Stock Pick of the Week Looks to Attract Momentum Buyers
As the market rotates toward serious bull action, this data management provider offers a lucrative opportunity.
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The rotational action into the broad market that was triggered by the lower-than-expected CPI report last Thursday morning is picking up traction on Monday. The market also appears to be celebrating increased political clarity. It is now predicted that the Republicans will sweep the presidency, house and senate. News that the documents case against Trump was dismissed further deescalated the viciousness of recent political battles.
Breadth is running very strong with around 5,600 gainers to 3,400 decliners and over 700 new 12-month highs. The Russell 2000 IWM is again leading, but the other major indices are also green. The Russell has been at its highest level since very early in 2002, but it still lags behind the senior indices. As I mentioned on Friday, this is what a real bull market feels like rather than a fake, narrow, big-cap bull market.
Last week, I discussed Humacyte HUMA as my top pick for the rest of the year. The stock has taken off and is now up more than 90% since that column was posted. I continue to like this stock very much and anticipate holding a core position for the long run.
My stock of the week is AvePoint AVPT. AvePoint Inc. is a Microsoft 365 data management solutions provider offering a full suite of SaaS solutions to migrate, manage and protect data. It sees itself as a leader in data management. It has over 21,000 customers worldwide rely on its platform to modernize digital workplaces that use Microsoft, Google, Salesforce and other collaboration environments. AVPT says it is considered one of the most advanced SaaS data management and governance players in the Microsoft Cloud Ecosystem. It is a multi-cloud offering but focuses on the Microsoft tech stack, which produces more than 90% of its revenue.
The company is expected to earn $0.17 in 2024 and grow its revenue 38% in 2025 to $0.23. Most of its revenue is recurring. The high target on Wall Street is Northland, which increased its target to $18 from $12 in mid-June.
Technically, the stock has been stair-stepping higher. It is consolidating nicely as it awaits earnings in a few weeks. A break over the $10.50 should trigger momentum buyers. As always, I will aggressively trade it as it develops.
At the time of publication, DePorre was long HUMA, HUMAW and AVPT.
