Today, I want to share with you one of the big surge stocks on my Watch List and how I’ve been profiting this week.
In every Monday issue of Traders Daily Direction, I present the stocks for the Watch List, and this week had three good ones that you need to take a look at if you haven’t yet.
And if you haven’t read up on my Stock Surge Indicator (SSI) system, you need to get up to speed right now.
I encourage you to download and read my special report at the following link: The Magic of the Stock Surge Indicator.
Horizon Therapeutics (HZNP) is the stock of today. The shares jumped above my buy level of $97.05 and set the stock up for a big price surge.
I followed my own recommendation from Monday and bought in. I’ve have already booked some profits, and I’ll let the rest of my position run.
If you’ve bought alongside me, I suggest you do the same.
Horizon is a biopharmaceutical company based in Lake Forest, Illinois. It specializes in both developing its own drugs – as well as buying others in various stages of development and evaluation.
It focuses on pain relief and specialty drugs – particularly for orphan diseases. This combination attacks the market with both widespread demand and high margin drugs for specialized ailments.
Revenue growth is very good with the trailing year up by 69.3%. And while drug development and ushering them through approvals is expensive, it maintains a positive operating margin at an impressive 22.3%.
The company has a lot of cash on hand and has little debt – so its leverage is lower. This has an impact on the return on shareholder equity that is a little low at only 9.3%.
Insiders have 1.11% of outstanding shares as of July 4. And as of that date, there have been some additional shares bought, adding some 26.2% of insider holdings.
According to my Stock Surge Indicator (SSI) system, here is how the stock scores:
- Surge Score: 72/100
- % Above 52-Week Low: 74.6%
- MFI Reading: 59
- Sales Growth: +49% TTM
- Triple Momentum: YES
I added Horizon to the watchlist last week, and the breakout was triggered today at $97.05. The current set-up is really strong.
Volatility was decreasing, and pullbacks are becoming shallower – a sign that less supply is coming to market.
Decreased supply is a good thing. It means less people are offering shares for sale, so an increase in demand should trigger a more substantial price move higher.
The right side of the chart is very tight, and even with the selloff last week, shares only fell by 3%.
With the trade now in play, I will be working a stop below the July low at $90.80.
My Trades in Horizon
Here is the trading chart of Horizon Therapeutics with my buy trade and two of my partial sells.
Note that I still have the majority of my shares of Horizon Therapeutics.
According to my broker trade account, I’ve booked a realized gain of $444.80 and have an unrealized gain of $895.20 on my overall initial 500 share buy and two 100 share partial sells.
I’m still in the stock and looking for more upside. And as noted, my stop recommendation remains at $90.80.
One Last Thing
As I have been discussing in Traders Daily Direction, I am ramping up my insider stock buying research that is part of my Stock Surge Indicator (SSI).
I just did a live coaching event that was all about insider buying and how it works to find stocks that are set to rally higher and stronger.
For those of you that joined me, I enjoyed your participation and I know that we covered some profitable ground.
I have developed a new product that we’ve recently launched here at Traders Agency called Insider Edge.
It’s all about one of my common-sense tools that finds stocks with big surges in the works that are tipped off by insiders’ buying their own shares.
To get the full rundown on how to profit by buying stocks that insiders are buying right now and learn more about Insider Edge at Traders Agency, click here right now.