Today I’ll be highlighting three high-flying stocks I think you should be paying attention to and to be ready to buy to cash in on their potential to surge for double or triple-digit gains.
Each is showing strong momentum with price growth rapidly outpacing the overall market. And each has surging revenue and insider buying.
But first, let me review my Surge Stock Indicators (SSI) that are getting my attention right now today.
The Surge Stock Indicators (SSI)
Each issue of Surge Stock Daily has the highlighted stocks that my Surge Stock Indicators (SSI) show what will be prime stock picks to cash in on what will cause them to rise by double or even triple digits. As a recap, here are the descriptions of each of the boxes and the stocks shown.
Watchlist
I start with my Watchlist. These are stocks that I am laser-focused on for their potential to be great surging stocks.
Price Surges
Next are the stocks that are surging right now in price. Each day, I scan the markets and find the stocks that are really catching my attention – and so you need to pay attention as well as these are moving and moving big.
Volume Surges
Then volume surges. This is a crucial metric to identifying and confirming a true surging stock. A stock that is getting more and more trading is a stock that needs to be noticed right now.
Revenue Surges
Revenue is the meat of the matter when it comes to companies and stocks. Find the companies that are hitting it out of the park – and I’ll show you stocks that will be surging as folks catch up with their successes.
Inside Buys
Stocks can be hyped. But nothing proves better than if management and the board eats their own cooking. I keep an eye on what insiders are doing with their own cash. If they are putting it into their own companies – then that’s a great confirmation that the numbers and the businesses are worth more to those that really know what’s what behind the numbers. Surges will follow!
SSI Stocks Right Now:
Now, here are the three stocks that are demonstrating their strong SSI scoring and how I see them developing. So, let’s break down the technicals…
Avid Bioservices (CDMO)
Surge Score: 97/100
Avid Bioservices (CDMO) is coming up with and delivering biopharmaceutical products that they get from manipulating mammal cell cultures. That’s a lot of science happening in Tustin, California. But it is working for Avid.
And a big proof is that sales are surging by 60.52% in the most recent quarter!
Now, with a market cap of just $1.32 billion, CDMO is still a small-cap stock.
But it has significant serious investors that are believers in what it is delivering. Fund managers own 93.48% of the outstanding shares – and insiders have been adding to their own investment.
Shares have more than doubled since December, giving this stock a Surge Score of 97/100.
As you can see in the chart, there is a significant resistance level near the $22 mark.
I’ll be watching for a break above this level on high volume to trigger a long trade on CDMO.
Tenet Healthcare (THC)
Surge Score: 93/100
Tenet Healthcare (THC) is a leading owner and operator of hospitals and healthcare facilities throughout the US. And as everyone knows – the demand for keeping people alive and better is surging right now.
Revenue is a big deal for this company. And it has a track record of delivering. Over the past decade, management has driven revenue on average based on a compound annual growth rate (CAGR) of 52.51%. That’s a surge.
And Tenet’s stock reflects its successes as it has been strong all year.
But last week’s volume surge hitting over 3 million shares is fueling this stock to new highs.
THC just cleared its pivot area, giving the potential for a move up to the $75 area.
The market has been prone to pullbacks lately, so I would work a stop below last week’s action at $54.50.
Camping World Holdings (CWH)
Surge Score: 94/100
Camping World Holdings (CWH) is in the business that is surging thanks to COVID19 and shows no signs of letting up.
It sells and services recreational vehicles (RVs) that have always been embraced by those seeking to get out and about. But with the virus, folks from all demographics are learning that RVs are a safe and fun way to get out and enjoy the world beyond their homes – and do it very comfortably.
Sales are surging with the past quarter alone showing RVs moving resulting in gains of 17.50%.
CWH has been somewhat range bound for the last few quarters, but shares are up 32.8% in just over a month and 71.82% so far this year
The all-time high is $47.62 which was set back in late 2017.
If momentum continues and shares can close above that level, it could get interesting as the stock enters price discovery mode in search of a higher valuation.
PGT Innovations (PGTI)
Surge Score: 86/100
PGT Innovations (PGTI) is in the absolute prime business of producing and selling windows, doors and other building products for homes. That market is hitting it out of the park right now. Demand for new homes and improvements is surging and PGT is right in the thick of supplying what builders and contractors need right now.
In addition, it makes hurricane-proof windows and other products that are perfect for Florida and the Caribbean and beyond. This is the company to be in right now.
Sales are surging with the recent quarter up by 26.76% and that is accelerating from its strong five year CAGR average sales gains running at near double-digits.
PGTI broke out of a textbook cup and handle pattern last week.
I’m looking for a quick 10-15% move higher which could generate a decent profit with a simple option trade.
Stocks have been prone to reversals the last few weeks, so keep an eye out for any unexpected pullbacks.
I would lose interest if shares closed below $26.00.
Harborone Bancorp (HONE)
Surge Score: 79/100
Harborone Bancorp (HONE) is a Brockton, Massachusetts-based banking company serving New England and down into New Jersey. Banks are getting attention right now with the breathing room of slightly higher market interest rates. This shows up in the bank’s net interest margin (NIM) that is the difference between what it pays for money against what it gets from loan interest. NIM is currently at 3.10% that is way better than its regional bank peers and even better than its big bank peers.
Loans are what fuel a bank. And US banks are not getting them at the rate that they’d like. Harborone is – and at a growth rate of 9.30% over the past year that is beating many of its peers.
I’ve had my eye on HONE for a few weeks waiting for a break of the $14 area.
The stock finally cleared resistance on heavy buying volume, but suddenly got quiet last week.
There is a low-volume area around $14.25 that should act as a rejection area and support the stock price.
If it breaks below this area, price discovery has failed and the stock is likely to return to the mid-$13 range.
This sets up an opportunity for a very limited risk trade with a tight stop just below the $14 mark.
