Future dips in Walmart and Bumble shares could be an opportunity, according to Jay Woods, chief global strategist at Freedom Capital Markets.Future dips in Walmart and Bumble shares could be an opportunity, according to Jay Woods, chief global strategist at Freedom Capital Markets. Future dips in Walmart and Bumble shares could be an opportunity for investors, according to Jay Woods, chief global strategist at Freedom Capital Markets. Woods appeared on CNBC’s “Power Lunch” on Wednesday to give his hot takes on some of the market’s biggest movers of the day. Here is what he had to say during “Three-Stock Lunch.” Bumble Bumble is not a smart choice for traders with a longer-term outlook, according to Woods. But Wednesday’s huge sell-off could still be an opportunity for traders, particularly as Bumble founder Whitney Wolfe Herd is set to return as its CEO in mid-March, he said. “I would definitely swipe left and avoid this stock over the long term. But I’m looking where there could be potential opportunity,” Woods said. “User growth is going down, but we have technical levels that give us an actual advantage from a risk-reward setup.” Bumble shares plunged 30.3% on Wednesday to $5.64 after the online dating company gave weak first-quarter guidance. Bumble expects revenue of between $242 million and $248 million, lower than the $257 million call from analysts polled by LSEG. BMBL 6M mountain Bumble shares over the past six months. The stock’s had a rough performance for a while now, losing more than 58% over the past year. “It’s stung investors for a long time, but this could be the time that you may want to swipe right and see the stock rally back to $7.50,” Woods continued. “If this gets down to $5.50 or lower, I think it’s worth taking a shot. … It could prove to be a good snapback rally over the next quarter once the CEO change comes in.” Walmart Woods trimmed his Walmart holdings ahead of the big-box retailer’s results due Thursday morning, but he maintains a bullish long-term outlook on the stock. “The stock is slightly overbought,” Woods said. “That doesn’t mean the trend is going to change. It’s been overbought several times during this run, but let’s look forward on any weakness where we want to enter the stock because over the long term, it’s still a great name to buy.” Walmart’s stock price is up more than 15% year to date and settled at $104 on Wednesday. Woods advised traders to watch for the stock to dip to around $95 or $96 for a buying opportunity. “The stock is the juggernaut. It’s the bellwether for all retail stocks,” he said about the retailer, which serves as a general indicator for consumer spending and the health of the U.S. economy. Shares of Walmart are up 83.1% over the past year. SolarEdge Woods doesn’t think investors should be impressed by SolarEdge ‘s postearnings rally . Shares closed Wednesday up 16% on better-than-expected revenue, even though SolarEdge posted a steep loss in the fourth quarter. The company’s cost-cutting measures and positive free cash flow in the latest quarter were positive for the stock’s story, but not enough for the strategist. “Over the long term, what is the tailwind? How are the clouds going to recede over this stock? It’s not going to be from this administration,” Woods said. “If you own it, I would fade it. And if it rallies a little bit more, I would probably sell it until proven otherwise. I would wait another quarter before getting into this name.” He noted that despite the stock’s pop, the biggest gains faded by the end of the trading session, as SolarEdge opened around $23 per share and ended the day at about $19.60. SEDG 1Y mountain SolarEdge stock over the past year.
Woods appeared on CNBC’s “Power Lunch” on Wednesday to give his hot takes on some of the market’s biggest movers of the day. Here is what he had to say during “Three-Stock Lunch.”
Bumble
Bumble is not a smart choice for traders with a longer-term outlook, according to Woods. But Wednesday’s huge sell-off could still be an opportunity for traders, particularly as Bumble founder Whitney Wolfe Herd is set to return as its CEO in mid-March, he said.
“I would definitely swipe left and avoid this stock over the long term. But I’m looking where there could be potential opportunity,” Woods said. “User growth is going down, but we have technical levels that give us an actual advantage from a risk-reward setup.”
Bumble shares plunged 30.3% on Wednesday to $5.64 after the online dating company gave weak first-quarter guidance. Bumble expects revenue of between $242 million and $248 million, lower than the $257 million call from analysts polled by LSEG.
The stock’s had a rough performance for a while now, losing more than 58% over the past year.
“It’s stung investors for a long time, but this could be the time that you may want to swipe right and see the stock rally back to $7.50,” Woods continued. “If this gets down to $5.50 or lower, I think it’s worth taking a shot. … It could prove to be a good snapback rally over the next quarter once the CEO change comes in.”
Walmart
Woods trimmed his Walmart holdings ahead of the big-box retailer’s results due Thursday morning, but he maintains a bullish long-term outlook on the stock.
“The stock is slightly overbought,” Woods said. “That doesn’t mean the trend is going to change. It’s been overbought several times during this run, but let’s look forward on any weakness where we want to enter the stock because over the long term, it’s still a great name to buy.”
Walmart’s stock price is up more than 15% year to date and settled at $104 on Wednesday. Woods advised traders to watch for the stock to dip to around $95 or $96 for a buying opportunity.
“The stock is the juggernaut. It’s the bellwether for all retail stocks,” he said about the retailer, which serves as a general indicator for consumer spending and the health of the U.S. economy.
Shares of Walmart are up 83.1% over the past year.
SolarEdge
Woods doesn’t think investors should be impressed by SolarEdgepostearnings rally. Shares closed Wednesday up 16% on better-than-expected revenue, even though SolarEdge posted a steep loss in the fourth quarter.
The company’s cost-cutting measures and positive free cash flow in the latest quarter were positive for the stock’s story, but not enough for the strategist.
“Over the long term, what is the tailwind? How are the clouds going to recede over this stock? It’s not going to be from this administration,” Woods said. “If you own it, I would fade it. And if it rallies a little bit more, I would probably sell it until proven otherwise. I would wait another quarter before getting into this name.”
He noted that despite the stock’s pop, the biggest gains faded by the end of the trading session, as SolarEdge opened around $23 per share and ended the day at about $19.60.
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