Technology Stock of the Week: Palantir
The AI Service sector continues to lead higher as companies like IBM (IBM) and Palantir (PLTR) are breaking to new highs in the month of August.
Since its last earnings report, Palantir shares have rallied more than 33% while many of the large cap technology companies have lost ground in one of the most volatile months of trading in the year.
Palantir shares are breaking to new 52-week highs with a target price of $40 before year-end.
Growth Stock of the Week: Fifth Third Bancorp
Regional bank stocks are on the rise as investors prepare for the first of the Fed’s interest rate cuts in years.
The regional bank landscape has changed dramatically over the last three months as investors have identified it as one of the strongest beneficiaries of lower interest rates.
Fifth Third (FITB) shares have been one of the leaders of the regional banks, returning 23% over the last six moths compared to 14% from the regional bank ETF (KRE).
Shares of Fifth Third are preparing to make an advance above $45, which would put the stock above all-time high prices.
Stock Under $10 of the Week: Kinross Gold
The price of gold pressed higher last week as investors continue to look for safe haven trades ahead of another increase in market volatility.
The surge in gold prices is trickling down to the miners, which almost always provide returns more than the profits in gold alone.
Kinross Gold (KGC) shares have been trading in a range between $8 and $9.50, but that looks ready to change.
The stock’s 50-day moving average is a strong bullish trend, preparing to lift shares through the psychologically significant $10 price level.
Traders should eye a break above $10 as a bullish catalyst that will drive shares of Kinross Gold to their next target of $12.
Income Stock of the Week: SL Green Realty
Like the regional bank stocks, real estate investment trusts are starting to see the bullish results of lower interest rates.
A year ago, investors were flocking from the REIT trades as the threat of higher interest rates targeted real estate investment trusts like SL Green Realty (SLG) with imminent doom as maturing loans were set to be refinanced at much higher rates.
Now, with interest rates set to head lower, the refinancing risk that these companies face is on the decline.
Shares of SL Green Realty crossed into a long-term bull market trend in February 2024 and haven’t looked back.
The stock’s long- and short-term trendlines are supportive of a break above $70, that price that has held shares at-bay since 2018.
Investors should expect that a move above $70 will charge the stock for another 14% rally higher to a target of $80 on top of the stock’s 4.7% dividend yield.
Bearish Stock of the Week: United Airlines
Lower interest rates aren’t going to do much for the travel and leisure stocks, including shares of United Airlines.
Shares of United Airlines (UAL) hit their recent highs in May, just as we were starting the summer travel season. Since then, several companies – including United Airlines – have lowered their forecasts for discretionary travel as consumers are dialing back their spending.
Shares of United Airlines fell below their 20-month moving average last month, indicating that the stock has crossed into a long-term bear market trend.
In the beginning of August, shares of UAL dropped below the $40 price level, the site of considerable technical support.
After a short “dead cat bounce”, shares are eyeing a move below $40 in a likely move to $35, a 16% decline from Friday’s close.
