7 Stocks I'm Actively Trading as Nvidia Euphoria Cools Off
As I look for new ideas, here are updates on some of my current small-cap positions.
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Market action is mixed on Thursday as the Nvidia NVDA euphoria cools off and market players contemplate the May jobs report due out on Friday at 8.30 am ET. Breadth is running slightly negative due to the Russell 2000 IWM pulling back about 0.6% after a 1.5% upside move on Wednesday.
Nvidia has benefited from traders who are front-running the 10-for-1 stock split that will occur on Monday. That pushed the company's market cap over $3 trillion and produced a flood of additional media coverage. There are now some traders looking to time a top, but there is still plenty of momentum to support the stock.
Overall there isn’t much speculative action right now. My list of big movers on increased volume is quite short, and we don’t have too many at day highs right now.
I’m digging for some new ideas but don’t see anything really compelling at the moment. I need to do more work on some names and will keep you posted.
Here are some positions that I am still holding and am actively trading. There are several I plan to add substantially as technical conditions improve.
ADMA Biologics ADMA. This has been a great performer and is hitting new highs as I write. It is a little extended now, but the valuation is still attractive and has very good technical and operational momentum. I will look to add on pullbacks.
CompoSecure CMPO has faded back under recent secondary pricing at $6.50. Fundamentals are very good, with a $1.05 EPS estimate for 2024 and $1.21 for 2025. I’ll be looking to add to my holdings as it stays above the 200-day simple moving average of around $6.
Despegar.com DESP gapped higher on good earnings and is now forming a high-level base. This may need some time to consolidate further, but with 50% EPS growth forecasted in 2024, it should continue to attract interest.
Humacyte HUMA is my favorite name in the long term. It has attracted a lot of attention recently as it awaits a very important FDA decision in early August. It is a good short-term trading vehicle while awaiting news.
LifeMD LFMD has pulled back recently but seems to have found support at its 200-day simple moving average. It has several analysts' "buy" reiterations, but the stock has suffered due to concerns about competition. Its weight-loss business is performing well, and another solid quarter of earnings is likely to create some anticipation.
Sensus Healthcare SRTS trades extremely thin, but it’s a compelling value, and the market is recognizing that fact. I’m trying to find additional entries in front of the next earnings report.
Xeris Biopharma XERS is a stock I’ve mentioned quite often. The company is doing extremely well and could have significant news at any time, but the stock has not been able to generate sustained momentum. I’m staying patient while awaiting additional news flow.
I have quite a few other positions. If you’d like an update on anything, please post a note below.
At the time of publication, Rev Shark was long ADMA, CMPO, DESP, HUMA, LFMD, SRTS and XERS.
Please note that due to factors including low market capitalization and/or insufficient public float, we consider several of the names mentioned to be small-cap stocks. You should be aware that such stocks are subject to more risk than stocks of larger companies, including greater volatility, lower liquidity and less publicly available information, and that postings such as this one can have an effect on their stock prices.
