Josh Brown Called the Breakouts in These Two Stocks on His List. Where He Sees Them Going From Here

Why It Matters

The analysis shows how disciplined breakout trading can generate outsized returns while emphasizing risk management, a lesson valuable for traders and long‑term investors alike.

Key Takeaways

• Flex up 21% since April 9, now trading around $91.
• Flex earnings forecast 20% YoY EPS growth, 9% revenue rise.
• Starbucks shares jumped 8% after earnings, transactions up 4% YoY.
• Starbucks breakout target $120, 50‑day moving average at $96.
• Both stocks illustrate benefits of riding breakouts with rolling stops.

Pulse Analysis

Breakout trading remains a cornerstone of momentum investing, but success hinges on disciplined risk management. Josh Brown’s approach—tightening stops while letting winners run—offers a pragmatic balance between protecting gains and avoiding premature exits. By treating a breakout as a signal to adjust position sizing rather than a one‑off trade, investors can capture larger price moves without exposing themselves to unnecessary volatility.

Flex Ltd. exemplifies how sector tailwinds can amplify a technical breakout. The company’s data‑center hardware line has benefited from the AI‑driven surge in server demand, propelling year‑over‑year revenue growth of 9% and an anticipated 20% EPS increase. Valuation has expanded from a forward 20× to 25× earnings, reflecting investor optimism ahead of the upcoming earnings release. With the 50‑day moving average now near $70 and the stock trading well above $90, the technical picture aligns with the fundamental upside, reinforcing the case for a rolled‑up stop and continued exposure.

Starbucks’ recent earnings underscore the power of a fundamentals‑driven breakout. The coffee giant posted its best revenue growth since 2023, with comparable sales rising 6% globally and U.S. transaction volume up 4%—the strongest in three years. This volume‑led growth, combined with a clean technical breakout above $100, validates the $120 price target set by Brown’s team. As the 50‑day average climbs past $96, investors who maintain positions above this level can benefit from the ongoing turnaround, while still employing stop adjustments to guard against potential pullbacks. Together, these cases illustrate how merging technical signals with solid fundamentals can enhance breakout strategies for both traders and long‑term holders.