🤖📈 Top Trade Ideas for July 21

Hershey is facing strong competition from MrBeast's chocolate brand, Feastables. Feastables gained popularity through a YouTube video where customers had the chance to win a "golden ticket" to compete for a chocolate factory. MrBeast's YouTube videos consistently earn over 100 million views, particularly among the 10 to 18-year-old demographic. By the end of 2022, Feastables was stocked in every Walmart and selling a couple hundred thousand bars a week. MrBeast aims for rapid growth, planning to have Feastables in 40,000 to 50,000 locations by the end of next year. Feastables has a strong fan base, as shown by high engagement on social media, including a tweet from MrBeast that received over 144,000 likes and 44 million views. Many followers shared pictures of organized Feastables displays next to Hershey's bars, highlighting the brand's popularity. In comparison, Hershey's social media presence and engagement are significantly lower than Feastables.

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The author has a buy rating on Treace Medical Concepts, Inc. (TMCI) and believes there have been significant changes in its fundamentals, investor sentiment, and valuations. TMCI's major growth lever is its Lapiplasty procedure for bunions, which the author sees as a lucrative market opportunity. TMCI has penetrated a small portion of the addressable market, indicating growth potential. Management has revised revenue guidance upwards, and Q1 sales were strong. The author sees positive sentiment and increasing analyst projections as bullish indicators. However, there are risks such as failure to penetrate the market further and competition. The author believes TMCI is undervalued and has a price target of $31/share, representing a potential upside of 31%. Overall, the author reiterates a buy recommendation for TMCI.

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Zscaler is a cloud-based provider of Enterprise and Network Security that excels in both security and network transformation. It has a strong advantage in cloud security and is well-positioned to play a critical role in connecting users to applications in the cloud environment. Zscaler's exposure to large enterprises and government customers has driven better-than-expected growth. Its new products and pivot to workload security have improved its positioning against other security providers. Zscaler's leadership position in the Gartner Magic Quadrant for security service edge is a testament to its strong position. Workload migration to the cloud will be a growth driver for Zscaler, and it is seeking to expand its total addressable market. While data-center investments may limit gross margin improvement in the near term, multicloud support could help its positioning. The author has a strong conviction in Zscaler's strategic positioning and growth potential, expecting the valuation gap to close as the company continues to post strong results. The author recommends buying the stock with an end-of-year price target of $194.

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