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AppLovin stock closed Tuesday at more than 250% above its 200-day moving average.
Courtesy AppLovin
When the S&P 500 jumps by more than 20% in back-to-back years, perhaps it is inevitable that parts of the market will feel frothy.
In a research note published Wednesday, 22V Research’s head of technical strategy, John Roque, shared 30 names that are currently trading at more than 100% above their 200-day moving averages. Stocks priced at that level are often “exhibiting bubble-like tendencies,” he said.
“It’s not that these stocks can’t go up again, because they can,” Roque wrote. “Anything can happen…but after such an advance it is usually
the case to see the item go through a deep and sharp setback.”
Mobile tech company AppLovin topped the list. Its shares have jumped 856% this year. The stock closed Tuesday at more than 250% above its 200-day moving average.
Another name that is soaring is MicroStrategy , the business-intelligence company best known for its huge stockpile of Bitcoin. The stock has risen 47% since the Nov. 5 election on the expectation that President-elect Donald Trump will slash crypto regulation. It is now trading 120% above its 200-day moving average, according to Roque.
Here are 28 other stocks that are trading at more than 100% above their 200-day moving averages.
Technology
Potential bubble stocks in the tech sector include data-processing and computing companies Innodata , IonQ , Hut 8 Corp , D-Wave Quantum , and Rigetti , as well as software players Sezzle and Porch Group . Also on the list are Credo Technology , which provides data infrastructure services, the chip maker Applied Optoelectronics , and Ubiquiti , which produces telecom equipment.
Health & Pharma
In pharmaceutical and biotechnology, Roque listed Omeros , Scholar Rock Holding , Poseida Therapeutics , Rigel Pharmaceuticals , and ChromaDex , as well as medical nursing services company GeneDx Holding .
Financials
The list in the finance sector includes digital banking player Dave Inc. , AI lending platform Upstart , the insurer Lemonade, and Willis Lease Finance ,
an aircraft lessor.Industrials & Manufacturing
Names in industry include the aerospace and defense companies Rocket Lab , Intuitive Machines , and Redwire Corp ; the manufacturers of electrical products Bloom Energy , NuScale Power , and Solaris Energy Infrastructure ; and the makers of consumer products Honest , and Peloton Interactive .
Write to George Glover at george.glover@dowjones.com and Elsa Ohlen at elsa.ohlen@barrons.com
