Hey,
Charles here.
Andrew's back with a fresh One to Love, One to Hate from the Ceres Scanner (his AI momentum tool that identifies stocks setting up for big moves in either direction).
One streaming giant that dodged a bullet and one former safe haven that keeps sliding.
Let's get into it.
They lost but they won
I've followed this stock for a while, mostly alongside Paramount Skydance (PSKY) and Warner Bros. Discovery (WBD). The name is Netflix (NFLX), and the market hasn't loved it since it walked away from the WBD deal.
I've written before that no company has gone on to make new highs after acquiring WBD, and that goes back 30 years. NFLX won by losing.
NFLX itself got sold off because everyone thinks movies will get made with AI. I don't think that happens. If Hollywood wants people to see their movies, they have to make good ones.
NFLX has found a niche that keeps growing, and I don't see that stopping.
1 YEAR NFLX
The Iran conflict has kept buyers away, but at some point, scooping up shares at a discount becomes the right move. I expect NFLX to jump back over $100 once the conflict reaches a resolution.
What was once a safe haven
Stocks close to a 52-week low (the lowest price in the past year) generally make a 52-week low. Waste Connections (WCN) is no exception.
Right now, any company with exposure to oil-price swings will feel the squeeze. WCN was a $200 stock earlier this year and has slid into the $160s.
The earnings have disappointed, to put it mildly, and WCN has been on a long slide all year. The current environment will not help.
A stock like this that flew on a high multiple (investors paid a premium for steady growth) slowly gets taken to the woodshed. The mid-February earnings report was weak enough that I expect the downtrend to continue. I expect a new 52-week low soon.
To Your Trading Success,
AG
A streaming juggernaut and a waste management stock heading in opposite directions. Andrew's likely buying calls on one and watching for another 52-week low on the other.
Two different setups, both built from the same Fingerprint Scanner momentum data.
The real question: what will the team pick on Monday?
Join the Ticker Highlight Show Premium before Monday at 10:30 AM ET to find out.
See you there,
Charles Delvalle
Managing Editor, Option Pit