PreMarket Prep Stock Of The Day: Nautilus

As the COVID-19 pandemic extends into its seventh month, there have been winners and losers in the stock market. A few sectors that have greatly benefited from it are companies related to outdoor activities and home exercise.

One company that has kind of flown under the radar is Nautilus Inc. NLS and is the PreMarket Prep Stock Of The Day.

The Company: Nautilus is a global technology-driven fitness solutions company. It designs home-fitness equipment that it sells under the Nautilus, Bowflex, Octane Fitness, and Schwinn brands.

Underperformer Since 2016: Nautilus made it all-time high in September 2016 ($24.99) and posted its all-time closing high that month on Sept. 23 ($24.65). It's down 42% over that time period, while the S&P 500 index has gained 57%.

Quadruple Bottom On The Monthly Charts: Investors have had plenty of opportunities to purchase the issue under $2 on several occasions over the last 13 months. Its primary base was formed last fall when it bottomed in August ($1.21), September ($1.25) and October ($1.20).

When the market bottomed in March 2020, Nautilus did the same on March 20 when it found buyers at $1.20 once again.

Ripping Higher In Five Of The Last Months: Nautilus rallied off its March low to end the month at $2.61, which was down for the month. It exploded in April to $6.49, adding 441% off its March low. After being slightly in the red for May, the rally continued in June, climbing to $9.27.

It grinded higher in July, ending the month at $10.43 and the same in August, peaking at $15.91 but falling back to end the months at $11.85.

Citron Flexes Its Muscles: It matched that high on Sept. 2, reaching $15.89 and ended Tuesday's session at $13.71.

After being dormant over the last few months, Andrew Left of Citron Research threw his weight behind the issue before the open.

He called the company the "fastest growing name in stay at home fitness."

Wednesday’s Price Action: After a higher open, it made an attempt to clear its rebound high, but came up shy at $15.39 and reversed course. So far, the ensuing decline has found support just above Tuesday's close ($13.71), only reaching $13.95. As of 1:35 p.m. ET, it has rebounded back into the mid-$14 handle on much higher than average volume,

For another leg higher, the issue needs to clear the pair of highs just under $16 and post a series closes above the key resistance level.