Stocks in Play - February 5th 2025

TLDR Stocks in Play: MAT, NVO, ENPH, PDD

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Irish Born Investor
February 05, 2025 • Estimated Reading Time: 5 minutes

Stocks in Play - February 5th 2025

TLDR Stocks in Play: MAT, NVO, ENPH, PDD

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) Mattel Inc. (MAT) (Rating: A, Multi-Day Top Pick February 🐸)

Industry Group: Consumer Durables, Market Cap: $6b, Float: 345m, Short Interest: 4%, Days to Cover: 4.31, Exchange: NASDAQ

Catalyst: Big EPS Beat ($0.35 vs est. $0.20), Slight Beat on Revs, Beat on EBITDA. Strong Margins and Beat on Guide even taking into account the impact of potential Tariffs. This is a good play if you believe tariffs will be a threat and not a result. The chart has been consolidating for several years and we are nowhere near all time highs. A solid breakout here could have legs. Non tech orientated.

2) Novo Nordisk (NVO) (Rating: B+, Multi-Day)

Industry Group: Pharmaceuticals, Market Cap: $275b, Float: 3.4b, Short Interest: 0.25%, Days to Cover: 1.31, Exchange: NYSE

Catalyst: Solid EPS Beat ($6.34 vs est. $5.82), Strong Beat on Revs, Revs growing 30% YoY. Revs Guide of 16-24% YoY and Operating Profit Beat. Outlook is a Big Beat. Stock is extremely beaten down. I think this has a good multi day move potential. Slower mover.

Honorable Mention to: PDD (SHORT) - With USPS halting the acceptance of mail from China & Hong Kong and Trump looking to close the loophole allowing TEMU & Shein to sell products into the US this puts a serious dent in PDD bullish narrative. This looks like an obvious SHORT idea today though I am wary that some positive macro news comes from Trump/China. ENPH - Solid earnings last night and meaningful short interest. Stock is seriously beaten down. Representatives (of several companies) are in DC today to lobby to maintain Tax Credits on Renewables (many of which are important to GOP states). This could move well if there are positive murmurs during the day.

Market Awareness

Yesterday turned into a choppy day. Masked by green indices there was very little movement to work with. All the moves happened over night. These are days to try recognize quickly and minimize trading or lower your targets. Range trading can work well but Breakouts and even SIPs tend not to continue to trend higher throughout the day.

Earnings reactions were negative last night. GOOG and AMD getting smashed and the indices red into the day. This is likely an easier day to work with than yesterday. I’m concentrating on the names that are less tech orientated today. Again I’m wary and waiting for Trump bombs throughout the day especially with the saber rattling going on between US and China. Not a swing environment.

After Hours I’m Watching: ARM, QCOM (Earnings)

Tomorrow Morning I’m Watching: RBLX, HON, PTON, LLY, HSY (Earnings)

Top Pick Watchlists:

Sources & Services I Use in my Trading:

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.

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