Stocks in Play - December 3rd 2024

TLDR Stocks in Play: CRDO, ZS, JANX, CRBP, INTC, JOBY

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) Credo Tech (CRDO) (Rating: A, Multi-Day, Top Picks December🐶 )

Industry Group: Semiconductor/IT Components, Market Cap: $7.9b, Float: 133m, Short Interest: 5%, Days to Cover: 2.5, Exchange: NASDAQ

Catalyst: Solid Beat on EPS ($0.07 vs $0.05), Beat on Revs, 64% YoY Rev Growth, Big story is the strong Revenue Guide for Q3 ($115m-$125m vs. est. $86m), Surge in growth being attributed to insatiable demand from major Hyper scale Data Center Clients i.e. AI. Big infrastructure components sales and demand. They compete with AVGO and MRVL. Big analyst raises so far this morning from BOA & Needham to $70 & $80 respectively. This is running hard pre market, may be a better delayed reaction but I think it will offer opportunities today none the less. Note of interest, CRDO have large customer concentration, this led to a 45% one day drop in 2023 after a customer reduced orders significantly reducing their guide. Likely the same thing is happening here in opposite.

2) Zscaler (ZS) (Rating: B-, Single-Day)

Industry Group: Cybersecurity, Market Cap: $32b, Float: 94m, Short Interest: 4%, Days to Cover: 2, Exchange: NASDAQ

Catalyst: Looking for a reversal today on this. Clear areas of support with a small gap below $190 to $186. Holding this gap pre market, Strong EPS Beat ($0,77 vs est. $0.64), Operating Margins Beat, Revs Beat, Billings Beat, Full Year Guide EPS Beat, Slight Sales Beat. Q2 Guide is only Inline which is the reasoning behind the afterhours reaction but this is a very good report overall. Note that OKTA & S report this week also which are in similar CyberSec areas.

Honorable Mention to: JANX - Announced substantial clinical activity and response, Doses selected for Phase 1B Expansion, Big reaction after hours and this seems to be an institutionally owned stock (for a clinical stage Biotech) with a lot of analyst coverage. I would caution that we likely see a Stock Offering on this today or tomorrow as is common after positive early data. CRBP - Granted Fast Track Designation for Cervical Cancer Treatment. Very low float (10m), High Short Interest (22%). INTC - Likely to see fresh talks and rumors of buyout of the company after Gelsinger departure (Bloomberg Article). JOBY - Announced it has received a Part 141 certificate from the Federal Aviation Administration for its flight academy as well as FAA acceptance for its air operations voluntary Safety Management System. Doesn’t sound like big news but a hot Stock theme so worth a mention.

Market Awareness

Yesterday felt a bit leggy yesterday after last week. Maybe big players are still not back to work? Still ended with a strong day in the markets yesterday. I believe we will continue to run higher here and short of some new narrative that spooks the markets it’s foot to the floor time until told otherwise. Careful of intraday volatility and whipsaw action. Happy to grab and go quickly all the time.

After Hours I’m Watching: CRM, OKTA  (Earnings)

Tomorrow Morning I’m Watching: CHWY, DLTR (Earnings) , WMT Chief Revenue Officer Participating at UBS Global Tech & AI Conference

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

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.}