The latest market action has seen quite a few tech and high-growth momentum stocks performing solidly to the upside, observes Jim Woods, trading specialist and editor of High Velocity Options.
One such stock also happens to be a stock that I’ve recommended previously in other services, and it is one that’s now on the verge of a breakout — and that stock is pop culture consumer products company Funko Inc. (FNKO).
The company creates whimsical, fun and different products which enable the customer to express affinity for a favorite movie, TV show, video game, musician or sports team. The company holds licenses and the rights to create tens of thousands of characters including such properties as Game of Thrones, Walking Dead, Disney, Marvel, Harry Potter, Fallout and others.
Its products include Pop, Dorbz, Mystery Vinyl, Plush, Action Figures and others. The company sells its products through a diverse network of retail customers across multiple retail channels, including specialty retailers, mass-market retailers and e-commerce sites.
If you have children or grandchildren, or you’re just a kid at heart like me, you’ve probably bought some Funko Pops. And to prove it, just look at the photo here with one of my Funko collectibles, the suave, sophisticated and deadly polymath, James “007” Bond.
Of course, cool collectibles are nothing without big earnings per share growth and robust relative price strength. Here, FNKO has both in spades. The company’s recent earnings per share (EPS) growth of 42% year over year has helped put it in the top 10% of companies in terms of EPS growth. And its 52-week gain of nearly 19% puts it in the top 3% of all public companies.
Perhaps best of all, FNKO is now breaking out of a bullish base pattern in the $22-$23 range. I think this run will continue for FNKO as it approaches its Aug. 5 earnings release, so let’s take advantage of the circumstances here with the following new recommendation:
For those comfortable with options trading, we recommend buying the FNKO November $30.00 call options, which last traded for $2.00 and expire on November 18.
