We packed our latest Under the Hood report with several choice setups displaying strong relative strength, beautiful bases, and even a couple of names making bullish moves at key risk levels. There were a ton of potential long setups with risk skewed to the upside on this week’s list.
The only problem with this is that the direction of the underlying market was (and frankly, still is) largely in question.
Today, the broader market followed through with strong gains to the upside, supporting our view that a tradeable low has been made.
With this as our backdrop, we want to share three more setups from our most recent “Under The Hood” list as additional vehicles to express our thesis more aggressively on the long side.
Here’s the table from this past week’s report.
First up is Rollins Inc. $ROL, which specializes in pest management and sanitation services for the food industry. I thought most restaurants were shutdown… but it doesn’t seem to be affecting this stock’s performance.
Rollins printed a strong breakout from a multi-year base on both relative and absolute terms this summer. This month’s pullback brings this name back to our prior price objective near $52. Rollins has also remained resilient during the September selloff relative to the broader market.
The stock is now regaining momentum. We want to own Rollins as long as price is above 52 with a 1-3 month target at 65.
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