Price Levels Where We'd Consider Adding to Each Portfolio Position
We're updating our portfolio table of consensus EPS, panic points, and potential price levels of interest as we prepare for a negative reaction to the Fed.
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We are updating our table of consensus EPS expectations for the portfolio’s holdings, and in that table, we are also sharing potential levels at which we would consider adding to each position. We’re doing this given our concern the Fed could disappoint the market later this week, and we want to be prepared.
While this is part of our preparation, with any action we may take we will also contemplate new developments as well as the market setup. In other words, these are potential areas of interest and are not set in stone.
Should the Fed deliver what we expect, and the market reacts as we suspect it will, we will let the stock market fully digest things before making any moves.
We are still examining potential Bullpen candidates, whicj we are aiming to share before the Fed concludes its policy meeting.
EPS Changes
There are only a few updates to consensus EPS expectations in today’s table outside of a penny or so adjustment for Lockheed Martin LMT, Universal Display OLED, and Waste Management WM for 2025.
Those are:
Axon’s AXON 2025 consensus EPS was lifted to $5.91 from $5.87, which means expected EPS growth is even faster compared to the $4.80 the company is estimated to deliver this year.
Shares of Builders FirstSource BLDR have been on the move lately, up more than 30% quarter to date. Without question, some of that is due to the market’s rate-cut expectations and the likely impact to come on housing, but consensus 2025 EPS has also moved up and now sits at $12.05 compared to $11.90 several weeks ago.
Panic Points
While several companies are out way ahead of our usual panic point levels, such as Builders FirstSource, Universal Display, and Dutch Bros BROS, we are not changing any panic points this week. The reason is simple: Ahead of the Fed meeting, we do not want to make any panic point changes that risk members making any rash moves should the market react very poorly to the Fed’s updated set of economic projections.
A Note on Elevance
Coming off last week’s presidential debate, Vice President Harris reiterated that “healthcare is a right, not a privilege” and that comment has led shares of Three-rated Elevance Health ELV to move higher over the last few days. That is putting them on a trajectory that could intersect with our $560 price target. Should they move past our target and become oversold, the position, or at least some of it could be a source of additional funds for the Portfolio.
At the time of publication, TheStreet Pro Portfolio was long LMT, OLED, WM, AXON, BLDR, BROS and ELV.
