Why EXTR Could Be a Hidden Gem in Networking

I’ve had my eye on $Extreme Networks(EXTR)$ and believe it’s one of the most interesting U.S. stocks to watch right now.

EXTR scores higher than 96% of all stocks based on IBD’s SmartSelect—a combination of fundamental and technical strength. That puts it in elite company, signaling well-rounded performance. The company also reported a robust +35% year-over-year revenue increase in Q3, marking its fourth consecutive quarter of acceleration. That’s a clear indicator of strong underlying business momentum.

Within the Computer-Networking sector, EXTR ranks first—outpacing peers like $Cisco(CSCO)$ and $Radware(RDWR)$. That dominance tells me the market is beginning to shift its focus toward more agile, software-defined networking solutions.

EXTR Monthly Chart

The technical setup looks promising as well. A multi-years base has formed, and it held up really well. This could be a classic cup-with-handle pattern forming, which is signaling accumulation and a potential breakout.

EXTR Weekly Chart

Zooming in to the weekly chart, there is clearly a double bottom pattern formed. The confirmation will be a breakout above 19.30 with spike in volume. A move like that would confirm buying interest and increase the chances of a breakout.

How I would act

There are many ways to trade this idea depending on your own risk appetite. The thumb of rule is to make sure you have stop-loss with at least risk-reward ratio of 1:3.

For myself, I would initiate a small position around current level, anticipating volume to spike. A 40–60% volume surge on breakout days would give me confidence it’s not a false move. Post-breakout, I’d like to see EXTR maintain its gains—if it holds firm above $19, I’d consider adding more, aiming for a pullback to the low-to-mid $19 range. With demand growing for secure, scalable enterprise and campus networking—especially in hybrid work environments—I see room for EXTR to grow well into 2026 and beyond.

However, I see this as a trade instead of investment, because the main reason to buy into this stock is due to the technical aspect. If volume remains light and EXTR stalls near $17, that’s a red flag—I’d exit before buying further. While EXTR’s rating is strong, it trades at a mid-cap multiple. If market sentiment turns and capital shifts to larger caps, EXTR could underperform temporarily.

To sum it, I’m planning to start with a position at entry, tighten stops just below $16, and scale further as it confirms above $19. It’s a high-upside, strategically positioned tech player that could deliver significant alpha if the breakout materializes.

@MillionaireTiger @Tiger_comments @Daily_Discussion @CaptainTiger @TigerSG

Disclaimer: This is a general analysis and not financial advice. Always conduct your own research before making any investment decisions.