7 stocks to buy on the eve of a major rally – InvestorPlace

Years ago, I heard Leon Cooperman, widely considered a legendary investor, say that there are two types of stock investors: those who like to find stocks to buy on the rise and those who like to buy stocks. in case of weakness. Usually I’m in the latter group.

Occasionally, however, I like to buy stocks as they go up. Therefore, I know a few methods to determine which stocks to buy that are about to rise sharply in the short to medium term.

An important rule for aggressive investors is fairly obvious: stocks that have risen recently are, all else being equal, likely to continue to do so for some time to come. This is especially true for names that have climbed despite stock market declines.

Additionally, stocks that have gained significantly on above-average trading volumes and those that have broken above their major moving averages should continue to rise.

While I’m not a big fan of the charts, I consider stocks that have shown an inverted head and shoulders or had one recently and continued to rise as good stocks to buy.

When I put on my “dynamic trading hat”, I like to buy sectors and/or stocks that the street likes. Finally, as always, I like to find stocks to buy whose companies have good fundamentals.

PLUG	Plug hole	$26.82
SPWR	Sun Power	$26.87
SHORE	Rivian	$37.92
LKNCY	Luckin	$17.95
NFLX	netflix	$244.52
ENPH	Phase	$308.78
FSLR	First Solar	$134.27

Power socket (PLUG)

Plug hole (NASDAQ:PLUG), which markets hydrogen forklifts and is becoming one of the world’s leading producers of green hydrogen, has certainly benefited from recent climate legislation. Since July 27, stocks have jumped about 60%, versus the slight decline in the S&P 500 over the same period.

Plug shares are well above their 50-day of $24.42 and their 200-day moving average of $23.46.

Over the past six months, PLUG stock has clearly formed an inverted head and shoulders pattern. Meanwhile, since mid-July, the daily stock trading volume has steadily exceeded 20 million. It was quite an unusual event in June.

PLUG is very well positioned to benefit from many governments’ embrace of green hydrogen and the hydrogen tax credit for hydrogen in the energy and health bill.

Sun Power (SPWR)

Sun Power (NASDAQ:SPWR) the stock has rebounded very strongly since the end of July, jumping almost 65%. SPWR specializes in the sale of solar panels to individuals.

SPWR stock is currently well above its 50-day moving average of $22.33 and 200-day of $19.70. Additionally, stocks have, like PLUG, formed an inverted head and shoulders pattern.

On the fundamental front, the deployment of rooftop solar panels has been very strong this year in the United States and Europe. As government policies become more supportive of residential solar power in both regions, this trend is only expected to accelerate.

Rivian (RIVN)

Rivian (NASDAQ:SHORE) the stock has soared 84% since late May. During the same period, the S&P500 was down slightly. Rivian manufactures and sells electric trucks.

Rivian is trading above its 50-day moving average of $34.60, but remains significantly below its 200-day moving average of $49.19.

On the daily volume front, Rivian never exceeded 30 million shares between May 17 and August 1. Conversely, its volume has been above that level for four days since Aug. 2, including a huge trading day on Sept. 16, when 70.4 million shares changed hands.

In terms of fundamentals, the electric vehicle manufacturer’s partnership with Daimler Mercedes-Benz, announced on September 8, seems to be a game changer. Besides giving RIVN another partner with deep pockets (with Amazon (NASDAQ:AMZN)), the deal increases Rivian’s respectability. The agreement also allows Rivian to gain a foothold in the large European automotive market.

Luckin’s Cafe (LKNCY)

Luckin (OTC:LKNCY) the stock has jumped 38% since July compared to the S&P 500’s less than 2% gain over the same period. Unsurprisingly, the shares were trading well above their 50-day and 200-day moving averages of $15.29 and $11.57, respectively.

The company owns and operates hundreds of cafes and a coffee delivery business in China.

Since June, Luckin’s trading volume has increased significantly. Prior to this month, its daily trading volume rarely exceeded 2 million shares; since that month, the metric has topped 2 million shares on a fairly regular basis. Before June, its volume was frequently below 1 million, and since June 1, this phenomenon has occurred quite rarely.

Fundamentally, the company’s balance sheet has improved significantly, as LKNCY “fully redeemed $110 million of senior notes to help lower interest costs” on August 26. The move indicates that the company’s financial position is relatively strong, while he is optimistic about his own longer-term prospects.

Responding to this development, Quo Vadis Equity analyst John Zolidis wrote that Luckin now has very little debt and he expects he will have about $1 billion in cash at the end of 2022.

Netflix (NFLX)

netflix (NASDAQ:NFLX) jumped about 45% in May while the S&P 500 fell less than 1% over the same period.

As of the market close on September 19, NFLX stock was trading above its 50-day moving average of $224.42, but well below its 200-day moving average of $324.02.

As for the fundamentals, the street is excited about the company’s decision to launch an ad-supported tier for the first time next year.

On September 19, Oppenheimer Analyst Jason Helfstein upgraded NFLX stock to “outperform” from “perform”. The analyst believes the move will boost the company’s subscribers and average revenue per user while decreasing the number of people dropping out of the service.

Enphase (ENPH)

Phase (NASDAQ:ENPH) the stock has jumped about 130% since May, compared to a decline of less than 1% for the S&P 500 over the same period, making it one of the best stocks to buy in a rally.

Enphase sells inverters and energy storage solutions used in conjunction with solar power deployments.

From May 4 to July 20, ENPH stock performed an inverse head and shoulders pattern, and stocks continued to climb thereafter. On the fundamentals front, in the second quarter the company’s U.S. revenue jumped 66% year-over-year, while its European sales soared 89% year-on-year.

First Solar (FSLR)

First Solar (NASDAQ:FSLR) the stock has climbed 125% since May, while the S&P 500 has fallen less than 1%. Between June 3 and July 26, FSLR stock performed an inverse head and shoulders pattern, and stocks have been pretty much rising steadily since then.

First Solar manufactures and markets solar modules used in large-scale solar power projects. The company “already has a solar module factory in Ohio, and it’s building another large solar module factory in the state.”

As of the market close on September 19, FSLR was trading well above its 50-day moving average and 200-day moving average of $106.48 and $83.92, respectively.

Fundamentally, the company is uniquely positioned to benefit from a strong domestic solar panel manufacturing incentive in the Energy Act.

As of the date of publication, Larry Ramer held shares of Plug Power, Rivian and Luckin.