Investors Get Defensive, but Bulls Remain in Charge
Current Market Outlook
After an impressive four-month rebound, many investors are nervously expecting the return of volatility during earnings season. But despite some recent choppiness among the leading stocks, the market remains largely unperturbed. Growth stocks are holding up well, while the major indices remain above their key trend lines. And while there are signs lately of increased demand in defensive areas of the market (like consumer staples and precious metals mining), the more aggressive segments remain strong. Finally, a healthy number of stocks are still making new 52-week highs on both major exchanges (especially the NYSE), while new lows have been remarkably sparse. All of this tells us that the intermediate-term trend still favors the bulls. While volatility may yet rear its head, we’ll continue to follow the weight of evidence.
This week’s list contains a nice mix of some of today’s leading themes: healthcare, internet, real estate/home improvement and education. Our Top Pick is Owens & Minor (OMI), which has a solid story and has broken out of an extended base on more than 10 times normal volume.
| Stock Name | Price | ||
|---|---|---|---|
| Farfetch (FTCH) | 26.23 | ||
| Floor & Décor (FND) | 68.03 | ||
| GSX Techedu (GSX) | 97.59 | ||
| Invitae (NVTA) | 32.06 | ||
| Meritage Homes (MTH) | 102.20 | ||
| Owens & Minor (OMI) | 17.01 | ||
| SailPoint Technologies (SAIL) | 31.60 | ||
| Sea Limited (SE) | 132.86 | ||
| Watsco (WSO) | 237.50 | ||
| Wix.com (WIX) | 302.53 |
Farfetch (FTCH)
Why the Strength
Luxury sellers have suffered as much as other retailers in the current pandemic, but some have managed to prosper in the current environment. Farfetch (covered on June 29) is one such standout, thanks to this year’s seismic shift to online shopping among brand-conscious consumers. With products from over 700 global boutiques and brands across 190 countries, it specializes in online sales. While other retailers saw a sales collapse during shutdowns, Farfetch witnessed a first-quarter explosion in online visits (+45%), revenue (+90%) and active customers (+27%). Sales were so strong in Q1 that the firm expects to achieve profitability in 2021. Last August, Farfetch acquired luxury brand designer and distributor New Guard Group, further extending its platform upstream into design and manufacturing. The acquisition was successfully integrated in Q1 and will help Farfetch expand its existing brand portfolio and outreach by leveraging its strengths with New Guard’s sourcing, production and merchandising expertise. Moreover, the firm’s $422 million in cash should allow it to ride out any economic storms that might be ahead (it also raised an additional $350 million in April). And its China operations should allow Farfetch to penetrate the world’s most important consumer luxury market. Analysts see revenue growth of 54% in Q2, along with a 60% per-share earnings increase, and they expect continued top- and bottom-line growth into 2023. The firm’s commitment to luxury brand expansion and development, along with its increasing exposure to China, should keep the growth going for years to come. Earnings are expected August 13.
Technical Analysis
FTCH had a bumpy ride after coming public in September in 2018, falling from a post-IPO high of 32 to this year’s March low at 6. Things changed for the better in April, however, as shares galloped ahead for five straight weeks after the low (including one on huge buying volume). After a modest three-week retreat in May, FTCH has been on the upswing ever since. Some volatility can probably be expected, but we’re okay taking a swing here or (preferably) on pullbacks.
| Market Cap | $5.99B | EPS $ Annual (Dec) | |
| Forward P/E | N/A | FY 2018 | -0.52 |
| Current P/E | N/A | FY 2019 | -0.55 |
| Annual Revenue | $1.18B | FY 2020e | -1.06 |
| Profit Margin | N/A | FY 2021e | -0.77 |
| Qtrly Rev | Qtrly Rev Growth | Qtrly EPS | Qtrly EPS Growth | |
| ($M) | (vs. yr-ago-qtr) | ($) | (vs.yr-ago-qtr) | |
| Latest qtr | 331 | 90% | -0.24 | N/A |
| One qtr ago | 382 | 95% | -0.08 | N/A |
| Two qtrs ago | 256 | 90% | -0.20 | N/A |
| Three qtrs ago | 209 | 43% | -0.16 | N/A |
FTCH Weekly Chart
FTCH Daily Chart
Floor & Décor (FND)
Why the Strength
With virtually everything home-related showing strength today (thanks in no small part to lockdowns), Floor & Décor is thriving. The company, which has 120 warehouse-format retail stores in 30 states (they average 76,000 square feet), specializes in all types of hard flooring (wood, tile, stone, laminate, etc.). Consequently, it’s benefiting as consumers shift away from carpet to higher quality materials and hard flooring. The firm also has growth on its mind, and management believes it can eventually have 400 stores in the U.S. First quarter results, which were affected a bit by the virus (there were a few store closings, some limited hours and much curbside pickup), saw revenues of $555 million, up 16% from the year before. It also featured per-share earnings of 34 cents, up 17% from the year before. Second quarter results may show more damage from the shut-in (the average analyst estimate is for per-share earnings of only 7 cents), but the chart is telling a different story, and undoubtedly, that’s because investors are looking ahead. Indeed, a growing number of analysts believe that the latest trend toward home improvement has legs. We concur, as Floor & Décor has the potential to ride the wave while continuing its national expansion. Earnings are expected July 30.
Technical Analysis
FND was last recommended here on February 24, and we exited soon after, avoiding the market-driven plunge that took the stock down to 24 in March. But the stock has roared back since then, and the best part of the picture is last week’s breakout, which followed a brief base centered on the stock’s old high of 60. Earnings-related volatility is possible this week, so be sure to use a close stop if you choose to enter ahead of the announcement.
| Market Cap | $6.94B | EPS $ Annual (Dec) | |
| Forward P/E | 80 | FY 2018 | 0.97 |
| Current P/E | 55 | FY 2019 | 1.15 |
| Annual Revenue | $2.12B | FY 2020e | 0.85 |
| Profit Margin | 6.5% | FY 2021e | 1.29 |
| Qtrly Rev | Qtrly Rev Growth | Qtrly EPS | Qtrly EPS Growth | |
| ($M) | (vs. yr-ago-qtr) | ($) | (vs.yr-ago-qtr) | |
| Latest qtr | 555 | 16% | 0.34 | 17% |
| One qtr ago | 527 | 21% | 0.26 | 30% |
| Two qtrs ago | 521 | 20% | 0.27 | 13% |
| Three qtrs ago | 520 | 20% | 0.34 | 26% |
FND Weekly Chart
FND Daily Chart
GSX Techedu (GSX)
Why the Strength
The global pandemic has seen an explosion in demand for web-based education providers as primary schools have shut their doors in COVID’s wake. China-based GSX Techedu, which provides after-school online tutoring for K-12 students in China, is a leader in this emerging trend. Its course offerings cover all primary and secondary grades, as well as foreign language, professional and special interest courses. Using data analytics, it tailors the curriculum to improve the learning experience, and its interactive online platform is designed to facilitate student participation (beginning with live large classes, then splitting into smaller groups complete with multiple tutors). Because the firm was established in online teaching before the pandemic, it has outperformed many of its after-school education peers. Indeed, the massive boost in pandemic-related demand was clearly evident in the first quarter, during which the firm reported revenue of $183 million (+382%) and net income of $143 million (+336%). Wall Street sees the outperformance continuing, with top-line growth of around 350% forecast for Q2 (basically in-line with the company’s own estimates). Analysts further expect a triple-digit increase in both revenue and per-share earnings for the next two quarters. While GSX has its doubters, the firm’s proprietary broadcasting platform and operational efficiency should give it an edge over its competitors going forward. We like the story.
Technical Analysis
GSX was a target for the bears earlier this year (several research firms issued untimely sell-short recommendations this spring), but the stock has given them plenty of grief due to its persistent strength. After bouncing around a sideways range during February-May, shares exploded higher in June, rising from a low of 30 to an all-time high of 90 in July. You could do some nibbling here, but buying on dips is preferred.
| Market Cap | $19.4B | EPS $ Annual (Dec) | |
| Forward P/E | 214 | FY 2018 | 0.02 |
| Current P/E | 329 | FY 2019 | 0.16 |
| Annual Revenue | $447M | FY 2020e | 0.39 |
| Profit Margin | 14.7% | FY 2021e | 0.75 |
| Qtrly Rev | Qtrly Rev Growth | Qtrly EPS | Qtrly EPS Growth | |
| ($M) | (vs. yr-ago-qtr) | ($) | (vs.yr-ago-qtr) | |
| Latest qtr | 183 | 357% | 0.11 | 450% |
| One qtr ago | 134 | 406% | 0.11 | 450% |
| Two qtrs ago | 78 | 441% | 0.01 | N/A |
| Three qtrs ago | 51.5 | 395% | 0.02 | N/A |
GSX Weekly Chart
GSX Daily Chart
Invitae (NVTA)
Why the Strength
A large number of today’s diseases are hereditary, so genetic testing makes it easier for medical professionals to diagnose dangerous ailments like cancer and heart disease. InVitae (covered in the June 29 issue) offers testing that gathers genetic info across every stage of a patient’s lifespan and consolidates it into a single low-cost, rapid turnaround service. Indeed, the company was instrumental in drastically lowering genetic testing costs—from several thousands of dollars to just $250 today. It also provides cancer screening services which, if detected early enough, allows a patient to undergo immunotherapy. The company’s top-line growth rate is stellar, with revenue growing at an average annual rate of 170% since 2014. And while 2020 started off super strong up until March (when volumes fell around 50%, prompting the firm to suspend guidance), analysts foresee revenue growth of 100% for 2021. InVitae’s recent acquisition of ArcherDX (which provides labs with solutions to produce high-quality genetic data and has partnerships with 50 biopharma firms) is also expected to generate an additional 50%-plus annual growth in the next three to five years. The addressable market for genetic testing is huge and predicted to reach $17 billion by 2025 (from $7 billion in 2017), giving InVitae a large runway for future growth. Long story short, InVitae’s growth strategy should ensure that it attains a leadership position in this industry. Earnings are expected August 4.
Technical Analysis
We just missed our entry price for NVTA last month, so we’re taking another stab now that the stock has pulled back to a more attractive level. NVTA had a robust rally in June after the Archer buyout was announced, with the stock exploding higher on massive volume. An orderly pullback followed in the second half of July, which has brought the stock closer to its 50-day line. You could do some nibbling here and down to around the 25 level.
| Market Cap | $3.72B | EPS $ Annual (Dec) | |
| Forward P/E | N/A | FY 2018 | -1.98 |
| Current P/E | N/A | FY 2019 | -2.35 |
| Annual Revenue | $241M | FY 2020e | -2.50 |
| Profit Margin | N/A | FY 2021e | -1.63 |
| Qtrly Rev | Qtrly Rev Growth | Qtrly EPS | Qtrly EPS Growth | |
| ($M) | (vs. yr-ago-qtr) | ($) | (vs.yr-ago-qtr) | |
| Latest qtr | 64.3 | 58% | -0.80 | N/A |
| One qtr ago | 66.3 | 46% | -0.66 | N/A |
| Two qtrs ago | 56.5 | 51% | -0.69 | N/A |
| Three qtrs ago | 53.5 | 43% | -0.52 | N/A |
NVTA Weekly Chart
NVTA Daily Chart
Meritage Homes (MTH)
Why the Strength
Meritage (which we wrote about last month) builds single-family detached homes across the U.S., as well as active adult communities and luxury real estate in Arizona. Pent-up housing demand related to coronavirus lockdowns, coupled with low interest rates, have boosted the company’s prospects. And the good news just keeps coming. Last month, new home sales rose 14% (from May), with 776,000 units sold. Existing home sales rocketed by 21%, while the average 30-year loan rate is around 3%—all of which bodes well for the intermediate-term outlook. Meritage has also begun to focus on building entry-level communities as a way to address the housing affordability issue for first-time home buyers. That strategy is paying off, as the company reported second quarter per-share earnings of $2.38, handily beating analysts’ estimates of $1.52 (+82%). Revenues, meanwhile, were $1.04 billion, up 19%, on a 23% increase in closed volume. Meritage boasts a compound annual revenue growth rate of 14% over the last decade, and in its latest quarter saw 3,597 total orders—an all-time record for the firm and 32% higher than the year-ago quarter. It also set an all-time record in May for single-month orders (a total of 1,320 homes), which was surpassed in June with another new record of over 1,500 orders. Going forward, Meritage expects around $4 billion in home closing revenues in 2020 and sees the housing market recovery continuing. It’s a solid story.
Technical Analysis
MTH shares traded in a tight range from last July to March of this year, between 65 and 75. The stock dropped sharply in March, however, as the pandemic gave an unexpected surprise to the home building stocks. But the stock rebounded impressively in April and has built some impressive momentum. You could take a swing here, but we prefer aiming for pullbacks.
| Market Cap | $3.44B | EPS $ Annual (Dec) | |
| Forward P/E | 12 | FY 2018 | 5.58 |
| Current P/E | 10 | FY 2019 | 6.42 |
| Annual Revenue | $4.03B | FY 2020e | 8.80 |
| Profit Margin | 8.7% | FY 2021e | 9.97 |
| Qtrly Rev | Qtrly Rev Growth | Qtrly EPS | Qtrly EPS Growth | |
| ($M) | (vs. yr-ago-qtr) | ($) | (vs.yr-ago-qtr) | |
| Latest qtr | 1038 | 19% | 2.38 | 82% |
| One qtr ago | 905 | 27% | 1.83 | 182% |
| Two qtrs ago | 1142 | 13% | 2.65 | 39% |
| Three qtrs ago | 945 | 6% | 1.79 | 35% |
MTH Weekly Chart
MTH Daily Chart
Owens & Minor (OMI)
Why the Strength
Who knew that producing facial protection products would ever become a hot business? But in this era of the raging coronavirus, one company stands out. OMI not only provides masks, gloves, surgical drapes and gowns, but it also makes sterilization wraps, custom and minor procedure kits and other medical products. The company made waves last week after it announced preliminary financial results for its second quarter, increasing its yearly earnings guidance to $1 to $1.20 per share, nearly double its estimates from three months ago. The company is forecasting that EPS for the quarter will be 18-20 cents, a far cry from the negative 3 cents that analysts had been predicting. Much of that increase is due to the demand for protective devices, but the company also expects that elective procedures will ramp up again, adding to its revenues (though with the debate over re-opening and even re-closing some cities, that may not be as rosy as predicted). The company has attracted the attention of hedge funds (16 to be exact), and analysts are raising their estimates—forecasting growth of 37% for the company next year—and upgrading the shares to “buy.” No one knows how long the pandemic will last, but when it fades and the economy strengthens, OMI’s foothold on the market should allow it to maintain its market edge. Earnings are expected on August 4.
Technical Analysis
Looking at the long-term chart, OMI has just the kind of set-up we like to see. The stock established an extended base between last September and this June, which set the stage for the huge upside move last week. The blast-off from the launching pad occurred on 20 times normal volume, which is typically the signature of heavy institutional buying. You could enter here or on dips.
| Market Cap | $945M | EPS $ Annual (Dec) | |
| Forward P/E | 17 | FY 2018 | 1.15 |
| Current P/E | 29 | FY 2019 | 0.52 |
| Annual Revenue | $8.98B | FY 2020e | 0.90 |
| Profit Margin | 0.1% | FY 2021e | 1.00 |
| Qtrly Rev | Qtrly Rev Growth | Qtrly EPS | Qtrly EPS Growth | |
| ($M) | (vs. yr-ago-qtr) | ($) | (vs.yr-ago-qtr) | |
| Latest qtr | 2.12 | -10% | 0.04 | -33% |
| One qtr ago | 2.19 | -10% | 0.26 | 189% |
| Two qtrs ago | 2.33 | 0% | 0.11 | -69% |
| Three qtrs ago | 2.33 | 0% | 0.11 | -69% |
OMI Weekly Chart
OMI Daily Chart
SailPoint Technologies (SAIL)
Why the Strength
With cloud migration accelerating, the need for identity security among companies has never been greater. SailPoint is fast becoming a leader in this space by providing cloud-based identity management software that allows enterprises to remain compliant with ever-increasing data regulations. A key to its rapid growth has been an emphasis on innovation, which has kept it one step ahead of its competitors (especially during recent lockdowns). Another pivotal move which provided SailPoint with a competitive edge was the dual acquisitions it made late last year (Orkus and OverWatchID). Both were quickly integrated into the SailPoint Predictive Identity platform prior to the pandemic, giving customers access to a new machine learning-based approach to governing cloud environments. The firm also continues to develop its own predictive identity software to help ensure customers’ cyber security as more customers shift to a virtual workforce. SailPoint’s rapid-fire innovation was reflected in Q1, which featured 25% revenue growth (an improvement from the prior quarter’s 11% top-line growth). Subscription revenue increased 38%—or 58% of total revenue—in the quarter (the company expects subscriptions to account for more than half its total revenue going forward). Its sales pipeline also continues to grow and improve in quality. As identity governance solutions acquire a greater significance amid the new work-from-home paradigm, SailPoint’s story looks solid. Earnings are expected August 6.
Technical Analysis
SAIL lagged many of its peers for much of 2019 before finally bottoming out in March. The stock embarked on a smooth-and-steady upward trend in April, with scant volatility in the months since then. The stock has become a bit extended from its 50-day line, however, and with earnings season well underway, some near-term volatility wouldn’t surprise us. We’re fine taking a stab here.
| Market Cap | $2.75B | EPS $ Annual (Dec) | |
| Forward P/E | 611 | FY 2018 | 0.34 |
| Current P/E | 127 | FY 2019 | 0.20 |
| Annual Revenue | $303M | FY 2020e | 0.05 |
| Profit Margin | 5.4% | FY 2021e | 0.08 |
| Qtrly Rev | Qtrly Rev Growth | Qtrly EPS | Qtrly EPS Growth | |
| ($M) | (vs. yr-ago-qtr) | ($) | (vs.yr-ago-qtr) | |
| Latest qtr | 75.4 | 25% | 0.04 | N/A |
| One qtr ago | 89 | 10% | 0.15 | 0% |
| Two qtrs ago | 75.9 | 15% | 0.07 | -30% |
| Three qtrs ago | 63 | 17% | -0.01 | N/A |
SAIL Weekly Chart
SAIL Daily Chart
Sea Limited (SE)
Why the Strength
Online sales and gaming in Southeast Asia are still under-penetrated and represent a huge market opportunity, especially in COVID’s wake. Singapore-based Sea Limited is filling this void by transforming the e-commerce, financial services and entertainment landscape in that region, as well as in Taiwan and Latin America. Its online shopping (Shopee) and gaming (Garena) segments have been compared to Amazon and Activision, and its digital payments arm, SeaMoney, offers e-wallet services, payment processing and other financial products. Sea impressed in the first quarter, with Shopee registering top-line growth of 74% and setting a new record high for gross merchandise volume (GMV) of $6.2 billion as consumers increasingly rely on it for their daily staple and consumption needs, while merchants use it to increase sales. Digital financial services, meanwhile, grew 278% as Sea expanded its mobile wallet services to include other online and offline merchants. But the clear growth driver is Garena, which mainly distributes games from third-party developers in Southeast Asia. And it’s fast becoming a global game publisher in its own right; its first mobile game, Free Fire, was released in 2017 and topped Google play store and Apple iOS charts in Latin America and Asia. Highlighting Garena’s strength, segment revenue rose 30% in Q1 to a record-breaking $512 million—driven by strong growth in both active (+48%) and paying (+73%) users of the platform. Looking ahead, analysts see revenue in the 50-60 percent range in the next three quarters. Add to that favorable demographics in its target markets and Sea looks to have a healthy growth trajectory ahead.
Technical Analysis
SE’s decline during the March panic was far less severe than most stocks, and it quickly recovered later that month before blasting off in April. Shares rose from 40 in April to 125 in early July before taking a breather. SE has spent most of the past month “correcting” its excesses from the post-panic rally, but has found support above the 50-day line. We’re okay doing some nibbling here, albeit with a fairly tight leash.
| Market Cap | $49.9B | EPS $ Annual (Dec) | |
| Forward P/E | N/A | FY 2018 | -2.79 |
| Current P/E | N/A | FY 2019 | -2.00 |
| Annual Revenue | $2.54B | FY 2020e | -1.80 |
| Profit Margin | N/A | FY 2021e | -1.11 |
| Qtrly Rev | Qtrly Rev Growth | Qtrly EPS | Qtrly EPS Growth | |
| ($M) | (vs. yr-ago-qtr) | ($) | (vs.yr-ago-qtr) | |
| Latest qtr | 715 | 103% | -0.52 | N/A |
| One qtr ago | 777 | 174% | -0.53 | N/A |
| Two qtrs ago | 610 | 198% | -0.60 | N/A |
| Three qtrs ago | 436 | 137% | -0.52 | N/A |
SE Weekly Chart
SE Daily Chart
Watsco (WSO)
Why the Strength
Like many other industries, the heating and cooling sector has been disrupted by the coronavirus but is still seeing some good results. Watsco, the maker of HVAC equipment and parts, saw its HVAC equipment sales (about 70% of revenues) drop by about 4% in second quarter. But the company surprised Wall Street last week when it reported that both earnings and revenues beat Wall Street’s estimates, coming in at $2.26 per share and $1.36 billion, topping forecasts by 18.3% and 4%, respectively. After slowing sales in April, the residential business caught fire, and Watsco saw a great improvement in June, with double-digit sales increases. Adapting to the pandemic, Watsco has invested in curbside pickup options, improved digital customer outreach, and has aided its HVAC contractors by providing a digital sales platform that enables them to remotely generate proposals for homeowners. This has been so successful that Watsco’s e-commerce grew to 33% of all sales (compared to 29% at the end of 2019). The company also expanded its consumer financing options and increased its mobile app usage by 34%. Watsco’s financials look healthy, as it generated its highest cash flow in history during the quarter, ending the period with an $80 million cash cushion. It also increased its dividend, which is now 3.12% (or a hefty $7.10 per share). The company’s flexibility has positioned it to navigate through this pandemic and puts it on a good runway for future growth.
Technical Analysis
Shares of WSO didn’t go much of anywhere until March, when they spiked, then temporarily dropped by 13%. Since then, they have rebounded and have done nicely since last week’s earnings release. You could buy here, but pullbacks are optimal for entry.
| Market Cap | $8.72B | EPS $ Annual (Dec) | |
| Forward P/E | 40 | FY 2018 | 6.49 |
| Current P/E | 38 | FY 2019 | 6.50 |
| Annual Revenue | $4.83B | FY 2020e | 6.10 |
| Profit Margin | 6.4% | FY 2021e | 6.45 |
| Qtrly Rev | Qtrly Rev Growth | Qtrly EPS | Qtrly EPS Growth | |
| ($M) | (vs. yr-ago-qtr) | ($) | (vs.yr-ago-qtr) | |
| Latest qtr | 1.36 | -1% | 2.26 | -6% |
| One qtr ago | 1.01 | 8% | 0.72 | -18% |
| Two qtrs ago | 1.07 | 8% | 0.92 | -10% |
| Three qtrs ago | 1.39 | 8% | 2.20 | 4% |
WSO Weekly Chart
WSO Daily Chart
Wix.com (WIX)
Why the Strength
Israel-based Wix.com offers a web development platform that enables both amateur and professional users to easily build a web presence for very low cost, then ratchets up the cash flow from these users by providing increasingly valuable services as the business grows. At the top end, the company’s Corvid is an open development application that enables serverless computing, hassle-free coding, unified data management, and business and marketing tools that help Wix’s global customer base succeed (55% of its users are in North America, 25% in Europe, with the rest concentrated in Asia and Latin America). In the first quarter, revenues were $216 million, up 24% from the year before (and the loss of a penny per share was due to exceptional efforts adapting to COVID). But the real action started in April, as the shift to online commerce accelerated across the globe (Wix users are in 190 countries). In that month alone, the company added 3.2 million new users (there are now more than 150 million), revenues from the April 2020 cohort were 76% higher than revenues from the April 2019 cohort, and net premium subscriptions were up 207% from the year before. For the second quarter, analysts are forecasting an average of 26 cents per share, down from 34 cents the year before. But we anticipate the results will be better than that, simply because when business is expanding this fast, it’s hard for analysts to keep up. Earnings are expected August 6.
Technical Analysis
We sold WIX for a profit (too early) a few weeks back, and now that the stock has pulled back closer to its 50-day line, we have a new opportunity to get back on board at a decent entry point. Aggressive investors can enter here or on a pullback down to around 257.
| Market Cap | $13.9B | EPS $ Annual (Dec) | |
| Forward P/E | 273 | FY 2018 | 1.07 |
| Current P/E | 239 | FY 2019 | 1.17 |
| Annual Revenue | $803M | FY 2020e | 0.98 |
| Profit Margin | N/A | FY 2021e | 1.23 |
| Qtrly Rev | Qtrly Rev Growth | Qtrly EPS | Qtrly EPS Growth | |
| ($M) | (vs. yr-ago-qtr) | ($) | (vs.yr-ago-qtr) | |
| Latest qtr | 216 | 24% | -0.01 | N/A |
| One qtr ago | 205 | 25% | 0.39 | -7% |
| Two qtrs ago | 197 | 26% | 0.41 | 5% |
| Three qtrs ago | 185 | 27% | 0.34 | 17% |
WIX Weekly Chart
WIX Daily Chart
Previously Recommended Stocks
Below you’ll find Cabot Top Ten Trader recommended stocks. Those rated HOLD are stocks that traded within our suggested buy range within two weeks of appearing in the Top Ten and still look good; hold if you own them. Stocks rated WAIT have yet to dip into our suggested buy range … but can be bought if they do so within the next week.
Those stocks rated SELL should be sold if you own them; they will no longer be listed here. Finally, Stocks in the DROPPED category are those that failed to trade within our buy range within two weeks of our recommendation; that’s not a bad thing, we just never got the price we wanted. Please use this list to keep up with our latest thinking, and don’t hesitate to call or email us with any questions you may have. New recommendations each week are in green.
| HOLD | |||||
| 7/20/20 | ANGI Homeservices | ANGI | 14.5-16 | 15 | |
| 7/13/20 | Alibaba | BABA | ? | 244-254 | 251 |
| 7/20/20 | Arconic | ARNC | 15-16.5 | 17 | |
| 5/4/20 | Bandwidth | BAND | ? | 90-94 | 142 |
| 6/22/20 | Big Lots | BIG | 32.5-35 | 42 | |
| 6/1/20 | Bill.com | BILL | 69-73 | 83 | |
| 7/6/20 | Biohaven Pharm. | BHVN | 68-72 | 70 | |
| 7/20/20 | Bloom Energy | BE | 15-16.5 | 16 | |
| 6/8/20 | Carrier Global | CARR | 21.5-23 | 26 | |
| 5/11/20 | Chegg | CHGG | ? | 58-62 | 74 |
| 3/23/20 | Cloudflare | NET | 19-21 | 37 | |
| 3/23/20 | Coupa Software | COUP | 124-132 | 293 | |
| 6/29/20 | Crispr Therapeutics | CRSP | 71.5-75 | 92 | |
| 4/20/20 | CrowdStrike | CRWD | 65-67.5 | 104 | |
| 6/8/20 | Datadog | DDOG | 72.5-77 | 88 | |
| 11/11/19 | Dexcom | DXCM | 196-205 | 423 | |
| 9/9/19 | DocuSign | DOCU | ? | 55-58 | 196 |
| 7/20/20 | DR Horton | DHI | 61.5-64 | 67 | |
| 6/29/20 | Farfetch | FTCH | 16-17.5 | 22 | |
| 5/18/20 | Fastly | FSLY | 36-39 | 80 | |
| 7/20/20 | GDS Holdings | GDS | 78-82 | 80 | |
| 5/26/20 | Horizon Therapeutics | HZNP | 45.5-48 | 59 | |
| 4/20/20 | Immunomedics | IMMU | 20.5-22 | 43 | |
| 3/16/20 | Inphi | IPHI | ? | 62.5-66 | 124 |
| 7/13/20 | Kinross Gold | KGC | 7.2-7.6 | 9 | |
| 6/22/20 | LGI Homes | LGIH | 84-87 | 117 | |
| 6/15/20 | Lululemon | LULU | ? | 291-301 | 332 |
| 6/8/20 | Marvell Tech | MRVL | 32.5-34 | 36 | |
| 6/29/20 | Meritage Homes | MTH | 71.5-74 | 98 | |
| 6/15/20 | Novovax | NVAX | 47-50.5 | 140 | |
| 7/6/20 | Nu Skin Enterprises | NUS | 42.5-45 | 44 | |
| 3/30/20 | Nvidia | NVDA | 250-270 | 417 | |
| 3/30/20 | Okta | OKTA | ? | 118-126 | 206 |
| 7/13/20 | Pacira Pharmaceuticals | PCRX | 54-56 | 53 | |
| 6/1/20 | Pan American Silver | PAAS | 27-29 | 39 | |
| 4/27/20 | PayPal | PYPL | ? | 117-122 | 178 |
| 4/6/20 | Peloton | PTON | 27-29 | 64 | |
| 7/20/20 | Plug Power | PLUG | ? | 8.0-8.7 | 8 |
| 7/13/20 | Redfin | RDFN | 34.5-36.5 | 43 | |
| 6/22/20 | Restoration Hardware | RH | ? | 240-255 | 292 |
| 7/13/20 | Roku | ROKU | 147-154 | 156 | |
| 3/2/20 | Seattle Genetics | SGEN | ? | 107-111 | 171 |
| 5/26/20 | Spotify | SPOT | ? | 184-191 | 273 |
| 7/13/20 | Splunk | SPLK | 192-198 | 203 | |
| 6/29/20 | Staar Surgical | STAA | 56-59 | 57 | |
| 7/13/20 | Sunrun | RUN | 27.5-29.5 | 43 | |
| 10/28/19 | Teladoc | TDOC | 69-72 | 213 | |
| 11/11/19 | Tesla | TSLA | 320-335 | 1540 | |
| 6/8/20 | Thor Industries | THO | 101-106 | 117 | |
| 6/8/20 | Trade Desk | TTD | 338-358 | 432 | |
| 5/11/20 | Twilio | TWLO | 175-187 | 253 | |
| 7/6/20 | Ultragenyx Pharm. | RARE | ? | 83-88 | 81 |
| 7/20/20 | Vapotherm | VAPO | 44-47 | 50 | |
| 5/11/20 | Wingstop | WING | 116-122 | 135 | |
| 7/13/20 | XP Inc. | XP | 43-46 | 47 | |
| 2/24/20 | Zoom Video | ZM | ? | 96-104 | 252 |
| 4/6/20 | Zscaler | ZS | 61-64 | 125 | |
| WAIT | |||||
| 7/20/20 | SAIA Inc | SAIA | 120-125 | 129 | |
| SELL RECOMMENDATIONS | |||||
| 7/6/20 | Alarm.com | ALRM | 64-67 | 68 | |
| 5/11/20 | MercadoLibre | MELI | 750-790 | 1070 | |
| 6/22/20 | Mersana Therapeutics | MRSN | 20-22 | 21 | |
| 6/22/20 | Nuance Communications | NUAN | 23.5-25 | 27 | |
| DROPPED | |||||
| None this week | |||||
The next Cabot Top Ten Trader issue will be published on August 3, 2020.