You folks probably don’t know this but one of my favorite trading plays is to find stocks that have strong fundamental growth that have been trading sideways.
But we’ve got to remember two things…
I’ve always said that the stock market moves vertical and horizontal. And that traders tend to get lower risk entry opportunities in both stocks and options when the asset is moving horizontally. That means there’s usually less volatility and trading range to begin with.
You might have noticed that stocks have a tendency to consolidate after long periods of upward or downward momentum, and they tend to experience strong moves after consolidating. So it’s best to target low-risk trade opportunities during the congestion period.
That’s especially true if those stocks are trending higher, have substantial earnings surprises, higher revenue expectations and, most importantly, a high number of analysts giving them strong ratings.
I have two low-risk trade opportunities that fit that exact criteria. They’re currently consolidating and ready for another leg up.
If you’ve paid any attention to my videos lately, you’ll soon realize that I’ve been discretely waving these names in front of you for quite some time, and I continue to follow them because they’re such great long-term momentum plays.
The first low-risk trade opportunity I have for this earnings season is Crowdstrike Holdings Inc. (Nasdaq: CRWD).
In a nutshell, Crowdstrike is one of the leading cybersecurity technology companies on the market today. It offers a number of solutions from corporate and cloud platforms to server farms. And its Falcon Endpoint Protection Platform (EPP) protects its customers against cyber attacks on and off the network.
It’s a mature stock with a decade already in business, so its one-year return is 200-plus percent and it has 16 strong buy recommendations.
I have a price target of about $260 per share over the next quarter!
Make sure you check out the short video below so you can hear more about CRWD, and get my next pick for two low-risk trade opportunities, and be sure to share your thoughts in the comments section.
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