🚀 Today's Big Ideas: VIPSHOP, LAM RESEARCH, EBAY
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TODAY'S BIG IDEAS
VIPSHOP – poised to seasonally rally by +24.3% during the next 60 days
LAM RESEARCH poised to rally +25.2% rally in 3 months
EBAY poised to seasonally rally by +9.8% during the next 60 days
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(1) Score 8.8 (out of 10): VIPSHOP poised to seasonally rally by +24.3% during the next 60 days
What’s Going On Here?
Vipshop, a leading online discount retailer for brands in China, has lowered its Q4 2021 net revenue estimates by -5% to 0% YoY (RMB34bn – RMB35.8bn) while the shares are trading -63% below the January 2021 levels. The PE ratio is just 6.95x.
Why Now?
VIPSHOP HOLDINGS LTD – ADR indicates an interesting 60 days seasonal set up. During similar occasions, VIPSHOP HOLDINGS LTD – ADR shares had a median return of +24.3% – based on 10 historical occasions with 8 of those showing positive returns (80%). This buy signal for VIPSHOP HOLDINGS LTD – ADR received a high score of 8.8 (out of 10). This insight was generated with last price of 9.34.
What’s This Company About?
VIPSHOP HOLDINGS LTD – ADR is in the E-Commerce/Products business. Based on the last 2 years’ risk/return profile, this asset is seen as Very Risky. ‘Wall Street’ analysts think the stock price will be worth 40.7% more (average). Ticker symbol: VIPS US.
What’s My Risk / Reward and Time Horizon?
We found 60 days to be the optimal trade horizon, after testing a number of possible alternatives (accuracy of previous returns). Otherwise consider closing out this trade once the target level of 11.61 (+24.3%) has been reached. Based on VIPSHOP HOLDINGS LTD – ADR’s recent up and down swings, LongShortBets suggests considering to set a stop loss level for this insight at 7.84 (last price at 9.34), which is equivalent to a -16.1% decline.
(2) Score 8.6 (out of 10): LAM RESEARCH poised to rally +25.2% rally in 3 months
What’s Going On Here?
LAM RESEARCH CORP, the semiconductor processing equipment company, has seen its share price target raised to $800 by brokerage firm ‘Cowen’ implying an upside price target of +33% from current levels. The company will report quarterly earnings on January 26.
Why Now?
LAM RESEARCH CORP has reached a new shorter-term low. Previously, during similar occasions, LAM RESEARCH CORP shares had a median return of +25.2%, over the following 3 months based on 10 historical occasions with 8 of those showing positive returns (80% hit ratio). This buy signal for LAM RESEARCH CORP received a high score of 8.6 (out of 10). This insight was generated on 2022-January-10 with last price of 664.29.
What’s This Company About?
LAM RESEARCH CORP is in the Semiconductor Equipment business. Based on the last 2 years’ risk/return profile, this asset is seen as Less Risky. ‘Wall Street’ analysts think the stock price will be worth 10.6% more (average). Ticker symbol: LRCX US.
What’s My Risk / Reward and Time Horizon?
We found 3 months to be the optimal trade horizon, after testing a number of possible alternatives (accuracy of previous returns). Otherwise consider closing out this trade once the target level of 831.56 (+25.2%) has been reached. Based on LAM RESEARCH CORP’s recent up and down swings, LongShortBets suggests considering to set a stop loss level for this insight at 610.89 (last price at 664.29), which is equivalent to a -8% decline.
(3) Score 8.5 (out of 10): EBAY poised to seasonally rally by +9.8% during the next 60 days
What’s Going On Here?
EBAY will release their quarterly earnings on Feb 3. With a price / earnings ratio (PE) of 16.8x, pretax margins of 33.3% and a recently decline of -17% from the October 2021 highs, the company appears to be at an attractive level.
Why Now?
EBAY INC indicates an interesting 60 days seasonal set up. During similar occasions, EBAY INC shares had a median return of +9.8% – based on 10 historical occasions with 9 of those showing positive returns (90%). This buy signal for EBAY INC received a high score of 8.5 (out of 10). This insight was generated with last price of 64.49.
What’s This Company About?
EBAY INC is in the E-Commerce/Products business. Based on the last 2 years’ risk/return profile, this asset is seen as Less Risky. ‘Wall Street’ analysts think the stock price will be worth 20.8% more (average). Ticker symbol: EBAY US.
What’s My Risk / Reward and Time Horizon?
We found 60 days to be the optimal trade horizon, after testing a number of possible alternatives (accuracy of previous returns). Otherwise consider closing out this trade once the target level of 70.81 (+9.8%) has been reached. Based on EBAY INC’s recent up and down swings, LongShortBets suggests considering to set a stop loss level for this insight at 60.09 (last price at 64.49), which is equivalent to a -6.8% decline.
For more investment insights, please visit us at www.LongShortBets.com