Stocks in Play - January 23rd 2025

TLDR Stocks in Play: EA, GE, DDOG

Author

Irish Born Investor
January 23, 2025 • Estimated Reading Time: 5 minutes

Stocks in Play - January 23rd 2025

TLDR Stocks in Play: EA, GE, DDOG

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

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) GE Aerospace (GE) (Rating: B+, Multi-Day Top Pick January 🦒)

Industry Group: Aerospace & Defence, Market Cap: $203b, Float: 1b, Short Interest: 1.2%, Days to Cover: 2.6, Exchange: NYSE

Catalyst: Big EPS Beat ($1.32 vs est. $1.04), Beat on Revs, Total Orders $15.5b, 46% YoY, Beat on EPS Guide & Revs Guide. $7b Stock Buyback. Strong FCF Beat. GE Aerospace Revs are broken into two units Commercial Engines & Services and Defense & Propulsion. Both units beat. A real company in a hot sector. I’ve added this to Top Picks for January as I think it fits in with current themes and may be capable of a sustained run this year. Slower mover, probably does not have the juice to do more than a 8 to 10% move on the day today at the high side. Strong delayed reaction candidate similar to CEG another Jan top pick.

Honorable Mention to: EA - Pre announced a big miss on Net Bookings. Not a good look especially with them losing the FIFA licence. It has clearly had an impact. I think there is a short here but probably a lot of the meat is gone from the bone. I’ll look for a bounce at the extreme of $108/$110 later in the day. Maybe it bounces at $117 but I think the guide from single digit growth to decline is enough to really hit this strong. I’m not a big short seller so prefer to play the long oversold side but there is definitely potential for the short today in this. DDOG - Nice technical setup on the daily retesting the $140 Area. Added to Bank of America US 1 List. May be enough to get it moving if the market is cooperative

Market Awareness

Yesterday the market just chopped. Despite the indices showing heavy green everything just did the death chop which is the most difficult period as an intraday trader or swing trader. Trading a red open is SO much easier than trading a green open in the markets. Gap downs should be rejoiced and gap ups should be treated with caution. I expect a couple of days of chop/pullback but overall I think we are bullish here to at least test new all time highs in the next few weeks. Today is likely to offer better opportunities than yesterday with potential Red to Green moves and bounces later in the day. Will keep an eye on the VIX but don’t expect it to be a factor.

Hitting singles for now. Not expecting homerun trades. We haven’t even gotten into the meat of earnings season there are many opportunities ahead of us. Allow the market to work off the sweat for a few days and hopefully we go again triggered by big earnings catalysts.

After Hours I’m Watching: ISRG, TXN (Earnings)

Tomorrow Morning I’m Watching: VZ, AXP, NEE (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.

Reply

or to participate.