4 stocks ready to record double-digit gains with the golden cross signal

Marketbeat’s numerous tools for investors include screenshots and analysis of fundamental and technical factors. The tool we will look at today is a gold cross technical screen. A golden cross occurs when a short-term EMA, such as a 30- or 50-day average, crosses above a long-term EMA. Long-term EMAs could last 100 to 300 days, but what matters is the crossover.

Technical analysis assumes that the shorter EMA represents the activity of short-term oriented traders and the more extensive activity of long-term oriented traders; when the short crosses the long, it signals a convergence of markets that can lead to accelerated stock price action. A market convergence occurs when one or more technical factors signal a buy, suggesting a high degree of commitment on the part of the market. The higher the degree of commitment, the greater the price action.

Allot Communications, Ltd is returning to growth

Allot, Ltd NASDAQ: EVERYTHING is a technology company focused on network security for businesses and ISPs. Its stock price has fallen significantly over the past year as business contracted and analysts cut their price targets. The point today is that a golden cross at the 30 and 150 day EMA signals a bottom, and there is a high probability that the stock will enter a full reversal within the next 12 months.

The fund and the Golden Cross aligned with recent results, which were better than expected and provided favorable guidance. Guidance is not solid, but calls for stable revenue and break-even conditions in 2024, and analysts expect a return to growth by the end of the year. Marketbeat.com tracks three analysts with reports on Allot; they rate the stock a Moderate Buy and consider it undervalued, trading below the low end of their target range.

Datasea Inc. is growing at a breakneck pace

Datasea NASDAQ:DTSS is a smaller 5G operator in China that provides services to mobile operators, smart cities and enterprise security. Its Gold Cross is driven by two recent news events that support its four-digit growth prospects and outperformance potential. The latest news was released in early March and helped confirm the technical price action.

The company is targeting 1,100% revenue growth this year, and the market expects growth to continue into the next fiscal year. No analysts have rated this stock, but the institutional activity is noteworthy. Institutions, including insiders and large shareholders, own more than 80% of the shares and have purchased them recently.

GSI technology: a golden crossover based on artificial intelligence

GSI technology NASDAQ: GSIT is a niche semiconductor manufacturer focused on memory solutions and computer vision applications for industrial, enterprise and government use. The company’s offerings are in high demand and fuel growth with the possibility of hypergrowth in the coming years. A recent announcement led the Golden Cross. The company is entering into a sale-leaseback agreement for its property in Sunnyvale, which will raise $11.85 million in capital. The capital raise will help the company sustain operations as it works to launch its Gemini-II product and maintain a strong balance sheet. The company has no debt.

The IAC is turning a corner

IAC NASDAQ: IAC is an omnichannel media giant with brands like Ask.com and Angi (formerly Angie’s List) in its portfolio. The stock recently received a Gold Cross along with its fourth-quarter results, which were weaker than expected but indicated a shift in the business. The company plans to return to growth and profitability this year and produce a full year of profits in 2025. Analysts like the stock and have ranked it on Marketbeat’s list of best-rated stocks. They have pegged it at Moderate Buy and see it as a deep value, trading below the low end of their target range.

Before you consider Allot Communications, you’ll want to hear this.

MarketBeat tracks Wall Street’s highest-rated and best-performing research analysts and the stocks they recommend to their clients on a daily basis. MarketBeat identified the five stocks that top analysts are quietly whispering to their clients to buy now before the broader market takes hold… and Allot Communications wasn’t on the list.

While Allot Communications currently has a “Moderate Buy” rating among analysts, top-rated analysts believe these five stocks are better buys.

View the five stocks here