Hey Rippers fam! As mentioned in our last post, we’re moving Friday Rippers to Sunday to help y’all get in front of opportunities for the week ahead and stocks to keep an eye on 👀
So whether you read this Sunday night or Monday morning, we hope our list helps you get in front of trades and moves before they happen. So, let’s dive in ⬇️
💰 This week starts earnings season! Investors sold stocks in a pivotal risk off before Q2 only to be taken aback when over 4 out of 5 S&P companies reported positive “surprises.” The above-average results came even as EPS declined more than 30%. In short: investors got worried, sold stock and then got burned. It’s unlikely they will make the same mistake twice. Up first for earnings are a number of big banks, including $JPM , $GS and $WFC.
✈️ After insisting there wouldn’t be any new stimulus until after the election, President Trump reversed course late last week. The indications of this change will have real ramifications for millions of Americans — and a few airlines. A considerable portion of the forthcoming new stimulus bill includes continued aid for the airline industry, which has been greatly harmed by the pandemic. Airlines like $DAL have been battered by COVID; however, others like $LUV are financially situated to deal with the pandemic as the stimulus talks continue. Some airlines like $AAL are financially squeezed and extremely reliant on a meaningful stimulus bill in order to survive. For that reason, we recommend keeping your eye on these companies and the airline industry at large. The $JETS ETF offers exposure to the biggest U.S. airlines and air transport companies.
🌱 On Friday we talked about SPACs, and there were a lot of them. However, one particular SPAC really caught our attention. $NOVS is taking the Appalachian AgTech startup AppHarvest to public markets. AppHarvest builds giant greenhouses to grow staple crops, a large number of which are imported from Mexico. AppHarvest hopes to disrupt the crop import market. In the years ahead, it’s very possible that $NOVS might be a mainstream player and expose investors to the future of agriculture.
That wraps our Sunday list! We’re sending our best regards for the week ahead and hope you get off to a good start in your portfolio. Be well and see you Monday afternoon 🔥