Weekly Performance Review

The holiday shortened trading week saw the S&P set a fresh record high on Monday as another round of unemployment benefits and stimulus checks were announced. The market has increasingly focused on the size and magnitude of the stimulus bill as well as the rising coronavirus case count and initial stages of the vaccine rollout.

The major indexes hit all-time highs but ended the week mixed, with small-caps recording losses. Stocks closed out a year of solid gains led by the technology-heavy Nasdaq Composite Index, which notched its best annual performance since 2009. Health care shares outperformed within the S&P 500 Index, and consumer discretionary shares were also strong, helped by gains in a new arrival to the index, electric vehicle maker Tesla. Energy stocks lagged, and the large technology sector was also weak. Trading was relatively light ahead of the market’s closure on Friday in observance of the New Year’s Day holiday.

Continue to the article for a recap of this week’s WSWD trade alerts.  

12-28-2020–CVLT down 4.37%

About 80% of CommVault Systems (CVLT)  revenues are on some sort of subscription basis, which is typically viewed as more stable and predictable. 

In September, CommVault announced it would make several products – New Commvault Disaster Recovery, Commvault Backup & Recovery and Commvault Complete Data Protection – available to general customers.

John Freeman of CFRA, one of a few analyst outfits that use Strong Buy ratings gives one to CommVault.  He cites a laundry list of points that back up the bull case, including “solid progress for CEO (Sanjay) Mirchandani’s turnaround plan,” the expansion of a Microsoft (MSFT) partnership, attractive valuation and “large conservative, loyal customers.” 

12-29-2020–QTS up 0.88%

QTS Realty Trust (QTS) is organized as a real estate investment trust (REIT), which exempts it from federal taxes in exchange for distributing at least 90% of its earnings to shareholders in the form of dividends.

QTS is one of the smaller players in its space, with a market cap of $3.94 billion, but remains acquisitive.  Fifteen analysts have sounded off on QTS within the past twelve months.  There are currently 3 Hold ratings and 12 Buy ratings.

12-29-2020–NTAP up 1.58%

NetApp (NTAP) stock has been on the upswing for the past three months, stacking on more than 50% since late September.  Still, the stock is only up about 5% for the year.  With a trailing twelve month P/E ratio of 19 the stock may have plenty of runway in 2021.  NTAP also brings its investors a 2.9% dividend yield. 

12-29-2020–LAZR up 9.68%

Luminar (LAZR) expects to generate revenues of 15 million in 2020, which is expected to jump to $837 million by 2025.  The company has recorded year-over-year revenue growth (CAGR) of 7.8%. 

The company has leveraged multiple technological breakthrough innovations to develop the industry’s best LiDAR sensors.  InvestorPlace senior Investment Analyst, Luke Lango, recently noted that LAZR stock might have nearly 500% upside potential over the next few years.  Which means now is a good time to consider an investment in LAZR.  

12-30-2020–FVRR down 2.52%

Fiverr International’s (FVRR)  revenue has grown at a compound annual growth rate of 66.1% year-over-year.  FVRR’s revenue is estimated to increase 83.2% for the quarter ended December 31, 2020 and 37.5% in 2021.  The company’s EPS is expected to rise 250% for the quarter ended December 31, 2020 and 77.1% per year over the next five years.  

Despite generating decent gains this year, FVRR has plenty of upside left we believe.  Of 8 analysts offering recommendations, 4 rate the stock a Strong Buy, 1 rates it Moderate Buy and there are 3 Hold ratings.   

12-31-2020–GRBK down 1.54%

Record low interest rates and a supply shortage in the market are bullish signs for Green Brick Partners (GRBK), which currently has a trailing twelve month P/E ratio of 11.8%.  Of 4 analysts covering the stock, 3 rate it a Strong Buy and one says Hold

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