Danaos Corporation
Danaos Corporation (DAC) is a $2.2 billion, Greece-based marine shipping and transport company.
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: 98/100
- % Above 52-wk low: 143%
- Sales growth: +80%
- Return on Equity: 23%
- Triple momentum: yes
Shipping stocks are showing a lot of strength in this market.
Many of them are already extended past a reasonable buy point, but Danaos is just breaking out of a new cup with handle pattern.
DAC has been something of a “Cinderella story” over the last two years.
In March 2020, it traded for $2.50 a share. As of this writing on Friday, the stock is trading at the $104 level – a gain of over 4,000%.
As long as DAC doesn’t get too far past the breakout level, I think this is a good buy here.
Crane Co.
Crane Co. (CR) is a $6 billion manufacturer of industrial products for a wide range of markets, including commercial and military aerospace, oil and gas and even wastewater applications.
Here’s how the chart is setting up…
And here’s how the stock is setting up with my SSI…
- Surge score: 90/100
- % Above 52-wk low: 27%
- Sales growth: +13%
- Return on Equity: 23%
- Triple momentum: yes
I added Crane to the Watchlist last week, noting its tight 14% trading range over the last five months.
Shares continued to show strength last week, and the stock’s surge score improved from 85/100 to 90/100.
CR is now inches from new high ground, and I think it is a buy once it clears $109.
Place a stop near the 200-day moving average in case it fails.
Reliance Steel & Aluminum Co.
Reliance Steel & Aluminum Co. (RS) is an $11.6 billion metals provider for a variety of customers, including those in the aerospace, transportation and even semiconductor industries.
Here’s how the chart is setting up…
And here’s how the stock is setting up with my SSI…
- Surge score: 94/100
- % Above 52-wk low: 40%
- Sales growth: +87%
- Return on Equity: 25%
- Triple momentum: yes
Steel stocks continue to perform well, and Reliance is the best name in the group.
It has strong earnings and sales growth, high relative strength and a big return on equity – all the signs of a top-tier stock.
After making a nice move higher in February, RS has been consolidating all month in a nice and tight 8% range.
Consider buying new highs with a stop at the swing low near $178.
Before I go, 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.
