Markets fell for the second day in a row on Wednesday, with the S&P losing 1.4%. Asia markets closed lower overnight while Europe indexes are mixed this morning. U.S. futures are pointing to a bounce, while the Dollar, Yields, Oil, and Gold are all lower.
And this is what UPB is reading this morning: https://www.optionmillionaires.com/morning-reads-168/
I am working on my Top 5 Stocks for 2023 Webinar. I will be putting some of the names I am researching in the #2023-ideas channel in the chatroom. Feel free to add any names you think may outperform in 2023 or any comments you may have. Thanks in advance!
It was a rough session for stocks on Wednesday, with the market opening at highs, only to melt for the rest of the day. Time is running out on a Santa rally but there is still hope. This morning futures are looking to recoup some of yesterday's losses after weekly jobless claims did not come in lower than expected. Kind of depressing to think the market needs to see unemployment to rally. Hopefully the market can find some footing. There is now only two trading days left in 2022. A good sign here if the market can recoup that $380 handle and maybe we can get a push back to the 50dma.
VKTX was back in rally mode yesterday and closed up over 10% despite the market weakness. It is gapping over $9 in the pre-market. Think it is only a matter of time before it is $10+. Will be looking to close some of my calls out to cover costs at 100% and ride the rest. Will also be looking for some calls into 2023.
I am having issues pasting charts, hope to have fixed and will update]
I added some GNRC calls yesterday as outlined on the watchlist. GNRC is one of the worst performing stocks in 2022. Think it will find some buyers into the new year as folks look for quality names that were unnecessarily sold. Think $100+ is possible in the coming days and will look to close some of my calls out to cover costs when I get the chance.
I am having issues pasting charts, hope to have fixed and will update]
ZYME couldn't find a bid yesterday and close flat on the session. Still hopeful for a move to $10 in the coming weeks but It will need to start its rally soon.
I am having issues pasting charts, hope to have fixed and will update]
BIDU gave back all its gains from Tuesday - likely on worries China will reverse its removal of Covid policies. It was a quick pull at the open and I wasn't about to close the last of my calls out for .20, as BIDU can be a name that opens the next day up 5-10% on any China news. Won't add anything here and will need a big move today and tomorrow for the rest of my calls. That $125 handle there still looks like the next possible test.
I am having issues pasting charts, hope to have fixed and will update]
ALGN laid an egg yesterday and will need a big move between today and tomorrow for my calls. May actually look for some strikes into 2023 as the name seems strangely bold lately, like someone is adding a stake.
Still eyeing HUM, CI, CMG, WING, EXAS, and IBM as well.
Here are the analyst changes of note for today:
| PagSeguro Digital price target lowered to $16 from $26 at Susquehanna |
| Susquehanna analyst James Friedman lowered the firm's price target on PagSeguro Digital to $16 from $26 and keeps a Positive rating on the shares. The analyst lowered his estimates to better reflect ongoing trends occurring at PagSeguro specifically and in Brazil Merchant Acquiring more generally. He moved his target multiple to a discount to peers |
| Netflix upgraded to Buy from Sell at CFRA |
| CFRA analyst Kenneth Leon double upgraded Netflix to Buy from Sell with a price target of $310, up from $225. The analyst believes it "will be difficult for competitors to catch" Netflix, noting it is one of the few profitable streaming providers with global scale. New original content should support Netflix's subscriber trends, while its advertising tier and new paid sharing efforts to better control the sharing of accounts should serve as near-term catalysts, Leon tells investors in a research note. The analyst expects new original content like "Emily in Paris", "Glass Onion" and "Blood Origin" to benefit subscriptions and reduce churn. Shares of Netflix are up 1% to $279.27 in early trading |
| Opendoor Technologies valuation remains attractive, says BTIG |
| BTIG analyst Jake Fuller expects Opendoor Technologies to report above-guidance Q4 results as his checks suggest about 7.5K homes sold, though he still models a negative gross margin and steep EBITDA loss. The analyst also notes that with volume looking limited, he still sees Q1 being shaped by losses on pre-downturn inventory. Opendoor Technologies is trading at a negative enterprise value however, and assuming stabilization of the housing market within a 2-3 quarter span, the stock's valuation is attractive, Fuller tells investors in a research note, also keeping his Buy rating and $6 price target on shares. |
| Terns Pharmaceuticals price target raised to $7 from $6 at H.C. Wainwright |
| H.C. Wainwright analyst Ed Arce raised the firm's price target on Terns Pharmaceuticals (TERN) to $7 from $6 and keeps a Neutral rating on the shares after the company closed an equity financing of 11.9M common shares. The analyst increased his assumed probability of success of Terns' nonalcoholic steatohepatitis program to 45% from 35% due to the "strong validation" of the THR-beta mechanism from Madrigal's (MDGL) Phase 3 MAESTRO-NASH top-line data. However, Arce maintains a Neutral rating saying the rest of Terns' pipeline is early stage. |
And here is what I am watching today: EXAS, ALGN, IBM. HUM, CI, WING, CMG, ROKU, SQ, VKTX, NFLX, PTON, BYND, ALGN, ULTA, BLK, RARE, AYX, SPOT, BURL, WYNN, U, and TWLO.
Let's have a great day!
-JB