Tucows (TSX:TC)(NASDAQ:TCX) is a Toronto-based company and the third-largest domain registrar worldwide. Shares have surged 44% in 2019 as of close on April 15. The stock is up 61% from the prior year.
Tucows has steadily climbed since the release of its third-quarter results from 2018. For the full-year, Tucows reported net revenue of $346 million which was up 5% from the prior year. Adjusted EBITDA climbed 21% year-over-year to $50 million and net cash from operating activities surged 17% to $37.2 million.
The stock now sits at all-time highs, closing at an astonishing $119.18 on April 15. Canadian and U.S. indexes have enjoyed big rallies to start 2019, but investors need to be cautious as economic headwinds build up. Tucows boasts a dominant position is a market that will continue to experience steady growth into the next decade, but prospective buyers cannot justify adding the stock at its current price.
As we have gone over, Tucows sits right around an all-time high. Shares had an RSI of 72, which puts it well into overbought territory as of close on April 15. However, it is worth noting that the stock has been in technically overbought territory for much of 2019. Swearing by the "sell signal" would have had investors miss out on big gains from mid-January onward.
Tucows is set to release its first-quarter results for 2019 in early May. Investors can be forgiven for wanting to ride the wave into May, but patient shareholders should consider cashing in now.
