Finding the right stocks in today’s market isn’t easy. With so many options, it’s tough to know which ones are worth your attention. But when you get it right, the payoff can be huge. That’s why we do the heavy lifting for you, sorting through the noise to bring you stocks that are set to move.
Each week, we dig into the data, look at market trends, and identify stocks with real potential. Our focus is on opportunities that aren’t just good for a quick win but have the strength to deliver ongoing growth.
This week, we’ve highlighted three stocks that stand out from the pack. Backed by solid analysis, these picks are positioned for a strong run in both the short and long term.
Kroger Co. (NYSE: KR) – Positioned for a Breakout
Kroger is quietly building momentum and is now on the verge of a significant technical breakout. After underperforming for much of 2024, Kroger shares are threatening to hit a new 52-week high, and the setup looks promising. The stock is forming a textbook cup-with-handle pattern, which is often a strong indicator of further upside once confirmed. The key level to watch here is $57.50 – if the stock breaks above this resistance line, it signals a fresh wave of buying interest that could propel prices higher.
The technicals look solid. Kroger’s RSI has been in a bullish range since July, and a long-term trendline connecting the lows from late 2023 supports the idea that the stock remains in a healthy uptrend. This chart pattern isn’t just showing up on the daily chart—when you zoom out to the weekly time frame, you see a much larger cup-with-handle pattern that dates back to 2022, reinforcing the potential for a sustained move higher.
With momentum building and key technical indicators aligning, Kroger looks like it’s ready for a breakout. This grocery giant is well-positioned to capitalize on any price strength, making it a compelling stock to watch closely for an entry point above $57.50.
Vertiv Holdings (VRT): Riding the AI Data Center Boom
Vertiv Holdings (VRT) is gaining serious momentum as the demand for data centers continues to surge, thanks to AI advancements. Vertiv specializes in providing liquid cooling systems, a critical component for data centers handling AI workloads. As AI data processing grows more intensive, cooling technology like this will become even more essential.
One of the key drivers for Vertiv’s growth is the increasing use of “hyperscale” data centers operated by giants like Amazon, Microsoft, and Google, as well as the smaller co-location market. These data centers require advanced cooling solutions to manage the heavy computational loads that AI applications demand. Vertiv’s liquid cooling systems are well-positioned to capture this growing market.
Recent earnings reports have been impressive. In the last three quarters, Vertiv reported EPS growth of 46%, 79%, and 100% quarter-over-quarter, respectively. The company has consistently beaten Wall Street expectations, with earnings surprises of 17%, 20%, and 5% during that time. This kind of consistent outperformance indicates strong execution and suggests further upside potential.
While the stock has run up recently, a pullback could present an opportunity for long-term investors to start building a position. A good strategy would be to begin buying in the $105 range and adding more if the stock dips to around $100, with room to increase the position on further strength if it breaks into new highs.
Vertiv has been capitalizing on the increasing demand for AI-related infrastructure, and its leadership in liquid cooling technology positions it for long-term success in this booming sector.
GE Vernova (GEV) A Clean Energy Leader with 30% Upside Potential
Since its spin-off from General Electric in April, GE Vernova has been on a remarkable run, with its stock soaring 95%. And according to industry analysts, this energy company is just getting started. One of the driving factors behind this bullish outlook is the increasing global demand for power-generating assets. As the world continues to shift toward electrification and decarbonization, GE Vernova is in a prime position to benefit.
The company’s focus on electrification, grid modernization, and renewable energy sources like wind power sets it apart. Currently, wind generates about 7% of the world’s electricity, but that figure is expected to grow to 25% by 2040. With its advanced wind turbine technology, GE Vernova is poised to capture a significant share of this growth.
Another key element of GE Vernova’s growth story is its gas power business. While renewable energy is expanding, traditional gas-powered infrastructure is still essential to meeting global electricity demands. GE Vernova is ramping up its gas turbine manufacturing, with plans to increase production capacity from 55 to 80 units per year by 2026. This not only boosts revenue from new sales but also creates recurring income from long-term service contracts.
Deutsche Bank has initiated coverage of GE Vernova with a “buy” rating and a price target of $354, which suggests nearly 30% upside from current levels. The combination of revenue growth, margin expansion, and the broader push toward electrification makes GE Vernova a stock to watch. For investors looking to gain exposure to the clean energy revolution, this could be a strong long-term play.