15 Aug Swing Trade Alert- POST IPO BASE- HRT
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15 AUG SWING TRADE ALERT- HRT
HRT- 18.20 area
Market Cap 1.4 Billion
POST IPO Base about to break out, #1 rated stock by IBD in the Software/Security sector, Low PE ratio and just named the IPO Stock of the Week last Friday afternoon by Investors Business Daily (IBD)
Off the swing trade list from Sunday, in the right sector at the right time with strong earnings growth and PE ratio is low.
Tennessee-based HireRight is a provider of background and identity verification services. #1 ranked stock in the IBD software and security sector group ratings as well. The company went public last year and a Post IPO base looks close to a breakout, one of my favorite swing trade patterns.
On Aug. 4, the company reported Q2 earnings of 54 cents per share while sales grew 26% to $222.3 million. HireRight earned just a penny in profit in the same quarter last year.
“This strength reflects our continued high client retention and upsell rates, new logo wins and secular trends resulting in continued strong demand for labor in our targeted end markets,” CEO Guy Abramo commented in the earnings call.
He continued, “The demand for talent remains higher than historic norms and the churn in the labor market continues at elevated levels compared to historical periods.”
Annual earnings are expected to jump 40% to $1.74 per share in the current fiscal year.
Forming a nice sideways high tight bullish flag pattern here, you want to build your position during this pattern before a likely breakout over 19 to Post IPO highs. A move to 25 would still put the PE ratio at only 14.
Max Entry 18.50 add to 17.80
Stop 16 near close
Target 21.85 plus for 18-20% potential