The holiday week started with little news but the market's intrinsic mood gave us plenty of reason to be thankful. Our stocks gained an aggregate 1% yesterday, with many BMR names that suffered through the summer coming back strong now.
What's exciting is the speed with which some of our most oversold stocks are closing the gap. Exact Sciences (EXAS: $82, up 5%) yesterday is a great example. Admittedly, it's still a heady 34% from its peak, but even with that decline to recover, it's still nicely higher than where it started the year at $63. All in all, this stock is still beating the market through the rollercoaster ride. If the next leg points up at this angle for any amount of time at all, BMR subscribers will end up well ahead of the index funds.
TPI Composites (TPIC: $17.79, up 5%) and Zscaler (ZS: $50, up 9%) likewise have substantial ground to make up, but at least for now the stocks are moving in the right direction.
Zscaler in particular got kind words from both Barron's and Merrill Lynch, which didn't have much of material interest to say beyond the fact that they're sticking with the company because its growth curve hasn't changed. Quite similar to what we've been saying too. The products aren't actually broken. Customers are happy. The only thing that shifted over the summer was the market's mood and you know what we say about that: moods come and go, cash flow is real. Zscaler has the flow on its side right now. If you were looking for an entry point, a short-term bottom is in place now.