🤖📈 Top Trade Ideas for July 21

Including problems at Hershey, an analyst raises Tesla's price target, and more...

Author

Connor Van Ooyen
July 21, 2023

👋 Hello!

Welcome to the 911 new Yellowbrick Road readers who joined since the last issue.

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Our AI read and summarized 177 articles today from all over the internet to find the best trade ideas to help you make more money in the stock market.

What you’ll find in this email:

  • 🍫 Problems at Hershey

  • 📞 [Premium] Analyst raises $TSLA’s price target

  • 🤖📈🚗📱 Much more…

*If you missed yesterday’s email, you can read it here

💰 Today’s Featured Trade Ideas

The three best trade ideas our AI tool found today. Make sure to vote on your favorite!

🥇 Problems at Hershey (HSY) (link)

Ticker: $HSY | Current Price: $246 | Price Target: N/A

🍫 Food and Beverage | 🛍️ Retail | 📉 Short Idea

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.

Click here to read the full article

🥈 Treace Medical: New Surgeons, Higher ASPs, And More Lapiplasties: A Positive Trend (link)

Ticker: $TMCI | Current Price: $23.77 | Price Target: $31 (+30%)

🏥 Medical Devices | ⬆️ Growth | 📈 Long Idea

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.

Click here to read the full article

🥉 Zscaler: Positioned For Success In The Evolving Cloud Security Market (link)

Ticker: $ZS | Current Price: $147.23 | Price Target: $194 (+32%)

🔒 Security | ☁️ Cloud | 📈 Long Idea

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.

Click here to read the full article

Which of the featured trades was the most compelling to you?

Login or Subscribe to participate in polls.

Yesterday’s Poll Results (link):

🟩🟩🟩⬜️⬜️ British American Tobacco ($BTI) [40%]

🟩🟩🟩⬜️⬜️ Bank of America ($BAC) [37%]

🟥⬜️⬜️⬜️⬜️ Encore Wire ($WIRE) [13%]

Your Thoughts:

  • 🚬 pau*** & den*** ($BTI): Europe still smokes a lot, P/E is very low, the dividend yield is high and covered by cash flow and earnings, plus no withholding tax on U.K.-based companies.

  • 🏦 ej*** & may*** ($BAC): Banking stocks have been undervalued since the Silicon Valley Bank fiasco.

💰📈 Winning Trade from a Previous Email

Carvana: 2023 Barbarians At The Gate (link)

Ticker: $CVNA

Date Published: 2023-05-02

Return: +537% ($7.22 → $46)

🤔 Stock Market Quiz

What soft drink company was originally an "intentional headache remedy" and is now one of the largest companies by market cap?

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Yesterday’s Question (link): Before becoming one of the richest people in the world, this entrepreneur sold a web software company named Zip2 to Compaq. Who is he?

Answer: Elon Musk. Turns out a lot of readers know Elon’s history pretty well because most of you got this correct.

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Bull v Bear (link): This 3x-per-week email analyzes a new stock and presents the bearish and bullish cases for that stock.

📈 Premium Trade Ideas

These premium trade ideas include trade ideas from research reports, analyst upgrades, and hedge fund investor letters.

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