• Calix (CALX) shows strong technical momentum and is trading near its 52-week high.
• Barchart assigns CALX stock a 100% technical “Buy” signal.
• Fundamentals are solid, with revenue and earnings growth projected this year. 

Today’s Featured Stock:

Valued at $3.05 billion, Calix (CALX) provides the cloud, software platforms, systems, and services required for communications service providers to simplify their business, excite their subscribers, and grow their value. 

What I’m Watching:

I found today’s Chart of the Day by using Barchart’s powerful screening functions. I sorted for stocks with the highest technical buy signals, superior current momentum in both strength and direction, and a Trend Seeker “buy” signal. I then used Barchart’s Flipcharts feature to review the charts for consistent price appreciation. CALX checks those boxes. Since the Trend Seeker signaled a buy on April 24, the stock has gained 19.82%.

CALX Price vs. Daily Moving Averages:

Barchart Technical Indicators for Calix:

Editor’s Note: The technical indicators below are updated live during the session every 20 minutes and can therefore change each day as the market fluctuates. The indicator numbers shown below therefore may not match what you see live on the Barchart.com website when you read this report. These technical indicators form the Barchart Opinion on a particular stock.

When a stock is trading above all its daily moving averages and closed within 1.17% of its 52-week high, it won’t take much to hit another new high.

• Calix has a 100% technical “Buy” signal.
• The stock closed at $46.79 on May 22, above its 50-day moving average of $38.12.
• CALX has a Weighted Alpha of +50.42.
• The stock has gained 41.5% over the past year.
• Trend Seeker “Buy” signal intact.
• CALX is trading above its 20, 50 and 100-day moving averages.
• The stock has made 18 new highs and is up 25.2% in the last month.
• The 14-day Relative Strength Index is at 80.68%.
• The technical support level is at $46.50.

Follow the Fundamentals:

• $3.05 billion market cap.
• Revenue is projected to grow 8.50% this year and another 10.00% next year.
• Earnings are estimated to increase 71.62% this year and an additional 58.85% next year.

Analyst and Investor Sentiment on Calix:

I don’t buy stocks because everyone else is buying, but I do realize that if major firms and investors are dumping a stock, it’s hard to make money swimming against the tide.

It looks like not only Wall Street analysts, but also many of the popular investing advisory services, are moderately bullish on this stock.

• Wall Street analysts tracked by Barchart issued four “Strong Buy,” one “Moderate Buy,” and one “Hold” opinion on the stock with price targets between $38 and $53 with a consensus target of $48.83.
• Value Line gives the stock an above-average rating with a price target of $50.
• CFRA’s MarketScope gives the stock a “Hold.”
• Morningstar thinks the stock is 5% overvalued.
• Of the 352 individual investors following the stock on Motley Fool, 209 think the stock will beat the market, while 62 think it won’t.
• 6,769 investors monitor the stock on Seeking Alpha, which rates the stock a “Strong Buy.”

The Bottom Line:

Calix currently has momentum and support from both the market and individual investors. Plus, its fundamentals are solid with projected revenue and earnings growth for the next two years.

However, due to volatility, speculation, and a slightly elevated price-earnings ratio, I recommend disciplined risk management and regular stop loss reviews.

Additional disclosure: The Barchart of the Day highlights stocks that are experiencing exceptional current price appreciation. They are not intended to be buy recommendations as these stocks are extremely volatile and speculative. Should you decide to add one of these stocks to your investment portfolio it is highly suggested you follow a predetermined diversification and moving stop loss discipline that is consistent with your personal investment risk tolerance and reevaluate your stop losses at least on a weekly basis.