Revolve (RVLV: NYSE)

Revolve Group (RVLV) is an online fashion retailer targeting younger customers. The company leverages artificial intelligence (AI) in its operations, using data to offer personalized merchandise and maintain premium pricing. Co-CEO Mike Karanikolas attributes Revolve’s strong second-quarter results to improved marketing efficiency, better logistics, and a decrease in return rates for the first time in over three years.

Revolve continues to build strong relationships with its loyal customer base, with a 9% year-over-year increase in active customers and a 3% rise in total orders. This reflects the company’s competitive advantage in customer engagement, leading to long-term shareholder value.

We are bullish on RVLV above $20.00-$21.00, with an upside target of $33.00-$34.00.

Teva Pharmaceuticals (TEVA: NYSE)

Teva Pharmaceuticals (TEVA) develops and distributes generic medicines and biopharmaceutical products in the United States. A major recent development is Teva’s agreement with Johnson & Johnson, allowing Teva to launch its Stelara biosimilar, AVT04, in the U.S. by February 2025. With Stelara generating nearly $10 billion in revenue for J&J, AVT04’s introduction provides a lower-priced alternative, potentially boosting Teva’s long-term growth.

Additionally, Teva’s settlement related to the opioid crisis, with payments of over $4.3 billion spread across 13 years, removes a significant uncertainty, making the company more attractive to investors. Management’s efforts to improve the supply chain and strengthen the gross margin of 43% should also help Teva return to profitability.

We are bullish on TEVA above $15.50-$16.00, with an upside target of $23.00-$24.00.