Technically Broken: Buying Opportunities

Here are some ideas which we believe are undervalued and provide investors with double-digit upside. 

 

Advanced Micro Devices (AMD) 

This is the most shocking laggard. AMD absolutely BLEW out the quarter earnings. The non-GAAP earnings almost tripled YoY and revenues went from 1.79B in 2020 to 3.45B in 2021. In addition, CEO, Su upped guidance...again. Su previously said to expect 37% growth then in this release said we are adjusting the growth projection to 50%. They are hitting on all cylinders and executing on data center innovation, GPU's, CPU's, integration of Xilinx, gaming, etc. The largest growth driver to their top line was computing/graphics/enterprise, embedded, and semi customs (EESC), registering just under 300% YoY growth. Stock is trading below all moving averages and nearing 30 RSI (oversold).

AMD-Analyst Consensus Target $106 (+36%)

 

Disney (DIS)

After a great 2020, Disney is primed to have another great 2021 with the re-opening of their parks and improving Disney+ network. Disney has best in class IP which gives it a unique advantage when negotiating and creating content. For example,  their Star Wars, Marvell content they control and to watch you need to subscribe to Disney+. This has been a top content producer for 40+ years, I don't think that will stop. The re-opening of their parks will add back that revenue as well, which should bode well for their earnings. Technically, it has broken all moving averages and close to 30 on the RSI (oversold). 

DIS- Analyst Consensus Target $210 (+15.7%)

 

Airbnb (ABNB)

If you wanted a chance to enter Airbnb, it is now. The travel sector is expected and showing strong demand already as we get back to normalcy. Airbnb offers families concerned about COVID seclusion or travelers who just want privacy and space to themselves. During 2020 their revenue declined 30% and they saw strong demand come back in second half of 2020. We think this year, they will outpace expectations and continue to change the way people travel.  Stock has broken below all averages and RSI close to 30. 

ABNB-Analyst Consensus Target $210 (29.3%)

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