My $5 Stock Pick for This Week
After much movement in the small cap sector this week, I found a stock that's giving a 1/11 risk to reward ratio here and can go this week.
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DTC 0.00%↑ is a stock that’s gaining momentum here and can provide a nice trade for us. First let’s take a look at the fundamental aspects of this company here and why it’s enticing to me.
1. With earnings on the 11th, we can expect a run up because of the summer theme of this company here. I can expect investors to enter this company due to an expected positive earnings report after this Summer quarter.
2. Insiders have been eating this stock up recently. Take a look at all the insider buying below, no selling from any major party in the company.
3. Next let’s look at the analyst ratings on this stock. There is not a single “hold“, “underperform“, or “sell“ rating from any of the major analysts that the WeBull profile shows. In fact, the lowest price target is $10, which implies an almost 100% upside!
4. Now we have the technical aspects to look at, and things just get better here. First, it’s worth nothing the short interest on this stock at around 20% so we can squeeze some shorts here if we gain volume and momentum, especially with how thin this stock trades. This is important because we have to remember that shorts like to close positions before earnings in order to manage risk
5. The chart on this stock is great, a break of 5.75 can give us room to the 7’s and then free air to 10. I really like this chart here because we can put our stop loss just under that breakout level there.
As we can tell there are a lot of fundamental and technical aspects lining up for DTC 0.00%↑ to become a great play this week. PT: 7.50 SL: 5.15.
Thanks for reading!