2 Stocks That Could Explode in Q2
How’s everyone doing after this week? It hasn’t been a very pretty start to April and the second quarter but we always have to keep in mind that corrections are necessary so that one day we can continue higher. After the second consecutive losing week to start the quarter, some of you may be wondering if we’ve lost our bull trend. It’s safe to say that the bull trend is still intact, although we’ve gained so much already this year that it wouldn’t be surprising to see some more downward pressure in the coming weeks.
With the first-quarter earnings season under way, it’s time to look at some stocks that have underperformed lately. Why? Because underperforming while heading into a positive earnings report can send the stock skyrocketing. That’s why I always screen for stocks that have stumbled ahead of what should be a clean report. Here are two stocks that I think could explode in the second quarter.
Block (NYSE: SQ)
One of these times that I write about Block, my prediction will come true. Block has been a frustrating stock to own for long-term shareholders. Why? Shares surged during the pandemic and were trading at well over $200 at one point. Today? The stock is struggling to get back to $80. But I think it’s got some upside in it, especially if it wins some legal battles to exit the de novo period of its ILC charter. This would allow Block to offer more banking services through its Cash App and Square Financial Services. On top of that, Block is a major fan of Bitcoin and holds a significant chunk on its balance sheet. You can bet Jack Dorsey is thinking of more ways to integrate Bitcoin into the ecosystem as well. Block has an average analyst price target of $89.88 and just received a nice price target upgrade to $90.00 from BTIG. Shares are down by more than 10% over the past month, so any positive earnings report will likely send this spring-boarding higher!
Celsius (NYSE: CELH)
It’s been an interesting journey for Celsius shareholders. After a blowout earnings report last quarter and news that it is expanding its distribution reach into Europe, Celsius’ stock has been tumbling. Shares are down by more than 17.0% over the past month and the chart looks like it’s done its mini correction. On the weekly chart, Celsius has revisited its breakout area and is looking to flip prior resistance into support. This is a very bullish process on a stock’s chart. The loss of 17.0% over the past month is also interesting to note as it heads into another earnings call some time in the second week of May. I think the pull-back might be done but upcoming market volatility could lead us to consolidate into earnings. Look out for Celsius, I think it could rip higher following its flip of resistance into support on the chart.
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