We have a few ideas on our list for potential swing trades - 3- 6months and one that's much longer term.
Huntington Ingalls is a contractor for building navy ships. We believe they will be a beneficiary of continued defense spending. There was a slowdown because of the pandemic and supply chain issues. But, the company has a backlog and delivery is now of priority, with increases in orders for expanding manned and unmanned fleet. The company also projects margin expansion over the next year.
The chart below is on a weekly. I'd be looking for price to push past 239 to buy. If that happens, I'd take some profit at 255. Trailing stop loss with first stop at 220.
For TJX we think this recent pullback is an opportunity to buy. The recent Black Friday numbers should tell us that people are still looking for a bargain. Shares fell after earnings guidance came in lighter for the holiday season. But, the company's results were great and they are focused on improving top line growth through volumes, and margin improvement through inventory management.
We're in a bit of a decision zone here when price has often tested this level. I'd like to see price get above 90 to buy. I think we could see continuation from there, as the macro moves in their favor.
Top Build Is a supplier of insulation and buildings materials. Single family starts have slowed down because of high mortgage rates. But Top Build has managed to improve margins and grow revenue on a solid backlog of multi-family and commercial projects that will take them into 2024. Single-family projects to pick up by mid next year as rates start to moderate towards the end of 2024.
The company has already run up quite a bit post earnings. But, I think there is room to the upside if it can push past 300, it could take out it's previous highs at 307 and continue on from there.
Ensign Group is a long-term care and nursing facility provider. This is a defensive healthcare name, that's growing steadily. As with other providers, the company was hit with a lack of nursing staff during the pandemic and occupancy rates had to be reduced. Recent earnings show occupancy rates are picking up and staffing shortages have been largely resolved, although working hours have been cut down.
This would be a much longer play (say 1 to 3 years) as it's a slow growth company and a slow moving stock. Here's a weekly chart of the company... it's one that just keeps going. I'd buy on pullbacks, adding as we go along.