ETON: A Growth Name I’m Watching for a Pullback
ETON is a name I’ll be watching closely to see if we get a nice, tight, orderly pullback that could create an attractive entry opportunity.
The stock had a huge gap-up after reporting triple-digit earnings growth, ran higher for several days, and now appears to be pulling back on lighter volume. That is exactly what I like to see following a powerful move.
The fundamentals are strong:
• Quarterly EPS growth: 530%
• Quarterly sales growth: 98%
• Pretax margin: 31%
• ROE: 35%
• Fund ownership increasing quarter over quarter
• 1yr Relative Strength Rating: 97
ETON has the fundamental growth characteristics we look for and has also been a strong performer coming off the July 29 lows.
This is a great CANSLIM name outside many of the AI-related areas that have recently started showing trouble again. Although many of those stocks made powerful moves off the July 29 lows, several have struggled to return to their previous highs. Many that did make it back have struggled to break out successfully.
Now I want to see if ETON can pull back on light volume with tight price action, potentially setting up a low-risk, high-reward entry opportunity.
