One of the best market conditions for active traders is one where price momentum underperforms and then kicks back in with a vengeance, and given what we have experienced since the second quarter started, that could be a scenario we are about to enter. The market has been putting in a grinding, sideways move since March 1st, and may be getting ready for a jump higher, especially if earnings continue to pick up like they did in the first quarter.
We screened the Jefferies top stock calls for this week and found four that fit the bill perfectly as momentum candidates that could be set for a significant move higher. All are rated Buy and are more suited for aggressive growth accounts.
The huge social media leader has consistently posted gigantic numbers and did yet again in the first quarter. Facebook Inc. (NASDAQ: FB) operates as a mobile application and website that enables people to connect, share, discover, and communicate each other on mobile devices and personal computers worldwide.
The company’s solutions also include Instagram, a mobile application that enables people to take photos or videos, customize them with filter effects, and share them with friends and followers in a photo feed or send them directly to friends; Messenger, a messaging application for mobile and web on various platforms and devices, which enable people to reach others instantly, as well as enable businesses to engage with customers; and WhatsApp Messenger, a mobile messaging application.
Top analysts feel that Facebook’s long-term forecasts are more easily attainable, especially as the company continues to grow and employ new platforms for online advertising. The Jefferies team noted this in their report:
The Company reported last week and posted a big revenue and earnings-per-share beat as fears over rising expenses did not materialize. Stock was down small following the print on high expectations and the move to GAAP EPS. Mobile ad revenue grew 57% Year-over-year, ahead of the Street and the company’s average revenue per user in the US/Canada rose 38% year-over-year. Management reiterated 40-50% expense growth guidance and we’re at the low end of that given prior conservatism.
The Jefferies price target for the technology juggernaut is posted at $192, and the Wall Street consensus is set at $162.72. The share closed Friday at $150.24.