Power Trends+: Ignore the Chaos and Focus on the Data
Watch now…
Chaos seems to be the theme lately. We had DeepSeek despair, and then tariff trauma… and then no tariff relief.
Quite the roller coaster for the market this past week.
It can be incredibly frustrating and difficult trying to keep up with all the emotional swings we’ve been seeing, but there’s one incredibly powerful tool we have to combat these ups and downs.
That tool is data.
My colleague Lucas Downey takes over today’s Power Trends+ to do a deep dive into three stocks you asked about. As always, he’ll use look through all the important data that goes into the Quantum Score. We can count on this data because it doesn’t change with the daily headlines.
One stock covered receives a very surprising thumbs up, while the others’ Quantum Scores fall just short of making the cut.
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 to mute the all the noise and focus on what really matters, 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
People are worrying about DeepSeek, they’re worrying about tariffs. They have their eyes off the ball today, and in our Power Trends+, we’re gonna be going over three stocks you guys wrote in about, doing a deep dive because a couple of these I don’t know, and one of these is going to get an A plus. Let’s go ahead and start us off.
All right, the first stock we’re gonna be talking about is Revolve Group. I gotta be honest, I don’t know this name until about a couple of seconds ago, but they engage in the retail of next-generation fashion for Millennial and Generation Z consumers. So, OK, we’ve got a retailer here that’s focused on the Millennial generation. That’s great. But what’s not great is the Quantum Score of 58.6. That is not anything to get excited about. And whenever we go into the weeds, we’ll try and understand why.
I’ve got the chart pulled up here, a one-year chart, kind of nice, up over 100% over the past year, but let’s see what’s going on with this stock under the hood. Right off the bat, the one-year EPS growth is 23%, and the sales growth is 8%. And if I look at this through my model a couple of years after that, it’s really got strong, steady growth. Current PE is at 43%. Forward is at 38. Add another year, it goes down to 30. So things are trending the right way. Analysts are actually relatively upbeat about this company. They have a buyback as a percentage of market cap of 1.4%. They actually have a lot of cash relative to the total long-term debt.
So here’s the deal. It is not an A+ name, right? Because of the score. However, what I’m telling you is that the fundamental picture is very good. If this stock can break above this 38, 39 range over here, it’s going a lot higher. It does have the seeds of potential greatness, but we need that momentum to validate it. So I’m gonna give it a C+.
And for that, we’re going to get to our next stock.
So #2, this is actually a name that you guys have written in about before, and I was really excited about it, and that is Ticker Powell, POWL. This is an electronic electrical type of name. Hold up, I’m pulling up some numbers here, but right off the bat, we see a much better Quantum Score of 65.5. That is really strong. Look at the fundamentals, 95.9. Let’s go ahead and try to understand why this stock is doing relatively well on a fundamental level.
Wow, EPS is expected to grow in leaps and bounds over the next couple of years. Also, you look at the sales, that’s also starting to pick up as well. Let’s go ahead and check on the chart real quick. Just so you guys have perspective of where we are in the stream of things, it’s up 86% over the past year. It had this really big peak up here in November of 350 bucks. Now it’s down to 235. Guys, I’m seeing potential value here.
Net income margin has been expanding big time. It’s got a PEG ratio of 1.2, which is not bad. 13% cash after long-term debt. Wow, this is going to get a B+ in my book, and the only reason it is not an A is because of the Quantum Score. It’s got everything that we need. I mean, it looks like it’s just gonna need one earnings report to get back above where that momentum is positive again. Yeah, this is a good name. There might be some tariff worries that are in this, but overall, this is a quality name that is on sale.
Let’s get to our next one. This is one that I think surprises a lot of people, and that is Alaska Airlines. OK, Alaska Air Group. Look at the Quantum Score, 79.3%. Rarely are you gonna find a company with that kind of score. That is amazing. In the airline space, you see a lot of like Delta Airlines, American Airlines, they’ve kind of been under pressure recently, but for whatever reason, Alaska continues to do relatively well.
Let’s pull up a chart real quick. See what we’re dealing with. OK, right off the bat, you can tell the Quantum Score is going to really like a non-volatile steady climb type of chart, and you can see since literally August of last year, 32 all the way to 73. Is there more gas in the tank? Is there jet fuel in the tank? And boy, there is.
Last 12-month EPS was $3.08. Next 12 months, it’s 6.09. Another year, 7.87. Another year, it goes to 10.09. Wow, the sales continue to ramp up. Current PE is 21, Forward PE is 11.7%. You go out another year priced on these numbers, it’s a 7.
Now, listen, what are the risks that you have with airliners? Well, it’s a very cyclical business, right? If people don’t want to travel, it’s gonna hurt this type of company. So it’s a very low-margin type business, but I like that it’s Alaska, right? A lot of people want to go to Alaska, a lot of people enjoy trips to Alaska. But everything about this is telling me it’s going higher. Everything that I am looking at is telling me that this is a very high-quality company.
Not only that, one thing I like to do sometimes is go back historically and pull out a longer chart. This company blasted through a multi-year high of 60. It hasn’t looked back. This thing is off to the races, and that is why it is getting one of these amazing scores.
And so that is it for this Power Trends+. Remember, there are a lot of stocks that are winning in this market. There’s a lot of headlines telling you that we’re all in trouble. Quantum Edge Pro is finding amazing companies. Small caps, not on the radar, right? If you are interested in looking for the big winners of 2025, you need to get signed up. Click the link at the bottom of this email or whatever you’re viewing. There’s a lot of upside ahead for stocks. I will talk to you guys next time.
Talk soon,
Jason Bodner,
Editor, Jason Bodner’s Power Trends