Apple (AAPL) is surging higher Monday, up 4.4% to $263.46, following reports of strong iPhone 17 sales in both the U.S. and China. Loop Capital upgraded the stock to Buy with a $315 price target, while Evercore ISI added it to their Tactical Outperform list.
Heading into earnings, Apple is dealing with negative sentiment for the first time in months.
That setup creates the perfect storm for a post-earnings rally if results come in better than expected. Unwinding these sentiment-driven trades often triggers sharp upside moves—especially when technicals align.
Technically, Apple is entering a new bullish phase.
The stock’s 50-day moving average turned higher in August, marking the end of its short-term bear trend. Now, the 200-day moving average is also shifting bullish for the first time since early 2025.
That dual confirmation marks a trend reversal and opens the door to renewed institutional buying.
Apple is also entering a seasonally strong window, with historical tailwinds often pushing shares higher into year-end.
The combination of improving sentiment, strong technical support, and analyst upgrades suggests the path of least resistance is higher.
Target Price: $300
Growth Stock of the Week: U.S.A. Rare Earth
Shares of USA Rare Earth (USAR) are bouncing sharply Monday after a steep—but technical—44% pullback last week. The decline followed a 154% surge to start October, making it a textbook profit-taking event, not a breakdown.
USAR jumped 7.7% in premarket trading as momentum returns and traders reposition for the next move higher. This is a reset, not a reversal.
Rare earth minerals are essential to U.S. national security and clean energy infrastructure, used in electric vehicles, semiconductors, and defense systems. That places USAR at the center of the escalating U.S.–China trade war over critical minerals.
Over the weekend, Treasury Secretary Scott Bessent confirmed that the Trump administration will set a price floor on rare earths to combat Chinese manipulation, supporting U.S. producers with more stable and profitable pricing.
This builds on a broader policy trend: federal investment in domestic refining, military-grade stockpiling, and fast-tracked project approvals.
Despite the recent pullback, USAR remains in a long-term bullish trend. Key moving averages continue to slope higher, and the stock appears to be entering a new momentum phase.
Target Price: $50
Stock Under $10 of the Week:
When Cemex (CX) was highlighted on May 19 as a top growth stock under $10, shares were trading at $6.75.
Fast forward to today, and the stock has surged over 40% to $8.50—outpacing the broader market and confirming its place in a long-term bull trend.
CX has now climbed more than 75% off its April lows, with both the 50-day and 200-day moving averages sloping higher.
The bullish setup remains intact, with strong technical support forming near $9.00. Any near-term pullbacks toward that level would likely be met with renewed buying.
Fundamentals continue to support the move. U.S. infrastructure spending is accelerating, and Cemex is positioned directly in the flow of capital. The company has expanded its U.S. footprint with targeted acquisitions and launched a $150 million cost-cutting initiative to boost margins—both key drivers of future earnings growth.
The $9.50 area may act as a temporary resistance level, but with the trend momentum and macro tailwinds in place, CX looks set to move toward $12 in the coming weeks.
Bottom line: Cemex is in a confirmed long-term bull market trend with a near-term price target of $12.
Income Stock of the Week: Duke Energy (DUK)
Utility stocks like Duke Energy (DUK) have been locked in a tight trading range for the past two weeks as investors cautiously rotate back into equities. But make no mistake, DUK’s long-term bull market trend remains intact.
Shares of DUK are up 22% year-to-date and have rallied from $120 to nearly $128 since early September. The consolidation we’re seeing now is healthy and likely a setup for the next breakout. A move above $128 would confirm a bullish continuation pattern, opening the door for a run to the $135–$140 zone.
Technically, the stock remains in a strong uptrend. Momentum is stable, and moving averages continue to slope upward—both confirming that buyers remain in control.
Beyond technicals, the fundamental setup is strengthening. Duke pays a dividend yield above 3.5%, putting it in the high-income category. But what separates DUK from other utilities is its growth potential.
As one of the few regional power companies positioned to partner with AI and data center operators, Duke could emerge as a critical infrastructure provider in the next energy cycle.
As interest rates drift lower and the market searches for income with upside, Duke Energy remains a top-tier play in the utilities sector.
Bearish Stock of the Week: Darden Restaurants (DRI)
Consumer discretionary spending is slowing as inflation and economic uncertainty build. We’re starting to see a rise in defaults on auto loans and other subprime credit—early signals that the mid- to lower-income consumer is pulling back.
That weakness is starting to show in restaurant stocks like Darden (DRI).
Shares of DRI are now trading below their 50-day and 200-day moving averages—clear signs of a short-term bear market. The latest earnings report failed to spark any positive momentum, and price action remains heavy.
Even more concerning, DRI just triggered a Death Cross, with the 50-day moving average crossing below the 200-day—typically a bearish trend confirmation.
Technically, the next support zone doesn’t come into play until the $150 level. That’s the near-term target traders should expect if consumer conditions continue to deteriorate.
— Chris Johnson
$3 billion+ in operating income. Market cap under $8 billion. 15% revenue growth. 20% dividend growth. No other American stock but ONE can meet these criteria... here's why Donald Trump publicly backed it on Truth Social. See His Breakdown of the Seven Stocks You Should Own Here.
Source: Money Morning