When looking at the overall market, there’s more good than bad out there — after a tough June and July for growth stocks, many risk-on names have stretched their legs. For our Top Pick, we’re going with Everpure Inc. (P), which is the new name for Pure Storage, says Mike Cintolo, editor of Cabot Momentum Trader.
The intermediate-term trend for the major indexes (and even most growth funds and indexes) is pointed up. That’s all to the good and a reason we think extending your line a bit has made sense this month.
As for Everpure, it’s a flash memory provider that lagged the AI buildout early on – but is now seeing growth pick up as it signs some hyperscaler deals. Everpure never really could join the leadership ranks in recent years as money flowed into hard-disk drive makers, but the recent action tells us that’s changing.
The stock had a nice run into the end of last year, but had an equally big drop through March – and was still buried on its chart this summer. But the mid-60s level held during the growth stock selloff in June and July, and now Everpure has gone vertical, enjoying a huge run as volume has taken off.
We’re not chasing it here, but we’re not expecting a ton of downside given the power. Try to buy on a shakeout.
