Sterling Check Corp.
Sterling Check Corp. (STER) is a $2.5 billion technology company focused on background and identity verification services.
Here’s how the chart is setting up…
And here’s how the stock is setting up with my Stock Surge Indicator (SSI)…
- Surge score: 85/100
- % Above 52-wk low: 50%
- Sales growth: +35%
- Return on Equity: 15%
- Triple momentum: yes
STER is a recent initial public offering (IPO) from late last year in the later stages of forming its first base.
These IPO bases can be powerful buy points, as I discussed last week.
That’s because the stock will be making its first move higher after the initial volatility has been digested from new investors getting positioned in the stock.
The company has posted big sales and earnings growth over the last several quarters, and analysts have been raising their estimates for 2022.
The trigger to buy would be a move above $28.00.
Xenon Pharmaceuticals Inc.
Xenon Pharmaceuticals Inc. (XENE) is a $1.8 billion biotechnology company focused on treating neurological disorders.
Here’s how the chart is setting up…
And here’s how the stock is setting up with my SSI…
- Surge score: 97/100
- % Above 52-wk low: 129%
- Sales growth: -27%
- Return on Equity: N/A
- Triple momentum: yes
Xenon is a clinical-stage biotech stock, so fundamentals like sales and earnings aren’t much help in evaluating the trade.
However, the technical picture looks great.
After a big jump in October on positive Phase 2 trial results for its epilepsy drug, shares have consolidated in a tightening pattern from left to right.
I would consider buying if the stock can make new highs.
Ideally, you want to see increased volume on the breakout day as a sign that big institutional investors are behind the buying.
Casella Waste Systems, Inc.
Casella Waste Systems, Inc. (CWST) is a $4.6 billion waste management company serving a variety of customer bases throughout the northeastern United States.
Here’s how the chart is setting up…
And here’s how the stock is setting up with my SSI…
- Surge score: 95/100
- % Above 52-wk low: 43%
- Sales growth: +21%
- Return on Equity: 12%
- Triple momentum: yes
CWST made a big move in early March, as the stock soared 32% over 10 consecutive up-days.
To me, this was a clear sign of institutional accumulation.
Since then, shares have retraced slightly and formed a shelf at the $90.00 mark.
If the “big guns” are still buying, we should see another leg higher and a move on to new highs.
I’d consider buying if CWST breaks $90.00.
Before I go, if you’d like a step-by-step walkthrough on how to best take advantage of trades like these…Be sure to check out my recent article, How to Follow My Weekly Trades, to know where I’m buying so that you can follow along.
