High-Growth Investments

Carpenter Technology Corporation

Carpenter Technology Corporation (CRS) was a new addition to the High-Growth Investments Buy List in the November Monthly Issue. If you recall, Carpenter Technology develops specialty alloys, offering more than 500 alloys around the world. This includes stainless steels, nickel, cobalt, magnetic iron, powder metals and titanium.

After achieving its “most profitable first quarter” in the company’s history, Carpenter Technology is gearing up for another stunning quarterly earnings report, as demand remains robust for its alloys.

Second-quarter earnings are now forecast to jump 88% year-over-year to $1.60 per share, up from $0.85 per share in the same quarter a year ago. That’s also up from analysts’ estimates of $1.45 per share just a month ago. As you know, positive analyst revisions often precede future earnings surprises. Revenue is expected to grow 15.9% year-over-year to $723.62 million. CRS is a Moderately Aggressive buy below $194.

SOM Technicals:

12-13-24: Closed at 174.09. Trade pressures are down and trending. Volumes are bearish. The next target down is 150.21.

12-29-24: Closed at 169.97. Trade pressures are down. Volumes are neutral. The next target down remains 150.91.

 

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.

The commercial aerospace market has been a particularly lucrative corner of Howmet Aerospace’s business recently, with commercial aerospace market revenue rising 17% year-over-year in the third quarter. I should also add that it accounts for more than 50% of its total business.

Given the strength of its business, analysts expect strong fourth-quarter results. Total fourth-quarter revenue is forecast to grow 8.6% year-over-year to $1.88 billion, while earnings are expected to increase 35.7% year-over-year to $0.72 per share. Analysts have also upped earnings estimates over the past two months, so a fifth-straight quarterly earnings surprise is likely. HWM is a Moderately Aggressive buy below $123.

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.

12-20-24: Closed at 110.83. Trade pressures are down. Volumes are bullish. The next target down remains 106.95.

 

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, where folks can bundle their auto and property insurance for lower rates. And Progressive continues to benefit from high insurance rates.

Just last week, Progressive reported that its net premiums written rose 18% year-over-year to $5.56 billion in November, and net premiums earned grew 19% year-over-year to $6.04 billion. The company also noted that earnings per share increased 48% year-over-year to $1.71 per share, up from $1.15 per share in November 2023.

So, fourth-quarter earnings are now forecast to rise 15% year-over-year to $3.42 per share, up from estimates of $3.08 per share a month ago. PGR is a Conservative buy below $259.

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.

12-20-24: Closed at 239.97. Trade pressures are down. Volumes are bearish. The next target down is 228.01.

Sprouts Farmers Market, Inc.

Sprouts Farmers Market, Inc. (SFM) offers healthy, nutritional food at over 400 stores in 23 U.S. states. The company boasts that most 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.

At the start of every New Year, folks set their goals and resolutions for the upcoming 12 months – and often those goals include eating healthier and exercising more. Sprouts Farmers Market is directly aligned to profit from folks’ New Year’s resolutions to eat healthier.

As a result, it’s not too surprising that analysts have revised their earnings estimates higher for the next several quarters. Fourth-quarter earnings are expected to increase 47.3% year-over-year to $0.72 per share, up from estimates for $0.57 per share a month ago. As you know, positive analyst revisions typically precede future earnings surprises. SFM is a Conservative buy below $142.

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.

12-20-24: Closed at 131.70. Trade pressures are down. Volumes are bearish. The next target down is 126.86.

 

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.

As you may have guessed, Targa Resources is well-positioned to benefit from Trump 2.0’s “drill, baby, drill” policies and the upcoming renaissance in natural gas. But even before this adds to the company’s top and bottom lines, the analyst community expects stunning results for its fiscal year 2024.

Full-year earnings are now forecast to more than double year-over-year to $6.50 per share, up from $3.00 per share in 2023. Earnings estimates have also been revised 6.2% higher in the past three months. TRGP is a Conservative buy below $188.

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.

12-20-24: Closed at 176.89. Trade pressures are down. Volumes are bullish. The next target up is 187.58.