Stocks in Play - February 26th 2025

TLDR Stocks in Play: AXON, SMCI, TSLA

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

Note I missed yesterday, unfortunately it’s just going to be like that for me for the next two weeks or so until I’m back to my normal schedule.

If you find this Newsletter helpful and ever want to say thank you then feel free to Buy Me a Coffee. It’ll inspire me to work faster….

1) Axon (AXON) (Rating: A-, Multi-Day Top Pick February🐸)

Industry Group: Electronic Technology, Market Cap: $37b,  Float: 70m, Short Interest: 3.4%, Days to Cover: 2.7, Exchange: NASDAQ

Catalyst: Huge Beat on EPS ($2.08 vs $1.40), Solid beat on Revs, Beat on Margins, Guided ahead of expectations on EPS & Revs. Stock has taken a battering from the highs recently. Should be a strong performer with this US Administration. I won’t be surprised to see this at all time highs in a few weeks. Revs growing 33% YoY.

Honorable Mention to: TSLA - On a technical level and as a proxy for a market bounce I’m interested in TSLA. It has taken a steep decline in the past few weeks and the $300 level was defended yesterday. We are also coinciding with some selling pressure in the market. Several days down the Risk Reward is becoming quite skewed for a bounce. SMCI - Filed their late report. I think this was largely expected. I’m watching this for volatility today but I wouldn’t be surprised to see it fade (sell the news) at the open. Intraday opportunity in the afternoon.

Market Awareness

We’ve had some solid selling pressure. I think we are likely to see a bounce in bigger names. The air is being let out of a lot of stocks that went wild in the past 3 to 4 months. This is a good thing. Today I think we have potential for at least a one day relief bounce. I am looking for mainly day trades with possible 2 to 3 day swing on bounce/relief candidates.

After Hours I’m Watching: NVDA, CRM, AI, HNST, URBN, SNOW (Earnings)

Tomorrow Morning I’m Watching: NCLH, VST(Earnings)

Have a Great Weekend!

Top Pick Watchlists:

• Top Picks - November 2024

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

• Top Picks - December 2024 

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

• Top Picks - January 2025 

  • LONG: CEG, FUBO, BLK, GE

• Top Picks - February 2025 

  • LONG: MAT, PINS, AXON

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.}