Regal Rexnord (RRX) another lesser followed industrial adjusting calls from Oct $170 up to Nov $175 bought 500x at $6.35 in the rally as it forms a nice bull flag. RRX has stairstepped higher the past few months and now nearing a breakout of the cup and handle pattern as it clears back over teh YTD point of control (POC) of 167.50 for a likely move back to the former highs at 183 and with its peers in the industrial sector seeing similar upside options flows and bullish price action, it could continue higher towards 200 in due time. RRX is amn $11.4B electrical equipment industrial name that trades at 16.2x earnings, 2.7x sales and seeing margins expanding into FY25 with EPS set to increase by +21%. 

Regal Rexnord Corporation manufactures and sells industrial powertrain solutions, power transmission components, electric motors and electronic controls, air moving products, and specialty electrical components and systems worldwide. Loop Capital recently noted the stock looks compelling as they say Regal’s low-double-digit annual EPS growth target is seen as “highly achievable”, with more than half of this expansion being driven by controllable de-levering, while the remainder assumes “fairly modest” volume growth. Loop has a Buy rating and $200 price target.