July 21, 2022

In this article I highlight ten stocks that share two characteristics. The first is that they have all been outstanding performers from their original IPO until today. The second is that they are all in the process of breaking out of long downtrends. I calculated their recent performance from the June 16 market low (so far) through today. All of these names are up by more than the market over that time frame. 

Eight out of the ten stocks have broken above their 100 day moving averages. The other two are getting close. 

Chart 1. Paycom Software

payc breakout

Stats for PAYC

payc stats

Chart 2. Apple

aapl breakout

Stats for AAPL

apple stats 2

Chart 3. IDEXX Labs

idxx breakout

Stats for IDXX

idxx stats

Chart 4. Dick's Sporting Goods

dks breakout

Stats for DKS

dks stats

Chart 5. Old Dominion Freight Line

odfl breakout

Stats for ODFL

odfl stats

Chart 6. Factset Research

fds breakout

Stats for FDS

fds stats

Chart 7. EPAM Systems

epam breakout

Stats for EPAM

epam stats

Chart 8. Tesla

tsla breakout

Stats for TSLA

tsla stats

Chart 9. Cable One

cabo breakout

Stats for CABO

cabo stats

Chart 10. O'Reilly Automotive

orly breakout

Stats for ORLY

orly stats

Final thoughts

It's important to note that several of these stocks have become expensive and are not good buy candidates at current prices. It would be better to place the names you like on your watchlist and wait for the next pullback. 

As I said at the beginning, the common thread among these stocks is their high lifetime CAGRs and their strong price performance since June 16th when the market made its recent low for this cycle. We may see a lower low before this bear is finished, but it's good to see the seeds of the next bull phase begin to sprout.

About the author 

Erik Conley

Former head of equity trading, Northern Trust Bank, Chicago. Teacher, trainer, mentor, market historian, and perpetual student of all things related to the stock market and excellence in investing.

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