Ringing the Register on 2 Holdings in This Overbought Market
Here’s what we’re watching next for a pair of portfolio positions.
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| Symbol | Transaction Type | # Shares Traded | Recent Price $ | Shares Owned After Trade | % Portfolio |
|---|---|---|---|---|---|
AXON | Sell | 57 | 373 | 443 | 3.6% |
LMT | Sell | 35 | 557 | 247 | 3.0% |
After you receive this alert, we will make the following trades:
- Sell 57 shares of Axon AXON at or near $373. Following the trade, the portfolio will own 443 AXON shares, roughly 3.6% of the portfolio.
- Sell 35 shares of Lockheed Martin LMT at or near $557. Following the trade, the portfolio will own 247 LMT shares, roughly 3.0% of the portfolio.
In keeping with our earlier comments on Wednesday, with the stock market short-term overbought and both AXON and LMT shares both having made pronounced moves over the last several weeks (see the charts below) and both overbought (RSI readings over 70), we’re opting to prudently lock in a slice of these gains.
As we’ve discussed during Office Hours and in other recent alerts, we recognize that our price target for LMT shares needs to be revised higher, something we will tackle as Lockheed shares its multi-year delivery schedule. We know there will be a far larger number of F-35s delivered in 2025 compared to this year and last year, which means we will want to own LMT shares as that unfolds. More specifics will help us establish a more accurate target for the shares. The current range of Wall Street price targets that span $520 to $635 is wide enough to drive an 18-wheeler through.
Turning to Axon shares, we have had a considerable run with them since we first added them to the portfolio in February 2023 at $184. The shares are nearing our $385 target, and the price target highs on Wall Street clock in around $400. The key to further upside past even those higher targets will be the continued mix shift toward higher-margin cloud services, something that will only be revealed in Axon’s quarterly earnings. And because we are in an election year, we will want to be mindful about public safety spending prospects and how that could shape demand for Axon in the next few years.
Following the trades, the portfolio’s cash levels should climb to roughly 9.7% of the portfolio’s assets subject to the final trade prices.
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(Please note that we are looking to execute these trades at or near the share price mentioned above. Once the trade is completed, subscribers can see the trade's executed price here. Be sure to toggle the chart to sort by Purchase Date.)
At the time of publication, TheStreet Pro Portfolio was long AXON and LMT.
