More Stocks you should Consider adding to your Watchlist in the Upcoming Weeks
What is this, part 4?
As the market turns to absolute shit we are all looking for glimpses of hope. These stocks will be on our radar to make quick plays on towards the end of May and maybe you too should do your due diligence and add them to your watchlist. We provide the fundamental and technical analysis for you, entering option contracts or buying into the stock is STRICTLY up to you.
This is not professional advice from a financial broker - Please keep this in mind…
Alibaba Group Holding Limited - $BABA
Jack Ma was wiped off of the media by the Chinese government (chill, it’s a joke) but Alibaba has continued to be a driving force in the wholesale community. The stock is currently down over 50% YTD but a positive earnings call can give us the opportunity to capitalize on some gains. We also have some other indications to bet on Alibaba.
$BABA is at a 50% chance to do well or do horrible during their upcoming earnings call (taking place on May 6th). Their most recent earnings beat estimates by a surprise of 0.15 but the stock still tumbled.
Alibaba has faked on one of two technical analysis call-outs I have made, so I will not be using them as a reference to anything. I can still show you for shits and giggles:
Government buying and selling have been fairly prevalent. On March 4th, Rep. James R. Langevin had two separate sales of the stock and Sen. Tommy Tuberville had purchased puts on the stock with an expiration of September 16th, 2022.
We may also see some great news coming from the Chinese government soon on easing their restrictions on the most recent spread of Covid which has affected manufacturing numbers and the supply chain.
Analyst ratings indicate that $BABA has a “buy” rating with a 1-year price target of $153.71.
$BABA is trading below its intrinsic value of $213.64, according to Benjamin Graham's Formula from Chapter 11 of "The Intelligent Investor.”
Hormel Foods Corporation - $HRL
Hormel Foods is a Fortune 500 company that manufactures and markets high-quality, brand-name food and meat products globally and with rising inflation, we may be looking at some high revenues. Not only does inflation work in favor, but could also be working out of favor because consumers may be looking to purchase other brands to save a penny. Some other indicators are as follows:
$HRL has been four for four in their last four earnings calls and hopes to continue the streak. EPS estimates are sitting at $0.47 and chances are Hormel meets these expectations or just scrapes over them.
Recently, Hormel has done some corporate lobbying. On March 31st, they spent $150,000 to lobby the issues of Tariff (miscellaneous tariff bills) Taxation/Internal Revenue Code Trade (domestic/foreign) Food Industry (safety, labeling, etc.) Labor Issues/Antitrust/Workplace Immigration Agriculture. Another spending instance took place on April 20th when $HRL spent $40,000 to lobby against agricultural issues.
A bad sign is the fact that $HRL is trading above its intrinsic value of $49.15, according to Benjamin Graham's Formula from Chapter 11 of "The Intelligent Investor."
Both technicals and analysts claim to give Hormel a “neutral” buy tag. Analysts give the food giant a 1-year price target of $47.11, which is down 10.08% from the current value.