AOL Inc.: Today's Most Compelling Stock Buy

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SoTM Bull's Eye Report - Today's Most Compelling Buy
Tuesday, April 23, 2013

At StateoftheMarkets.com, we strive to "own the best and ignore the rest" in our equity portfolios. Toward this end, each day we search our database for a "top stock" (a top rated company in terms of earnings strength as well as company and industry performance) that presents a strong technical "set up" and a good entry point.

In short, when our equity team is looking to add a stock to one of our portfolios, the "bull's eye" stock shown below is generally their first choice.



Company


Symbol


Industry

Stock
Rating

YTD
% Gain
S.T.
Stop
Loss
AOL Inc AOL Internet Software & Services 6.1 +24.53% $36.42

Why We Like The Stock:

AOL Inc (AOL) is our most compelling buy today due to the fact that it is a top rated stock (in terms of earnings strength and company/industry performance) presenting a favorable short-term trading opportunity. AOL has been trending higher since October of 2012, pausing towards the end of the year to consolidate around $30 before continuing its march higher in early February. While it hasn't had the upward thrust of some of its competitors like CoStar Group (CSGP) or ValueClick Inc (VCLK), AOL is still a positive technical setup.

 

Currently, the stock is sitting comfortably on its 50-day moving average at $38.15. There is resistance overhead around $40, which AOL failed to break out of in mid-February, late-March, and again in the second week of April. While this isn't great for its long-term prospects, a $40 target for a short term trade is still +4.85% from current prices, which is not too shabby a gain. With some support here, and a nice cushion on the 50-day moving average, AOL looks poised to make a run back to $40 very soon. So, at current prices, we would be buyers of AOL for a short term trade with an immediate +4.85% upside.

We Would Be Buyers:

At the current price (~$38.15).

Looking to trade the Bull's Eye stock picks? Click here to download our free Special Report, "How We Identify Our “Bull’s Eye” Picks & How You Can Profit Trading Them"
Company Profile:

AOL Inc. (AOL) is a global Web services company with a range of brands and offerings and a global audience. The Company's business spans online content, products and services, which it offers to consumers, publishers and advertisers. Its business operations are focused on AOL Properties and Third Party Network. AOL Properties include its owned and operated content, products and services in the Content, Local, Paid Services and Consumer Applications strategy areas in addition to its AOL Ventures offerings. AOL Properties also include co-branded Websites owned by third parties. It generates advertising revenues from AOL Properties through the sale of display advertising and search and contextual advertising. It offers a range of display advertising, including text and banner advertising, mobile, video and rich media advertising, sponsorship of content offerings, and local and classified advertising.

Stock Rating:

The Stock Rating indicates the combined score of our proprietary Earning Strength and Company Performance models. The rating scale is 0 - 10 with 10 being the highest.

Disclosure:

At the time of publication the editor and affiliated companies own the following positions: None

Note: Positions may be bought or sold while this publication is in circulation without notice.

  AOL Inc - Last 3 Months

  AOL Inc - Last 12 Months

  AOL Inc - Last 5 Years

 

 

The analysis and information in this report and on our website is for informational purposes only. No part of the material presented in this report or on our websites is intended as an investment recommendation or investment advice. Neither the information nor any opinion expressed nor any Portfolio constitutes a solicitation to purchase or sell securities or any investment program. The opinions and forecasts expressed are those of the editors of StateoftheMarkets.com and may not actually come to pass. The opinions and viewpoints regarding the future of the markets should not be construed as recommendations of any specific security nor specific investment advice. Stocks should always consult an investment professional before making any investment.

Any investment decisions must in all cases be made by the reader or by his or her investment adviser. Do NOT ever purchase any security without doing sufficient research. There is no guarantee that the investment objectives outlined will actually come to pass. All opinions expressed herein are subject to change without notice. Neither the editor, employees, nor any of their affiliates shall have any liability for any loss sustained by anyone who has relied on the information provided.

The analysis provided is based on both technical and fundamental research and is provided 'as is' without warranty of any kind, either expressed or implied. Although the information contained is derived from sources which are believed to be reliable, they cannot be guaranteed.

The information contained in our websites and StateoftheMarkets.com publications is provided by Ridge Publishing Co. Inc. (Ridge). One of the principals of Ridge, Mr. David Moenning, is also President and majority shareholder of Heritage Capital Management, Inc. (HCM) a Chicago-based money management firm. HCM is registered as an investment adviser. HCM also serves as a sub-advisor to other investment advisory firms. Ridge is a publisher and has not registered as an investment adviser. Neither HCM nor Ridge is registered as a broker-dealer.

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Investments in equities carry an inherent element of risk including the potential for significant loss of principal. Past performance is not an indication of future results.



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 , US Markets

Referenced Stocks: AOL , CSGP , VCLK

David Moenning


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