Trade pressures are down. Volumes are bearish. The next target down is 244.03.
10-5-24: Closed at 255.36. Trade pressures are up. Volumes are bullish The next target up is 262.01.
10-12-24: Closed at 254.02. Trade pressures are up. Volumes are bullish. The next target up is 256.27.
10-18-24: Closed at 251.12. Trade pressures are down. Volumes are bearish. The next target down is 242.32.
10-28-24: Closed at 244.31. Trade pressures are down. Volumes are bearish. The next target down is 235.46.
11-8-24: Closed at 261.52. Trade pressures are up. Volumes are bullish. The next target up is 266.04.
11-16-24: Closed at 255.78. Trade pressures are down. Volumes are bearish. The next target down is 251.43.
11-22-24: Closed at 266.08. Trade pressures are up. Volumes are bullish. The next target up is 268.04.
12-06-24: Closed at 254.04. Trade pressures are down. Volumes are bearish. The next target down is 249.66.
12-13-24: Closed at 251.80. Trade pressures are up into the neutral zone. Volumes are bullish. The next target up is 256.89.
Sprouts Farmers Market, Inc.
Sprouts Farmers Market, Inc. (SFM) was a new addition to the High-Growth Investments Buy List in the November Monthly Issue. The company focuses on offering healthy, nutritional food at its more than 400 stores in 23 U.S. states. The company boasts that the majority of its food items are natural or organic, and it also provides many gluten-free, plant-based, grass-fed, non-GMO and raw food options.
During the third quarter, Sprouts Farmers Market opened nine new stores, bringing its total store count to 428. Comparable store sales growth was 8.4% in the quarter.
Third-quarter earnings increased 40% year-over-year to $91.6 million, or $0.91 per share, which topped estimates for $0.77 per share. Revenue rose 14% year-over-year to $1.9 billion, also beating estimates for $1.88 billion.
Looking ahead, the company expects fourth-quarter adjusted earnings per share between $0.67 and $0.71 and full-year earnings per share between $3.64 and $3.68. That compares to earnings of $0.49 per share in the fourth quarter of 2023 and $2.84 per share in fiscal year 2023. SFM is a Conservative buy below $158.
SOM Technicals:
11-22-24: Closed at 147.13. Trade pressures are up. Volumes are bullish. The next target up is 148.56.
12-06-24: Closed at 154.04. Trade pressures are down into the neutral zone. Volumes are bullish. The next target up is 155.87.
12-13-24: Closed at 147.79. Trade pressures are up but turning down. Volumes are bearish. the next target down is 142.69.
Targa Resources Corporation
Targa Resources Corporation (TRGP) is a midstream energy company that provides gathering and processing systems and logistics and transportation systems. The company operates more than 31,000 miles of natural gas pipelines and 53 processing plants, which service top natural gas and crude oil-producing basins in the U.S.
Thanks to strong volumes in the Permian Basin, as well as increased natural gas liquids (NGLs) sales, Targa Resources achieved better-than-expected results in its third quarter.
Third-quarter earnings increased 76% year-over-year to $387.4 million, up from $220.0 million in the same quarter a year ago. Earnings of $1.92 per share exceeded analysts’ estimates for $1.61 per share by 19.1%. Revenue of $3.85 billion fell short of analysts’ expectations for $4.06 billion.
In the wake of the positive third-quarter results, analysts have increased fourth-quarter earnings estimates. Analysts now expect fourth-quarter earnings to rise 23.4% year-over-year to $1.85 per share, compared to estimates for only $1.81 per share a month ago. TRGP is a Conservative buy below $222.
SOM Technicals:
5-25-24: Closed at 114.28. Trade pressures are down. Volumes are bearish. The next target down is 111.90.
6-2-24: Closed at 118.23. Trade pressures are up. Volumes are bullish. The next target up is 119.68.
6-8-24: Closed at 118.01. Trade pressures are up. Volumes are bullish. The next target up is 119.68.
6-15-24: Closed at 119.00. Trade pressures are down. Volumes are neutral. The next target down is 117.63.
6-23-24: Closed at 125.10. Trade pressures are up. Volumes are bearish. The next target down is 123.65.
6-30-24: Closed at 128.78. Trade pressures are up. Volumes are bullish. The next target up is 130.53.
7-5-24: Closed at 132.49. Trade pressures are up. Volumes are bullish. The next target up is 139.71.
7-12-24: Closed at 135.05. Trade pressures are up. Volumes are bullish. The next target up is 137.41.
7-20-24: Closed at 136.37. Trade pressures are up. Volumes remain bullish. The next target up is 139.96.
8-3-24: Closed at 130.58. Trade pressures are down. Volumes are bearish. The next target down is 126.70.
8-11-24: Closed at 135.69. Trade pressures are up. Volumes are bullish. The next target up is 139.35, the prior high.
8-16-24: Closed at 142.83. Trade pressures are up. Volumes are bullish. The next target up is 150.00.
8-26-24: Closed at 145.47. Trade pressures are up. Volumes are bullish. The next target up is 151.82.
9-28-24: Closed at 146.80. Trade pressures are down. Volumes are neutral. The next target down is 140.89.
10-5-24. Closed at 158.02. Trade pressures are up. Volumes are bullish. The next target up is 159.07.
10-12-24: Closed at 165.76. Trade pressures are up. Volumes are bullish. The next target up is169.90.
10-18-24: Closed at 162.75. Trade pressures are down into the neutral zone. Volumes are bullish. The next target down is 157.41.
10-28-24: Closed at 164.72. Trade pressures are down. Volumes are neutral. The next target down is 160.29.
11-8-24: Closed at 192.28. Trade pressures are up. Volumes are bullish. The next target up is 195.00.
11-16-24: Closed at 196.04. Trade pressures are up but declining. Volumes are bullish. The next target up is 197.14.
11-22-24: Closed at 207.31. Trade pressures are up. Volumes are bullish. The next target up is 210.40.
12-06-24: Closed at 194.34. Trade pressures are down but rising. Volumes are bearish. The next target down is 182.70.
12-13-24: Closed at 184.62. Trade pressures are down. Volumes are bearish. The next target down is 172.37.