Popular US stocks traded on POEMS in February 2022 March 10, 2022
Here are some of the most popular US stocks – not in any order of ranking – traded by POEMS customers in February.
News headlines in February at a glance
- Russia invades Ukraine leading to a market selloff
- Gold reaches 15-month high
- 5.7% annualised GDP growth is the fastest since 1984
The three US major indices – Dow Jones, S&P 500 and Nasdaq Composite – dropped and fell into correction territory.
| NASDAQ | DOW JONES | S&P 500 | |
| Month Open | 14,277.43 | 35,151.47 | 4519.57 | Month Close | 13,751.40 | 33,892.61 | 4,373.95 | Monthly return | -3.68% | -3.58% | -3.22% |
Events in February were overshadowed by the conflict between Russia and Ukraine. After months of tension between the two countries, Russia’s President Vladimir Putin ordered the invasion of Ukraine on 23 February 20221. There was a market-wide selloff on the day of the invasion, with technology stocks leading the selloff2. Gold, considered a safe haven reached a 15-month high due to the conflict3. There will be more updates on our POEMS app.
The fourth quarter GDP of the United States increased at a 7% annualized rate, taking the annualised GDP growth rate to 5.7%4. The 5.7% growth rate is the fastest since 1984 and was mainly due to inventory rebuilding to minimise the supply chain impact. In January, retail sales surged while in February, business activity rebounded5. Increase in spending creates an upside risk for the first quarter’s GDP growth.
Amazon Inc (NASDAQ:AMZN)
AMZN opened February at US$3,000 and gain 2.8%% to close at US$3,071.26 despite poor guidance. AMZN guided first quarter revenue of between US$112 billion and US$117 billion, below the average estimate of US$120 billion. However, AMZN’s reported earnings per share (EPS) of US$5.80 beat estimates of US$3.57, while revenue was reported at US$137.4 billion, slightly missing estimates of US$137.6. AMZN also reported their Amazon Web Service (AWS) revenue climbed almost 40% to US$17.78 billion, beating estimates of US$17.37. AMZN was able to give investors’ confidence that growth will recover, which could be the reason for AMZN’s gains this month.6
Based on Phillip Securities Research (PSR), AMZN is a BUY with a target price of US$ 4079.
Technical Analysis: Neutral
Immediate Support: 2984.76
Immediate Resistance: 3195.94
Range-bound
CVS Health Corporation (NYSE:CVS)
CVS’s earnings beat estimates for the 2021 fourth quarter7. CVS opened this month at US$106.27 and dropped 2.5% to close at US$103.65. EPS of US$1.98 and revenue of US$76.60 billion both beat estimates of US$1.93 and US$75.67 billion respectively. This pandemic helped CVS’s retail and pharmacy businesses, especially during the holiday season when booster shots and test kits were more sought after. The management team is venturing into other areas of healthcare and leveraging on its scale to reduce costs and provide better outcomes.
Technical Analysis: Neutral
Immediate Support: 104.21
Immediate Resistance: 106.19
Range-bound
Walt Disney Company (NYSE: DIS)
DIS opened February at US$143.02 and gained 10.1% to close at US$157.50. The reported earnings per share (EPS) of US$1.06 and revenue of US$21.83 billion beat estimates of US$0.63 and US$20.91 billion respectively. Disney+ subscriptions of 129.8 million also beat estimates of 125.75 million. DIS expects significant progress by fiscal 2023, and reiterated guidance for Disney+ subscribers of 230 million to 260 million by 2024.8
Technical Analysis: Neutral
Immediate Support: 145.07
Immediate Resistance: 160.21
Range-bound
Roblox Corporation (NYSE:RBLX)
RBLX missed earnings for the fourth quarter of 20219. RBLX loss per share for the quarter was US$0.25 which is around 92% worse than the expected loss per share of -US$ 0.13. Revenue of US$770 million too was worse than the expected revenue of US$772 million. However, their daily active users of 49.5 million is up 33% year-on-year. RBLX started February at US$66.31 and closed 22.2% lower at US$51.57.
Technical Analysis: Bearish
Immediate Support: 42
Immediate Resistance: 50.52
Bearish momentum unless price can hold above 50.5 for more potential upside
Qualcomm Incorporated (NASDAQ: QCOM)
QCOM delivered earnings results that beat estimates this quarter. QCOM earnings per share (EPS) was reported at US$3.23 against the estimate of US$3.01. Reported revenue was higher than the estimate of US$10.7 billion against the expected US$10.42 billion. QCOM expects between $10.2 billion and $11 billion in sales in the upcoming quarter, ahead of analyst estimates of $9.6 billion10. QCOM started February at US$176.44 and closed at US$171.99 which is 2.5% lower.
Technical Analysis: Neutral
Immediate Support: 161.41
Immediate Resistance: 173.18
Range-bound
Meta Platforms Inc (NASDAQ:FB)
FB dropped 32.9% in February. It opened at US$314.56 and closed at US$211.03. This drop in price was likely due to FB’s disappointing earnings being reported and weak guidance given, saying that user growth has stagnated. Earnings per share (EPS) were reported at US$3.67, missing estimates of US$3.84 while revenue was reported at US$33.67 billion, slightly better than estimates of US$33.4 billion11.
Based on Phillip Securities Research (PSR), FB is a BUY with a target price of US$312.
Technical Analysis: Bearish
Immediate Support: 202.11
Immediate Resistance: 217.35
Range-bound
Advanced Micro Devices (NASDAQ: AMD)
AMD beat earnings estimates for this quarter. AMD’s EPS of US$0.92 and revenue of US$4.83 billion are higher than the estimates of US$0.76 and US$4.53 billion respectively. AMD expects a strong sales outlook of US$21.5 billion, ahead of analyst expectations of US$19.26 billion, a 31% increase from 2021 sales. AMD also expects $5 billion in sales in the first quarter, driven by server and PC processor sales. AMD opened February at US$116.75 and gained 5.64% to close at US$123.34.12
Technical Analysis: Neutral
Immediate Support: 112.72
Immediate Resistance: 128.58
Range-bound
Foot Locker Inc (NYSE:FL)
FL beat the second quarter’s estimate and its management deems the second half of the year favourable13. FL EPS for the second quarter was US$2.21 which is around 119% higher than the expected EPS of US$1.01. Revenue increased 9.5%, from US$ 2.08 billion to US$ 2.28 billion, beating the expected revenue of US$2.09 billion. Despite the COVID-19 pandemic, consumers are still spending on athletic footwear and workout apparel which was partly why FL was able to beat estimates. FL started February at US$ 44.73 and closed 28.8% lower at US$ 31.62.
Technical Analysis: Neutral
Immediate Support: 26.64
Immediate Resistance: 31.16
Range-bound
Airbnb Inc (NASDAQ:ABNB)
ABNB delivered great results last quarter with strong guidance14 . ABNB EPS for the fourth quarter was US$0.08 which is around 166% higher than the expected EPS of US$0.03. Revenue of US$1.53 billion too, beat the expected revenue of US$1.46 billion. However, the 73.4 million nights and experiences booked were 8% lower than the previous quarter and missed estimates. The management expects the following quarter’s nights and experiences booked to be way higher than Q1 2019 levels. ABNB started February at US$155.35 and closed 2.48% lower at US$151.49.
Technical Analysis: Neutral
Immediate Support: 138.01
Immediate Resistance: 158.99
Range-bound
Under Armour (NYSE:UA)
UA shares fell despite earnings beating estimates15. UA opened February at US$16.12 and lost 3.04% to close at US$15.63. UA’s EPS of US$ 0.14 and revenue of US$ 1.53 billion both beat estimates of US$0.07 and US$1.47 billion respectively. UA’s apparel sales grew 18% and footwear was up 17%, accessories, however, fell by 27%. The management team is trying to brand Under Armour as a premium label which will be on par with brands like Nike. As for the coming quarter, UA believes that supply chain constraints will put pressure on sales.
Technical Analysis: Neutral
Immediate Support: 14.27
Immediate Resistance: 15.71
Range-bound
Bloomberg analysts’ recommendations
The table below shows the consensus ratings and average ratings of all analysts updated on Bloomberg in the last 12 months. Consensus ratings have been computed by standardising analysts’ ratings from a scale of 1 (Strong Sell) to 5 (Strong Buy). The table also shows a number of analysts’ recommendations to buy, hold or sell the stocks, as well as their average target prices.
| Security | Consensus Rating | BUY | HOLD | SELL | 12 Mth Target Price (US$) |
| Amazon Inc (NASDAQ:AMZN) | 4.96 | 57 (100%) | 0 | 0 | 4130.54 |
| CVS Health Corporation (NYSE:CVS) | 4.52 | 22 (75.9%) | 7 (24.1%) | 0 | 117.84 |
| Walt Disney Company (NYSE: DIS) | 4.49 | 26 (74.3%) | 9 (25.7%) | 0 | 192.31 |
| Roblox Corporation (NYSE:RBLX) | 4.45 | 16 (80%) | 3 (15%) | 1 (5%) | 82.97 |
| Qualcomm Incorporated (NASDAQ: QCOM) | 4.42 | 27 (71.1%) | 11 (28.9%) | 0 | 213.93 |
| Meta Platforms Inc (NASDAQ:FB) | 4.35 | 46 (74.2%) | 13 (21%) | 3 (4.8%) | 332.26 |
| Advanced Micro Devices (NASDAQ: AMD) | 4.11 | 28 (60.9%) | 16 (34.8%) | 2 (4.3%) | 151.16 |
| Foot Locker Inc (NYSE:FL) | 3.91 | 13 (59.1%) | 6 (27.3%) | 3 (13.6%) | 58.25 |
| Airbnb Inc (NASDAQ:ABNB) | 3.59 | 16 (41%) | 20 (51.3%) | 3 (7.7%) | 200.52 |
| Under Armour (NYSE:UA) | – | – | – | – | – |
To round up
With the ongoing geopolitical tension, it seems that volatility will continue for a while. As for March, the Federal Reserve Open Market Committee is scheduled to meet on March 16-17. The market is highly certain that interest rates will be raised. The uncertainty lies in the number and timing of the rate hikes.
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Reference:
- [1] Timeline: After months of tensions, Russia attacks Ukraine – Al Jazeera.” 24 Feb. 2022
- [2] Stocks Extend Losses as U.S. Adds Russia Sanctions: Markets Wrap.” 23 Feb. 2022
- [3] Gold price blasts to 15-month peak as war returns to Europe.” 25 Feb. 2022
- [4] Jobless claims GDP: – CNBC.” 24 Feb. 2022
- [5] US weekly jobless claims fall; fourth-quarter GDP growth revised ….” 24 Feb. 2022
- [6] Amazon (AMZN) Q4 2021 earnings – CNBC.” 4 Feb. 2022
- [7] CVS fourth-quarter earnings top expectations as Covid … – CNBC.” 9 Feb. 2022
- [8] Disney (DIS) fiscal Q1 2022 earnings – CNBC.” 9 Feb. 2022
- [9] Roblox shares dive 21% after earnings miss – Asia Newsday.” 16 Feb. 2022
- [10] Qualcomm (QCOM) earnings Q1 2022 – CNBC.” 2 Feb. 2022
- [11] Facebook-parent Meta (FB) Q4 2021 earnings – CNBC.” 2 Feb. 2022
- [12] AMD rises 10% after issuing strong 2022 sales outlook – CNBC.” 1 Feb. 2022
- [13] Foot Locker (FL) Q2 2021 earnings beat projections – CNBC.” 20 Aug. 2021
- [14] Airbnb beats on earnings and gives strong guidance – CNBC.” 16 Feb. 2022
- [15] Under Armour earnings top estimates, but shares fall as supply ….” 11 Feb. 2022
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About the author
Jonah Sim Hong Chee (Dealer), Lee Ying Jie (Dealer) & Chan Zi Quan (Dealer)
Jonah Sim is a US Equity Dealer in the Global Markets Team and specializing in US and Canadian markets. He graduated from University of Essex with a bachelor’s degree in Banking and Finance.
Ying Jie is a US Equity Dealer in the Global Markets Team and specializing in US and Canadian markets. He is proficient in trading using Technical Analysis, placing emphasis on supply and demand, and price action.
Zi Quan is a US Equity Dealer in the Global Markets Team and specializes in the US and Canadian markets. He is an avid crypto fan and is adept in macro analysis..
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