I've enjoyed watching ZS for years long before they went IPO. I have been employed at a Jay Chaudry firm in the past (one of my favorite professional assignments, too), so I remember when he began to kick the idea around and some people I knew began to align with him on his vision. Years later, his firm is one of the most successful cloud computing stories on Wall St. Well, they're close to breaking profitability, and have had an excellent record beating analyst estimates and will likely turn up into the black in the next calendar year. I am only speculating from the chart and publicly available information, and given my prior disclosure, it is important that I clearly state that fact on the record.
A good 62.50% beat on analysts' loss estimate of a high growth tech company, and they've already more than doubled in value since their March 2018 IPO against a ROUGH landscape this year. They're close to turning profit within their first two years on the public exchanges. I'm not a fortune teller, but I have read stories about the old timers in the markets talk about their "ten bangers" as stocks that increase their owners investment ten times over, and this is one stock that fits that bill if I've ever seen one lately. Lots of 2019 IPOs are on the horizon, including the much anticipated UBER, but I think there's quite a bit of sizzle in some yearly IPOs, too.
On the technical side, the stock responding exceedingly well after a huge gap up on earnings with an immediate correction back to the top of the gap but still moving upward with three white soldier doji candles. Volume is still strong, and money flow has been positive into ZS since early January. MACD is rising quickly and RSI is already pegging over 75, but this is not uncommon for rapidly growing tech stocks in their first few years. ADX is rising fast, and +DI is still riding above it quickly with -DI way in the rear view mirror which makes me wish I had put my heart on my sleeve for this back in February, but my trading strategy's risk management does not allow me to make decisions like that. This one is going to continue to post higher highs, and I expect its prices to climb up near CRM and TEAM and others in the cloud software space.
A good 62.50% beat on analysts' loss estimate of a high growth tech company, and they've already more than doubled in value since their March 2018 IPO against a ROUGH landscape this year. They're close to turning profit within their first two years on the public exchanges. I'm not a fortune teller, but I have read stories about the old timers in the markets talk about their "ten bangers" as stocks that increase their owners investment ten times over, and this is one stock that fits that bill if I've ever seen one lately. Lots of 2019 IPOs are on the horizon, including the much anticipated UBER, but I think there's quite a bit of sizzle in some yearly IPOs, too.
On the technical side, the stock responding exceedingly well after a huge gap up on earnings with an immediate correction back to the top of the gap but still moving upward with three white soldier doji candles. Volume is still strong, and money flow has been positive into ZS since early January. MACD is rising quickly and RSI is already pegging over 75, but this is not uncommon for rapidly growing tech stocks in their first few years. ADX is rising fast, and +DI is still riding above it quickly with -DI way in the rear view mirror which makes me wish I had put my heart on my sleeve for this back in February, but my trading strategy's risk management does not allow me to make decisions like that. This one is going to continue to post higher highs, and I expect its prices to climb up near CRM and TEAM and others in the cloud software space.
Trade active:
I'm enjoying some solid returns already from ZS, and it's good to have a strong tech earner in my basket for the first half of March.