The stock market has been stingy with new highs lately, especially after Wednesday’s sharp drop for the major indexes. Friday’s strong gains notwithstanding, the 10-day moving average of new highs on the Nasdaq and NYSE has been trending lower, while new lows have been trending higher.
But a few strong performers scored new highs Friday. Avocado producer Mission Produce (AVO) soared about 20% in huge volume on news that quarterly profit more than doubled from the year ago-quarter. Adjusted profit of 28 cents a share was well above the FactSet consensus of 8 cents. Revenue jumped 37% to $354.4 million, nearly $100 million above the $268.4 million consensus.
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Mission is a small-cap stock with a market capitalization of around $1 billion. It’s also thinly traded, with an average daily dollar volume of just over $3 million. But that didn’t stop Mission from breaking out with conviction over a 14.17 buy point.
Deckers Brands (DECK) was indicated sharply lower in premarket trading, weighed down by an earnings sell-off for Nike (NKE). But it didn’t take long for Deckers to find its footing. Shares soared more than 3% to an all-time high.
But after seven straight weekly gains, the stock shouldn’t be chased at current levels. A period of sideways consolidation or a pullback to the 10-week moving average would give a more palatable entry. Deckers continues to see strong demand for its Hoka, Ugg and Teva brands.
Klaviyo (KVYO), a little-known name in the enterprise software group, also rallied to an all-time. The company operates a cloud platform for email and text-message marketing.
In September, Klaviyo priced 19.2 million shares at $30. But the stock quickly fell below the offer price. Klaviyo cleared a cup-with-handle base on Sept. 17. It rallied for several weeks after that before settling into a six-week consolidation with a 41 entry. The 5% buy zone went up to 43.05.
Follow Ken Shreve on X @IBD_KShreve for more stock market analysis and insight.
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