MarketSmith Stocks Breaking Out
Adtran Holdings (ADTN) reports after the bell on Wednesday, with expectations of another beat. Last quarter ADTN beat expectations by 54%, with earnings of $0.20 per share on revenue of $154.5 million. The consensus earnings estimate was $0.05 per share on revenue of $154.5 million. Revenue grew 21.2% on a year-over-year basis.
The stock’s IBD SmartSelect Composite Rating rose again on Monday, from 96 to 97.
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The upgrade means the stock is now outpacing 97% of all other stocks in terms of key performance metrics and technical strength. History shows the top market performers tend to have a 95 or higher score as they launch their major price gains.
Adtran Holdings is currently at the top its base that started in August 2021. A break above 24.86 would confirm the breakout, though we might wait until after earnings for an new position. We need the stock to break out on above average volume of at least 40% better than normal.
PTC Therapeutics (PTCT) broke above its pivot high on Monday, clearing a year long base that started back in June 2021. The company will report earnings again on Thursday, after the close.
The company reported loss of $1.78 per share on revenue of $148.7 million on May 3. Revenue grew 26.1% on a year-over-year basis.
Its relative strength line started rising again, closing at 94 as the stock breaks higher.