Stocks in Play - December 10th 2024

TLDR Stocks in Play: UNFI, MDB, BA, QURE, AI

Welcome to today's Stocks in Play report. Below are the key stocks to watch, along with brief x-ray and analysis.

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1) United Natural Foods (UNFI) (Rating: B-, Single-Day)

Industry Group: Food Distributors, Market Cap: $1.6b, Float: 57m, Short Interest: 6%, Days to Cover: 4.6, Exchange: NASDAQ

Catalyst: Huge Beat on EPS ($0.16 vs est. -$0.01), Solid Beat on Revs, Raised Revs Guide and EPS Guide. Guide has a wide range but is technically a beat. I usually don’t like to see such a range on the guide which is a small negative for me. Low volume pre market but worth watching today for a move. Stock has made a strong move in 2024 but is still far off All Time Highs.

2) MongoDB Inc. (MDB) (Rating: C, Single-Day)

Industry Group: Packaged Software, Market Cap: $23.35b, Float: 107m, Short Interest: 20.7%, Days to Cover: 4.75, Exchange: NASDAQ

Catalyst: On the surface looks like very strong earnings. Big Beat on EPS, Solid Beat on Revs, Beat on Operating Margins, Beat on Guide for Revs & EPS. The negative came on the Earnings Call where they let slip that the upside was due to small number of large multi year deals. This led to the drop after hours. That being said I’m watching it for a reversal today.

Honorable Mention to: QURE- Alignment with FDA on Key Elements of Accelerated Approval Pathway for AMT-130 in Huntington’s Disease (Highly Volatile) currently up 80% pre market. BA - Restarted Production of 737 MAX. AI - Beat on EPS, Beat on Revs, Beat on Revs Guide, Miss on EPS Guide. Very High Short Interest. Fading hard, but maybe reasonable for a reversal.

Market Awareness

China worked as a day trade yesterday but rugging everyone this morning as is the China way. Still I think the theme may have some legs so worth watching. As mentioned yesterday all of these stocks are trading in tandem. Never take on too much risk with multiple positions as they will all move together. I’m short term bearish. I am planning for a potential red market day today and tomorrow at least before a bounce. This doesn’t mean I’m shorting it just means I will be very tactical in my trades, looking for small moves to grab a more conservative R if I take a trade.

After Hours I’m Watching: GME, PLAY (Earnings)

Tomorrow Morning I’m Watching: M, (Earnings) CPI Data - 08:30am EST., MTCH - Investor Day

Top Pick Watchlists:

• Top Picks - November 2024

  • LONG: ALAB, HNST, SNOW, ESTC, RKLB, SMTC, URBN, PLTR, GAP, TSLA, SE, RDDT, DESP

  • SHORT: TGT

• Top Picks - December 2024 

  • LONG: CRDO, MRVL, OKTA, FIVE, RBRK

Sources & Services I Use in my Trading:

• Finviz - Short Interest, Float, Articles, Fundamentals (Free)

• Benzinga Pro - News Source + News Squawk + Earnings Data (Paid)

• Tradingview - Charting & Scanning (Paid)

• Koyfin - Fundamental Data (Paid)

• EarningsWhispers - Earnings Calendar (Free)

• Tradersync - Trade Journal (Paid)

_{PS: There are many ways to trade stocks in play. It does not have to be the one that keeps going straight up and sometimes it doesn’t even have to be day one of the catalyst. Everyone must find a setup, timeframe and method that works for them. This list is supposed to educate on the criteria I use and the methods in which I find Stocks in Play. Yours may differ and that is completely okay.}