Two stocks currently trading below their 200-day EMA show potential for a bounce, in my view: $Celsius Holdings, Inc.(CELH)$ and MSFT.
Both have dropped below that key moving average and were turned back on their first tries to get back above it.
From where I stand, the underlying businesses are still growing. Revenue trends are up, and the long-term investment cases seem solid.
$Celsius Holdings, Inc.(CELH)$ has faced some near-term pressure. The acquisitions of Alani and Rockstar added debt and hit earnings per share during the integration, which has weighed on the stock. It feels like a lot of that concern is already reflected in the price, and an earnings recovery could be the next catalyst.
$Microsoft(MSFT)$ has seen selling pressure, likely tied to its significant AI-related capital spending and a slower pace of profit conversion. I think the market might be overreacting here, which could set up an opportunity for investors with a longer-term horizon.
I'm personally watching both of these setups.
Disclaimer: Investing carries risk. This is not financial advice. The above content should not be regarded as an offer, recommendation, or solicitation on acquiring or disposing of any financial products, any associated discussions, comments, or posts by author or other users should not be considered as such either. It is solely for general information purpose only, which does not consider your own investment objectives, financial situations or needs. TTM assumes no responsibility or warranty for the accuracy and completeness of the information, investors should do their own research and may seek professional advice before investing.
