Five stocks getting high stock scores

 

Over the last couple of weeks we have been paying close attention to a new stock scoring system put in place by stock and options adviser InvestorsObserver.

InvestorsObserver has a new Stock Score Report set up that ranks stocks based on a variety of fundamental and technical data points.

Most investors, myself included, tend to fall into one of two camps. Investors tend to either trade and invest based on a stock’s technical trends, or on the underlying fundamentals of a company. Both are acceptable approaches, but most traders tend to rely on one or the other.

Personally, I prefer to take the technical approach. My personal belief is that you can better predict a stock’s future potential based on real-time technical trends versus lagging fundamental data. That is my personal opinion, but I also understand there is a lot of merit to understanding a company’s fundamentals, and basing long-term investments on that data.

The fact thatInvestorsObserver is combining both technical and fundamental data in its stock rankings combines the best of both worlds, and is a good approach to take. It allows investors like myself, who rely on technical analysis, to quick see how the fundamentals rank versus a stock’s peers.

The combination of a stock’s technical and fundamental scores yields a stock’s overall ranking, so obviously the higher the overall ranking, the better the stock scores on both a technical and fundamental view.

Let’s take a closer look at five stocks that have high rankings, and see how they are performing. As always, do you own research, but a high ranking on the Stock Score Report suggests that each of these stocks are worth a closer look.

Micron Technology

One of the strongest stocks over the last year has been chip maker Micron Technology (MU). The stock has been on a tear as chip prices have improved, and shares are up 87.5% on the year. Chip makers are currently hot as a shortage of supply has propped up prices on DRAM and NAND chips, and that is expected to continue until at least the end of the year. MU has strong technical scores, and solid underlying fundamentals, which results in an overall ranking of 94 from InvestorsObserver’s Stock Score Report. Despite the stock rising 87% on the year, it has a reasonable valuation, with a P/E of 18.1, and earnings forecast to rise 53.4% during the current year. The stock is now trading at $41.34, and analysts have set an average price target of $49.07, which suggests shares are undervalued by as much as 18.6%. MU will next report earnings on December 26.

Click here to see a full copy of the report.

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Chart courtesy of www.stockcharts.com

Huntsman Corp.

Huntsman Corp. (HUN) manufactures specialty chemicals that are used in a variety of industries including textiles, construction and personal goods. Construction and personal goods stocks have all shown strength over the last year as the overall economic landscape has continued to improve . The stock has appreciated 52% on the year, and shares are currently trading just shy of their record high. Analysts forecast earnings will grow by 48.4% during the current year, and the stock trades with a P/E of 16.4, so there is definitely some good value in the stock despite its strong year-to-date gains. HUN trades at $28.96, and analysts have a $33.17 average price target on the stock. The stock’s recent strength, in tandem with a strong set of underlying fundamentals yields an overall ranking of 92 from InvestorsObserver’s Stock Score Report.

Click here to see a full copy of the report.

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Chart courtesy of www.stockcharts.com

MGIC Investment Corp.

The overall finance sector has been strong since President Trump’s unexpected victory last year. Rising interest rates and Trump’s pledge to ease restrictions put in place during the financial sector have propped up the sector, and MGIC Investment Corp. (MTG) has soared. The stock has gained 33% during the year, and shares are currently trading just shy of their 52-week high. MTG currently has a P/E of just 13.9, and analysts expect earnings growth of 32.6% during the current year. Over the last five years, the company has grown earnings on average 52.6% per year. The stock gets an overall ranking of 91 from InvestorsObserver’s Stock Score Report, and the company will next report earnings on October 18.

Click here to see a full copy of the report.
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Chart courtesy of www.stockcharts.com

51job, Inc.

China based staffing and outsourcing company 51job (JOBS) has been a solid performer over the last year. A big reason for the stock’s recent strength is tied to robust earnings growth. The company is forecast to grow earnings by 47.6% during the current year, and an additional 19.4% in 2018. The stock has a high valuation, with a P/E of 46, but the strong growth estimates support the current valuation and it should not put a ceiling on the stock at this time. The company’s next earnings report is scheduled for November 9. JOBS gets an overall ranking of 90 from InvestorsObserver’s Stock Score Report, with high rankings for both technical and fundamental analysis. JOBS has risen 88% during the year.

Click here to see a full copy of the report.

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Chart courtesy of www.stockcharts.com

CSX Corp.

Railroad giant CSX Corp. (CSX) has been stuck in a sideways pattern for the better part of the year, but strong gains at the start of the year has the stock up 54% year to date. Improvements in the overall economy are good for transportation stocks, and CSX has enjoyed solid earnings growth, with a consistent record of in-line or better than expected quarterly reports, the last of which occurred on October 17. CSX gets an overall ranking of 86 from InvestorsObserver’s Stock Score Report. The stock is trading at $54.18, and analysts have an average price target of $57.50. With a P/E of 28.3, and analysts expect earnings to rise 22.1% during the current year, and an additional 22.2% next year, so the stock could easily rise to its average price target barring any major earnings miss. The company will next report earnings in mid-January.

Click here to see a full copy of the report.

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Chart courtesy of www.stockcharts.com

Symbols: CSX HUN JOBS MTG MU
Michael Fowlkes

Michael Fowlkes

Michael Fowlkes is a financial writer who has been with the Fresh Brewed Media family since 2004. Over the course of his tenure with Fresh Brewed Media, he has worn many hats, including portfolio manager, options analyst, and writer. Michael received his undergraduate degree from Virginia Tech in Accounting and got his start in finance working as a stock trader for six years at Chase Investment Counsel in Charlottesville, Va.

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