With the Dow Jones Industrial Average down almost 200 basis points intraday at the time of this writing, investors are likely pondering whether it’s time to “sell in May and go away.”
Down slightly for the year, the Dow isn’t exactly inspiring many on the long side to stick around when they could be out on the beach instead.
But, as they also say, “There’s always a bull market somewhere.” Fact remains, some stocks are just too hot to ignore and will be bid higher no matter where we are in the calendar. And, with Profit Scanner powered by Recognia, we intend to discover exactly where those bullish plays can be found — before their success stories go mainstream.
One of Profit Scanner’s best features is the “Featured Ideas” service. Here, we are given the top 10 stocks across various industries — both bullish and bearish — with breakout patterns where the projected return (based on a specific price target range) makes for a compelling reason to establish a position.
Let’s take a look at some of those picks:
Bullish Stock Picks: Regeneron Pharmaceuticals Inc (REGN)
Regeneron Pharmaceuticals Inc (REGN) formed a pattern called “Bottom Triangle,” providing a target price for the intermediate term in the range of $448–$463 per share. The pattern tells us that the price seems to have reached a bottom, showing a sign of reversal as it has broken upward after a period of uncertainty or consolidation.
The triangle outlined in red also shows two converging trendlines as prices reach lower highs and higher lows. Then, before the triangle reaches its apex, the REGN price breaks above the upper trendline, thus confirming this bullish pattern as a reversal of the prior downtrend.
Profit Scanner alerted subscribers back on May 16 that the opportunity in REGN would take anywhere between six weeks and nine months to complete.
Bullish Stock Picks: Rudolph Technologies Inc (RTEC)
Rudolph Technologies Inc (RTEC) has broken upward to confirm a classic “Continuation Diamond” chart pattern, offering a target price for the long term in the range of $17.30–$18.10 per share.
With a market cap of $422.5 million, this is considered a small-cap stock, which offers the potential for above-average returns, though in exchange for greater risk and volatility.
Earnings per share was up 633% compared to the same quarter in the prior year, and has grown an average of 10% annually over the past five years, telling us that the company increased earnings and/or decreased the number of shares.
Return on equity is 11% for the latest 12 months, a reflection of how efficient the company has been at turning a profit on the capital shareholders have invested.
Bullish Stock Picks: Orchids Paper Products Company (TIS)
With a market cap just over $300 million, we consider Orchids a small-cap stock that offers investors the potential for above-average returns.
Looking at the chart, the price of TIS has broken upward to confirm a classic “Pennant” chart pattern, offering a target price for the short term in the range of $36.50–$37.75 per share.
On the fundamental front, earnings per share for the company was up 271% compared to the same quarter in the prior year, and has grown an average of 10% annually over the past five years. Additionally, return on equity is up 15% over the past year.
Profit Scanner powered by Recognia can help traders of all levels uncover these signals to determine the best timing to buy. Or use Profit Scanner’s technical insight to validate your own trading ideas. See how easy this powerful tool is to help you uncover hidden opportunities in the market.