Market Overview

Stocks to Watch The Week of October 29

One of the most predictable indicators of future volatility is previous near-term volatility. For example, if a stock has been more volatile than normal for the past two days, it is more likely that the stock will be volatile on the third day. Traders attempt to seek out and exploit unusual volatility in the stock market and identifying stocks that have made large moves in the preceding days can improve this process.

According to a simple market screen, there were six stocks with market caps above $300 million that rose more than 20 percent last week. Traders may want to follow these six names during the upcoming week, as some of them may yield up additional trading opportunities. Below, Benzinga highlights these stocks and the catalyst that triggered the large gains.

Applied Micro Circuits (NASDAQ: AMCC) - This stock soared on Friday after the company released its fiscal second-quarter earnings results. Applied Micro reported EPS of $0.16 compared to analysts' consensus estimates of $0.12. Revenues were $46.3 million compared to expectations of $45.28 million. On the back of the very strong results the shares surged more than 26 percent. After the big move, the stock is now trading above both its 20-day and 50-day moving averages and has a RSI reading of over 69.

DeVry (NYSE: DV) - The private education provider made its move on Friday after the company reported its fiscal first-quarter earnings report. The company reported EPS of $0.49 compared to analysts' consensus estimates of $0.30. Revenues in the quarter were $482.74 million which came in ahead of Street consensus revenue estimates of $482.67 million. The strong results caused the stock to jump around 25 percent. Over the last 5 days, DV is up a little better than 20 percent. The big earnings jump sent DV above trend-line resistance and the stock is now trading above both of its 20-day and 50-day moving average.

LogMeIn (NASDAQ: LOGM) - This stock jumped on Thursday and then added another 4 percent on Friday. The catalyst for the move in the shares was the company's third-quarter earnings results. LogMeIn reported EPS of $0.18, which bested analysts' consensus estimates of $0.16. Revenues were $35.1 million which was in-line with Street consensus. Prior to the two day up move in the stock, shares were trading near 52-week lows. Currently, LOGM is now trading above both its 20-day and 50-day moving averages, but below its 200-day moving average. The stock could be a candidate to continue rising in the coming week.

Overstock.com (NASDAQ: OSTK) - This small-cap stock exploded higher on Thursday and Friday and may be a candidate to continue rallying into next week. Over the last 5 days, OSTK is now up almost 40 percent. The catalyst for the massive move in the name was the company's third-quarter earnings results. Overstock reported EPS of $0.11 on revenues of $255.4 million. This was well ahead of the company's results in last year's corresponding quarter of a loss of $0.33 per share on revenues of $239.7 million. The huge move in the stock has sent OSTK to a new 52-week high of $15.49 heading into the trading week.

Stamps.com (NASDAQ: STMP) - This stock exploded to a 5-month high last week after the company released its fiscal third-quarter earnings results. Prior to jumping 27 percent last week, STMP had been in a downtrend. The company reported EPS of $0.50 versus consensus estimates of $0.38. The company also raised its full-year EPS estimates to $1.55 to $1.75 compared to prior estimates of $1.35 to $1.55. Currently, analysts have consensus EPS estimates of $1.50 for the full-year. After last week's rally, STMP is trading above its 20-day, 50-day and 200-day moving averages.

TASER International (NASDAQ: TASR) - This small cap company saw its shares surge more than 26 percent last week, with the big move coming on Friday. The catalyst for the move in the stock was the company's third-quarter earnings results. TASR reported EPS of $0.07 versus analysts' consensus estimates of $0.04. Revenues were $28.8 million versus estimates of $25.71 million. The stock is now trading near new 52-week highs above $8.00. The breakout in TASR could continue into next week and the stock will likely be very active on Monday.

Posted-In: Earnings Long Ideas News Guidance Short Ideas Small Cap Analysis Technicals Intraday Update Best of Benzinga

 

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