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Time to Take Profits: 2 Stocks to Buy on a Pullback
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The stock market has been on an almost unbelievable run over the last three weeks; however, I think it warrants some caution from investors. While I remain a bull into year end, I don’t think now is the time to get aggressive on the long side and investors would be prudent to book some gains here.
I want to be clear, by no means am I expecting something catastrophic to happen, but when the Nasdaq 100 rallies 13% in just a couple of weeks I am not in a rush to buy. I think a pull back to the breakout level is a reasonable expectation over the next couple of weeks and would set the market up nicely for a year end rally.
Here, I am going to share two stocks I would like to buy in case of a market pullback. This is definitely a more tactical look at the market, so investors who don’t trade actively should be comfortable maintaining long exposure through year end.
Image Source: TradingView
Copart
Copart (CPRT - Free Report) , an industry dominating car auction company has been a fantastic stock to own all year. It has recently broken out from a clear bullish consolidation and would be a great stock to buy on a pullback.
Image Source: TradingView
Copart enjoys a Zacks Rank #2 (Buy) rating, reflecting upward trending earnings revisions. Current quarter earnings estimates have been revised higher by 3.2% over the last two months and are forecast to climb 23% YoY to $0.32 per share. FY23 earnings estimates have been increased by nearly 3% and are projected to grow 12.7% YoY.
Image Source: Zacks Investment Research
Amazon
Amazon (AMZN - Free Report) is another stock that has traded very strongly off the lows this last month. After forming a descending wedge, the stock broke out and traded aggressively higher. Now I think a pullback in the stock price may set up another powerful year end move.
Image Source: TradingView
Amazon too has a Zacks Rank #2 (Buy) rating, indicating upward trending earnings revisions. Current quarter earnings estimates have been upgraded by 11.8% over the last month and are expected to grow an incredible 262% YoY to $0.76 per share. FY23 earnings estimates have been boosted by nearly 20% and are projected to increase 276% YoY to $2.67 per share.
Image Source: Zacks Investment Research
Bottom Line
Both of these stocks have performed extremely well YTD and I believe will finish the year strong as well. There are plenty of bullish catalysts to send this market higher in the last quarter, but because the market is so extended, I think a slight pullback is in the cards over the next couple of weeks.
Best of luck traders!
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Time to Take Profits: 2 Stocks to Buy on a Pullback
The stock market has been on an almost unbelievable run over the last three weeks; however, I think it warrants some caution from investors. While I remain a bull into year end, I don’t think now is the time to get aggressive on the long side and investors would be prudent to book some gains here.
I want to be clear, by no means am I expecting something catastrophic to happen, but when the Nasdaq 100 rallies 13% in just a couple of weeks I am not in a rush to buy. I think a pull back to the breakout level is a reasonable expectation over the next couple of weeks and would set the market up nicely for a year end rally.
Here, I am going to share two stocks I would like to buy in case of a market pullback. This is definitely a more tactical look at the market, so investors who don’t trade actively should be comfortable maintaining long exposure through year end.
Image Source: TradingView
Copart
Copart (CPRT - Free Report) , an industry dominating car auction company has been a fantastic stock to own all year. It has recently broken out from a clear bullish consolidation and would be a great stock to buy on a pullback.
Image Source: TradingView
Copart enjoys a Zacks Rank #2 (Buy) rating, reflecting upward trending earnings revisions. Current quarter earnings estimates have been revised higher by 3.2% over the last two months and are forecast to climb 23% YoY to $0.32 per share. FY23 earnings estimates have been increased by nearly 3% and are projected to grow 12.7% YoY.
Image Source: Zacks Investment Research
Amazon
Amazon (AMZN - Free Report) is another stock that has traded very strongly off the lows this last month. After forming a descending wedge, the stock broke out and traded aggressively higher. Now I think a pullback in the stock price may set up another powerful year end move.
Image Source: TradingView
Amazon too has a Zacks Rank #2 (Buy) rating, indicating upward trending earnings revisions. Current quarter earnings estimates have been upgraded by 11.8% over the last month and are expected to grow an incredible 262% YoY to $0.76 per share. FY23 earnings estimates have been boosted by nearly 20% and are projected to increase 276% YoY to $2.67 per share.
Image Source: Zacks Investment Research
Bottom Line
Both of these stocks have performed extremely well YTD and I believe will finish the year strong as well. There are plenty of bullish catalysts to send this market higher in the last quarter, but because the market is so extended, I think a slight pullback is in the cards over the next couple of weeks.
Best of luck traders!