Momentum Ideas: Top 7 Rallies to Keep on Your Radar

By
A A A

(Written by Rebecca Lipman. List compiled by Eben Esterhuizen, CFA. EPS data sourced from Yahoo! Finance.)

The US Commerce Department announced GDP increased at an annual rate of 2.5% in the third quarter of 2011 according to the “advance” estimate released by the Bureau of Economic Analysis. In the second quarter, real GDP increased 1.3 percent. However the data “is based on source data that are incomplete or subject to further revision by the source agency.” (via Bloomberg)

Among several key statistics from the Commerce Department release:

The price index for gross domestic purchases, which measures prices paid by U.S. residents, increased 2.0 percent in the third quarter, compared with an increase of 3.3 percent in the second. Excluding food and energy prices, the price index for gross domestic purchases increased 1.8 percent in the third quarter, compared with an increase of 2.7 percent in the second.

Real personal consumption expenditures increased 2.4 percent in the third quarter, compared with an increase of 0.7 percent in the second. Durable goods increased 4.1 percent, in contrast to a decrease of 5.3 percent. Nondurable goods increased 0.2 percent, the same increase as in the second. Services increased 3.0 percent, compared with an increase of 1.9 percent.

Real personal consumption expenditures increased 2.4 percent in the third quarter, compared with an increase of 0.7 percent in the second. Durable goods increased 4.1 percent, in contrast to a decrease of 5.3 percent. Nondurable goods increased 0.2 percent, the same increase as in the second. Services increased 3.0 percent, compared with an increase of 1.9 percent.

Real exports of goods and services increased 4.0 percent in the third quarter, compared with an increase of 3.6 percent in the second. Real imports of goods and services increased 1.9 percent, compared with an increase of 1.4 percent.

Real gross domestic purchases — purchases by U.S. residents of goods and services wherever produced — increased 2.2 percent in the third quarter, compared with an increase of 1.0 percent in the second.

All in all the numbers are up, showing an improvement in most areas of the economy. This is good news for consumers and businesses who can see it as a signal we are headed towards, and not away from, an economic recovery.

Hedge funds are seeing several bullish elements coming together – do they have the power to push stocks higher? And will institutional investors be able to use this data to their advantage in the fourth quarter to make up for third quarter losses?

In light of this data we wanted to find stocks that look set to extend their rallies until the end of the year.

For ideas, we started with a universe of about 200 stocks in rally mode–trading above their 20-day, 50-day and 200-day moving averages.

From this list we collected data on analyst earnings estimates and identified the names that have seen an increase in analyst projected profits over the next year.

Wall Street analysts think these names are ready to extend their recent gains–do you agree?

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 annual returns for all stocks mentioned

List sorted by distance from the 200-day moving average.

1. Alexion Pharmaceuticals, Inc. (ALXN): Engages in the discovery, development, and commercialization of biologic therapeutic products in the United States, Europe, Latin America, Japan, and the Asia Pacific. The stock is currently 9.29% above its 50-day moving average, and 31.12% above its 200-day moving average. The EPS estimate for the company's current year increased from 1.16 to 1.29 over the last 30 days, an increase of 11.21%. This increase came during a time when the stock price changed by -0.21% (from 66.99 to 66.85 over the last 30 days).

2. Ulta Salon, Cosmetics & Fragrance, Inc. (ULTA): Provides prestige, mass, and salon products; and salon services in the United States. The stock is currently 7.16% above its 50-day moving average, and 25.45% above its 200-day moving average. The EPS estimate for the company's current year increased from 1.73 to 1.74 over the last 30 days, an increase of 0.58%. This increase came during a time when the stock price changed by -3.46% (from 70.02 to 67.6 over the last 30 days).

3. Cubist Pharmaceuticals Inc. (CBST): Operates as a biopharmaceutical company focused on the research, development, and commercialization of pharmaceutical products that address unmet medical needs in the acute care environment. The stock is currently 10.82% above its 50-day moving average, and 23.92% above its 200-day moving average. The EPS estimate for the company's current year increased from 0.71 to 0.77 over the last 30 days, an increase of 8.45%. This increase came during a time when the stock price changed by 4.55% (from 36.93 to 38.61 over the last 30 days).

4. PNM Resources, Inc. (PNM): Operates in energy and energy-related businesses in the United States. The stock is currently 17.91% above its 50-day moving average, and 23.37% above its 200-day moving average. The EPS estimate for the company's current year increased from 0.88 to 1.01 over the last 30 days, an increase of 14.77%. This increase came during a time when the stock price changed by 7.31% (from 16.7 to 17.92 over the last 30 days).

5. Whole Foods Market, Inc. (WFM): Engages in the ownership and operation of natural and organic food supermarkets. The stock is currently 11.74% above its 50-day moving average, and 20.59% above its 200-day moving average. The EPS estimate for the company's current year increased from 1.92 to 1.93 over the last 30 days, an increase of 0.52%. This increase came during a time when the stock price changed by 0.16% (from 70.94 to 71.05 over the last 30 days).

6. Royal Gold, Inc. (RGLD): Operates precious metals royalties. The stock is currently 0.28% above its 50-day moving average, and 19.80% above its 200-day moving average. The EPS estimate for the company's current year increased from 2.03 to 2.17 over the last 30 days, an increase of 6.9%. This increase came during a time when the stock price changed by 0.72% (from 68.99 to 69.49 over the last 30 days).

7. Bebe Stores, Inc. (BEBE): Engages in the design, development, and production of women's apparel and accessories. The stock is currently 11.75% above its 50-day moving average, and 18.87% above its 200-day moving average. The EPS estimate for the company's current year increased from 0.18 to 0.19 over the last 30 days, an increase of 5.56%. This increase came during a time when the stock price changed by 1.26% (from 7.13 to 7.22 over the last 30 days). 



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


Kapitall

Kapitall

More from Kapitall:

Related Videos

Tiny Homes With Big Appeal
Tiny Homes With Big Appeal          

Stocks

Referenced

Most Active by Volume

270,887,127
    $93.89 unch
225,243,115
  • $40.93 ▼ 2.74%
135,900,109
  • $47.52 ▲ 1.80%
89,467,924
  • $5.35 ▼ 1.11%
85,105,358
  • $16.95 ▼ 0.53%
80,748,539
  • $39.80 ▼ 4.21%
68,491,586
  • $3.57 ▼ 1.79%
62,097,356
  • $100.96 ▼ 0.82%
As of 9/19/2014, 04:15 PM

Find a Credit Card

Select a credit card product by:
Select an offer:
Search
Data Provided by BankRate.com