These Two Stocks Are Poised to Rally This Month
Investment professionals believe Whirlpool and Qualcomm are poised to surge after posting strong gains in July, according to CNBC.
Qualcomm and Whirlpool both posted double-digit percentage gains in July, outperforming the S&P 500. Nancy Tengler, chief investment officer at Laffer Tengler Investments, said Qualcomm is the best-positioned stock to surge this month. “This is a semi that has not kept up in the multiyear rally we just experienced. They had a great quarter: They beat, they raised guidance, they’ve got Huawei contracts, they’ve got a 5G handsets. But more important to us, valuation is still attractive,” Tengler said.
Qualcomm is up 67 percent over the past 5 years, far below the 220 percent rally that the SMH semiconductor ETF has posted over the past 5 years. Tengler believes that Qualcomm's dividend yield and price to sales ratio is proof of its potential. “We think the dividend is safe, we think they can grow the dividend,” said Tengler. “It’s cheaper than in many of the others in our work. So we added to it last month, and we’re going to continue to hold it.”
Craig Johnson, chief market technician at Piper Sandler, prefers Whirlpool. “We like Whirlpool. This is a stock that has reversed a downtrend going back to the 2017 highs, you’ve broken above your 2019 highs. It still looks like to us you’ve got about 16% to maybe about 24% upside up to the next kind of resistance levels around $188 and $200 on the chart,” he said.
Whirlpool is up 26 percent in the past month and 45 percent in the past three months.