U.S. equities keep notching new highs. For now, perfection is in the air: The S&P 500 recorded a new record high every single day last week, a new weekly record for the last six weeks, and a record monthly close for the last seven months.
Wall Street sentiment keeps running a high fever, encouraged by hopes for action on tax legislation — with the Senate passing a budget resolution necessary to remove the filibuster threat from Democrats — and expectations that President Donald Trump will nominate Federal Reserve governor Jerome Powell (a status quo choice) to become the next Federal Reserve chairman.
Fiscal policy is revving up. Monetary policy is easy and is likely to remain that way. Corporate profits are high, and unemployment is extremely low. Utopia … at least until inflation appears. Which it hasn’t. So, no reason to worry.
As a result, a number of stocks are on a moon-shot trajectory. Here are five going vertical.
Stocks That Are Going Vertical: Johnson & Johnson (JNJ)
Johnson & Johnson (NYSE:JNJ) shares continue to extend higher, breaking out of a five-month consolidation range, after reporting solid results driven by an acceleration in pharmaceutical sales. Also helping has been increased interest in the healthcare space — particularly biotechs — as President Trump’s healthcare reform efforts have stalled.
The company will next report results on Jan. 23. Analysts are looking for earnings of $1.72 per share on revenues of $20.1 billion. When the company last reported on Oct. 17, earnings of $1.90 beat estimates by 10 cents on revenues that gained 10.3% year over year.
Stocks That Are Going Vertical: Bank of America (BAC)
Bank of America Corp (NYSE:BAC) shares lifted up and over their March highs last week, pushing out of an eight-month consolidation range. Big bank stocks in general have been getting a lift on better-than-expected results recently, shaking off concerns about tepid trading revenues. The bottom line was helped by ongoing improvement in credit losses, a 6% increase in loans and an slight increase to net interest margins.
BAC will next report results on Jan. 17. Analysts are looking for earnings of 48 cents per share on revenues of $22 billion. When it last reported on Oct. 13, earnings of 48 cents per share beat estimates by three cents on a 2.1% rise in revenues.
Stocks That Are Going Vertical: Intel (INTC)
Intel Corporation (NASDAQ:INTC) shares are extending out of a multimonth consolidation range, hitting levels not seen since the popping of the dot-com bubble in 2000. The move has been helped by general interest in semiconductor stocks right now and high memory chip prices.
Analysts at Stifel boosted their price target last week ahead of earnings on expectations of a strong server upgrade cycle.
INTC will next report results on Oct. 26 after the bell. Analysts are looking for earnings of 80 cents per share on revenues of $15.7 billion. When the company last reported on July 27, earnings of 72 cents beat estimates by four cents on a 9.1% rise in revenue.
Stocks That Are Going Vertical: Home Depot (HD)
Home Depot Inc (NYSE:HD) is lifting up out of a multiweek pullback, resuming the uptrend out of the May-September consolidation as investors pile in on expectations of boosted results related to hurricane damage rebuilding. On a recent visit to a Miami store, Oppenheimer analysts noted solid merchandising and a focus on contractor customers.
The company will next report results on Nov. 14 before the bell. Analysts are looking for earnings of $1.81 per share on revenues of $24.4 billion. When the company last reported on in Aug. 15 earnings of $2.25 per share beat estimates by three cents on a 6.2% rise in revenues.
Stocks That Are Going Vertical: Target (TGT)
Target Corporation (NYSE:TGT) shares are blasting up and out of a post-May consolidation range, returning to levels not seen since February. The company has launched a new effort to lower prices in-store — in response to competitive pressure from Amazon.com, Inc. (NASDAQ:AMZN) and Wal-Mart Stores Inc (NYSE:WMT) — and is looking at an update of its existing store base. Store checks indicate a move upmarket again, as higher-priced “near-luxury” goods offset the margin drag on basics.
The company will next report results on Nov. 15 before the bell. Analysts are looking for earnings of 86 cents per share on revenues of $16.5 billion. When the company last reported on Aug. 16, earnings of $1.23 per share beat estimates by four cents on a 1.6% rise in revenues.