Feeling like you need to get an education? Try these two stocks — Tarena (TEDU) and New Oriental (EDU). (September 21, 2016)
EDU TEDU
I want to look at two tickers here with just one letter in between, they both kind of do the same thing. First of all New Oriental ( NYSE:EDU ) here, EDU. This is a stock, the fundamentals are pretty good here, they have got accelerating earnings and revenues, but the chart is really, really awesome. It is not super, super high growth, but this trend isn’t super, super steep either. If you just look at the weekly chart you can see where the stock has been, but it is basically hitting all-time highs here. That is what we like to see, because one thing about stocks that hit all-time highs, they are kind of like cockroaches, there is not just one. Where there is one there is more. So I think you have got an opportunity here with EDU ( NYSE:EDU ). I would suggest buying some even now, maybe with a stop just under 46.00. I am talking a really tight stop. Then if the stock starts rolling above 48.60, lets call it 49.00, that is when you would add to your position. So this is one stock for you to be trading.
The other stock is Tarena International ( NASDAQ:TEDU ), this is also an educational company, in China. It is not quite as liquid, but here is the deal: On these fundamentals the growth is a lot higher. And this is what we want to be looking for, frankly, when you are looking at stocks that are going to outperform the market. It is in a really strong uptrend. The sales growth and the earnings growth is really, really pretty solid and it is accelerating. Here, I think you want to be long the stock. I am going to set an alert for members, if it goes above 15.25. If it breaks out above 15.25 that is where you would buy this stock. I think this stock is going to work just fine as long as it breaks that level. If you look at the weekly chart you can see what happens. This goes back a couple years, it is still essentially a new issue. I am not really looking at this clear back here in 2014, as being particularly relevant, there is just too much time that has gone by. My big deal here is, this last high, $15.18, that, in my view, is the all-time high, just from a trading standpoint. So once it starts trading above $15.00 I think you are good to go on this as well.
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