Trade of the Day: Sierra Wireless, Inc. (USA) (NASDAQ:SWIR)

The selling is an opportunity

Monday was an active day in the market as Wall Street reacted to the drama in Washington, D.C. after the GOP health care replacement bill got caught between a rock and a hard place.

The good news is the large indices cut their losses, with the S&P 500 and Dow finishing down slightly while the NASDAQ managed to turn green. The orderly nature of the selling Monday and the last two weeks underscores a lack of panic, even though the frustration is clear. For me, now is not the time to panic but rather to take advantage of opportunities.

One I like right now is Sierra Wireless, Inc. (USA) (NASDAQ:SWIR), which provides wireless solutions in the growing Internet of Things (IoT). The stock got hit hard on Monday after a downgrade at Raymond James to Market Perform from Outperform. At the same time, the firm raised its target price to $30. Whether they had raised the target or not, I would still say this is an opportunity.

You can see on the chart below that SWIR gapped up in February after earnings, pulled back to $25.95 on February 23, and had rallied to close last Thursday and Friday above $29, which is the breakout level I’m watching.

Trade of the Day: Sierra Wireless, Inc. (USA) (NASDAQ:SWIR)

In Monday’s selling, it fell to exactly $25.95 again before rebounding to close at $27.70, providing another buying opportunity. It’s also worth keeping an eye out for news from the International Wireless Communications Expo, which is going on this week in Las Vegas and could create some positive buzz around the stock and the industry.

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Article printed from InvestorPlace Media, https://investorplace.com/2017/03/trade-day-sierra-wireless-inc-usa-nasdaq-swir/.

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