These Stealth Stocks Are Ready to Perform
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.
To access the Watchlist for Stealth Trades, simply click here.
Live Session Reminder
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!
In the meantime, you can watch replays of past sessions on the Stealth Trades website right here.
Best wishes for your trading,
Ross Givens
Stealth Trades