Video summary
The video opens by highlighting a significant week for the stock market, characterized by three out of four major U.S. indices hitting all-time highs and the S&P 500 breaking out to fresh records. While economic events like the Fed minutes are noted as minor distractions, the primary focus is on the upcoming earnings season, which promises substantial volatility and opportunity. The speaker sets a bullish tone for the market heading into the week, noting that despite some uncertainty in oil prices, the overall sentiment remains strong with major financial institutions raising their price targets. This favorable environment creates a backdrop where specific retail and industrial stocks are poised to make significant moves based on their upcoming earnings reports.
The first stock analyzed is Klarna, a payment company that has struggled since its IPO but appears to be recovering from a low point around $12 per share. The chart analysis reveals an ascending triangle pattern on the four-hour timeframe, suggesting a potential breakout and a "pop" in price following earnings on Tuesday morning. Although analysts project a slight loss per share, the speaker believes the technical setup is favorable for a surge if results are positive, with a target range of $25 to $28. The second stock discussed is Walmart, which has been underperforming as capital rotated away from defensive names back into technology and AI sectors. However, Walmart is showing signs of stabilization by reclaiming key moving averages like the 50-day and 180-day SMAs, forming a golden cross that could signal a return to its previous trading range between $120 and $135 if it can break through current resistance levels.
The analysis continues with Target, which has recovered significantly from its lows but is now facing major resistance around the $160 to $180 mark after a strong year. The speaker expresses caution regarding Target's current valuation, preferring to see a pullback before entering a position, though acknowledges the company's resilience in digging out of a four-year hole. Next is Lowe's, which has consolidated near support levels after a sharp decline, with historical patterns from previous summers suggesting a potential rebound toward the mid-to-high $200s if earnings confirm a bottom. Finally, Deere & Company is examined as a stock that has peaked and entered a consolidation phase; the speaker watches for strong guidance to trigger a move back toward its February highs near $675, noting an ascending triangle pattern that could support further gains if the company performs well on revenue growth.
In conclusion, the video emphasizes patience and confirmation before making trades, particularly with earnings-heavy names like Klarna, Target, Lowe's, and Deere & Company. The speaker sets specific price alerts for each stock to catch breakouts or confirmations of support levels, advising viewers to wait for strong guidance and revenue beats rather than reacting immediately to estimates. While acknowledging that some stocks may be overbought or beaten down, the overarching theme is that these companies are due for a recovery rally as capital flows shift back into them. The video ends with a reminder to utilize specific trading platforms for better analysis tools and to stay tuned for further updates on these key market movers throughout the week.
Read the full video transcript
So, earning season's not done yet, guys.
We have five stocks to break down today,
which we're going to dive deeper into
the earnings estimates, revenue, the
charts, what I'm looking at do, the
whole nine yards, guys. So, let's dive
into it. Hit the like button. Make sure
to subscribe. Join my Patreon if you
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And now, cheers, guys. Take a sip of
your coffee. Happy Sunday. Hope you guys
had a great weekend and you're ready for
this upcoming week. Cheers. Let's dive
into it. So, at this point, you guys
know the market's been doing well, the
S&P, the Dow, the Nasdaq, the Russell.
Three out of the four major indices here
in the United States have just hit
all-time highs, and the Qs are well on
their way as they're clearly breaking
out of this channel. We have spy already
breaking out. It's been breaking out to
fresh all-time highs. We're hearing
8,000 plus points from JP Morgan. A lot
of these big guys, big boys are upping
their price targets, right? The market
is on fire heading into this week. The
VIX is low. Oil's kind of all over the
place, but it has come down from where
it was a couple months ago. So, the
market looks pretty good right now. And
again, three out of the major indices
here in the US are hitting all-time
highs. What more could you ask for,
right, guys? So, I want to go over not
too much about the markets today. Uh
well, we do have the Fed minutes on
Wednesday. We're not going to talk too
much about that either. Um so, when it
comes to the economic events, not much
going on other than the Fed minutes on
Wednesday. Uh so, we're not going to go
too deep into that, the economy, you
know, the indices. Uh but, it is a big
week earnings-wise, and that's what
we're going to focus on in this video.
So, we might as well dive right into it.
Stock number one I'm watching, company
number one, is Klarna. Do you guys know
Klarna? Have you ever used Klarna? I
hope not. Um but but a lot of people use
Klarna. Um and this stock, look, it's
been all over the place, man. The stock
hit $57, I think, when it peaked after
IPO. Uh when did this company IPO? I
think back in the end of 2025, and it's
been downhill since. This is why I don't
mess with IPOs, guys, uh for a while, at
least 6 to 12 months after they go
public, but that's a whole 'nother topic
for another video, guys. And we can see
Klarna slowly been crawling itself out
of the hole. Uh we hit $12 a share back
in the middle of what? April, early
April, end of March. We hit about $12,
and now we're pushing 20 bucks. We are
crawling ourselves out of this hole.
We're making higher highs, higher lows,
the whole nine yards. And we're actually
noticing, at this point in time, an
ascending triangle on the 4-hour time
frame. Do you guys see that? We're
actually setting up pretty nicely for
earnings on uh the 18th, which is on
Tuesday in the morning. We're setting up
for a breakout. And honestly, with how
beaten down Klarna is, chart-wise here,
I think it could be setting up for a pop
after earnings. Um and look, where where
could we go? Where could we fill the
gap? Up to maybe 25 to 28 a share, maybe
even higher in due time. Uh but clearly,
$28 a share was support all throughout
November of last year,
up until pretty much the end of January.
So, that's a big support from the end of
last year, early this year. We then
obviously got down to $12, like I said,
and now we're crawling ourselves out.
And if this thing takes out, I would say
22 bucks, which is where I'm going to
put my alert and now we're at 20 bucks
and $0.75 as of Friday's close. If we're
able to break $22 a share, this has a
wide open gap here. Not saying it's
going to fill it right after earnings.
It might tank after earnings. Who knows,
guys?
Uh but it does look pretty favorable
here,
um you know, for a for a pop. The charts
look favorable for a pop, especially on
good earnings. Um so I like it. I like
the setup. My alert's at $22 a share.
Again, earnings are on Tuesday in the
morning. And right now, analysts on
average are projecting earnings per
share of a loss of $0.06. Uh so they're
going to lose $0.06 a share on revenue
of just under a billion dollars, um $996
million
of revenue. And last time they reported
earnings, guys, the stock did pop, but
the time before that, it tanked. So we
can't look at previous earnings and kind
of have a gauge on what's going to
happen this this go around, right? I
mean, this company, this stock has been
all over the place since the IPO. So we
kind of have to be patient with this
one. And I'm going to wait till earnings
come out. And if they if they do well,
again, $22 bucks breaks, we got that
confirmation,
this could end up being a nice play
um towards the mid-20s again, maybe
high-20s. We'll see. What do you guys
think? And number two here, stock number
two is Walmart, ticker WMT. We're
getting a lot of these big retailers
this week, Walmart, um Target, you know,
a couple other companies, Home Depot,
Lowe's, all those are this week. Um at
this point, Walmart has been down for
months. Do you guys remember earlier
this year when Walmart was going nuts? A
lot of these more defensive stocks were
going nuts as um a lot of money was
coming out of AI, a lot of money was
coming out of tech, you know, people
were panicking earlier in the year, and
stocks like stocks like Walmart, a lot
of these more defensive names did pretty
well. And it's been downhill since
since a lot of money has come back into
tech, back into AI stocks, into the
hyperscalers ever since the end of May,
it's been downhill for Walmart as we've
seen this rotation over the last couple
of months, which I'm not surprised. Was
I not saying this back in March, April,
May? I was saying, "Guys, Walmart is
overvalued. It's overvalued. It's
overbought. Don't fall for it." And it's
it's it's down 20 bucks a share from
that point. And it got down even more,
almost 30 bucks a share when it got down
to 108. But now it's starting to find
its footing. It's starting to rebound.
We're not quite yet fully breaking out
yet, but we're noticing Walmart is
starting to take out these moving
averages. We're starting to push over uh
you know, the the 50 and the 180-SMA. We
have a golden cross. So, I think
Walmart, guys, we're about to reenter
this range. I think it could be a runner
on good earnings. Obviously, it's not
going to run like a tech, like an AI
stock. Nobody's expecting that, but I am
looking to see over time if it's able,
first of all, to get back through 118 to
120. That's the big resistance right
now. And if it's able to do that, this
could over time fill the gap back to
130, 135. Maybe it starts to break out
of 135 in due time. Eventually, it will.
I mean, Walmart's a blue-chip stock,
blue-chip company. They're going to do
well over time.
It just got a bit ahead of itself. It
got a bit overvalued. It got a bit
too hot. Everybody was freaking out
about AI and tech. Now we're seeing
money clearly has come back into there
um, into AI and tech, and it's come from
stocks like Walmart, stocks like
Proctor, Pepsi, Coca-Cola,
um, at least it did a couple months ago,
right? So, I think, overall, guys,
Walmart is a must-watch stock this week,
must-watch stock. Um, I think the
breakout spot is 120, so I'm going to
set my alert at $120 per share. Mark is
at or above. Um, earnings per share is
projected on average at $0.75 versus
$0.68 from last year on revenue of
$186.89
billion
versus $175.75
billion from last year. That would be up
6.3%
year-on-year. Not bad, guys, not bad.
And again, my alert is set at 120 bucks
a share. I'm watching it very closely
this week, guys, and you should as well.
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talk about stock number three, which is
Target, ticker TGT. And you guys know
Target has been going insane this year,
but it was it was squashed over the last
couple of years. So yeah, it's it's
doing well this year, but we hit 270
back in 2021 and we got all the way down
to $86 by the end of 2025. So yeah, it's
crushing it this year, but it's still
down massively, you know what I mean?
And on the one-year chart, guys, we're
looking phenomenal, but on the
three-year, we're now approaching a
major level of resistance, a sell zone
in my opinion, which it might not be a
sell zone if earnings are strong enough
to push us through. Uh, but that's what
we're dealing with. That's what we're
waiting for on Target here. My alert's
at 160 and for good reason. We're
approaching that and that's been
resistance for a couple years, 160 to
180. Sure, I mean, it could fill the gap
to 180 after earnings, but that's a big
level of resistance as well. So Target
needs to break 160 and through 180 for
this to really for this to really be
uptrending again long-term. And who
knows, maybe it's coming with earnings
on um Wednesday, I believe, guys. Yeah,
they're Wednesday in the morning.
Analysts have Target doing on average
earnings per share of $2.33
versus $2.05
from last year on revenue of $26.13
billion versus $25.21 billion from last
year. That would be up around 3 and 1/2,
3.6%
year over year. And guys, Target is
priced to perfection heading into
earnings. So are those numbers going to
be good enough to keep the stock afloat?
That's the million-dollar question, and
personally, I'd much rather see a
pullback like we've seen time and time
again over the last couple of months.
I'd much rather see a pullback on this
name before getting in. I think it's
just too overbought, too frothy into
earnings, but kudos to Target. They've
been doing well
digging themselves out of the hole from
2021, uh which lasted 4 years. Let's see
if that continues here on TGT. Now,
number four is Lowe's. Uh we have Lowe's
coming up, I believe, on Thursday or
Wednesday. Yeah, they're Wednesday in
the morning, and Lowe's has not been
doing well. Lowe's is down from 293 all
the way to 218. It actually got down to
199 at the low. Uh we were down 31% at
one point. Now, we're starting to put in
a bottom. We're starting to consolidate.
Potentially, it's a bottom. Who knows?
Maybe it goes lower, but we're seeing
support exactly where we want to see it.
If you guys look here on the 3-year
chart on Lowe's, this spot right here,
210, 215, not only is holding now, but
it held back in
2025, back in 2024 in the summer.
Literally, this stock has done the same
thing the last 2 years almost
identically, guys. Literally, last June,
July, August, we consolidated in the 215
range, and we ripped after earnings up
to about 275. Then we got a drawdown,
ripped again to 295. That was last year
summer. Now, 2 years 2 years ago in the
summer, Lowe's was at 215 in June 2024,
July 2024, and it went all the way to
280 by December. It actually hit 280 by
October. So, if history repeats itself
on Lowe's here, guys,
this thing is due This thing is due for
a very strong rebound to the mid-high
200s if history repeats itself, which
last two summers again after earnings,
we've seen this kind of recovery rally.
Um so I'm actually I'm not in Lowe's and
for that matter I'm not in any of these
stocks that we're talking about today,
but I'm so close to adding some Lowe's.
Especially look, I'm waiting for the
confirmation. I'm waiting for earnings.
Especially if they crush earnings and
guidance and the stock starts to get
some love past 225 230, I'm going to get
in. I'm going to get in. I think Lowe's
is too beaten up. I think Home Depot is
too beaten up and I think these are due
uh for runs. Especially Lowe's man, this
thing is very beaten up and analysts
have them doing EPS of $4.23
versus $4.33 from last year. So EPS will
be down year-over-year, but revenue
26.12 billion is the estimate versus 10
or excuse me, 23.96
billion from last year. That would be up
9% year-on-year. Not bad, not bad, but
we got to wait for the confirmation and
I think it's coming. I'm going to set my
alert at 225. Mark is at or above and
let's do one more here guys. By the way
guys, hit the like button. Make sure to
subscribe. Hit that follow button if
you're finding value in this video.
Deere & Company, ticker DE. This is one
that I'm watching as well. They're on
the 20th. So what what day is that?
Thursday in the morning. Yeah, Thursday
morning. We're getting Deere & Company
and this stock for the most part has
been flat for a lot of this year. A lot
of the gains came in the first month of
the year. I mean a lot. All the gains
pretty much. This stock went from 500 to
675 in a month and now it's at 608. It's
been flat for the rest of the year. Um
you You it's almost September now guys.
This stock peaked for now in the middle
of February, right? 6 months ago we uh
we hit that high. Um it's kind of
consolidating, finding its footing here
on the 4-hour chart, which honestly
might be good for another leg up here or
at least for another move back to 670
675. That is where this could go in due
time,
uh you know, with everything going on
with the AI trade. We're seeing a lot of
these stocks um do well because of the
the AI trade, the building of all this
infrastructure. John Deere has their
part in that, obviously. Um and look, if
they if they show us good guidance, this
stock, if it takes out 630 635, that
could be the trigger. This might fill
the gap again to 675. Maybe it goes even
higher. I mean, we do kind of have an
ascending triangle here on DE. So, watch
it, guys. Watch it. EPS is estimated at
$4.70
versus $4.75 from last year on revenue
of $10.73 billion
versus $10.36 billion. So, that's going
to be up around 3 and 1/2 4% from last
year. Not not great, not phenomenal, uh
but not bad for a company like DE. Um I
think I don't know if all that's priced
in. I think it might not be, especially
if guidance comes in strong. This could
have some more juice in it. So, keep
your eyes on DE, on Lowe's, on Target,
on Walmart, on Clorox, and Home Depot,
even though we didn't mention them in
this video. We covered them in the last
video. Make sure you guys go watch the
video from yesterday. Um yeah, Home
Depot's a big company for this week as
well. So, what do you guys think? Let me
know in the comments. Hit the like
button. Make sure to subscribe. Join my
Patreon for my portfolio updates and
private Discord. And guys, don't forget
to get your free stocks from Moomoo.
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cheers. Have a great rest of your
weekend.