6 Fresh Financial Stocks From Credit Suisse With Bullish Charts

Credit Suisse has compiled a list of 'lowly owned' financial stocks that it favors. The charts say buy on six of them.

As part of its "Fresh Ideas for Small, Mid & Large Cap Investors" report, Credit Suisse has compiled a list of "lowly owned" stocks with market caps of over $5 billion that it considers best in class and/or rates outperform.

Stocks included on the Swiss firm's list have been "lowly owned -- but not completely un-owned -- by actively managed, long only, U.S. focused funds," the July 14 report said. The stocks either fall under Credit Suisse's favorable HOLT investment style of high-quality stocks with strong momentum and cheap valuation or are rated outperform by Credit Suisse.

From the firm's list of 15 financial services stocks, Kamich culled the names down to just six that had the best combination of a promising chart picture and bullish technical indicators. Making the cut were Raymond James Financial (RJF) ,Arthur J Gallagher (AJG) , Boston Properties (BXP) , Federal Realty Investment Trust (FRT) , General Growth Properties (GGP)  and Prologis (PLD) .

So should you buy these stocks? Check out what Kamich found.

READ MORE: 5 Big Medtech Stocks Investors Love Right Now -- but Should You Buy Them?

Raymond James Financial

Raymond James Financial is owned by 11 large-cap funds and 33 mid-cap funds as of July 12, according to Credit Suisse.

Bruce Kamich's Technical Analysis

In this daily chart of Raymond James, we do not see much of an uptrend the past 12 months, but we do see a strong base pattern that can support an advance. Prices are above the 50-day and 200-day moving averages.

The daily on-balance-volume, or OBV, line has been moving upward from the February low. A rising OBV line tells us that buyers are being more aggressive with the volume of shares traded higher on days when RJF has closed higher.

In the lower panel is the 12-day momentum study, and there are no bearish divergences currently to raise a warning flag to a long position in RJF.

Arthur J Gallagher

Arthur J Gallagher is owned by 24 large-cap funds and 10 mid-cap funds as of July 12, according to Credit Suisse.

Bruce Kamich's Technical Analysis

In this chart of Arthur J Gallagher, we can clearly see a positive trend this year. AJG is above the rising 50-day moving average and above the rising 200-day. In April we can see a bullish golden cross as the 50-day average crossed above the 200-day. The OBV line confirms the rally as it rises strongly from the January low.

Like the RJF chart, we currently do not have to worry about a bearish divergence between the price action and the price momentum.

Boston Properties

Boston Properties is owned by 12 large-cap funds and 23 mid-cap funds as of July 12, according to Credit Suisse.

Bruce Kamich's Technical Analysis

SMALL INVESTMENT, BIG POTENTIAL. TheStreet's Stocks Under $10 has identified a handful of stocks with serious upside potential. See them FREE for 14-days.

In this chart of BXP, we can see twin lows in September and February. Prices recently broke out to new highs over the May peak. Prices are above the 50-day and 200-day moving averages, and both averages have a positive slope. The OBV line has been rising the past 12 months suggesting that accumulation (buying) has been underway for months. Momentum has not slowed on the advance.

Federal Realty Investment Trust

Federal Realty Investment Trust is owned by seven large-cap funds and 10 mid-cap funds as of July 12, according to Credit Suisse.

Bruce Kamich's Technical Analysis

In this chart of FRT, we see a stock rally that is "hitting on all cylinders." FRT made its low in August and September and has moved steadily higher. Prices are above the rising 50-day and the rising 200-day averages. The OBV line has been positive the entire time, confirming the advance and telling us that buyers are and have been more aggressive.

General Growth Properties

General Growth Properties is owned by eight large-cap funds and 13 mid-cap funds as of July 12, according to Credit Suisse.

Bruce Kamich's Technical Analysis

In this daily chart of GGP, we see a multi-month sideways trading range for GGP bounded roughly by $24 and $30. Prices broke out from this consolidation this month. Prices are above the rising 50-day and the rising 200-day averages. The OBV line has been positive the entire time, and there is no slowing in the momentum.

Prologis

Federal Realty Investment Trust is owned by 23 large-cap funds and 11 mid-cap funds as of July 12, according to Credit Suisse.

Bruce Kamich's Technical Analysis

Prologis made a low in February but did not break out of its trading range until late March. The 50-day and 200-day moving averages are trending higher. The OBV line turned up in February along with the price action and momentum is confirming the advance.

By Laurie Kulikowski
Source: https://www.thestreet.com/slideshow/13646130/1/6-fresh-financial-stocks-from-credit-suisse-with-bullish-charts.html