5 Stocks We Want to Buy on Weakness Ahead of Earnings

The $10,000 Portfolio is going to try to take advantage of pre-earnings weakness and add to a number of positions ahead of earnings. The portfolio will add to positions that are both underperforming and/or incomplete.

The names that we intend to increase position size for today (Friday) would be Alto Ingredients (ALTO), Inseego (INSG), Planet Labs (PL), Velo3D (VELO) and our latest initiation Rocket Lab (RKLB). That one is a re-initiation.

Friday’s Intentions

– Purchase 25 shares of ALTO at or close to the last sale of $4.72.

– Purchase 10 shares of INSG at or close to the last sale of $6.82.

– Purchase 10 shares of PL at or close to the last sale of $20.73.

– Purchase 2 shares of RKLB at or close to the last sale of $65.69.

– Purchase 20 shares of VELO at or close to the last sale of $9.90.

Thursday’s Intentions vs. Actual Trades

– Purchase 5 shares of RKLB at or close to the last sale of $68.00.
– Bought 2 shares of RKLB at $69.12, left 3 shares nothing done.

– Purchase 40 shares of RXT at or close to the last sale of $4.09.
– Bought 40 shares of RXT at $4.03.

Portfolio News

Rocket Lab

After the U.S. Air Force awarded Rocket Lab that $266 million firm-fixed price completion contract for 12 HASTE suborbital launches, with an option for up to six additional missions, Stifel analyst Erik Rasmussen commented. Rasmussen wrote that he views the award, which it notes was competitively awarded among three bidders, as “strong validation of HASTE’s operational performance” and growing strategic relevance as the U.S. accelerates its hypersonic weapons development programs.

Rasmussen reiterated his “buy” rating on RKLB along with his $132 price target. He is rated five stars out of five by TipRanks. Rasmussen has posted a 78% success rate over the past two years while generating an average return of 73.1%.

Additionally, on Thursday, Rocket Lab announced that the company will meet with Cantor Fitzgerald in Boston and New York City from July 28 through 30. Andres Sheppard of Cantor Fitzgerald, who is rated by TipRanks four stars out of five, has a “buy” rating on RKLB with a $96 price target price. Sheppard has had a 40% success rate over two years but has generated an average return of 12.7%.

SoFi Technologies

On Friday morning, analyst Matthew Coad of Truist Financial was assigned coverage of SoFi Technologies (SOFI) by his company. Coad rated the stock as a “hold” while increasing his firm’s price target price to $18 from $17. Coad is rated one star out of five by TipRanks. He has posted a 48% success rate over the past two years while generating an average return of -4.1%.

Upcoming Portfolio Earnings

SoFi Technologies: After the closing bell on Wednesday. Expected: GAAP EPS of $0.11 on revenue of $1.12 billion. Would compare to the year-ago EPS print of $0.09, reflecting on annual sales growth of 30.4%.

Current Positions

Long 175 shares of ALTO at $5.4527. Target Price: $8. Last sale: $4.72.

Long 80 shares of EVLV at $5.8959. Target Price: $8.50. Last sale: $5.27.

Long 40 shares of INSG at $8.2863. Target Price: $11. Last sale: $6.87.

Long 100 shares of OCUL at $8.3569. Target Price: $11. Last sale: $8.59.
Short one OCUL $11 Sep 18th call at $1.65, Last sale: $0.68.

Long 250 shares of ONDS at $8.4266. Target Price: $14. Last sale: $8.06.

Long 30 shares of PL at $27.0367. Target Price $46. Last sale: $20.70.

Long 2 shares of RKLB at $69.12. Target Price $98. Last sale: $65.69.

Long 100 shares of RXT at $4.886. No Target Price. Last sale: $4.10.

Long 150 shares of SOFI at $15.994. Target Price: $24. Last sale: $16.64.
Short one SOFI August 21st $20 call at $1.02. Last sale: $0.31.

Long 30 shares of SWBI at $15.74. Target Price: $19. Last sale: $14.66.

Long 80 shares of VELO at $13.1308. Target Price: $18. Right Now. Last sale: $9.90.

Cash: $757.11.

Portfolio Value: $9,930.53, -0.7% from inception on March 24.

At the time of publication, Guilfoyle was was long ALTO, EVLV, INSG, OCUL, ONDS, PL, RXT, SOFI, SWBI and VELO.