After the wildest 11 months in the equity markets in years, we are finally in the stretch run toward 2021. We could see some added volatility, and the weight of a pricey and overbought stock market finally may apply some serious pressure. While stocks are still the best investment idea long term, given the historically continued low interest rates, caution is definitely needed now.
One solid way to increase the chances for investment success with stocks is to combine solid fundamental research with outstanding technical patterns. While not offering guaranteed success, it certainly improves the chances for individual growth stock investors.
In a new research report, the BofA technical team focuses on eight companies that have very attractive stock chart patterns. We screened the stocks looking for those that are also Buy rated, are well known and liquid and offer solid upside. We found four that should whet the appetite of any growth stock investor. It is important to remember, however, that no single analyst report should be used as a sole basis for any buying or selling decision.
This stock could very well continue to benefit from the increase in information technology and 5G spending. Analog Devices Inc. (NASDAQ: ADI) is a leader in the design, manufacture and marketing of analog, mixed-signal and digital signal-processing integrated circuits for use in industrial, automotive, consumer and communication markets worldwide.
The company offers signal-processing products that convert, condition and process real-world phenomena, such as temperature, pressure, sound, light, speed and motion, into electrical signals.
Analog Devices has among the best end-market exposure, with high communications and aerospace/defense market exposure, in addition to offering investors a powerful 5G content growth story. Plus, acquisitions over the past few years like Linear Technology and Hittite Microwave should provide revenue and additional cost synergies that are still coming.
The technical analysts noted this when reviewing the chart:
The stock has broken out from a July 2019 to November 2020 bullish head and shoulders pattern. This breakout remains firmly in place provided that support at 131.50 (higher low) down to 127-124 (breakout point) contains any interim dips. The bullish head and shoulders pattern favors further upside to 158 (measured move) and 175 (pattern count). ADI has the potential to reassert leadership within a longer-term bullish trend relative to the S&P 500.
Analog Devices stock investors receive a 1.77% dividend. The BofA Securities price target for the shares is $160, and the Wall Street consensus target is $153.69. The shares closed Thursday’s trading at $139.75 apiece.
Las Vegas Sands
With casinos starting to open back up, this is a great long-term play for growth investors. Las Vegas Sands Corp. (NYSE: LVS) develops, owns and operates integrated resorts in Asia and the United States.
The company owns and operates the Venetian Macao Resort Hotel, the Sands Cotai Central, the Parisian Macao, the Plaza Macao and Four Seasons Hotel Macao, Cotai Strip, and the Sands Macao in Macao, the People’s Republic of China, as well as Marina Bay Sands in Singapore.
It also owns and operates the Venetian Resort Hotel Casino on the Las Vegas Strip and the Sands Expo and Convention Center in Las Vegas. Its integrated resorts feature accommodations, gaming, entertainment and retail malls, convention and exhibition facilities, celebrity chef restaurants and other amenities.
The company has eliminated its dividend and said that it has ended its plans to open an integrated resort casino in Japan. The technical team loves the setup and said this:
The 2020 base or bottom pattern breakout suggests further upside to 63.44-65.56 (late February downside gap) and into the low to mid 70s with the late January downside gap at 71.34- 73.51. The bull flag pattern counts to 74 and the 2020 bottom projects to 76.
BofA Securities has a $61 price target, while the posted consensus target is $58.94. Las Vegas Sands stock was last seen trading at $58.66 a share.
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