Breakout Stocks To Watch: Quantenna Soars On 1,800% Growth

How can you quickly find top breakout stocks to watch? One source to check each week is the IBD Breakout Stocks Index, currently featuring several newer IPO stocks, including Quantenna Communications (QTNA).


Along with Quantenna, fellow IPO stocks Zscaler (ZS), Trade Desk (TTD), Coupa Software (COUP), Anaplan (PLAN), and Atlassian (TEAM) are also highlighted on the IBD Breakout Stocks Index. Each of these stocks have also earned a spot on the IPO Leaders screen.

The current components of the IBD Breakout Stocks Index are published every Tuesday after the market close.

Quantenna Among Top Breakout Stocks To Watch

Similar to the Alibaba (BABA) IPO in 2014, Quantenna initially made a nice gain following its initial public offering in October 2016. But as Alibaba, Facebook (FB) and Square (SQ) did and many IPO stocks often do, Quantenna went into a slump not long after going public.

In September 2018, the provider of Wi-Fi technology for internet service providers and the consumer market began forming what turned into a cup with handle. While forming that pattern, Quantenna reset its base count by undercutting the low in its prior consolidation.

Last week, the stock shot past the 19.34 buy point, earning it a spot on the latest edition of the IBD Breakout Stocks Index. Volume on the day of the breakout was 403% above average, a clear sign that large investors were aggressively picking up shares.

The stock added to those gains over the next three days and is now extended (i.e., more than 5% above the initial entry.) While Quantenna is not currently in buy range, given its accelerating earnings and sales growth, A+ Accumulation/Distribution Rating and five quarters of rising fund ownership, it’s certainly among the top IPO stocks to watch.

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Under-The-Radar IPO Stocks To Watch

Like many newer IPO stocks, Quantenna Communications is not a household name. Yet it already sports a strong showing for many of the most important stock-picking criteria.

The San Jose, Calif.-based company holds the No. 1 ranking among semiconductor manufacturing stocks with the highest-possible 99 Composite Rating.

On Feb. 4, Quantenna reported 1,800% earnings growth for Q4, and analysts are looking for a 366% increase in Q1. Revenue growth also accelerated to 52%, up from 18% in the prior quarter.

So while Quantenna may not be well known outside of the Wi-Fi and semiconductor industries, it is a name growth stock investors should have on their watch lists. And regularly checking the IBD Breakout Stocks Index can help you discover such under-the-radar companies.

IBD Breakout Opportunities ETF

The IBD Breakout Opportunities ETF from Innovator Capital Management tracks the IBD Breakout Stocks Index. As with other index ETFs, this allows you to essentially invest in the entire index in addition to or rather than buying individual stocks. Learn more about the ETF and Innovator.


Looking For Potential Breakout Stocks? Start With These Lists

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Breakout Stocks And Technical Analysis

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