7 Conservative Accounting Stocks Hitting a Bullish Technical Crossover

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Companies have different levels of accounting risk that depend on the reliability of their financial reporting estimates. When these estimates significantly deviate from reality, earnings become less sustainable. Therefore, accounting risk is an important consideration in any stock analysis.

Below we present a list of 7 stocks that have recently exhibited the technical “Golden Cross”, with their 50-day moving average crossing above their 200-day moving average. According to forensic accounting firm Audit Integrity, these stocks also have conservative accounting practices, with Accounting and Governance Risk (AGR) scores above 70.

We also created an price-weighted index of the stocks mentioned below, and monitored the performance of the list relative to the S&P 500 index over the last month. To access a complete analysis of this list's recent performance, click here.

Do you think these are trustworthy names? Use this list as a starting-off point for your own analysis.

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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 by AGR score.

1. Vector Group Ltd. (VGR): Cigarettes Industry. Market cap of $1.39B. SMA50 at $17.49 vs. SMA200 at $17.33 (current price at $18.77). According to Audit Integrity, the company has Conservative accounting and governance risk, with an AGR score of 91. The stock has a relatively low correlation to the market (beta = 0.47), which may be appealing to risk-averse investors. The stock is a short squeeze candidate, with a short float at 7.98% (equivalent to 14.1 days of average volume). The stock has gained 22.93% over the last year.

2. Vicor Corp. (VICR): Diversified Electronics Industry. Market cap of $671.40M. SMA50 at $15.90 vs. SMA200 at $15.80 (current price at $16.29). According to Audit Integrity, the company has Conservative accounting and governance risk, with an AGR score of 90. The stock is a short squeeze candidate, with a short float at 9.66% (equivalent to 16.6 days of average volume). The stock has gained 22.3% over the last year.

3. Marten Transport Ltd. (MRTN): Trucking Industry. Market cap of $474.55M. SMA50 at $21.82 vs. SMA200 at $21.71 (current price at $21.50). According to Audit Integrity, the company has Conservative accounting and governance risk, with an AGR score of 89. The stock has a relatively low correlation to the market (beta = 0.54), which may be appealing to risk-averse investors. The stock has lost 5.18% over the last year.

4. National Interstate Corporation (NATL): Property & Casualty Insurance Industry. Market cap of $424.76M. SMA50 at $21.01 vs. SMA200 at $20.95 (current price at $21.68). According to Audit Integrity, the company has Average accounting and governance risk, with an AGR score of 80. Risk-averse investors may appreciate that NATL has a relatively low correlation to the market (beta = 0.68). The stock might be undervalued at current levels, with a PEG ratio at 0.94, and P/FCF ratio at 7.16. The stock has gained 1.72% over the last year.

5. Sapient Corp. (SAPE): Business Software & Services Industry. Market cap of $1.94B. SMA50 at $12.03 vs. SMA200 at $12.01 (current price at $14.29). According to Audit Integrity, the company has Average accounting and governance risk, with an AGR score of 77. The stock is exhibiting strong upside momentum--currently trading 10.6% above its SMA20, 18.76% above its SMA50, and 18.99% above its SMA200. The stock has had a good month, gaining 13.01%.

6. Spartan Stores Inc. (SPTN): Food Wholesale Industry. Market cap of $359.98M. SMA50 at $15.16 vs. SMA200 at $15.15 (current price at $16.13). According to Audit Integrity, the company has Average accounting and governance risk, with an AGR score of 75. SPTN has a relatively low correlation to the market (beta = 0.42), which may be appealing to risk-averse investors. The stock is a short squeeze candidate, with a short float at 6.15% (equivalent to 16.51 days of average volume). The stock has lost 4.1% over the last year.

7. Lumber Liquidators Holdings, Inc. (LL): Home Improvement Stores Industry. Market cap of $704.35M. SMA50 at $24.52 vs. SMA200 at $24.29 (current price at $25.65). According to Audit Integrity, the company has Average accounting and governance risk, with an AGR score of 72. The stock is a short squeeze candidate, with a short float at 25.72% (equivalent to 14.92 days of average volume). The stock has had a good month, gaining 13.93%.

AGR score sourced from Audit Integrity, all other data sourced from Finviz. Sourced on May 17th.



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


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