Our recommended long breakout stocks are are most suitable for aggressive investors seeking ideal entry points into leading stocks, especially during bull markets, explains technical specialist Leo Fasciocco, editor of Ticker Tape Digest.
These stocks can also do extremely well during strong market rallies, or if they are in a industry group that is performing very well. They tend to have strong earnings outlooks and are near new-52 week, or all-time highs.
Our latest such breakout buy is Abiomed (ABMD), which provides temporary percutaneous mechanical circulatory support devices. The company, with annual revenues of $445 million, offers care to heart failure patients.
The company's medical products replace the pumping function of the failing heart. Its products enable the heart to rest, heal and recover by improving blood flow to the coronary arteries and end-organs and/or temporarily performing the pumping function of the heart.
ABMD's daily chart shows the stock climbing from around $187 in December to around $305 by March. The stock put down a tight flat base.
It attempted a breakout in April, but faded back. The latest breakout is impressive coming with expanding volume and a widening of the daily spread. The stock's momentum indicator is strongly bullish.
Analysts have been raising their estimates. The stock sells with a price-earnings ratio of 98. That is high. But quarterly profit growth will be strong.
Net for the fiscal first quarter ending in June should climb 76% to 79 cents a share from 45 cents the year before.
The highest estimate on the Street is at 99 cents a share. The company topped the Street estimates the past four quarters.
This fiscal year ending in March of 2019, analysts are forecasting a 38% surge in profits to $3.40 a share from $2.46 a year ago.
We are targeting Abiomed for a move to $390 a share within the next few months, or sooner. A protective stop can be placed near $310 per share. The stock is most suitable for very aggressive bulls.
