NEW BULLISH Plays
NN Inc. - NNBR - close: 24.79 change: +0.26
Stop Loss: 23.40
Target(s): To Be Determined
Current Gain/Loss: unopened
Entry on June -- at $--.--
Listed on June 02, 2014
Time Frame: 8 to 12 weeks
Average Daily Volume = 153 thousand
New Positions: Yes, see below
Why We Like It:
NNBR is in the industrial goods sector. The company makes precision bearing and metal components, industrial plastic, and rubber products.
They sell components to the aerospace, agriculture, automotive, construction, energy, industrial, marine, and medical industries.
NNBR's big rally in 2013 has continued into 2014. This year has been a bit of a roller coaster ride for the stock. The rally really picked up steam in early May after NNBR reported earnings on May 6th.
Wall Street was expecting a profit of 29 cents a share on revenues of $1.1.3 million. NNBR delivered 31 cents a share with revenues rising +9.3% to $102.5 million. The 31-cent net profit is a +47.6% surge from a year ago. The company said its gross margins rose 110 basis points to 21.7%.
News on NNBR is pretty quiet but industrial stocks have been leading the market higher. Rising revenues, rising profits, and rising margins sound like a good recipe for further appreciation.
Currently NNBR is hovering below round-number resistance at the $25.00 mark. We are suggesting a trigger to open bullish positions at $25.25.
We're not setting a bullish target tonight but I will point out that the point & figure chart is forecasting a long-term bullish target of $49.
I also want to note that it's possible, but unlikely, that NNBR could see potential resistance at its all-time highs at $26.75 set 18 years ago back in May 1996.
Trigger @ $25.25
Suggested Position: buy NNBR stock @ (trigger)