Will .SPX Top 10 20D Winners Continues: GPS, EXPE, INTC,CCL, RCL…
Tomorrow is Thanksgiving[Heart][Love], and the U.S. stock market will be closed for the day.
As of the close of trading on November 21, in the past 20 trading days, some stocks have quietly gone out of relatively stable or strong market conditions.
In the review of the S&P 500 component stock list, the top ten stocks with the highest gains in the past 20 trading days are: $Gap(GPS)$, $Expedia(EXPE)$, $Generac(GNRC)$, $Monolithic Power(MPWR)$, $Royal Caribbean Cruises(RCL)$, $Gartner(IT)$, $DexCom(DXCM)$, $Intel(INTC)$, $D.R. Horton(DHI)$, and $Carnival(CCL)$.
Why there performed the best? Will they continue to rise or going to see pullback？
Welcome to review some possible reasons for the rise and get the future targets of each winner:
Disclaimer: all information is public, not for direct investment advice.
1. $Gap(GPS)$ has continued to rise after the release of the earnings on November 16
Earnings Summary: Q: What is Gap(GPS) 2024Q3 Earnings Summary?
$Gap(GPS)$ has increased by 52% in the past 20 trading days, and has increased by 67.55% this year, breaking through the high point since 2022.
On average, analysts give GPS a Buy rating. Analysts made changes to their price targets on Gap following earnings announcement.
The average price target is $12.214, which means analysts expect the stock to fall by -33.91% over the next twelve months.
2. Travel Stocks $Expedia(EXPE)$
Earnings Call Summary：Expedia Group (EXPE) Reported Record Revenue and EBITDA in Q3 2023
Latest News:Evercore analyst Mark Mahaney upgraded the $Expedia(EXPE)$'s rating from In line (Hold) to Outperform (Buy) and raised the price target from $135 to $200, citing confidence in the company's growth potential based on industry checks and proprietary analysis.
$Expedia(EXPE)$ now price at $135.47, the price target indicates a potential 46% upside from where shares were traded when the upgrade was announced.
3. $Generac(GNRC)$
Earnings Highlight: it reported gross profit margin increases to 35.1%，Q3 earnings were a relief for investors.
$Generac(GNRC)$ now price at $112.68, it has an average analyst recommendation of Strong Buy. The company has an average price target of $137.13.
The public analysis saying that Generac Holdings' historical ROCE movements trend isn't fantastic, ROCE has fallen from 19% over the last 5years. And considering revenue has dropped while employing more capital, need to be cautious.
4.$Monolithic Power(MPWR)$
Earnings Highlight: $Monolithic Power(MPWR)$ exceeds market expectations with impressive Q3 performance.
From a fundamental perspective,$Monolithic Power(MPWR)$ ' earnings over the next few years are expected to increase by 53%, indicating a highly optimistic future ahead.
Generac Holdings has an ROCE of 8.1%. Ultimately, that's a low return and it under-performs the Electrical industry average of 14%.
Oppenheimer analyst Rick Schafer continued his optimism for $Monolithic Power(MPWR)$ by reaffirming an “Outperform” rating and increasing the price target to $600 on November 14, 2023, due to the company’s performance and potential for growth.
5. $Royal Caribbean Cruises(RCL)$ up over 35% after earnings on October 26th
Earnings Call Transcript Summary: $Royal Caribbean Cruises(RCL)$ ‘s give strong performance in the Q3
Pleasingly, RCL has a superior ROE than the average (16%) in the Travel & Leisure industry. GuruFocus assigned Royal Caribbean Group a GF Score of 68 out of 100, which signals poor future outperformance potential.
With an interest coverage ratio of 1.56, the financial strength indicators is positioned worse than 76.23% of companies in the Travel & Leisure industry.
The company's revenue has declined by an average of 12.7% per year over the past 3 years, underperforming 73.9% of companies in the industry.
$Royal Caribbean Cruises(RCL)$ now priced at $104.83, the average price target is $121.75 from TipRanks
6. $Gartner(IT)$ surged 28% to a record high after the earnings release on November 3
Earnings Summary: $Gartner(IT)$ surpasses Q3 sarnings and revenue estimates and raises full-year revenue, profit outlook
MarketBeat reported on November 21th, $Gartner(IT)$ has received an average recommendation of "Hold" from the five research firms that are currently covering the company.
$Gartner(IT)$ now price at $427.79, it received an overall rating of 87, which means that it scores higher than 87% of stocks. 8 Wall Streets Analysts’s 12-month average price target for Gartner is $422.13.
7. $DexCom(DXCM)$
Earnings Highlight:
$DexCom(DXCM)$ as a medical device company and provider of continuous glucose monitoring (CGM) systems, has a market capitalization of $39.45 billion. It projects 33.6% growth over the next 5 years and expects to maintain the strong performance going forward.
Alger Mid Cap Focus Fund highlighted stocks like DexCom, Inc. in the third quarter 2023 investor letter.
Based on 16 Wall Street analysts offering 12 month price targets for $DexCom(DXCM)$ in the last 3 months. The average price target is $127.56
8. $Intel(INTC)$ up over 33% after earning reported on October 26th
$Intel(INTC)$ Q3: Insiders Buying, AI Potential Mispriced, Rating Upgraded
Based on 27 Wall Street analysts offering 12 month price targets for Intel in the last 3 months. The average price target is $37.39.
Analysis from seekingalpha believes due to $Intel(INTC)$'s positive correlation with revenue estimates, any positive revenue forecast revisions could further boost INTC to previous all-time highs of $60-$68 by 2025-2026.
9. $D.R. Horton(DHI)$ rose over 20% since November 1st
Bullish and Bearish points of Earnings: D.r. Horton (DHI) Q4 2023 Earnings Call Transcript Summary
$DHI gain a rating of 96 near the top of the Residential Construction industry according to InvestorsObserver.
Over half a decade, D.R. Horton managed to grow its earnings per share at 30% a year. This EPS growth is remarkably close to the 29% average annual increase in the share price.
The 18 analysts offering 12-month price forecasts for $DHI have a median target of $142.50.
10. $Carnival(CCL)$ rose over 26% since November 1st
Latest earnings report: Carnival Cruise Line Posts First Profit Since 2020
Shares in the world's largest cruise operator soared on macroeconomic news after inflation fell faster than expected in October.
Additionally, lower interest rates will help support consumer spending, which is good for Carnival as leisure travel is highly discretionary.
Based on 13 Wall Street analysts offering 12 month price targets for Carnival in the last 3 months. The average price target is $18.27
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