The recent market action has put a damper on many momentum trades. The FAANG names, in particular, have sputtered of late, but if you do a little digging there are some very interesting names that are showing signs of continued vigor.
Here are three names that I am holding:
Casa Systems (CASA)
CASA provides a suite of software-centric infrastructure products that allows cable service providers to increase network speed and bandwidth capacity.
The company had a blowout fourth-quarter report of $1.07, which exceeded estimates by $0.73 per share. The share count will go up substantially following its IPO so it will be hard to match these numbers but revenues should continue to grow at a 50% pace.
PagSeguro Digital (PAGS)
PAGS is known as the Brazilian Square (SQ) . It provides point-of-sale devices for "micro-retailers." In its most recent quarter revenue growth accelerated to 36% from 21% in the year before. Earnings are expected to more than double in 2018 to $1.09 and to reach $1.38 in 2019.
Health Insurance Innovations (HIIQ)
HIIQ provides short-term medical insurance as well as a variety of other insurance products. In its most recently reported quarter, revenues grew 35, and it increased 2018 guidance to $2.45-$2.55 versus existing expectations of $1.95.
The company has had a long-running regulator investigation that has held the stock back but recently, Canaccord Analyst Richard Close speculated that the company was close to a settlement. He has a $55 price target on the stock.
