Navellier Top Stocks for August

The following is provided by Navellier with technical comment from South Ocean Management – pls do your own due diligence.
(For this 2020 year, SOM will track only the Top 5 Hi-Growth Investments.)

https://navelliergrowth.investorplace.com/

Navellier says,

High-Growth Investments

Dexcom, Inc.

Dexcom, Inc. (DXCM) is certainly thriving in the current environment! Dexcom develops glucose monitoring systems that help diabetic patients test and maintain their blood glucose levels. The best part is that it can all be done remotely. The diabetic wears a sensor and a transmitter that reads glucose levels and provides alerts to a smart phone if levels change drastically.

Well, on Tuesday, Dexcom revealed that its CGM systems have been available in U.S. hospitals and healthcare facilities to assist frontline workers during the pandemic. Due in part to this and strong demand for at-home healthcare options, Dexcom reported stunning second-quarter results.

Second-quarter revenue jumped 34% year-over-year to $451.8 million, topping estimates for $415.74 million. Earnings surged 888.5% year-over-year to $77.1 million, or $0.79 per share, compared to earnings of $7.8 million, or $0.08 per share in the second quarter of 2019. Analysts were expecting earnings of $0.35 per share, so Dexcom beat forecasts by a whopping 125.7%.

Thanks to the strong quarterly results, Dexcom also provided full-year 2020 guidance. The company now expects full-year revenue to grow 25% year-over-year to $1.85 billion. DXCM is an Aggressive buy below $500.

SOM Technicals:

4-25-20: Closed at 332.44. Trade pressures are up but declining. Volumes are bullish. New highs next target up is 350.00.

5-2-20: Closed at 341.52. Trade pressures are down into,the neutral zone. Volumes remain bullish. The pull back could go to 304 and still be in the uptrend.

5-8-20: Closed at 405.50. Trade pressures are up. Volumes are bullish; some selling into this big rally.

5-15-20: Closed at 417.13. Trade pressures are up but declining. Volumes are neutral. support is at 381.00.

5-22-20: Closed at 405.25. Trade pressures are down. Volumes are neutral. In a retracement move down to test the 25×5 MA support at 370.

5-30-20: Closed at 378.31. Trade pressures are down but rising.  Volumes are neutral. Bounced off the 25×5 support level at 370.

6-6-20: Closed at 364.49. Trade pressures are down. Volumes are bullish. The next target down is 300.

6-12-20: Closed at 370.23. Trade pressures are down but rising. Volumes are bullish. In the down trend, the next target down is 310.00.

6-20-20: Closed at 409.36. Trade pressures are up. Volumes are bullish. In a new up trend. the next target up is 454.00.

6-26-20: Closed at 383.06. Trade pressures are down hard. Volumes are bearish. A close below 374.00 would start anew downtrend.

7-4-20: Closed at 407.35. Trade pressures are up. Volumes are bullish. The next target up is 428.59.

7-10-20: Closed at 439.64. Trade pressures are up. Volumes are bullish. The next target up is 459.00. 

7-18-20: Closed at 424.43. Trade pressures are up. Volumes are neutral. The next target up is the prior high at 446.50.

7-24-20: Closed at 422.00. Trade pressures are down. Volumes are bullish. The next target down is 389.00.

7-30-20: Closed at 435.54. Trade pressures are up but showing divergence. Volumes are bullish. The next target down is 384.18.

8-7-20: Closed at 440.70. Trade pressures are up but declining. Volumes are bearish.Support is at 400.00.

8-15-20: Closed at 426.75. Trade pressures are don into the neutral zone. Volumes are bearish. In consolidation. the next target down is 393.91.

8-21-20: Closed at 426.90. Trade pressures are down. Volumes are bearish. The next target down is 393.91.

 

DocuSign, Inc.

DocuSign, Inc. (DOCU) provides an e-signature platform that is utilized by more than 650,000 customers and millions of e-signers. The reality is that DocuSign’s e-signature technology enables businesses to send and sign agreements virtually, with up to 82% of agreements signed in less than 24 hours. And it can be integrated with several popular solutions, like Salesforce and Workday.

In June, DocuSign reported that it saw a significant increase in total customers during its first quarter in fiscal year 2021. Its customer base grew 30% year-over-year to 661,000, up from 508,000. The company also reported first-quarter revenue growth of 39% and earnings growth of 71.4%.

For the second quarter, which is expected to be announced in early September, DocuSign is anticipating revenue between $316 million and $320 million, which represents 34.1% to 35.8% annual revenue growth. Analysts are also forecasting 700% annual earnings growth, or $0.08 per share, up from $0.01 per share in the second quarter of fiscal year 2020. DOCU is a Moderately Aggressive buy below $242.

SOM Technicals:

6-26-20: Closed at 177.58. Trade pressures are up. Volumes are bullish. This spike up is not likel;y to continue in the face of the sell off.

7-4-20: Closed at 190.99. Trade pressures are up. Volumes are bullish. This parabolic move is very uncomfortable.

7-10-20: Closed at 210.11. Trade pressures are up but reversing. A close below 210 would signal lower.

7-18-20: Closed at 196.42. Trade pressures are down but rising. Volumes are neutral. The next target up is 217.

7-24-20: Closed at 190.95. Trade pressures are down. Volumes are bearish. The next target down is 172.23.

7-30-20: Closed at 217.45. Trade pressures are up. Volumes are bullish. The next target up is 257.20.

8-7-20: Closed at 205.00. Trade pressures are down. Volumes are bearish. Dropped thru two downside targets this week. The next target down is 185.06.

8-15-20: Closed at 199.71. Trade pressures are neutral. Volumes are neutral also.Traded down near the 185.06 target and now has moved higher. At the 25×5 MA and looks lower. The next target don is the 185.91 Target.

8-21-20: Closed at 210.18. Trade pressures are up but showing reversal. Volumes are bullish. The next target up is 221.00.

 

Genmab A/S

Genmab A/S (GMAB) was added to the High-Growth Investments Buy List in the July Monthly Issue. If you recall, Genmab is a biotechnology company that’s focused on developing antibody therapeutics to treat cancer. The company currently has two products on the market: DARZALEX, which is FDA-approved to treat multiple myeloma, and Arzerra, which treats chronic lymphocytic leukemia.

Thanks to strong demand for antibody therapeutics and its strategic partnerships, Genmab posted double-digit revenue growth and triple-digit earnings growth in the first quarter. But, considering that analysts have increased earnings forecasts by a whopping 2,128.9% in the past two months, the second-quarter results are lining up to be even more phenomenal.

Second-quarter earnings are expected to surge 4,135% year-over-year to $8.47 per share, up from $0.20 per share in the same quarter a year ago. Revenue is forecast to soar 623.7% year-over-year to $842.71 million, compared to $116.45 million in the second quarter of 2019. GMAB is a Moderately Aggressive buy below $37.

SOM Technicals:

7-31-20: Closed at 34.50. Trade pressures are down. Volumes are bearish. The next target down is 32.04.

8-7-20: Closed at 36.52. Trade pressures are up. Volumes are bullish. the next target up is 37.79.

8-15-20: Closed at 36.92. Trade pressures are up but reversing. Volumes are neutral. The next target down is 33.09.

8-21-20: Closed at 38.23. Trade pressures are up. Volumes are bullish. At the 37.79 target. Expect consolidation here.

 

Quidel Corporation

Quidel Corporation (QDEL) is also making its first appearance on the Top 5 Stocks list this month, given its superior fundamentals and subsequent blowout earnings report on Thursday, July 30. Quidel is a diagnostic healthcare manufacturer that’s focused on improving the quality of healthcare. As such, Quidel has been on the frontlines of the recent pandemic, developing a diagnostic test for COVID-19.

So, it’s no wonder that Quidel crushed expectations for the second quarter. Total second-quarter revenue soared 86% year-over-year to $201.8 million, beating forecasts for $189.79 million. The company noted that it achieved sales of $109 million for its COVID-19 products during the quarter.

Quidel also revealed that second-quarter earnings surged 416.7% year-over-year to $1.86 per share, up from $0.36 per share in the second quarter of 2019. Analysts were expecting earnings of $1.09 per share, so QDEL posted a stunning 70.6% earnings surprise. QDEL is an Aggressive buy below $322.

SOM Technicals:

7-30-20: Closed at 282.47. Trade pressures are up. Volumes are bullish. The next target up is 367.57.

8-7-20: Closed at 272.76. Trade pressures are down. Volumes are bearish. The next target down is 259.83 the 25×5 MA.

8-15-20: Closed at 245.93. Trade pressures are up. Volumes are bearish. At the 25×5 MA. Should act as resistance. The next target down is 215.00.

8-21-20: Closed at 241.52. Trade pressures are in the neutral zone. Volume are bearish. Appears to want to test the 200.00 support level.

 

Zoom Video Communications, Inc.

Zoom Video Communications, Inc. (ZM) is a leading provider of online video and audio conference calls, as well as collaboration, chat and webinar tools. The company’s software-based conference room is utilized by businesses and individuals around the world. In fact, it’s become widely popular throughout the pandemic, with millions accessing the online platform daily to maintain business communications.

So, it’s not too surprising that Zoom had stunning first-quarter results. The company reported total first-quarter revenue growth of 169% and earnings growth of 555%. With many businesses still operating remotely and folks self-isolating at home amidst recent outbreaks, the analyst community is betting that Zoom’s second-quarter results will be equally impressive.

Zoom is expected to release second-quarter results in early September. Currently, analysts are looking for earnings of $0.45 per share, up 462.5% from the $0.08 per share reported in the second quarter of 2019. Analysts have also increased earnings estimates by 309% in the past two months, which bodes well for a fifth-straight quarterly earnings surprise. The company has posted a triple-digit earnings surprise in each of the last four quarters. ZM is an Aggressive buy below $305.

SOM Technicals:

7-30-20: Closed at 253.91. Trade pressures are down but rising into the neutral zone. Volumes are bearish. The next target down is 209.79.

8-7-20: Closed at 258.73. Trade pressures are down. Volumes are Bearish. The next target down is 239.12.

8-15-20: Closed at 244.91. Trade pressures are up. Volumes are bearish. Rising into net bearish volumes after reaching the 227.53. target. Need to get thru the 25×5 MA at 254.63, otherwise more downside.

8-21-20: Closed at 289.68. Trade pressures are up and trending. Volumes are bullish. The resistance was non- existent. A new long entry was triggered at 271.00.