Power Trends+: A Quick Quantum Score Speed Round
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One of my favorite things about Power Trends+ is getting to share my love for data by scoring stocks that you request. And it’s even better when those stocks are ones I’m not familiar with.
That happened today as I was doing a speed round of six stocks you wrote in about. I ran them all through my Quantum Score tool, and they were all over the map. But one new-to-me stock showed fantastic promise with a score of 82.8.
That’s impressive, and that’s the magic of the Quantum Score. I can learn about a new company and tell quickly whether it’s worth my time and money or not.
The stocks in this video issue are not currently recommended in my investing services, but that doesn’t stop us from leveraging our Quantum Score to help you in your research.
If you want the power of the Quantum Score in your own hands, check out Quantum Edge Pro. When you join, you’ll gain immediate access to my complete data set, including the Quantum Score, Fundamental Score, and Technical Score, for thousands of stocks.
Stay tuned for more Power Trends+ videos coming your way soon. As always, make sure to send in your tickers or any comments and questions to [email protected].
Transcript
Hey everybody, it’s Jason. Time for Power Trends+.
You write in the stocks, we score them.
Let’s just jump right to it. We got a bunch of great requests, about 70 requests coming in.
I’m only gonna get to 6 today, so let’s just run through them.
We’re gonna try and do quick breakdowns on these stocks. We just do everything by the quantum score.
Let’s just get to it. The very first stock I wanna go over today is Palantir. It’s on the top of everybody’s mind.
This is an enterprise data software platform. It’s a tech company. It’s had a massive rise.
Well, first, let’s get to the quantum score: 87.9. An awesome score, a superior fundamental score of 83.4, slightly overheated technical score of 91.2, and that’s because of this massive jump higher.
Just a massive beat, a massive guidance. The stock has gapped higher. Typically, when you see this, you think, “Oh my God, we have to have a reversion,” and while it’s true, I think we might get a short-term pullback, but it could look something like this—when we had this massive run here in 2020 and we just had a little pullback, you could potentially see the same thing.
This stock has superior sales and earnings growth, 29% to 110% each for one year. Equally impressive 3-year sales and earnings growth. It makes a very nice profit margin, 16%. They’re estimated to grow sales and earnings around 25% for the full year next year. They got tons of free cash flow.
This stock is up a massive 73% in a month. So if you’re looking to buy it, maybe I’d wait for it to pull back, but on paper, this thing looks terrific.
Let’s get next to GoDaddy.
GoDaddy is domain name registration and hosting services. I bought my wife’s record company, Off the Record Soflow.com, on GoDaddy, ported it to Shopify—another great stock. Shameless plug there.
GoDaddy’s got a great quantum score: 74.1, right in the buy zone. The fundamental score I’d like to see a little bit more, and that’s really one pain point which I’ll get to in just a moment. A technical score is 85.3%, very strong.
It’s got OK one-year sales growth, really strong one-year earnings growth: 318%. Three-year sales growth of 9%, three-year earnings growth of 186%. The growth kind of faltered a little bit, but it does have a huge profit margin, 32%, and plenty of free cash flow.
The debt is where it’s bothering this stock. It is heavily, heavily levered, really heavy into debt. And when you take away the cashless debt, it is negative. So on a fundamental basis, I’d like to see a little stronger. I’d like to see fundamental scores of 70 or higher or at least in the 60s. This one doesn’t have it, so it’s a little extended. I’d like to see them turn the corner, but it’s a really strong company.
Next up is ON Semiconductor.
By the way, let’s just take a quick look here at GoDaddy’s chart to give you an idea of what the strength is all about.
Yeah, we’ve seen a really strong run since December, and this thing has been rocketing higher. So, liking GoDaddy overall.
Let’s move on to ON Semiconductor. This thing has a 39.7 quantum score, people—that is not good. Mainly punished for its technical scores: 17.6%.
Looking under the hood, the fundamentals are 70.8. That is interesting to me because sometimes we look for value plays—how I define them, which is a stock that is beaten down significantly but has superior fundamentals.
It just went way up in April through June last year (2023). What’s going on here? Looking at the one-year chart, this thing’s been going sideways/downward of late. The stock’s down 12.8% in a month, 25.4% year to date.
Negative sales and earnings growth for one year, mediocre sales and earnings growth for three years. They make a decent profit margin—I do like that. They’re estimated to grow sales and earnings next year pretty strongly. They have free cash flow, $1.2 billion, less capital expenditures.
The stock on a one-year basis doesn’t look great. On a three-year basis, still in a downward trend. It has great fundamentals, but something is definitely holding back the stock. It’s probably that slowdown of growth that was priced so heavily into shares, and now it’s getting punished for that.
I’m stepping away from a 39.7 quantum score. I would like to see a little bit of a reversal in the technicals showing money stepping in. To get excited about that one, let’s look at Marvell next.
MRVL has a very mediocre score of 56.9. Fundamentals right in the middle, 50. Technical score is 61.8. Let’s dig into it.
Looking at a one-year chart, it’s been a really strong pullback recently. Negative one-year sales growth is 7%, negative one-year earnings growth down almost 500% (464%). That’s huge. Big slowdown in Marvell.
Three-year sales growth of 25%, three-year earnings growth of negative 143%. Honestly, there are better fish in the sea. It’s got a billion dollars of free cash flow, less capital expenditures.
They’re slated to grow their sales and earnings next year significantly, so this could be a turnaround story. But right now, with a mediocre score, I’d like to see those fundamentals kick up significantly, see big money stepping in. For now, I’m gonna pass on Marvell.
Let’s look at Akamai. ACA is the ticker.
This stock has a 62.1 quantum score. Technical score is 67.6, strong. Fundamental score, mediocre: 54.2.
They do cloud computing security content delivery services. The stock’s got decent sales and earnings growth, but it’s low single digits, so it’s not really getting me that excited.
It has a nice profit margin of 14% and decent free cash flow. It’s got a truckload of debt—nearly 100% levered. They’re slated to grow sales and earnings 7.7% and 6.9% for next year. The stock price is just kind of equally hanging in there.
It’s nothing super exciting, but it’s reasonably strong, up 6% year to date. But when you look at the one-year chart, this stock was much higher. So we’re kind of in sideways territory technically and fundamentally. I think there are better fish in the sea, people. I’m gonna leave Akamai alone for right now.
Let’s look finally at a stock called BYRN.
This stock is Byrna Technologies. I hadn’t even really heard about it, but look at this. Someone wrote in about a gem. It’s an industrial defense manufacturing stock.
They develop nonlethal weapons for modern military and specialized law enforcement. Stock’s got an 82.8 quantum score. Strong technical score, 88.2%. Very nice fundamental score, 75.
Strong sales and earnings growth, except on a three-year basis, earnings growth is negative. They do have a nice profit margin of 15%.
Check this out—they’re slated to grow earnings next year by 82% and sales by 21%. If you get any positive surprise on that, this thing’s gonna take off. Doesn’t have a ton of free cash flow, but the price is up significantly year to date, 18.7%.
Looking at a five-year basis, this thing is up an astonishing 1,500%. I mean, wow. Looking at this strong one-year chart, money is leaning into it, and then boom—this thing’s off to the races. Since October 2023, it was a $2 stock, it’s a $34 stock now.
This thing is definitely trending higher, has a great quantum score. It’s definitely worthy of more research on my side.
There you have it. We got six great stocks quickly in and out. Quantum Scores ranging. Please keep writing in—we love it when you do that.
We’ll go over the scores, what’s under the hood really quickly, but if ever there was a method of getting instant analysis on a stock so easily, the quantum score is it.
If you’re interested in how you can score your own stocks with Quantum Edge Pro, we’re gonna provide a link down below. Please check that out.
If you have any more stocks, please write them in, and Luke and I will discuss them next week.
Thanks for being along for the ride with me. Hope you have a great weekend. Enjoy the long weekend.
Talk soon,
Jason Bodner,
Editor, Jason Bodner’s Power Trends