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Momentum shares supply buyers the chance to capitalize on robust and continued upward value adjustments. On the similar time, it’s an inherently and undeniably dangerous buying and selling technique. Investing in momentum shares can typically counter the notion that point out there yields higher outcomes on common than timing the market.
However for many who establish the correct shares on the proper time, the rewards far outstrip these extra conservative buyers swear by. Directional actions are sometimes gradual to achieve velocity however tough to cease as soon as it hits, therefore the identify “momentum.” This sort of buying and selling depends extra on technical evaluation than fundamentals, with catalysts usually jump-starting the motion.
Viking Therapeutics (VKTX)
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Viking Therapeutics (NASDAQ:VKTX) is without doubt one of the extra thrilling biopharma shares on the market. The agency is creating novel therapies to deal with endocrine and metabolic problems. It has greater than quintupled in value over the previous 12 months transferring from $3 to greater than $16 at the moment.
One factor to notice about momentum shares is that timing is extremely essential. Catching a momentum inventory initially of its downturn is usually disastrous. I don’t assume that’s the case right here, nevertheless it must be famous that VKTX has gone from $24 to $16 over the previous few weeks.
The rationale I don’t consider Viking Therapeutics goes to go on a chronic promoting spree is that nothing damaging has occurred to the agency. It’s just about the identical firm it was with the identical pipeline of medication persevering with to progress by way of medical trials. That features medication in part 2 medical trials that present nice promise in decreasing liver fats in non-alcohol-induced fatty liver illness and weight reduction medication which are in part 1 trials. As a substitute, VKTX shares probably grew so quickly that I assume merchants are taking income off the desk.
Aehr Take a look at Techniques (AEHR)
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Aehr Take a look at Techniques (NASDAQ:AEHR) is a small semiconductor agency with a booming inventory. It sells check programs for burn-in and testing logic used within the semiconductor trade. Aehr Take a look at Techniques creates parts for failure testing which it then assembles into programs. The agency has put in greater than 2,500 of these programs globally to this point.
Its shares have moved from $18 to above $41 in 2023 and traded under $7 a 12 months in the past. The corporate just lately reported report bookings from EV semiconductors testing. Agency-wide gross sales have been over $17 million and bookings reached $33.3 million. Its complete bookings reached $41 million. Internet gross sales elevated by 40% over the past 9 months as properly.
A part of the explanation Aehr Take a look at Techniques is at the moment doing so properly is that it serves the burgeoning EV sector. Demand for the complicated chips in demand throughout the EV trade has spurred the corporate’s shares increased, making buyers some huge cash in the course of the course of.
Apple (AAPL)
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Apple (NASDAQ:AAPL) is transferring increased nonetheless as a wide range of components propel the inventory above a $3 trillion valuation.
The iPhone is a product that merely has no equal. It’s the lifeblood of Apple in its present kind and accounted for $205.5 billion of the corporate’s $394 billion in 2022 revenues. Apple has seen iPhone gross sales start to gradual and expects a slight contraction in top-line outcomes this 12 months.
Nonetheless, that hasn’t resulted in bearishness. The corporate has tapped into the market in India which affords nice potential. Additional, its VR/AR headset with a price ticket of $3,499.00 guarantees to be an fascinating cash maker as its first new product in a decade.
It’s considerably ironic that Apple has such robust momentum given the corporate posted back-to-back quarters of falling income. That’s a testomony to how a lot buyers consider within the firm because it expands into rising markets with the iPhone. All the corporate will want is a little bit of optimistic info in any of these areas and it will probably transfer increased nonetheless.
On the date of publication, Alex Sirois didn’t have (both instantly or not directly) any positions within the securities talked about on this article. The opinions expressed on this article are these of the author, topic to the InvestorPlace.com Publishing Pointers.
