Stocks in Play - January 31st 2025

TLDR Stocks in Play: KLAC, TEAM, ASTS, VRTX, DECK

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Irish Born Investor
January 31, 2025 • Estimated Reading Time: 5 minutes

Stocks in Play - January 31st 2025

TLDR Stocks in Play: KLAC, TEAM, ASTS, VRTX, DECK

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) KLA Corporation (KLAC) (Rating: B-, Single-Day)

Industry Group: Electronic Technology, Market Cap: $99b, Float: 133m, Short Interest: 1.7%, Days to Cover: 2.9, Exchange: NYSE

Catalyst: Solid EPS Beat ($8.20 vs est. $7.75) Slight Revs Beat ($3.08b vs est. $2.94b) Slight Revs Guide Beat. Large EPS Beat on the Guide. Follows in the footprint of ASML and LCRX with strong reports from Semiconductor Equipment reports. Stock trying to break a multi month downtrend.

2) AST Spacemobile (ASTS) (Rating: B+, Multi-Day)

Industry Group: Communications, Market Cap: $3b, Float: 79m, Short Interest: 22%, Days to Cover: 3.9, Exchange: NASDAQ

Catalyst: AST SpaceMobile Announces FCC Grant Of Special Temporary Authority (STA) In the United States with Strategic Partners AT&T And Verizon. This approval enables AST SpaceMobile’s first five commercial BlueBird satellites, operating in low Earth orbit today, with unmodified smartphones in AT&T and Verizon premium low-band wireless spectrum. Not sure how big a catalyst this is but the chart would make a nice failed breakdown here. High Short Interest, Reasonable Float. Hot Sector.

3) Atlassian (TEAM) (Rating: B+, Multi-Day)

Industry Group: Packaged Software, Market Cap: $43b, Float: 155m, Short Interest: 2.9%, Days to Cover: 2, Exchange: NASDAQ

Catalyst: Strong EPS Beat ($0.96 vs est. $0.75). Slight Revs Beat, Big Operating Margins Beat. Increased Full Year Guide on all KPIs Cloud Revs, Operating Margins and Revs. Software names are getting a resurgence since the AI names got killed on Monday. This is a strong report from a former darling stock. Clear levels to trade against and now above a round number $300. Good launch pad for a potential multi day move or delayed reaction to watch.

Honorable Mention to: VRTX - FDA Approval for it’s non-opiod pain medication. JOURNAVX is the first and only approved non-opioid oral pain signal inhibitor and the first new class of pain medicine approved in more than 20 years. Stock has been going sideways and neglected for over a year. Slower mover. DECK - Beat on earnings, some issues with regarding individual brands. Sell off seems overdone. Potential to bounce around key $180/182 area.

Market Awareness

This is the last trading day of the month. I am always wary on the last trading day of the month. You will have rebalancing, repositioning etc. I have a calendar reminder always for this. These are days where stocks tend to overshoot expected moves either way and also to whip around. We also have the impending Tariffs on February 1st according to new administration. I am still of the opinion that Tariffs are the new narrative and will cause the market to whipsaw on mention of them.

Tariffs = Market Sells.

No Tariffs = Markets Rise.

We are gapping up this morning. I will not be chasing a gap up and prefer to take my trades later in the morning. About an hour or two into the market. Watching clear levels and waiting for reactions at them. I have had an excellent week despite not being fully happy with some of my execution. No need to put a dent in it today.

Note we will have Dec PCE @ 8:30am EST

Have a Great Weekend!!

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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