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Today's Stock Ideas
Friday, March 19, 2021
Good morning and happy Friday, everyone.
The market got slammed pretty hard yesterday, and all sectors finished in the red, leaving investors nowhere to hide. We know it is frustrating but do not be discouraged. This happens. As long as you remain disciplined and manage risk, you will be fine as it only takes one or two good wins to make your month.
Let’s stay focused and take advantage of some great ideas we found for today.
Equity Residential gives us an amazing setup today with great risk/reward. The stock hit 20-day highs this week and has consolidated in a very tight range for two days. Today, we are looking for a breakout. Our entry will be at $74. If that triggers, our stop loss will be at $72.50 and our price target $84.
Lennar had a monster day on Wednesday after earnings and gave back nearly half of that gain yesterday due to all of the selling in the markets. Today, we look to take advantage of this and get in at $95 with a price target of $110. If it trades below $92.50, we will pull the plug on the trade.
Nordstrom Inc had a massive run-up after their debut of Livestream selling. With retail being one of the hardest-hit sectors due to the pandemic, Nordstrom’s proactive approach in shifting to online sales really caught investors’ attention. The stock has now pulled back for 3 days and gives us a solid entry to participate in the next move higher. We like this one above $40.
Rubius Therapeutics Inc broke out this week on more than 20X their normal volume. This tells us that institutions are starting to build a position in this stock. Aside from the market's weakness, we attribute the last few days of selling to profit-taking as the initial move was pretty substantial. We think this stock still has a lot of gas in the tank. We plan to buy and hold as long as it continues to close strong.
Discovery Inc was completely oblivious to all of the selling going on yesterday. Not only did the stock come out unscathed, but it closed on the high of the day and less than $1 away from all-time highs. If this stock trades above $76, we will buy and have a stop loss set at $70.50.