New Premium Stocks Alert Inside! [November 13, 2024]

Dear Readers,

Welcome back to our mid-week newsletter. Before we begin, we would like to share an update regarding our format.

We’re reaching out with an exciting update about your weekly stock recommendation newsletter! As we continuously seek to enhance the value we bring to you, we’ve decided to expand our stock recommendation format.

Instead of highlighting just one stock pick each week, we will be bringing you three handpicked stock recommendations. This change comes in response to your valuable feedback and our commitment to providing a broader perspective that caters to diverse investment goals. We believe that featuring multiple stock options will offer you more flexibility and better align with varied risk appetites and sector interests.

We look forward to helping you navigate the markets with even greater insight! Read on to discover our most recent stock picks and what makes them stand out.

This Week’s Stock Picks: A Closer Look at Our Process

Just as we have always done, this week we once again applied a data-driven approach to carefully select the best potential opportunities. We’ve used our proprietary ST Scoring Tool, combined with market momentum, analyst sentiment, and sector trends, to identify stocks that are primed for growth. Here's a detailed look at how we arrived at our picks this week:

Step 1: Identifying Momentum Stocks

We seek out stocks that not only have the potential to sustain their current upward momentum but also those that are primed for a strong rebound after a recent selloff. We focus on stocks that have shown resilience and are poised to continue their rise, backed by positive catalysts such as earnings reports, analyst upgrades, or favorable market trends. In addition, we also look for stocks that have been undervalued due to short-term pullbacks, with the potential to recover and outperform soon.

Step 2: Evaluating Analyst Sentiment

Next, we looked closely at analyst sentiment, focusing on stocks that have seen multiple analysts upgrading their price targets or issuing buy ratings. For example, WING, a pick that we had been considering, was upgraded by five different analyst firms in the past four months, with price targets consistently rising. These upgrades are a strong indication that experts are bullish, and this is a signal we always take into consideration when making our picks.

Step 3: Cross-Referencing with ST Scoring Tool

Every stock we considered this week was run through our ST Scoring Tool. This tool evaluates stocks across key metrics such as earnings growth, price momentum, and analyst sentiment, giving us a comprehensive picture of each stock's broad potential.

Step 4: Sector-Specific Considerations

After confirming that stocks had strong momentum and analyst backing, we considered the industry trends driving each stock's performance. For instance, IREN operates in the data center and crypto-mining space, which has benefited from rising demand for cloud computing and Bitcoin-related investments. The recent surge in Bitcoin prices, driven by factors such as Trump’s potential election victory, has driven up sentiment for IREN, pushing its price closer to its 52-week high.

However, we’re mindful of the risk factors tied to sector-specific trends. The current Bitcoin boom has contributed to the rise in IREN’s stock price, but it could see significant volatility if Bitcoin’s prices experience a correction.

Step 5: Risk Assessment

Risk plays a crucial role in our decision-making. While LRMR has shown strong short-term momentum, its pre-revenue status and lack of profitability mean it doesn't yet have all the valuation metrics we typically prefer. However, its recent analyst upgrades, particularly from big names like Oppenheimer and Robert Baird, indicate significant upside potential and its ST score suggests it's worth watching.

Similarly, TSEM has been on an upward trend since 2023, but with earnings due today, the stock has inherent short-term risk. Still, TSEM’s strong performance post-earnings in previous quarters, combined with analyst target prices significantly above its current price, makes it a stock to keep on the radar.

Step 6: Shortlisting the Best Picks

After reviewing the potential of each stock, we narrowed our picks to the following:

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