In a market analysis focused on the upcoming earnings reports, insider Jay Wood from the New York Stock Exchange highlighted potential opportunities in Pfizer and two other stocks that have recently underperformed. As the markets experience a quiet period between earnings seasons, Wood, the Chief Market Strategist at Freedom Capital Markets, suggested that investors should closely monitor Pfizer, which he believes may continue its upward momentum as the year draws to a close.
Wood remarked on Pfizer’s recent turnaround and the positive sentiment surrounding healthcare and pharmaceutical stocks, particularly following a significant announcement last week that is helping to drive interest. “Pfizer’s recent rally of 15.2% has positioned it well, making it more than 1.5% up for the year,” he noted. The rally was catalyzed by a deal between Pfizer and the Trump administration, granting the company a three-year exemption from tariffs in exchange for commitments to enhance domestic manufacturing and reduce drug prices for Medicaid patients.
Looking ahead, Wood indicated that investors should watch the $29 mark for Pfizer’s stock; breaking this level could signal a breakout from a neutral base, with potential future gains reaching up to $35 in the upcoming six to eight weeks.
In addition to Pfizer, Wood also flagged Delta Air Lines and PepsiCo as stocks to watch, especially with their earnings reports expected on Thursday morning. He pointed out that Delta has struggled this year, currently down 3% despite performing well in the previous three quarters after earnings calls. He emphasized the importance of Delta’s guidance and how it could help the stock regain positive momentum for the year if it reacts favorably.
PepsiCo, on the other hand, has seen a decline of over 7% this year. Wood believes that if the beverage giant can exceed a critical resistance level of $146 in its forthcoming report, it may signal a potential recovery path for the stock, which has recently been trading around $140.
In broader market observations, Wood noted that traders appear to be downplaying concerns surrounding a U.S. government shutdown, with the S&P 500 looking to consolidate its gains following a string of record high closes. This week will also see key economic data released, including the Federal Reserve meeting minutes and a consumer sentiment report scheduled for release on Friday, which could provide insights into the current consumer landscape.
Additionally, market shifts were noted, including OpenAI’s partnership with Advanced Micro Devices, giving OpenAI a potential 10% equity stake in the chipmaker, and Fifth Third Bancorp’s notable acquisition of Comerica for $10.9 billion, which Wood described as a positive catalyst for market conditions moving forward.
