The purpose of this blog post is idea generation and to show you how I combine fundamentals, technicals and option activity to help increase my probabilities in the stock market. Please keep in mind that I am a growth manager and these stocks are not for everyone. FULL DISCLOSURE – I currently hold positions in these stocks for clients (subject to change at any time) but I also have a loss cutting discipline in case I am wrong. It is impossible to guide people how to trade any idea because everyone has different time frames. If the market cooperates, these stocks could have decent potential over the next 6-12 months.
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1) Zscaler (Symbol: ZS) is a cloud security software company. Technically, the stock is forming an ascending base. Fundamentally, they are growing revenues at over 60% and increasing their earnings at a triple-digit rate. I have mentioned this stock several times on Twitter in the $40-$50 range, but I still think it has strong potential based on bullish option activity and its total addressable market.
2) Zillow is an online real estate company (Class C shares are symbol: Z, Class A shares are: ZG). One of their original founders returned as CEO earlier this year and the company is venturing into many new verticals. (QUICK NOTE: With all these ideas, if you’re interested in taking a position, I encourage you to put in some work and do your own research). Its accelerating revenue growth, bullish option activity and very sharp insider buying are some of the reasons I like this stock.
3) NeoGenomics (Symbol: NEO) operates a network of cancer-focused genetic testing laboratories. You can see in the MarketSmith chart below their impressive accelerating revenue. This is probably the most speculative of my 3 ideas, but the stock is in a hot sector and has some bullish option positioning into year-end.
I can be reached at: jfahmy@zorcapital.com.
Disclaimer: This information is issued solely for informational and educational purposes and does not constitute an offer to sell or a solicitation of an offer to buy securities. None of the information contained on this blog constitutes a recommendation that any particular security, portfolio of securities, transaction, or investment strategy is suitable for any specific person. From time to time, the content creator or its affiliates may hold positions or other interests in securities mentioned on this blog. The stocks presented are not to be considered a recommendation to buy any stock. This material does not take into account your particular investment objectives. Investors should consult their own financial or investment adviser before trading or acting upon any information provided. Past performance is not indicative of future results.