Here’s your trade on Mercury Systems ($MRCY) – March 5, 2025
Dan Fitzpatrick here at StockMarketMentor.com. Mercury Computer Systems ( NASDAQ: MRCY ), aerospace and defense.
This is a great company, there’s nothing wrong at all with the fundamentals of the company. They’ve had quite a turnaround over the last year or so. I like that this is climbing out of a pile of rubble here. It’s a little bit volatile, you can see super big spikes, which tend to be on earnings. Big ole spikes, you can see here, big EPS, wham, EPS big time here, EPS here, boom, big time here.
The big moves come on earnings and over the last three quarters they’ve been to the upside, you can see it here. We don’t have earnings for a while, so the way I see it is, this stock is going to be in the process, if history repeats itself, and it always does until it doesn’t. The way I see it is, this stock is going to continue to be setting itself up to form a springboard, so to speak, for this next move higher in another couple of months. I like the way this is trading.
What I would suggest doing, if you’re in this stock is, to make sure you define your risk. In this case, I would be using this low here, this intraday low, on the 25th, of 41.92. I’d be looking at this like 41.90 even. That would be my drop-dead date, I’m out of here, I’m wrong on the stock. But if that risk is okay for you, then you can just be hanging onto the stock. Hopefully, you’re going to get a little lift to the upside. If you want an even tighter stop you can certainly do it.
Put your stop below today’s intraday low. The problem with that is, candidly, you’re probably going to get stopped out. The stock’s been trading on lower-than-average volume, which means you can get some intraday volatility that you wouldn’t get when the stock is more liquid. My suggestion is, I think you should watch the stock for a day or two, For most of you, you probably haven’t been looking at this chart, I haven’t been looking at this stock. Watch it for a day or two, don’t just jump in tomorrow because Dan says to.
A lot of my trade ideas don’t work out, a lot of them do. Unfortunately, if I knew the difference between the two would only tell you about the ones that work out. Sadly that’s not the case for you or me, we just do the best we can with what we’ve got to work with. Set your risk limit, wait, and this stock. Wait to see if I’m correct that this stock’s going to be moving higher, then that’s when you start making your money.
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