After a slow start to the year, US stocks rose to new record highs following the inauguration of President Trump. By Wednesday’s close SPDR S&P 500 ETF Trust New York Stock Exchange: Spy gained over 4% for the week, bringing the year-to-date (YTD) return to an impressive 3.47%. The rally was marked by unusually strong market expansion, with stocks in a variety of sectors including retail, communications services and energy posting positive gains.
The current growth appears more balanced than in previous years, when the so-called “Magnificent Seven” largely dominated the market.
So let’s look at three stocks from three different sectors that are on the verge of a breakout.
About Holding AG: leading in its sector
ON Today
- 52 week range
- $26.03
▼
$60.67
- P/E ratio
- 139.88
- Target price
- $59.73
Despite the underperforming retail sector, as evidenced by the SPDR Retail ETF New York Stock Exchange: XRT down 0.55% since the beginning of the year, On Holding AG New York Stock Exchange: Honor demonstrated impressive relative strength. The company, which designs and sells performance running shoes and apparel worldwide, outperformed its sector, up nearly 7% year-over-year as of the end of Wednesday.
After pulling back to the rising 50-day simple moving average (SMA) earlier this month, On Holding hit new all-time highs on Tuesday. Although the price fell slightly on Wednesday, the stock’s ability to recover and maintain support above $60 could signal further gains. This $60 level is quickly becoming a critical inflection point and one that traders should pay close attention to moving forward.
Analysts are bullish on the stock, with a Moderate Buy consensus rating and a price target that projects further upside potential. Morgan Stanley recently raised its price target on the stock to $65 from $62, citing strong gross margins and the potential for accelerating sales growth. Given the weak performance of the retail sector, On Holding’s resilience and upward trajectory make it a standout name.
Reddit Inc: New All-Time Highs and Continued Momentum
Reddit today
- 52 week range
- $37.35
▼
$191.00
- Target price
- $158.20
Reddit Inc.New York Stock Exchange: RDDTknown for its digital communities like the infamous WallStreetBets, hit new all-time highs this week. After consolidating above previous resistance at $160, Reddit has turned this level into solid support over the past two months. The stock rose above $180 on Tuesday, confirming a breakout to new highs.
Technically, maintaining $180 as support from here on out will be critical to Reddit’s continued upward momentum. However, the stock’s high valuation, with a forward P/E ratio of 222, may indicate some caution. Despite this, sentiment remains optimistic, with analysts assigning the company a Moderate Buy recommendation. Of the 21 analysts, most have a favorable forecast, although the consensus price is about 14% below Wednesday’s closing price.
Traders should also keep an eye on Reddit’s upcoming fourth-quarter earnings report, scheduled for February 12th. This event could be a major catalyst, potentially supporting or breaking the stock’s current bullish trajectory.
Broadcom Inc: Ready for a Bullish Breakout
Broadcom today
- 52 week range
- $117.43
▼
$251.88
- Dividend yield
- 0.99%
- P/E ratio
- 194.00
- Target price
- $225.83
Semiconductor giant Broadcom Inc. NASDAQ: AVGOThe technology company, known for its global presence in the design and development of semiconductor and infrastructure software solutions, is currently in a significant bullish consolidation near its all-time high. The move coincides with the announcement by the Trump administration and tech giants Oracle, Microsoft and OpenAI of a new company called Stargate. The venture aims to strengthen artificial intelligence infrastructure in the United States with an initial investment of $100 billion, with plans to increase this to $500 billion in the coming years.
Following this announcement, Semiconductor ETF NASDAQ: SMH emerged from a protracted consolidation phase, while on Wednesday, shares of a number of semiconductor companies showed significant growth. AVGO, which previously rallied following stellar earnings in December, is now consolidating near its peak in a bullish pattern.
If AVGO breaks short-term resistance at $247, it could signal the start of another significant uptrend.
AVGO has a Moderate Buy rating, which is in line with the sentiment of the aforementioned stocks. Analysts at Barclays and Mizuho also recently raised their price targets for the stock, reflecting optimism about its future performance.
You’ll want to hear this before you consider Broadcom.
MarketBeat tracks Wall Street’s top-rated and best-performing analysts daily and the stocks they recommend to their clients. MarketBeat has identified five stocks that top analysts are quietly whispering to their clients to buy now, before the broader market takes hold… and Broadcom wasn’t on the list.
While Broadcom currently has a Moderate Buy rating among analysts, the top-rated analysts consider these five stocks to be Strong Buys.
View five stocks here
Unlock a free copy of MarketBeat’s in-depth guide to stock investing and find out which cannabis companies are poised for growth. Plus, get exclusive access to our daily newsletter with expert stock recommendations from top Wall Street analysts.
Get this free report