|Bid||102.16 x 1000|
|Ask||103.02 x 1200|
|Day's Range||93.17 - 112.62|
|52 Week Range||2.53 - 112.62|
|Beta (5Y Monthly)||4.43|
|PE Ratio (TTM)||N/A|
|Earnings Date||Jul 30, 2020|
|Forward Dividend & Yield||N/A (N/A)|
|1y Target Est||103.00|
Stamps.com, Overstock.com, eXp World Holdings, Arcturus Therapeutics Holdings, and Zillow Group were among Friday's top gainers.
Many investors are arguing that the market is getting frothy. But remember, the market represents more than just a handful of stocks. With that in mind, I began looking at price charts and fundamentals of companies. I found three overbought stocks that look well-positioned for more to come.Led by the Nasdaq Composite, the month of August become an even greater spectacle. The first week of the new month has produced a handful of record highs, a gain north of 3% entering Friday's session and a dazzling 22% year-to-date return for the market bellwether.The price action also begs the question, have risk assets come too far, too fast?InvestorPlace - Stock Market News, Stock Advice & Trading TipsIf investors look at the market's typical and increasingly influential mega-capitalization suspects such as Amazon (NASDAQ:AMZN), Microsoft (NASDAQ:MSFT) or Alphabet (NASDAQ:GOOG, NASDAQ:GOOGL), there's cause for alarm. But it may be the world's largest company, Apple (NASDAQ:AAPL), that is the most troubling sign of an overbought market.The tech giant has gained nearly 17% in August and roughly 50% in 2020. It makes the Nasdaq's own performance look quaint by comparison. That's not the worst of it though. AAPL stock also sports an extremely hard to defend valuation, and a similarly unapproachable price chart. It also puts a once unthinkable trillion-dollar valuation in the rear-view mirror as it trades a whisker away from $2 trillion. * 7 Travel Stocks to Buy Banking On Pent-Up Demand Yet as bad as it sounds, there are other stocks which continue to support the idea of a friendly trend. Let's look at three of these other market leaders and why, off and on the price chart, each looks like an overbought stock to buy: * Pan American Silver (NASDAQ:PAAS) * Square (NYSE:SQ) * Overstock (NASDAQ:OSTK) Overbought Stocks to Buy: Pan American Silver (PAAS)Source: Chart by TradingView The first of my overbought stocks to buy is Pan American Silver. The metals producer is up about 250% since hitting its corrective bottom alongside the broader market. Its year-to-date return of 55% is nothing to sneeze at either.The bullishness in the miner looks even more determined when considering PAAS' riskier stochastics and the positioning of shares outside the monthly Bollinger Band. But I'm looking for overbought conditions to beget more of the same.Technically, shares of PAAS are consolidating around its prior all-time high set back in 2008. It's a second challenge at moving into higher ground following an outright failure back in late 2011. In my estimation, it sets up an attractive second-attempt base breakout. What's more, this overbought stock to buy is also a lower-correlation mid-cap which makes it a solid candidate for portfolio diversification. Square (SQ)Source: Chart by TradingView The next of my overbought stocks to buy is Square. The mobile payments champ has been knocking it out of the park off and on the price chart. Despite early warnings the novel coronavirus would hurt Square given its exposure to small businesses, it hasn't played out that way.This week's standout quarterly results and post-earnings bid to record highs are a testament to its strength.On the price chart, shares have spiked 14% this week. That puts Square's year-to-date gains at 130%. But this large-cap stock looks poised to become much bigger.Technically, this market leader has just broken out of a smaller weekly triangle formed on top of a massive corrective base nearly two years in duration. The bottom line is that it is bullish. And given the size and time spent consolidating, the takeaway on this overbought stock to buy is that Square shares could see $200 by early 2021. Overbought Stocks to Buy: Overstock (OSTK)Source: Chart by TradingView The last of my overbought stocks to buy is Overstock. It may be the most contentious name of the lot. Shares have gained an eye-popping 1,440% in 2020 and a jaw-dropping 4,300% since its March bottom. The company's founder Patrick Byrne, is also a notorious and controversial figure who single-handedly has taken investors through the proverbial ringer over the years.But don't think this year's standout performance is going to implode on itself. The best may be yet ahead for OSTK investors.Not only is Mr. Byrne out of his role as CEO, but Overstock's online retail business is booming. Record sales of $782.5 million were made even more attractive as losses from the year ago period were completely erased and replaced by profits of 84 cents per share.To be sure, Amazon doesn't need to move over anytime soon, but Overstock's report should have competitor Wayfair's (NYSE:W) attention. What's more, this overbought stock to buy has also been successfully branching out into the cryptocurrency space with its tZero platform. Need I say more? With a market cap of just over $4 billion, I believe the chart.Chris Tyler is a former floor-based, derivatives market maker on the American and Pacific exchanges. Investment accounts under management do not own any securities mentioned in this article. The information offered is based on his professional experience but strictly intended for educational purposes only. Any use of this information is 100% the responsibility of the individual. For additional market insights and related musings, follow Chris on Twitter @Options_CAT and StockTwits. More From InvestorPlace * Why Everyone Is Investing in 5G All WRONG * America's 1 Stock Picker Reveals His Next 1,000% Winner * Revolutionary Tech Behind 5G Rollout Is Being Pioneered By This 1 Company * Radical New Battery Could Dismantle Oil Markets The post 3 Overbought Stocks to Buy in Today's Frothy Market appeared first on InvestorPlace.
It's difficult to imagine a better earnings report than the one Etsy (NASDAQ:ETSY) delivered on Wednesday. Yet investors shrugged: ETSY stock declined 3.6% in regular trading Thursday.Source: quietbits / Shutterstock.com Admittedly, Etsy had more than quadrupled from March lows heading into the report. A "sell the news" reaction is to be expected. And we've seen similar trading this week in other growth names.As I detailed this week, Activision Blizzard (NASDAQ:ATVI) also saw a blowout quarter greeted with a shrug. On Thursday, high-flyers Alteryx (NYSE:AYX) and Datadog (NASDAQ:DDOG) both fell in after-hours trading despite crushing Street expectations.InvestorPlace - Stock Market News, Stock Advice & Trading TipsIn that context, the trading in ETSY stock isn't that surprising. And it also isn't anything to worry about. Etsy has a hugely attractive long-term growth story, and the Q2 results only confirm that story. Thursday's trading will soon be forgotten, as it should be. And from there, Etsy should roar to new highs. Etsy Crushes ItIt certainly wasn't an overreaction to headline numbers that drove Thursday's selloff. Etsy's results were jaw-dropping.Revenue increased 137% year-over-year. Incredibly, that was 54 percentage points better than Wall Street predicted. It bears repeating: 54 percentage points. I'm hard-pressed to remember a beat of that size in the last 20 years, let alone this earnings season.Earnings per share, based on Generally Accepted Accounting Principles, nearly doubled consensus, coming at 75 cents against the Street's 39 cents. The figure rose more than 400% year-over-year.To be sure, the novel coronavirus pandemic likely provided a boost. Etsy has a number of sellers offering handmade masks. "Stay at home" orders no doubt created new customers and probably new sellers as well. And recent results from the likes of Overstock (NASDAQ:OSTK) and Amazon (NASDAQ:AMZN) highlight an accelerated shift to online shopping.If you pay attention to my investment newsletter, Matt McCall's Investment Opportunities, you'll know that there are other stocks out there which don't need a Covid-19 boost to shine. These companies are developing revolutionary technologies that will be used by millions -- if not billions -- on a global scale. But that's not to say that ETSY stock isn't an all star in its own right.Even considering the pandemic benefits, the quarter impressed. After all, analysts were well aware of the potential pandemic boost, and Etsy still crushed their expectations. And as Chief Financial Officer Rachel Glaser told Barron's, there was a lot more than masks at play in the quarter. * 7 Travel Stocks to Buy Banking On Pent-Up Demand "Everyone was at the top of their game," Glaser said. She went on to note that the top six categories (none of which are masks) posted strong growth. Etsy is even competing with Overstock and Wayfair (NYSE:W): home and living sales increased 128% year-over-year.Investors couldn't have asked for anything more from Q2. And the quarter will have an impact that lasts for some time. A Foundation for GrowthThere are two more key metrics from Q2 that investors should consider. In the quarter, Etsy added 18.7 million new buyers and reactivated buyers.A skeptic can point to the results and argue that the pandemic won't exist forever, and thus Etsy's growth will come back to Earth. But when a company adds and/or recaptures almost 19 million customers in three months, that alone sets the table for higher sales going forward.The second metric relates to international growth. Gross merchandise sales (i.e., the amount of product sold by Etsy sellers) more than doubled internationally as well. Overseas markets are a key pillar of the long-term case for ETSY stock.On top of that, it's worth noting a passage from Barron's informed by its interview with CFO Glaser: "[T]he company is investing in data analytics and machine learning to help personalize their recommendations and tailor communications in a bid to increase customer loyalty."The benefits of Big Data only increase with more data. 19 million new and reactivated users provide a lot of data. Etsy can better tailor its emails, as Glaser noted, and even its website to drive more sales.The path to long-term growth is wide-open after Q2. Is ETSY Stock Too Expensive?Skeptics might retort that even this quarter, and this bull case, are more than priced in. Again, Etsy has rallied 336% off March lows. It trades at 90x trailing earnings.But here, too, Q2 matters. Earnings quintupled year-over-year. On a run-rate basis, Etsy easily could generate more than $3 in EPS annually. Start modeling in those kinds of profits and the stock doesn't look expensive. Given the long-term opportunity, it looks cheap.Why did the market sell ETSY stock on Thursday, then? It's hard to see with certainty. From here, fatigue looks like the most likely answer. Some investors who were up big may have taken profits no matter the report.Whatever the cause, I don't think this selloff will last very long at all. Coming out of earnings, Etsy looks like one of the best growth stories in e-commerce. That should be more than enough for the rally to resume.While it's not in the same space as Etsy, I want to quickly bring your attention to another play that's bound for long-term success that's perhaps even more impressive.The company is set to lead the tech world by inducting a technological revolution that will forever influence mobile communication on a global scale.As InvestorPlace's chief technology analyst, I've worked feverishly with our veteran research team to identify the best stocks to buy. Over the years, InvestorPlace's research has helped millions get ahead of the curve. Our subscribers have enjoyed massive gains in tech titans like Apple (19,954% gain) and Intel (12,547% gain) … just to name a few.Now, I'm ready to share with you the next big development in mobile technology. The company has already inked deals with Apple, Samsung and LG. And it stands to forever change the way we think about our smartphones and mobile technology.Matthew McCall left Wall Street to actually help investors -- by getting them into the world's biggest, most revolutionary trends BEFORE anyone else. Click here to see what Matt has up his sleeve now. As of this writing, Matt did not hold a position in any of the aforementioned securities. More From InvestorPlace * Why Everyone Is Investing in 5G All WRONG * America's 1 Stock Picker Reveals His Next 1,000% Winner * Revolutionary Tech Behind 5G Rollout Is Being Pioneered By This 1 Company * Radical New Battery Could Dismantle Oil Markets The post Why Etsy Stock Remains a Long-Term Powerhouse appeared first on InvestorPlace.