Scalper1 News
While makers and sellers of smartphones and tablet PCs are glamour brands, some of the companies that make the equipment to make those devices work are quietly turning into attractive investment choices. The telecom infrastructure industry group remains in the bottom half of IBD’s rankings, yet it’s made a rapid advance over the past few weeks as its leaders shape attractive charts. The group ranked No. 107 in IBD Weekly, up from 147 four weeks ago. Three top-rated stocks in the group are of particular interest because they have topped or are approaching buy points. The most critical to watch now is Broadsoft ( BSFT ), which rose above the 42.16 buy point of a base-on-base pattern Monday in active trading. For the stock, it’s been an impressive rebound after the May 2 earnings announcement rattled shares. Although it beat profit expectations, Broadsoft projected its current-quarter operating EPS below views . Shares fell as much as 11% on the news, but they quickly recovered and continued working on the base until Monday’s breakout. The company helps big telecoms deliver unified communications, integrating voice, video and text messaging and other forms into a single stream. Dycom ( DY ), which is on the IBD 50 , is trying to break out past a 73.28 buy point. With the earnings report due Tuesday after the close, it could be the next telecom infrastructure stock to make a move. Analysts expect Dycom to earn 74 cents a share and to report sales of $597.8 million. Dycom has a nearly perfect EPS Rating of 98. In a report Monday from D.A. Davidson, the research firm said, “ AT&T ( T ), Verizon Communications ( VZ ) and other presumed Dycom customers have announced plans for ongoing major fiber expansion, suggesting near-term growth in wireline construction activity will continue to be robust.” Those same trends figure to aid other telecom infrastructure companies. Indeed, capital spending by the major telecoms drives much of the infrastructure industry’s fortunes. CommScope Holding ( COMM ) is forming a cup-with-handle base with a buy point at 31.80. The Hickory, N.C.-based company helps telecoms design, build and maintain wired and wireless networks. Ubiquiti Networks ( UBNT ) broke out of a base May 6 after it reported earnings. Ubiquiti, which builds wireless networks around the world, beat estimates. Earnings and sales growth have accelerated the past few quarters, following a slump in the first half of 2015 that saw EPS and sales decline. The stock is in buy range from the 37.20 buy point. Scalper1 News
Scalper1 News