The environment remains mostly tedious as we leave the summer behind. Our top pick is Five9 Inc. (FIVN), a stock that was left for dead by the market. Its business has remained resilient – and AI is actually helping growth to accelerate, observes Mike Cintolo, editor of Cabot Momentum Trader.
There are some stocks acting well overall, but selling on strength is the norm and most indexes and sectors haven’t made much net progress for two to four months. Big picture, the odds continue to favor the next major move being up. But as has been the case for a while now, the question is whether that advance kicks into gear soon.
As for FIVN, it was a horrible performer for the past few years, falling more than 90% from its pandemic peak. But the bottom came in April – and a positive earnings reaction changed the tone.
Shares did wiggle around for a couple of months from there. But FIVN has been strong since the market’s late-July low, with earnings bringing a wave of buying three weeks ago. Minor weakness would be tempting to trade.
