Stocks in Play - November 26th 2024

TLDR Stocks in Play: RIVN, SMTC, WWD ANF, DKS, ASPI, TGT

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) Rivian Automotive (RIVN) (Rating: B-, Single-Day)

Industry Group: Motor Vehicles, Market Cap: $10.5b, Float: 730m, Short Interest: 18.5%, Days to Cover: 3.9, Exchange: NASDAQ

Catalyst: RIVN received a loan commitment from the Dept of Energy for up to $6.6b. $6b principal with $600m in capitalized interest. If finalized it would be used to help construction of a new Facility in Georgia to significantly expand US Production capacity. I’ve recently seen stocks like EVGO run on this sort of news. RIVN also recently rehashed the VW investment news and has a high short interest, though the float is also high. Decent 1-Day idea today.

2) Woodward Inc (WWD) (Rating: B, Multi-Day)

Industry Group: Industrial Machinery, Market Cap: $10.72b, Float: 216m, Short Interest: 2.3%, Days to Cover: 2.5, Exchange: NASDAQ

Catalyst: Solid beat on EPS ($1.41 vs est. $1.26) Solid Beat on Revs ($855m vs $811m). 10% Revs Growth YoY. 48% Rise in FCF. Strong results and move after hours. Coming out of a consolidation and right below key psych price of $200. May be a good candidate for delayed reaction if it cannot push above $200 today. Company are involved in Aerospace Parts, Design production.

3) Semtech (SMTC) (Rating: B+, Multi-Day Top Picks November 😼)

Industry Group: Semiconductors, Market Cap: $4.02b, Float: 63m, Short Interest: 9.2%, Days to Cover: 4.31, Exchange: NASDAQ

Catalyst: Slight EPS Beat, Revs Beat. 17% YoY Sales Growth. Q4 Guidance above estimates for EPS & Revs. Relatively high Short Interest. Beat on Gross Margins (52.4% vs. 51.9%), Beat on EBITDA Margins. Bullish Management commentary on Growth. Mentions of AI Driven Product Demand. FQ4 Revs Guide Beat & EBITDA Beat.

Honorable Mention to: TGT (SHORT) - After awful earnings I have been monitoring TGT for a continuation. This morning there is a negative WSJ Article which while not explosive, it does focus on them losing market share and could be enough to continue the drop. ANF - Initial negative reaction to strong earnings. I think ANF could be a good candidate to reverse today. They only had a tiny miss Abercrombie comps miss. Hollister brand was a big beat and everything else was strong. 8% Short Interest and relatively low 50m float. Also DKS Similarly strong earnings, same category currently up 8% Pre Market. ASPI - Completes construction and starts the commissioning of Silicon-28 enrichment facility. 23% Short Interest and low float Nuclear Stock.

Market Awareness

Today is another relatively slow news morning. Last night we had an example of the Trump Tweet moving the market on Tariffs. This was common place when he was president last time so best get used to it again. Most of the big money will be leaving today for Thanksgiving so it pays to be really hit and run with positions. You will see outsized moves but also hard whips which can be frustrating. Yesterday DRONE Stocks did indeed move well as outlined. I expect a similar caliber of stocks to be moving today. My main focus is to try have a solid day, not take big risk and finish the week well with a good mover tonight in some important earnings After Hours. I won’t be trading tomorrow or Friday.

After Hours I’m Watching: CRWD, DELL, NTNX, WDAY, HPQ  (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.}