Ticker Reports for July 31st
Higher Consumer Confidence Could Benefit These 3 Retail Stocks
As the market stays near its all-time highs, understanding and breaking down the fundamental data becomes more important than ever for investors. With this in mind, there are typically two sets of data that truly drive the view and performance of the different sectors of the economy: first, the business data, and then the consumer data to balance the supply and demand equation.
Focusing on the consumer, one of the most widely followed indicators just turned green unexpectedly, driving interest and potential opportunities into the retail sector.
With consumer confidence now higher than expected despite all the economic uncertainty that is happening today, investors should focus their energy (and capital) on the names that could benefit the most from this higher reading.
Some of these names include companies like Nike Inc. (NYSE: NKE), On Holding (NYSE: ONON), and even Ross Stores Inc. (NASDAQ: ROST) for the coming months. Each with a different value, growth, and scale proposition, these stocks could be the first to see added buying pressure off this bullish report.
Some of these opportunities give investors a chance to profit before 2025 is over.
Nike Breaks Away From Its Slump
After all of the tariff uncertainty in the retail space, especially with companies like Nike, whose raw materials and manufacturing are mostly focused in the Asian region, the sentiment has finally shifted for this brand across market participants.
If consumers feel confident, even in a tight economic environment, one of the few certainties in the market is that Nike sales will likely benefit from this, as the brand is nearly a rare commodity in fashion and sports. With this in mind, it seems that the market was ahead of the curve this time around, as it bid Nike stock up by 40% over the past quarter.
Now trading at 86% of its 52-week high, Nike is in an official bull market with no signs of slowing down. This recent momentum and macro backdrop have also sparked new optimism from those on Wall Street, as J.P. Morgan Chase analyst Matthew Boss boosted the stock’s rating to an Overweight, up from a previous Neutral.
This ratings change also came coupled with a new $93 per share valuation, significantly up from the previous $64 view and calling for as much as 20% upside potential from where the stock trades today, not to mention a new 52-week high to be made.
On Holding Stock: The Growth Story
If Nike represents the scalability and predictable play in retail, then On Holding represents the growth aspect of this potential portfolio, a much-needed balance for most investors today. However, growth does not only come from the stock’s price action but rather from the underlying fundamentals, and that’s where investors can begin their research in this company.
Wall Street analysts expect to see up to 17 cents in earnings per share (EPS) for the fourth quarter of 2025 in On Holding, in other words, a 70% increase from today’s reported 10 cents in EPS. As most investors already know, where EPS growth goes, so does the stock’s performance.
The broader market is also well aligned with this outlook, as it is now willing to pay up to 74x for the company’s earnings in a price-to-earnings (P/E) ratio that stands greatly above the retail sector’s 30x average valuation.
Of course, there are those who are uncomfortable paying up for a company, forgetting that the market will always pay for growth.
According to Raymond James analyst Rick Patel, this stock could see $66 per share before breaking out further, giving investors a chance to see up to 30% upside in a growth story that may as well overdeliver.
Smart Money Sees Value in Ross Stores Stock
Now, for the value side of the equation, with Ross Stores, stock investors can find value not only in the company's current valuation but also in the business model itself. In today’s tight inflation and economic environment, it is clear that any name that can provide a value proposition to its customers is set to do very well in the coming months.
That is where Ross Stores becomes attractive, enough for institutional investors from Fenimore Asset Management to initiate a position worth up to $205 million as of late July 2025, a vote of confidence justified by the recently bullish consumer data.
Just as with On Holding, the market is willing to put Ross Stores in premium territory through a price-to-book (P/B) multiple of 8.4x compared to the rest of the retail sector’s 5.6x. Paying up for a company’s book is a sign of confidence in the balance sheet itself, which shows the stable nature of Ross Stores to balance the scale and growth stories seen in Nike and On Holding.
The Metal Behind America's Military, Aerospace, and Drone Dominance
The Metal Behind America's Military, Aerospace, and Drone Dominance
2 Cybersecurity Giants Nearing Big Potential Breakouts
Cybersecurity has been one of the more consistent themes in this market. While the S&P 500 is up just over 8% year-to-date, the cybersecurity-focused ETF Amplify (NYSEARCA: HACK) is up more than 16%. As the broader tech space continues to drive leadership, a few big names in the cyber space are starting to set up for potentially significant breakouts after long periods of consolidation.
Two of the most notable setups right now are Fortinet (NASDAQ: FTNT) and Palo Alto Networks (NASDAQ: PANW). Both stocks have underperformed the sector year-to-date, but their multi-month and even multi-year chart structures are starting to tighten meaningfully. With earnings on deck and some added M&A speculation in the mix, these names could soon be on the move.
Fortinet: Tight Range, Big Potential
Fortinet has spent the last few months compressing in a reasonably clean range between $100 and $110. Since April, the stock has held up well above most key mid- to long-term moving averages, forming a potentially bullish coiled base that’s starting to look like a textbook consolidation breakout setup. The longer a stock bases under resistance, the more explosive the move tends to be once that level breaks. And for Fortinet, the breakout area is clearly defined near the $110 zone.
This tightening action is happening just ahead of earnings, scheduled for August 6. That could end up being the catalyst needed to overcome resistance once and for all. Fortinet last reported in early May, posting Q1 2025 earnings of $0.58 per share, beating consensus by $0.05. Revenue rose 13.8% year-over-year. Solid numbers, but not enough at the time to spark a breakout.
Analysts are sitting on the fence, with most holding a neutral stance going into the following report. Valuation remains reasonable relative to the rest of the space, and the chart suggests something big could be brewing.
Palo Alto Networks: Multi-Year Breakout on Watch
Palo Alto’s setup is a bit more stretched out in time, but no less interesting. The stock has been consolidating in a broad sideways range between $180 and $210 for nearly a year now. While that’s a long time to move sideways, the bigger picture still points to strength. PANW has gained 127% over the past three years, and over 500% across the last decade.
YTD performance has lagged, with the stock up just 6.5%, but the structure of this consolidation is worth noting. The $210 level has capped every major breakout attempt for months, and it continues to act as a wall. If it breaks in the coming weeks or months, especially on volume, there’s room for the stock to run impressively.
Recent earnings, released in May, were strong: PANW posted EPS of $0.80, topping estimates by $0.03, with revenue climbing 15.3% YOY. But the stock failed to break above $210 again this week, sliding more than 5% intraday after reports surfaced on Tuesday that Palo Alto is nearing a $25 billion acquisition of CyberArk (NASDAQ: CYBR).
Earnings and M&A Could Be the Catalysts
This CyberArk deal has drawn mixed reactions. Some view it as a clever strategic play, mainly as Palo Alto aims to broaden its AI cybersecurity offerings. Others see the $20B price tag as steep, especially with PANW already trading at a lofty 110 P/E and a forward P/E of 53.
Still, Jefferies analysts backed the deal, saying it “has significant merit” and reiterated its $235 price target on the stock. Whether or not the deal materializes, the setup for PANW remains clean. A breakout over $210 could signal a significant shift in momentum.
With earnings approaching for both stocks and the cyber sector showing continued strength, FTNT and PANW are two names worth watching closely. If they clear key resistance levels, the next leg higher may be explosive.
Silver's Next Move Could Shock Wall Street
Silver's Next Move Could Shock Wall Street
Why Bloom Energy Stock Could Break to New Highs
Buying a stock as it’s pushing toward or breaking through a 52-week high can feel daunting, since above that price lies uncharted territory. Yet that’s often exactly when you should double down on your initial thesis, because larger players tend to join the battle at these key breakout levels.
One company that’s been breaking out recently and giving investors plenty of reasons to expect further gains is Bloom Energy Corp. (NYSE: BE). Unlike many traditional energy firms, Bloom Energy focuses on renewable, clean-energy solutions.
With several upcoming catalysts on the horizon and oil prices widely anticipated to trend higher in the second half of 2025 amid ongoing geopolitical and economic uncertainty, renewables become an increasingly attractive alternative. That’s precisely where Bloom Energy stands to shine.
Giving Short Sellers a Run for Their Money
Over the past month alone, Bloom Energy stock has delivered a stratospheric rally of up to 60%. That momentum could only be the beginning, considering how much of the stock’s float is now held in short positions. Up to $1.14 billion worth of shorts are now open in the market, which investors need to keep front and center.
This matters because, as the stock continues its aggressive bull run, short sellers will eventually have to close their positions and cut their losses, which involves buying back the stock they borrowed to sell in the first place. This event, a massive exodus of shorts, is known as a short squeeze, as it creates additional buying pressure.
That additional buying pressure could be one of the main catalysts that bulls can enjoy for Bloom Energy stock in the coming months, assuming the company can stay on this current path. There’s an answer to that, too, for Bloom Energy, as stocks that break out of 52-week highs typically start to gain attention around Wall Street circles.
One of the latest members to express optimism for Bloom Energy shares is UBS Group analyst Manav Gupta. As of late July, he reiterated a Buy rating on the stock, coupled with a new $41 per share valuation. Even though this call implies an additional 8% upside from today’s prices, chances are other analysts will have to raise their targets soon.
Bullishness Spreads for Bloom Energy Stock
Other than Wall Street analysts feeling comfortable with new upgrades, another benefit of a stock breaking past its old 52-week high is that most long-only fund managers tend to systematically buy these stocks as part of their fundamental and momentum strategies.
Investors can see this at play with those from DekaBank Deutsche boosting their holdings in Bloom Energy stock by as much as 27.5% as of late July 2025, as well. In the latest vote of conviction, they now have a net position worth up to $14.7 million, pointing to higher prices in this company moving forward.
One word of caution for investors, though, is that the company is reporting its next quarterly earnings results on Thursday, July 31, in the after-market hours, meaning that the future growth potential could already be priced in after this massive rally. However, looking at some current market gauges can wash away some of these doubts.
The price-to-earnings growth ratio (PEG) is a useful metric investors can use to gauge whether today’s valuations are pricing in all future earnings. Any measure below one is considered not priced in yet, and Bloom Energy stock’s 0.7x PEG multiple suggests there is still plenty of upside left before earnings growth is fully priced in.
This could also explain why the broader market is now willing to pay a price-to-book (P/B) multiple of up to 15.1x for Bloom Energy stock. This is a massive premium above the energy sector’s average valuation of only 3.9x on a P/B basis.
While some investors may see this as overextended and expensive, seasoned participants will remind them that the market is always willing to pay up for the companies it expects will outperform the peer group and the broader indexes as well.
Judging by the momentum, the level of short interest, and institutional buying, Bloom Energy is one of those stocks that will prove the market correct by breaking into a new, higher level.
This stock could leave NVDA in the dust
This stock could leave NVDA in the dust
MarketBeat Media, LLC dba TickerReport
345 N Reid Place, Suite 620, Sioux Falls, SD 57103.
No comments:
Post a Comment