High-Growth Investments

Coca-Cola FEMSA Sab de CV

Coca-Cola FEMSA Sab de CV (KOF) was a new addition to the High-Growth Investments Buy List in April. If you recall, the company is the biggest Coca-Cola franchise bottler in the world, operating 49 bottling plants and 268 distribution centers in 10 countries in Latin America. And it has a vast portfolio of brands, including Coca-Cola, Fanta, Sprite, Powerade, Vitamin Water, Monster and Fuze Tea.

The company hasn’t confirmed the date for its first-quarter earnings announcement, but the analyst community has been busy preparing for the report. Earnings estimates have been revised 5.5% higher in the past two months, which bodes well for a fourth-straight quarterly earnings surprise.

First-quarter earnings are forecast to grow 43.3% year-over-year to $0.96 per share, up from $0.67 per share in the same quarter a year ago. Revenue is expected to rise 22.3% year-over-year to $3.05 billion. KOF is a Conservative buy below $90.

SOM Technicals:

4-28-23: Closed at 84.42. Trade pressures are down, but rising.  Volumes are now neutral.  The next target down is 79.84.

5-07-23: Closed at 88.48. Trade pressures are up. Volumes are bullish. The next target up is 89.08.

5-13-23: Closed at 88.73. Trade pressures are up but rolling over. Volumes are now neutral. The next target down is 86.56.

5-20-23: Closed at 88.79. Trade pressures are  down but rising. Volumes are bearish. The next target down is 86.56.

 

Lamb Weston Holdings, Inc.

Lamb Weston Holdings, Inc. (LW) is the second-largest supplier of frozen potatoes in the world – and its most-popular product is frozen fries. About 80 million portions of fries are sold each day globally. And based on the company’s latest results, folks continue to have an insatiable appetite for its frozen food offerings, especially French fries.

During its third quarter in fiscal year 2023, sales increased 31% year-over-year to $1.25 billion, and adjusted earnings soared 125% year-over-year to $207 million, or $1.43 per share. Analysts expected earnings of $0.99 per share on $1.16 billion in sales, so Lamb Weston posted a 44.4% earnings surprise and a 7.8% sales surprise.

Lamb Weston also provided positive guidance for its fiscal year 2023: Sales are forecast to be between $5.25 billion and $5.35 billion, and adjusted earnings per share are expected to be between $4.35 and $4.50. So, the analyst community has increased fourth-quarter and full-year earnings estimates over the past month. LW remains a Conservative buy below $119.

SOM Technicals:

1/28/23: Closed at 98.31. Trade pressures are up. Volumes are bullish. The next target up is 100.77, the prior high.

2-3-23: Closed at 98.12. Trade pressures are down but rising. Volumes are now neutral. The next target up is 100.77. Support is at 95.40.

2-18-23: Closed at 100.48. Trade pressures are up. Volumes are bullish. The next target up is 108.44.

2-24-23: Closed at 99.98. Trade pressures are down. Volumes are now neutral. The next target down is 87.01.

3-4-23: Closed at 101.98. Trade pressures are up. Volumes are bullish. The next target up is a breakout above the prior high at 102.77.

3-11-23: Closed at 97.63. Trade pressures are down. Volumes are bearish. The next target down is the short entry at 97.30.

3-17-23: Closed at 97.62. Trade pressures are down but rising. Volumes are bearish. the next target down is 91.83.

3-24-23: Closed at 100.18. Trade pressures are down but rising into the neutral zone. Volumes are bullish. The next target up is 102.70.

3-31-23: Closed at 104.52. Trade pressures are up. Volumes are bullish. The next target up is 107.05.

4-14-23: Closed at 108.71. Trade pressures are up but turning down.  Volumes are bullish. The next target down is 104.23.

4-22-23: Closed at 110.35. Trade pressures are up. Volumes are bullish. The next target up is 112.88.

4-28-23: Closed at 111.81. Trade pressures are up . Volumes are bullish. The next target up is 117.72.

5-07-23: Closed at 112.09. Trade pressures are down into the neutral zone. Volumes are bullish. The next target down is 107.56.

5-13-23: Closed at 114.28. Trade pressures are up. Volumes are bullish. The next target up is 117.72.

5-20-23: Closed at 114.48. Trade pressures are up. Volumes are bullish. The next target up is 117.72.

 

First Solar, Inc.

First Solar, Inc. (FSLR) was added to the High-Growth Investments Buy List in the April Monthly Issue, as the company has been making the transition from negative to positive earnings. Well, the solar manufacturer released first-quarter results after the stock market closed on Thursday, and results showed continued earnings and sales growth.

For the first quarter, First Solar reported earnings surged to $0.40 per share, up from a $0.41 per share loss in the same quarter a year ago. First-quarter sales increased 49.4% year-over-year to $548.29 million. The consensus estimate called for earnings of $0.93 per share on $718.44 million in sales.

Company management commented, “We entered 2023 in a significantly stronger commercial, operational, and financial position than the previous year, setting the stage for growth and improved profitability in 2023 and beyond.” So, the company left its full-year guidance unchanged.

For fiscal year 2023, First Solar anticipates total sales between $3.4 billion and $3.6 billion and earnings per share between $7.00 and $8.00. That compares to sales of $2.39 billion and an earnings per share loss of $0.37 in fiscal year 2022. Clearly, First Solar still has stunning forecasted earnings and sales growth. FSLR is a Moderately Aggressive buy below $215.

SOM Technicals:

4-28-23: Closed at 182.63. Trade pressures are down Volumes are now neutral. The next target down is 178.66.

5-7-23: Closed at 178.60. Trade pressures are down but rising. volumes are now neutral. The next target up is 181.59.

5-13-23: Closed at the 231.69, up 50.00. Trade pressures are up. Volumes are a high volume bullish. The next target up is 249.63. 

5-20-23: Closed at 203.63, retracing the large move up. Trade pressures are down. Volumes are neutral. Maybe going to fill the gap.

 

Novo Nordisk AS

Novo Nordisk AS (NVO) 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. The company’s leading treatment is Ozempic, and its sales rose 45% in 2022. Novo Nordisk anticipates strong Ozempic, as well as Wegovy, sales in 2023.

In fact, Novo Nordisk recently provided an early look at its first quarter and increased its guidance for fiscal year 2023. The company noted that sales rose 25% year-over-year and its operating profit grew 28% year-over-year in the first quarter. Novo Nordisk is scheduled to announce final first-quarter results on Thursday, May 4.

So, now, Novo Nordisk anticipates full-year sales growth between 24% and 30% and operating profit growth between 28% and 34%. That compares to previous estimates for 13% to 19% annual sales growth and 13% to 19% annual operating profit growth. NVO is a Conservative buy below $179.

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.

 

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, the company achieved record earnings and revenue in fiscal year 2022.

For fiscal year 2023, Quanta Services anticipates that demand for its products and services will persist, and it provided a strong outlook. Full-year revenue is expected to be between $18.40 billion and $18.90 billion, and adjusted earnings per share are forecast to be between $6.75 and $7.25.

Quanta Services is scheduled to release first-quarter results before the stock market opens on Thursday, May 4. The current consensus estimate calls for earnings of $1.13 per share on $4.08 billion in revenue, which compares to earnings of $1.37 per share and revenue of $3.97 billion in the first quarter of 2022. PWR is a Conservative buy below $182.

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.