Picking good stocks is not enough…
And picking good companies is not the same thing as picking good stocks…
Especially when it comes to your portfolio.
Today, I’ll give you two examples of great companies with stocks that aren’t doing anyone any favors right now.
But I’ll also provide you with an interesting stock from a good company with upside right now.
First, the good companies with stock challenges…
Take Amazon (AMZN), for example.
It’s arguably the greatest company in the history of the world.
There’s never a bad time to buy AMZN stock…
Look at the chart below…
Amazon stock has gone nowhere for over a year.
Netflix (NFLX) created a media empire unlike anything we have ever seen.
Its competitors don’t come close to matching its dominance.
But investors have not been rewarded for the company’s success in a while…
That’s why I stick to surging stocks – the ones making big moves right now.
Amazon and Netflix had their time in the sun. And they will almost certainly make another big move higher.
But right now, both stocks are range bound.
Investors are sitting on dead money.
And there are too many good opportunities where your money can actually work for you.
The Company with a Stock to Buy
Case in point… Penske Automotive Group (PAG).
After a modest pullback following a big run higher, shares of PAG are completing a cup-and-handle pattern.
Price action is getting tight, with retracements down to about 7%.
If it continues to tighten, even better. It will allow me to risk even less with a tight stop.
I’m looking for a breakout above recent highs on heavy volume.
If we get it, I’ll be targeting a move to around 112.00 on the upside.
Embrace the Surge,
Editor, Traders Daily Direction