Momentum stocks we follow continue to run on strong technicals and favorable news. Here are four more to watch.
Amicus Therapeutics Inc. (NASDAQ:FOLD) rocketed up 90 cents, or nearly 7%, to close at $13.81 on unusually heavy volume of 7.8 million shares traded Tuesday. The move came with news that the company will close the stock offering it opened last week, having successfully raised $258 million to fund future growth. The stock has soared $3.55, or 34%, since the FDA's July 11 announcement that it would accept an accelerated approval application for the company's drug migalastat, which would potentially subtract at least three years off the drug's time to market. Thus far, price has held the significant gap created by that jump up. Short interest of 11.4 times its average volume could fuel the move as shorts cover on a rally. Next targets: $15 and $18.
First Solar Inc. (NASDAQ:FSLR) had a great day on Tuesday, jumping $1.30, or 3%, to $44.02, on 2.8 million shares traded. Price began its current wave up by breaking out of a bull flag consolidation on July 6 on news of an analyst upgrade announcement from Trefis Research. Adding further fuel to the fire was a July 13 announcement that the company had sold two solar energy projects in Nevada to EDF Renewable Energy. The stock has gained $13.70, or 45%, since May 2. There may well be an extension quickly to take the stock up to the $47-$48 zone.
Kemet Corporation (NYSE:KEM) reached its highest price in six years, moving up 34 cents, or 2%, to close at $16.70 on Tuesday. Nearly 1.1 million shares were traded. The stock appreciated about 90% in the first half of this year and began its present dramatic wave up earlier this month on news of a key product extension by the electronics manufacturer. At the $20 level, price will likely encounter resistance but may eventually reach into the mid-$20s.
Nutanix Inc. (NASDAQ:NTNX) gained 82 cents and closed at $23.57 on 7.7 million shares traded. Price exploded out of a bull wedge consolidation on July 14 after an analyst upgrade statement from Goldman Sachs (NYSE:GS) that noted the provider of enterprise cloud platform solutions is a "once-in-a-decade tech infrastructure story." The stock, with an initial target of $25, could get to $27-$27.50 next, and then perhaps pullback to consolidate in the $22 zone before making a run toward $30.