Heavy buying points for these 3 stocks

The summer concert season has arrived. Your favorite band takes the stage, the volume goes up and the crowd goes crazy.

The same goes for stock trading. When the volume rises, the masses take notice – and the party often continues.

Yes, holidays and three-day weekends often lead to low volume days during the warm months. But with the headlines pouring in as usual, rest assured there will be plenty of days to sizzle.

Traders who take a siesta when the calendar turns to June have historically missed out on some nice returns. Yardeni Research points out that June, July, and August have each delivered average positive returns in the S&P 500 since 1928. July posted the strongest average return (1.6%) of all months.

With US stocks showing signs of recovery, activity has picked up in recent weeks as traders try to take advantage of a potential market floor. The volume was unusually high in the next three names. And since they’re driven by buying pressure, encores can last well into summer.

Is Dell Technologies stock undervalued?

On May 27, Dell Technologies Inc. (NYSE: DELL) up 13% with nearly 16 million shares switching hands. The stock’s highest trading volume since November, it was followed by above-average volume over the next two days before volume faded over the weekend on some benign profit-taking.

There is reason to believe that the refreshed Dell trends will be higher from here. From a chart perspective, the stock regained its 50-day moving average at 3.5x its 90-day average volume. When this happens, it is often the start of a new uptrend supported by the main short-term trendline.

On the fundamentals side, Dell’s outlook is also optimistic. The stock’s recent rise was the result of a resounding first-quarter gain as demand for business PCs is expected to continue. As companies welcome employees back to the office, they are also welcoming new equipment to replace aging (and fragile) infrastructure.

To help turn this increasing demand into rising profits, management is doing a commendable job in managing parts shortages and increased logistics costs. A proven ability to pass on higher costs to customers as well has led Street to forecast earnings growth of 8% in the current fiscal year, despite ongoing supply chain hurdles. It won’t be long before these OG, but undervalued, tech stocks hit a new all-time high.

Will Roche Holding Stock Increase?

Roche Holding AG (OTCMKTS: RHHBY) bucked the market trend by rising to an all-time high in April before succumbing to broader market weakness. Recent trading patterns suggest it is moving north again.

The Swiss pharmaceutical giant made three consecutive high-volume jumps at the end of last month. The low volume pullback has since shaken the weak hands and created a good starting point for those who missed the run.

Roche recently announced that it has received European regulatory approval for Polivy, a drug used in combination with existing therapies to treat lymphoma in adult patients. This was soon followed by the release of positive data on another lymphoma drug targeting more aggressive cases. Subsequently, the FDA granted a label extension for Roche’s Evrysdi for use in infants with spinal muscular atrophy (SMA).

Positive regulatory momentum has led to renewed interest in Roche stocks, which are still cheap at 15x this year’s earnings estimate. If multiple expansions can bring the stock back to its historical average P/E of 21x over five years, it would set a new high in the mid-$50 range.

What is a good utility stock?

Alliant Energy Corporation (NASDAQ: LNT) has set its sights on a new all-time high after last week’s big green volume spike. As of May 31, more than 10 million shares were traded in a utility stock that typically changes hands about 1.5 million shares daily.

The regulated electric utility was a month away from reporting a 13% rise in profits in the first quarter as sparks started to fly. In the absence of any known insider buys or major hedge fund purchases, the stock seemed to be in for a jolt of feeling that inflation may have peaked — and that the Fed’s aggressive monetary policy could soon be slackened.

A pause in rising interest rates is good news for utilities that often rely heavily on the debt market to raise capital for growth projects. Lower rates also put more money in the pockets of utility companies for dividends, a primary investment attribute of the industry. Alliant Energy has increased its dividend for 20 consecutive years.

Here again, Alliant’s stock is attractive because of the company’s focus on renewable energy sources. Over the next four years, the company plans to invest $2.5 billion in renewable energy projects, such as natural gas. It is already the third largest owner of regulated wind power in the country.

As a stable income generator, Alliant Energy is not going to skyrocket any time soon. But with bullish trading volume back in its favor, it will continue to charge higher, as it has for decades.


This post Heavy buying points for these 3 stocks was original published at “https://www.entrepreneur.com/article/429104”

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