https://navelliergrowth.investorplace.com/
High-Growth Investments
Eli Lilly & Company
Eli Lilly & Company (LLY) is a well-known drug manufacturer that develops medicines and treatments to meet the needs of patients around the world. The company has been making headlines recently, as its treatment, Mounjaro, has been approved by the FDA to treat Type 2 diabetes – and it’s also expected to receive approval as a weight management treatment.
Interestingly, prior to the latter approval, Eli Lilly has achieved sales of more than $1.5 billion for Mounjaro in the first six months of 2023. And it’s important to note that Mounjaro has only been approved by the FDA as a treatment for Type 2 diabetes for a year. So, as demand continues to ramp up, Mounjaro sales should skyrocket.
Next week, we’ll see firsthand how persistent demand for its treatments continues to add to the company’s top line. Eli Lilly is scheduled to announce third-quarter results before the stock market opens on Thursday, November 2. Third-quarter sales are expected to increase 29% year-over-year to $8.95 billion. LLY is a Conservative buy below $610.
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.
EMCOR Group, Inc.
EMCOR Group, Inc. (EME) is a leading provider of electrical and mechanical construction, energy and industrial infrastructure and building services. Though its headquarters are located in Connecticut, EMCOR Group has more than 80 operating companies, and it has more than 180 locations throughout the U.S. And its systems – lighting, HVAC, fire protection, electrical, etc. – are utilized in practically every sector of the U.S. economy.
Strong demand for its services added handsomely to EMCOR Group’s top and bottom lines in the first two quarters of 2023, and the third quarter was no different.
Third-quarter revenue rose 13.5% year-over-year to $3.21 billion, which was a new record for the company and topped expectations for $3.15 billion. Third-quarter earnings jumped 67.1% year-over-year to $3.61 per share, up from $2.16 per share in the same quarter a year ago. Analysts expected earnings of $2.72 per share, so EMCOR Group posted a 32.7% earnings surprise.
Given the record quarterly results, EMCOR Group upped its guidance for fiscal year 2023. Full-year revenue is now expected to be about $12.5 billion and earnings per share are forecast to be between $12.25 and $12.65. That compares to previous estimates for revenue between $12.0 billion and $12.5 billion and earnings per share between $10.75 and $11.25. EME is a Conservative buy below $223.
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.
Novo Nordisk A/S
Novo Nordisk A/S (NVO) is our other drug manufacturer that’s benefiting from robust demand for diabetes and weight management treatments. In fact, thanks to increased sales for the company’s leading weight-loss and diabetes drugs, Wegovy and Ozempic, Novo Nordisk upped its full-year 2023 sales outlook in mid-October. It now expects 32% to 38% annual sales growth in 2023, up from previous estimates for 27% to 33% annual sales growth.
In the wake of this increased outlook, the analyst community has also upped its forecast for fiscal year 2023. Full-year sales are now expected to grow 26.8% year-over-year to $31.83 billion, and earnings are forecast to rise 28.3% year-over-year to $2.22 per share.
Analysts have also increased third-quarter earnings estimates over the past month. The current consensus estimate calls for earnings of $0.71, up from forecasts for only $0.48 per share a month ago. Third-quarter sales are anticipated to climb 21.1% year-over-year to $7.91 billion. Novo Nordisk plans to publish results for its third quarter prior to the opening bell on Thursday, November 2. NVO remains a Conservative buy below $100.
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.
5-27-23: Closed at 162.23. Trade pressures are down but rising. Volumes are bearish. The next target down is 159.13.
6-3-23: Closed at 157.14. Trade pressures are down. Volumes are now bullish. The next target down is 150.57.
6-10-23: Closed at 158.05. Trade pressures are down into the neutral zone. Volumes are neutral. The next target down is 153.05.
6-20-23: Closed at 159.698. Trade pressures are down. Volumes are bullish. The next target down is 156.49.
6-24-23: Closed at 159.07. Trade pressures are down. Volumes are bearish. The next target down is 156.49.
8-25-23: Closed at 186.43. Trade pressures are down into the neutral zone. Volumes are neutral. The next target down is 178.22.
9-1-23: Closed at 189.31. Trade pressures are down but turning up. Volumes are bullish. The next target up is 191.19, the prior high.
9-8-23: Closed at 195.40. Trade pressures are up. Volumes are bullish. The next target up is the 197.54 prior high.
9-16-23: Closed at 190.43. Trade pressures are down/ Volumes are bearish. Made the 201.76 high, but now in pullback mode. The next target down is 188.26.
9-23-23: Closed at 91.30. 2:1 stock split on September 20. Trade pressures are down into the neutral zone. volumes are bearish. The next target down is 89.95.
10-07-23: Closed at 92.21. Trade pressures are up. Volumes are bullish. The next target up is 93.92.
10-14-23: Closed at 102.14. Trade pressures are up. Volumes are bearish. The next target down is 100.52.
10-27-23: Closed at 93.50. Trade pressures are down. Volumes are bearish. The next target down is 86.32.
11-3-23: Closed at 98.17. Trade pressures are down into the neutral zone. Volumes are neutral. The next target down is 95.21.
11-10-23: Closed at 100.95. Trade pressures are down. volumes are neutral. The next target down is 97.79.
NVIDIA Corporation
NVIDIA Corporation (NVDA) remains one of my favorite artificial intelligence plays, as it has a lock on the AI chip industry. In fact, NVIDIA’s AI chips account for more than 70% of total AI chips sales. The reality is that NVIDIA has been developing AI chips for more than a decade, achieving the ability to perform tasks like facial, image and speech recognition well ahead of the competition.
Now, the company did hit a bit of a snag when the Biden administration announced its plans to limit U.S. exports of AI chips to China. In response to the new restrictions, NVIDIA management stated that it doesn’t anticipate any “near-term meaningful impact” on its business, and it will continue to comply with all applicable regulations.
Right now, NVIDIA still has impressive forecasted earnings growth, thanks primarily to the strong demand for its AI chips. Third-quarter earnings are expected to soar 444.8% year-over-year to $3.16 per share, compared to $0.58 per share in the same quarter a year ago. Analysts have also increased earnings estimates by 53.3% over the past three months. So, a fourth-straight quarterly earnings surprise is likely.
NVIDIA will report results for its third quarter in fiscal year 2024 on November 21. NVDA is a Moderately Aggressive buy below $464.
SOM Technicals:
5-22-20: Closed at 361.05. Trade pressures are up. Volumes are bullish. The next target up is 364.40.
5-30-20: Closed at 353.67. Trade pressures are rising in to the neutral zone. Volumes are bearish. 333 is a support level.
6-6-20: Closed at 356.80. Trade pressure are up. Volumes are bullish. The next target up is 364.
6-12-20: Closed at 357.30. Trade pressures are down. Volumes are neutral. The next target down is 332.00.
6-20-20: Closed at 370.45. Trade pressures are up. volumes are bullish. At the 364 target: consolidating.
6-26-20: Closed at 366.20. Trade pressures are down. Volumes are bearish. A close below 351.00 would signal lower.
7-4-20: Closed at 384.59. Trade pressures are up. Volumes are bullish. The next target up is 406.07.
7-10-20: Closed at 419.17. Trade pressures are up. Volumes are bearish. a close blow 396 would signal lower.
7-18-20: Closed at 408.10. Trade pressures are down. Volumes are bullish. The next target down is 363.00.
7-24-20: Closed at 407.00. Trade pressures are down. Volumes are bullish. The next target down is 363.00.
May 2021: management announces a 4-for-1 stock split.
10-07-23: Closed at 457.62. Trade pressures are up. Volumes are bullish. The next target up is 460.19, then 491.33.
10-14-23: Closed at 454.61. Trade pressure are up but turning down. Volumes are bearish. The next target down is 431.36.
10-27-23: Closed at 405.00. Trade pressures are down. Volumes are bearish. The next target down is 365.76.
11-3-23: Closed at 450.05. Trade pressures are up. Volumes are bullish. The next target up is 490.93.
11-10-23: Closed at 483.25. Trade pressures are up and trending. Volumes are bullish. The next target up is 491.85.
Super Micro Computer, Inc.
Super Micro Computer, Inc. (SMCI) is a global leader in high-performance server technology solutions, and it is also benefiting from the AI trend. But it doesn’t focus on chips like NVIDIA. Rather, it develops computer servers, as well as infrastructure for data centers and the cloud. And it has a strategic partnership with NVIDIA, as NVIDIA uses SMCI’s solutions in its data center chips.
Recently, Super Micro Computer announced that it started to ship a server platform that utilizes NVIDIA’s GH200 Grade Hopper and Grace CPU Superchip. AI servers are anticipated to be a hot item, with the market expected to grow at a nearly 50% compound annual growth rate (CAGR) over the next four years. So, AI servers should continue to be a big business for SMCI going forward.
The company already has solid fundamentals, which will be apparent when it reviews third-quarter earnings and sales after the stock market closes on Wednesday, November 1. Analysts expect earnings of $3.20 per share and revenue of $2.06 billion, which compares to earnings of $3.42 per share and revenue of $1.65 billion in the third quarter of 2022.
Analysts have increased earnings estimates by more than 8% over the past three months, so a quarterly earnings surprise is likely. SMCI is an Aggressive buy below $322.
SOM Technicals:
7-1-23: Closed at 250.40. Trade pressures are up. Volumes are bullish. The next target up is 253.96.
7-9-23: Closed at 260.89. Trade pressures are up but declining. Volumes are bullish. The next target up is 270.18.
7-15-23: Closed at 296.94. Trade pressures are up. Volumes are bearish. The next target up is 306.85, the prior high.
7-21-23: Closed at 303.15. Trade pressures are up but down near the neutral zone. Volumes are bullish. The next target down is 271.97.
7-29-23: Closed at 334.50. Trade pressures are up. Volumes are bullish. The next target up is 412 but support is 325.00.
8-4-23: Closed at 338.10. Trade pressures are down but rising. Volumes are bullish. The next target up is 412.40.
8-11-23: Closed at 254.43. Trade pressures are down hard. Volumes are bearish. The next target down is 231.88.
8-18-23: Closed at 243.55. Trade pressures are down. Volumes are bearish. The next target down is 215.81. A close above 254 would signal higher.
8-25-23: Closed at 253.96. Trade pressures are down. Volumes are neutral. The next target is 237.43.
9-1-23: Closed at 282.16. Trade pressures are up. Volumes are bullish. The next target up is 312.74.
9-8-23: Closed at 280.66. Trade pressures are down but rising. Volumes are bullish. The next target up is 288.19.
9-16-23: Closed at 249.26. Trade pressures are down. Volumes are bearish. The next target down is 237.74.
9-23-23: Closed at 236.25. Trade pressures are down. Volumes are neutral. The next target down is the prior low at 213.00.
10-07-23: Closed at 290.50. Trade pressures are up. Volumes are bullish. The next target up is 300.25.
10-14-23: Closed at 285.20. Trade pressures are down. Volumes are bearish., The next target down is 253.00.
10-27-23: Closed at 240.99. Trade pressures are down. Volumes are bearish. The next target down is 237.94.
11-3-23: Closed at 255.00. Trade pressures are up. Volumes are bearish. The next target up is 271.21.
11-10-23: Closed at 266.00. Trade pressures are up. Volumes are bullish. The next target up is 281.74.