Stock Market

The market has been a mess over the last few days, and now more than ever, it’s got investors looking for the hot stocks for Monday.

Volatility is picking up as earnings continue to drive large moves in individual stocks. At the same time, larger broader-market swings are taking place as inflation continues to be an issue. Earlier this month, the CPI and PPI reports came in hotter than expected. Before that, the January jobs report came in much higher than expected.

On Friday morning, the PCE report also topped expectations, adding to the worries that inflation isn’t slowing down fast enough. That’s got investors thinking about increased rate hikes from the Federal Reserve, and that’s creating some violent swings in equities.

Let’s look at a few hot stocks for Monday.

Ticker Company Price
ZM Zoom Video $73.56
WDAY Workday $182.65
BRK-A Berkshire Hathaway $461,500.10
BRK-B Berkshire Hathaway $304.61

Zoom Video (ZM)

Zoom Video (NASDAQ:ZM) was probably the pandemic stock to watch from the Covid-19 outbreak. Its online video chat platform became a must-have for work-from-home employees and the stock promptly exploded as a result.

Unless investors have been living under a rock though, they also know these pandemic stocks have now found momentum going the other way — to the downside. After an 850% rally during Covid-19, ZM stock has promptly fallen almost 90% from its peak.

Now the company is scheduled to report earnings on Monday after the close. Despite beating earnings in each of its last two reports, Zoom Video stock has sold off after each event. In August, shares fell 16.5% in a single day, while they fell a much more mild 3.9% in November.

What can we expect this time around?

The Chart: Zoom Video stock is resting just above a key area on the chart, trying to hold the $70 to $72 area. On the upside, bulls want to see ZM reclaim its 10-day and 21-day moving averages, potentially opening the door up to the $85 area — which is a recent resistance zone and just shy of the 200-day moving average.

On the downside, a flush below $70 puts the mid-$60s in play.

Workday (WDAY)

Like Zoom Video, Workday (NASDAQ:WDAY) is scheduled to report earnings on Monday after the close. Unlike Zoom, the last two earnings reactions have been positive for Workday.

Many tech stocks have struggled over the past year, but have been roaring higher over the last few months. In the case of Workday, shares rallied 50% from the November low to this month’s high.

While shares did suffer a peak-to-trough decline of 58%, that was actually better than many other growth stocks.

The Chart: On the downside, bulls actually have a decent long setup if — and that’s a big “if” — the $175 to $177.50 area can hold as support. If that’s the case, Workday could be a buy-the-dip setup. On the flip side, a break of this area could put $160-ish in play.

On the upside, $190 to $192 is the first target, followed by $200.

Berkshire Hathaway (BRK-A, BRK-B)

Berkshire Hathaway (NYSE:BRK-A, NYSE:BRK-B) is like no other company out there. It’s a conglomerate made up of public and private companies and run by two of history’s best investors: Warren Buffett and Charlie Munger.

The company has amassed a market capitalization of almost $700 billion, has a massive position in Apple (NASDAQ:AAPL) and is able to close key deals most investors would never get a chance at getting. Lastly, it reports earnings on Saturday. Put simply, this is a very unique holding.

While investors will be interested to see the company’s operating results, they will be far more interested in what management has to say about the market, the economy and interest rates. Buffett & Co. carry a lot of weight when it comes to investors, so what they say will be important.

The Chart: Shares tried to gain traction over $320 and just couldn’t do so. Now they are clinging to $300 as support, with the 21-month and 200-day moving averages and the 38.2% retracement there to help as well. Plus, it’s been key support area over the last few months.

A break here could put $290 in play next, followed by the more significant level of $282 to $284. On the upside, bulls want to see shares clear $310 — and thus the 10-day and 21-day moving averages — and open the door back to $320-plus.

On the date of publication, Bret Kenwell did not have (either directly or indirectly) any positions in the securities mentioned in this article. The opinions expressed in this article are those of the writer, subject to the InvestorPlace.com Publishing Guidelines.

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