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Bull’s Eye Report: SolarWinds (SWI)

Tech space stocks have been charging ahead but find out why this name is leading the pack.


At, we strive to “own the best and ignore the rest” in our equity portfolios. Toward this end, each day we search our database for a “top stock” (a top rated company in terms of earnings strength as well as company and industry performance) that presents a strong technical “set up” and a good entry point.

In short, when our equity team is looking to add a stock to one of our portfolios, the “bull’s eye” stock shown below is generally their first choice.




Stock Rating

YTD % Gain

ST Stop-Loss

Solar Winds SWI Application Software 7.1 0.53% $53.81

Why We Like The Stock:

SolarWinds (NYE:SWI) is our most compelling buy today due to the fact that it is a top-rated stock in the technology sector, which has been gaining momentum in recent weeks. Since late October, SWI has been trending higher off of its lows right above $49. During the recent uptrend, it has pulled back twice, once throughout December, and again this past week.

Given the most recent pullback, this creates a great entry point as long as the stock holds above its 50-day moving average at $54.20. A move up into resistance at $57.40 would be the next logical step for the stock, which would make for a nice short-term gain of 4.93%.

Using a stop of $53.81, the stock has very little downside, and relatively high upside potential. Thus, we think SWI is a compelling buy at its current price.

We Would Be Buyers:

At the current price (around $54.70), or on a pullback to $54.20.

Company Profile:

SolarWinds, Inc. (SolarWinds) designs, develops, markets, sells and supports enterprise information technology (IT), infrastructure management software to IT professionals in organizations of all sizes. The Company’s product offerings range from individual software tools to more comprehensive software products that solve problems encountered by IT professionals. Its products are designed to help management of their infrastructure, including networks, applications, storage and physical and virtual servers, as well as products for log and event management. It offers a portfolio of products for IT infrastructure management. Its products operate in three categories: Free Tools, Transactional Products and Core Products. In January 2011, it acquired Hyper9, Inc. (Hyper9). In July 2011, it acquired TriGeo Network Security, Inc. (TriGeo). In October 2011, it acquired DNS Enterprise, Inc. (DNS). In December 2011, it acquired certain assets of DameWare Development LLC (DameWare).

Looking for more top rated stock ideas? Check out our Focus List – The Focus List is your own private research department. Each day, we identify the top rated stocks in the top sectors that also present solid entry points from a technical perspective.

Article printed from InvestorPlace Media,

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