We're Locking in Big Gains on 2 Holdings and Buying More of Another on Weakness
At the same time, we are downgrading ratings on these two Pro Portfolio highflyers.
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| Symbol | Transaction Type | # Shares Traded | Recent Price $ | Shares Owned After Trade | % Portfolio |
|---|---|---|---|---|---|
AXON | Buy | 47 | 736 | 215 | 3.0 |
NVDA | Sell | 130 | 163 | 1,255 | 3.9 |
URI | Sell | 35 | 819.50 | 235 | 3.7 |
After you receive this Alert, we will make the following trades:
-- Buy 47 shares of Axon Enterprise AXON at or near $736. Following the trade, AXON shares will account for roughly 3.0% of the Pro Portfolio.
-- Sell 130 shares of Nvidia NVDA at or near $163. Following the trade, NVDA shares will account for roughly 3.9% of the Pro Portfolio.
-- Sell 35 shares of United Rentals URI at or near $819.50. Following the trade, URI shares will account for roughly 3.7% of the Pro Portfolio.
We are following up on our comments from earlier this morning, taking advantage of yesterday’s pullback in Axon shares, while also prudently locking in some gains in shares of United Rentals and Nvidia. Both NVDA and URI have been strong performers for the Pro Portfolio and are poised to benefit from the continued buildout of AI and data-center capacity. That keeps us bullish on the names, but as we’ve discussed with you before, one of the biggest mistakes investors make is falling in love with their stocks, foregoing investor discipline.
When we look at the outsized moves in both NVDA and URI shares in their respective charts below, we also see their respective relative strength index (RSI) levels deep in overbought territory. Combined with the market conditions we mentioned earlier today — the S&P 500 overbought based on its relative strength index level, the Volatility Index (VIX) flashing market complacency with its reading below 16, and the Fear & Greed Index flashing “Extreme Greed” — the prudent move for us is to take another slice of very, very profitable gains in these two positions off the table.
The register ringing we are doing will fund our AXON buy and add a wee bit to our cash position. We will continue to look for smart opportunities to grow the Pro Portfolio’s exposure to TJX Cos. TJX, Waste Management WM, Palantir PLTR, and SuRo Capital SSSS. While it would be grand if opportunities for all four emerged, the reality is that may not be the case, at least in the near term.
As we make these moves, we will also downgrade URI to a Two rating and look to revisit our price target as big tech and other construction-related companies, such as Caterpillar CAT, Tudor Perini TPC, and Jacobs Solutions J, update their second-half 2025 outlooks.
The overbought nature of NVDA is also leading us to downgrade the shares to a Two rating from a One. Granted, there is just enough upside to our $185 target to keep a One rating intact, but that, in our view, is negated by their overbought status. If NVDA shares pulled back to closer to the $150-$155 range, that would give us reason to revisit today’s decision.
(Please note that we are looking to execute these trades at or near the share price mentioned above. Once the trade is completed, subscribers can see the trade's executed price here. Be sure to toggle the “+” next to the position’s ticker to sort Purchase and Date data.)
At the time of publication, TheStreet Pro Portfolio was long AXON, NVDA, URI, TJX, WM, PLTR and SSSS.
