Our first recommendation is a security tech company that is expected to grow earnings by 152.4% this year. Our second is some nice partial profit-taking of a previous idea.
BUY: CrowdStrike Holdings, Inc. (CRWD)
From Cabot Growth Investor
A recent industry survey showed that (a) security spending growth is set to accelerate in 2021, (b) 90%-plus of firms are dedicating more money toward cloud security solutions, and (c) CrowdStrike itself was cited as the leader in vulnerability management and as taking share on endpoint security. In a nutshell, there’s little standing in the way of this company getting much, much bigger over time.
Of course, the company is not the stock, so we’re never complacent; our combined cost basis is just under 197, so some abnormal selling into the low/mid-180s (less than a 10% loss) could have us concluding something is off. But there’s no sign of that today—while the recent bounce has come on low volume, CRWD is perched near its all-time highs, and we’re putting more emphasis on the stock’s six-week rest and supporting action two weeks ago. We filled out our position last week and continue to think the next big move is up. BUY.
Michael Cintolo, Cabot Growth Investor, cabotwealth.com, 978-745-5532, February 11, 2021
SELL 1/3 Five Below, Inc. (FIVE)
From Cabot Growth Investor
Updated from WSBI 807, July 18, 2018
We’re going to take partial profits in Five Below. The stock is acting well, but it’s now been running for five months and got a bit out of trend on the upside at the start of the year. We’ll sell one-third of our shares and hold on tightly to the rest. SELL ONE-THIRD OF FIVE, HOLD THE REST.
Michael Cintolo, Cabot Growth Investor, cabotwealth.com, 978-745-5532, January 27, 2021