Stocks in Play - January 10th 2025

TLDR Stocks in Play: DAL, ARHS, WBA

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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I’m not trading today as I am travelling. Publishing this for consistencies sake from Mobile so excuse if I miss a SIP!

1) Delta Airlines (DAL) (Rating: C, Single-Day)

Industry Group: Airlines, Market Cap: $40b,  Float: 640m, Short Interest: 5.6%, Days to Cover: 4.2, Exchange: NYSE

Catalyst: Solid earnings report. Solid beat on EPS. Slight Beat on Revs. Positive management commentary and FCF Guide beat expectations for FY25. This stock, and airlines in general, id nowhere near neglected. This report was widely expected. I think there will be opportunity in this today but there certainly isn’t any surprise for the markets. The bullish outlook may be enough to continue the trend.

2) Arhaus Inc. (ARHS) (Rating: B+, Single-Day)

Industry Group: Home Improvement, Market Cap: $1.3b, Float: 50m, Short Interest: 11.4%, Days to Cover: 4.2, Exchange: NASDAQ

Catalyst: Pre Announced strong Earnings and accelerating demand. Modest Beat on Revs, The reason for the pre announce seems to be related to CFO stepping down. Meaningful short interest and relatively low float. The stock is quite neglected.

Honorable Mention to: WBA - Reported much stronger earnings than feared. Big beat on EPS ($0.51 vs est. $0.38), Strong beat on revs, negative is no change in forward guidance. 13% Short Interest, High Float. Sentiment is in the toilet for this stock and expectations are low. There are buyout rumours. This seems like enough of a beat to me to move the stock today, the talk on the call will be critical.

Market Awareness

There is a lot of bearish sentiment developing at the moment. I am agnostic for the most part. The markets are in no mans land for me, we aren’t anywhere near extreme enough for a proper bounce in my opinion. VIX has been spiking every day this week making it less than ideal conditions for swings. Hit and Run is the only way right now. Capturing singles and most important of all not getting chopped to pieces. We are coming into earnings season now so regardless of the market there will be many plenty of opportunity.

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

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.}