Four companies are showing accelerating profit growth, a prerequisite for further stock-price gains. Yet all have risen out of buying range, leaving investors with no choice but to wait for new bases to form or for a pullback to a major support line.
AMN Healthcare Services (NYSE:AHS) is showing unusual strength. Its earnings growth has picked up for three straight quarters, and it's the only one of the four that's expected to report further acceleration in the current quarter. Sales growth is also strong and accelerating.
The provider of medical staff to health care facilities is extended past a 32.63 flat-base entry cleared Aug. 5 on strong Q2 results.
AMN, the leader in the 22-stock Commercial Services-Staffing industry group, has a best-possible 99 Relative Price Strength Rating, putting it in the top 1% of all stocks.
Stamps.com (NASDAQ:STMP), which offers postal services online, has the longest streak of accelerating profit growth — five quarters. Sales growth has also picked up over that span.
The stock gapped up and retook a 75.30 buy point of a cup-shaped base Aug. 7 after the company announced Q2 profit that jumped 76%, much better than expected.
Shoe maker Skechers (NYSE:SKX) is out of buying range following its second pullback to the 10-week moving average. Investors can buy a small number of shares on a stock's first two rebounds off a key support level following its breakout from a base. But buying after that can be risky.
Skechers, a leader in the highly rated Apparel-Shoes & Related Manufacturing industry, late last month posted a 128% jump in profit for Q2, up from prior gains of 71% and 80%.
Homebuilder D.R. Horton (NYSE:DHI) also showed accelerating earnings growth in the latest quarter, with profit jumping 88% following a 5% increase in the preceding period.
As the description below its accompanying mini chart shows, the stock is extended beyond a 28.80 buy point.
BY SCOTT STODDARD,
Source: http://news.investors.com/investing-stock-spotlight/081815-767080-4-top-stocks-show-accelerating-profit-growth.htm#ixzz3jDGgDtrv
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