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Dear EarningsBeats Member:
We're always looking for companies that beat earnings expectations, gap up sharply on strong volume and then pull back to support levels that present solid reward to risk opportunities. One of those stocks on our Strong Earnings ChartList (currently 273 stocks on the list), Perspecta (PRSP) recently reported and beat earnings expectations, moved up nicely on strong volume then pulled back enough to catch our attention and became a trade alert to members on Monday as follows:
Dear Members:
Stock: Perspecta, Inc (PRSP)
Entry price: $22.93 (as of this email) with a second entry on any pullback to $22
Price target: $26
Stop loss: Any CLOSE below $21.50.
Reward to Risk ratio: 3.5 to 1 (assuming both entries hit)
At your service,
John Hopkins
EarningsBeats
You can see in the chart below that it got off to a good start, up 2.3% on Tuesday. It's still got a ways to go to hit our target and if it does continue to rise we'll raise the stop as well. In the meantime if we see a pullback it could provide an opportunity to get the shares cheaper, while reducing our cost basis as well, and thus the second entry level.
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