Showing posts with label stock picks. Show all posts

Wednesday, November 29, 2017

AI and Robotics Gain Ground: 3 Pure-Play Stocks in Focus

About a month ago the Kingdom of Saudi Arabia granted citizenship to the humanoid robot Sophia, developed by Hong Kong-based Hanson Robotics. If this was not intriguing enough, in another groundbreaking move, New Zealand-based entrepreneur, Nick Gerritsen, has recently developed the world’s first artificial intelligence (AI) politician, Sam, who can address local issues related to education, housing and immigration. So, it may not be too wrong, at this point of time, to foresee a future where bots live cheek by jowl with humans!

The incredible developments in the AI space hollers for investors’ focus on companies that are principally engaged in this groundbreaking field.

Moreover, according to a survey of 260 large organizations conducted by Vanson Bourne, a leading technology industry market research firm, 80% are investing in AI and 30% are planning to increase their investments in this space over the next three years.

Proliferation of AI & Bots

Car manufacturer Tesla (TSLA - Free Report) is in pursuit of a driverless future and has already dished out successful electric variants such as Model S, Model X and revolutionary Model 3. Northrop Grumman (NOC- Free Report) is a pioneer in training drones to land — and avoid landing — on aircraft carriers.

Accuray (ARAY - Free Report) develops and markets the CyberKnife Robotic Radiosurgery System, which extends the benefits of radiosurgery to include extracranial tumors in the spine, lung, prostate, liver and pancreas. Online retail giant Amazon.com (AMZN - Free Report) has adopted robotic technology to its advantage in its fulfillment centers.

Given the prominence that bots are gaining, let’s take a look at some of their creators. These companies bode well for investors with foresight and perseverance.

Stocks in Focus

Back in 1990, three MIT graduates came together to form the first company that comes to our mind when we mention robots. This is Massachusetts-based iRobot (IRBT - Free Report) , which designs robots to perform dull, dirty or dangerous missions in style.

Its proprietary iRobot AWARE Robot Intelligence Systems technology implements advanced concepts in navigation, mobility, manipulation and artificial intelligence that form the lifeblood of its behavior-based family of consumer and military robots. Naturally, this is the stock if you are futuristic and have faith in technological evolution. Supporting our view is this Zacks Rank #3 (Hold) company’s impressive VGM Score of B.

We are also keyed up about FANUC Corp. (FANUY - Free Report) , the Japanese manufacturer of factory automation and robots for pretty much anything and everything. Its claim to fame is its commitment toward minimizing factory downtime. FANUC products have carved a niche not just on its home turf, but also across the world with the United States, Europe and other Asian countries being its markets.

With an encouraging Zacks Rank #2 (Buy), we don’t see why you should not consider the stock for your portfolio. You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.

Milwaukee, WI-based Rockwell Automation (ROK - Free Report) is a leading provider of industrial automation power, control and information solutions for manufacturing. This Zacks Rank #3 company offers complete automation solutions to top brands.

Recently, Rockwell Automation rejected a takeover bid by Emerson Electric fearing disruption to its growth and competitiveness in this evolving market. Obviously, Rockwell Automation has huge confidence in its strategic direction and ability to continue delivering superior levels of growth and value creation. It is witnessing solid thrust in its business as indicated by its Momentum Score of A.

Fast Forward

Remember the pre-mobile era when moving around with a phone was beyond imagination, let alone one that can double up as a camera? It may well be the same with automation and bots.

Agreed, the travails of robotics are an open secret. From astronomical investments to painstaking research to technical snafu, companies with high autonomous aims are giving their all to stand the test of time. As an investor, AI and robotics give you something to look forward to.

Source: https://goo.gl/EyXPxA

Thursday, August 10, 2017

5 Small Cap Value Stocks to Buy Now

UCTT SRI MHO TSQ ZAGG

Every week, Tracey Ryniec, the editor of Zacks Value Investor portfolio service, shares some of her top value investing tips and stock picks.

2017 is the year of the large cap growth stocks. That has left value investors in the wilderness, especially small cap value investors.

Small cap value has, historically, outperformed growth, but not this year.

Small Cap Value Down in the Dumps

Year-to-date, the iShares Small Cap Value ETF (IWN) is down about 1%. But the small cap growth ETF (IWO) is up 9.3% during that same time. That’s a huge 10% swing.

But that means that small cap value stocks are actually on sale. Value investors have an opportunity to add to their positions at attractive valuations.

Tracey ran a screen to find small cap value stocks with P/Es under 15, P/S ratios under 1.0 and a Zacks Rank of #1 (Strong Buy) or #2 (Buy). Despite the narrow parameters, the screen gave her 15 quality stocks to choose from.

What are you waiting for? These small cap stocks have value and several even have dynamic growth.

1. Townsquare Media (TSQ - Free Report) is a media, entertainment and digital marketing company that owns radio stations and websites. It trades with a forward P/E of 9.6.5 Small Cap Value Stocks to Buy Now

2. Ultra Clean Holdings (UCTT- Free Report) develops critical systems for the semiconductor and flat panel industries. Revenue was up 75.8% last quarter. It has a forward P/E of just 12.1.

3. Stoneridge Inc. (SRI - Free Report) makes electronic components for the auto and truck industries including driver information systems, sensors, and tracking devices. It’s cheap, with a forward P/E of 11.5.

4. M/I Homes (MHO - Free Report) is one of the small homebuilders. It saw record revenue, homes delivered and new contracts in the second quarter. The homebuilders are dirt cheap. MHO has a forward P/E of just 8.4.

5. ZAGG Inc. (ZAGG - Free Report) makes screen protection, mobile keyboards and owns Mophie, which is one of the top selling battery cases for mobile phones. Sales are expected to rise 21% this year. It has a P/S ratio of just 0.6.

For investors, small cap stocks can be riskier than large cap stocks, due to their volatility, but the payoff can also be greater. These are just a few names that have solid fundamentals.

By Tracey Ryniec

Source: https://goo.gl/Q9gDFB

Monday, June 12, 2017

Rotate Out of Tech: 5 Top Rated Picks from the Year's Leading Sectors

CC LNTH NTRI BTI TEO

The year’s top performing sector turned headwind for burgeoning equity markets on Friday, as stocks closed mixed. Tech stocks were the worst performers for the day with the Nasdaq closing 1.8% lower. The tech-heavy index also posted its worst weekly performance for the year. All big tech names driving up the markets this year lost in excess of 3% during the trading session.

Most market watchers think that fears about soaring valuations led to the decline of tech stocks on Friday. Not everyone is on the same side, though, with many analysts pointing out that the selloff is likely to subside soon.

However, in case such a trend continues over the next few weeks, should you give up your hard-gotten gains in a hurry? It makes sense to rotate into some of the year’s other leading sectors. Picking such stocks would boost portfolio gains for you in the weeks ahead.

FAAMG Group Felled by Valuation Concerns

On Friday, Goldman Sachs issued a report regarding the top five performing tech majors of the year, which triggered off several questions about the sector’s recent gains. The report raised concerns about the exorbitant valuations and low levels of volatility for this group. It goes to the extent of saying that such stocks have developed a close correlation with such safe haven sectors like utilities and bonds.

The group in question, comprising of Facebook, Amazon, Apple, Microsoft and Alphabet has together added around $600 billion to overall market capitalization this year. Goldman Sachs points out that they account for only 13% of the S&P 500 but have contributed nearly 40% of its performance year to date.

Profitability the Key Difference from Dotcom Era

Of course, another section of market watchers take a completely different stance on tech stocks. They point out that business conditions for the sector remain excellent. Also, investors have been quick to react to poor earnings performance or other stock-specific worries. But Apple’s downgrade on Sunday proves that a near-term storm for tech stocks is still brewing. At this time, it’s best to look at the year’s other sector leaders to shore up your gains.Ultimately, the report reaches a conclusion which could cause some alarm. According to Goldman Sachs, today’s tech majors are better placed in terms of cash balance, valuation and cash flow compared to the leading five tech stocks in the first quarter of 2000. However, the group lags on account of profitability, measured using total assets and gross profits. Only Microsoft made the older list which includes Lucent, Intel, Oracle and Cisco Systems.

Investing in the Year’s Other Winners

Coming in right after the Technology Select Sector SPDR XLK, which is up 15.8% year to date, is the Health Care Sector SPDR XLV which has gained 12.5% up to now. Concerns related to upcoming reforms are brewing for the sector. However, biotech earnings and the solid nature of sector majors have maintained the popularity of the sector.

The Consumer Discretionary Select Sector SPDR XLY comes in next and is up 11% year to date on optimism over economic growth and tax reductions. More surprising is the success of the Utilities Select Sector SPDR ETF XLU, up 10.5% year to date. Possibly, the lure of stable dividends has buoyed this safe haven sector.

Materials have registered strong gains after Nov 8, riding on expectations that a stronger economy would boost demand. This is likely why the Materials Select Sector SPDR XLB is up 9.9% year to date. And to round off the list, consumer staples remain a favorite for risk-averse investors seeking higher yields than those available in the bond market. Consequently, the Consumer Staples Select Sector SPDR XLP is up 9.6% in 2017 till now.

Our Choices

Tech stocks are likely to remain strong performers this year, given the strong demand for the industry’s products. But losses are likely in the weeks ahead given concerns raised over valuation and excessive gains for the sector stocks.

In such a scenario it makes good sense to rotate into other sectors, at least partially, especially into those which also offer strong gains. However, picking winning stocks may be difficult.

This is where our VGM score comes in. Here V stands for Value, G for Growth and M for Momentum and the score is a weighted combination of these three scores. Such a score allows you to eliminate the negative aspects of stocks and select winners. However, it is important to keep in mind that each Style Score will carry a different weight while arriving at a VGM score.

We have narrowed down our search to the following stocks, each of which has a Zacks Rank #1 (Strong Buy) and a good VGM score. You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.

Lantheus Holdings, Inc. (LNTH - Free Report) is involved in developing, manufacturing, selling and distributing diagnostic medical imaging agents and products for diagnosis of cardiovascular and other diseases.

Lantheus Holdings has a VGM Score of B. The company has expected earnings growth of 28.5% for the current year. The forward price-to-earnings ratio (P/E) for the current financial year (F1) is 17.35, lower than the industry average of 17.57. The stock has returned 86.6% year to date, outperforming the Zacks Medical sector, which has gained 9.3% over the same period.

Nutrisystem, Inc. (NTRI - Free Report) is a leading provider of weight management products and services.

Nutrisystem has a VGM Score of B. The company has expected earnings growth of 37.4% for the current year. The stock has returned 32.8% year to date, outperforming the Zacks Consumer Discretionary sector, which has gained 10.9% over the same period.

Telecom Argentina S.A. (TEO - Free Report) is a provider of telecom and related services in Argentina and other countries

Telecom Argentina has a VGM Score of A. The company has expected earnings growth of 10.8% for the current year. It has a P/E (F1) of 16.51x, lower than the industry average of 17.18. The stock has returned 39.9% year to date, outperforming the Zacks Utilities sector, which has gained 6.6% over the same period.

The Chemours Company (CC - Free Report) is a provider of performance chemicals with worldwide operations.

Chemours has a VGM Score of A. The company has expected earnings growth of more than 100% for the current year. Its earnings estimate for the current year has improved by 0.8% over the last 30 days. The stock has returned 81.6% year to date, outperforming the Zacks Basic Materials sector, which has gained 5.9% over the same period.

British American Tobacco p.l.c. (BTI - Free Report) is the holding company of a group of companies which manufacture, market and sell tobacco products.

British American Tobacco has a VGM Score of B. Its earnings estimate for the current year has improved by 2.6% over the last 30 days. The stock has returned 24.5% year to date, outperforming the Zacks Consumer Staples sector, which has gained 10.1% over the same period.

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By Swarup Gupta

Source: https://goo.gl/EFqNQe

Monday, June 5, 2017

Penny Stocks to Watch for June 2017 (CYTR, DELT)

Market volumes contracted in May, with major outflows from U.S. equity funds signaling caution due to rising D.C. political drama that’s delayed implementation of the Trump administration’s proposed business-friendly agenda. Speculation in penny stocks fell while available capital focused on overextended uptrends in big tech and other blue-chip venues. This rotational behavior may continue until low-risk intermediate correction forces profit taking and the execution of more speculative profit strategies.

May's penny stocks to watch pick Sequans Communications SA (SQNS) rallied more than 30% during the month, lifting to a 5-year high while Castle Brands, Inc. (ROX)

added to its strong uptrend, gaining nearly 18%. Junior biotech picks languished in reaction to battle lines drawn across health care reform and its impact on the pharmaceutical industry while small tech plays emerged as low-priced sweet spots, powered by sector rallies to multi-decade and all-time highs.

Utilize aggressive risk management techniques including tight stop losses when trading penny stocks because beaten-down companies on the rebound trail comprise the vast majority, often relying on secondary offerings and sweetheart deals with big investors to pay employees and keep the lights on. These financial dealings can generate dilution that triggers sudden high percentage declines, wiping out weeks of speculative profits. Below are the top penny stocks to watch for June 2017.

Penny Stocks To Keep Watching Ready to trade penny stocks? Check out which online broker offers the best research tools here.

1. Sequans Communications SA (SQNS)

Sequans Communications SA (SQNS)

Image result for Sequans Communications SA

sold off between $19.50 and 66-cents between 2011 and 2015, finally bottoming out in August and bouncing into a well-organized basing pattern that continued into an April breakout to a multiyear high. The opening print of the April 2011 IPO at $9.00 could generate a magnetic target in this emerging uptrend, which has attracted sizable buying interest in the last two months. Price action has now eased into a rising channel pattern, with support at $4.00 set to offer a low-risk trade entry during the next pullback.

2. Southcross Energy Partners L.P. (SXE)

Southcross Energy Partners L.P. (SXE)

Image result for Southcross Energy Partners L.P

came public in November 2012 and posted an all-time high at $26.49 in March 2013. The subsequent decline picked up steam into the first quarter of 2016, dropping the stock to an all-time low at 38-cents. A two-legged recovery wave reached a 17-month high in April 2017, giving way to a symmetrical triangle pattern that’s still under construction. A breakout above $4.74 should ignite a fresh rally leg that might reach $6.50 while a decline through $3.33 will break the bull pattern, exposing the stock to a new downtrend.

3. Castle Brands Inc (ROX)

Castle Brands, Inc. (ROX)

plunged in the 2000s bear market, dropping from its IPO of $9.60 in April 2006 to an all-time low at 1-cent. A slow-motion recovery reached $2.03 in November 2014 and gave way to a steep decline that posted a higher low at 65-cents in December 2016. It’s been all upside since that time, with a February breakaway gap generating a momentum rally that’s now entered a critical test at the 2014 high. A breakout will open the door to a more vigorous uptrend that could reach high single digits while a selloff through $1.70 will signal a bearish reversal.

New Penny Stock To Watch For June

ADD TO WATCHLIST

CYTR

0.70

-14.63%

DELT

2.16

+0.47%

4. ImmunoGen, Inc. (IMGN)

Immunogen IncImmunoGen, Inc. (IMGN)

posted a 12-year high at $20.25 in 2013 and sold off to $5.34 in December 2014. A 2015 recovery wave stalled less than one point below the prior peak, generating a steep decline that continued into an 18-year low at $1.51 in November 2016. Buyers finally took control in 2017, generating a channeled uptick that reversed at 2014 resistance about two weeks ago. This pullback could signal a buying opportunity, with a bounce at or above the unfilled April gap at $3.25 setting the stage for a breakout toward long-term resistance near $8.00.

5. China Commercial Credit, Inc. (CCCR)

China Commercial Credit, Inc. (CCCR)

came public on the U.S. exchanges at $6.50 in August 2013 and went through a series of growing pains that contributed to a steep downtrend. It finally bottomed out at 25-cents in February 2016 and entered an uptrend that stalled at $3.20 in September. A lazy decline off that level posted a higher low in March 2017, ahead of a momentum-fueled advance that’s now testing the 2016 high. A breakout should attract broad buying interest that may support continued upside into a critical test at the IPO opening print.

6. Hovnanian Enterprises, Inc. (HOV)

Homebuilder Hovnanian Enterprises, Inc. (HOV)

topped out in the mid-70s in 2005 and got crushed when the real estate bubble burst, dropping to an all-time low at 52-cents. It bounced to $8.05 in 2010 and tested that resistance level in 2013, generating a reversal and downtrend that posted the second higher low of the decade in January 2016. The subsequent uptick peaked in December, ahead of a rounded correction that’s just yielded a base breakout above $2.50. This bullish price action sets the stage for a breakout attempt at 2-year resistance just above $3.00.

7. Pieris Pharmaceuticals, Inc. (PIRS)

Pieris Pharmaceuticals, Inc. (PIRS)

began life on the OTC market in 2014, stuck in a trading range between $2.00 and $4.25 into a 2015 breakdown that dropped the stock to $1.26 in January 2016. It ground sideways into November, finally testing the first-quarter low, ahead of a January 2017 breakaway gap that’s attracted steady buying interest. The rally gathered additional momentum in early May after the company announced a key partnership with AstraZeneca PLC (AZN)
and is now testing the 2015 high, which also marks the all-time high.

8. Radiant Logistics, Inc. (RLGT)

Radiant Logistics IncRadiant Logistics, Inc. (RLGT)

rallied above its 2006 high at $1.05 in 2010, entering a strong uptrend that posted a series of highs into the June 2015 all-time high print at $8.00. It sold off to $2.94 in the first quarter of 2016 and bounced to $3.80, where aggressive sellers triggered a decline to a 2-year low at $2.45. Committed buyers then emerged, lifting the stock in a series of rally waves that have now reached within $1.50 points of the prior peak. It’s been basing on the 50-day EMA for the last three weeks and could lift into a test of resistance during the summer months.

9. CymaBay Therapeutics, Inc. (CBAY)

CymaBay Therapeutics, Inc. (CBAY

) rallied into a test of the all-time high at $13.78 in February 2015 and entered a steep downtrend that continued into the first quarter of 2016, dropping the junior biotech to an all-time low at 82-cents. It bounced to $3.04 in April, posting a yearly high, ahead of a pullback that continued into November low at $1.15. The stock broke out above the 2016 high in February 2017, entering an uptrend that’s just posted a 2-year high at $4.81. Look for strong buying interest to continue in coming months, lifting price closer to double digits.

10. Zynga, Inc. (ZNGA)

Video game developer Zynga, Inc. (ZNGA)

came public at $11 in December 2011 and entered a strong uptrend that posted an all-time high at $15.91 in March 2012. The subsequent downtrend continued into October 2014 low at $2.20 and eased into a narrow basing pattern that washed out the last supply of sellers when it fell to an all-time low at $1.78 in February 2016. The stock finally completed a base breakout about three weeks ago, entering a healthy uptrend that could reach the 2014 high at $5.89 in coming months while a pullback to $3.00 might offer a low-risk buying opportunity.

The Bottom Line

Low May liquidity had a dampening effect on penny stock speculation, but a handful of low-priced winners have emerged, carving bullish recovery patterns that predict higher prices into the second half of 2017.

By Alan Farley

Source: https://goo.gl/NCKjNv