Among the top IPO stocks, Canada Goose (GOOS) is quickly proving its mettle amid the stock market’s sell-off. Canada Goose stock is trading just below a potential buy point after last week’s breakout.
The IPO Leaders list identifies the stock market’s newest companies with big earnings growth. The list has special screening criteria to find up-and-coming stocks with strong fundamental and technical traits.
Toronto-based Canada Goose designs, makes and sells premium outerwear for men, women and children.
Within the apparel manufacturing industry group, Canada Goose is the top-ranked stock, with a 98 out of a highest-possible 99 IBD Composite Rating, according to the IBD Stock Checkup. The Composite Rating blends key fundamental and technical metrics to gauge a stock’s leadership qualities.
Is Canada Goose An IPO Stock To Buy?
The stock soared to a breakout above a double bottom’s 65.92 buy point last week after the company’s strong earnings results. But heavy selling Monday and again Tuesday brought the stock back below the entry. Shares were slightly below the buy point in the stock market today. (Another possible entry is at 68.85.)
Canada Goose was highlighted in Monday’s Stocks Near A Buy Zone column, when it pulled back into buy range. With the stock market trend back in a correction, investors should be prudent and wait for potential resurgent strength in the broader market before buying stocks. Investors should focus on stocks that are exhibiting strong relative strength.
Keep in mind that the stock’s latest formation is a risky fourth-stage base. Also, its wide and loose price action, especially compared to prior bases, is not constructive behavior.
Over the past 13 months, Canada Goose was a big winner after breaking out above a cup with handle’s 21.84 buy point on Oct. 31, 2017. At this summer’s peak price, shares gained as much as 214% before correcting.