High-Growth Investments

EMCOR Group, Inc.

EMCOR Group, Inc. (EME) is one of our AI infrastructure plays. The company provides electrical and mechanical construction, energy and industrial infrastructure and building services. With power demand increasing to support new technology, AI and data centers, demand for EMCOR Group’s solutions is also growing exponentially – and that’s adding to its top and bottom lines.

In the first quarter, earnings soared 76.8% year-over-year to $197.1 million, or $4.71 per share, and revenue rose 18.7% year-over-year to $3.43 billion. The analyst community expected earnings of $2.83 per share and revenue of $3.22 billion, so EMCOR Group posted a 47.3% earnings surprise and a slight revenue surprise.

Given the strong first-quarter results, EMCOR Group increased its outlook for fiscal year 2024. The company now expects full-year revenue between $14.0 billion and $14.5 billion and earnings per share between $15.50 and $16.50. In turn, analysts have upped earnings estimates for the next several quarters and fiscal year 2024. EME is a Moderately Aggressive buy below $444.

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.

 

Nutanix, Inc.

Nutanix, Inc. (NTNX) is another AI play, given that its cloud platform provides security for cloud computing. Nutanix’s Cloud Platform accesses, manages and secures the cloud, data centers and edge locations from a single platform that helps secure and unify operations.

And its services and solutions are in top demand, as it has more than 25,000 top companies and organizations as customers. This includes The Home Depot, Vodafone, Hershey, JetBlue Airways and Micron Technology – just to name a few.

So, I’m looking forward to the company’s upcoming earnings announcement. Nutanix is scheduled to release results for its third quarter in fiscal year 2024 after the market closes on Wednesday, May 29.

Third-quarter earnings are forecast to surge 300% year-over-year to $0.16 per share, compared to $0.04 per share in the same quarter a year ago. Analysts have upped earnings estimates over the past three months, so a fifth-straight quarterly earnings surprise is likely. Third-quarter revenue is expected to come in at $516.18 million. NTNX is a Conservative buy below $79.

SOM Technicals:

5-25-23: Closed at 72.85. Trade pressures are up but declining. Volumes are bullish. The next target down is 68.20.

6-2-24: Closed at 55.32. Trade pressures are down hard. Volumes are bullish at the Friday close. The next target down is 49.82, the 200 day MA.

6-8-24: Closed at 64.74. Trade pressures are down hard. Volumes are bearish. The next target down ism the 200 day MA at 50.48.

6-15-24: Closed at 54.01. Trade pressures are up. Volumes are bearish. The next target up is 55.23.

6-23-24: Closed at 53.40. Trade pressures are in the neutral zone. Volumes are bearish. the next target up is 55.73.

 

The Progressive Corporation

The Progressive Corporation (PGR) is a well-known insurance provider. It offers 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.

Progressive reported $6.18 billion in premiums written in April and $5.58 billion in premiums earned. The company also had 31.35 million policies in force at the end of April, which represented a 7% year-over-year increase. April earnings totaled $420.3 million, or $0.72 per share.

Given the strength of its business so far this year, the analyst community has continued to up second-quarter earnings forecasts. Second-quarter earnings are now expected to jump 547.5% year-over-year to $2.59 per share, compared to previous estimates for $1.96 per share just three months ago. So, Progressive is likely gearing up for its fourth-straight earnings surprise. PGR is a Conservative buy below $218.

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.

 

Targa Resources Corporation

Targa Resources Corporation (TRGP) is primarily a midstream energy company with 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. Targa Resources also utilizes the Grand Prix NGL Pipeline to transport mixed natural gas liquids (NGLs), as well as 34 storage wells and terminals.

During the first quarter, Targa Resources achieved record Permian and liquefied petroleum gas (LPG) export volumes. As a result, the company also reported total revenue of $4.56 billion and earnings of $275.2 million, representing 0.9% year-over-year revenue growth and 4,268.3% year-over-year earnings growth.

Looking ahead to the second quarter, analysts expect earnings to dip 13.2% year-over-year to $1.25 per share, compared to $1.44 per share in the same quarter a year ago. Revenue is forecast to grow 3.2% year-over-year to $4.5 billion.

Despite the negative forecasted earnings growth, Targa Resources is a Top Stock this month, as I expect it to benefit immensely from higher energy prices this summer. Plus, earnings momentum is set to reaccelerate in the third quarter, with estimates calling for 39.2% year-over-year earnings growth. TRGP is a Conservative buy below $123.

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.

 

Vertiv Holdings

Vertiv Holdings (VRT), another AI play, rounds out the High-Growth Investments Top Stocks this month. The company primarily provides digital infrastructure, with a portfolio of power, cooling and IT infrastructure solutions that are vital to commercial and industrial facilities, communication networks and data centers.

During the first quarter, the company’s orders increased 60% year over year, and its backlog jumped to a new record of $6.3 billion. Total first-quarter sales rose 8% year over year to $1.64 billion, while adjusted earnings grew 41.7% year over year to $248.6 million, or $0.43 per share. Analysts expected earnings of $0.36 per share and revenue of $1.62 billion.

With business momentum expected to accelerate throughout 2024, Vertiv increased its outlook for fiscal year 2024. The company now expects full-year sales between $7.54 billion and $7.69 billion and adjusted earnings per share between $2.29 and $2.35.

Given the positive outlook, analysts have increased earnings estimates for the second quarter over the past three months – and that bodes well for a fifth-straight quarterly earnings surprise. Second-quarter earnings are now expected to grow 23.9% year-over-year to $0.57 per share. VRT is a Moderately Aggressive buy below $121.

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.