I'm Eyeing These Four Stocks
Here's why Humacyte and three other names are on my radar right now; also, investors are getting into position for consumer price index report.
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The market is higher on Tuesday morning, with breadth running just slightly positive. The Nasdaq 100 and "Magnificent Seven" tech names are leading, while the small-cap Russell 2000 are lagging. There isn’t any significant news flow, and it mostly feels like just a reflexive rebound after a poor day for big-cap technology on Monday.
There is likely some positioning action in front of the consumer price index report, which will be released at 8:30 a.m. ET on Thursday. Weekly unemployment claims are on Thursday, followed by the producer price index and bank earnings on Friday.
Investors are obviously not feeling too worried right now and remain quite optimistic about the economic situation. There are still some folks worried about the potential for a recession or a significant economic slowdown, but they are a distinct minority.
I’ve been patiently waiting with a high level of cash for more buying opportunities. I’ve been hoping for some deeper pullbacks and less frothy sentiment, but that just isn’t happening. Stocks have been steady but lackluster, and there haven’t been any significant pockets of momentum. There are a few opportunities for aggressive stock pickers, but the number of stocks that are making big moves is quite limited. On Tuesday morning, I saw just 11 stocks up more than 10%.
Stocks I'm Watching
One of the most intriguing stocks I’m following is Humacyte HUMA. I’ve discussed this name numerous times and why I like it. The company was supposed to have received Food and Drug Administration approval for its bioengineered human tissue on Aug. 8, but the decision was delayed probably due to administrative issues at the FDA. The company remains extremely confident that approval is coming, but no one knows when, and that has created tremendous uncertainty and has weighed on the stock for two months now. Management continues to move forward with plans for sales the minute approval is obtained, and they are also moving forward with other applications of its technology, which look very promising.
Once the uncertainty of the FDA is lifted, I expect HUMA to be one of the most actively traded small caps in the market, but it could be next week or in months.
I have a few other names like that on my radar that are awaiting news catalysts, but in the current market environment, there isn’t much to do but wait.
Nvidia NVDA continues to act very well, and I’m going to stay with that trade. I’m also eyeing Viking Therapeutics VKTX for an addition as it awaits Obesity Week in early November. Redwire RDW, which I discussed yesterday, made a solid move, and I’ve reduced that position.
No new buys so far today.
At the time of publication, DePorre was long HUMA, NVDA, RDW, VKTX.
