Tesla and 3 More Stocks Whose Charts Point to Post-Earnings Gains — Barrons.com
Dow Jones Newswires ·
By Doug Busch
Moves following corporate earnings, which often clarify the technical picture for a stock, are pointing to gains for some well-known names.
The charts for Tesla, Alphabet, Chipotle Mexican Grill, and Las Vegas Sands stand out among those for more than 100 companies, reviewed by Barron's, that reported their earnings last week.
Shares of Tesla, which is being thought of less as an electric-vehicle play, and more of a bet on artificial intelligence, robotics and energy storage, dropped 8.1% Thursday in the stock's first negative reaction to earnings in four quarters.
Yet the signals are positive in terms of technical analysis. The stock has bounced cleanly off the round $300 level, coiling into a symmetrical triangle since May. This pattern could break in either direction, but the likelihood is that it will rise. Each upswing in the stock from its April lows has taken it past highs reached in the previous rally.
Tesla was trading at $317.55 Monday. A breakout above $340 could ignite a measured move toward $440, while aggressive traders might nibble here, being sure to sell if the shares fall below $295.
Alphabet is up 20% over the past three months, but Thursday's 1% gain masked weakness. The market gave the earnings, reported after the close on Wednesday, a lukewarm reaction; the stock closed well below its intraday high.
Alphabet was trading at $193.18 Monday. The stock continues grappling with the $200 level, where a failed bull-flag breakout earlier this year triggered a swift drop to $140. A robust rebound followed, and the stock showed solid relative strength last week, rising 4.4% as the Technology Select Sector SPDR exchange-traded fund gained fractionally.
With momentum rebuilding, a push through $207 would fill a gap that emerged following Alphabet's February earnings report. It would set the stage for a long-term move toward $280 by mid-2026.
Chipotle, once the undisputed heavyweight of fast casual dining, is off to a rough 2025, with a loss of more than 20% this year.
Last week's 13.3% plunge, after the burrito chain reported weak same- store sales, nearly matched the stock's worst day since 2017. The stock was at $45.94 on Monday, leaving it 30% below its 52-week highs. It has far underperformed peers like Shake Shack and Cheesecake Factory, which are down 5% and 6%, respectively, from their annual peaks.
The point to note is that a potential triple bottom is forming near the $45 level, which could be a chance to buy, though a move below $44 would indicate it is time to sell. Look for the stock to close its earnings-related gap near $53 by the end of the third quarter.
Las Vegas Sands, with a strong exposure to Asia via properties in Macao and Singapore, is up 45% in the last three months and now offers a dividend yield of 1.9%. The strength of other casino stocks makes the shares look more appealing; Wynn Resorts is hovering near 52-week highs as well.
The stock just notched its fourth straight positive reaction to earnings following its results on Wednesday. It advanced 4.3%, breaking above a double bottom with handle pivot of $50.77. The shares were at $52.47 Monday.
With LVS breaking out above the round $50 level and riding a bullish double-bottom pattern, traders could look to enter here, especially if the rebound in Chinese stocks holds. A move below $48 would be a signal to sell.
Write to Doug Busch at [email protected]
This content was created by Barron's, which is operated by Dow Jones & Co. Barron's is published independently from Dow Jones Newswires and The Wall Street Journal.
Source:
Dow Jones Newswires