On Thursday, shares of the cloud-based software provider, Calix Inc. (NYSE:CALX) gained 1.14%, extending Wednesday’s gains to more than 10%. The company revealed its addition to the S&P Mid-cap 400 Index on Wednesday, spiking a 9% gain in the stock price.
Calix will replace the financial services company CIT Group Inc. (NYSE:CIT) effective on the 4th of January 2022. The stock rallied more than 30% since the 20th of December, extending its year-to-date gains to more than 171%.
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From an investment perspective, although Calix shares have spiked to trade at a steep forward P/E ratio of 82.02, the stock offers exciting growth prospects, with analysts expecting its EPS to grow by nearly 268% this year, before rising at an average annual rate of 20% over the next five years.
Therefore, Calix could still be an exciting option for long-term growth investors. Its addition to the S&P Mid-cap 400 Index will attract more attention, boosting trading activity.
Technically, Calix shares seem to be trading within a sharply ascending channel in the intraday chart. As a result, the stock has rallied closer to the overbought conditions, creating a perfect opportunity for a technical pullback.
Therefore, investors could target profits at about $76.05, or lower at $72.68 while $82.80 and $86.31 are crucial support zones.
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