Will Sprint Nextel Breakout?

With shares of Sprint Nextel (NYSE:S) trading around $5, is S an OUTPERFORM, WAIT AND SEE or STAY AWAY? Let’s analyze the stock with the relevant sections of our CHEAT SHEET investing framework:

C = Catalyst for a Stock’s Movement

Sprint Nextel offers wireless and landline communications products and services to individuals and businesses in the United States. With an increasing portion of the population adopting these products and services, Sprint Nextel is poised to continue to increase profits. Also, as the desire to connect with others continues to rise, profits should follow and so should the stock price.

T = Technicals on the Stock Chart are Strong

Sprint Nextel’s long term price chart sees it struggling over the years but it may now be in its recovery stages. Trading around a critical resistance level near $6 to $7 per share, the stock could get going if it successfully clears it. If not, it may pull back a bit before taking another shot at this critical price zone.