Analysis: F UPS AMZN WMT TGT CMG

After you receive this alert, we will make the following trades:

  • Sell 820 shares of Ford Motor (F) at or near $15.35. After the trade, the portfolio will own 7,850 F shares, roughly 3.3% of the portfolio.
  • Buy 45 shares of UPS (UPS) at or near $201. Following the trade, the portfolio will own 565 UPS shares, roughly 3.15% of the portfolio.

With today's market move higher, our shares of Ford Motor have added a few more percentage points to the impressive run we alluded to yesterday. That is leading us once again to some modest register ringing, and funneling the recognized profits into the shares of UPS.

As we saw in the July Mastercard Spending Pulse report, digital shopping sales rebounded sharply during the month, likely due to not only Amazon's (AMZN) 2022 Prime Day, but competing offers from Walmart (WMT) , Target (TGT) and others.

This implies a strong start to the current quarter for UPS, one that tends to be seasonally strong given the Back-to-School season and as we've seen in recent years the early jump on year-end holiday shopping.

With retailers looking to clear through excess inventories in time to restock for the upcoming holiday shopping season, we're likely to see them utilize their digital presence to help move those inventories. A positive for digital shopping, and a positive for UPS as well.

Even after this modest trim, we still have 3.3%% of the portfolio tied up in F shares, keeping it a top 10 holding by position size, offering ample exposure as it continues to transform itself, leaning into EVs along the way.

As we make these trades, we will also downgrade the shares of Chipotle Mexican Grill (CMG) to a Two rating from One, as they have also rebounded sharply in the last few weeks following its latest quarterly earnings report. Our price target on CMG shares remains $1,850.

(Please note that we are looking to execute these trades at or near the share price mentioned above. Once the trade is completed, subscribers can see the trade's executed price here. Be sure to toggle the chart to sort by Purchase Date.)