Q: A recent question asked for a suggested entry stock price for TOI. Your answer was $154. Today (May 12) TOI closed at $159.52. That is a difference of $5. My question is what parameters & technique did you use to determine that $154 could be an entry price. Thanks … Cal
5i Research Answer:
We like TOI's momentum and it recent reported earnings, which means some earnings uncertainty is now out of the way. If the market continues to rise in the coming days/weeks, we feel that TOI has strong support to continue as well. Thus, with a difference of only $5, we felt there could be some downside in the coming days as we are coming off of 9 consecutive positive days for the S&P 500, but we also feel that its current price +/- 3% for near-term volatility could represent a decent entry point.
Essentially we do not believe there is much near-term downside given its earnings have passed and the stock is holding up well, unless the market declines significantly as well, which is always a possibility.