This morning is a good example of why it pays to get in when a stock is truly cheap — before Wall Street sounds gives the all-clear signal…

We now have a 65% gain in Kornit Digital (Nasdaq: KRNT) after it announced its quarterly earnings — a loss of $0.25 a share, compared to a loss of $0.03 a year ago.

Kornit’s executives say they have “high confidence” of delivering strong growth for the year as business normalizes in the second half.

That was all Wall Street needed to hear. The stock was already 25% higher before the opening bell this morning.

KRNT Zooms Higher on Earnings Announcement

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As the company noted, the big loss was entirely due to the temporary effects of the COVID-19 pandemic. Schools, as well as pro and amateur sports teams, put off uniform purchases, depressing sales of Kornit Digital’s digital printing machines (and specialized inks).

As the rest of the year progresses and the economy slowly reopens, I expect our position in KRNT to continue climbing. If you own the stock, I recommend you hold for now for bigger gains later.

If you do not own the shares, you can still buy — just buy a smaller amount. That way, if the stock gives back a portion of its gains (which often happens in the middle of a breakout move), you won’t be scared out of the position.

Verra Mobility (Nasdaq: VRRM) — our Law of Unstoppable Profits recommendation — is up more than 6% today, giving us a gain of 50% in the portfolio.

One Wall Street firm raised its price target to $14 a share, giving the stock another leg up on the charts.

VRRM Hits the Gas on Its Climb Higher

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The stock can move much, much higher from here. The shares are a proxy for the reopening of the U.S. economy; the transportation and travel sectors have only just begun to click to life as many quarantine and lockdown orders have lifted in recent weeks.

IRobot (Nasdaq: IRBT) is off to a great start, up 11% since I recommended the stock in the June edition of the newsletter.

SmileDirectClub’s (Nasdaq: SDC) shares did well in the face of yesterday’s weak stock indexes.

The company announced it is suing NBC News for defamation, asking damages of $2.8 billion. The lawsuit is in response to what I believe was a strongly one-sided attack on the company in mid-February.

AeroVironment (Nasdaq: AVAV) — our military drone manufacturer — is up 5% today, giving us a 10% gain after little more than a month. It was one of two stocks I recommended in the May edition of the newsletter (Kornit Digital being the other).

I’m confident that both are going to be huge standouts for us as the weeks roll on.

I’ll have more to say in the Sunday portfolio update. Enjoy our gains until then!

Best of Good Buys,

Jeff L. Yastine
Editor, Total Wealth Insider