(Note: The author of this fundamental analysis is a financial writer and portfolio manager.)
Technology stocks are hot again, with shares of the sector rising by over 12%, using the iShares Technology Select Sector SPDR (XLK) as a proxy. Stocks such as Oracle Corp. (ORCL), Take-Two Interactive Software, Inc. (TTWO) and Activision Blizzard, Inc. (ATVI) are three technology stocks that have room to rise by 7% or more in the coming weeks, based on analysis of the charts. More impressive though, is that each of the three stocks would be within striking distance of their all-time highs.
Activision has been the best performer of the three stocks, with shares up by 17.3% on the year. Shares of Oracle and Take-Two have struggled in 2018, with shares up only 3.3% and only 1.9%, respectively.
Shares of Take-Two may rise by as much as 14%, climbing back to their all-time highs around $129, from the current price around $113.42. The technical pattern suggests shares of the video-game maker are ready to break out of a symmetrical triangle, and should that happen the stock's next level of resistance comes at $129.40.
Oracle is poised to rise by roughly 9% to about $52.50, from its current price of $48.25, bringing it to within $1 of its all-time high around $53.50. The stock is in the process of filling a gap created when shares of the software and database company plunged following quarterly results in the middle of March. The relative strength index (RSI) has been trending higher since bottoming at the end of March, and that too is a bullish indication. The company is scheduled to report fiscal fourth-quarter results on June 19, and analysts forecast are calling for the company to say that earnings climbed by nearly 5.8% to $0.95 per share, while revenue is seen rising by just 2% to $11.2 billion.
Activision may rise by 7% in the coming weeks back to its all-time highs, as well. Shares of the video-game maker recently broke out of a symmetrical triangle pattern, with no resistance level in the stock's way until reaching $79.50, nearly 7% higher than its current price of $74.29. The stock's RSI is currently trending higher and is currently below overbought levels at 70, and that too would suggest shares may have further to climb. (For more, see also: Analysts Bullish on Activision Blizzard.)
Despite all the turmoil in the equity market for much of 2018, each of these three companies may soon be soaring to record heights.
Michael Kramer is the Founder of Mott Capital Management LLC, a registered investment adviser, and the manager of the company's actively managed, long-only Thematic Growth Portfolio. Kramer typically buys and holds stocks for a duration of three to five years. Click here for Kramer's bio and his portfolio's holdings. Information presented is for educational purposes only and does not intend to make an offer or solicitation for the sale or purchase of any specific securities, investments, or investment strategies. Investments involve risk and unless otherwise stated, are not guaranteed. Be sure to first consult with a qualified financial adviser and/or tax professional before implementing any strategy discussed herein. Upon request, the advisor will provide a list of all recommendations made during the past twelve months. Past performance is not indicative of future performance.