Market Overview
Shares had been up throughout the board final week, and weathered quite a few headlines together with a charge lower, a commerce assembly between the U.S. and China, in addition to earnings season. The Nasdaq led the best way greater, closing up 2.24%. The Dow Jones Industrial Common adopted, closing up 0.74%. The S&P 500 rallied 0.71%. Valuable metals continued their correction, however I’ve essentially the most consideration now on crypto, which seems to be making an attempt to finish a backside.
Shares I Like
Modine Manufacturing (Ticker: MOD) – 50% Return Potential
What’s Taking place
- Modine Manufacturing Firm (MOD) is a number one international supplier of thermal administration options for automotive, industrial, and industrial purposes, providing buyers publicity to the quickly rising energy-efficient know-how and electrification sector with a give attention to revolutionary warmth switch techniques and sustainable options.
- The prior quarter confirmed income of $682.8 million and earnings of $56.92 million.
- This valuation on MOD is excessive. P/E is at 46.71, Worth-to-Gross sales is at 3.37, and EV to EBITDA is at 25.21.
- At a technical degree, MOD has constructed an attractive base inside a triangle formation. If it may well get above the higher trendline of the sample, search for rather more upside on this title.
Why It is Taking place
- Modine Manufacturing Firm is using a wave of explosive development within the AI-driven knowledge heart cooling market, with its superior thermal administration options powering the infrastructure behind the worldwide AI growth. Q1 2026 gross sales rose 3% year-over-year, pushed by surging demand for its precision cooling techniques, positioning Modine as a crucial enabler of the multi-trillion-dollar AI revolution.
- Strategic give attention to high-margin merchandise enhances Modine’s profitability narrative. By making use of the 80/20 precept to prioritize high-growth, high-return markets like knowledge facilities and EV thermal techniques, the corporate boosted its gross margin to 24.8% and EBIT margin to 10.7%, making a compelling story of operational effectivity and sustainable earnings development.
- International diversification and sustainability management strengthen Modine’s market place. Its thermal administration techniques assist automotive, building, HVAC, and industrial equipment sectors worldwide, with a give attention to eco-friendly options that align with rising ESG calls for, making it a go-to associate for industries searching for efficiency and environmental duty.
- Resilience amid market challenges underscores Modine’s adaptability. Regardless of a 32% year-over-year drop in North American Class 8 truck orders in September 2025, the corporate’s diversified portfolio and give attention to AI and EV markets present a buffer, positioning it to navigate macroeconomic headwinds whereas capitalizing on long-term development developments.
- Analyst Rankings:
My Motion Plan (50% Return Potential)
- I’m bullish on MOD above $140.00-$142.00. My upside goal is $230.00-$235.00.
Centuri Holdings (Ticker: CTRI) – 129% Return Potential
What’s Taking place
- Centuri Holdings, Inc. (CTRI) is a number one utility infrastructure companies firm in North America, offering fuel and electrical utility companies for infrastructure modernization, providing buyers publicity to the quickly rising power infrastructure and clear power transition sector with a give attention to upkeep, restore, and set up for utility suppliers.
- The latest quarterly report confirmed income of $724.05 million and earnings of $16.92 million.
- Valuation is blended in CTRI. Worth-to-Gross sales is a strong 0.67, whereas EV to EBITDA is at 11.37. Ebook Worth is simply 6.39.
- From a technical standpoint, CTRI is build up a strong cup and deal with sample. A break above resistance would lead to an enormous acceleration in upside momentum.
Why It is Taking place
- Centuri Holdings Inc. is on the forefront of the U.S. power transition, securing practically $400 million in new buyer awards in September 2025 for utility capital plans, infrastructure upgrades, and grid hardening tasks. This momentum builds on over $550 million in contracts from July, fueling a strong backlog that positions Centuri as a necessary associate in modernizing the nation’s ageing grid amid surging demand for dependable energy infrastructure.
- Operational independence from Southwest Gasoline unlocks Centuri’s full development potential. The completion of its remaining separation in September 2025, together with a 27.36 million share secondary providing priced at $19.60, supplies clear possession construction and recent capital entry, permitting the corporate to aggressively pursue enlargement within the $100 billion+ utility infrastructure companies market with out legacy constraints.
- Robust income outlook and market positioning spotlight Centuri’s scalability. Q2 2025 revenues climbed 7.7% to $724.1 million, with FY25 steering raised to $2.7-$2.85 billion—outpacing the sector’s 6% capex development—pushed by long-term grasp service agreements and a give attention to high-margin grid modernization, making a narrative of sustained earnings enlargement in a utility sector ripe for funding.
- Activist investor backing from Carl Icahn indicators undervaluation and upside potential. Icahn’s passive stake rose to 12.24% in September 2025, reflecting confidence in Centuri’s strategic execution and worth creation post-spin-off, positioning the corporate to draw additional institutional curiosity as a compelling play within the resilient utility infrastructure house.
- Analyst Rankings:
My Motion Plan (49% Return Potential)
- I’m bullish on CTRI above $17.50-$18.00. My upside goal is $30.00-$32.00.
Oruka Therapeutics (Ticker: ORKA) – 96% Return Potential
What’s Taking place
- Oruka Therapeutics, Inc. (ORKA) is a number one clinical-stage biotechnology firm creating novel monoclonal antibody therapeutics for psoriasis and different inflammatory and immunology indications, providing buyers publicity to the quickly rising autoimmune illness remedy sector with a give attention to revolutionary, long-acting IL-23 and IL-17 inhibitors.
- The corporate has no income and within the newest quarter, reported a lack of $24.57 million.
- Valuation in ORKA is abysmal because it has no earnings. It is a extremely speculative biotech title.
- From a charting standpoint, ORKA just lately broke out from a large saucer formation. I am trying for lots extra upside on this title within the coming months.
Why It is Taking place
- Oruka Therapeutics Inc. is pioneering a brand new period in psoriasis remedy with its lead candidate ORKA-001, a novel half-life prolonged anti-IL-23p19 antibody demonstrating a groundbreaking 100-day half-life in Section 1 trials, enabling potential once-yearly dosing that far surpasses present requirements like AbbVie’s Skyrizi. This innovation addresses the continual burden of frequent injections for tens of millions of sufferers, positioning Oruka to seize a big share of the $30 billion psoriasis market because it advances to Section 2a in late 2025 with efficacy knowledge anticipated in 2026.
- Sturdy pipeline enlargement bolsters Oruka’s development narrative in inflammatory illnesses. Co-lead program ORKA-002, concentrating on IL-17A/F for psoriasis and psoriatic arthritis, has begun dosing in Section 1 with preclinical knowledge exhibiting over 30-day half-life for two-to-three occasions yearly dosing, whereas ORKA-003 and mixture ORKA-021 goal undisclosed pathways—making a diversified portfolio that might redefine take care of underserved sufferers in dermatology and past.
- Strategic merger and funding firepower present a strong basis for accelerated growth. The 2024 merger with ARCA biopharma, backed by Paragon Therapeutics’ antibody engineering experience, mixed with over $455 million raised—together with a $180 million non-public placement in September 2025—ensures a money runway via 2027, fueling scientific milestones and positioning Oruka as a well-resourced contender within the aggressive biologics panorama.
- Unmet want in continual pores and skin illnesses underscores Oruka’s mission-driven potential. With plaque psoriasis affecting 125 million globally and present therapies requiring month-to-month injections, Oruka’s give attention to high-efficacy, rare dosing aligns with affected person calls for for higher freedom, backed by a scientific advisory board led by dermatology skilled Andrew Blauvelt, enhancing its credibility in tackling this high-burden situation.
- Analyst Rankings:
My Motion Plan (96% Return Potential)
- I’m bullish on ORKA above $22.00-$23.00. My upside goal is $55.00-$56.00.
Market-Shifting Catalysts for the Week Forward
What’s to Fear About Subsequent?
It was an eventful week stuffed with earnings, a charge lower from the Fed, and a formalized commerce truce with China. In the meantime, shares climbed to new all-time highs once more, however began exhibiting a little bit of churn beneath the floor.
A variety of market commentators are declaring the weak breadth, and the way the Magnificent Seven names are carrying the indices greater. Nicely, that is what occurs when these corporations are as huge as they’re. The lagging breadth is simply a fear of these different shares fail to play catch up within the near-future.
The Fed raised some considerations final week concerning the subsequent charge lower not being so sure, however I am simply not shopping for that proper now. The job market continues to weaken, and inflation stays below management. That is the surroundings to chop charges.
Eyes on King Greenback
The U.S. Greenback has been making fairly the comeback over the previous few weeks. It bottomed towards the Euro again in mid-September, and bottomed towards the Japanese Yen manner again in April. The sustained rebound towards the Yen begs the query – is the carry commerce again?
The carry commerce happens when speculators quick the lower-yielding foreign money to purchase the higher-yielding foreign money. Regardless of latest charge cuts, the Greenback continues to be yielding notably greater than each the Yen and the Euro, however the carry commerce towards the Yen is infamous for its secondary results.
The carry commerce within the Yen is usually used to finance hypothesis in tech names. Thus, we may add this to the lengthy listing of causes to be obese the tech sector, though I nonetheless suppose that biotech will emerge as the subsequent story on the AI entrance in 2026.
Sector & Trade Power
The market’s sector internals proceed to information us in accordance with the cash flows – the bulls simply cannot cease profitable proper now, as know-how (XLK) solidifies its place because the chief within the pack.
There was an enormous pop in shopper discretionary (XLY) final week due to Amazon too. This introduced this extra development sector into second place within the rankings going again to the beginning of the second quarter.
In final we nonetheless see shopper staples (XLP). That is bullish since you need to see defensive sectors underperforming, which is precisely what we see. I am additionally beginning to just like the healthcare story increasingly more.
| 1 week | 3 Weeks | 13 Weeks | 26 Weeks |
| Know-how | Know-how | Know-how | Know-how |
Editor’s Be aware: Tech continues to run the desk.
Checking Again in on China (Sector ETF: FXI/SPY)
We’re recent off an enormous commerce deal between the U.S. and China. However beneath the floor, the circulate of capital between the 2 international locations tells the larger story. It is what makes it a good time to test again in on the ratio between Chinese language massive cap shares (FXI) and U.S. massive cap shares (SPY).
I have been speaking lots concerning the mounting alternatives within the Chinese language market, and I feel we lastly have a catalyst for this to materialize. As you may see FXI has quietly outperformed SPY because the begin of 2024 – it is simply not being lined within the headlines.
The ratio continues to be coiling inside the rounding backside formation. I am searching for a break above the higher horizontal trendline of the sample to verify that the Chinese language market goes to ignite to the upside. This could possibly be a serious theme of 2026.
Excessive-Beta Says a Lot (Sector ETF: SPHB/SPLV)
It actually pays to look to see what is going on on beneath the floor. The reality at all times lies within the tape, and it pays handsomely to observe it carefully. I am trying on the ratio between excessive beta shares (SPHB) and low volatility shares (SPLV).
Be aware how the ratio was dropping onerous into the lows of April, however then, it fashioned a v-bottom and commenced a parabolic rise. It broke out from a broadening wedge formation again in late-June, and has by no means seemed again since.
As look as this ratio continues to climb, the market goes to reward those who take dangers. An uptrend on this ratio could be very a lot a trademark of a bull market in equities. If we begin seeing it drop once more, it will counsel that it is acceptable to dial again on the danger.
Junk Bonds Are Readying (Sector ETF: HYG/IEI)
I need to shift gears within the bond market and replace you on how junk bonds (HYG) are performing relative to 3-7 12 months Treasuries (IEI). This can be a key indicator that helps measure each liquidity and danger urge for food for the general market.
Junk bonds have a popularity of buying and selling much like shares with respect to volatility. However Treasuries are thought of to be the protected haven asset (for now). Thus, when HYG outperforms IEI, it is thought of a risk-on sign. When IEI outperforms HYG, it indicators warning.
The ratio continues to consolidate close to its all-time highs. However extra importantly, we proceed to look at the huge saucer formation. This factors to an enormous enhance in market liquidity – this is smart given the latest actions of the Fed.
My Take:
There’s little cause to be involved a few main market calamity so long as this ratio holds regular. Even much less so if it begins to breakout from the saucer formation. Keep in mind that credit tends to steer, and shares then observe.
It is vital to do not forget that all markets are related – shares, bonds, currencies, and commodities. Dangers typically current themselves within the “smarter” markets like currencies and bonds first, which is why, even for those who’re a inventory dealer, you want to pay attention to what is going on on elsewhere.
Cryptocurrency
Time to pivot and take a look at Bitcoin once more this week, which continues to consolidate inside the broadening wedge formation highlighted beforehand. To be clear – this sample helps the bullish case, however provided that costs can exceed the higher horizontal trendline.
This places Bitcoin in a “new all-time highs or bust” state of affairs. The priority now’s that we now have a possible lower-high on October 27, and following the truth that the low of October 17 exceeded the August 30 low, there are some mounting points with the development.
Bitcoin must reclaim the technical resistance zone within the 110,000-113,000 space to regain bullish momentum. There’s loads of assist within the 100,000-105,000 zone for now, however we actually do not need to see Bitcoin drop beneath that space.
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