Our advice for investors is to stay fully invested; the major averages continue to trade near record highs as inflation concerns have tapered for the time being and second-quarter earnings have been strong, asserts Dan Sullivan, technical expert and editor of The Chartist.
Here's a look at two stocks that score highly in our relative strength rankings:
Snap Inc. (SNAP) — # 3 in our relative strength ratings — is a camera application that helps people to communicate through short videos and images known as a Snap. The company provides Camera, Friends Page, Discover, Snap Map, Memories and Spectacles.
Snapchat opens directly into the Camera, helping in creating a Snap and sending it to friends. It offers a range of creative tools that enables people to personalize and add content to their Snaps.
Its chat services include creating and watching stories, chatting with groups, making voice and video calls, and communicating through a range of stickers and Bitmojis. The Company’s advertising products include Snap Ads and Sponsored Creative Tools, such as Sponsored Lenses and Sponsored Geofilters.
The stock rose 24% the trading session after it reported results that exceeded expectations for earnings, revenue and user growth. In the second quarter it posted a loss of $152 million compared to a loss of $326 million, a year ago.
Revenue rose 116.2% to $982.1 million and above the consensus estimate of $846 million. Daily active users increased 5% to 293 million from 280 million.
Chipotle Mexican Grill (CMG) — a new addition to our ratings — serves a menu of burritos, tacos, burrito bowls and salads classically-cooked with wholesome ingredients and without artificial colors, flavors or preservatives.
It operated over 2,850 restaurants as of June 30, 2021, in the United States, Canada, the United Kingdom, France and Germany and is the only restaurant company of its size that owns and operates all its restaurants.
Second-quarter earnings rose to $7.46 per share on an adjusted basis beating estimates of $6.52 per share. Net sales increased 38.7% to $1.89 billion slightly ahead of estimates of $1.88 billion. Same-store sales rose by 31.2% versus estimates of a 29.8% increase.
Digital sales grew 10.5% year over year to $916.5 million and represented 48.5% of sales. The company opened 56 new restaurants during the quarter including one relocation, and closed five restaurants.
