Stocks that shoot higher look riskier to buy because the premium rises. However, market momentum is bullish for companies trading in a break-out pattern.
Trip.com (TCOM) broke out by rising 14.1% last week. The China-based firm posted non-GAAP EPADS of 56 cents. The firm has a digital strategy that focuses on globalization. It will establish its global supply chain to turn itself into the key hub for travelers from China visiting other parts of Asia.
Dominion Energy (D) is another winner. The utility firm is underperforming in its windmill business. However, it may cut costs to strengthen earnings.
Etsy (ETSY) bottomed at $70 last week. Traders are betting that Etsy’s marketplace gross margin sales will turn positive this year.
Stocks to Avoid
Investors may want to avoid Booking Holdings (BKNG). Shares lost 5.4% last week after Middle East conflicts hurt room reservations during the holiday season.
In the chip sector, Intel (INTC) is one of the worst-performing stocks on the Nasdaq. The firm announced a new foundry system for AI development in partnership with Microsoft. The mention of AI failed to break INTC stock from a downtrend. The stock will have trouble breaking out above $45 as momentum investors buy AMD, Nvidia (NVDA), Broadcom (AVGO), and Marvell (MRVL) stock instead.
