Each week we’ll bring you five stocks that are on our radar
In the fast-paced world of investing, staying ahead requires good ideas and timely decisions. This article highlights five stocks worth watching each week for their robust performance, market trends, and growth potential. Discover the stocks that could enhance your portfolio and navigate market fluctuations with confidence.
Technology Stock of the Week: NVIDIA
NVIDIA (NVDA) shares have spent the last month trading in a tight range that investors are looking to end.
The stock has seen a drop in trading volume as investors lightened their interest in the market over the holidays. The drop in trading volume has put a number of semiconductor companies in perilous positions as the trade well below their 50-day moving averages.
NVIDIA shares have been trading above and below that same key technical trendline for the last two week, but a return to more regular trading volume last week has the stock gaining traction.
A cross above $150 on average volume will signal that the technology leader is ready to reclaim its leadership role among the semiconductor stocks.
NVIDIA is also presenting at several technology conferences over the next two weeks, raising the profile of the company’s Blackwell progress ahead of its next earnings report.
Investors should expect to see NVIDIA shares surge above $150 to the $160 level ahead of the company’s February 26 earnings release.
Shares of NVIDIA remain in a long-term bull market trend with a price target of $200.
Growth Stock of the Week: Kroger
The return of the “Inflation Trade” in 2025 should put Kroger (KR) and a few other grocers on investors radar.
Shares of Kroger remained in a long-term bullish trend as inflation went from “transitory” to a problem, a few years ago. The company was able to capitalize on its private label brand products to increase margins and profits while investors were looking for relative bargains in the grocery aisles.
Kroger stock recently moved back to the top of its range after the proposed purchase of Albertson’s was put to a stop over regulatory worries.
Kroger shares are trading in both a long- and short-term bullish trend with the stock gaining bullish momentum.
Kroger shares maintain a bullish target price of $75.00.
Stock Under $10 of the Week: D-Wave Quantum Inc.
D-Wave Quantum Inc. (QBTS) shares are closing in on moving above the psychologically significant $10 level as investors have become increasingly bullish on the outlook for quantum computing.
The company specializes in quantum computing, focusing on quantum annealing technology to solve complex optimization problems faster than traditional computers.
Their flagship Advantage Quantum Computer and Leap Quantum Cloud Service provide businesses with cloud-based access to quantum hardware and tools.
Shares of QBTS cracked above the $10-mark last week only to see the stock drop back down to $8.00 as short-term traders took profits in the name. Shares of QBTS have been trading more than 200% higher since December 1.
Like many other companies in the quantum computing industry, D-Wave Quantum stock is early in its “Discovery phase”. This means that the stock is likely to see more volatile trading, which largely moves higher over time.
Investors need to remember that “the trend is your friend” on Discovery Stocks like D-Wave Quantum to avoid being washed out by short-term volatility moves lower as seen last week.
D-Wave Quantum are trading with a bullish outlook and a price target of $20.
Income Stock of the Week:
A shift in sentiment towards consumer activity puts AT&T (T) on the list of healthy income stocks.
In 2024, shares of AT&T had shown some weakness, but that changed in April as it became clearer that the Fed would be acting to lower interest rates in the second half of 2024.
Since then, shares have rallied 30% and moved to new all-time highs in December.
Shares of AT&T shifted into a long-term bull market trend in January of 2024 when they broke above their 20-month moving average.
investors have also started looking for higher dividend paying stocks to replace high yield savings accounts. That represents another strong tailwind for AT&T with its 5% yield.
Shares are breaking to new Highs ahead of the October earnings announcement meaning that we may see a little “sell the news” after the company’s October 23 earnings announcement.
Overall, the stock remains bullish with a price target of $30.
Bearish Stock of the Week: Carvana
Carvana (CVNA) shares ripped to new highs as investors expected interest rates to plunge in 2025. Now that outlook is in jeopardy.
The car reseller spent much of 2023 and 2024 refinancing a ticking time bomb of short-term debt as high interest rates threatened the company’s liquidity. Carvana’s plan worked, except it was contingent on one thing… rates continuing to lower in 2025 and 2026.
The Fed’s recent shift in sentiment on rate drops in 2025 has cut the expected number of rate cuts in half, seeing the Fed’s primary lending rate only dropping 0.5% during the year instead of 1.0-1.25%.
Higher rates will take their toll on Carvana in two ways.
First, the company will see fewer customers coming through the doors as used car prices remain high, as will interest rates.
Second, the company’s restructured debt will now see pressure from rates not continuing their decline.
Watch for comments from the company during their February 20 earnings call. Until then, investors should remain cautious with a price target of $125.
— Chris Johnson
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Source: Money Morning