We're Lifting Our Price Targets on Two Portfolio Positions
It's time to make these adjustments. Here's why.
You've reached your free article limit
You've read 0 of 1 free Pro articles.
Even though the market is trading off today, the overall move since the start of November has led to several portfolio holdings approaching their price targets. That list includes ServiceNow NOW, Eaton ETN, and Mastercard MA, among others.
Based on what we learned from Cisco’s CSCO October quarter earnings conference call last night, we are making the following adjustments.
Raising Our ServiceNow Price Target to $1,100
We are lifting our NOW price target to $1,100 from $1,000 — but as we make this move, we will revisit this fresh target following quarterly results next week from Nvidia NVDA and Elastic ESTC. Despite that target boost, with a relative strength index (RSI) of 72.7, NOW is overbought and in keeping with our Two rating, we would advise members to wait for a pullback before adding additional shares.
NOW remains on our shopping list, but the key to picking up more shares will be a more balanced risk-to-reward tradeoff than we have now. With that in mind, while there is a gap in the chart near $975, the next level of support is the 50-day moving average at $928.67.
Boosting Our Eaton Price Target to $400
Cisco’s accelerating data center product order growth, rising capital spending levels from the likes of Amazon AMZN, Alphabet GOOGL, Meta META, and Microsoft MSFT, and positive development pipeline comments from data center REIT companies Digital Realty Trust DLR and Equinix EQIX is leading us to lift our Eaton price target to $400 from $380. While that increases the upside we see in the shares, it isn’t quite enough to warrant revising our Two rating.
Here as well, ETN shares have moved significantly in November, up just under 9%, but where we would look to potentially add more shares is near $335 or so. That is not near the current 50-day moving average but it would also fill the gap created by the stock’s post-Election Day pop.
At the time of publication, TheStreet Pro Portfolio was long NOW, ETN, MA, AMZN, GOOGL, META and MSFT.
