Hope you had a good weekend.
Today, we’re going to do something a little different.
You see, usually, I would spotlight three stocks that I think could surge this week.
But that kind of short-term play only works when you have momentum on your side (despite what some “gurus” would have you believe).
And with Fed Chair Powell telling Congress last week that two more rate hikes this year are very likely – I believe short-term momentum is likely to trend negative for a while longer.
So instead, what I’m going to do this week is spotlight three stocks that have exhibited strong medium-term momentum – but are temporarily pulling back before likely resuming their upward trend.
This is your chance to scoop them up at lower prices if you want.
Palantir Technologies Inc. (PLTR)
After more than doubling in 2023, Palantir’s stock is taking a (significant) breather – having pulled back by nearly 17% over the past week. That pullback was not just because of the general market. The stock was also downgraded by Raymond James from Strong Buy to Outperform, which also impacted the price.
Despite all this, the AI catalyst remains strong. The company has recently rolled out a military AI platform that its CEO says is seeing “unprecedented demand”. It’s expanded into healthcare via a multi-year partnership with Cleveland Clinic. And on top of that, Palantir has also recently hit profitability.
Combine all that, and you might want to consider taking advantage of the pullback in Palantir stock.
Tesla, Inc. (TSLA)
Tesla stock has also more than doubled this year – exhibiting some serious momentum as it goes back to where it was a year ago. Over the past week, this stock has retraced by less than 1%, which is much lower than the broader market. This is a great sign that shows it wants to go up.
Plus,the stock is still nearly 40% down from its all-time highs. And with its robo taxis potentially hitting the streets this year, that could be another major catalyst to its stock. In fact, some analysts predict that robot taxis could add over $150 billion to the company’s market cap.
Opera Limited (OPRA)
Developer of the sixth most popular browser in the world, you would think Opera was merely a tiny company not worth paying attention to. But its stock has some of the strongest momentum I’ve seen – nearly tripling this year.
And if it wasn’t for the stock pulling back by 21% last week, it would now be sitting at all-time highs (contrary to many tech stocks). That’s why now may be a good time to strike. Plus, the stock is not only riding the AI tailwinds thanks to the recent launch of a ChatGPT-integrated browser, the company is actually profitable and it’s also just announced a semiannual dividend. To me, that shows confidence.
To your wealth,
Felix @ Ace of Investing
