Stocks to Watch on Wednesday
In mid-week trade for Wednesday, May 20, 2025, watch the Covid vaccine stocks. Moderna (MRNA) might add to Tuesday’s 6.06% gain after it closed at $27.99.
The Food and Drug Administration released a regulatory framework for COVID-19 vaccines. It requires manufacturers to run randomized clinical trials in healthy subjects.
In the retail sector, Dollar General (DG) broke out above $100, closing at $102.20. DG stock has the momentum to continue its rally. Investors view Walmart (WMT) as an expensive stock, with a price-to-earnings ratio of 42 times. DG stock trades at a 17.6 times forward P/E multiple, so its P/E has room to continue to expand. Shareholders are not too worried about the impact of tariffs on consumer discretionary spending.
Among the stocks that could fall further, watch out for Super Micro Computers (SMCI). SMCI stock traded in a range of $25 to nearly $45 since last November. The good news from the $20B partnership with DataVolt, a Middle East firm, is priced in the stock.
Advanced Micro Devices (AMD) and Nvidia (NVDA) also announced deals in the Middle East. Their stock momentum may ease as recent traders book their profits. That would put pressure on SMCI stock.
AES (AES) is at risk of re-testing its 2-week low of $9.57. In the first quarter report posted on May 2, AES earned $0.27 a share. Revenue fell by 5.2% Y/Y to $2.93 billion. AES managed all of its debt maturities for 2025. In addition, it hedged its interest rate exposure through 2027.
