CrowdStrike Holdings (CRWD)
CrowdStrike (CRWD) is in the cyber security business. Hacks happen. And they are getting more and more notice by the general public as headline companies from pipelines to food processors have had major interruptions due to hacks. But hacks are a general ongoing risk for all companies and institutions including the government.
CrowdStrike provides protection for the biggies to the small fry. Revenue over the past year is up by 81.60% as demand remains robust and is increasing around the nation and well beyond.
The company has oodles of cash on hand and very little debt – so interest rate risk is not an issue.
Insiders are buying as they see what’s happening from their sales and marketing teams – with a surge of 40.88% in net positions in their own company. And institutions are heavy owners of the company including hedge funds.
- Surge score: 91/100
- % Above 52-wk low: 161%
- MFI reading: 61
- Sales growth: +70%
- Triple momentum: YES
The stock was up huge in 2020 before consolidating for the first half of this year.
The company has been able to grow both sales and earnings by double to triple digit rates while maintaining healthy margins.
It is also posting full-year positive earnings for the first time since going public, and analysts expect growth of 44% and 77% for 2022 and 2023.
The stock broke out from the daily chart on June 10, but I’m waiting for the weekly breakout as well at $251.00.
This would set the stage for a longer-term swing that could surge for several months.
The trigger to buy would be a breakout above $251.00, and I would work a stop loss at $225.00.
Pool Corporation (POOL)
Pool Corporation (POOL) as its name implies – distributes and wholesales swimming pool supplies. The stay-at-home movement last year and into this year – brought more folks to both build and use pools around the nation.
And it shows up in pool supplies sales by Pool. Revenue surged for the last quarter by 56.62%. And over the trailing five years, revenue kept building with an average growth rate of 51.46% on a compound annual growth rate (CAGR) basis.
And the company has cash on hand and controlled debt. So, interest rate risk should be controllable. Although it needs to rollover one of its primary credit lines next year with a revolving credit facility with Wells Fargo (WFC).
Insiders not surprisingly have been adding to their holdings in the company as well as institutional investors that hold a big chunk of outstanding shares.
- Surge score: 82/100
- % Above 52-wk low: 68.1%
- MFI reading: 51
- Sales growth: +57%
- Triple momentum: YES
Shares are up 167% from the March 2020 lows and climbing.
Earnings are estimated to jump 47% for the year, and the company has seen accelerated sales growth in each of the last four quarters.
POOL began forming a tightening consolidating pattern in early May.
I am looking for a breakout above this area to trigger the next surge higher.
My entry price would be $445.00.
I can work a tight stop at $425.00 to risk just 4.49% on the trade.
Progyny (PGNY)
Progyny (PGNY) is an insurance benefits management company focused on getting pregnancies to happen. It is contracted by insurance companies that offer fertility assistance coverage as well as for corporations and institutions that tack on this assistance as part of their employee benefits packages.
The US birth rate is down – along with most to all of the developed economies of the globe. And Progyny wants to get folks to reverse this trend.
Revenue is up by 50.10% over the past year. And it is very profitable as the company generates a return on shareholders’ equity in the company of 37.80%. And it has lots of cash and little debt – so higher interest rates are a non-issue for the company.
- Surge score: 95/100
- % Above 52-wk low: 187%
- MFI reading: 63
- Sales growth: 51%
- Triple momentum: YES
After turning the corner to profitability in 2020, earnings are forecasted to jump a whopping 171% in 2021 with further growth in fiscal 2022.
Sales, earnings and margins are all improving at a healthy clip.
After a big run up in May, the stock is taking a breath and consolidating around the $64 area.
Shares held up in last week’s selloff, so I’m interested to see what PGNY can do with the wind at its back.
A breakout above $67.00 would get me in this stock, and my stop would be just under the June low at $61.25.
