This week for Stealth Trades I am focusing on stocks in three prime markets that are experiencing continued heavy demand for their products and services.
And with the underlying great fundamental sales and profits – I’ve also been able to focus on buyable stocks – those that have recently triggered and can be bought at current prices right now!
The key is that each of these stocks are good to buy now – and are currently trading well – fully set up to profit for this week and beyond. So, no need to wait, as each of the new stocks is good to buy now.
Louisiana-Pacific (LPX)
Louisiana-Pacific (LPX) is the Nashville, Tennessee-based company focused on homebuilding supplies and components. Home building continues to remain heavy in demand around the US and this continues to drive this company’s sales and earnings ever higher.
Daily Chart of Louisiana-Pacific (LPX)— Source: TradingView
And here’s how the stock sets up:
• Surge score: 91/100
• % Above 52-wk low: 106%
• MFI reading: 71
• Sales growth: +53%
• Triple momentum: yes
LPX is seeing huge double and triple-digit growth this year. Earnings were up 148% last quarter on a 53% increase in sales.
The stock exploded up by more than 476% from March 2020 through May of this year. Since then, shares have taken a breath and consolidated in a nice tightening pattern.
Shares broke out on Thursday, so LPX is buyable here at the $68-$69 area.
Hayward Holdings (HAYW)
Hayward Holdings (HAYW)a leading manufacturer and supplier of pool equipment including automated cleaning and maintenance devices. Pools are strongly in demand for both commercial and private home markets. And Hayward continues to benefit from the demand with rising sales and profits.
Daily Chart of Hayward Holdings (HAYW)— Source: TradingView
Here’s how the stock sets up:
• Surge score: 91/100
• % Above 52-wk low: 76.9%
• MFI reading: 89
• Sales growth: +56%
• Triple momentum: yes
Haywood just completed a 6-month cup and handle pattern.
The stock broke out last week on high volume and is still within a few percent of the breakout level.
So far, price is holding, and pullbacks have been minimal – a good sign that profit-taking is minimal and there is a good chance for continuation higher.
Adobe (ADBE)
Adobe (ADBE)is the ubiquitous software company that dominates the market for PDF files as well as PhotoShop and other services. It continues to benefit from the remote work phenomena that the company and its document management and other services enable for success from anywhere.
Daily Chart of Adobe Inc (ADBE) — Source: TradingView
Here’s how the stock sets up:
• Surge score: 85/100
• % Above 52-wk low: 66.1%
• MFI reading: 59
• Sales growth: +22%
• Triple momentum: yes
Adobe took a dip in late September, but shares came roaring back quickly.
ADBE made new highs on Friday after several days of light volume at the resistance level.
This is textbook breakout behavior after two weeks of absorbing sellers and working through pent-up supply.
I would ideally buy ADBE below $700 with a stop beneath the swing low.
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Lastly, don’t forget to check out my recent article, How to Follow My Weekly Trades if you’re new to Stock SurgeDaily or just want a refresher.
Live Coaching Session
Monday, at 3:00 p.m. EDT, we’ll be hosting our regular weekly coaching session for Stealth Trades.
We’ll send you a log in reminder that morning, just so you don’t forget.
We’ll cover all of our new stocks on the Watchlist as well as the rest of the stocks inside Stealth Trades.
You need to attend this session to get the most from your subscription.
The S&P 500 had its first down week after a solid five-week advance, although it wasn’t much to write home about.
At this week’s low, the index wasn’t even down 2% from its all-time high.
And Friday’s 0.7% rebound brought the weekly loss back to only 0.3%.
The losses were a bit heavier for the Nasdaq, at 1%, and for the Russell 2000 small-caps, which fell 1.2%.
But overall, volatility has been low…
Even as headlines hype up fears of tapering (slowed bond-buying) and inflationary forces that recently showed up in consumer price data.
And that’s showing up in the S&P 500 Volatility Index (VIX) again, as we talked about a week ago.
Volatility Check-Up
At the time, we said that “the VIX has settled into the bottom of its range at the 15-16 area.”
Well, during this week’s retracement, the VIX tried to break out of that range but quickly failed at its overhead moving averages.
Daily Chart of S&P 500 Volatility Index (VIX) — Source: TradingView
In the daily chart above, you can see how the VIX was never able to close above its 200-day moving average and only closed above its 50-day moving average for one session.
This was a good tell that the bulls were still in control of the market and that this week’s drawdown wouldn’t get too serious.
In the daily chart above, you can see how the VIX was never able to close above its 200-day moving average and only closed above its 50-day moving average for one session.
This was a good tell that the bulls were still in control of the market and that this week’s drawdown wouldn’t get too serious.
Lightwave Logic, Inc. (LWLG) is a $1.4 billion company in the business of developing and selling proprietary electro-optic polymers that allow for higher speeds and better efficiency in transmitting data.
Here’s how the chart is setting up:
Daily Chart of Lightwave Logic, Inc. (LWLG) — Source: TradingView
And here’s how the stock is setting up with my Stealth System:
Surge score: 86/100
% Above 52-wk low: 2,104%
MFI reading: 79
Sales growth: N/A
Triple momentum: yes
From a technical perspective, LWLG has been an absolute monster in the second half of 2021.
Shares are up over 2,100% from their lows and could be on the cusp of a fresh break higher.
After a meteoric rise in June, shares began to consolidate in a classic compression pattern with resistance just below the $14 level.
The stock has been absorbing supply for the last week, so there should be minimal resistance once it breaks out.
A move above $14.00 will trigger me to buy.
North Shore Global Uranium Mining ETF
The$330 million North Shore Global Uranium Mining ETF (URNM) tracks a basket of uranium companies focused on mining, exploration, development and production.
It also includes companies that hold physical uranium or royalties and other non-mining assets.
The top 10 holdings make up about 75% of assets and include Cameco Corporation (CCO.TO), Sprott Physical Gold Trust (PHYS.TO) and Yellow Cake plc (YCA.L).
Here’s how the chart is setting up:
Daily Chart of North Shore Global Uranium Mining ETF (URNM) — Source: TradingView
And here’s how the stock is setting up with my Stealth System:
Surge score: 98/100
% Above 52-wk low: 251%
MFI reading: 60
Sales growth: N/A
Triple momentum: yes
I generally pick individual stocks over ETFs, but this set-up is extremely clean.
Three successively shallower dips have created a tight entry point on new highs above $104.00.
Most of the names in the uranium space have either already broken out or require a wider stop.
Uranium Energy Corp. (UEC), for example, broke out in late October, and the stock has already run 48.8% since then.
Ur-Energy Inc. (URG) is another uranium stock you could look at.
It trades for just $2 per share, which takes away some of the institutional buying power that could help propel the stock.
But the chart set-up is almost identical to URNM.
Academy Sports and Outdoors, Inc.
Academy Sports and Outdoors, Inc. (ASO) is the popular retailer of sporting goods and outdoor recreation gear, including camping, hunting and fishing equipment.
First founded in 1938, the company now has nearly 260 retail locations in 16 states and three distribution centers in Texas, Georgia and Tennessee.
Here’s how the chart is setting up:
Daily Chart of Academy Sports and Outdoors, Inc. (ASO) — Source: TradingView
And here’s how the stock is setting up with my Stealth System:
Surge score: 96/100
% Above 52-wk low: 216%
MFI reading: 64
Sales growth: +12%
Triple momentum: yes
Despite being around for as long as I can remember, ASO didn’t go public until last year.
The stock was immediately popular with investors who have shown a strong appetite for the shares.
ASO is up almost 4X in just over a year with no signs of slowing down.
And with a market cap of just $4.2 billion, I think it has plenty of room left to grow.
Sales and earnings are both growing at a healthy double-digit clip. The firm has also beat analyst estimates every quarter.
Volume looks healthy, and we are seeing more up days on volume than down – a good sign that the stock is still under institutional accumulation.
At the end of 2020, only 113 funds owned the stock. But as of September, that number grew to 390, and I suspect it is even higher today.
I’m looking to buy ASO on a new high above $48.20 with a stop at $44.70.
Steel Dynamics, Inc.
Steel Dynamics, Inc. (STLD) is the $13.1 billion steel producer and metal recycler headquartered in Fort Wayne, Indiana.
The spike in commodity prices coupled with a boom in construction has been fruitful for the company.
Market bulls continued to stampede the bearish camp this week as the S&P 500 index notched a huge gain of 2.2% — its largest weekly run since June.
The buying has been relentless for the general stock market over the last five weeks, with the gains only accelerating to the upside.
This week’s action brings the total gain for the past five weeks to 8.2% for the S&P and 11.6% for the Nasdaq.
And for the smaller-cap stocks that we like to trade, the five-week gain for the Russell 2000 small-cap index is 8.8%, with a big breakout this week.
Daily Chart of Russell 2000 Index (RUT) with 50-day (Red) and 200-day (Blue) Moving Averages — Source: TradingView
As you can see in the chart above, the index rallied above the previous all-time highs set back in March thanks to the ongoing bullish push.
Notice how the index contended with and held both its 50- and 200-day moving averages (blue and red lines on the chart) before breaking higher.
It’s also a good sign that the 50-day average is beginning to turn higher again after flattening out for several weeks.
Furthermore, if we look at a weekly chart of the S&P 500 Volatility Index (VIX), you can also see the bullish action.
Weekly Chart of S&P 500 Volatility Index (VIX) — Source: TradingView
On a weekly timeframe, the VIX has settled into the bottom of its range at the 15-16 area.
And while the VIX did tick up slightly during Friday’s session, the overall picture doesn’t indicate that traders are worried about any sharp declines in the market right now.
With that in mind, I have four new picks for the Watchlist below that have not yet followed the market to new highs.
However, each of them look primed from a technical standpoint to break out of key consolidation patterns and ride the market to the upside.
TechTarget, Inc.
TechTarget, Inc. (TTGT) is an enterprise software company focused on providing intent-driven market and sales data for business-to-business (B2B) companies.
Here’s how the chart is setting up:
Weekly Chart of TechTarget, Inc. (TTGT) — Source: TradingView
And here’s how the stock is setting up with my Stealth System:
Surge score: 88/100
% Above 52-wk low: 103%
MFI reading: 72
Sales growth: +92%
Triple momentum: yes
As you see in the weekly chart above, the stock is completing a large cup-and-handle pattern that started back in February.
This is one of the top-performing stocks in one of the strongest market sectors right now. TTGT also reported earnings last week and is now making new highs.
As of Friday morning, shares were trading in the $101 area. I would consider buying TTGT up to $103.00 and work a stop at $93.50.
Avid Technology, Inc.
Avid Technology, Inc. (AVID) is the $1.4 billion communication services company focused on developing software and solutions for audio and video content creation, management and distribution, including cloud products and shared storage systems.
Here’s how the chart is setting up:
Daily Chart of Avid Technology, Inc. (AVID)— Source: Trading View
And here’s how the stock is setting up with my Stealth System:
Surge score: 93/100
% Above 52-wk low: 201%
MFI reading: 60
Sales growth: +20%
Triple momentum: no
After soaring over 800% in just 16 months, AVID stock took a much-needed breath.
The 40% retracement caused the short-term trend to turn down. But after finding support at the 200-day moving average, things appear to be trending higher once again.
Price action has tightened, and traders can now buy the breakout while risking just 9%.
I will be looking to buy AVID at $30.85 and targeting a gap fill up to the $36 area. You can use $27.80 for a stop.
Pure Storage, Inc.
Pure Storage, Inc. (PSTG) is another $8 billion technology and data storage solutions provider. It also operates cloud-based data and artificial intelligence-ready infrastructure products and subscription-based services.
Here’s how the chart is setting up:
Daily Chart of Pure Storage, Inc. (PSTG) — Source: Trading View
And here’s how the stock is setting up with my Stealth System:
Surge score: 88/100
% Above 52-wk low: 62.9%
MFI reading: 67
Sales growth: +23%
Triple momentum: yes
PSTG is giving us a pattern inside a pattern.
From a longer-term perspective, you can see the large cup-and-handle formation that is just beginning to break out.
At the same time, a zoomed in view of the last two months shows our traditional consolidation pattern with price tightening from left to right.
The flash-based storage systems provider is two weeks out from earnings, so we have some time on this one.
If I can get a nice profit cushion before the Nov. 24 announcement, I would be comfortable holding through earnings.
The $27.50 pivot price was hit last week, so PSTG is an active buy below $28.00. Work a stop loss at $25.35.
Enviva Partners, LP
Given the political climate right now, alternative energy stocks are quickly coming back into favor.
And Enviva Partners, LP (EVA) is the world’s largest producer of industrial wood pellets – a low carbon alternative to fossil fuels.
The company also announced a 10-year renewable natural gas offtake agreement last month with GreenGasUSA. The deal is estimated to eliminate more than 64,000 metric tons of carbon dioxide equivalent from the atmosphere annually.
While today’s session ended relatively flat, this week was another one for the record books.
The S&P 500 ended the week higher by 1.3% and set a new all-time high of 4,608.08, while the Nasdaq 100 jumped 3.2% to set its own all-time high of 15,504.12.
That’s largely thanks to the strong earnings reports we saw from tech giants Alphabet Inc. (GOOGL) and Microsoft Corp. (MSFT), which are some of the highest-weighted stocks in the Nasdaq.
Mixed Results
Investors were also expecting strong results from Apple Inc. (AAPL) and Amazon.com, Inc. (AMZN), but both stocks ended up showing underwhelming numbers that sent their stocks lower today.
AMZN posted earnings per share of $6.12 versus the expected reading of $8.92, while revenue of $110.81 billion fell short of the expected $111.60 billion reading.
The company also provided guidance for the fourth quarter that was below estimates as it cited rising costs from labor shortages, higher employee and shipping costs and, of course, global supply chain constraints.
AAPL also cited supply constraints and chip shortages during the third quarter as well as COVID-related manufacturing disruptions.
The company managed to meet expectations on earnings per share, but the revenue figure of $83.36 billion also fell short of the expected reading of $84.85 billion.
So, it was a mixed bag for the mega-cap tech stocks this week. While we don’t focus on stocks of that size here in Stealth Trades, it’s still important to keep an eye on the world’s largest companies given the weight they carry in the major indexes.
As far as the Russell 2000 small-caps go, the index is still stuck in the large sideways channel that started to form back in February. But that doesn’t mean there aren’t opportunities among small companies.
In fact, I have three great new small-caps that have just been added to my Watchlist, so let’s get into them now…
Oramed Pharmaceuticals Inc.
Oramed Pharmaceuticals Inc. (ORMP) is a pharmaceutical company focused on the development of oral drug delivery systems – most notably, insulin capsules for the treatment of type 2 diabetes.
This is an exciting development for the medical community and anyone required to inject themselves with insulin.
On Friday, the company announced that its majority-owned subsidiary, Oravax Medical, received clearance to begin Phase 1 clinical trials of its oral COVID-19 vaccine in South Africa.
Needless to say, there is plenty of news to keep interest alive and demand high for shares of ORMP.
Here’s how the chart is setting up:
Daily Chart of Oramed Pharmaceuticals Inc. (ORMP) — Source: TradingView
And here’s how the stock is setting up with my Stealth System:
Surge score: 99/100
% Above 52-wk low: 850%
MFI reading: 58
Sales growth: +0%
Triple momentum: yes
As a clinical-stage firm, there are no sales or earnings to analyze. But institutional investors appear to be getting interested.
At the end of last year, only 12 funds owned the stock. Last quarter, that number had jumped to 92.
I’m looking to buy ORMP on a move above $23.98. Depending on one’s risk tolerance, you could place a tight stop at $22.70 or give it room and use $21.30.
Revolve Group, Inc.
Revolve Group, Inc. (RVLV) is a Cerritos, California-based online fashion retailer that aims to connect consumers and global fashion influencers.
The company’s platform carries trendy luxury brand apparel, shoes and accessories and works with social media influencers to build and promote those brands.
Here’s how the chart is setting up:
Daily Chart of Revolve Group, Inc. (RVLV) — Source: TradingView
And here’s how the stock is setting up with my Stealth System:
Surge score: 97/100
% Above 52-wk low: 296%
MFI reading: 48
Sales growth: +60%
Triple momentum: yes
You may remember this stock from the Oct. 18 Watchlist. Those who followed the trade should be up a little over 4%.
But we haven’t yet seen the large surge that I am still expecting.
In fact, price contracted even further over the last two weeks and set up what I believe is an even better entry.
I have a buy stop order set at $75.15. That is my entry trigger.
Once filled, I will work a sell stop at $69.40.
Century Casinos, Inc.
Century Casinos, Inc. (CNTY), as the name implies, is a worldwide casino entertainment company.
In addition to traditional casinos, the company also develops and operates lodging, restaurant, horse racing and other entertainment facilities like bars, showrooms, event venues and even comedy clubs.
Here’s how the chart is setting up:
Daily Chart of Century Casinos, Inc. (CNTY) — Source: TradingView
And here’s how the stock is setting up with my Stealth System:
Surge score: 96/100
% Above 52-wk low: 216%
MFI reading: 57
Sales growth: +155%
Triple momentum: yes
After climbing more than 14-fold off its COVID-induced lows, CNTY began to consolidate in June. It has formed a robust base with corrections shrinking from 32% down to 6%.
The company has beaten earnings expectations by a wide margin in each of the last five quarters.
It is scheduled to report again on Nov. 5, before the market opens, and I wouldn’t be surprised to see another blowout number.
I will be looking to buy on new highs with a stop below the swing low.
Pure Storage, Inc.
Pure Storage, Inc. (PSTG) is a data storage and management company. It offers proprietary software platforms and enterprise-class storage services, such as data reduction, encryption and protection as well as storage, data protection and security and recovery/backup services for cloud-based applications.
As more and more companies migrate to cloud-based systems, this company should benefit.
Here’s how the chart is setting up:
Daily Chart of Pure Storage, Inc. (PSTG) — Source: TradingView
And here’s how the stock is setting up with my Stealth System:
Surge score: 88/100
% Above 52-wk low: 67.1%
MFI reading: 65
Sales growth: +23%
Triple momentum: yes
In late August, PSTG made a big move higher on better-than-expected earnings numbers. More importantly, it has held that gain.
Shares continued to drift higher through September, and the only profit-taking was a small 10% retracement.
Volume has dropped significantly, and price action has gotten very tight – both good signs for a potential breakout.
The stock is now approaching its highs. I will consider buying a move above $27.50 with a stop at $25.35.
Live Coaching Session
Monday, at 3:00 p.m. EDT, we’ll be hosting our regular weekly coaching session for Stealth Trades.
We’ll send you a log in reminder that morning, just so you don’t forget.
We’ll cover all of our new stocks on the Watchlist as well as the rest of the stocks inside Stealth Trades.
You need to attend this session to get the most from your subscription.
In Thursday’s issue of Stock Surge Daily, my free daily newsletter, we talked a bit about theCBOE Volatility Index (VIX).
The VIX is known as the market’s “fear gauge.”
Without getting into the details of how it is calculated, what you need to know is that the VIX essentially tells you how fearful traders are about a drop in the market over the next 30 days.
When the VIX is high, it tells you that traders are expecting the market to be relatively volatile.
When the VIX is low, like it is right now at the 15 level, it tells you that traders are not expecting much volatility.
So, it makes total sense that as the VIX has dropped nearly 35% so far in October, the markets have rallied sharply.
The benchmark S&P 500 Index is up 5.7% for the month as of this writing, and it has enjoyed eight up-days in a row.
It even set a new all-time high today at 4,559.67.
So, before we get to my latest picks, I want to quickly review a few of the stocks we’ve been working with over the past week.
First up was Heritage-Crystal Clean, Inc. (HCCI), which is up 14% from my recommended entry point.
Daily Chart of Heritage-Crystal Clean, Inc. (HCCI) — Source: TradingView
Next up was Revolve Group, Inc. (RVLV), which jumped 5% and is now finding support near our original entry point.
I’m looking for the stock to follow through and continue making new highs.
Daily Chart of Revolve Group, Inc. (RVLV) — Source: TradingView
Finally, there was Veritiv Corporation (VRTV), which spiked 5.9% during Tuesday’s breakout, pulled back and then proceeded to push higher.
It is up 4.6% as of Friday morning.
Daily Chart of Veritiv Corporation (VRTV) — Source: TradingView
These are some spectacular results, and I hope you were able to take advantage of some or all of these moves.
I’m hoping for similar results over the coming week, so now let’s check out the stocks that made it onto this week’s Watchlist.
Full House Resorts, Inc.
Full House Resorts, Inc. (FLL) is an owner and operator of casinos and related hospitality and entertainment facilities in the United States.
These include Mississippi’s Silver Slipper Casino and Hotel, Colorado’s Bronco Billy’s Casino and Hotel, Indiana’s Rising Star Casino Resort and Nevada’s Stockman’s Casino and Grand Lodge Casino.
The company also recently proposed a new $250 million gaming and entertainment destination in Indiana called “American Place.”
Here’s how the chart is setting up:
Daily Chart of Full House Resorts, Inc. (FLL) — Source: TradingView
And here’s how the stock is setting up with my Stock Surge Indicator (SSI):
So far, the stock has pulled back 9% in the handle. The low of the handle move is where I would place my stop.
Then, the entry trigger will be a break of the handle trend line.
I like to see price break the last few days’ highs, which right now would mean buying on a move above $11.55.
Teradata Corporation
Teradata Corporation (TDC) provides hybrid cloud analytics software through its Teradata Vantage platform as well as software, hardware and support services.
It also operates a business consulting division for businesses looking to establish an analytical vision and identify analytical opportunities that can help deliver value to their customers.
It serves a range of industries from financial services and healthcare to manufacturing and retail.
Here’s how the chart is setting up:
Daily Chart of Teradata Corporation (TDC) — Source: TradingView
And here’s how the stock is setting up with my SSI:
There has also been a noticeable dip in volume during the final leg of this consolidation.
TDC just hit my entry trigger at $58.65 at the time of this writing on Friday morning.
As long as price has not gotten extended by Monday’s open, this should be a good entry point.
I suggest working a stop just beneath the swing low at $54.10.
Veeco Instruments Inc.
Veeco Instruments Inc. (VECO) is a developer and manufacturer of semiconductor and thin film process equipment that is used to build electronic devices.
Integrated device manufacturers use VECO’s products to make microelectronic components like logic boards, dynamic random-access memory (RAM) and other semiconductor devices that are in high demand and short supply around the world right now.
Here’s how the chart is setting up:
Daily Chart of Veeco Instruments Inc. (VECO) — Source: TradingView
And here’s how the stock is setting up with my SSI:
Surge score: 79/100
% Above 52-wk low: 89.2%
MFI reading: 49
Sales growth: +48%
Triple momentum: yes
I love the technical setup on VECO right now.
After a 140% surge over a nine-month span, shares retraced by 20%.
Pullbacks got progressively shallower and formed clear resistance at the $24.00 level.
There appears to be a lot of supply at this level, but theprice compression suggests the market is working through those sell orders.
If VECO can clear the $24.00 level, there should be little resistance for a quick move higher.
Also, you only need to risk about 5% to potentially see a nice win.
Tronox Holdings plc
Tronox Holdings plc (TROX) is a chemical company that manufactures Titanium dioxide (TiO2) pigment, which is an inorganic white pigment that is commonly used in paints, coatings, paper and plastics.
Strength in residential construction and increased demand from the healthcare and packaging markets for the company’s chemicals should be supportive for the company’s fundamentals.
Here’s how the chart is setting up:
Daily Chart of Tronox Holdings plc (TROX) — Source: TradingView
Surge score: 95/100
% Above 52-wk low: 212%
MFI reading: 70
Sales growth: +60%
Triple momentum: yes
From a technical perspective, TROX is showing a lot of strength. Shares are up 54% since August.
Additionally, pullbacks have been shallow and quickly recovered to new highs – a sign that large investors are likely buying into any waves of profit-taking.
Price has gotten extremely tight over the last week, and a new breakout seems highly probable.
I’ll be looking to buy on a move above $26.20 with a stop at $23.95.
Establishment Labs Holdings Inc.
Establishment Labs Holdings Inc. (ESTA) is a medical technology company that manufactures and sells medical devices used for aesthetic and reconstructive plastic surgery.
The company is primarily focused on silicone gel-filled breast implants, but it also sells 3D surgical simulation systems that help plastic surgeons consult and plan for and with pre-surgical patients.
Daily Chart of Establishment Labs Holdings Inc. (ESTA) — Source: TradingView
Surge score: 94/100
% Above 52-wk low: 230%
MFI reading: 53
Sales growth: +206%
Triple momentum: yes
Technically speaking, if you look at what ESTA has done over the last 12 months, you will see why it has such a high surge score.
In fact, the only reason it is not a 99/100 is that it has been consolidating for several months.
The stock is about halfway through a cup and handle formation, and thanks to the $80 resistance level, we have a chance to enter early.
There is clear supply around the $80 mark, so it is crucial not to buy until this price is breached.
The entry trigger is $80.25, and I’ll be using Friday’s low ($75.04 as of Friday morning) as my stop loss.
Live Coaching Session
Monday, at 3:00 p.m. EDT, we’ll be hosting our regular weekly coaching session for Stealth Trades.
We’ll send you a log in reminder that morning, just so you don’t forget.
We’ll cover all of our new stocks on the Watchlist as well as the rest of the stocks inside Stealth Trades.
You need to attend this session to get the most from your subscription.
Third-quarter earnings season has officially kicked off here in the US, and so far traders are taking the results fairly well.
The big bank earnings we’ve seen so far have largely beaten estimates on the top and bottom lines, although there are still some issues under the surface, including weakness in loan growth and net interest margin.
As earnings season progresses, we could hear more about supply chain issues and cost challenges from companies, which could put a damper on investor enthusiasm.
But there was also some positive economic data this week that has been helping to push stocks higher.
For example, retail sales data for September came in ahead of expectations with a rise of 0.7% last month. That follows a revised gain of 0.9% in August.
There was also some positive news for the job market, as weekly jobless claims in the US dropped to a new pandemic-era low of 293,000. At the same time, continuing claims dropped to 2.59 million, which also beat estimates.
These numbers are still well above pre-pandemic levels, but they’re a step in the right direction.
What to Watch This Week
On the other hand, the International Monetary Fund cut its 2021 forecast for US gross domestic product (GDP) this week to 6% from 7% due to supply chain disruptions.
While that is still a very high reading, the pace of growth is clearly slowing as the US works its way out of the pandemic slump.
That hasn’t stopped the bulls from buying the market this week, though.
The technical picture for the major indexes has certainly improved since last week, with the S&P 500 and Dow Jones indexes trading back above their key 50-day moving averages.
The Nasdaq is still struggling to reclaim that level, but it is set to close higher this week by over 2% nonetheless.
And with the CBOE S&P 500 Volatility Index (VIX) — known as the market’s “fear gauge” — making a sharp reversal to the downside and now trading under the 16 level again, it certainly seems like the bulls are taking back control.
With that in mind, we have a number of great setups forming this week, so let’s dive right in.
Heritage-Crystal Clean, Inc.
Heritage-Crystal Clean, Inc. (HCCI) is an Elgin, Illinois-based waste management company. It provides parts cleaning, hazardous waste removal and used oil collection services to industrial and vehicle maintenance companies.
The environmental services part of the business performs containerized waste management, vacuum truck, antifreeze recycling as well as field services. The oil business segment collects used oil products, sells recycled fuel oil and re-refines used oil into lubricant and other base oil products.
Here’s how the chart is setting up:
Weekly Chart of Heritage-Crystal Clean, Inc. (HCCI) — Source: TradingView
And here’s how the stock is setting up with my Stealth System:
Surge score: 85/100
% Above 52-wk low: 109%
MFI reading: 62
Sales growth: +47%
Triple momentum: yes
From a technical perspective, HCCI stock nearly doubled in the first half of the year before forming a large consolidation base as you can see in the weekly chart above.
After bouncing off its 200-day moving average line in mid-September, trading has become tight and limited to a 4.5% range.
This has provided a low-risk area from which to enter a new long should HCCI trade above $30.30.
Those looking for a longer-term swing trade could give this one a bit more room by placing a stop beneath the September low at $26.75.
Revolve Group, Inc.
Revolve Group, Inc. (RVLV) is a Cerritos, California-based online fashion retailer that aims to connect consumers and global fashion influencers.
The company’s platform carries trendy luxury brand apparel, shoes and accessories and works with social media influencers to build and promote those brands.
Here’s how the chart is setting up:
Daily Chart of Revolve Group, Inc. (RVLV) — Source: TradingView
And here’s how the stock is setting up with my Stealth System:
Surge score: 97/100
% Above 52-wk low: 288%
MFI reading: 48
Sales growth: +60%
Triple momentum: yes
With a 97/100 Surge Score, RVLV is clearly a top performer. Shares have more than tripled over the last year and have finally taken a breath.
Earnings were up by triple digits in each of the last four quarters, and institutions are piling in, with 179 funds owning the stock at the end of 2020. By last quarter, that number had grown to 403.
According to my wife, the online women’s fashion retailer is indeed popular. Accelerating sales growth seems to confirm her opinion.
I would like to see the stock price get even tighter with another shallower pullback. This would set up an even lower-risk entry point.
But I’ll be looking to buy a move above $71.10 whether it happens this week or some time in the near future.
Veritiv Corporation
Veritiv Corporation (VRTV) is the Atlanta, Geogia-based business-to-business supplier of packaging, publishing and hygiene products.
It offers value-added packaging products and services like custom packaging solutions, and it also sources and sells cleaning products like commercial cleaning chemicals, personal protective equipment and sanitary maintenance supplies.
Here’s how the chart is setting up:
Daily Chart of Veritiv Corporation (VRTV) — Source: TradingView
And here’s how the stock is setting up with my Stealth System:
Surge score: 99/100
% Above 52-wk low: 605%
MFI reading: 67
Sales growth: +18%
Triple momentum: yes
Veritiv has been an absolute monster this year. Shares doubled in March and then continued to press higher all the way through last week.
A series of tightening bases followed by clean breakouts has delivered a 6X return to patient investors.
The recent pattern of higher highs and higher lows despite shaky market conditions demonstrates the strength of this stock.
RVLV is the top-performing stock in its sector with a 99/100 surge score.
Each of the prior base breakouts was accompanied by high volume, so I’d like to see a volume spike if and when shares hit my $100.05 buy point.
RBB Bancorp
RBB Bancorp (RBB) is known as the Royal Business Bank and is based in the Los Angeles California area. It was founded by a cadre of banking veterans in the aftermath of the 2007-2008 financial crisis in the US that particularly impacted local businesses in the Southern California markets.
The bank is focused on Chinese, Korean and other Asian business and retail customers – with a particular focus on more recent immigrants to the US market. It has a particular knowledge and first-hand experience with its demographics, and this works well in attracting customers as well as investors.
Loans are the lifeblood of banks, and this is where RBB Bancorp is actually topping its larger peers with loan growth that has gone from $1.1 billion to the currently reported $2.3 billion over the trailing five years.
And this aids its overall asset growth that’s now reported at $3.4 billion – up from $1.4 billion again over the past five years.
Operating income is up, with the most recent quarter showing a gain of 4.46%, and it does it with an impressive operating margin rate of 30.80% that’s impressive for a local community-based financial.
Here’s how the chart is setting up:
Daily Chart of RBB Bancorp (RBB) — Source: TradingView
And here’s how the stock is setting up with my Stealth System:
Surge score: 91/100
% Above 52-wk low: 118%
MFI reading: 61
Sales growth: +11%
Triple momentum: yes
RBB sales growth is a bit lower than I would prefer. But earnings are soaring – up 80% and 97%, respectively, in the last two quarters.
With a market cap of less than $500 million, the stock is almost completely off Wall Street’s radar.
The stock began to consolidate in June, and pullbacks are now contained to just 4.6%.
Should RBB break out to new highs, I would be looking to buy at $26.00 with a stop loss at $24.80 for a nice low-risk trade.
Ally Financial Inc.
Ally Financial Inc. (ALLY), based in Detroit, Michigan, is the former spin-off of General Motors Acceptance Corporation Finance (GMAC) that continues to grow as an innovative financial and banking company for consumer and business banking and financial services.
The company offers automobile finance, mortgage and other lending services as well as deposit and other savings and investment products – along with an insurance arm for its customers.
Loan growth for Ally follows its larger peers with a drop over the past year by 0.76%. And in turn, its assets have dropped over the trailing four years by 2.17%.
But fee and interest income are up, with overall income growth running for the current quarter by 2.80%. And while it does operate with a higher level of costs, it manages to deliver an operating margin of 11.92% that is not too bad for the current US banking market.
The key for Ally is that banks are getting bought by traders and investors with normalizing interest rates and bond yields now and going forward.
Here’s how the chart is setting up:
Daily Chart of Ally Financial Inc. (ALLY) — Source: TradingView
And here’s how the stock is setting up with my Stealth System:
Surge score: 86/100
% Above 52-wk low: 106%
MFI reading: 45
Sales growth: -2%
Triple momentum: yes
Similar to RBB, Ally does not have the sales growth I would prefer.
But unlike retailers, investors give banks and financial stocks more weight on earnings. And Ally’s earnings are up 209%.
Technically, the stock is showing a nice compression pattern with shallower retracements from left to right.
Traders now have the chance to buy the breakout and risk less than 7% to see if it has legs.
I would use a buy stop order at $54.50 with a stop loss at $50.75.
Live Coaching Session
Monday, at 3:00 p.m. EDT, we’ll be hosting our regular weekly coaching session for Stealth Trades.
We’ll send you a log in reminder that morning, just so you don’t forget.
We’ll cover all of our new stocks on the Watchlist as well as the rest of the stocks inside Stealth Trades.
You need to attend this session to get the most from your subscription.
I have just wrapped up my latest Watchlist inside Stealth Trades. And we have some interesting stocks that are performing under the radar of the general stock market.
They are providing us with some great opportunities to buy just before others are catching on to the big drivers for profits that I see as very much underway.
The new Watchlist is filled with great stocks, so read through my write ups and be ready to buy at the right price levels.
Monday, at 3:00 p.m. EDT, we’ll be hosting our regular weekly coaching session for Stealth Trades.
I will be recapping our portfolio and going through the newest stocks added to the Watchlist.
You really need to attend these with me to get the full benefit of your subscription.
We’ll send you a log-in reminder that morning, just so you don’t forget.
Now, here are the introductions for some the stocks coming at you in Stealth Trades:
A Focused Communications Company
Our first stock is a Santa Monica, California-based broadcasting and communication services company. It operates television, radio and digital business segments, with 54 television stations and 48 Spanish-language radio stations.
It also offers digital advertising solutions and operates a segment that sells ads and syndicate radio programming.
Here’s how the chart is setting up:
And here’s how the stock is setting up with my Stealth System:
Surge score: 98/100
% Above 52-wk low: 331%
MFI reading: 58
Sales growth: +295%
Triple momentum: yes
From a technical perspective, the stock has made a series of higher highs and higher lows for the last five months.
The stock is up big, and traders finally have a low risk point from which to enter.
Sales and earnings have grown by triple digits in each of the last three quarters, and analysts are projecting further growth through 2022.
A pivot has formed at $7.73. And I’ll be using the Sept. 29 low as a stop.
A Biotech Battling Cancer
The next stock is a clinical-stage biopharmaceutical company that focuses on developing and commercializing cancer immunotherapy drugs.
Its product pipeline currently includes drugs for the treatment of prostate and pancreatic cancers as well as those that specifically target tumor cells while minimizing harmful effects on healthy tissue.
Here’s how the chart is setting up:
And here’s how the stock is setting up with my Stealth System:
Surge score: 93/100
% Above 52-wk low: 92.4%
MFI reading: 70
Sales growth: +0%
Triple momentum: N/A
This is a recent initial public offering (IPO) forming its first base.
As an early-stage biotech, the company has no sales or earnings to evaluate, so we are putting a large emphasis on the price action.
IPOs have been hot this year. Several have delivered huge gains in the opening weeks and months, and this could easily be the next big winner.
My maximum risk is 10% on the trade. However, if you want to give it a little more room, you could work a stop beneath last Monday’s low at $9.40.
A Long-Standing Education Company
The next stock is a Boston, Massachusetts-based learning company that was founded all the way back in 1832.
It offers educational products like textbooks and digital courseware as well as printed and digital fiction and non-fiction consumer books, dictionaries and reference works to schools, libraries and businesses.
Here’s how the chart is setting up:
And here’s how the stock is setting up with my Stealth System:
Surge score: 99/100
% Above 52-wk low: 551%
MFI reading: 64
Sales growth: +43%
Triple momentum: yes
With a Surge Score of 99/100, this is the Lamborghini of stocks. It is in the elite top 1% of stocks outperforming all others in the market.
After an earnings gap higher in early August, shares have been consolidating in the textbook compression pattern with clear resistance.
Note the volume over the last two weeks. Down days saw very little volume while positive days experienced much higher volume.
This is a good sign, as it is likely indicative of further institutional accumulation. In other words, the big players are still buying it.
I will be looking to buy shares on a breakout to new high ground.
A Leading Casual Dining Restaurateur
Lastly, this Orlando, Florida company owns and operates a series of casual to higher-level restaurants around the US.
After being locked down or at least staying at home or closer to home, we’re all getting out and about. And this includes venturing back to getting a bite to eat with family and friends beyond our kitchens and dining rooms.
This company has specialty chains of sit-down restaurants that include iconic brands that are ubiquitous in suburban markets nearly everywhere.
Regardless of tastes or desires, from fish to steaks and chops as well as health-forward specialties, this company has the products to offer.
Here’s how the chart is setting up:
And here’s how the stock is setting up with my Stealth System:
Surge score: 80/100
% Above 52-wk low: 74%
MFI reading: 45
Sales growth: +51%
Triple momentum: yes
And it is getting customers rapidly again. Sales at its operations are up by 50.98% for the recent quarter and while not out of the woods, it is demonstrating how to run restaurants profitably in the current environment.
This includes food cost challenges, labor shortages as well as the newer regulatory measures. So, it is already proving that it knows how to deliver plates that its customers want and need at a profit.
Live Coaching Session
Monday, at 3:00 p.m. EDT, we’ll be hosting our regular weekly coaching session for Stealth Trades.
We’ll send you a log in reminder that morning, just so you don’t forget.
We’ll cover all of our new stocks on the Watchlist as well as the rest of the stocks inside Stealth Trades.
You need to attend this session to get the most from your subscription.
I have just wrapped up my latest Watchlist inside Stealth Trades. And we have some interesting stocks that are performing under the radar of the general stock market.
They are providing us with some great opportunities to buy just before others are catching on to the big drivers for profits that I see as very much underway.
The new Watchlist is filled with great stocks, so read through my write ups and be ready to buy at the right price levels.
Monday, at 3:00 p.m. EDT, we’ll be hosting our regular weekly coaching session for Stealth Trades.
I will be recapping our portfolio and going through the newest stocks added to the Watchlist.
You really need to attend these with me to get the full benefit of your subscription.
We’ll send you a log-in reminder that morning, just so you don’t forget.
An Invitation for Stealth Trades Subscribers
Thank you for reading and subscribing to Stealth Trades.
I hope that you’ve been cashing in on so many of the under the radar stocks that I’ve been presenting each and every week.
I want to draw your attention to another product that I work on focused on stocks with heavy buying by company management.
Insider Edge is focused companies that are not just set up for great trading surges – but are also getting loaded up by company management and board members known as insiders.
Insiders have the definitive information on their companies and their stocks…
So, following their lead when they buy can provide the ultimate advantage in trading stocks.
If you’ve made a dime from the stocks inside Stealth Trades, you owe it to yourself to try Insider Edge.
Now, here are the introductions for some the stocks coming at you in Stealth Trades:
A Great Behind-The-Scenes Business
Publicly traded companies have a huge number of regulatory requirements to comply with both inside the US and around the globe. This includes all sorts of data and other communications that have to get to investors from individuals to institutions – both in physical and virtual forms.
This company is a leader in this market that is not only a core necessity – it is also a cash cow business. Quarter by quarter, month by month and year by year, this company is contracted to deliver and manage all sorts of communications and data. And it gets paid well to do this.
This is one of the more lucrative behind the scenes businesses of Wall Street and the corporate world that is vital to the financial market – and it generates lots of revenue.
That revenue is steady and makes the company a dependable one for investors. And while margins are thin, it does so much volume that it delivers a good return on its own shareholders’ equity that is running at 16.70%.
And it runs itself responsibly with lots of cash on hand and limited debt.
And here’s how the stock sets up with my Stealth System:
Surge score: 95/100
% Above 52-wk low: 179%
MFI reading: 55
Sales growth: +5%
Triple momentum: yes
Sales growth is a bit lower than I would prefer, but earnings have seen tremendous growth of 59% in the most recent quarter. Earnings per share have been on the rise over the trailing five years by a compound annual growth rate (CAGR) of 17.18%.
Plus, the price action is very strong. With a surge score of 95/100, the stock is outpacing 95% of stocks in terms of relative strength.
Monday’s selloff created a shakeout to what looked like a pending breakout. That will likely only strengthen this setup since retail stops were hit, and shares are now concentrated into even fewer hands.
I would buy a break above $35.51 and use Tuesday’s low as a stop.
A Learned Company
This is an online education company with a focus on remote learning and tutoring.
It has both public and private institutions that contract with the company to provide its platform and services – that have become all the more vital over the past two years.
Revenue growth has been off of the charts from 2020 through to 2021 with the recent quarter’s gain of 47.81%.
And here’s how the stock sets up with my Stealth System:
Surge score: 80/100
% Above 52-wk low: 71.7%
MFI reading: 57
Sales growth: +48%
Triple momentum: yes
This stock was added to our watchlist last week but has not yet hit our entry point. Last Monday’s selloff was in line with previous dips in the stock, so the setup is still intact.
The weekly chart shows a clear pattern of compressing volatility with defined resistance at the $36 area.
Unlike a lot of setups, which are in the late stages of the run up that began last March, this stock is fresh off its lows.
This is a large, early-stage base formation that could lead to a surge of 50% or more, so I wanted to keep it on our buy list for the coming week.
Live Coaching Session
Monday, at 3:00 p.m. EDT, we’ll be hosting our regular weekly coaching session for Stealth Trades.
We’ll send you a log in reminder that morning, just so you don’t forget.
We’ll cover all of our new stocks on the Watchlist as well as the rest of the stocks inside Stealth Trades.
You need to attend this session to get the most from your subscription!
I have just wrapped up my latest Watchlist inside Stealth Trades. And we have some interesting stocks that are performing under the radar of the general stock market.
And we’re coming off of a great week with the quick booked gain for Penske Automotive Group (PAG).
We entered the trade on Sept. 15 at 90.11 and were able to exit with quick profits today, Sept. 17, at 96.47 for a gain of 7.06%.
This trade confirms that my stealth system continues to find all sorts of stocks from impressive companies that are not getting the needed attention just yet by the general stock market.
They are providing us with some great opportunities to buy just before others are catching on to the big drivers for profits that I see as very much underway.
The new Watchlist is filled with great stocks, so read through my write ups and be ready to buy at the right price levels.
Monday, at 3:00 p.m. EDT, we’ll be hosting our regular weekly coaching session for Stealth Trades.
I will be recapping our portfolio and going through the newest stocks added to the Watchlist.
You really need to attend these with me to get the full benefit of your subscription.
We’ll send you a log-in reminder that morning, just so you don’t forget.
Now, here are the introductions for some the stocks coming at you in Stealth Trades:
An Ever-Successful Investment Bank
The first company might sound like a mining company – but really it’s all about mining for greater investment deals as a leading New York-based bank.
The company is a deal maker. It works on mergers and acquisitions as well as a host of corporate deals. And it takes its deal making to another level with its investment management and trust services for institutional and other investors.
This year has been good for deal making. Revenue is up by 35.08% for the latest quarter and follows on from prior quarters’ similar good results.
And here’s how the stock sets up with my stealth system:
Surge score: 88/100
% Above 52-wk low: 128%
MFI reading: 47
Sales growth: +35%
Triple momentum: yes
The stock made a big move earlier this year before digesting the stock move and consolidating.
Profit-taking like this is both normal and healthy. And it now appears that selling has been exhausted.
Pullbacks have shrunken to just 4%, giving traders a low-risk entry point near 142.50.
A Learned Company
The next stock is from an online education company – with a focus on remote learning and tutoring.
It has both public and private institutions that contract with the company to provide its platform and services – that have become all the more vital over the past two years.
Revenue growth has been off of the charts from 2020 through to 2021 with the recent quarter’s gain of 47.81%.
And here’s how the stock sets up with my stealth system:
Surge score: 85/100
% Above 52-wk low: 72.1%
MFI reading: 64
Sales growth: +48%
Triple momentum: yes
2020 was a wild ride for shareholders. The stock soared 248% off the COVID lows, then gave nearly the whole move back in just five months.
But the uptrend has resumed. The 50-day moving average is above the 100-day, and the 200-day line has turned back higher.
So, we once again have triple momentum long and a new Stage 2 uptrend.
There is noticeable volume contraction for most of the last six weeks – a telltale sign that a big breakout could be imminent.
Price action has also tightened up nicely, giving traders the chance to buy a new 52-week high using just a 7% stop loss.
A Shipping Partner to Have Now
The next stock is from a dry bulk shipping company set up as a passthrough limited partnership.
Dry bulk shipping of commodities and other goods remains very strong in demand as the globe is catching up from last year’s lockdowns and is in need of countless goods that this company delivers over the high seas around the planet.
With unlocking and the swift recovery in demand for shipping underway, revenue for the company has surged for the recent quarter by 226.56%.
And here’s how the stock sets up with my stealth system:
Surge score: 98/100
% Above 52-wk low: 439%
MFI reading: 60
Sales growth: +227%
Triple momentum: yes
The stock was a big performer in the first half of the year.
Shares finally ran out of steam around the $36 mark and began forming a cup and handle pattern that is nearing completion.
Sales were up huge last quarter, and earnings are on track to be better than they have reported in a decade.
The maritime transport sector is red hot right now. Competitor stocks like Euroseas (ESEA) and ZIM Integrated Shipping (ZIM) are flying, and this stock could be the next big mover.
Funds are crowded into the bigger names like Danaos (DAC), which is in container ships and not dry bulk, but they own only 2% of this company’s outstanding shares as of last quarter.
I’d be looking to buy above 31.50 and risk 10% on the trade.
Live Coaching Session
Monday, at 3:00 p.m. EDT, we’ll be hosting our regular weekly coaching session for Stealth Trades.
We’ll send you a log in reminder that morning, just so you don’t forget.
We’ll cover all of our new stocks on the Watchlist as well as the rest of the stocks inside Stealth Trades.
You need to attend this session to get the most from your subscription.
I have just wrapped up my latest Watchlist inside Stealth Trades. And we have some interesting stocks that are performing under the radar of the general stock market.
My stealth system continues to find all sorts of stocks from impressive companies that are not getting the needed attention just yet by the general stock market.
And so, these are providing us with some great opportunities to buy just before others are catching on to the big drivers for profits that I see as very much underway.
The new Watchlist is filled with great stocks, so read through my write ups and be ready to buy at the right price levels.
Monday, at 3:00 p.m. EDT, we’ll be hosting our regular weekly coaching session for Stealth Trades.
I will be recapping our portfolio and going through the newest stocks added to the Watchlist.
You really need to attend these with me to get the full benefit of your subscription.
We’ll send you a log-in reminder that morning, just so you don’t forget.
Now, here are the introductions for some the stocks coming at you in Stealth Trades:
Manufactured Homes Maven
This company is in the factory-built homes business. It designs, produces and sells manufactured homes, modular homes and component buildings for single and multifamily residences for customers throughout the US and Canada.
Based in Elkhart, Indiana where locals are famous for their mobile RVs and other major products, the company just takes the talent and refocuses it on boxes that don’t have to always move down the freeway – even if they do for their delivery.
Revenue is surging with heavy, heavy demand. Sales are up for the recent quarter by 86.69%. And it runs a reasonably efficient operation resulting in operating margins at 7.70%. And it delivers to the bottom line with a return on shareholders’ equity at 21.00%.
Here’s how the stock sets up with my data:
Surge score: 96/100
% Above 52-wk low: 171%
MFI reading: 57
Sales growth: +87%
Triple momentum: yes
The company has been an absolute monster of a stock, hence the Surge Score of 96. But the chart is beginning to tighten up.
This one may continue to consolidate for another week or two. And if it does, that would only strengthen the setup.
I’m looking to buy on a break above 65.60.
A Bio-Wonder of a Company
The company provides services for biotherapy and biopharmaceutical product development with varied expertise to deliver what is needed quickly and efficiently.
And given the soaring demand for product development – the company is well place to continue to capitalize on its markets.
Revenue is up by 26.57% for the recent quarter and it manages to make a reasonable margin on that revenue with operating margin running at 6.60%. And in turn, while it could be a bit better – it does deliver a return on shareholders’ equity of 7.60%.
For this sector, it is not too overvalued as it is priced at 3.01 times book (intrinsic) value and only 2.10 times trailing sales.
Here’s how the stock sets up with my data:
Surge score: 87/100
% Above 52-wk low: 90.2%
MFI reading: 50
Sales growth: +27%
Triple momentum: yes
The stock recently made new all-time highs. Then, a shakeout day took place last Tuesday, which likely hit a lot of stops and consolidated shares into even fewer hands.
Volume is drying up big time, which to me signals almost no supply coming to market. It will only take a small increase in demand to propel this stock to new heights.
If the stock gets above 95.60, I will likely buy it.
A Label Leviathan
This company loves the pressure. It specializes in pressure-sensitive materials and products that are used in labels, product tickets and even radio frequency identification devices (RFID).
Its customers are just as sticky as its label and other products. With its product line up – it continues to maintain a good base of varied companies from many different industries.
The market for its products continues to soar in demand. This is resulting in sales gains that for the recent quarter are up by 37.52%.
And while its overall product line up runs from simple to complex, it maintains a good level of operating margin for an industrial at 11.60%. But it does really deliver for shareholders with a return on their equity running at a whopping 50.40%.
Here’s how the stock sets up with my data:
Surge score: 88/100
% Above 52-wk low: 96.5%
MFI reading: 64
Sales growth: +38%
Triple momentum: yes
The stock is completing a four-month cup and handle pattern.
The cup is also shallow, retracing just 13% from peak to trough. That makes this a less volatile stock than most, despite its strong price action.
I will be looking to buy the stock above 229.00.
Given the 13% cup depth, my sell target would be more conservative at around 260.00.
But with the tight trading range in the handle, you can play this one very tight.
My stop would be at 221.75 to risk just 3% on this trade.
Live Coaching Session
Monday, at 3:00 p.m. EDT, we’ll be hosting our regular weekly coaching session for Stealth Trades.
We’ll send you a log in reminder that morning, just so you don’t forget.
We’ll cover all of our new stocks on the Watchlist as well as the rest of the stocks inside Stealth Trades.
You need to attend this session to get the most from your subscription!