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Strong Tailwinds Spike Big Moves In These 3 Stocks The gainers and losers list is always a great place to go when looking for trading or investing ideas. With only a little sifting and chart-checking average investors should be able to come up with at least a few ideas if not one or two great ones.

By Thomas Hughes

entrepreneur daily

This story originally appeared on MarketBeat

Depositphotos.com contributor/Depositphotos.com via MarketBeat

Big Moves Foreshadow Big Gains For Supported Stocks

The gainers and losers list is always a great place to go when looking for trading or investing ideas. With only a little sifting and chart-checking average investors should be able to come up with at least a few ideas if not one or two great ones. The list today is no exception. Three stocks we've chosen to highlight are not only diverse they are profitable, growing or looking at growth, and supported by tailwinds that have many quarters if not years before they expire.

Dave & Buster's Up 6.0%, Revenue Spike Is Expected

Shares of Dave & Busters (NASDAQ: PLAY) are up 6.0% on the session and 21% over the last two days on growing confidence in the reopening. While still weeks if not months away from getting into full gear, the data coming out of the restaurant industry is promising. Not only are the number of take-aways diners staying strong but traffic in restaurants is on the rise as well. This is great news for companies like Dave & Busters that rely on traffic and Dave & Busters is among the best positioned. As a casual, sports-oriented facility with a diverse menu, the restaurant is a first-choice for many patrons.

The analysts are still on the fence with this stock but only because they are overly cautious. The latest activity, the first analyst note in months, is from Raymond James. The analysts there expect to see a sharp spike in revenue that we expect to be the beginning of sustained revenue growth. The reopening should gain momentum as vaccines become more widespread and public confidence rises. Shares of Dave & Busters are confirming the uptrend with a strong move upward from the short-term EMA. The candles are not only strong Maribuzo they have action at a new multi-year high as well. In our view, this is a very strong signal to buy and one that could lead this stock up another $15 to $20 or 30% to 40% of upside. Dave & Buster's reports on April, 1st after the close and that is no joke.

Strong Tailwinds Spike Big Moves In These Stocks

Olin Corporation Gaps Up 7% On Restructuring And Regulatory Outlook

Olin Corporation (NYSE: OLN) is a specialty chemicals and manufacturing company that operates in three segments. The first is Chlor-Akali And Vinyls, the second is Epoxies, and the third is called Winchester. The first two are important for manufacturing on so many levels, the third because Winchester makes ammunition for guns along with a host of other outdoor products. With another push for gun control in Washington and a pro-gun-control administration in place the pace of gun sales and ammo, already hard to find, are going through the roof. The number of background checks in February jumped 22.8% to a record high for the month, and that is on top of the 16% gain that was posted last year. Based on the follow-up data, many of these new gun owners make a second purchase within months because the first one wasn't quite right.

Shares of Olin Corporation gapped up to confirm the uptrend but have already hit resistance. Resistance is at the recently set all-time high, a likely point for profit-taking by long-time holders and more recent speculators, but not the top we think. With the Supreme Court considering a case that could significantly sway U.S. gun laws, we don't see sales of guns or ammo slowing anytime soon. And there is the company's strategic shift to consider, a shift that will leave it more profitable, and the ultra-safe 2.0% yield.

Strong Tailwinds Spike Big Moves In These Stocks

RH Pops On Results, Outlook, And Upgrades

Shares of RH (NYSE: RH), formerly known as Restoration Hardware, are up more than 7.0% following a better than expected earnings report and a round of upgrades. The company reported a 22% increase in revenue that beat the consensus and drove strong bottom-line results and we are not surprised. The company was able to control costs and leverage revenue gains to the tune of 480 basis points in gross margin and 630 bps in the operating margin which produced $5.07 in earnings or $0.37 better than consensus. Guidance was also better than expected and is helping lead the stock higher. On a YTD basis, RH sales of core products is up 73% for February and 96% in the first two weeks of March compared to 36% in the 4th quarter of the last fiscal year.


There have been no few upgrades for the stock since the earnings report was released but we think Citron's nod the most noteworthy. Citron and Andrew Left are well-known short-sellers so any time the company goes long it should be noted. in his view, the shares could go to $1000 although we're not so sure about that. In the meantime, shares have moved up to a new all-time high on strong volume and supported by the indicators. While $1000 may be a stretch we believe this stock will continue moving higher for the short-to-long term and hit at least the $650 level.

Strong Tailwinds Spike Big Moves In These Stocks

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