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We’re on pace to have one of the busiest IPO weeks this year.

There will be 16 companies going public, and I expect a lot of action in the IPO space over the next few trading sessions.

Of course, the market is quite choppy overall right now.

So I also want to keep a lot of my trading attention on IPOs that I’ve already successfully traded — ones that have a solid history of price action and that are showing some discernible momentum.

Rinse and repeat is the way I like to describe it.

What has worked for me throughout October is trading new stocks that are riding growing digital trends.

That includes Cloudflare (NET), which I took an average of 150% gains on; Crowdstrike (CRWD), which I took a 100% win on; and SFIX, which I took an average of 125% gains on.*

Two of those same stocks showed up again on the 3-stock watchlist I want to share with you today.

Cloudflare (NET)

  • Cloudflare is a company that provides web infrastructure and security. Its products help sites protect against threats and improve and speed up performance and load times through its international data centers.

 

  • As a cybersecurity stock, NET is poised to ride some massive trends as more people are online now than ever. Global cybersecurity is on pace to hit a market size of $208 billion in 2023, up from $150 billion in 2019.

 

  • With current YTD gains of 218%, NET has been massively outperforming the overall market, making it one of the clear IPO winners of the year

 

  • Even over the past month, the stock saw peak gains of 37.52%, beating that of the Computer and Technology sector’s gain of 7.9% during that period

 

  • The stock has seen a lot of momentum, but has been consolidating around the $55 mark. My plan is to look for opportunities to get long if it can hold a base there and then ride the stock to new all-time highs near $65.

Stitchfix (SFIX)

  • Stitch Fix is a company that provides personal styling services online. Using data and algorithms, it can recommend clothing to shoppers based on size, style, and budget.

 

  • The company has gained popularity as buyers have shifted away from brick-and-mortar retailers over the recent months.

 

  • SFIX has gained over 35% since the last earnings report about a month ago, in which the company announced revenues of $443.4 million, up 3% from that period a year ago.

 

  • The stock has held a bullish trend spectacularly over the past month and is now entering a consolidation or “squeeze” around the $35 level.

 

  • SFIX has the potential to explode out of consolidation, and I’m interested in buying call options slightly at or out-of-the-money that expire the following week. But as always, I’ll be maintaining a protective stop, in case things move lower from here.

Bill.com (BILL)

  • Bill.com is a top provider of cloud software to assist workflow and payment processing. The company digitizes, simplifies, and automates financial operations of companies that are small to midsize.

 

  • The company is a large part of the current digital revolution that’s helping companies shift away from manual and paper-based cash flow.

 

  • The company has an earnings report coming up, which it will announce on November 5, 2020— a strong catalyst that we could see a run into. Revenues are rock-solid this year, having jumped from $32.9 million in the final quarter of 2019 to $38.8 million in quarter 2 of this year.

 

  • BILL is showing some really impressive momentum, up 179% so far this year— and with a current trading volume of 325,485 shares.

 

  • The stock has been trading in a well-defined range and looks like it could bounce off the $100 mark for a run to new all-time highs

Receive My Critical IPO Payday Alerts

If I decide to jump into BILL, NET, or SFIX, my IPO Payday subscribers will be the first to know.

To learn the exact strategies I’m using to trade stocks like these in real-time, check out my latest IPO trading workshop here.

Author:
Ben Sturgill

Ben leads two services at RagingBull. IPO Payday can help you pinpoint, position, and profit from IPOs. In Daily Profit Machine Ben guides day and swing traders to profit by trading the SPY Index. Ben hosts the RagingBull.com podcast where he shares thoughts on wealth and success with traders, businesspeople, entrepreneurs, and experts to uncover and share some of the wisdom needed to live a successful life.

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