Three Q1 Standout Stocks on My Rainy Day Shopping List
The next market pullback could set up opportunities to buy or add to these healthcare and self-defense-related plays.
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Markets rallied on Friday on a better-than-expected May jobs report. This pushed the yield on the 10-Year Treasury up 12-basis points to close just above the 4.5% threshold, despite downward revisions to the March and April jobs numbers. I continue to question whether equities can remain this resilient with this level of interest rates.
If the federal government had to finance its over $36 trillion of debt at the current 10-Year Treasury yield, it would cost more than $1.6 trillion annually to service the debt. Higher interest rates continue to be a tremendous headwind to the commercial real estate sector where more office space will be demolished and converted than built this year, for the first time in at least a quarter century. Housing remains moribund and average rents fell in May for the majority of metro areas across the U.S.
At some point interest rates, tariffs or a variety of other risks will eventually cause the market to at least hiccup. When that happens, I have my shopping list prepared to deploy dry powder into the market, using covered-call orders. Here are a few standouts from the first-quarter earnings season on that list.
Let’s start with Byrna Technologies BYRN. This manufacturer of non-lethal and "less lethal" weaponry and ammunition saw its stock jump a bit over 15% last week after the company posted its first-quarter numbers. It was a more than solid quarter with revenues rising nearly 57% on a year-over-year basis. And that was during the first quarter, which historically has been the company’s slowest quarter of the year.
The company is seeing solid demand in its new retail stores and is working with Sportsman’s Warehouse, and they have a dozen store-within-a-store concepts ramping up. Management also just increased its manufacturing capacity by a third. Management has done a solid job with domestic sourcing and components for its flagship product are more than 90% made in the U.S., insulating the company from any impacts from tariffs. In short, Byrna is operating on all cylinders right now.
Harmony Biosciences Holdings HRMY, which I highlighted this weekend, was another name that easily beat top and bottom-line expectations with its first-quarter numbers in May. I am happy to add to my exposure to this biopharma name on any significant pullback in the overall market.
Mirum Pharmaceuticals MIRM is another biopharma name that came out of the shoot fast in 2025. First quarter results beat bottom line estimates and posted far faster revenue growth than expectations. Sales grew over 60% on a year-over-year basis to just over $111 million, beating the consensus by some $13 million. In addition, management boosted guidance for the year based on market traction and some recent regulatory approvals.
The company’s flagship Livmarli has billion-dollar peak sales potential. Another candidate in mid-stage development for Fragile X Syndrome has similar potential as the rare disease currently has no Food and Drug Administration-approved treatments. Finally, the company’s cash balance grew slightly in the quarter as the company is rapidly approaching profitability and stands at nearly $300 million. I would love for the stock to pull back to the low $40s, so I could add to this fast growing and promising name at slightly lower entry points.
At the time of publication, Jensen was long BYRN, HRMY and MIRM.
