After a slow start to the year, US stocks rose to new highs following the inauguration of President Trump. By Wednesday’s close, the SPDR S&P 500 ETF Trust was higher New York Stock Exchange: Spy It rose more than 4% over the week, bringing its year-to-date return to 3.47%. The rally was marked by unusually strong market breadth, with stocks from various sectors, including retail, telecommunications services and energy, showing positive momentum.
The current rally looks more balanced than in previous years when the so-called Great Seven largely controlled market performance and breadth.
So, let’s take a look at three stocks from three different sectors that are on the verge of a breakout.
At Holding AG: going beyond its sector
today
- 52 week range
- $26.03
▼
$60.67
- P/E ratio
- 138.88
- Price target
- $59.73
Despite the poor performance of the retail sector, as evidenced by the SPDR Retail ETF New York Stock Exchange: XRT A decrease of 0.55% since the beginning of the year for Holding AG New York Stock Exchange: Honor It has demonstrated impressive relative strength. The company, which designs and sells performance running shoes and apparel globally, outperformed its sector with a nearly 7% rise over the year through Wednesday’s close.
After pulling back toward the high 50-day simple moving average (SMA) earlier this month, On Hold broke to all-time highs on Tuesday. Although it pulled back slightly on Wednesday, the stock’s ability to reclaim support and maintain above $60 could indicate further upside. The $60 level is quickly emerging as a crucial inflection point, and traders should pay attention to it going forward.
Analysts are bullish on the stock, with a consensus rating of Moderate Buy and a price target predicting the potential for additional upside. Morgan Stanley recently boosted its price target on the stock from $62 to $65, citing its strong gross margins and potential for accelerated sales growth. With the retail sector underperforming, On Holding’s resilience and upward trajectory makes it an outstanding name.
Reddit Inc: All-time highs and continued momentum
I replied today
- 52 week range
- $37.35
▼
$191.00
- Price target
- $158.20
reddit companyNew York Stock Exchange: RDTknown for its digital communities, such as the infamous WallStreetBets, hit all-time highs this week. After consolidating above the previous resistance at $160, Reddit has turned this level into strong support over the past two months. On Tuesday, the stock rose above $180, confirming a breakout to new highs.
Technically, holding $180 from now on as support will be crucial for Reddit’s bullish momentum to continue. However, the stock’s high valuation, with a forward P/E ratio of 222, may suggest some caution. Despite this, sentiment remains upbeat, with analysts assigning a moderate buy rating. Of the 21 analysts, most maintain a positive outlook, although the consensus price target is about 14% lower than Wednesday’s closing price.
Traders should also keep an eye on Reddit’s upcoming Q4 earnings report, due on February 12. This event could be an important catalyst, potentially supporting or disrupting the stock’s current upward trajectory.
Broadcom Inc: Positioned for an upward breakout
Broadcom today
- 52 week range
- $117.43
▼
$251.88
- Dividend yield
- 0.99%
- P/E ratio
- 193.92
- Price target
- $225.83
Semiconductor giant Broadcom Inc. Nasdaq:AFGOa technology company known for its global presence in the design and development of semiconductor software and infrastructure solutions, is currently experiencing significant bullish consolidation near all-time highs. This movement coincides with the announcement by the Trump administration and technology giants such as Oracle, Microsoft, and OpenAI of the formation of a new company called Stargate. This project aims to strengthen the artificial intelligence infrastructure in the United States with an initial investment of $100 billion, with plans to increase this amount to $500 billion in the coming years.
Following this announcement, the semiconductor ETF announced Nasdaq: Smh Stocks broke out of a prolonged consolidation phase, while several semiconductor stocks saw significant upward momentum on Wednesday. AVGO, which previously took off after stellar earnings in December, has been consolidating near its peak in a bullish pattern.
If AVGO breaks above the short-term resistance level at $247, it could signal the start of another major uptrend.
AVGO carries a Moderate Buy rating, reflecting the stock sentiment mentioned above. Recently, analysts from Barclays and Mizuho also raised their price targets for the stock, reflecting optimism about its future performance.
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