Do you look to sophisticated investor groups to help you make trade decisions? If so, Cymer (NASDAQ:CYMI) and Lululemon Athletica (NASDAQ:LULU) should be on your radar. These two stocks have signaled 3 very bullish indicators.
1. Barclay's has an overweight rating on both of these stocks. Barclays, a respected global financial service provider, has teams of analysts tasked with evaluating firms and assigning ratings. When these analysts signal a stock is a buy, or in this case a very bullish "overweight," they put their company's reputation on the line with it. This is not to say they are always right, but it is a compelling vote of confidence
2. Institutional Buying - Institutions, such as hedge funds, have more sophisticated market data than the average main street investor, and their purchase decisions presumably come after careful analytical work. We screened for significant levels of net buying from institutions in the current quarter.
3. Short Covering - We screened for stocks with bullish sentiment from short sellers, with significant decreases in shares shorted month-over-month. This indicates that short sellers are less bearish on these names than they were a month ago.
Tool provided by Kapitall.
Do you find these three bullish signals convincing? Do these stocks have more upside to price in?
1. Cymer Inc.: Engages in the development, manufacture, and marketing of excimer light sources for the manufacturers of photolithography tools in the semiconductor equipment industry. Market cap at $2.48B.
- On 01/03/2012, Barclays Capital had a Overweight rating on the stock.
- Net institutional purchases in the current quarter at 2.3M shares, which represents about 7.98% of the company's float of 28.84M shares.
- Shares shorted have decreased from 2.67M to 1.37M over the last month, a decrease which represents about 4.51% of the company's float of 28.84M shares. Days to cover ratio at 2.01 days.
2. Lululemon Athletica Inc.: Engages in the design, manufacture, and distribution of athletic apparel and accessories for women, men, and female youth primarily in Canada, the United States, and Australia. Market cap at $7.79B.
- On 12/02/2011, Barclays Capital had a Overweight rating on the stock.
- Net institutional purchases in the current quarter at 5.2M shares, which represents about 5.14% of the company's float of 101.18M shares.
- Shares shorted have decreased from 16.10M to 14.61M over the last month, a decrease which represents about 1.47% of the company's float of 101.18M shares. Days to cover ratio at 6.7 days.
Analyst ratings sourced from Reuters, short data from Yahoo Finance, institutional data from Fidelity, all other data from Finviz.
Disclosure: I have no positions in any stocks mentioned, and no plans to initiate any positions within the next 72 hours.
Business relationship disclosure: Business relationship disclosure: Kapitall is a team of analysts. This article was written by Rebecca Lipman, one of our writers. We did not receive compensation for this article (other than from Seeking Alpha), and we have no business relationship with any company whose stock is mentioned in this article.