- Iran war news, oil price swings, global bond yields will be in focus this week.
- Ondas is the “buy” for those seeking high-risk, high-reward catalysts heading into earnings.
- PDD is the “sell” pick, as slowing growth and regulatory threats outweigh near-term upside, especially into its Q4 results.
U.S. stocks tumbled on Friday, with the closing at its lowest level in six months, as the Middle East conflict kept oil prices elevated and reinforced inflation worries and the potential for higher interest rates.
Source: Investing.com
The major averages posted their fourth losing week in a row. The 30-stock dropped 2.1%, the S&P 500 fell 1.9%, while the tech-heavy lost 2.1%, and the small-cap Russell 2000 shed 1.7%.
Since the war in Iran began on February 28, the S&P 500 has lost 5.4%, the Nasdaq has declined 4.5% and the Dow is down nearly 7%. All three major indexes are below their 200-day moving averages, underscoring the recent deterioration of sentiment on Wall Street.
The focus in the coming week will remain on oil prices, global bond yields and Iran war news.
Reports on manufacturing, services activity and initial jobless claims highlight a relatively light week ahead for U.S. economic data.
Source: Investing.com
Carnival and Chewy are among noteworthy firms reporting earnings.
And a major energy conference in Houston that will feature top global industry executives could draw Wall Street’s attention.
Below I highlight one stock to buy and one stock to sell for the week ahead, Monday, March 23 – Friday, March 27.
Stock to Buy: Ondas
, a provider of private wireless data and drone solutions, is set to release its latest earnings report this week. The company operates in high-growth sectors, including industrial automation and critical infrastructure, which are increasingly adopting advanced wireless technologies.
Ondas plans to announce its Q4 earnings on Wednesday during a conference call scheduled for 8:00AM ET. According to the options market, traders are pricing in a sharp swing of +/-10% in either direction for ONDS stock following the print.
Source: InvestingPro
Ondas already provided revised preliminary results, revealing Q4 revenue between $29.1 million and $30.1 million (above prior guidance of $27–$29 million), thanks to strong momentum in defense, homeland security, and critical infrastructure applications.
The company expects Q4 net income between $82.9 million and $83.4 million, with full year net income projected between $50.4 million and $50.9 million (ahead of earlier targets).
Management also reiterated its ambitious 2026 revenue guidance of $170–$180 million (excluding any new acquisitions), supported by a growing backlog and recent wins in defense contracts, including border protection systems and counter-drone orders.
Source: Investing.com
ONDS stock recently traded around $10, closing at $10.06 on Friday, after a dip but with high volume. After a jaw-dropping rally (+1,300% over one year), Ondas is consolidating inside a high-volatility symmetrical triangle. The price is trapped between $9.50 (rising support, Fibonacci 50% retracement) and $11.50 (falling resistance), with the triangle nearly 80% complete.
This setup suggests potential for a positive earnings reaction if the final numbers confirm the preliminaries and guidance holds firm.
Trade Setup:
- Entry: $9.95 – $10.25
- Exit Target: $12.00 (gain ~20%)
- Stop-Loss: $9.35 (risk ~6.5%)
Stock To Sell: PDD
In contrast, Holdings, the parent of Pinduoduo and Temu, enters earnings week amid a clear downtrend. Despite its rapid growth in recent years, PDD faces mounting challenges that could dampen investor sentiment as competition in China’s e-commerce sector intensifies and global regulatory scrutiny grows.
The company is slated to release its financial results for the fourth quarter before Wednesday’s opening bell. With implied volatility pointing to a +/-6% stock move post-earnings, the risk of a miss looms large.
Source: InvestingPro
Consensus expectations point to solid year-over-year growth in EPS and revenue, but recent quarters have shown shortfalls, and broader challenges loom.
Temu’s aggressive expansion into international markets has led to soaring marketing costs, which could pressure profitability. In addition, PDD operates in a highly regulated environment, both in China and abroad. Recent scrutiny over data privacy and trade practices could pose risks.
Into this backdrop, even a strong top‑line print might not be enough if management’s guidance or commentary is cautious, or if margins show signs of strain from continued subsidy and marketing outlays.
Source: Investing.com
PDD has lost nearly a quarter of its value over the last year, closing at $96.19 on Friday. The stock has slipped into a textbook bearish breakdown below multi-month support at $97.00.
The technicals paint a clear picture: price is below all major moving averages (20/50/200-day), SuperTrend is red at $106.42, and the Ichimoku Cloud confirms a bearish regime, with the next potential support in the $90.00-$92.00 range.
Trade Setup:
- Entry: Around current levels (~$96)
- Exit Target: $87 (gain ~9.5%)
- Stop-Loss: $102 (risk ~6.2%)
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Disclosure: This is not financial advice. Always conduct your own research.
At the time of writing, I am long on the S&P 500, and the Nasdaq 100 via the SPDR® S&P 500 ETF, and the Invesco QQQ Trust ETF. I am also long on the Technology Select Sector SPDR ETF. I regularly rebalance my portfolio of individual stocks and ETFs based on ongoing risk assessment of both the macroeconomic environment and companies’ financials.
The views discussed in this article are solely the opinion of the author and should not be taken as investment advice.
Follow Jesse Cohen on X/Twitter @JesseCohenInv for more stock market analysis and insight.
