Stock Score Report Weekly for June 21

This week’s weekly Stock Score Report features some familiar names. Through the year, we have been keeping track of the stocks at the top of the new screening tool on InvestorsObserver, and we have found some high-quality names appear at the top of the list.

We were first attracted to the new screening tool because of its approach to combining both technical and fundamental data when ranking stocks in the overall universe. Combining both types of data when creating an overall ranking highlights those stocks that have both showed recent market strength, and also possess the type of underlying fundamentals that are needed to keep business moving the right direction and pushing the stock higher.

This week’s list of stocks is a nicely diversified group of stocks that we have seen in the top of the rankings previously, and each continue to look attractive at the current time.

As always, do your own research, but according to the Stock Score Report, these stocks look like strong buys at this time.

Callaway Golf Company

Callaway Golf Company (ELY) has been one of the stronger stocks over the last 12 months, and shares have gained 49% in 2018 alone. Over the last five years, the company has managed to grow earnings by just 6% per year, but growth is accelerating, with analysts expecting profits will rise 54.7% during the current year, and by 30.9% per annum over the next five years. The company has posted better than expected sales and earnings each of the last five quarters and will next report on July 26. Analysts expect earnings to rise to 47 cents from 34 cents during the same period last year. The stock gets an overall ranking of 91 from InvestorsObserver’s Stock Score Report, with near perfect technical scores and a very strong fundamental ranking. ELY is currently trading at $20.50 with an average price target of $20.67.

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Chart courtesy of www.stockcharts.com

Conn’s Inc.

Conn’s (CONN) is a specialty retailer selling a variety of household goods such as electronics, appliances and furniture. Strength in the underlying housing market has helped boost market optimism in the company, which is expected to grow earnings by 123% during the current year, and by 23.0% per annum over the next five years. The stock has moved steadily higher over the last year and is currently sitting just shy of its 52-week high. The company’s most recent quarterly report came on June 7, with profits and sales well above analysts’ estimates. The strong quarterly report drove the stock sharply higher, and while the trailing P/E is high at 53.8, it has a much more attractive forward P/E of 12.3, which supports the stock moving higher as long the company is able to hit its future estimates. CONN stock currently gets an overall ranking of 91 from InvestorsObserver’s Stock Score Report. CONN trades at $35.60 and analysts have an average price target of $39.75 on the stock.

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Chart courtesy of www.stockcharts.com

Facebook

Social media leader Facebook (FB) encountered a brief sell off earlier in the year following the company’s data scandal surrounding the 2016 presidential election in which up to 87 million user accounts had their personal data improperly used. The data scandal hit the stock, but the market quickly returned bullish as it realized that advertisers were not being deterred by the scandal. Facebook’s most recent quarterly report showed ongoing strength and growth, and that is what Wall Street is focused on, and the reason FB stock is currently trading just pennies below its all-time high. With earnings expected to rise 26.2% per annum over the next five years, and a forward P/E of 22, there is plenty of reason to expect FB shares to trend higher. The stock gets an overall ranking of 96 from InvestorsObserver’s Stock Score Report. FB trades at $201.55 with an average price target of $216.81.

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Chart courtesy of www.stockcharts.com

 

E*Trade Financial

Online broker E*Trade Financial (ETFC) has been among the top ranked stocks for months, and with interest rates on the rise, the outlook remains bright for the company. E*Trade is able to invest its client’s monies in fixed income assets before needed for trading, and as such the company generates far more profits from interest income than it does from trading commissions and fees. With rates on the rise, E*Trade’s income should continue to rise, and analysts forecast average annual earnings growth of 25.8% a year over the next five years. Over the last five years the company has managed to grow earnings by 35.3% per annum, which has helped drive shares steadily higher over the same time period. ETFC remains near the top of the rankings with an overall ranking of 91 from InvestorsObserver’s Stock Score Report. The stock is currently trading at $65.36 and analysts have an average price target of $69.00.

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Chart courtesy of www.stockcharts.com

Weight Watchers

Weight Watchers (WTW) gained a lot of attention at the start of the year on rumors that Oprah Winfrey could possibly run for president in the next election. Winfrey is a board member and spokesperson for the company, so the rumors of her possible presidential run drove the stock sharply higher. Ms. Winfrey has since denied the rumors, but the stock has continued to build on its gains. The recent gains come as analysts forecast 39.7% annual earnings growth over the next five years. The stock gets near perfect technical scores, and with a solid 86 fundamental ranking it remains near the top of the rankings. WTW gets an overall ranking of 95 from InvestorsObserver’s Stock Score Report. The stock is currently trading at $103.75 with an average price target of $107.20.

Click here to see a full copy of the report.

Chart courtesy of www.stockcharts.com