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: IBM
Last week I profiled Palantir as your “Technology Stock of the Week” based on its position in the AI Services Industry. This week’s we’re taking another stock from the group, IBM (IBM).
Like Palantir, IBM has been on a strong bullish run, despite the weakness in other AI stocks like NVIDIA (NVDA), Microsoft (MSFT) and Alphabet (GOOGL).
IBM shares added 4% of value during the month of January, while all the other AI stocks fell 10 to 15%. Then, IBM followed through with a 15% rally following its earnings report.
Since that rally, IBM shares have been in the process of posting a healthy correction to $250. Investors that have been waiting to buy the stock on a pullback are likely to do so soon.
IBM shares continue to trade in a long-term bull market trend with a price target of $300.
Growth Stock of the Week: Walmart
Walmart (WMT) has returned to its former glory as a true growth stock as the world’s largest retailer benefits from its position in the market.
Shares of Walmart are trading 75% higher over the last year – outpacing most Nasdaq 100 companies – as the company has returned to its role as a price fighter for the average consumer.
The company fortified its role as an inflation fighter in 2023 and 2024, using its size to pressure suppliers to lower prices. That move allowed the company to maintain lower prices without affecting margins. Walmart also warned suppliers in August that they weren’t willing to accept price increases after “rolling back” prices on more than 7,000 products.
The return of inflation in 2025 is putting Walmart back at the top of investor’s lists as both a growth and defensive stock.
Walmart’s price chart indicates the approach of a breakout move higher.
Shares recently found support at their 50-day moving average near $90. This support comes for the stock after a short-term correction of just under 10% since December. The correction comes a month ahead of Walmart’s earnings report on February 20. Given the company’s fundamental performance over the last year, investors should expect a short-term “buy the rumor” rally ahead of the report followed by another 10-15% move higher following the earnings results.
Stock Under $10 of the Week: BigBear.ai Holdings, Inc.
I’ve covered BigBear.ai (BBAI) here for month as the stock has all of the looks of a much smaller Palantir (PLTR).
Last week, the company announced a major contracts with the United States Department of Defense (DoD) Chief Digital and Artificial Intelligence Office (CDAO). The company’s AI models will be used to better assess news media originating in countries that are potential foreign adversaries.
Shares of BBAI rallied more than 80% following the announcement but were stopped by the round-numbered $9 price.
This week, investors should expect to see the stock take a short technical break as shares became overbought from a short-term perspective following last week’s buying.
Watch for $8.00 to act as support for the stock as investors are eagerly looking for opportunities to buy into BigBear.ai ahead of its next run higher.
Income Stock of the Week: Darden Restaurants
That’s right, Darden (DRI) as a dividend play. It sounds funny, but considering that 87% of dividend yielding investors are in intermediate-term bear market trends (just look at the energy stocks) why would you buy them? No, instead let’s follow one of my rules that says, “don’t buy bad stocks for good dividends”.
Instead look at Darden.
After more than a year of repositioning itself in the restaurant universe, Darden has brought back its base clientele. The refresh of business resulted in another positive earnings report last month and a bull market trend that would make any of the Mag Seven Stocks happy.
Darden shares pay a 2.33% dividend yield but combine that with the 38% growth over six months and most investors would be please to hold the stock.
Shares of Darden are in a long-term bull market trend with a price target of $250.
Bearish Stock of the Week: Apple
Shares of Apple recently dopped below critical technical support on their way to $220 and lower.
Apple shares saw a wild day of trading last week following the company’s latest earnings report.
The company’s report, released on Thursday, beat analyst expectations for earnings per share and showed inline revenue growth of 4% for the year, but investors are worried about where the company is heading.
Recent reports of the iPhone losing its top spot with consumers in China are starting to reflect the company’s lack of innovation, something the company has suffered with for decades.
Apple’s rollout of its AI-enabled phones fell on light demand for the product as consumers are holding off on the purchase of the new, much more expensive phones. The company had hoped that the holiday gifting cycle would have given sales a boost, but to no avail.
Shares of Apple have now lost what little post-earnings momentum they had as the stock is heading to a test of its critical 200-day moving average.
That widely watched trendline currently sits at $220 as the last stand between Apple’s current price of $228 and $200.
While shares of Apple do remain in a long-term bull market trend, they should be considered a short-term bearish risk stock with a target price of $200.
— Chris Johnson
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Source: Money Morning