We have a few portfolio stocks that warrant attention this week, amid an ongoing sector rotation. Money is flowing out of overvalued tech stocks into quite a variety of undervalued industries.
The following buy-rated stocks all appear to have broken out of trading ranges on July 7:
Goldman Sachs (GS) about 11% upside to 252, where I might sell
PulteGroup (PHM) significant breakout from long-term resistance level
Quanta Services (PWR) about 15% upside to 38; will likely keep
Tesoro (TSO) about 16% upside to the 112 price target, where I will sell
Universal Electronics (UEIC) about 13% upside to 78, where I might sell
XL Group (XL) there’s no upside resistance, and the stock keeps rising
Cavium (CAVM) and the NASDAQ composite, and most tech stocks, exhibited double-bottom chart patterns last week, a harbinger of an immediate upturn in share prices. Risk-tolerant investors should buy CAVM now. Buy.
Invesco (IVZ) is approaching upside price resistance at 38-39 where it last traded in March 2015. I will very likely issue a sell recommendation this week when IVZ surpasses 38, to avoid a prolonged sideways trading period. Hold.