New Companies Back on the Rise


Back in the spring, there was a wave of bullishness in initial public offerings. After a few pullbacks, some of those companies are pushing higher again.

Take a name like ZScaler (ZS), which provides cloud-computing security services. It chopped around after crushing estimates on June 7, but is hitting new highs today. Do traders expect another strong set of numbers on September 5?

Docusign (DOCU) followed almost the same path. It also made a new high today and has the same release date of September 5.

There’s also the pair of marijuana-related companies. Tilray (TLRY), which makes cannabis extracts and medicines, has more than doubled from its July 18 IPO. Producer Canopy Growth (CGC) has traded publicly longer but it’s gotten much more active since June. It also made new highs today.

Then you have Roku (ROKU). The streaming-video company has only been public for 11 months. It crushed estimates earlier this month, consolidated briefly and started rampaging higher this week. Another all-time high in this one…

Arlo Technologies (ARLO) has yet to be covered on Market Insights. The provider of easy-to-use security cameras with smart-phone integration went public on August 3 for $16 and now trades around $23. Management speaks at Deutsche Bank’s Technology Conference on September 12.

Generic-drug maker Amneal Pharmaceuticals (AMRX), which went public in May, also hit a new high this week after beating out Lannett (LCI) for a key contract.

Pluralsight (PS) could be another one to watch. It’s steadily trekked higher all month after beating estimates on August 2. This is a unique company with plans to disrupt the education industry. It could be worth a look if you’re interested in disruption.

Finally, traders may notice one of the highest profile IPOs is missing from this post: Spotify (SPOT). The streaming-music provider hit a new high after reporting earnings a month ago, but has drifted in a range since. Is it just resting, or has it fallen out of favor?

Disclosure: This post is intended for education purposes and should not be interpreted as a trade recommendation.

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David Russell is VP of Market Intelligence at TradeStation Group. Drawing on two decades of experience as a financial journalist and analyst, his background includes equities, emerging markets, fixed-income and derivatives. He previously worked at Bloomberg News, CNBC and E*TRADE Financial. Russell systematically reviews countless global financial headlines and indicators in search of broad tradable trends that present opportunities repeatedly over time. Customers can expect him to keep them apprised of sector leadership, relative strength and the big stories – especially those overlooked by other commentators. He’s also a big fan of generating leverage with options to limit capital at risk.