Earnings season is fully underway in the US, and the stocks we’ve featured in recent weeks like Microsoft, Disney and Facebook are killing it! Even with the S&P 500 Index back at its all-time high, many of the leading names we identified using our Company Analysis Checklist have been in 'blue sky’ for some time, making successive record highs. Let's take a look at this week’s action with a few charts…
Microsoft (MSFT) topped $1 Trillion in market cap, becoming America’s largest public company off the back of an amazing report that highlighted continued growth in it’s cloud computing business. This is something that I discussed in more detail in our Trading Club video analysis earlier this month, I am monitoring closely with a potential big contract on the horizon. Shares rose by as much as +5% on the release.
Facebook (FB) also reported after the close with Microsoft and surged high single digits following a similarly impressive Q1. Notably the tech giant set aside $3 billion for pending legal action, which investors weighed favourably as excluding that one off provision EPS came in well ahead of estimates. User engagement and growth across the board was positive and supported the compelling rationale for owning the stock, just as we explained in our other Trading Club video analysis this month. The shares have gained more than 50% since the December low.
Disney (DIS) has been relentless ever since it announced it’s new streaming service at the investor day last week. Although the media giant didn’t report this week, the shares have continued to rally making successive record highs as our Trading Club analysis correctly anticipated in recent months. God bless Bob Iger!
Heineken (HEIO) has also impressed since our Company Analysis Checklist identified the brewer in February. The shares are making a new record high today, around 11% higher since we first shared it in the Trading Club overview.
These are just a few of the ideas that we have been generating at the Trading Club week-in, and week-out. Of course, it may appear as though we are being selective with the ideas we feature here, but in reality our process is consistently producing winners - just ask our members! Despite all the doom and gloom and general fearmongering by less savvy investors during Q4 2018, we remained confident in our process and adapted as profitable opportunities presented themselves. The product of that has played out in the charts above, with a host of great trades.
In short, there’s no reason why you cannot learn to spot and take advantage of similar trades yourself with the help of our analysis. Whether you are new to trading or a more experienced investor in other markets, we are here to help you succeed. There has never been a better time than now to join us - with 60% off our Online Course (including 3 month’s free access to our Trading Club) ending Monday. Seriously guys, invest in yourself and you’ll be collecting the dividends for years to come, as I am following Lex’s mentorship during my formative years in the City.
Have a great weekend!
James Helliwell | Chief Investment Strategist
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