Hello and welcome to Trading Growth and Value Stocks. My name is James Boyd. We welcome all of you here today. Just real quick, we've got S. Darrow, Sandy. We also have Jim, James L., AP514, and many others. Welcome to all. In this class, when we talk about trading growth and also value, we can also look at income. And I want to bring up an example or two in that space today. I know last week we brought up a real estate example, Well, and also SPG. I want to kind of take a quick look at maybe one or two staple stocks. So I will include income here today. Now, today we'll focus really more on the growth and value, though, mainly.
And I want to talk really about some stocks that have some increasing revenue, earnings per share, but also some ROE that is expanding or increasing. So we'll talk about that here today. Now, just real quick as we get started, remember the information is provided for informational purposes only. And also when we talk about examples, they are just that-Schwab does not recommend the use of technical analysis as a sole means of research. That's a way to see it, a way to plot the chart. Right. But it's not telling you everything. OK. And so we want to have a class like this where we talk about fundamental analysis. Friday afternoon on Market Movers, we talk about some macro analysis like CPI, PPI, things like that, that can move the market. And we saw that today.
OK, so there's other things besides technical analysis. And I invite you as you get more and more education to broaden that funnel that actually that way you can kind of see how other investors might see it in not just straight on, but more 3D, if you will. Now, remember, when we talk about examples, they will be in the paper money account. All investing involves risk. And also with that, our focus here today, I want to take a look at just real quick where the markets end the day. I want to also talk about the market in terms of not just a daily chart, but a weekly chart. I think sometimes we can overanalyze what's going on in the market. What's happening on a daily chart and not really pay attention to what's happening on the weekly chart and what is more important.
We'll talk about that and then also talk about I want to kind of bring up a couple of Dow stocks that are standing out. They've underperformed and they're starting to kind of get a decent bounce relative to some other stocks in the Dow space. I want to go back to those. And then with that, I'm going to talk about two companies that have rebounded, I should say, went from being negative. To being positive in terms of earnings per share. Some of you might look at those as far as maybe a stock in or derivative example. We'll talk about that in terms of a stock example. And then I'm going to kind of talk about some companies that are more tried and true. They have proven business models. They're doing a lot of CapEx.
And we're going to look and see if they can't start to get really a magnification of their results by looking at ROE. Now, let's go ahead and hop right in just real quick. What I want to do is let me just bring a chart up for just a moment. And I'm going to start with just real quick. So let me just do something real quick. Let me hop right in. Now, first off, I want to make sure as I pull something up, if we take a look at something, if you don't know, let me kind of just send this to you just real quick. Okay. First off, if you don't know that you can go to just YouTube. com, type in Trader Talks, Schwab Coaching Webcast, or just Trader Talks, you'll start to actually see in this case, we have a page there.
And on that page, what you're now going to notice is you can subscribe. When you go to this page, you're also going to recognize, let me send this link to you before we actually pull this toss up. If we take a look at this, I also want you to really notice here that we also have a page for this class. And on this class right here, we talk about turnaround stocks. We talk about turnaround stocks, equity tailwinds, okay? We talk about investing in businesses that are traded, companies with unique advantages. Think of this like your favorite show, okay? It's like your favorite show. And with this, bring that back, you can actually go watch the previous episodes. So I sent that in the chat right there. Make sure that you have that, okay?
Just want to be clear on that. Now, I'll show you some other things in just a moment, but let's start there. So first off, bring up good old SPX. And if we take a look at the SPX, and then we saw the CPI data today come in hotter than expected. I don't think anyone is surprised. If you went to the local grocery store, you would know that. What has come down? Name it. Name one thing that you know that's really come down in price. It'd be hard to think of it, okay? A lot of things just holding pretty steady, maybe a little higher. The S&P gapped down here today. We sold off intraday, and then we rallied back. Guys and gals, can you tell me? Where are we finished?
Did we close in the middle? Did we close near the low? Did we close up near the high? Where did we close? Now, if we were to look at this price pattern that we actually see on the chart, it's kind of more like a symmetrical triangle. What I mean by over annualizing, okay, the chart, is if we're not breaking our resistance, we're not breaking down below support, we're still getting more neutral price action. If we go to the three-year weekly chart and we zoom in on this, what type of price pattern do you see now? I'm just going to leave it there. Now, if we also kind of want to filter out some of the noise, which is helpful when you're in a sideways range, if we went to Hakanashi candles, okay, you're going to kind of see that if we looked at the higher lows.
Now, how would we define higher lows, okay? Well, we define higher lows by just circling the red and green candle side by side. We take the red and green candle side by side, red and green candle side by side, red and green candle side by side. The market is still making higher lows, okay? Now, you take a look at this, the last one week, two week, three week, four week, you've been very neutral. Now, this kind of brings up the point why we know that trends, they're not just upward trending, okay? You can, for example, get some times where the trend goes sideways. This is why some investors like dividend paying stocks, they might like maybe strategies where there's benefit from maybe time, okay, which, you know, you probably go with that.
And so, but in terms of this class, you might be thinking about maybe some direction, sure, but maybe dividends, okay? So, I'll talk about one or two stocks in that space. Now, when you look at the chart, I want to bring up just real quick is when you look at the NASDAQ itself. If you zoom in and look at the NASDAQ itself on the weekly chart, okay, same thing, the higher lows are still forming, okay? They're still making this. The higher low, which we're still carving out this week, is higher than this one. And that one is higher than that one, okay? So, the easiest way to really see higher lows is really just look at the red and green candle. Now, why the red and green candle?
Well, the red candle is where you stop going down, and the green candle is where you start going up. Red candle where you stop going down, green candle start going up. Red candle stop going down, green candle start going up. Red candle stop going down, green candle start going up. Who created that? Me, okay? I was like, people can't see the higher low. Let's simplify this, okay? So, what you'll notice at the end of every bottom or a higher low, there's a red candle and a green candle. And if you just kind of mark them, okay, and I like to mark them right at the open of the green candle, these become now the markers. So, I think the biggest thing is here is be careful if the market goes down to 300 points that you're thinking the trend has changed.
You got to remember, you got an index here at 21,000. So, I mean, what's 200 points? 200 points is not even 1%. Remember, think about it not in points per se. I'm not saying that's not important. Think about it in terms of percent. More, also with that, equally important, think about levels. And then lastly, think about the number of points. Because a lot of people get confused when they see the high number of points. That that really equates to trend change. So, a lot of investors focus on percentage movement, yes. Second with that would be watching the levels. If the price swings around but the levels don't change, then it's really kind of a non-factor, okay? And then third, watching how many points. That's the least important, okay?
Now, let's kind of go over this. Are there any questions with that? All right. Now, I just want to kind of just now, okay, so we got a couple stocks. So, we're going to get into those. Now, what I want to do is I want to kind of just take a quick look at, now, by the way, I will say this one comment, okay? When you talk about what happened with the CPI number this morning, the Japanese yen did not confirm fear, okay? It actually tanked, which isn't typically viewed as a bullish equity sign. We've talked about it for weeks. I posted it on X. And so, there wasn't, that was not confirming fear here, okay? So, I just want to kind of make sure, feel free to follow me on X, and I posted that as we saw that.
Now, I want to go to an example for just a moment, okay? And I want to start with a stock. And the example that we're going to look at to begin with is PG. Now, why are we going to start here? Well, what are the sectors that it's actually done? Fairly decent, at least trying to come back, is IXR, okay? So, I hope that when you watch these classes, I hope you become really, really good at doing top-down analysis, looking at the market, looking at the sectors, and also kind of really seeing with that, when we look at the sectors, which ones are really showing the relative strength. Now, if I pulled up this list, and you can see relative strength a couple different ways. Number one, you can just pull up the weak percent.
And if you pull up the weak percent, you could actually say which sector is the strongest. You don't need a PhD in technical analysis to do that. You just click on the weak percent. It's real, excuse me, it staples at the top. And when you look at this, it's in trend three. And when you look at the relative strength there, it's just kind of more confirming, I mean, clearly, if it's the highest percent for the week, and maybe perhaps even the month or up there. Okay. That's not a surprise to see the RS also confirming that. Okay. Now, what I want to do is I want to pull up the PG example. Okay. Now, if we take a look at this, I want to zoom in.
I want to kind of just show you some different stocks. Now, in this example, when you look at PG, what you're now going to notice is if I were to ask you a question like resistance, where do you see the resistance? Again, I want you to imagine you had a ruler in your hand, a level, if you will. And I want you to imagine, like, where's the stock try to get up above? And not been able to get above that level? Well, as you're kind of telling me that answer, I'm going to kind of draw the bottom. In the last maybe two weeks, four weeks, has there been like a horizontal plateau of support? Well, one area has been about 166. Okay.
And if I now look, kind of see the comments, like, where do we see some levels of resistance, we might kind of say, look, maybe right around this area, right around about 169. And if you go back, we're kind of trying to make, if you look at this, a drop down in price, run back up, pull back. Run back up in price, pull back. Run back up. Now, notice at the bottom of every little turn, after pulling back, red candle, green candle. Red candle, green candle. Once you see it, it's hard not to see it. All right. So here we go. Now, I want to take a look at the fundamentals for just a second. Okay. Now, when we take a look at the fundamentals, we want to go to analyze, and we're going to go to fundamentals right here.
Now, if we go to fundamentals, I'm going to link this chart. There it is. We just kind of put that little, let's say, 'unlink'. I call it the chain. We're going to link it to the number one chart. Okay. So everything that we look at, so if I have it on the trade tab, chart tab, we don't have to keep typing in the symbol, right? It would be helpful. Now, I want to go down and look at something just real quick, and I want to look at the annual number. So when we scroll down here, you're going to see annual numbers and quarterly numbers. Now, a lot of people, when the market is more volatile, sometimes we think that every stock is similar. Well, let me kind of show you something just real quick.
We know that some companies, they're more well-established, meaning they're already out there. They're sold in every store. People already know about the product and service, and they don't really grow like double digits. They're kind of going more in line. They're more in line with the overall economy, like the GDP of the economy, okay, 2% to 3% a year, et cetera. Now, what you're going to notice on PG is when we look at a three-year average, we look at a five-year average, it's really gone up about 2. 5%, about 4%. Why would someone buy a company where the three-and the five-year growth is just so low? Why would they do that? Well, sometimes what they want is they want something that's kind of more less, they want something that's less volatile.
They want something that's more likely going to hit their numbers and just mint money, okay? Now, what you're now going to notice is when you look at the P. E. ratio, 26, the five-year average is 26. And if you look at the dividend yield, 2. 36, it's really not super high even, it's not the highest dividend yield, of course. But sometimes you don't necessarily know. You don't necessarily want a super high dividend yield. You want there to be money left so the business can use that money to finance growth from savings or the ability to borrow money and so on, or buy other businesses, if you will. Dividend payout percent per share, percent of the earnings. So they're paying out 62% of their earnings in the form of a dividend.
So if you're a shareholder, you might say, geez, that's kind of generous of them. I didn't even have to do anything. I didn't even have to buy their product. We just need to own the shares. Now, the risk of the dividend is they could cut it. They could raise the dividend and so on. So we know that dividend is changing and there's risk to what interest rates do with what dividends do and so on. So there's some correlation there. We've talked about that. Now, what I want to do just real quick is I want to bring up a couple of the metrics that we see. Now, when you look at earnings per share, it's been climbing. When you look at dividends per share, book value, cash flow, free cash flow, sales and so on.
But the number I want to kind of pay attention to that we're going to focus on here today is really ROE. You look at ROE and what you're going to notice is for a company like this, that's a pretty high ROE number. You're talking about a number that's like anything over 18 is pretty solid, okay? And they've been there for a while. Now, what some investors like is they like something that's maybe down and starting to reverse. How many of you are in that camp? James, I like something that's down and starting to reverse. Anybody? Okay. Now, sometimes the question now becomes, well, what would constitute a potential entry? Well, the biggest thing is some investors have been watching to talk about this early on price patterns.
The investor might be saying, You know, James, I'm going to set a buy stop or a buy stop limit. Buy stop or buy stop limit is saying, look, buy the stock if we take out the high. In other words, if we started a trade above a certain level, which you specified, that might constitute a potential break of resistance, okay? So the order of a buy stop or a buy stop limit, the buy stop limit just places a cap, okay? It's saying don't buy it until we get to this price or higher. And the buy stop limit is you place a cap on how high you're willing to buy the stock at. So what we're going to do in this case, we're going to right click on the chart right above the intraday high width.
Now, how many of you have ever had a consolidation, seen the stock broke out and said, 'Dadgummit, I was watching it and I completely missed it? Well, let's try not to do that, okay? We're going to go ahead and we're going to right-click on the chart. We're going to go down to buy custom. We're going to go with OCO bracket. Now, this class is called trading actually growth and value stocks. Now, on the order type, if we just did a limit, we're saying that price or less. If I did this order and said stop limit. A buy stop limit. Stop is saying, 'Look, buy it if we get to this price or higher.' But the limit is really you're placing a cap on what you're buying it for.
A lot of people like that because a lot of people don't like to have an undefined value in which they're buying the stock at. Now, the bad side about this is if the stock opens up at 180 and doesn't come back down, it doesn't fill. Now, what I'm going to do in this case, I'm going to put like a number of like one. 70, 75. So, the wider that spread is between the stop price and the limit price, the greater the chance you could have to get filled. Now, if you put it one penny wide, you better nail it perfectly. Okay. And if you put it at 180, the wider that is, the greater the chance you can actually have. Now, we first need to make sure can the stock get to that price or higher.
Now, what I'm going to do in this case is we're going to put that order in. We're going to also go back to the position. And we're going to imagine that we're going to do this amount of capital, which has been consistent with what we've been doing from the beginning of the year. If you did that amount of capital, you're going to see how many shares is that. And it should be giving us about, if I did this, you go dollar amount. There you go. How much is that? It's going to be about 38 shares. Okay. So, with the 38 shares, we're saying, look, buy the shares if we get to that price or higher. But that's the cap. Okay.
Now, when we look at this, the target, a lot of investors might try to put a target right at the prior high, right around $179. 92. Now, here's the deal. If the Staples area goes up, you might be thinking, hey, which stocks in the Staples area has a correlation maybe to, let's say, what PG does. Okay. Excuse me. What stocks in the Staples area has a correlation to what the staple sector does? Okay. And maybe PG is one of them that's had a historical record where it's been pretty correlated, meaning it's running parallel to what the sector does. We're going to go ahead and put that target right here about $179. 50. Okay. And I'm going to go to limit data GTC.
Now, what you're now going to notice is we're going to place a stop underneath this. And when I say underneath this, I'm saying $166. 22. Now, the fallacy that happens is when people are like building a portfolio, they think everything in their portfolio has to be like Palantir. It has to be like Netflix. It has to be like Meta. It has to be like Dash or App. But that's not really true. You don't necessarily always want super volatile assets. The investor who's probably more prudent is saying, look, I like a mixture of assets. Okay. Since I know that stocks that are more growth-oriented, they might do better when maybe the market is more strong. But times where the market is more flat or weaker, they might say, hey, some of these income value plays might actually be better off in that scenario.
Since nobody knows what the scenario is going to be every day in the future, the investor creates a blend of stocks in their portfolio. Makes sense. Now, if we take a look at this, I'm going to set that stop. Where's the number? 162. 89. Okay. Now, I started with this one because I want to show you some differences. Okay. So, what's the takeaway of this one? Number one, when you take a look at this, it's when you look at the revenue growth, when you look at the earnings per share growth, it's kind of like mimicking what the economy typically does, right? The Federal Reserve says, look, we'd like to see the economy maybe grow 2%, 3%, maybe 5% a year. On a GDP basis. Okay. Percentage basis. Year over year.
But for some investors, that's not attractive. Now, if you're getting a company that's doing that, it's probably more of a monopoly. Not a lot of competition. And they've probably been around for a while. And we know that Procter & Gamble, they have been around for a while. Okay. Now, let me kind of just what I'll do is we'll go ahead and send that order. Okay. Now, the comment is from Bob. He calls it bad, that's wrong. It's kind of like de-worsification. You could still be kind of narrowed in on a couple of key stocks. And when I say a couple of key stocks, you might say 8 or 10 stocks. I'm not really sure if I would say that's de-worsification. We're not talking about, hey, we're going to spread the capital over 100 different stocks.
But you're trying to have, of the eight or 10 stocks, maybe 10 or 12 stocks you're having, there is some variance of some stocks that are in the portfolio. Now, Bob, I'm not saying, I'm just saying, we're not talking about spreading it out to 50, 100 stocks, okay? So that's going to be our first trade here right now. Now, what I do want to do is I want to go back and I want to look at Palantir. Has anybody looked at this stock as of lately? Any takers on that? Let me go back to a regular chart, okay? Now, if you zoom in on this, we talked about this last week. I want to kind of continue that conversation for just a second, okay?
Now, if I looked at Palantir, if you pull this up, we kind of see, and I'm going to just circle this quickly, okay? We talked about this red and green candle, red and green candle, red and green candle. Today, if we looked at that and said, what type of candle is that that we see today? Well, that's a bullish engulfing candle. If we go back to this one here, that was also a bullish engulfing candle. Bullish engulfing candle is the strongest candle. You actually soak up or engulf the previous day's body and you close above the previous day's high. A lot of times, like you saw here, this did not engulf the previous day's candle, but did not close above today's high. What I want to do here is I want to right-click right at the high, okay?
Bullish engulfing didn't take out the high, but it engulfed. I'm going to just create an alert, just real quickly. Create an alert. And now what you're going to notice is when you look at this, mark at or above 118. 86. And we're saying if that stock price, mark, okay, gets above that price, this could be showing a bounce here. How could you call that a bounce? Well, remember what we said before is whenever you get these red candles, stops going down, how do you know it's starting to go up? Green candles. How do you know when it stopped going down? Red candles. How do you know when it started going up? Green candles. Stop going down, red candles. Start going up, green candles. And you look at the bottom of it.
If everyone of those, you'll see the red and green candle repeated over and over again. Now, if you take a look at this, so that's what I want us to keep an eye on. Now, there's probably a pretty good chance that if other investors saw the way that this ended, that stock might try to gap in the morning. Keep an eye on that, okay? Now, I want to also go down to just kind of pull up this stock. I just want to look at the fundamentals for just a moment, okay? When you look at Palantir, and we said this last week, sometimes investors, they're not looking so much to the history of what it's done. They're looking to see what it's doing now and what it could do in the future.
Now, when you say future, that's speculation, okay? But when you look at Palantir, what you're going to notice is the earnings per share was negative, negative, slightly less negative, less negative, but still negative, went positive, and then went positive. Even more. So a lot of people kind of like maybe a company that might be going from, let's say, losing to they're gaining, okay? So if you take a look at something like this, what you're now going to notice is they're also seeing when we talk about the free cash flow or sales per share, it's also increased. And so you want to kind of see that continuation. A lot of investors are thinking, hey, if I buy this, it might be at the doorstep or the early stage of growth.
Now, a lot of speculation built into that. But you got to remember, sometimes investors can get ahead of themselves. And sometimes people just buy the stock in expectation that that momentum might continue. I want you to also keep an eye on a stock like App, which if we take a look at a stock like App, what you're going to notice, it already had earnings. I couldn't do anything, okay? This is the one I want to talk about, but it had earnings. How do you know it had earnings? Well, number one, we can see it on the chart, okay? And this is the one, let me just give you the fundamentals. I couldn't do anything about it. Our class got started right at the market. But so number one, we can see it right there.
But the one that we've been kind of watching is, and that's where the stock was. So it pretty much ended right at resistance. And we can see the bid-ask spread. This is the after-hours. This is after 4 p. m. Eastern. And by the way, if we change the daily chart to maybe an intraday chart, 5, 10, 15-minute chart, we'll see that gap. So it went from $3. 80 to $3. 32, which is the 4 p. m. closing price, and it's at $4. 34, okay? So pretty good pop. Now, app has a similar fundamental story, okay? You look at the numbers, and they went from negative. Let me show you this just real quick, okay? So when you look at an app, you're going to kind of see something pretty similar, okay?
Not great. They were negative. They went positive. And what you're now going to notice, if we go to quarterly, you're going to see that they just punched out recently in the earnings, they punched out $1. 25, the highest number they have ever seen, okay? Now, if we went over here to the left-hand side and said, dadgummit, like what news came out on this that would punch that stock in that magnitude? Let's take a quick look before we look at another example. Now, I'm going to call, I'm going to look at, let's say, live news. I'm going to sink into this chart. Let's kind of see what we got. So the net income, if we take a look at this, just real quick, yep, there it is.
App loving, okay, or app loving. Net income, revenue rises, Q1 guidance set. Oh, investors like that. When you set that guidance, when you're strong enough to give an earnings forecast. And what you're now going to notice is it expected, they expected $1 . 25, okay? They expected $1 . 25, but they actually got, when we talk about the, they were expecting $1. 25, but they blasted, beat it, okay, at the gap, general gap EPS, 173. My gosh, okay. So that's kind of what investors like. They like something where there's not, there's some speculation. If this company could roll, you could actually get big earnings surprises, okay? Now, don't hold me to that. I couldn't do anything to that because we started it right at 4 p. m. Eastern.
But that's why kind of some of the companies that are, or maybe have struggled, that doesn't mean they can't turn it around. So keep an eye on Palantir. Keep an eye on also the APP as well. Now, I want to kind of talk about something. Now, in that same vein, okay, can anyone name a company on the Dow that starts with, well, it ends with an A? Can you think of anything? We talked about it last week. And we said, hey, maybe there could be a turnaround story on this. Let's go back to that. You know what the ticker is? Ends with an A. It's only two letters. Okay. Okay, here we go. Now, we're going to go back to it. What is it? B-A. Okay.
Now, tell me about what you see in terms of the chart here. Now, remember, last week we talked about the fundamentals. And we said, man, they have been absolutely horrible. Sometimes what you can do as a business or the company, you can just get them to tank some of the earnings. Okay. Realize losses, take expenses, and so on. And it just shows horrible fundamental numbers. And that way, what it does is it sets the bar really low. Because even if it was just half as bad in the next quarter, half as bad next year, it looks pretty good compared to how bad it was a quarter ago or a year ago since the bar's so low because they did that bad. Now, what we're going to do is we're going to go right back to this.
Okay. Now, what you're going to now see on Boeing is you have a classic, like, basing pattern. Okay. So, there's the chart. And if you zoom in on this, you're going to see on the right-hand side, now, is that a hanging man candlestick or is that a hammer-off support? Now, Josh, don't get excited. Okay. Not a recommendation. Now, if you take a look at this, some investors might really say in this case, hey, we could be hammering out a support level and trying to push up through the, a level of resistance. Now, you go back to this, maybe like a daily chart, one-year daily, zoom in on this. If we look at the last two, four weeks, can we see any angle of support, whether it's horizontal or diagonal?
Now, I'm not going to get into the fundamentals like we did last week on this. Needless to say, go back to the playlist I showed. We know they're horrible, and we can see it on the bottom as well. But someone has really been starting to buy off this trend line. Now, someone's always going to make the comment, we're too late. You know, always late. You know, the fact of the matter is when we kind of measure where's support, and we draw that trend line up to where the current candle is, if we're still within 5% of support, we're not necessarily late. You know, it would have been nice at 3% or 4%, but we're at 4.35.
Now, no one said you can't do that; understand orders and say could you, could the investor try to get in a little lower than where we are? And do a buy limit order. Well, if we did that, let's kind of show that. I wonder if I said, look, let's take a little bit, a little cream off the top. Let's just say, right, click on the chart, close to the high, buy limit. Now, the problem is with buy limit is we don't know if the price is going to come down to this. That's the risk, okay? Now, what I'm going to do on this is we got $185. 02, limit day GTC. Now, here's the deal. If you just limit day, it's only good for tomorrow, okay? If we did GTC, good.
If we canceled, it's good for six months, okay? Now, what I'm going to do is that price, wherever I right-clicked on the chart, that's the price that I right-clicked on, $185. 02. So, how much do we need the stock to come down? Well, you need the stock to really come down to $186. 25 down to $186. 02. Now, if it goes down by maybe $1. 23, does that mean it's a bearish trend? Well, we already went into that. Don't make me go there, okay? Sometimes you can kind of get just negative earnings news that causes stocks to drop intraday. Does not change the trend. Might change your emotions, but it's not changing trend. And what you're now going to notice is we're going to put that $185.
02. Now, I'm going to put that stock right underneath the trend line. So, the trend line right here is at 177. Okay? 72. And if we did 2% below that, it's going to be 2% less than that. 174 . 16. Let's go ahead and type this in. Now, so, James, when you talked about, for example, Palantir, you talked about app. Are you really saying that this is kind of like a similar story? In some sense, yes. It's more of a business that's been around for a while. I think you could even say it's monopoly. I mean, how many airplane companies do you know of in Boeing, Gale, okay? I mean, you can't think of, you could say Airbus, okay, Boeing, and who else?
So, the thing is, if there's a demand for it, just can they actually start to make better quality? Okay? So, there is a demand for it. And if we look at this, there's the stock GTC. Now, the target, okay? If we went back and looked at this, said, okay, what do we got in terms of the overhead resistance? Well, that 1. 8. 99, that's a level. But if, clearly, if someone's buying the stock here, they're thinking it could go higher than that. Where might they think above that level? Now, if we just took, like, the next level, probably be right around 198. Now, I want to kind of bring something up to you a little bit. Now, I'm a correlation person, okay?
I like to kind of see if this goes up or down, what tends to have a relationship to that, okay? And I'm going to show you something. So, we're going to put a target right around 198. Okay? 198. Now, we know that Boeing is in the Dow. We know that. Because if you looked at the Dow and the stocks in there, we know that. Now, I'm not going to mess with this number of shares here real quick. 6,500, 185. What do we got? It's going to be about 35 shares of stock. Okay? 35. There you go. Now. What I'm going to do. I'm going to just show you something real quick that I think a lot of investors brush over.
So, they don't maybe keep track of what stocks have had a positive or a negative relationship to something going up. So, if I said, hey, I want to bring up just correlation. And what I want to do is I want to double click on that. Okay? So, double click. And I'm not going to look at the S&P X. I'm going to look at the Dow Jones. Now, here's the deal. If I went into this and I just clicked on that little gear right there, and I just went to SPX, I don't want SPX, I want DJX, okay? Dow Jones. Now, if I clicked on this, clicked on apply, and then okay, you might think, and I might have historically thought myself, oh, no. So, how do I, first off, how do we read this?
Okay? So, a one is saying that it has a positive correlation. One. Zero. Zero. Zero is saying there's currently no correlation. And negative one is like oil and water. Now, so if we look at this right now, there's currently no relationship, or the current stat is, there's very little relationship between Boeing and the Dow. Now, in this case, what you're going to notice is if I showed you a stock, let me just do this real quick. If I pulled up JPM. What you're now going to notice. What you're going to notice is if I showed you JPM, JPM spends a lot of time closer to one, meaning high correlation, going up, JPM going up, people trade that correlation, okay? Now, if we bring up BA again, it has times where it's somewhat more correlated, highly correlated would be something like 0.
7 or higher, but there's a lot of times where there's negative correlation. It's almost like gold for crying out loud. So, the reason why I'm kind of picking this. It's if we actually see that maybe the Dow doesn't go up, which lately it's been dropping last week or so, some investors might want something that doesn't show a current relationship to the Dow, or maybe it's showing inverse correlation, and you're going to see that a lot. It might take you a little longer to catch on to it, but the longer you stick around, the more you realize, ah, so when markets go down, people look for things that have a benign correlation, maybe an inverse correlation to really what is.
The um to the index or to the sector now, you can also get this on a table format as well, and you can create the table that's, what's kind of nice ok now what I'm going to do is we're going to go set a target there. And we have a stop there. Now what's the risk to this, or the rest of this order is if it doesn't come down to $18. 05 at some point, it doesn't film. So, I also want to kind of do this for just a moment, wondering if it does. We're thinking you. Can have good intentions and just sometimes miss it. We're going to set like an alert that if we go higher than today, the investor might say, you know, I'm going to change the order from a limit and then maybe just go to a market or change the limit price.
That way the investors may be trying not to miss the upward trend. Does that make sense? So I think a lot of us have good intentions and say, I'm going to look to buy on the pullback. It doesn't necessarily pull back, but it just keeps trending. And so the investor was there, but they just missed it. So I just want to set an alert that if that pullback doesn't happen, okay, that there's also alert reminding the investor, hey, pay attention. Now, I also want to go back to something real quick. You have five minutes left and a couple of you have mentioned a small company called Meta. Now, Meta was the one that we talked about where the stock market was going to go down. And so I want to go back to something real quick.
The stock went to about 700, and there has not been much of a pullback there to say the least. What sector is Meta a part of? Vacation, okay? Now, if you take also a look at this, so if you look at Meta, you will notice that if we look at the red and green candle, candle, red and green candle, red and green candle, what do you notice? Well, I mean, they're higher, higher, higher. And what you're going to notice is today, we actually had another little green dot there. Now, the other thing that the investor might be looking for when they do a search is which companies might have capital investment. In other words, when they've invested some capital, okay, to invest in the business to create new products and services.
We've talked about that with Meta. All I'm saying here, is Meta is getting another bounce set up, okay, to the upside. Keep an eye on that, okay? Now, the other one I want to make mention of that we've talked about that is also kind of in that discretionary area as well is Netflix. Now, the one thing with Netflix, I want you to kind of zoom in on this. It also showed today a close above the high of the low day. It pulled back for a day. It opened up lower, like the market, and then rallied back. And where did it close? That's right. It closed at its high. Now, wait, hold on. I thought the stock was lower. No, someone actually went in there when it was lower and bought, okay?
Now, what you're now going to notice is that dot, which I'll share with you, and I will also put it in the description, okay, if you take a look at that. So, what you're now going to see is if you look at that, the chart that I just sent to you is going to show the moving averages with the shading and that green dot. That green dot is going to show on the chart close above the high of the low day or pothole, trade above the high of the low day. It's showing, which really, what is that? It's a bullish bounce setup. It could be a flag or just a higher low. All of the above, bullish bounce. I just call it bullish bounce, okay? Now, I want us to keep an eye on that, okay?
Now, the one thing I want us to keep an eye on, and just kind of point this out, when you look at this and you look at the numbers, this is where I think investors might not look at it, okay? But I think sometimes when we actually look, okay, take the sunglasses off, and we actually kind of say, what is going wrong with Netflix, the business itself? Look, 20'20, they were 608 on earnings per share. They doubled as we sat and watched TV during COVID. And then in '22, it kind of went back a little bit. Maybe some people were sharing passwords. I'm not saying anyone did that here. Okay? It was other people. And then now what you're going to know, it's marginally higher than where it was in '21 to '23.
But what you're now really starting to see is you had 1983, okay? So all of a sudden, when they kind of said, 'Hey, you know, password share, we're going to catch you or whatever, get your own account.' That can really quite help quite a bit. Now, what you're also going to see is when you look at the ROE, the net income over equity, 38%. And they have net profit margins of 20%, 22%. Meaning they actually didn't just bring in the money. They kept it. Okay? So I also want us to keep really an eye on Netflix, which has also been quite strong as well. Now, I'm out of my time here. And once you find those, I want you to send them to me. I'm joking. Okay?
I know what they are, too. So a little fun there. So maybe share them in the class. Okay? As examples, not recommendations. Now, I'm out of my time. I'm out of my time. I'm out of my time. I'm out of my time. But we walked through a couple of trade examples. And also, we kind of talked about some differences between PG, Palantir, App, Netflix, and Meta. And there's a couple stocks here that are really bucking those trends. Now, I want to give us a quick reminder that with what we discussed, you can find on our playlist. Okay? And what you're now going to see is there's the playlist for the class. So it's been recorded. Second, you can also, for example, go to the Trader Talks right on YouTube. Okay?
And you can also, for example, go to the Trader Talks right on YouTube. Okay? And what you're now going to see is that's our channel. The easiest thing to do is subscribe. All you got to do is click the subscribe button. That way, you have access to all of our content outside ETFs. Connie does ETFs on Monday afternoon. Kevin and I do the ETFs on Friday morning. Join us both. Those are ones that are not recorded. I want to thank you so much for your comments and your participation with what we discussed here today in terms of talking more about growth, but also did it bring up a little income as well potential. And remember that all investing involves risk. And this has been the class on trading growth. So if you're interested in investing in value stocks, with that said, go out and do your homework. Find those stocks that actually have those components of what we're really looking for. Take care.
