Molson Coors Beverage Company (Long Idea)
During Thursday’s “State of the Market” webinar with my colleagues Josh Martinez, Anthony Speciale, I pointed out that the alcoholic beverage sector is coming out of a Stage 1 base and is on the verge of breaking out higher.
- Surge score: 96/100
- % Above 52-wk low: 39%
- Sales growth: +17%
- Return on Equity: 7%
- Triple momentum: yes
Molson Coors Beverage Company (TAP) is one of the strongest stocks in this sector and currently finishing a 12-month “cup with handle” pattern.
Consider buying here with a stop at $54.10.
MGP Ingredients, Inc. (Long Idea)
Another alcoholic beverage stock that looks even stronger to me is MGP Ingredients, Inc. (MGPI).
- Surge score: 98/100
- % Above 52-wk low: 77%
- Sales growth: +80%
- Return on Equity: +20%
- Triple momentum: yes
The distilled spirit-maker is forming a “base on base” pattern with extremely tight price action over the last two weeks.
The relative strength line is steadily climbing higher even as the broader market chops back and forth.
Consider buying MGPI on a breakout above $103.25 with a stop at $99.05 for a very low-risk trade.
Halozyme Therapeutics, Inc. (Long Idea)
Halozyme Therapeutics, Inc. (HALO) is a biotech stock that has been steadily drifting higher since February.
- Surge score: 97/100
- % Above 52-wk low: 50%
- Sales growth: +32%
- Return on Equity: 169%
- Triple momentum: yes
It broke out to new highs on heavy volume on July 7 but has since pulled back to the 21-day moving average.
Traders may consider a pullback buy here with a stop beneath the swing low at $43.40.
