Investor ratings can be a bit confusing… Confusing because they can be somewhat arbitrary. It’s not that they are fickle, per se. It’s just that different analysts place different weights on factors that could result in a vastly different rating. That said, ratings do have an effect on the markets, and they can give individual investor a sense of overall sentiment or trajectory. #-ad_banner-#I ran investor ratings through one of my favorite market screeners to find the top five U.S. stocks with a market cap higher than $10 billion. I then sorted them by trading ratings, followed by revenue growth,… Read More

Investor ratings can be a bit confusing… Confusing because they can be somewhat arbitrary. It’s not that they are fickle, per se. It’s just that different analysts place different weights on factors that could result in a vastly different rating. That said, ratings do have an effect on the markets, and they can give individual investor a sense of overall sentiment or trajectory. #-ad_banner-#I ran investor ratings through one of my favorite market screeners to find the top five U.S. stocks with a market cap higher than $10 billion. I then sorted them by trading ratings, followed by revenue growth, profitability and valuation. These top five companies beat out famous names like Amazon, Inc. (Nasdaq: AMZN), ranked 8th, Facebook, Inc. (Nasdaq: FB), ranked 18th, Google’s parent company Alphabet, Inc. (Nasdaq: GOOGL), ranked 31st, and China’s Baidu (Nasdaq: BIDU), ranked 32nd. Let’s take a look at them: 5. Raytheon Company (NYSE: RTN) With a five-star investor rating and a five-star trading rating, Raytheon boasts strong profitability. RTN develops and manufactures engineering technology for government and commercial uses, in sectors such as defense, IT and electronics. Analysts rate RTN as a very strong buy, and technical analysis indicates bullishness in both the… Read More

The commodities frenzy in 2007-2008 drove energy and mining stocks up to astronomical heights before the ensuing bear market erased all of those gains. While energy stocks and precious metals miners were able to rally back, miners of industrial metals stalled. The Dow Jones U.S. Industrial Metals & Mining Index still trades more than 65% below its 2008 peak even after nearly doubling from its worst levels this year. In short, industrial miners have been portfolio killers for years, and sentiment is predictably rather dour. However, the short-term condition is much improved and the index is on the verge of… Read More

The commodities frenzy in 2007-2008 drove energy and mining stocks up to astronomical heights before the ensuing bear market erased all of those gains. While energy stocks and precious metals miners were able to rally back, miners of industrial metals stalled. The Dow Jones U.S. Industrial Metals & Mining Index still trades more than 65% below its 2008 peak even after nearly doubling from its worst levels this year. In short, industrial miners have been portfolio killers for years, and sentiment is predictably rather dour. However, the short-term condition is much improved and the index is on the verge of a long-term breakout. One of its larger component stocks, Australia-based Rio Tinto (NYSE: RIO), echoes these improvements and is also on the verge of a major breakout. At first glance, it is easy to see that the stock now trades above its key 50-day and 200-day moving averages, and the 50-day recently crossed above the 200-day in what some might label a “golden cross.” While this signal is really meant to apply to the broader market, it still tells us that the major trend has likely changed to the upside. Read More

Around our research office, we just call them our “Forever” stocks. We’ve talked about them so much over the past few years, the nickname is just easier. Everyone here knows exactly what we’re talking about. Put simply, this is the set of stocks you could buy today and hold for the long haul. With these stocks in your portfolio, you will worry less about things like inflation or deflation… bear markets or recessions… flash-crashes or rising interest rates.  —Sponsored Link— JFK Predecessor’s Chilling Warning Right before JFK took office, General Eisenhower warned him about a… Read More

Around our research office, we just call them our “Forever” stocks. We’ve talked about them so much over the past few years, the nickname is just easier. Everyone here knows exactly what we’re talking about. Put simply, this is the set of stocks you could buy today and hold for the long haul. With these stocks in your portfolio, you will worry less about things like inflation or deflation… bear markets or recessions… flash-crashes or rising interest rates.  —Sponsored Link— JFK Predecessor’s Chilling Warning Right before JFK took office, General Eisenhower warned him about a secretive segment of the U.S. government. Kennedy tried to take them on…and failed. Today, this hidden branch has only grown in power, threatening your wealth and access to your savings. Here’s the whole story… For example…  “Forever” Stock #8 owns the world’s most valuable brand for the fifth consecutive year, according to the latest rankings published by Forbes. In fact, this brand is so iconic, it is worth more than twice as much as the runner-up — Microsoft (Nasdaq: MSFT) — according to Forbes.  “Forever” Stock #3 is nearly two times more profitable than some of… Read More

The current bull run in stocks has lasted longer than any other, save the tech bubble of the 90s.  That in itself shouldn’t be cause for alarm — bull markets don’t die of old age. What should worry investors, however, is the massive disconnect between economic fundamentals and stock valuations.  From weakening retail sales to corporate America heading for its sixth consecutive quarter of declining earnings, the fundamentals of the market conflict with the record highs we’re seeing nearly every day. But missing out on further upside isn’t an option for most investors either. #-ad_banner-#What to do when all the… Read More

The current bull run in stocks has lasted longer than any other, save the tech bubble of the 90s.  That in itself shouldn’t be cause for alarm — bull markets don’t die of old age. What should worry investors, however, is the massive disconnect between economic fundamentals and stock valuations.  From weakening retail sales to corporate America heading for its sixth consecutive quarter of declining earnings, the fundamentals of the market conflict with the record highs we’re seeing nearly every day. But missing out on further upside isn’t an option for most investors either. #-ad_banner-#What to do when all the data screams crash but the market keeps moving higher?  You find stocks that beat the market during a crash.  A Tale Of Two Worlds, Exuberant Markets Versus Dismal Economics Profit expectations have come down for the third quarter, which is likely to mark six consecutive quarters of falling earnings for companies in the S&P 500. The global economy is struggling and the only thing keeping the United States out of recession has been auto sales and housing. Auto sales are weakening and uncertainty around Brexit may be enough to push the United States into a recession over the next… Read More

The search for income takes investors to diverse places, and tobacco stocks have been a favorite for many months. However, all trends eventually come to an end, and that seems to be the case for the rally in Reynolds American (NYSE: RAI). #-ad_banner-# Since its early July peak, the stock is down about 7%. This includes a rather sharp sell-off on July 26 following the cigarette maker’s disappointing second-quarter earnings report. The company missed both revenue and earnings estimates, and the post-earnings sell-off… Read More

The search for income takes investors to diverse places, and tobacco stocks have been a favorite for many months. However, all trends eventually come to an end, and that seems to be the case for the rally in Reynolds American (NYSE: RAI). #-ad_banner-# Since its early July peak, the stock is down about 7%. This includes a rather sharp sell-off on July 26 following the cigarette maker’s disappointing second-quarter earnings report. The company missed both revenue and earnings estimates, and the post-earnings sell-off resulted in a technical breakdown through a rather important trendline. This week, Cowen and Company reaffirmed its “outperform” rating on the stock, saying that weak guidance was already priced in, but the market is saying otherwise.  RAI has been lagging the broader market since February and shows no signs on the charts that this condition will change. There are plenty of other technical warnings in place, including the non-confirmation of the July high by momentum and volume indicators, but let’s focus on the pure and simple trend break.   Reynolds started its long-term bull market in 2009 when… Read More

It’s easy to like Warren Buffett. Despite amassing a nearly $66 billion fortune, he remains folksy and accessible. He’s not perfect — but then again, he’s also rarely wrong.  But one important thing to keep in mind when studying Warren Buffett is understanding that Buffett would not be where he is today without Charlie Munger, his business partner.  Munger may not be as famous as Buffett, but he has been instrumental in not only Berkshire Hathaway’s success — but also Buffett’s evolution as an investor. #-ad_banner-# Warren Buffett came up as a disciple of Ben Graham, the father of “value… Read More

It’s easy to like Warren Buffett. Despite amassing a nearly $66 billion fortune, he remains folksy and accessible. He’s not perfect — but then again, he’s also rarely wrong.  But one important thing to keep in mind when studying Warren Buffett is understanding that Buffett would not be where he is today without Charlie Munger, his business partner.  Munger may not be as famous as Buffett, but he has been instrumental in not only Berkshire Hathaway’s success — but also Buffett’s evolution as an investor. #-ad_banner-# Warren Buffett came up as a disciple of Ben Graham, the father of “value investing”. This can be basically defined as buying stocks trading for dirt-cheap valuations. And it was this approach that led Buffett’s investment partnership to acquire Berkshire Hathaway in 1965. Back then, Berkshire was a failing textile manufacturer. The stock was selling for around $7.50 per share, a major discount from the per-share working capital of $10.25 and book value of $20.20. Buffett also noticed that the company was using the proceeds from closing down some of its plants to repurchase shares.  So Buffett quietly began purchasing shares until Berkshire’s then-CEO issued a tender offer to buy back shares for $11.375. Read More

If you own a smartphone you are probably familiar with automated notifications. From convenient reminders that you’ve used up almost all of your data for the month, to messages asking you to verify an account, to alerts from health apps, these notifications help make everyday life easier.  Not only is this issue’s Project Alpha pick the secret behind these communications services, but it also dominates this niche market despite its small market cap. West Corporation (Nasdaq: WSTC)is a global telecommunications provider with a broad portfolio of product offerings ranging from 9-1-1 call processing to enterprise conferencing services to notification… Read More

If you own a smartphone you are probably familiar with automated notifications. From convenient reminders that you’ve used up almost all of your data for the month, to messages asking you to verify an account, to alerts from health apps, these notifications help make everyday life easier.  Not only is this issue’s Project Alpha pick the secret behind these communications services, but it also dominates this niche market despite its small market cap. West Corporation (Nasdaq: WSTC)is a global telecommunications provider with a broad portfolio of product offerings ranging from 9-1-1 call processing to enterprise conferencing services to notification systems in healthcare facilities.  West operates in five main segments generating sales of more than $2.2 billion, with its conferencing and collaboration services segment contributing to roughly half of the firm’s revenue. As the largest provider of conferencing and collaboration solutions in the world, West managed over 65 billion telephony minutes and facilitated over 167 million conference calls in 2015 for prominent clients such as IBM (NYSE: IBM), Alphabet (Nasdaq: GOOGL), Microsoft (Nasdaq: MSFT), and Cisco (Nasdaq: CSCO).  In 2015, the unified communications segment generated $1.5 billion in revenues and contributed to 82.9% of the firm’s operating income. Read More

Growing up in Philly, I developed an appreciation for the “little guy.” My father, uncle and grandmother were all small business owners, and some of my fondest memories were the times I spent working with them and the people I met along the way. I vividly remember our neighborhoods lined with small row homes, many with businesses on the bottom floor where you could get anything from a good cheesesteak to a loan from one of the many regional banks.  Back in the day, small businesses were the soul of the city (and America), and banks often supplied the capital… Read More

Growing up in Philly, I developed an appreciation for the “little guy.” My father, uncle and grandmother were all small business owners, and some of my fondest memories were the times I spent working with them and the people I met along the way. I vividly remember our neighborhoods lined with small row homes, many with businesses on the bottom floor where you could get anything from a good cheesesteak to a loan from one of the many regional banks.  Back in the day, small businesses were the soul of the city (and America), and banks often supplied the capital to keep them going. At the time, the business landscape wasn’t dominated by gigantic banks, big-box stores or mega chains. It was a menagerie of boutique business owners from every background, all with the same vision: to make their version of the American dream come true. Small business is still at the core of our economy and accounts for 54% of all sales in the United States. But one key component of small business commerce in America is dying. —Sponsored Link— Revealed: The Investing Secret That Turned Amateur Investors Into Millionaires How did a group of amateur investors crush… Read More

About two months ago, I showed you this chart: It showed front-month oil future rebounding in a solid uptrend, but heading for a ceiling. I warned that oil producers could see a short-term pop, but that it would be temporary. I also said that higher oil prices would positively affect quarterly earnings reports. I was mostly right… Take a look. This first snapshot is of Exxon Mobil’s (NYSE: XOM) quarterly income: This second snapshot is of ConocoPhillips’ (NYSE: COP) income: Both showed substantial growth in gross profits quarter over quarter. Year over year, XOM’s… Read More

About two months ago, I showed you this chart: It showed front-month oil future rebounding in a solid uptrend, but heading for a ceiling. I warned that oil producers could see a short-term pop, but that it would be temporary. I also said that higher oil prices would positively affect quarterly earnings reports. I was mostly right… Take a look. This first snapshot is of Exxon Mobil’s (NYSE: XOM) quarterly income: This second snapshot is of ConocoPhillips’ (NYSE: COP) income: Both showed substantial growth in gross profits quarter over quarter. Year over year, XOM’s revenues grew 18.45% in the quarter ending June 30, while COP revenues grew 11.17%. COP released earnings on July 28 and XOM released earnings three days later. Since the earnings release, stock prices have climbed about 4.6% and 2.3% respectively, with some volatility. But I wasn’t entirely right in my article… You see, oil prices did some tricky dance moves since early June. This chart shows the same trendlines from the ones I included in my chart back in early June. I’ve marked when my article hit the airwaves with a blue circle. In that article,… Read More

All major U.S. stock indices except the small-cap Russell 2000 posted a slight weekly gain. Despite last week’s poor showing, the Russell 2000 is actually leading the market higher this year, up 8.3% versus 6.9% for the benchmark S&P 500. #-ad_banner-# The week’s best-performing sectors were financials, which have benefitted from the recent rebound in long-term interest rates, and energy, thanks to oil’s rally from major underlying support near $41.  While I remain positive on the stock market between now and early next year, my research continues to warn that… Read More

All major U.S. stock indices except the small-cap Russell 2000 posted a slight weekly gain. Despite last week’s poor showing, the Russell 2000 is actually leading the market higher this year, up 8.3% versus 6.9% for the benchmark S&P 500. #-ad_banner-# The week’s best-performing sectors were financials, which have benefitted from the recent rebound in long-term interest rates, and energy, thanks to oil’s rally from major underlying support near $41.  While I remain positive on the stock market between now and early next year, my research continues to warn that near-term downside risk exceeds upside potential.  Another Major Obstacle For Market-Leading Technology In last week’s Market Outlook, I pointed out that the Nasdaq Composite had just posted its first weekly close above its 5,133 tech-bubble high. I said this boded well for a significant advance in the index over the next one to several quarters.  While the Composite managed another close above this important level on Friday, the chart below shows that its large-cap cousin, the Nasdaq 100, finished last week at 4,807, just below its corresponding high from March 2000 at 4,816. This… Read More