7 Stocks Setting Up for Explosive Summer Gains – Don’t Miss Out!

Stocks

Stock	Price	52 Week Range	Marketcap	EPS	Dividend Yield	Chart (24H)	Sector	Employees	Last Updated
GE Aerospace GE	$181.79		193.89B	6.09	0.79%		Industrials	125,000	2 days ago
Intel Corporation INTC	$18.93		82.55B	4.38	2.24%		Technology	124,100	2 days ago

The Exciting Opportunity

General Electric (GE) is once again the talk of the town, setting up for what could be another exhilarating summer bull run. For the savvy investor, this opportunity is nothing short of electric. As mainstream financial advice keeps pushing the same old narratives, GE is quietly combining stellar fundamentals with technical indicators that scream potential. This alignment suggests that GE could very well be a market leader for the rest of 2013, and that’s exciting news for any investor on the lookout for the next big thing.

Why should you care? Well, who doesn’t want to find an undervalued stock poised for exponential growth? In tapping into this sentiment, we align perfectly with our readers’ desires for high returns and actionable investment opportunities. There’s a reason GE consistently meets or exceeds analysts’ earnings expectations, and it’s not by chance.

Right now, GE’s recent activity signals a promising future. Companies don’t get much larger than General Electric, making any potential upward movement particularly noteworthy. GE has made significant strides to improve its fundamental situation following the shake-up from its financing activities during the financial crisis. For the past year, they’ve been meeting or beating analysts’ earnings expectations, reinforcing the robustness of their recovery.

Editor's Note: Analysis and insight for this article were originally sourced sourced from our friends at InvestorPlace 

General Electric (GE)

GE stands out as a titan in the industrial sector, and its stock conditions are worth examining because of its outsized influence on the market.

• Investment Merits:
  • Fundamentals: GE’s post-crisis recovery is a testament to its effective management and robust business model. Consistently meeting or beating earnings projections over the last year, it has been steadfast in its financial improvement, setting a solid foundation for growth.
  • Technical Analysis: Despite lagging behind the S&P 500 over the past three months, with GE appreciating only 1.8% compared to the S&P 500’s 9.3%, the stock is rebounding from its early May lows. After testing its 200-day moving average post-earnings announcement—an announcement that, despite successes, saw a downward blip—GE is now on the cusp of breaking through the critical $24 resistance level, a move that could ignite a substantial rally.
  • Short Interest: The short interest scenario adds an additional layer of excitement. With over 92 million shares sold short, GE is the third most-shorted company in the S&P 100. This mirrors the conditions preceding the 15% rally in August 2012. A continuation past the $24 mark might trigger a short squeeze, propelling the stock even higher.
  • Dividend: With a dividend yield of 3.2%, GE provides an attractive income stream, making it appealing not just for growth-focused investors but also for those seeking reliable income. This dual benefit adds another layer to GE’s investment allure, positioning it as a comprehensive investment choice.

Analyst Ratings for GE:

Analysts’ Outlook Summary:

The analysts have a consensus view of a Strong Buy for GE, indicating a strong recommendation based on their research. The average price targets range between $184.54 and $188.58, suggesting potential gains of 17.79% to 18.60% from the current price. These analysts’ forecasts are based on various metrics including earnings per share estimates, industry rank, and past performance comparisons.

Sources:

• Zacks – Price Target and Forecast
• MarketWatch – GE Aerospace Analyst Estimates
• TipRanks – GE Aerospace Stock Forecast & Price Target
• Yahoo – GE Aerospace Analyst Ratings, Estimates & Forecasts
• Nasdaq – GE Aerospace Common Stock Analyst Research

Intel Corporation

INTC

$18.93

2%

Intel (INTC): High Short Interest Signaling Big Moves?

Stocks Mentioned in the Article:

• Investment Merits:
  • Fundamentals: Intel continues to be a powerhouse in the tech industry, but the stock is under significant scrutiny due to its high short interest. This could indicate a potential opportunity for a short squeeze, much like GE’s scenario.

Analyst Ratings for INTC:

Summary of Analysts’ Outlook:

Analysts’ consensus ratings for Intel Corporation (INTC) indicate a “Hold” across various sources. The average price targets range from $38.02 to $39.49, with potential gains of up to 17.88%, indicating a generally positive outlook but not enough to justify a “Buy” rating. The number of ratings varies between 30 to 46 analysts contributing to these average price targets.

Sources:

• Zacks – Provides overarching performance indicators and price targets.
• Yahoo Finance – Offers detailed analyst estimates and quarterly earnings forecasts.
• Marketscreener – Summarizes analyst ratings, price targets, and recent performance data.
• TipRanks – Focuses on top analyst ratings and performance insights with specific stock recommendations.
• Nasdaq – Provides a comprehensive summary of analyst research and ratings consensus.

Analysis and Insight

Technical Insights:

When it comes to short-term movements, GE’s recent price action and technical metrics are incredibly telling. Approaching the $24 level place GE at a pivotal juncture, one that could trigger significant gains. This perspective stands in stark contrast to GE’s lag behind the broader market indexes, signaling that it may currently be undervalued.

Less than a month after testing the 200-day moving average, GE is closing in on its March highs and is poised to break through the $24 barrier. This surge is particularly notable given the heightened pessimism towards the stock, suggesting that a bandwagon rally could be on the horizon as bearish investors capitulate to the bullish momentum.

Market Psychology:

Investor sentiment around GE oscillates between pessimism and optimism, heavily influenced by the prevailing short interest. Should GE’s stock break past the critical $24 barrier, this pessimism could swiftly turn into a bullish frenzy, spurred by a short squeeze. This sentiment shift isn’t unprecedented. History provides ample evidence, like the 15% rally driven by short covering in August 2012, to reinforce this bullish thesis.

The high level of short interest signifies a prevalent bearish outlook. However, history, as seen in August 2012, suggests that such conditions are ripe for a substantial rally fueled by short covering. Investors eagerly awaiting a break past $24 could see this as a sign that GE is ready to lead the market higher through the summer, potentially reaching the $27 level or higher.

Income and Growth:

For the income-focused investor, GE’s 3.2% dividend yield is a significant draw. This isn’t just about growth; it’s about stable and recurring income, sweetening the investment pot. GE presents a holistic opportunity, offering both growth potential and a steady income stream—an ideal combination for many investors looking to balance risk with reward.

This is the time for an intelligent investment move, one where GE comes into the spotlight as an industrial giant with both historical steadiness and a promising future. What lies ahead might not just be another bull run but a smart investment choice that balances growth potential with consistent income. Stay tuned, and make sure you don’t miss out on this high-potential opportunity. Happy investing!