Beyond The Megacaps: What To Watch In Eli Lilly, Sandisk, SpaceX Earnings | IBD

Hey everyone, welcome to our earnings cheat sheet for Friday, July 31st. It's Alexis Garcia and Ed Carson here and we'll be taking a look at some key upcoming earnings reports to help you prepare for the week ahead. So Ed, we just got through a big week here with a lot of tech earnings. We had a Fed meeting, uh, but we still have a lot incoming. Uh so what's on your radar for this week? >> Yeah, and in some ways this is even bigger week for investors because there may be more actionable stocks or stocks that are we're seeing as opposed to the mega caps. Uh want to take a look at Eli Liy, SanDisk, and SpaceX, which will be reporting for the first time as a publicly traded company. >> All right. Well, let's get into it. Uh let's start with Eli Liy, which is scheduled to post Q2 earnings on Wednesday, August 5th. Earnings for the pharmaceutical giant are projected to fall 5% to 601 per share. Meanwhile, revenue is expected to climb 33% to 20.7 billion. And here's why we're watching Eli Lily. It's going to be all about Lily's uh oral obesity drug. Uh we'll want to know how it's doing uh by itself and relative to Novo's obesity pill. And we'll also want to know uh how Lily's cancer drugs are performing. Ed, and I think for investors as well, especially with the popularity of these weight loss drugs, is Eli Lily ramping up production fast enough uh to turn out uh the amounts of drugs needed uh so that profits keep growing even as maybe uh prescription pricing fluctuates here. >> Yeah, I mean uh it's it's it's really growing strong. This is a huge company and you know, a a big pharma company that's delivering that kind of growth, it's hard to move the needle. I mean, honestly, but you can have these mammoth drugs and they just, yeah, they're nice, but doesn't have that big of an impact. Boy, Eli Lilly is not one of those. Uh, they've had, you know, so their their earnings are actually supposed to fall this time, which is I don't know why because the trend is still strong. There must be some certain reasons in there, but the trend is still very strong. Uh, wanted to learn also more about their upcoming drug, but you know, their upcoming next generation obesity drug. They may not say anything really new about that. Maybe they'll talk about their plans for how that might ramp up. But yeah, this is delivering just a so much strength. They are the leader in the field and they look like they're going to continue that leadership for some time or at least at the very least be a leader for several years in what is, you know, we talk about AI, but sometimes you just talk about the obesity drugs is one of those society changing drugs. We've all seen people that you go, "Wow, they must be on those drugs." It is just an amazing change. And Eli Liy is at the very front of that. >> They are. And in terms of that market, I mean, they really closed the gap with Novo, Nordisk, Ed. Uh but let's go ahead and look at the chart and see what the chart is telling us. Uh it's trading uh back in a buy zone here. Uh it's below the 21day line right now, Ed, but uh we had this breakout out of a cup base on May 28th. It's kind of uh just been hanging around. It's been trying to advance. Uh it's tested the 21-day line a couple of times. It has always rebounded. Uh but what are your thoughts here? Because this is technically actionable ahead of earnings. So how should investors be looking at this? >> Well, one, I think they should be waiting for earnings, but this is like almost as a perfect example of why it's been hard to buy things even in strong sectors. Okay. Yeah, sure AI has not been doing great. Uh but there's been sectors like you know this has been doing well but okay it had the initial breakout it fell back it came basically back to a sell signal but okay but then it ramped back up and then came right back down ramp back up and if you're buying on strength it's hard to have made money in this over the last couple months even though it's sort of trended higher hasn't made a lot of things now if you're a longtime investor whatever it's like all right fine no big deal but this is where a lot of things are they'll there's these moves but there's still sector rotations So even though this has sort of been trending higher, there's been higher lows. So you know out there there's been higher highs. Well, not this last time, but generally been trending up. So it's just tough. So if it bounces off the 10-week line or maybe if it gets above the short-term highs, you know, from this week, you know, either way, maybe that would be the better spot off of that, you know, like a sort of an early entry. There's a tight pattern on the weekly. It looks better because it hasn't been moving. So there's sort of tight action. uh it's not going to be ready next week, but maybe the end of next week, it could have a flat base. So, it still looks pretty good. It definitely should be on watch list. It's just that today, you know, in this particular day, there was a lot of big pharma selling. I mean, that's just way it is. It's just hard uh to get going. But, there's definitely pos possibly actionable. It's just been tricky. And I just sort of why people should in general, even if they're going into things, just be careful and know your exits. uh because this market has not been trending strongly higher even outside of AI >> and uh those highs that we'll be looking at then Ed are around the 1232 level. Uh let's just go back to the weekly chart uh because we can see here Ed uh fundamentally uh EPS growth uh is projected to drop pretty dramatically. Again we don't know what's really causing that but anything else that's jumping out to you? I mean, we have a stellar composite EPS rating uh rating for Lily here. >> I mean, this is like a great defensive growth name. I mean, some big pharma names are pretty pretty defensive because they're not growing that much. This delivers real growth, but I mean, yes, there's always potential for a drug news, but it's like this one has such established growth. It's going to grow. It's not like a biotech that you could have that bad news. And medic, you know, government insurance covers things. So it just seems like this is safe. At the same time, you're going to have strong growth. Now, you know, people have po raised this stock as a reaction to that, but it just it's just really strong performance that looks fairly baked in like you can pretty much count on strong growth. I mean, it could always underperform, it could outperform and all that, but that's uh that's that's that's something nice to see. Defensive, but really strong growth. It's a nice combination. >> And any thoughts? You know, we see the relative strength line here. It's been trending higher um over the last few months, but you know, in terms of this year uh pretty flat on the year. Uh what are your thoughts on that performance in terms of the relative strength line? >> You know, sometimes stocks will sit out. I mean, it did have a big run before that. If you scrunch the space a little bit more, there was a decent run, but it took a while. You know, there was a big run. So, it's been sitting out as you say. uh in some ways the relative strength. The stock hasn't really made a lot of progress in almost two years, you know, and but take a look at that earnings line. That earnings line, that green line that has done nothing but go up and everybody knew that was coming. They could see the drugs. They knew it was coming. But still, that is jaw-dropping move. And that sometimes happens. And this is why you sometimes you buy on fundamentals and technicals. Sometimes you just the sometimes the stock just doesn't move even though you could say, "Oh, look at the earnings, look at the earnings." uh you know so maybe it'll go on another run. That's the good news is that it has continued to do that. So that would be a positive. It it's you know maybe it's ready for another run but it hasn't really made that run for a while. >> All right. Well in a good position here ahead of earnings. Uh let's move on and take a look at SanDisk which is expected to report fiscal Q4 results on Wednesday, August 5th. Earnings for the memory chip maker are expected to rise 11,857% to 34.87 per share. Revenue is projected to climb 343% to $8.42 billion. And here's why we're watching SanDisk. Uh we'll be paying attention to any comments on the data center and enterprise storage demand. We'll also be looking a lot at forward-looking guidance. Uh that's going to be key with investors. uh seems like they're already pricing in uh that implied volatility with these memory chip names, Ed. And we'll also be taking a look at average selling prices for flash memory just to confirm that this pricing power remains intact. And Ed, memory chips have been really hot, but they have been taking a beating lately uh as investors worry about this AI spending. So, what are your thoughts here with the climate around the overall sector? Yeah, I mean one thing is that okay, we'll have had all the hyperscalers out there and we'll get a sense of um by then. You know, we've gotten a number of them and you know, there's just concerns. Is it sustainable? Even though they're spending like crazy, there's just a concern about that. There's still a concern about memory chips, you know, will that really be has it really broken that cyclical nature or will that roll over and memory chip prices crash, you know, like they often do now? I don't think anybody expects them to crash, but yeah, because the earnings are going to be great. Now, now I don't know. I mean, it could they might miss. I mean, that's always possible. They're going to be enormous earnings. Everybody knows that. That that's that's just a given whether they beat views or not, but they people want to see that and they guide up, but then it's still just sort of a vibe. It's like, how can can you shake that? Can you even if they say it's going to be tremendous growth for the foreseeable future, can they convince investors that that's going to be the case? And I just investors are very gunshy uh out there. Uh but you know, it's just that's just a mindset, you know, you know, because yeah, you look at it and you look at their growth and their growth is expected to be strong. You'd say, "Wow, they should they should still be very uh should still be doing well." But uh that's something that investors have to we investors have to be convinced that this has more run to go that it's not going to peter out next year or the year after. And looking at the daily chart here, Ed, uh lately, uh it seems like investors have not been convinced. Uh SanDisk has fallen, I think, over 50% uh since hitting this high uh back here in June of 2354. Uh it's really taken a beating. Looks like right now it's trying to maybe uh find its footing around the 1,00 level. Uh but again, this one has really run a lot. So, what are your thoughts here? uh ahead of earnings. It's in between uh the 50 and 21 day and 200 day line. Uh so kind of in a no man's land a little bit, but uh your thoughts here on the chart? >> Yeah, like it's it's not sometimes when we say no man's land, we talk about no man's land between like the 50-day line and a new high. This is almost like trying to rise up the circles of hell kind of thing, you know? It's like it's it's a lot of work that needs to be done. There's that downtrend it could break, but honestly, I think it needs to get above the 50-day line. And it's so dramatic. I mean the the selloff has been so fierce. I mean it has really been down like oh blah blah blah. It just has been. I mean it's like it fell more than 50%. This is still the S&P 500's best performer. You know even though it's lost over half its value up until today and now it's only like 46%. But it's like just enormous. So, it needs to get back above and then set up again because if it rallied from a,000 to say 1,800 or so, like getting finally back above the 50-day line and something, it's just going to be so V-shaped. And maybe it does that, but it could still take it could be a lot of work. And it could get up to the 50-day line and it could it could reverse off. And that's something else that people have to get. What if it gets to the 21-day line trend line or gets up to the 50-day line and then falls off? I mean, that could end up being a shorting opportunity. I mean, I'm not uh that's not something I really do very often, but so you have to be thinking there's some short covering on this particular day, but you know, and it could gap up even on earnings, but then you could fade off. So, it needs to show sustained strength. The the goal isn't to buy the bottom. The goal is just to buy when the odds are most in your favor, and this is not a good environment for that. Uh yes, you could make enormous gains quickly, but you can see how fast it could go down. Just even with this particular day, the stock is down for the week. You know, again, you don't expect to see it, you know, uh so we'll see. I mean, you know, in hindsight, we'll all look and say, "Aha, but you know, there have been that is just really fierce selling." Uh and we just don't know how things are going to go. Uh you know, if if people feel like um that memory is going to see much slower growth, much weaker pricing, uh then then this could see further losses. um you know it's out there. >> No and and it's so interesting because as you mentioned uh I mean the growth numbers that are expected are so enormous but uh in terms of uh where the AI trade is right now um you know beating that might not be enough for SanDisk. >> Yeah. And just to go back and like not to this one let's go to Western Digital for a moment which we'll just quickly go that's also next week but that one has a history that actually spun off SanDisk. But if you just look to the left hand side of the earnings, there's these down, down, up, down, up, you know, for a couple of years. That's the kind of thing that we're talking about. It's trying to break, memory is trying to break that cycle of a couple of big years and then terrible years. So, there's a reason why these stocks tend to have very low forward pees because the earnings just don't last and so people don't want to hold it long term. And Western Digital is closer to the 50-day line, 10 week line. So, that could be interesting if it gets above that. uh you know that has earnings next week. If it gets above last week's high that's a little bit above that, you know, maybe you could see, you know, maybe that would be something that you could try to play off of uh on there. SanDisk is just much more beaten down. Uh but I just want to explain this. It's more the earnings thing. There is a real reason why people are, you know, why these things rise and fall so much because of that that skepticism, the cyclical nature and the history of it. >> All right. So for Western Digital, we'll be keeping a eye around the 576 level ahead of earnings at uh but let's keep going here uh with SpaceX, which will report its first public earnings on Tuesday, August 4th. Uh the aerospace behemoth is expected to see Q2 earnings at a 23 cent loss and revenue at $6.88 billion. We don't have any clear year-over-year comparisons here, but there's a lot to watch here with SpaceX. And I I think for the overall company, I think the main concerns are going to be profitability, revenue growth, cost and expenditure forecast, free cash flow. Uh, of course, when it comes to the Starship, a lot is hinging on that business. We'll want to get updates there. Uh, any launch cadences. Uh, we also have rumors about a SpaceX Tesla merger. Maybe Elon Musk will make comments there. Um, but Ed, a lot to cover. So, again, why don't you just outline for us uh your thoughts about SpaceX and and everything that's out there that investors will have to parse through with this first earnings report? >> Yeah, and we still this one is so like the first earnings report is so important, but we really don't even really have a handle of what SpaceX is. I mean, in a real mindset, I mean, I I'm not saying people can't, but there's just so much going on. to say Starlink is profitable and maybe it's somewhat subsidized by cheaper launches, but whatever. Starlink isn't a but that's sort of a normal telecom business. You got Starship that could dramatically improve the profitability of rocket launches. Will that come out? Will not. We know that's just sort of out there. That's not going to be an earnings report per se. That's just something they have to do it, you know, and they had a successful launch, but there's that's something out there. uh they're spending a ton on XAI, so they're probably going to be cash flow negative, you know, for a while. And how much are they going to invest in that? Because we're that's, you know, if they want to be a player, they have to spend gobs of money like everybody else. Uh so we'll see. Revenue is supposed to skyrocket after this quarter sequentially. Some of that is reflecting the XAI because XAI has sort of pivoted from trying to become its own, you know, like AI models and stuff to renting out their cloud computing. So, they have this compute. So, they're going to get a lot of money. Is it worthwhile for their investment that they put in? I don't know. That see again, it goes on and on. It's really there's just it's just investors are going to have to see how that shakes out and there's going to be a lot of talk and it's like and then it's like you know Elon's going to say things are people in the mindset because right now people are not that excited about AI and they're not that excited about space stocks you know what looked like a really you know the bullish themes of AI and space looked really good when SpaceX came public right now and that's it's not SpaceX's fault but those themes are not in favor right now but again just so much you know that is out there and it's going to be a while before we really get a sense of what honestly what we want to see out of this company, what is expected out of it. >> And just to throw uh another thing into the mix here, Ed, because as you mentioned uh you know those headline numbers will be focusing on uh that subscriber growth with Starlink and all these comments that Elon Musk is going to make, but we also will have what over 900 million unlocked shares hitting the market uh days after earnings. That's going to be uh another uh cherry on top of the cake here, I guess. However you want to slice it, but uh yeah, a lot going on. >> Yeah. So, and so I mean, again, it'll be interesting again what they have, you know, maybe I don't know how much guidance they'll give. I don't know. I mean, it's just there's just there's just a lot out there. Um and what people are excited about uh and not excited about right now. >> Yeah. Well, let's look at the chart because uh SpaceX uh it rocketed the first 3 days of trading. It has since pulled back from that. It seems like it's really trying to maybe uh find its footing here, bottoming here around the uh 1108 level. Um so give me your thoughts on this chart and you know this isn't uh unusual for IPO stocks to do this. Um so how are you looking at SpaceX? Yeah, and obviously this is in the context of space and AI stocks selling off the space I mean some people said oh the SpaceX IPO sort of marks the top. It didn't really but there was so much excitement about it they were able to come to public and that sometimes is the peak you know not uh for for other things. Yeah, this needs to come back. I mean there was a time early on when it was punching above 150. It sold it surged up came out like oh maybe it's rounding out starting to get an IPO base and there was just this is hint and then it sold off again. Not unusual to see that. Not unusual to see those little hints. At this point, there's a lot of trading at that area. I would like to see it get all the way up to like 160 and you know, and sort of set up some kind of handle or some sort of something, you know, get above there. And but I mean, I know that if it perks up a little bit more and people say, "Hey," and yeah, I mean, look, if it's the bottom, sure, it's nice to buy it, but there's there's a lot of people that could be doing it. And often those like that hook pattern or that early things, it's just not enough. And you also have to put it in the context of the market. Look, if the market is ripping and space stocks and AI stocks are starting to move again, you know, your your risk mentality can pick up a little bit, but if those things are still selling off, it just that's a headwind. Uh so I think it needs like again it just and if you do something aggressive, you have to be aggressive in getting out. You just absolutely have to because people who bought at 155, oh, I'm going to get in there early and it didn't work. Well, now where it is, you know, it's well below the 135 buy point. There's a lot of shares that are going to be sold in the next couple days after earnings. Again, this is why like IPOs in general are very risky and some maybe it'll be 6 months from now, maybe it'll be a year, you know, that's what happened with Meta and you know, this will probably provide buying opportunities. It's just right now it is not. I just always want to caution people about that early on. You know I >> No, it's always important to be patient, especially with IPOs, Ed. Uh but those are the some of the top names on our radar. Uh but there's a lot more. Uh let's jump over to AMD Ed earnings there on August 4th. Uh AMD has had a nice turnaround here so far this year. Uh it's stumbled uh this week. It's below the 50-day line, but we have uh a nice uh gain here on July 30th. Uh so trying to hold around the 500 level. Uh but thoughts here, Ed? This is one of the there's definitely some names that are above their 50-day lines, but this is one of the few even then among the AI hardware plays that's actually again close to the 50-day line at least. So, I can imagine after earnings if it punched above there, you know, maybe there's something it sort of was messy chart action even on the left side sort of up and down. It was holding up, but it was not doing it in a very It was It was messy. I mean, it was just sort of up and down. It wasn't very appealing. It'd be great if it could bounce up towards some of the short-term highs and maybe base out for a little while and then go. It just doesn't seem like the kind of market that would let it do it. I could, you know, that would do that. Uh, but yeah, this is definitely one that people should be looking at. It's one of the relatively better performing names in the AI space, but as you saw, it was holding up, holding up, and then finally broke. Uh, but maybe it could be one of the first to come back. We'll see. >> All right, how about we look at Cloudflare Ed due on August 6th? Uh this one looking pretty good. Uh it's above a buy zone right now, but uh it attempted a breakout uh back here on June 1st. It pulled back pretty sharply to the 50-day line, but found support there. It has since advanced and it seems like some nice shelf action happening right here, Ed? So, uh thoughts with Cloudflare? >> Yeah, pretty nice shelf action on a weekly chart. It bounced off the 10-week line. So, there's some nice action. It's also it does have a tendency to make big moves though and there's some big um you can see some big weekly losses in there and there's some some decent you know things but you can have some downside reversals. Uh I'm a little wondering it's like well if I could see it gapping up or gapping down on the gapping up will it feel extended on earnings if it gaps? I mean I don't know if this will provide an opportunity. It doesn't look as steady as some other names in the software space but clearly it's one of the better looking software names. All right, how about we move ahead to data dog ed. Uh earnings there on August 6 as well. This one is in a cup with handle base here with a 27670 buy point. So thoughts with data dog. >> Yeah, this was arguably already been actionable from when it broke the downtrend of a handle. It's close to this handle uh breakout, an actual handle breakout. So we'll just um you know, we'll see how that goes. you know, strong earnings. RS line has been at highs. So, yeah, I mean, we'll see on earnings how how it goes. Uh, this I say like this is one of the very best looking games and this one's looks this was forming a base whereas net was much more volatile and up and down or having these very short things and then falling back down. This one's been better and and it clearly made a big uptrend over the last few months um as oo, you know, so this is one of the very probably one of the five four or five better names that look you know right now. >> All right. How about Yeah, how about we look uh at Palunteer Ed? Uh this one has been in a downtrend here. It's below all the moving averages. So, not something we would want to buy, but again, I think Palunteer is such an important name in this AI software space. So, what are you looking uh with in terms of earnings there? >> Yeah, I mean, look, it's supposed to be another quarter, I think, of accelerating revenue growth. Uh or maybe actually it's gone 11 times. It may not this time. The earnings growth is amazing. Uh I mean there's a lot to like about that. The valuation, people used to talk about the valuation, but it's it's getting more in line. It's getting more normal. The earnings just keep on moving up. If you go to a weekly, well, you can look at the earnings line and that just powers powers powers higher. >> But the stock, but again, this is why we talk about you can't, you know, the stock has been really struggling for, you know, since last November. And it's just the way it is and it needs to make recoveries. I think get above, you know, get above the 50-day, get above the 200 day line and then then form a base of some sort. You know, uh it's just, you know, the RS line has been really struggling and that's just something that it's out of favor. Uh and it just has not been able to make the progress despite its very strong fundamentals. >> All right. Well, we talked about Eli Liy. Let's look at Novo Nordisk Ed with earnings on August 5th. this one uh breaking out recently out of this cup with handleb uh on July 29th. Uh but give me your thoughts here. This is kind of a lopsided cup. Uh it's you know reversed back below the buy point on July 30th. Um so any thoughts here with Novo? >> I mean the thing is it's it's it's sort of been a long downtrend. If you go to a weekly this peaked back in 2024 where Lily hasn't made a lot of progress. This has fallen over the last three years. And so, yeah, this is sort of a bottoming base, but it there wasn't really a prior uptrend of much. I mean, it's something that could be bought, but there's a lot of overhead resistance. The earnings aren't that good, and they aren't supposed to be good. I mean, they might have an up quarter, but it's like or, you know, down the road, but not this one. And there's the question, can it can that um obesity drug the pill continue to do well? And heck, after next after next year, it's not just Lily and other things. It's like there's going to be more competitors out there. So it just uh where Lily has a lot of growth, this one does not. And so it just seems a lot of yellow flags at the very least. >> Yeah, why not put your money uh behind the leader? Uh let's take a look at Vertex Pharmaceuticals due on August 3rd. I'll switch back to the daily here, Ed. Uh this one uh broke out on July 2nd. Uh it's fallen sharply though. It looks like though it's looking for support at the 21day line here. Um, so your thoughts here? >> Yeah, I mean it was I went up too much and then came back down pretty hard. Uh, I mean I guess there's something out there. It just isn't that the base doesn't look great and the earnings haven't been particularly strong, you know, and uh so I mean that I'm not sure what's going to change around. It just hasn't made a lot of progress. It's not in a huge downtrend like Novo, but it hasn't made a lot of progress over the past couple of years either. and it's prone to some pretty violent action as you can see even on a daily. Uh so it's not that appealing. I mean again if it moves back above that old buy point you could probably argue oh okay there's something there you can sort of use that but it just it doesn't look that appealing out there even in just the drug drug or biotech space. >> Uh let's go on to Oscar Health Ed uh earnings there on August 5th. Uh this chart looking pretty good uh above the 21day line. uh looks like maybe that 3310 high uh would be a level to look at um as earnings approach. >> Yeah, I mean if it weren't for earnings, I think you could have used the bounce off the 50-day line. Still, well, it's now 10% off the to the 10- week line, probably even more. So, I suppose if it paused and consolidated, you could use this week's high as an entry in a an emerging base. I'm not sure how deep that was and if like if it would be a flat base or not. I've done the math, but you that's something emerging. So, there's something going on. This has been growing. You know, there were some real losses. It's growing strongly. Uh we've had a number of health insurers already. It's held up pretty well. So, you know, this is a way to be more defensive, but still growth. Uh that's outside of some other spaces. People, oh, AI, oh, some biotech drugs, but uh there's definitely some, you know, some health insure names that are doing relatively well. This this seems to be the leader. >> All right. We'll be looking at that 3194 level. Uh Ed, uh CVS, I don't think we've ever talked about CVS before. Uh due on August 5th. Uh this one has had a nice run uh from a breakout back here in May. Uh it's really respected uh that 21day line. We had one test of it. Uh it's now broken below that line. But um talk to me about CVS if you were in this uh maybe a signal to take some profits ahead of earnings. Um, so what's your thoughts? >> Yeah, I mean, if you bought it off of the the breakout, it still seems pretty I like the reaction here, but you have time. You'll see what happens. If it falls more decisively below the 21day line or especially the 10 50-day 10E line, I mean, it could be that's where it bounces off of that could provide a buying opportunity. So, sometimes you watch this and depending how it goes, that 50-day line could provide a sell signal or a buy signal. Uh, again, along with Oscar, so this is this is a drugstore, but it's also a pharmacy benefit manager and it's also an HMO. This owns Etna. So it uh you know this is this is one of the other health insurer type leaders and uh you know it's on a weekly it it's sort of fallen back towards a tight pattern. Uh so uh you can imagine a bounce off of this area tight pattern 10-week line. There's possibilities of an earning of a of a buying opportunity. You know we'll see. >> All right. How about we look at a BWX Technologies Ed earnings there on August 3rd. uh this in a downtrend. It's below all the key moving averages. Uh but what's important with BWX? >> This was one of the more successful nuclear companies and just seeing if we're going to see real growth. There's just but that whole nuclear space seems to be uh down. It needs to do a lot. It needs to get above those moving averages again. Uh you know before before it looks good again. >> And how about Helmet Aerospace uh defense name? Uh it's holding at the 21day line. uh it attempted a breakout uh back here in June on June uh 17th. Hasn't really done much since then, but uh that could be good in this type of market environment, Ed. So, thoughts here and how Matt >> Yeah, this is one that may be better to buy off the 50-day line, though. That's no guarantee because it can live under the 50-day line for a few days. You can get shaken out, but this has a history of breaking out and then failing the breakout even as it trends higher. So, it's been hard to buy. If you owned it, held on to it for any length of time. It's been easy to hold, but it's hard to buy and hold it initially, especially if you bought it off the breakout. So, this is the leader. This has been one of the stronger performers. It's, you know, a lot of aerospace, Boeing, aerospace jets, these uh stuff. It actually does components or materials for gas turbines. So, there is a bit of an AI play in there. Uh strong performer. It's just been tricky tricky to get into. >> And how about we take a look at Caterpillar Ed earnings there on August 4th. Uh this one was looking pretty good. that it hit a high of 1073 and then it has sharply pulled back. It is now below the 50 and 21day lines. Um so maybe it can find some footing here around the 800 level >> and that's right around the the last base buy point too. You know you see that it's it's finding support there which is a place you'd find it but you round trip that really strong gain and this is an AI play. Okay. I mean it's oh it's construction but they do generators they and and just their equipment is probably used for a lot of these things too. needs to make a big recovery back above the 50-day line. So, this one probably like many many other AI stocks has some repair work. >> Has repair work. Uh how about Marcato Libre Ed? Uh this one was uh one on our radars a lot last year. Uh this year it's struggled quite a bit. Uh it's in consolidation. Looks like it's trying to get back above the 200 day line. Uh but what is interesting to you about Melly? I mean, it would be nice to see this get above the 200 day line. I don't know. Then aggressive value type traders might buy it. It's it's just in sort of a downtrend for a while. The profits they've really been cutting they've been spending on marketing or spending on things, maybe cutting prices on various ways uh to to fight off Amazon and some others and it's just been challenging. Uh can they turn it around? Can they really start growing again on the EPS front? Their their sales have been continuing to grow and they have payments. this is an e-commerce and payments giant. It's just that that has been a tough area and uh you know for this company and it really hasn't made a lot of progress uh in the last you know five years. You know I made a big run but then you look back and then it's sort of like hasn't really made a lot of progress since that time ultimately. So, uh, so that that one is again repair work, you know, is out there. >> And let's just go ahead and finish off with Marriott International due on August 3rd. Uh, this one is in a flat base with a 41098 buy point, Ed. Uh, needs to get above the 50-day line, though. >> Yeah. And get above the 50-day line in these short-term highs. Uh, but that could provide an early opportunity. Uh you know there's some travel plays have done well but the hotels not so much. I mean they've been okay and this is probably the better best looking one that I can think of. A lot of them are a little weaker. Uh that could provide an opportunity. It's just that uh you know and this one is probably one to buy better off the you can see the breakouts haven't worked. It's trended higher but the breakouts often haven't worked or have struggled. So, uh, the RS line on this longer term has not been, you know, that impressive. Uh, even though it's it's acted fine, but it's basically traded in line with the S&P over the last nine, you know, eight eight years or so. Uh, so, um, that would be the only issue there. >> All right, Ed. Well, that wraps it up for us today. Thank you so much for your insights. >> Thank you. >> And that's it for this edition of Earnings Cheat Sheet. If you want even more market analysis, be sure to tune in to Stock Market Today. That goes live after the closing bell. Thank you so much for watching. We'll see you right back here next week.