As April ends, the talking heads on TV are calling for everybody to “sell in May and go away.”
But right now is actually the perfect time to buy – especially if we’re talking about volatility expert Mark Sebastian’s top long-term trade pick. He’s my newest colleague, and he’s discovered a new trend in one of my favorite sectors – retail.
All signs are pointing towards one retailer in particular – and Mark is targeting up to a 1,000% gain by year end with this trade strategy.
He’s revealing all the details tomorrow at 4:00 p.m. ET during the official Profit Takeover launch. It’s free – click here to sign up.
Mark’s retail trade isn’t the only stock you should be buying though.
See, what business media has failed to mention is that we’re heading into the fattest part of earnings season so far this year.
More than 800 companies are providing their quarterly results over the next week – of those, more than 130 are listed in the S&P 500.
Which is why you shouldn’t be selling right now!
While everyone else is leaving the market, you should be buying.
Earnings reports alone are one of the biggest catalytic market drivers we can predictably use for big profits.
But now with the mainstream news warning everyone to sell and leave the market, we can swoop in and grab these stocks at discount prices.
My technical charts have pinpointed the three stocks that stand to benefit the most from this situation.
Here are the three stocks you must buy before earnings…
CJ’s Fat Earnings Stock #1
C.H. Robinson Worldwide, Inc. (NASDAQ:CHRW)
Transportation stocks are one of the stronger sectors in the market as the reopening trade continues to develop.
Trucking companies are seeing increased load and mile bookings as retail and industrial supply chains begin to improve after a year of COVID-related cutoffs and lack of demand.
Fuel prices remain relatively low, and many of these companies are already hedging higher prices using derivatives.
Look for 2021 to continue building load demand for everything from retail to building supplies and industrial / infrastructure products which will play well for the fundamental outlook.
Technically, CHRW maintains its bullish trend with the 50-day and 200-day moving averages combining for support at $95. I’m targeting a move in the rally to $110.
CJ’s Fat Earnings Stock #2
Enphase Energy, Inc. (NASDAQ:ENPH)
ENPH is truly one of the “new technology” leaders in the clean energy space. The company develops and sells microconverter systems used to work with solar panels to change solar power to power that can be used in your house (I’m keeping things simple here).
ENPH has been a relative strength leader in tech group over the last month as shares have put in a technical bottom and are already shifting their trendlines into bullish patterns.
We’re seeing traders start to take smaller positions in the stock as the company approaches its earnings report later this week, a sign that the market is sensing the fact that ENPH may repeat last quarter’s 15% post-earnings spike higher.
Of course, shares are sitting well off their February highs as the stock is trading at a 25% discount to the prices paid immediately after last quarter’s report.
The deep correction in the alternative electric shares is giving investors an opportunity to grab these stocks at a discount ahead of what is likely to be a profit-charged second quarter for the group.
ENPH is among my “best in breed” class of performers in the group, and considered a buy with a short-term target price of 220.00.
CJ’s Fat Earnings Stock #3:
Carnival Corporation & plc (NYSE:CCL)
The last two weeks have been rough on the reopening trade as pandemic headlines have been on the rise. While this was to be expected as we make our way towards the light at the end of the tunnel, the wait may drag out a little further.
CCL will announce their quarterly earnings this week, but more anticipate are any comments that the company may make on their future guidance.
Now, we’re not going to see the company give any information on where they expect things to go from a financial standpoint.
Nobody knows what the Centers for Disease Control and Prevention (CDC) will decide to do, and their decision heavily influences CCL‘s revenues.
What the company will have is the opportunity to drop a “kitchen sink” quarter on investors.
A “kitchen sink” happens when a company drops all of the bad news that they possibly can on the market in order to cleanse the outlook. In other words, just get every bit of bad news out there so that traders will be able to buy or sell the stock on expectations – which are set lower from the kitchen sink announcement – instead of interpretations.
Kitchen sink aside, CCL shares are trading in an intermediate-term bullish trend which is likely to get some help in moving higher by this week’s earnings report.
A break above $30 will get a wider group of investors active in the stock as well as spark a short-covering rally on its way to my target of $36.00.