Get 40% Off
🤯 This Tech Portfolio is up 29% YTD! Join Now to Get April’s Top PicksGet The Picks – Just 99 USD

1 Stock To Buy, 1 To Dump When Markets Open: Nucor, Coinbase

Published 06/27/2021, 07:34 AM
Updated 09/02/2020, 02:05 AM

Stocks on Wall Street ended last week on a high note, with the S&P 500 closing at a new record amid easing worries about a sudden tapering of stimulus by the Federal Reserve.

 

SPX Daily

 

Between another batch of important economic data, mainly the latest monthly US employment report and the ISM manufacturing survey, the week ahead is expected to be a busy one on Wall Street.

Regardless of which direction the market goes, below we highlight one stock likely to be in demand and another which could see additional downside. 

Remember though, our timeframe is just for the upcoming week. 

Stock To Buy: Nucor

Negotiations on an infrastructure spending plan between White House officials and a bipartisan group of U.S. Senators will continue in Washington D.C. this week. That could result in more positive action for Nucor (NYSE:NUE), the largest American steel producer.

U.S. President, Joe Biden,announced Thursday that the White House had reached a tentative agreement on an infrastructure spending package with a group of 21 Senators, including 11 Republicans.

The plan, which includes substantial added investments to repair and improve the nation’s deteriorated roads, highways, and bridges, is valued at $1.2 trillion over eight years, of which $579 billion is new spending.

In a positive development, Biden over the weekend withdrew his threat to veto the bill unless a separate Democratic spending plan—one which is strongly opposed by the Republican party—also passes Congress.

“I intend to pursue the passage of that plan, which Democrats and Republicans agreed to on Thursday, with vigor,” Biden said in a statement on Saturday. “It would be good for the economy, good for our country, good for our people. I fully stand behind it without reservation or hesitation,” he added.

 

NUE Daily

 

Nucor manufactures steel and steel products, such as bars, beams, sheets, and plates, potentially making it one of the biggest beneficiaries from the expected boom in construction resulting from the new infrastructure bill.

NUE stock, which has gained roughly 82% year-to-date and 138% in the last 12 months, ended at $96.69 by close of trade on Friday. At current levels, the Charlotte, North Carolina-based steel products company has a market cap of $28.9 billion.

Nucor is scheduled to next report earnings on July 22. Consensus estimates call for EPS of $4.36 on record high revenue of $8.32 billion. If confirmed, that would represent year-over-year growth of more than 1,100% in earnings and 92% in sales, reflecting strong steel market fundamentals and a favorable demand environment.

Stock To Dump: Coinbase Global

Shares of recently IPO'd cryptocurrency exchange operator Coinbase Global (NASDAQ:COIN) are expected to suffer another volatile week as the correction in the crypto market continues.

Bitcoin sank below the key $30,000-level on Tuesday, at one point briefly erasing all its 2021 year-to-date gains, due to fears of an escalating crackdown in China after the country’s central bank announced new regulations and trading restrictions.

 

BTC/USD Daily

 

The world’s most expensive digital currency recovered to climb back above the $35,000 threshold by Friday night, before a Saturday selloff drove prices back down towards $30,000.

BTC—which peaked at around $65,000 in mid-April—last changed hands at $32,700 in early morning Sunday trading.

Several other popular cryptocurrencies such as Ethereum, Cardano, Litecoin, and Dogecoin, which can all be bought and sold on Coinbase, also experienced heightened volatility in weekend trade, resulting in the term “#CryptoCrash” trending on Twitter.

 

COIN Daily

 

Taking that into account, Coinbase shares, which made their blockbuster trading debut on Apr.14 following a direct-listing IPO at $250 per share, could fall further in the days ahead, as investors react to the violent swings in crypto prices.

After rallying to an all-time high of $428.93 in its first day of trade, COIN stock has since come under heavy selling pressure, losing nearly half its value in the last three months.

Coinbase shares closed Friday’s session at $224.54, earning the crypto exchange platform operator a valuation of $47.3 billion.

Latest comments

Coinbase 💰
I am really confused right now.
This didn't age well.
Really bad advise lol
Stop directing investors in wrong direction
hahjaahahahif you buy optionyou have to buy oppositeif Jeses say dump it will go up if he said buy dont touch it
-2% on your buy call, and +8% on your sell call. Great job bud.
Grateful for the comments here as i am betting this volatilty is good for COIN. That said i think many hear still dont understand the full picture, self included. Volatility does increase transactiion volume but it also affects network fees. I have noticed that my coinbase fee remains fairly constant regardless of traffic fees. In order for counbase to be competitive the must attach higher compensation to the network to ensure priority of processing. How will that affect their financials?Also are they doing any off network transactions between coinbase customers, effectively moving money within their own accounts similar to paypal?Overall i think this is a buying opp but lots to be proven.
People still don't understand that coin base makes money when crypto goes up and when it goes down.
also it's getting ready for a bull run this guy is about to be on the janitorial staff.
One company makes something of value that is used in the buildings people live in. The other is a gambling ponzi app. You decide.
Bad article. Coinbase should be dumped, but because of weak fundamentalist and not because Bitcoin being at a key support level which would be a reason to actually buy Coinbase.
Hey genius, gonna see Bitcoin (and obviously Coinbase) going up for the week... Wanna bet?
Not sure about Coinbase. "Violent swings" in crypto are not bad for coinbase as Coinbase is a trading platform. More trading, more fees.
BTC is going to have a green week. Futures expired Friday. Didn't phase the price one bit.
Yeah let me dump all of my coin shares at the low because of an opinion piece that has no substance backing it. Wait for esg compliance and institutions buying crypto.
Btc is not even the most expensive crypto, that title belongs to YFI
mt
Hi buddy who sold big weekly block on nue .. and its still all time high :)
Teach me how to earn money here
Increases volatility in cryptos leads to higher trading volumes and thus higher revenue for Coinbase.
yes short all coin
Coinbase will fall
Risk Disclosure: Trading in financial instruments and/or cryptocurrencies involves high risks including the risk of losing some, or all, of your investment amount, and may not be suitable for all investors. Prices of cryptocurrencies are extremely volatile and may be affected by external factors such as financial, regulatory or political events. Trading on margin increases the financial risks.
Before deciding to trade in financial instrument or cryptocurrencies you should be fully informed of the risks and costs associated with trading the financial markets, carefully consider your investment objectives, level of experience, and risk appetite, and seek professional advice where needed.
Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. The data and prices on the website are not necessarily provided by any market or exchange, but may be provided by market makers, and so prices may not be accurate and may differ from the actual price at any given market, meaning prices are indicative and not appropriate for trading purposes. Fusion Media and any provider of the data contained in this website will not accept liability for any loss or damage as a result of your trading, or your reliance on the information contained within this website.
It is prohibited to use, store, reproduce, display, modify, transmit or distribute the data contained in this website without the explicit prior written permission of Fusion Media and/or the data provider. All intellectual property rights are reserved by the providers and/or the exchange providing the data contained in this website.
Fusion Media may be compensated by the advertisers that appear on the website, based on your interaction with the advertisements or advertisers.
© 2007-2024 - Fusion Media Limited. All Rights Reserved.