How to tell if a winning stock will keep winning...and where we see that setup today
The Secret to Finding the NEXT Nvidia
Back in January, when LikeFolio included superchip player Nvidia (NVDA) on its list of favorite stocks for 2023, co-founder Andy Swan admits the company "took a little bit of heat" for that call.
After all, techs had enjoyed a big run, were falling out of favor, and there wasn't a clear new catalyst that would re-ignite the stock.
But Andy said that he and his brother Landon have learned one lesson through the years: Trust the system they built. So, they stuck to their guns.
"What we saw with Nvidia – and what we still see – is that it's the 'powerhouse' behind all these macro megatrends ... artificial intelligence, self-driving cars, blockchain technology. If it's innovative and new, they want Nvidia chips in their systems."
Fast-forward five months: Nvidia is up 168% year to date. And that rally was punctuated by last week's earnings beat and guidance boost that vaulted Nvidia into the select "trillion-dollar club" by market value.
But the Nvidia-style wins have been the exception, not the rule, for most investors this year.
Lots of folks have been stung by stocks that look like they're breaking out – but end up stalling ... or even falling.
At TradeSmith, we know that you need a FAR deeper view than what's visible to the human eye on a stock chart, or even in the last earnings report. You need a quantitative stock system that can dive below the surface – sort through a ton more data – and tell you if the odds are truly on your side here.
LikeFolio founders Andy and Landon Swan have the answer – and the system – to make that happen.
Their proprietary system – which hedge funds and other institutions pay up near a million bucks a year to access – harvests "signals" from social media, and algorithmically turns that data into buy and sell recommendations.
The fact is that tweets, likes, and shares are still the best way to gauge how consumers are behaving... Before that behavior becomes common knowledge from an earnings report – and ignites a stock-price rally that you have to watch from the sidelines.
These might even be stocks that have already had a great run... And other people figure they're due for a pullback.
But sometimes, the brand or industry is getting so much love on social media – that we know the upside here is much greater than most investors give it credit for.
As Andy and Landon recount in our interview, it's a great case study of a stock that some assumed would peter out, back in January/February, but LikeFolio signaled that it was just getting started. And sure enough, NVDA became one of the breakout winners this earnings season.
Now, a very different company is the one Andy and Landon like for a repeat performance: another winner they expect to keep winning.
TradeSmith is not registered as an investment adviser and operates under the publishers' exemption of the Investment Advisers Act of 1940. The investments and strategies discussed in TradeSmith's content do not constitute personalized investment advice. Any trading or investment decisions you take are in reliance on your own analysis and judgment and not in reliance on TradeSmith. There are risks inherent in investing and past investment performance is not indicative of future results.
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