Stocks in Play - November 20th 2024

TLDR Stocks in Play: TGT, ZIM, WSM, WIX

Welcome to today's Stocks in Play report. Below are the key stocks to watch, along with brief Xray and Analysis. The main source of news I use each day is BenzingaPro. Check out their 2 Week Free Trial. Several other websites and services I use are linked at the bottom of the newsletter.

1) Target Corporation (TGT) - SHORT

Industry Group: Specialty Stores, Market Cap: $70b, Float: 460m, Short Interest: 3%, Days to Cover: 3, Exchange: NYSE

Catalyst: Awful report from TGT. Missed on Revs Big EPS Miss ($1.85 vs $2.30 est), Gross Margins Fell, Lowered EPS Guide. Operating Margins Fell. Margins are a big KPI (Key Performance Indicator) for Retailers. My criteria for shorting is quite a high bar but to me this is a terrible report on it’s own and made even worse by the contrasted strength in WMT report featured yesterday.

2) WIX .com Ltd (WIX)

Industry Group: Packaged Software Market Cap: $10b,  Float: 53m, Short Interest: 2.68%, Days to Cover: 3.6, Exchange: NASDAQ

Catalyst: Solid upside report from WIX, Modest Beats in Revs & EPS, EPS growing 36% YoY, Sales growing 13%, Slight Raise in Bookings Guide, GM Guide and Free Cash Flow. This stock has worked well after previous earnings reports and has been in a rising base for the past few months. Coming into $200 psychological level pre market.

3) ZIM Integrated Shipping (ZIM)

Industry Group: Marine Shipping, Market Cap: $3.2b,  Float: 99m, Short Interest: 12.8%, Days to Cover: 2.3, Exchange: NYSE

Catalyst: Large EPS Beat ($9.34 vs est. $7.20), Solid Revs Beat, Increased Revs YoY by 117%, Declared special dividend and raised regular dividend. Raised Full Year Guide This was a big trading vehicle during high inflation. Stock has been in consolidation now for several months.

4) Williams Sonoma Inc (WSM)

Industry Group: Specialty Stores, Market Cap: $17.2b,  Float: 121m, Short Interest: 11.8%, Days to Cover: 7.8, Exchange: NYSE

Catalyst: Solid Beat on EPS ($1.96 vs est. $1.78), Slight Beat in Revs, Revs decreasing 2.9% YoY, $1B Stock Repurchase Authorization, Raised 2024 Guidance for less of a Rev Decline than previous anticipated. Bullish management commentary.

Honorable Mention to: GLBE - Modest Beats on EPS & Revs (Growing 30% YoY). FY24 Rev Guide is ‘‘Raised’ however it’s more of a narrowing of the range and actual reduction on top end. Normally this fades in my opinion but the market is lenient at the moment so potential to work with 8.5% Short Float, 9 Days to Cover.

Market Awareness

Everyone is waiting for NVDA tonight I don’t expect any follow through until after that. Tactical quiet day for the most part. Russian/US relation fears also have potential to spike the market at any point during the day. Very interested in tonight’s earnings of NVDA, SNOW & PANW. for opportunities tomorrow.

After Hours I’m Watching: NVDA, SNOW, PANW (Earnings)

Tomorrow Morning I’m Watching: DE, PDD (Earnings)

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.}