4 Stocks Facing Bearish Momentum With Excellent Growth Prospects

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The following is a list of stocks that are signaling the "Death Cross", defined as the 50-day MA crossing below the 200-day MA. On the positive side of the trade, all of these stocks are set to grow faster relative to their competitors when comparing them to the following metrics:

  • TTM EPS Growth
  • Five Year Projected EPS Growth
  • Capital Spending Growth, Over the Last Five Years
  • Cash Flow Growth Rate, Over the Last Five Years

If these stocks continue to decline, as technical analyst would suggest, this list is a great starting point for investors looking to invest in beaten-up high growth companies.

Analyze These Ideas (Tools Will Open In A New Window)

1. Access a thorough description of all companies mentioned

2. Compare analyst ratings for all stocks mentioned below 

3. Visualize market cap changes for the top stocks mentioned

List sorted alphabetically by company name.

1. iGATE Corporation (IGTE): Information Technology Services Industry. Market cap of $960.36M. SMA50 at $17.53 vs. SMA200 at $17.42 (current price at $ 17.42). EPS growth 76.47% vs. industry average at 17.34%. Projected EPS growth 19.8% vs. industry average at 13.91%. Capital spending growth 6.67% vs. industry average at 4.65%. Cash flow growth rate 27.72% vs. industry average at 15.93%. It's been a rough couple of days for the stock, losing 5.17% over the last week.

2. ResMed Inc. (RMD): Medical Appliances & Equipment Industry. Market cap of $4.70B. SMA50 at $18.7 vs. SMA200 at $30.17 (current price at $ 30.17). EPS growth 23.11% vs. industry average at -66.45%. Projected EPS growth 16.55% vs. industry average at 12.73%. Capital spending growth 7.45% vs. industry average at 7.41%. Cash flow growth rate 22.01% vs. industry average at 13.41%. Relatively low correlation to the market (beta = 0.65), which may be appealing to risk averse investors. The stock is a short squeeze candidate, with a short float at 8.99% (equivalent to 11.53 days of average volume). The stock is currently stuck in a downtrend, trading -5.14% below its SMA20, -6.84% below its SMA50, and -6.94% below its SMA200. The stock has gained 1.02% over the last year.

3. Salix Pharmaceuticals Ltd. (SLXP): Drugs - Generic Industry. Market cap of $1.97B. SMA50 at $20.82 vs. SMA200 at $33.73 (current price at $ 33.73). EPS growth 42.7% vs. industry average at -7.19%. Projected EPS growth 28.83% vs. industry average at 5.7%. Capital spending growth 49.81% vs. industry average at 2.73%. Cash flow growth rate 28.47% vs. industry average at 8.86%. Relatively low correlation to the market (beta = 0.7), which may be appealing to risk averse investors. The stock is currently stuck in a downtrend, trading -7.44% below its SMA20, -16.32% below its SMA50, and -16.89% below its SMA200. The stock has had a couple of great days, gaining 6.53% over the last week. The stock has performed poorly over the last month, losing 18.71%.

4. Wipro Ltd. (WIT): Information Technology Services Industry. Market cap of $33.61B. SMA50 at $18.33 vs. SMA200 at $13.09 (current price at $ 13.09). EPS growth 33.33% vs. industry average at 17.34%. Projected EPS growth 16.75% vs. industry average at 13.91%. Capital spending growth 13.03% vs. industry average at 4.65%. Cash flow growth rate 22.66% vs. industry average at 15.93%. The stock has lost 1.15% over the last year. 

Growth data sourced from Fidelity, pricing data and all other data sourced from Finviz.



The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of The NASDAQ OMX Group, Inc.



This article appears in: Investing , Investing Ideas , Stocks

Referenced Stocks: IGTE , RMD , SLXP , WIT

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