Momentum Alert: META and TSLA Shares About to Surge?

Globe and Mail

a day ago

During my usual Sunday evening market scan, two names jumped off the screen as standout opportunities for the week ahead: Meta Platforms ( META ) and Tesla ( TSLA ). These are two of the largest, most closely watched names in the market, and right now they both appear to be on the verge of significant technical breakouts.
Over the past few months, their paths have diverged. Tesla has been grinding through a year marked by choppy, and volatile price action, while Meta has marched steadily higher, leading the broad market. Despite these differences, both are now aligned in that they both have strong bullish catalysts, and their charts are flashing high-probability breakout signals.
Below, I'll break down what's driving each stock, highlight the most relevant quantitative metrics, and walk you through the technical setups that could set the stage for the next big move.
Image Source: Zacks Investment Research
Tesla Stock on the Verge of a Comeback
Tesla has spent much of the past year navigating a storm of mixed investor sentiment, partly tied to shifting perceptions of its core EV business, partly to Elon Musk's sometimes polarizing public presence, and partly to uncertainty over whether the company's future lies more in cars or in ambitious side bets like humanoid robots. The result has been choppy, often volatile price action, with the stock barely gaining over the past twelve months even as the broader market has marched higher.
That said, Tesla is no stranger to long consolidation phases followed by explosive bull runs. Historically, the stock's biggest rallies have come after extended periods of sideways action, and the current setup is starting to look like one of those moments. On Monday morning, shares broke decisively above a three-month consolidation range, a move that, if sustained, could mark the start of a significant bull run.
Fundamentally, two potential game-changers are on the horizon: the rollout of Tesla's Optimus humanoid robot and the much-anticipated self-driving taxi business. Either could open entirely new revenue streams and spark renewed enthusiasm from investors, especially if early deployments impress.
It's worth noting that Tesla still carries a Zacks Rank #4 (Sell) rating, reflecting near-term earnings estimate trends. However, technical action suggests the market's tone toward the stock may be shifting. As long as shares hold above the breakout level around $338, the path of least resistance appears higher, with momentum traders likely to pile in.
Image Source: TradingView
Shares of Meta Approach Another Record High
Meta Platforms has enjoyed a remarkably smooth ride over the past year, steadily attracting buyers as both sales and profits continue to grow at an impressive pace. The company's aggressive push into artificial intelligence, integrating AI across its ad platform and more recently ramping up hiring for its in-house AI lab, has reinforced investor confidence in its ability to stay ahead of the curve in digital advertising and beyond.
The stock's performance since the 2022 lows has been nothing short of extraordinary, with shares surging more than 700%. Yet despite this meteoric rise, Meta still trades at a relatively reasonable 27x forward earnings, a reflection of its exceptional earnings growth and operational execution under CEO Mark Zuckerberg.
Looking ahead, several catalysts could propel the stock further: continued AI breakthroughs, effective monetization of its large language model (LLM) platform, and sustained strength in the core advertising business. On the technical side, META is currently consolidating after its recent run, with resistance at $774 marking a potential breakout point. A decisive close above that level would signal the start a fresh leg higher. On the downside, failure to hold above $760 could trigger a short-term pause, suggesting investors might look for more favorable entry points elsewhere before the next rally attempt.
Image Source: TradingView
Should Investors Buy Shares in META and TSLA?
Both Meta and Tesla sit at compelling technical inflection points, each backed by powerful long-term growth narratives. For Tesla, the story hinges on whether its breakout above $338 can hold, potentially setting the stage for a momentum-fueled run driven by high-profile product launches in robotics and autonomous driving. For Meta, the question is whether it can clear the $774 resistance level and extend its already dominant trend, fueled by AI integration and continued strength in its advertising business.
From a momentum-trading perspective, the setups are clear: breakouts above these key levels could offer high-probability opportunities for traders willing to manage risk closely. The coming days will be telling, especially as broader market sentiment remains supportive and capital continues to flow into large-cap leaders. For now, both stocks deserve a spot on the watchlist, with alerts set for those critical breakout prices.
Zacks' Research Chief Names "Stock Most Likely to Double"
Our team of experts has just released the 5 stocks with the greatest probability of gaining +100% or more in the coming months. Of those 5, Director of Research Sheraz Mian highlights the one stock set to climb highest.
This top pick is a little-known satellite-based communications firm. Space is projected to become a trillion dollar industry, and this company's customer base is growing fast. Analysts have forecasted a major revenue breakout in 2025. Of course, all our elite picks aren't winners but this one could far surpass earlier Zacks' Stocks Set to Double like Hims & Hers Health, which shot up +209%.
Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report
This article originally published on Zacks Investment Research (zacks.com).
Zacks Investment Research