PreMarket Prep Stock Of The Day: Virgin Galactic

Benzinga's PreMarket Prep airs every morning from 8-9 a.m. ET. During that fast-paced, highly informative hour, traders and investors tune in to get the major news of the day, the catalysts behind those moves and the corresponding price action for the upcoming session.

On any given day, the show will cover at least 20 stocks determined by co-hosts Joel Elconin and Dennis Dick along with producer Spencer Israel.

For those who don't have the time to tune in live or listen to the podcast, Benzinga will highlight one stock that merits further discussion. This analysis is not a buy or sell recommendation.

They say a rising tide lifts all boats. For the sake of this article we'll say a rising tide lifts all ships, including spaceships. You guessed it: Virgin Galactic Holdings Inc is the PreMarket Prep Stock Of the Day.

Virgin Galactic Out Of This World From December To Mid-February

The raging bull market at the beginning of the year took Virgin Galactic, a spaceflight corporation designed for space tourism, along for the ride.

From its December low ($7.14), it rocketed to $42.49 in February before retreating along with the broad market to end the month at $24.60. 

Stock Crash Lands In March 

Although the broad market did not find a bottom until March 23, the issue found a safe place to land on March 18 at $9.06. It found support in the same area the following day at $9.40. The stock posted matching closes in those two sessions at $10.50, and the foundation was set for a recovery rally.

Virgin Galactic Gears Up For Rebound With Broader Market

Just as the wider market launched an explosive rally over the next weeks, so did the shares of this issue. Similar to the broad market, the issue reached its highest level since its mid-March low earlier in Tuesday's session.

The stock was rallying by 24.92% to $19.30 at the time of publication. 

Virgin Galactic Moving Forward

Being the cult stock that it is, it is impossible to predict where Virgin Galactic's price will land in the short- or long-term. If you believe the public will be ponying up $350,000 for a trip to outer space anytime soon, this is the company for you.

Photo by Tony Hisgett via Wikimedia.