One of the quickest ways to discover big moving stocks is using a list of the largest daily percent gainers. When you do this right after the market opens, it often is full of gap-up stocks that jumped higher out of the gate on news. Many of them become the best stocks to buy over the coming trading sessions.
Today we’ll dissect three such candidates that sit atop the big gainers list for Monday. One of the criteria worth adding to your selection process is finding stocks that are breaking through crucial resistance zones such as a major moving average or previous pivots. Those that have the power to penetrate through previously impenetrable ceilings show some serious buying firepower.
If they were previously in an uptrend, it signals trend continuation and potentially acceleration. If they were in a downtrend, then the resistance breach means a trend reversal is likely in the offing.
Feast your eyes on what could be today’s best stocks to buy.
3 Big Gain Stocks to Buy: Roku (ROKU)
In its infancy as a public company, Roku (NASDAQ:ROKU) has been a volatile beast of the double-edged sword variety. Shareholders have witnessed both monster gains and hair-rising losses as the streaming distribution platform has attempted to find its fundamental footings.
The latest humdinger arrived today with the stock up 17% on news that the number of active accounts and streaming hours both soared in the fourth quarter.
Active user accounts sailed past 27 million marking a 40% increase over the same period one year ago. Meanwhile, the number of streaming hours, which reflects user engagement, increased 68% year over year.
At its lows heading into the 2018 year end, ROKU stock had fallen 66% from its peak and was thus in desperate need of a positive catalyst. Consider today the firestarter.
3 Big Gain Stocks to Buy: Netflix (NFLX)
Netflix (NASDAQ:NFLX) shares are flying high, continuing the rally sparked on Friday by the media giant’s addition to Goldman Sachs (NYSE:GS) Conviction Buy list. In early morning trading NFLX stock is jumping 5.3% on heavy volume. The rip is putting an exclamation point on what has become a powerful “V” shaped bottom.
What makes this one of the best stocks to buy is its recovery back above the 50-day moving average and horizontal resistance at $300. With the formation of a higher high now guaranteed, Netflix’s downtrend is now officially over.
The primary challenge with plowing into a position now is the stock has rallied some 35% off the lows in a straight line. Traders seeking a low risk entry might want to wait for a pullback before pulling the trigger.
Its next quarterly earnings announcement is looming on Jan. 17.
3 Big Gain Stocks to Buy:Advanced Micro Devices (AMD)
Advanced Micro Devices (NYSE:AMD) rounds out today’s trio of big gainers with a 6% rally. With the ascension, AMD stock is overtaking its 50-day moving average for the first time since October’s nasty earnings plunge. But that’s not all that makes in one of the best stocks to buy
On the technical front, we do have a potential double bottom at $16 in the making here. Stability like this is desirable and has allowed the stock to build a neutral base to offset the bearish pressures which were building after its last earnings release.
With option premiums so juiced, I like selling the Feb $16 puts for around 65 cents.
As of this writing, Tyler Craig didn’t hold a position in any of the aforementioned securities. Check out his recently released Bear Market Survival Guide to learn how to defend your portfolio against market volatility.