Stocks in Play - December 20th 2024

TLDR Stocks in Play: FDX, HUMA, NVO, The Market

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) FedEx Corp (FDX) (Rating: B+, Multi-Day)

Industry Group: Couriers, Market Cap: $95b, Float: 222m, Short Interest: 1.8%, Days to Cover: 2.1, Exchange: NYSE

Catalyst: Slight beat on EPS ($4.05 vs est. $3.98), Beat on Operating Margins, Slight Miss on Revs. Positive results from cost cutting measures. Company planning to Spin out it’s Freight business. This is the main reason for a bullish move. Held well overnight just below $300 level.

2) Humacyte (HUMA) (Rating: B, Single-Day)

Industry Group: Biotech, Market Cap: $730m,  Float: 75m, Short Interest: 19.5%, Days to Cover: 6.5, Exchange: NASDAQ

Catalyst: Received FDA Approval of SYMVESS for the treatment of Extremity Vascular Trauma. Up 70% Pre Market, High Short Interest. SYMVESS is a first-in-class bioengineered human tissue designed to be a universally implantable vascular conduit for use in arterial replacement and repair. As always caution with Biotechs.

Honorable Mention to: NVO/LLY/VKTX - NVO released a slightly underwhelming Phase 3 Trial data today. 22.7% weight loss vs expectations of 25% on their new obesity drug. The reaction was almost 26% to the low which seems very overdone. LLY & VKTX spiked green in contrast. I’ll be watching these today. I think VKTX might be the easiest to trade with 17% Short Interest. Also MYSZ is a low priced stock that is squeezing off of the same news.

Market Awareness

Nice sell off over night. Exactly what we want to see at this point. Some panic this morning and light PCE data has given the market a rally off the lows. I would not chase this, thinking market is going to go hard green, it might. But it’ll also want to catch the FOMO people this morning. Everything will trade up or down in tandem today. So if the market pulls your stock pulls too. Be cognisant of this. I will be patient. There is a lot of volatility so plenty of opportunities for those that are smart and keeping their head. Likely a good idea to stick with ETFs today. I am cautious and tactical.

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, AVGO

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.}