Click to EnlargeSprint Nextel (NYSE:S), a major telephone carrier in the United States, has gone exactly sideways for the past six months. Some analysts are less than enthusiastic about the stock—The Street rated the company a Hold due to debt management risk.
But I say you can’t fight the tape, especially when it comes to short-term gains. The stock broke out to close at $6.03 on much larger than usual volume on March 19, and has been creeping up since. My expectation is that bulls are eroding bears’ grip on this stock, and once sellers capitulate, Sprint shares will start really living up to their name. If it slips back into its side shuffle, that’s OK as long as it doesn’t last too long.
Recommendation: Buy Sprint for a $7.00 target.
Click here to receive the Trade of the Day in your inbox every day.
InvestorPlace advisor Jon Markman operates the investment firm Markman Capital Insight. He also writes a daily swing trading newsletter, Trader’s Advantage which aims to capture profits of 15% to 40% and often as much at 100% to 200% in less than 90 days.
Professional traders and hedge funds make huge profits off volatility. Now, Jon’s service CounterPoint Options levels the playing field with the first service geared towards helping individual traders make steady, consistent profits with the VIX. Get more information on Trader’s Advantage and CounterPoint Options today.