High-Growth Investments

Eli Lilly & Company

Eli Lilly & Company (LLY) continues to prosper from the booming business in weight-loss drugs. As you may know, the company is known for its type 2 diabetes treatment, Mounjaro, and its weight-loss drug, Zepbound, as both have now received FDA approval. But Eli Lilly is far from a one-trick pony.

Just this week, Eli Lilly announced that it was partnering with OpenAI in order to utilize its generative AI to develop antimicrobials for the treatment of drug-resistant pathogens. Company management noted antimicrobial resistance is an “overlooked threat,” and its partnership with OpenAI illustrates Eli Lilly’s “commitment to addressing significant health challenges experienced by people around the world.”

Eli Lilly will release second-quarter results on August 8. The consensus estimate calls for earnings of $2.75 per share on $9.97 billion in revenue, which translates to 30.3% year-over-year earnings growth and 19.9% year-over-year revenue growth.

The company also announced that it will pay a third-quarter dividend of $1.30 per share on September 10. All shareholders of record on August 15 will receive the dividend. The stock has a 0.6% dividend yield. LLY is a Conservative buy below $979.

SOM Technicals:

10-07-23: Closed at 567.87. Trade pressures are up. Volumes are now bullish. The next target up is 575.41.

10-14-23: closed at 609.20. Trade pressures are up and trending. Volumes are now bearish. The next target up is 636.00. There is the large gap near 460 to fill.

10-27-23: Closed at 560.23. Trade pressures are down. Volumes are bearish. The next target down is 559.00.

11-3-23: Closed at 567.81. Trade pressures are up but turning down. Volumes are neutral. The next target down is 535.00.

11-10-23: Closed at 597.50. Trade pressures are down. Volumes are neutral. Rolling over after the rally, the next target down is 544.70.

11-17-23: Closed at 591.74. Trade pressures are down but rising. Volumes are neutral. The next target up is 629.97.

11-26-23: Closed at 601.10. Trade pressures are up Volumes are neutral. In consolidation. The next target up is 619.40.

12-1-23: Closed at 584.04. Trade pressures are down. Volumes are bearish. The next target down is 573.69.

12-9-23: Closed at 598.05. Trade pressures are up. Volumes are bullish. The next target up is 611.72.

12-15-23: Closed at 571.22. Trade pressures are down. Volumes are down. The next target down is 55.74 then 529.00.

12-30-23: Closed at 581.60. Trade pressures are up. Volumes are bullish. The next target down is 560.26.

1-6-24: Closed at 618.55.  Trade pressures are up. Volumes are neutral. The next target up is a retest of the 636.15 target.

1-12-24: Closed at 642.92. Trade pressures are up. Volumes are bullish. The next target up is 664.52.

1-20-24: Closed at 628.58. Trade pressures are down. Volumes are neutral. The next target down is 606.55.

1-27-24: Closed at 640.00. Trade pressures are up. Volumes are bullish. The next target up is the Breakout of the Upper median line resistance at 639.50.

2-3-24: Closed at 667.66. Trade pressures are up. Volumes are bullish. The next target up is 682.18.

2-10-24: Closed at 741.00. Trade pressures are up. Volumes are now neutral. The next target up is 745.00.

2-16-24: Closed at 786.00. Trade pressures are up. Volumes remain bullish. The next target up is 882.00.

2-25-24: Closed at 769.54. Trade pressures are down into the neutral zone. Volumes are neutral. The next target down is 712.11.

3-1-24: Closed at 782.12. Trade pressures are in the neutral zone and rising. Volumes are bullish. The next target up is 794.47.

3-9-24: Closed at 762.14. Trade pressures are down. Volumes are bearish. The net target down is 749.88.

3-16-24: Closed at 754.17. Trade pressures are up but turning down. Volumes are bearish. The next target down is 718.42.

3-22-24: Closed at 770.61. Trade pressures are up. Volumes are bullish. The next target up is the resistance at 794.25.

3-29-24: Closed at 777.96. Trade pressures are up. Volumes are now bearish. The next target up 787.40.

4-6-24: Closed at 784.21. Trade pressures are up. Volumes are bullish. The next target up is the prior high at 793.67.

4-14-24: Closed at 751.64. Trade pressures are down. Volumes are bearish. the next target diown is 720.51.

4-27-24: Closed at 733.51. Trade pressures are down but rising. Volumes are neutral. The next target up is the new long entry at 734.81.

5-4-24: Closed at 734.97. Trade pressures are down. Volumes are neutral. The next target down is 707.91.

5-10-24: Closed at 760.00. Trade pressures are down. Volumes are bullish. the next target up is the prior high at 795.50.

5-18-24: Closed at 770.00. Trade pressures are down. Volumes are bullish. The next target up is 781.59.

6-30-24; Closed at 905.38. Trade pressures are up. Volumes are bullish. The next target up is 971.47.

7-5-24: Closed at 916.01. Trade pressures are down into the neutral zone. Volumes are bullish. The next target down is 877.

7-12-24: Closed at 948.40. Trade pressures are up. Volumes are bullish. The next target up is 957.43.

7-20-24: Closed at 857.47. Trade pressures are down hard. Volumes are neutral. The next target down is 832.65.

 

EMCOR Group, Inc.

EMCOR Group, Inc. (EME) is one of the companies helping to expand the U.S. electric grid and fuel AI data center growth. You may recall that the company provides electrical and mechanical construction, energy and industrial infrastructure and building services. So, it’s experienced strong demand for its solutions as power demand increases to support new technology, AI and data centers.

EMCOR Group is expected to announce second-quarter results in late July. Second-quarter earnings are forecast to grow 27.5% year-over-year to $3.76 per share, up from $2.95 per share in the same quarter a year ago. Analysts have also increased earnings estimates over the past three months, so a fifth-straight quarterly earnings surprise is likely.

Second-quarter revenue is expected to increase 15.6% year-over-year to $3.52 billion, compared to $3.05 billion in the second quarter of 2023. EME is a Moderately Aggressive buy below $403.

SOM Technicals:

10–07-23: Closed at 206.72. Trade pressures are down but rising. Volumes are now bullish. The next target up is 211.58.

10-14-23: Closed at 202.02. Trade pressures are down. Volumes are bearish. The next target down is 192.91.

10-27-23: Closed at 205.12. Trade pressures are up. Volumes are bullish. The next target up is 212.90.

11-2-23: Closed at 210.22. Trade pressures are up. Volumes are bullish. The next target up is 212.90.

11-10-23: Closed at 210.68. Trade pressures are rising in the neutral zone. Volumes are bullish. The next target up is 229.49.

3-29-24: Closed at 350.20. Trade pressure are up but turning down. Volumes are neutral. The next target up is 354.73. A close below 347.00 signals correction.

4-6-24: Closed at 365.02. Trade pressures are up. Volumes are bullish. The next target up is 369.53, the prior high.

4-14-24: Closed at 351.88. Trade pressures are down but rising. Volumes are neutral. the next target down is 349.26.

4-27-24: Closed at 354.02. Trade pressures are up. Volumes are bullish. The next target up is 367.44.

5-4-24: Closed at 363.77. Trade pressures are down but rising. Volumes are bullish. The next target up is 367.44.

5-10-24: Closed at 380.28. Trade pressures are up. Volumes are bullish. The next target up is 401.49.

5-18-24: Closed at 378.37. Trade pressures are in the neutral zone. Volumes are neural. The next target down is 367.90.

5-25-24: Closed at 398.69. Trade pressures are up. Volumes are bullish. The next target up is 407.49.

6-2-24: Closed at 388.66.. Trade pressures are down. Volumes are bearish. The next target down is 365.98.

6-8-24: Closed at 376.00. Trade pressures are up. Volumes are neutral. The next target up is resistance at 382.37.

6-15-24: Closed at 377.20. Trade pressures are down. Volumes are bullish. The next target down is 365.90.

6-23-24: Closed at 381.27. Trade pressures are down. Volumes are bullish. The next target down is 365.90.

6-30-24: Closed at 365.08. Trade pressures are down. Volumes are bearish. The next target down is 343.73.

7-5-24: Closed at 362.54. Trade pressures are rising into the neutral zone. Volumes are bullish. The next target up is 392.

7-12-24: Closed at 376.45. Trade pressures are up. Volumes are bullish. The next target up is 392.30.

7-20-24: Closed at 363.61. Trade pressures are down. Volumes are neutral. The next target down is 353.54.

 

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.

During the month of May, Progressive reported $5.975 billion in net premiums written and $5.857 billion in net premiums earned. The company also reported earnings of $235.7 million, or $0.40 per share for the month of May. That compares to earnings of $420.3 million, or $0.72 per share, in April.

Progressive is scheduled to report results from the most recent quarter on July 16. Earnings are forecast to surge 437.5% year-over-year to $2.15 per share, up from $0.40 per share in the same quarter a year ago. Revenue is expected to grow 16.7% year-over-year to $17.49 billion. PGR is a Conservative buy below $223.

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.

 

Targa Resources Corporation

Targa Resources Corporation (TRGP) is a midstream energy company that provides gathering and processing systems as well as 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.

The company operates in the lucrative oil and natural gas-producing region in the Permian Basin, and its operational prowess there is anticipated to continue to add to its top and bottom lines. For the second quarter, analysts expect earnings of $1.21 per share and revenue of $4.5 billion.

I should add that TRGP is one of the few High-Growth Investments that earns a coveted AA-rating – an A-rating in Portfolio Grader and an A-rating in Dividend Grader. The company increased its first-quarter dividend by 50%, paying $0.75 per share on May 15. The stock has a 2.3% dividend yield. TRGP is a Conservative buy below $138.

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.

 

Vertiv Holdings

Vertiv Holdings(VRT) also benefits from the AI revolution, as it aims to help expand the utility grid and data centers. The company primarily provides digital infrastructure, offering a portfolio of power, cooling and IT infrastructure solutions that are vital to commercial and industrial facilities, communication networks and data centers.

Vertiv is expected to announce second-quarter results in late July. The analyst community is looking for earnings of $0.57 per share and revenue of $1.94 billion, which compares to earnings of $0.46 per share and revenue of $1.62 billion in the second quarter of 2023. Analysts have upped earnings estimates slightly in the past three months, so another quarterly earnings surprise is likely. VRT is a Moderately Aggressive buy below $99.

SOM Technicals:

3-29-24: Closed at 81.84. Trade pressures are up but turning down. Volumes are bullish. The next target down is 77.05. A close above 83.62 signals higher.

4-6-24: Closed at 85.34. Trade pressures are up. Volumes are bullish. The next target up is the prior high at 88.70.

4-14-24: Closed at 83.89. Trade pressures are rising into the neutral zone. Volumes are neutral. The next target down is 78.14.

4-27-24: Closed at 93.49. Trade pressures are up. Volumes are neutral. The next target up is 94.76.

5-4-24: Closed at 93.01. Trade pressures are rising into the neutral zone. Volumes are bullish. The next target up is 95.70.

5-10-24: Closed at 95.40. Trade pressures are up. Volumes are bullish. The next target up is 100.01.

5-18-24: Closed at 96.81. Trade pressures are down. Volumes are neutral. The next target down is 90.96.

5-25-24: Closed at 106.17. Trade pressures are up. Volumes are bullish. The next target up is 126.68.

6-2-24: Closed at 98.07. Trade pressures are down. Volumes are bullish. The next target up is 101.57.

6-8-24: Closed at 87.68. Trade pressures are down. Volumes are bearish. The next target up is 94.31.

6-15-24: Closed at 91.48. Trade pressures are up. Volumes are neutral. The next target down is 80.34.

6-23-24: Closed at 90.62. Trade pressures are down. Volumes are now neutral. The next target down is 78.22.

6-30-24: Closed at 86.57. Trade pressures are down. Volumes are bearish. The next target down is 78.22.

7-5-24: Closed at 91.78. Trade pressures are up. Volumes are bullish. The next target up is 95.17.

7-12-24: Closed at 89.67. Trade pressures are down. volumes are bearish. The next target down is 85.44.

7-20-24: Closed at 85.31. Trade pressures are down but rising. Volumes are bearish. The next target up is 98.45.