Who doesn’t love a good comeback story?
It’s the reason movies like Rocky and Rudy are American classics.
Of course, comeback stories aren’t just for film buffs…
They also play out all the time in the stock market.
Over the past 12 months, one of the best-performing stocks was none other than Abercrombie & Fitch (ANF).
Shares of the apparel brand have surged 287% over the past year, outperforming many of the best artificial intelligence stocks! I bet most traders didn’t even know this company was still a “thing.”
Moves like this happen more often than you’d think.
That’s why I’m making Fortinet (FTNT) my latest Trade of the Week.
Fortinet is one of the world’s top cybersecurity firms. It was also one of the strongest stocks in the entire market last summer, rallying more than 70% between last January and July. And it was one of the first stocks to break out to new highs.
But the good times didn’t last. In August, Fortinet shared an earnings report that Wall Street didn’t like, igniting a multi-month sell-off.
However, judging by its weekly chart, it looks like the worst is over for FTNT:
Source: StockCharts
The stock is getting back on track. Since November, FTNT has rallied 42% and reclaimed its 200-day moving average.
Buy a starter position in FTNT today. I believe it can hit $80 within the next six months.
Exit your position if FTNT closes below $59. That gives us a risk-reward ratio of 4:1 on this trade.
Action to take: Buy FTNT at current market prices.
Risk management: Exit your position if FTNT closes below $59.
Justin Spittler
Chief Trader, RiskHedge
